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EXHIBIT 10.1  

 
 

ASSET PURCHASE AGREEMENT
  BETWEEN
  UNITED ARTISTS THEATRE GROUP
  AND
  UNITED ARTISTS THEATRE CIRCUIT, INC.  
  

JUNE 6, 2003  

  

 
 

ASSET PURCHASE AGREEMENT    
    

        THIS ASSET PURCHASE AGREEMENT (this "Agreement") is entered into as of June 6, 2003 (the
"Closing Date") between United Artists Theatre Circuit, Inc., a Maryland corporation ("Seller"),
and United Artists Theatre Group, a Delaware corporation ("Buyer"). 

        WHEREAS,
Seller operates the movie theatres identified on Schedule 1 attached hereto (the
"Theatres"); 

        WHEREAS,
in connection with its operation of the Theatres, Seller is the owner of the Theatre Assets (defined below); and 

        WHEREAS,
Seller desires to sell, and Buyer desires to purchase from Seller, all of the Theatre Assets at the price and upon the terms and conditions hereinafter set forth. 

        NOW,
THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements hereinafter set forth, the parties hereto hereby agree as follows: 

1.     DEFINITIONS  

        For all purposes of this Agreement, the capitalized terms specified in Exhibit A shall have the meanings
set forth in that Exhibit A, except as otherwise expressly provided herein. 

2.     SALE AND PURCHASE OF ASSETS  

2.1.  Sale and Purchase of Assets  

        On the basis of the representations, warranties and agreements contained herein, and subject to the terms and conditions hereof, Seller agrees to sell, transfer
and assign to Buyer, and Buyer agrees to purchase, accept and assume from Seller, the Theatre Assets at the purchase price specified in  Section 2.4 free and clear of all Encumbrances. 

2.2.  Assumption of Liabilities  

        At the Closing, Buyer shall assume the Assumed Liabilities to be performed on or after the Closing Date. 

2.3.  Excluded Liabilities  

        Except for the Assumed Liabilities, Buyer does not assume, and shall not be deemed by virtue of this Agreement or any other action or inaction to assume, and
Seller shall remain liable for any liability or obligation, direct or indirect, absolute or contingent, of Seller or any Subsidiary, division, associate or Affiliate of Seller, or of any Person,
arising out of or relating to (i) Taxes with respect to or attributable to the Theatre Assets for all taxable periods through and including the Closing Date (including all Taxes associated with
the transfer of the Theatre Assets to Buyer), (ii) Taxes with respect to or attributable to the properties, business or operations of Seller or any Subsidiary, division, associate or Affiliate
of Seller, (iii) Taxes of Seller with respect to or attributable to the transactions contemplated hereby, (iv) any liability arising out of or relating to any Litigation or any other
claim or cause of action relating to Seller's business, operations, assets or liabilities arising out of facts or circumstances existing prior to the Closing, or (v) any other liabilities or
obligations of Seller or any Subsidiary, division, associate or Affiliate of Seller, or of any Person (collectively, the "Excluded Liabilities"). 

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2.4.  Purchase Price  

        In consideration of the Theatre Assets, Buyer shall at the Closing pay Seller Two Hundred Ninety One Million Two Hundred Ninety Eight Thousand Six Hundred Fifty
Dollars ($291,298,650.00) in immediately available funds plus the Assumed Liabilities (the "Purchase Price"). 

2.5.  Assignment of Theatre Leases, Contracts and Permits  

        (a)   To
the extent that the assignment of all or any portion of any Contract or Permit shall require the consent of the other party thereto or any other third party and such
consent has not been obtained as of the Closing Date, this Agreement shall not constitute an agreement to assign any such Contract or Permit included in the Theatre Assets if an attempted assignment
without any such consent would constitute a breach or violation thereof. 

        (b)   If
one or more of such consents have not been obtained at or prior to the Closing Date, Seller shall use its best efforts to: 

        (1)   provide
Buyer the benefits of each such applicable Contract and Permit; 

        (2)   cooperate
in any reasonable and lawful arrangement designed to provide such benefits to Buyer, without incurring any financial obligations to Buyer; and 

        (3)   enforce
to the fullest extent permitted by any applicable law for the account of Buyer any and all rights of Seller against all other parties thereto (including the
termination of such applicable Contract or Permit, as the case may be, in accordance with the terms thereof on the advice of Buyer). 

2.6.  Prorations  

        (a)   Personal
property taxes for the Theatre Assets for 2003 shall be prorated, based on property taxes assessed for 2002, and allocated among (i) Seller for the
period prior to and including the Closing Date and (ii) Buyer for the period after the Closing Date. 

        (b)   If
final readings are not obtained for utility services in connection with the Theatre Leases for which the lessee is liable (such as gas, electric, water, or sewer),
the charges therefore shall be prorated and allocated among (i) Seller for the period prior to and including the Closing Date and (ii) Buyer for the period after the Closing Date. All
rent, Taxes, insurance and other costs payable by the lessee in connection with the Theatre Leases shall be prorated and allocated among (i) Seller for the period prior to and including the
Closing Date and (ii) Buyer for the period after the Closing Date. 

        (c)   Any
bill, invoice or similar statement which is received after the Closing Date but which pertains to any services rendered or goods provided to Seller which is used in
or for the operation of the Theatres shall be prorated and allocated among (i) Seller for the period prior to and including the Closing Date and (ii) Buyer for the period after the
Closing Date. 

        (d)   Any
bill, invoice or similar statement in connection with any Theatre Assets prepaid by Seller prior to the Closing Date pertaining, in whole or in part, to services
rendered or goods provided to Buyer after the Closing Date shall be prorated and allocated among (i) Seller for the period prior to and including the Closing Date and (ii) Buyer for the
period after the Closing Date. 

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3.     CLOSING  

3.1.  Closing of Sale and Purchase  

        Subject to the terms and conditions of this Agreement, the Closing shall take place at the offices of Hogan & Hartson L.L.P., 1200 Seventeenth Street,
Suite 1500, Denver, Colorado 80202, at 10:00 a.m., local time, on the Closing Date. 

3.2.  Closing Deliveries by Seller  

        At the Closing, Seller shall deliver to Buyer original copies of the following executed by Seller: 

        (a)   an
Assignment and Assumption of Lease with respect to each Theatre Lease; 

        (b)   the
Assignment and Assumption of Contracts and Permits; 

        (c)   the
Bill of Sale, Assignment and Assumption; and 

        (d)   such
other documents as Buyer may reasonably request in order to document properly the transactions provided under this Agreement. 

3.3.  Closing Deliveries by Buyer  

        At the Closing, Buyer shall deliver to Seller the following (in the case of each document, an original copy of such document executed by Buyer): 

        (a)   the
Purchase Price as provided for in Section 2.4; 

        (b)   an
Assignment and Assumption of Lease with respect to each Theatre Lease; 

        (c)   the
Assignment and Assumption of Contracts and Permits; and 

        (d)   the
Bill of Sale, Assignment and Assumption. 

4.     REPRESENTATIONS AND WARRANTIES OF SELLER  

        Seller hereby represents and warrants to Buyer as follows: 

4.1.  Organization  

        Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of Maryland and has the full and unrestricted corporate
power and authority to carry on its business as currently conducted, to enter into this Agreement and each of the other Documents and to carry out the transactions contemplated hereby and thereby. 

4.2.  Authority and Capacity  

        Seller has full legal right, capacity, power and authority to execute this Agreement and each of the other Documents and to consummate the transactions
contemplated hereby and thereby. 

4.3.  Absence of Violation  

        The execution, delivery and performance by Seller of this Agreement and the other Documents, the fulfillment of and the compliance with the respective terms and
provisions hereof and thereof, and the consummation of the transactions contemplated hereby and thereby, do not and will not (a) conflict with, or violate any provision of, any Law having
applicability to Seller, (b) conflict with, or result in any breach of, or constitute a default under, any material agreement to which Seller is a party or the certificate of incorporation or
bylaws of Seller, or (c) require any 

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consent,
approval or authorization of, or notice to, or declaration, filing or registration with, any governmental authority. 

4.4.  Binding Obligation  

        This Agreement constitutes a valid and binding obligation of Seller, enforceable in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium and similar laws relating to or affecting creditors rights generally and by general equity principles (regardless of whether
such enforceability is considered in a proceeding in equity or at law). 

4.5.  Theatre Assets  

        Seller has good, valid and marketable title and all right and interest in and to the Theatre Assets, free and clear of any Encumbrances, with full right and
lawful authority to sell and transfer the Theatre Assets to Buyer pursuant to this Agreement. On the Closing Date, Buyer shall acquire good, valid and marketable title to, and all right and interest
in, the Theatre Assets, free and clear of all Encumbrances. The Theatre Assets so acquired at the Closing constitute all of the real, personal and mixed assets, property and rights, both tangible and
intangible, which are owned, used or held for use for the operations of the Theatres as currently conducted. 

5.     REPRESENTATIONS AND WARRANTIES OF BUYER  

        Buyer hereby represents and warrants to Seller as follows: 

5.1.  Organization  

        Buyer is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has the full and unrestricted corporate
power and authority to carry on its business as currently conducted, to enter into this Agreement and the other Documents and to carry out the transactions contemplated hereby and thereby. 

5.2.  Authority and Capacity  

        Buyer has full legal right, capacity, power and authority to execute this Agreement and the other Documents and to consummate the transactions contemplated hereby
and thereby. 

5.3.  Absence of Violation  

        The execution, delivery and performance by Buyer of this Agreement and the other Documents, the fulfillment of and the compliance with the respective terms and
provisions hereof and thereof, and the consummation of the transactions contemplated hereby and thereby, do not and will not (a) conflict
with, or violate any provision of, any Law having applicability to Buyer, (b) conflict with, or result in any breach of, or constitute a default under, any material agreement to which Buyer is
a party or the certificate of incorporation or bylaws of Buyer, or (c) require any consent, approval or authorization of, or notice to, or declaration, filing or registration with, any
governmental authority. 

5.4.  Binding Obligation  

        This Agreement constitutes a valid and binding obligation of Buyer, enforceable in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium and similar laws relating to or affecting 

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creditors
rights generally and by general equity principles (regardless of whether such enforceability is considered in a proceeding in equity or at law). 

6.     CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER  

        The obligations of Seller under this Agreement are subject to the fulfillment, at or prior to the Closing, of each of the following conditions by Buyer, and
failure to satisfy any such condition shall excuse and discharge all obligations of Seller to carry out the provisions of this Agreement, unless such failure is agreed to in writing by Seller: 

6.1.  Representations and Warranties  

        The representations and warranties made by Buyer in this Agreement or any other Document shall be true and complete when made and on and as of the Closing Date as
though such representations and warranties were made on and as of such date, except for any changes expressly permitted by this Agreement or any other Document. 

6.2.  Performance  

        Buyer shall have performed and complied with all agreements and conditions required by this Agreement and the other Documents to be performed or complied with by
such Buyer prior to the Closing Date. 

6.3.  Legal Proceedings  

        No action or proceeding by or before any Governmental Authority shall have been instituted or threatened (and not subsequently dismissed, settled or otherwise
terminated) that is reasonably expected to restrain, prohibit or invalidate the transactions contemplated by this Agreement or the other Documents, other than an action or proceeding instituted or
threatened by Seller. 

7.     CONDITIONS PRECEDENT TO OBLIGATIONS OF BUYER  

        The obligations of Buyer under this Agreement are subject to the fulfillment, at or prior to the Closing, of each of the following conditions by Seller, and
failure to satisfy any such condition shall excuse and discharge all obligations of Buyer to carry out the provisions of this Agreement, unless such failure is agreed to in writing by Buyer: 

7.1.  Representations and Warranties  

        The representations and warranties made by Seller in this Agreement or any other Document shall be true and complete when made, and on and as of the Closing Date
as though such representations and warranties were made on and as of such date, except for any changes expressly permitted by this Agreement or any other Document. 

7.2.  Performance  

        Seller shall have performed and complied with all agreements and conditions required by this Agreement and the other Documents to be performed or complied with
prior to the Closing Date. 

7.3.  Legal Proceedings  

        No action or proceeding by or before any Governmental Authority shall have been instituted or threatened (and not subsequently settled, dismissed or otherwise
terminated) that is reasonably expected to restrain, prohibit or invalidate the transactions contemplated by this Agreement or the other Documents other than an action or proceeding instituted or
threatened by Buyer. 

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7.4.  Consents  

        Seller shall have obtained prior to the Closing Date all consents, authorizations and approvals necessary to effect valid transfers and assignments to Buyer of
all of the Theatre Assets and all other consents, authorizations and approvals necessary to consummate the transactions contemplated by this Agreement and the other Documents, each of which consents,
authorizations and approvals shall be in form and substance satisfactory to Buyer. 

8.     MISCELLANEOUS  

8.1.  Further Assurances  

        Each of the parties hereto hereby agrees to take or cause to be taken such further actions, to execute, deliver and file or cause to be executed, delivered and
filed such further documents, and will obtain such consents, as may be necessary or as may be reasonably requested in order to fully effectuate the purposes, terms and conditions of this Agreement. 

8.2.  No Brokers  

        Each of Buyer and Seller hereto represents and warrants to the other that such party has not engaged any broker, finder or agent in connection with the
transactions contemplated by this Agreement and has not incurred (and will not incur) any unpaid liability to any broker, finder or agent for any brokerage fees, finders' fees or commissions, with
respect to the transactions contemplated by this
Agreement. Each party agrees to indemnify, defend and hold harmless each of the other parties from and against any and all Claims asserted against such parties for any such fees or commissions by any
persons purporting to act or to have acted for or on behalf of the indemnifying party. 

8.3.  Expenses  

        Each party hereto shall pay its own expenses incident to this Agreement and the transactions contemplated hereunder, including all legal and accounting fees and
disbursements. 

8.4.  Entire Agreement; Amendment  

        This Agreement, including the Exhibits and other documents referred to herein or furnished pursuant hereto, constitutes the entire Agreement among the parties
hereto with respect to the transactions contemplated herein, and it supersedes all prior oral or written agreements, commitments or understandings with respect to the matters provided for herein. No
amendment, modification or discharge of this Agreement shall be valid or binding unless set forth in writing and duly executed and delivered by Buyer and Seller. 

8.5.  Waiver  

        No delay or failure on the part of any party hereto in exercising any right, power or privilege under this Agreement shall impair any such right, power or
privilege or be construed as a waiver of any default or any acquiescence therein. No single or partial exercise of any such right, power or privilege shall preclude the further exercise of such right,
power or privilege, or the exercise of any other right, power or privilege. No waiver shall be valid against any party hereto unless made in writing and signed by the party against whom enforcement of
such waiver is sought and then only to the extent expressly specified therein. 

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8.6.  Severability  

        If any part of any provision of this Agreement or any other agreement or document given pursuant to or in connection with this Agreement shall be invalid or
unenforceable in any respect, such part shall be ineffective to the extent of such invalidity or unenforceability only, without in any way affecting the remaining parts of such provision or the
remaining provisions of this Agreement. 

8.7.  Governing Law  

        This Agreement, the rights and obligations of the parties hereto, and any Claims or disputes relating thereto, shall be governed by and construed in accordance
with the laws of the State of Delaware (excluding the choice of law rules thereof). 

8.8.  Headings  

        Section headings contained in this Agreement are inserted for convenience of reference only, shall not be deemed to be a part of this Agreement for any purpose,
and shall not in any way define or affect the meaning, construction or scope of any of the provisions hereof. 

8.9.  Execution in Counterparts  

        To facilitate execution, this Agreement may be executed by facsimile and in as many counterparts as may be required. It shall not be necessary that the signatures
of, or on behalf of, each party, or that the signatures of all persons required to bind any party, appear on each counterpart; but it shall be sufficient that the signature of, or on behalf of, each
party, or that the signatures of the persons required to bind any party, appear on one or more of the counterparts. All counterparts shall collectively constitute a single Agreement. It shall not be
necessary in making proof of this Agreement to produce or account for more than a number of counterparts containing the respective signatures of, or on behalf of, all of the parties hereto. 

8.10. Limitation on Benefits  

        The covenants, undertakings and agreements set forth in this Agreement shall be solely for the benefit of, and shall be enforceable only by, the parties hereto
and their respective successors, heirs, executors, administrators, legal representatives and permitted assigns. 

8.11. Binding Effect  

        Subject to any provisions hereof restricting assignment, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their
respective successors, heirs, executors, administrators, legal representatives and assigns. 

[Signature
Page to Follow] 

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        IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement, or have caused this Agreement to be duly executed on their behalf, as of the day and year first above written. 

	 	 	BUYER:
	

 	
 	

UNITED ARTISTS THEATRE GROUP
	

 	
 	

By:	

/s/  PETER B. BRANDOW      
 Peter B. Brandow

Vice President and Secretary
	

 	
 	
SELLER:
	

 	
 	

UNITED ARTISTS THEATRE CIRCUIT, INC.
	

 	
 	

By:	

/s/  PETER B. BRANDOW      
 Peter B. Brandow

Vice President and Secretary

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SCHEDULE 1
  THEATRES    
    

	Theatre Number
	 	Theatre Name

	331320	 	UNION SQUARE
	331159	 	SHEEPSHEAD BAY
	331273	 	UA WESTBURY THEATRE
	191323	 	CITIPLACE 11
	391259	 	RIVERVIEW PLAZA
	151299	 	GALAXY 14
	061287	 	DENVER WEST VILLAGE 12
	061315	 	DENVER PAVILIONS 15
	391269	 	OXFORD VALLEY THEATRE
	391329	 	KING OF PRUSSIA STADIUM 15
	051286	 	LAGUNA VILLAGE 12
	471275	 	FAIRFAX TOWNE CENTER
	321307	 	COTTONWOOD THEATRE
	391290	 	UA GRANT PLAZA
	331318	 	CORTLANDT TOWN CENTER
	061308	 	COLORADO CENTER 9
	441322	 	UA EASTCHASE MARKET 9
	441312	 	NORTH CREEK 10
	061324	 	TWIN PEAKS MALL 10
	051270	 	UA LA CANADA 8
	111283	 	NORTH POINT MARKET 8
	051231	 	EMERY BAY 10
	111309	 	PERIMETER POINTE
	061130	 	CONTINENTAL
	101195	 	SANTA ROSA 10
	101301	 	SEMINOLE TOWNE CENTER
	051158	 	UA MARINA DEL REY
	051169	 	ARDEN FAIR 6
	051174	 	UA LONG BEACH
	321245	 	DEVARGAS MALL CINEMA
	321297	 	FOUR HILLS THEATRE
	321244	 	WINROCK VI
	321246	 	UA SOUTH
	051234	 	UA EAST HILLS
	321265	 	UA NORTH
	061268	 	THORNTON TOWN CENTER 10
	321262	 	HIGH RIDGE THEATRE
	061248	 	COLORADO WEST 4
	061550	 	COLORADO MILLS
	051161	 	NORTH HOLLYWOOD 6
	091551	 	GALLERY PLACE
	111346	 	ATLANTIC STATION
	331139	 	MOVIES @ PATCHOGUE
	051171	 	STATE THEATRE 4
	101180	 	LAUDERHILL 13
	331137	 	CROSSBAY THEATRE I
	331179	 	CORAM THEATRE
	331155	 	MARBORO THEATRE

 
 

SCHEDULE 2
  LEASES    
    

	1.
	Agreement
of Lease dated December 13, 1996 between OTR, as landlord, and United Artists Theatre Circuit, Inc., a Maryland corporation, as tenant, as amended
(Theatre No. 331320)

	2.
	Agreement
of Lease dated May 23, 1985 between Shore Parkway Associates, a New York partnership, as landlord, and United Artists Theatre Circuit, Inc., a
Maryland corporation, as tenant, as amended (Theatre No. 331159)

	3.
	Agreement
of Lease dated May    , 1999 between Lerner Sibling Partnership and Briar Ridge Realty, L.L.C., as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 331273)

	4.
	Agreement
of Lease dated July 1, 1996 between 5615 Associates Limited Partnership, a Louisiana limited partnership, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 191323)

	5.
	Agreement
of Lease dated August 4, 1989 between Reed Development Associates, Inc., as landlord, and United Artists Theatre Circuit, Inc., a Maryland
corporation, as tenant, as amended (Theatre No. 391259)

	6.
	Agreement
of Lease dated March 20, 1995 between Glendale Partners at Fairfield Crossing, LLC, an Indiana limited liability company, as landlord, and United Artists
Theatre Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 151299)

	7.
	Lease
dated July 15, 1996 between Denver West Village, Inc., as landlord, and United Artists Theatre Circuit, Inc., a Maryland corporation, as
tenant, as amended (Theatre No. 061287)

	8.
	Lease
dated November 21, 1995 between Entertainment Development Group, Inc., as landlord, and United Artists Theatre Circuit, Inc., a Maryland
corporation, as tenant, as amended (Theatre No. 061315)

	9.
	Ground
Lease dated March 31, 1992 between Lincoln Plaza Associates, a Pennsylvania limited partnership, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 391269)

	10.
	Ground
Lease dated May 15, 1998 between ORIX RAM Montgomery Venture, an Illinois general partnership, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 391329)

	11.
	Lease
dated February 15, 1994 between Pan Pacific Development (Laguna), Inc., a California corporation, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 051286)

	12.
	Lease
dated November 19, 1993 between Homart Development Co., a Delaware corporation, as landlord, and United Artists Theatre Circuit, Inc., a Maryland
corporation, as tenant, as amended (Theatre No. 471275)

	13.
	Lease
dated May 17, 1996 between Simon Property Group, L.P., a Delaware limited partnership, d/b/a Simon Real Estate Group Limited Partnership, as landlord, and
United Artists Theatre Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 321307)

	14.
	Ground
Lease dated December 10, 1993 between Grant Plaza Associates, as landlord, and United Artists Theatre Circuit, Inc., a Maryland corporation, as
tenant, as amended (Theatre No. 391290)

	15.
	Lease
dated July 15, 1996 between Cortlandt Town Center Limited Partnership, a New York limited partnership, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 331318) 

 
	16.
	Lease
dated November 1, 1996 between WRC Properties, Inc., a Delaware corporation, as landlord, and United Artists Theatre Circuit, Inc., a Maryland
corporation, as tenant, as amended (Theatre No. 061308)

	17.
	Lease
dated November 7, 1995 between OPUS South Corporation, a Florida corporation, as landlord, and United Artists Theatre Circuit, Inc., a Maryland
corporation, as tenant, as amended (Theatre No. 441322)

	18.
	Lease
dated July 3, 1995 between North Creek Group, Ltd., a Texas limited partnership, as landlord, and United Artists Theatre Circuit, Inc., a
Maryland corporation, as tenant, as amended (Theatre No. 441312)

	19.
	Lease
dated May 15, 1996 between Twin Peaks Mall Associates, Ltd., a Colorado limited partnership, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 061324)

	20.
	Lease
dated January 28, 1994 between Gary Zentmyer Development, a California corporation, as landlord, and United Artists Theatre Circuit, Inc., a Maryland
corporation, as tenant, as amended (Theatre No. 051270)

	21.
	Lease
dated February 11, 1994 between North Point Market Associates, L.P., a Georgia limited partnership, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 111283)

	22.
	United
Artists Theatre Lease for the Emeryville Market Place dated December 14, 1987 between Emeryville Market Partners, a California limited partnership, as
landlord, and United Artists Theatre Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 051231)

	23.
	Lease
dated December 30, 1994 between Homart Development Co., a Delaware corporation, as landlord, and United Artists Theatre Circuit, Inc., a Maryland
corporation, as tenant, as amended (Theatre No. 111309)

	24.
	Lease
dated April 19, 1995 between The Contalp LLC, a Colorado limited liability company, as landlord, and United Artists Theatre Circuit, Inc., a Maryland
corporation, as tenant, as amended (Theatre No. 061130)

	25.
	Lease
dated December 21, 1993 between State of California Public Employees' Retirement System, as landlord, and United Artists Theatre Circuit, Inc., a
Maryland corporation, as tenant, as amended (Theatre No. 101195)

	26.
	Seminole
Towne Center Lease dated March 1, 1995 between Seminole Towne Center Limited Partnership, an Indiana limited partnership, as landlord, and United Artists
Theatre Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 101301)

	27.
	Lease
dated November 1, 1972 between Villa Marina MHRP V, LLC, as landlord, and United Artists Theatre Circuit, Inc., a Maryland corporation, as tenant, as
amended (Theatre No. 051158)

	28.
	Lease
dated October 7, 1980 between Arden Fair Associates, as landlord, and United Artists Theatre Circuit, Inc., a Maryland corporation, as tenant, as
amended (Theatre No. 051169)

	29.
	Marketplace
Shopping Center Standard Lease dated July 28, 1975 between Bixby Ranch Company, a California corporation, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 051174)

	30.
	Lease
dated September 23, 1977 between DeVargas Center Joint Venture, as landlord, and United Artists Theatre Circuit, Inc., a Maryland corporation, as
tenant, as amended (Theatre No. 321245) 

2

 
	31.
	Lease
dated February 28, 1995 between SKW Real Estate Limited Partnership, a Delaware limited partnership, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 321297)

	32.
	Winrock
License Agreement dated November 21, 2001 The Prudential Insurance Company of America, as licensor, and United Artists Theatre Circuit, Inc., a
Maryland corporation, as licensee, as amended (Theatre No. 321244)

	33.
	Lease
dated December 31, 1984 between Villa Linda Mall, Ltd., a New Mexico limited partnership, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 321246)

	34.
	Shopping
Center Lease dated February 10, 1989 between Bakersfield Retail Center, L.L.C., a Delaware limited liability company, as landlord, and United Artists
Theatre Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 051234)

	35.
	Lease
dated February 28, 1991 between Villa Linda Mall, Ltd., a New Mexico limited partnership, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 321365)

	36.
	Shopping
Center Lease dated October 10, 1991 between Hyper Real Estate (Colorado), Inc., a Colorado corporation, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 061268)

	37.
	Lease
dated May 23, 1990 between High Ridge-Rand Theatres Joint Venture, a New Mexico joint venture, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 321262)

	38.
	Agreement
of Lease dated March 18, 1986 between The Equitable Life Assurance Society of the United States, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 061248)

	39.
	Lease
dated January 18, 2002 between Colorado Mills Limited Partnership, a Delaware limited partnership, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 061550)

	40.
	Lease
dated January 7, 1977 between Teachers Insurance and Annuity Association, a New York corporation, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 051161)

	41.
	Lease
dated December 31, 2001 between Gallery Place Holdings, L.L.C., a Delaware limited liability company, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 091551)

	42.
	Lease
dated April 25, 2002 between Atlantic Town enter, L.L.C., a Delaware limited liability company, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended (Theatre No. 111346)

	43.
	Master
Lease dated October 1, 1998 between United Artists Properties I Corp., a Colorado corporation, as landlord, and United Artists Theatre
Circuit, Inc., a Maryland corporation, as tenant, as amended, with respect to Theatre Nos. 331139, 051171, 101180, 331137, 331179 and 331155 

3

 
 

EXHIBIT A
  CERTAIN DEFINITIONS    
    

        "Affiliate" of a Person shall mean any Person, which, directly or indirectly, controls, is controlled by or is
under common control with such Person. 

        "Assignment and Assumption of Contracts and Permits" means that certain Assignment and Assumption of Contracts and Permits, dated as of
the Closing Date and executed by the parties hereto, substantially in the form attached hereto as Exhibit B. 

        "Assignment and Assumption of Lease" means that certain Assignment and Assumption of Lease, dated as of the Closing Date and executed by
the parties hereto, substantially in the form attached hereto as Exhibit C. 

        "Assumed Liabilities" means, other than the Excluded Liabilities, all debts, liabilities, commitments, obligations, duties and
responsibilities of any kind and description of Seller (i) in connection with the Theatre Leases and Contracts on or after the Closing Date, (ii) incurred in connection with the Theatre
Assets on or after the Closing Date, and (iii) straight line rent liabilities associated with the Theatre Leases and current liabilities associated with the Theatre Assets. 

        "Bill of Sale, Assignment and Assumption" means that certain Bill of Sale, Assignment and Assumption, dated as of the Closing Date and
executed by Seller, substantially in the form attached hereto as Exhibit D. 

        "Claims" means all demands, claims, actions or causes of action, assessments, losses, damages (including, without limitation, diminution
in value), liabilities, costs and expenses, including, without limitation, interest, penalties and attorneys' fees and disbursements. 

        "Closing" means the closing of the sale and purchase of the Theatre Assets pursuant to the Agreement. 

        "Closing Date" shall have the meaning set forth in the preamble to this Agreement. 

        "Contracts" means all contracts, agreements, commitments, understandings and licenses used or useful in connection with the operations of
the Theatres to which Seller is a party, other than the Theatre Leases but including the Equipment Leases. 

        "Documents" means this Agreement, an Assignment and Assumption of Lease with respect to each Theatre Lease, the Assignment and Assumption
of Contracts and Permits and the Bill of Sale, Assignment and Assumption. 

        "Equipment" means any and all equipment, machinery, cash registers, projectors, tools, furniture, furnishings, fittings and motor vehicles
and spare parts and accessories for such items owned by Seller and used or useful in operating the Theatres. 

        "Equipment Leases" means any and all leases of Equipment. 

        "Encumbrance" means any mortgage, lien, pledge, encumbrance, security interest, deed of trust, option, encroachment, reservation, order,
decree, judgment, condition, restriction, charge, agreement, Claim or equity of any kind. 

        "Exhibit" means an exhibit attached to the Agreement. 

        "Governmental Authority" shall mean any agency, public or regulatory authority, instrumentality, department, commission, court, ministry,
tribunal or board of any government, whether foreign or domestic and whether national, federal, provincial, state, regional, local or municipal. 

        "Inventory" means the inventory of the Theatres as of the Closing Date, including, but not limited to, all concession items owned by
Seller and used or useful in operating the Theatres (including goods in transit and inventory ordered and paid for by Seller prior to the Closing Date). 

 

        "Knowledge" with respect to any particular representation or warranty contained in this Agreement, when used to apply to the "Knowledge"
of Seller, shall be deemed to be followed by the phrase "after due inquiry" (which due inquiry shall have been made in the ordinary course of Seller's business and, to the extent possible taking into
account the need for confidentiality) and shall mean the actual knowledge or conscious awareness after due inquiry of (a) the chief financial officer of Seller or such Person acting in a
similar capacity, (b) the chief executive officer of Seller or such Person acting in a similar capacity, and (c) the legal staff of Seller. 

        "Laws" means all foreign, federal, state and local statutes, laws, ordinances, regulations, rules, resolutions, orders, determinations,
writs, injunctions, awards (including, without limitation, awards of any arbitrator), judgments and decrees applicable to the specified persons or entities and to the businesses and assets thereof. 

        "Litigation" shall mean any litigation, legal action, arbitration, proceeding, demand, claim or investigation pending, or, to the
Knowledge of Seller, threatened, planned or reasonably probable, against, affecting or brought by or against Seller or any present or former employees or agents affiliated at any time with Seller
relating to the business, operations, assets or liabilities of Seller. 

        "Permits" means all franchises, approvals, permits, authorizations, applications, licenses, orders, registrations, certificates, variances
and other similar permits or rights obtained by Seller from any governmental authority in connection with the operation of the Theatres and all pending applications therefor. 

        "Person" shall mean any natural person, corporation, business trust, joint venture, association, company, firm, partnership or other
entity or government or Governmental Authority. 

        "Section" means a Section (or a subsection) of the Agreement. 

        "Subsidiary(ies)" shall mean any corporation or other entity of which securities or other ownership interests having ordinary voting power
to elect a majority of the board of directors or other persons performing similar functions are, at the time the representation is made, directly or indirectly owned by the Person in question. 

        "Taxes" shall mean all taxes, charges, fees, duties, levies, penalties or other assessments, including, without limitation, income, gross
receipts, excise, real and personal property, sales, use, transfer, license, payroll, withholding, social security, franchise, unemployment insurance, workers' compensation, employer health tax or
other taxes, imposed by any Governmental Authority and shall include any interest, penalties or additions to tax attributable to any of the foregoing. 

        "Theatres" means the theatres identified on Schedule 1 attached hereto. 

        "Theatre Assets" means all of Seller's right, title and interest in, under and to all of the assets, properties and rights of Seller used
or useful in operating the Theatres on the Closing Date of every kind, nature and description, whether such assets, properties and rights are real, personal or mixed, tangible or intangible, including
without limitation, all of the assets, properties and rights enumerated below: 

	(a)
	the
Theatre Leases;

	(b)
	the
Contracts;

	(c)
	the
Equipment;

	(d)
	the
Permits; and

	(e)
	the
Inventory. 

        "Theatre Leases" means the real property leases set forth on Schedule 2 hereto and
any sublease, license, or other written agreement (including any amendment, modification or supplement to any such lease, sublease, license or other written agreement) made or entered into prior to
the Closing under the terms of which Seller or any of its Subsidiaries has any right to occupy or use any Theatre or any part thereof or interest therein. 

2

 
 

EXHIBIT B
  ASSIGNMENT AND ASSUMPTION OF CONTRACTS AND PERMITS    
    

        THIS ASSIGNMENT AND ASSUMPTION OF CONTRACTS AND PERMITS dated as of June    , 2003 is made and entered into by and between United Artists Theatre
Circuit, Inc., a Maryland corporation ("Assignor"), and United Artists Theatre Group, a Delaware corporation
("Assignee"), pursuant to the Asset Purchase Agreement dated as of June    , 2003 between Assignor and Assignee (the
"Purchase Agreement"). All capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Purchase Agreement. 

        WHEREAS,
pursuant to and under the Purchase Agreement, Assignor desires to assign to Assignee all of Assignor's right, title and interest in, to and under the Contracts and the Permits;
and 

        WHEREAS,
Assignee desires to acquire all of Assignor's right, title and interest in, to and under the Contracts and the Permits. 

        NOW,
THEREFORE, in consideration of the payment by Assignee of the Purchase Price pursuant to the Purchase Agreement, the receipt and sufficiency of which is hereby acknowledged, and in
further consideration of the mutual covenants and agreements contained in the Purchase Agreement, Assignor and Assignee hereby agree as follows: 

        1.    Assignment.    As of the date hereof, Assignor does hereby bargain, sell, assign,
transfer, convey and deliver to Assignee all of Assignor's right, title and interest in, to and under the Contracts and the Permits. 

        2.    Assumption.    As of the date hereof, Assignee hereby assumes and undertakes to pay,
satisfy and discharge all of Assignor's obligations and liabilities under, and comply with all terms of, the Contracts and the Permits from and after the date hereof. 

        3.    Miscellaneous.    This Assignment and Assumption of Contracts and Permits constitutes
the entire agreement between the parties hereto pertaining to the subject matter herein. No supplements, modifications or amendments of this Assignment and Assumption of Contracts and Permits shall be
binding unless in writing, executed by the parties hereto. This Assignment and Assumption of Contracts and Permits shall be construed and enforced in accordance with, and governed by, the laws of the
State of Delaware (excluding the choice of law rules thereof). The headings of this Assignment and
Assumption of Contracts and Permits are for purposes of reference only and shall not limit or define the meaning of the provisions hereof. This Assignment and Assumption of Contracts and Permits may
be executed in any number of counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. Facsimile signatures shall be binding as though original.
If any term of this Assignment and Assumption of Contracts and Permits is determined to be invalid or unenforceable, it will not affect the validity of the remaining terms. Wherever used herein, the
singular shall include the plural and the use of any gender shall be applicable to all genders. This Assignment and Assumption of Contracts and Permits shall be binding upon and be for the benefit of
the parties hereto and their respective successors and assigns. 

[SIGNATURE
PAGE FOLLOWS] 

 

        IN
WITNESS WHEREOF, Assignor and Assignee have executed this Assignment and Assumption of Contracts and Permits as of the date first above written. 

	 ASSIGNOR:	 	ASSIGNEE:
	

UNITED ARTISTS THEATRE CIRCUIT, INC.,

a Maryland corporation	
 	

UNITED ARTISTS THEATRE GROUP,

a Delaware corporation
	
By:	

	
 	

By:	

	Name:	Peter B. Brandow	 	Name:	Peter B. Brandow
	Title:	Vice President and Secretary	 	Title:	Vice President and Secretary

2

 
 

EXHIBIT C
  ASSIGNMENT AND ASSUMPTION OF LEASE    
    

        THIS ASSIGNMENT AND ASSUMPTION OF LEASE (this "Agreement") is made and entered into this    day of June 2003, (the "Effective Date") by and
between United Artists Theatre Circtuit, Inc., a Maryland corporation, ("Assignor"), and United Artists Theatre Group, a Delaware corporation ("Assignee"). 

 
 

RECITALS    
    

        A.    Assignor is the current tenant under that certain Lease Agreement
dated                        , as amended from time to time
(collectively, the "Lease"), for the premises more particularly described in the Lease (the "Premises"); 

        B.    Assignor desires to assign the Lease to Assignee and Assignee desires to undertake the obligations of tenant under the
Lease; 

        C.    Immediately following the assignment of the Lease to Assignee, Regal Cinemas, Inc, a Tennessee corporation, an indirect
wholly owned subsidiary of Regal Entertainment Group, a Delaware corporation, will purchase all of the outstanding capital stock of Assignee; and 

        D.    The parties desire to enter into this Agreement in furtherance of the foregoing. 

        NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Assignor and Assignee
each hereby agree as follows: 

        1.    Assignment.    As of the date hereof, Assignor hereby assigns and transfers to Assignee
all of Assignor's right, title, and interest as tenant under the Lease. 

        2.    Assumption.    As of the date hereof, Assignee hereby assumes and agrees to duly and
punctually perform, and be bound by, all of the covenants, agreements, liabilities and obligations of Tenant under the Lease, arising out of, or with respect to, the period from and after the
Effective Date. Additionally, Assignee hereby assumes and agrees directly with the landlord under the Lease to be bound by all the obligations of the Tenant under the Lease, including, without
limitation, the obligation to pay the rent and other amounts provided for under the Lease. This Agreement shall not relieve Assignor of any of its obligations under the Lease, and Assignor shall
remain fully liable therefor. 

        3.    Miscellaneous.    This Agreement constitutes the entire agreement between the parties
hereto pertaining to the subject matter herein. No supplements, modifications or amendments of this Agreement shall be binding unless in writing, executed by the parties hereto. This Agreement shall
be construed and enforced in accordance with, and governed by, the laws of the State in which the Premises are located. The headings of this Agreement are for purposes of reference only and shall not
limit or define the meaning of the provisions hereof. This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which shall constitute one and the
same instrument. Facsimile signatures shall be binding as though original. If any term of this Agreement is determined to be invalid or unenforceable, it will not affect the validity of the remaining
terms. Wherever used herein, the singular shall include the plural and the use of any gender shall be applicable to all genders. This Agreement shall be binding upon and be for the benefit of the
parties hereto and their respective successors and assigns. 

 

        IN
WITNESS WHEREOF, Assignor and Assignee have executed this Agreement as of the date first above written. 

	 ASSIGNOR:	 	ASSIGNEE:
	

UNITED ARTISTS THEATRE CIRCUIT, INC.,

a Maryland corporation	
 	

UNITED ARTISTS THEATRE GROUP,

a Delaware corporation
	
By:	

	
 	

By:	

	Name:	Peter B. Brandow	 	Name:	Peter B. Brandow
	Title:	Vice President and Secretary	 	Title:	Vice President and Secretary

2

 
 

EXHIBIT D
  BILL OF SALE, ASSIGNMENT AND ASSUMPTION    
    

        THIS BILL OF SALE, ASSIGNMENT AND ASSUMPTION (the "Bill of Sale") dated as of June     , 2003 is made and entered into by and between United
Artists Theatre Circuit, Inc., a Maryland corporation ("Seller"), and United Artists Theatre Group, a Delaware corporation
("Buyer"), pursuant to the Asset Purchase Agreement dated as of June     , 2003 between Seller and Buyer (the
"Purchase Agreement"). All capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Purchase Agreement. 

        WHEREAS,
pursuant to the Purchase Agreement, Seller desires to transfer to Buyer pursuant to the Purchase Agreement all of Seller's right, title and interest in and to the Theatre
Assets, other than the Theatre Leases, the Contracts and the Permits; and 

        WHEREAS,
Buyer desires to acquire all of Seller's right, title and interest in and to such Theatre Assets and to assume the Assumed Liabilities. 

        NOW
THEREFORE, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as
follows: 

        1.    Sale and Assignment.    Seller hereby assigns, transfers, conveys and delivers to Buyer,
its successors and assigns, Seller's entire right, title and interest in and to the Theatre Assets (other than the Theatre Leases, the Contracts and the Permits), all of which are to be held and
enjoyed by Buyer for its own use and for the use of its successors, assigns and other legal representatives. 

        2.    Purchase and Assumption.    As partial consideration for the sale, assignment, transfer,
conveyance and delivery by Seller to Buyer of Seller's right, title and interest in and to the Theatre Assets (other than the Theatre Leases, the Contracts and the Permits), Buyer hereby assumes and
agrees to pay, perform and discharge as and when due each of the Assumed Liabilities to be performed after the Closing Date. 

        3.    Attorney-in-Fact.    Seller hereby appoints and constitutes
Buyer as attorney-in-fact for Seller with respect to the transfer of title of any of the Theatre Assets. Buyer's authority hereunder shall include, without limitation, the
authority to execute and receive any certificate of ownership or other document to transfer title to any Theatre
Assets, and to take any other actions necessary or incident to the powers granted to Buyer in this Bill of Sale, Assignment and Assumption. 

        4.    Miscellaneous.    This Bill of Sale constitutes the entire agreement between the parties
hereto pertaining to the subject matter herein. No supplements, modifications or amendments of this Bill of Sale shall be binding unless in writing, executed by the parties hereto. This Bill of Sale
shall be construed and enforced in accordance with, and governed by, the laws of the State of Delaware (excluding the choice of law rules thereof). The headings of this Bill of Sale are for purposes
of reference only and shall not limit or define the meaning of the provisions hereof. This Bill of Sale may be executed in any number of counterparts, each of which shall be an original and all of
which shall constitute one and the same instrument. Facsimile signatures shall be binding as though original. If any term of this Bill of Sale is determined to be invalid or unenforceable, it will not
affect the validity of the remaining terms. Wherever used herein, the singular shall include the plural and the use of any gender shall be applicable to all genders. This Bill of Sale shall be binding
upon and be for the benefit of the parties hereto and their respective successors and assigns. 

 

        IN
WITNESS WHEREOF, Seller and Buyer have executed this Bill of Sale as of the date first above written. 

	 SELLER:	 	BUYER:
	

UNITED ARTISTS THEATRE CIRCUIT, INC.,

a Maryland corporation	
 	

UNITED ARTISTS THEATRE GROUP,

a Delaware corporation
	
By:	

	
 	

By:	

	Name:	Peter B. Brandow	 	Name:	Peter B. Brandow
	Title:	Vice President and Secretary	 	Title:	Vice President and Secretary

2

QuickLinks

ASSET PURCHASE AGREEMENT BETWEEN UNITED ARTISTS THEATRE GROUP AND UNITED ARTISTS THEATRE CIRCUIT, INC.

ASSET PURCHASE AGREEMENT

SCHEDULE 1 THEATRES

SCHEDULE 2 LEASES

EXHIBIT A CERTAIN DEFINITIONS

EXHIBIT B ASSIGNMENT AND ASSUMPTION OF CONTRACTS AND PERMITS

EXHIBIT C ASSIGNMENT AND ASSUMPTION OF LEASE

RECITALS

EXHIBIT D BILL OF SALE, ASSIGNMENT AND ASSUMPTIONQuickLinks
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Exhibit 4.2  

STOCKHOLDER EQUITY WARRANT AGREEMENT  

dated as of [Date], 2003 

for 

WARRANTS TO PURCHASE  

 UP TO [    ] SHARES OF COMMON STOCK  

between 

INTERACTIVECORP  

and 

MELLON INVESTOR SERVICES LLC, as  

Equity Warrant Agent 

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	 
	 	Page

	

Article 1.	
 	

Definitions	
 	

2
	

Article 2.	
 	

Issuance of Equity Warrants and Execution and Delivery of Equity Warrant Certificates	
 	

3
	 	 	Section 2.1	 	Issuance of Equity Warrants	 	3
	 	 	Section 2.2	 	Form and Execution of Equity Warrant Certificates	 	3
	 	 	Section 2.3	 	Issuance and Delivery of Equity Warrant Certificates	 	4
	 	 	Section 2.4	 	Temporary Equity Warrant Certificates	 	4
	 	 	Section 2.5	 	Payment of Taxes	 	5
	 	 	Section 2.6.	 	Book-Entry Provisions for Equity Warrants	 	5
	

Article 3.	
 	

Duration and Exercise of Equity Warrants	
 	

6
	 	 	Section 3.1	 	Exercise Price	 	6
	 	 	Section 3.2	 	Duration of Equity Warrants	 	6
	 	 	Section 3.3	 	Exercise of Equity Warrants	 	6
	

Article 4.	
 	

Adjustments of Number of Shares	
 	

7
	 	 	Section 4.1	 	Adjustments	 	7
	 	 	Section 4.2	 	Statement on Warrants	 	10
	 	 	Section 4.3	 	Cash Payments in Lieu of Fractional Shares	 	10
	 	 	Section 4.4	 	Notices to Warrantholders	 	10
	

Article 5.	
 	

Other Provisions Relating to Rights of Holders of Equity Warrants	
 	

11
	 	 	Section 5.1	 	No Rights as Holder of Common Stock Conferred by Equity Warrants or Equity Warrant Certificates	 	11
	 	 	Section 5.2	 	Lost, Stolen, Destroyed or Mutilated Equity Warrant Certificates	 	11
	 	 	Section 5.3	 	Holders of Equity Warrants May Enforce Rights	 	11
	 	 	Section 5.4	 	Consolidation or Merger or Sale of Assets	 	11
	

Article 6.	
 	

Exchange and Transfer of Equity Warrants	
 	

12
	 	 	Section 6.1	 	Equity Warrant Register; Exchange and Transfer of Equity Warrants	 	12
	 	 	Section 6.2	 	Treatment of Holders of Equity Warrants	 	13
	 	 	Section 6.3	 	Cancellation of Equity Warrant Certificates	 	13
	

Article 7.	
 	

Concerning the Equity Warrant Agent	
 	

14
	 	 	Section 7.1	 	Equity Warrant Agent	 	14
	 	 	Section 7.2	 	Conditions of Equity Warrant Agent's Obligations	 	14
	 	 	Section 7.3	 	Compliance with Applicable Laws	 	16
	 	 	Section 7.4	 	Resignation and Appointment of Successor	 	17
	

Article 8.	
 	

Miscellaneous	
 	

18
	 	 	Section 8.1	 	Amendment	 	18
	 	 	Section 8.2	 	Notices and Demands to the Company and Equity Warrant Agent	 	19
	 	 	Section 8.3	 	Addresses for Notices	 	19
	 	 	Section 8.4	 	Governing Law	 	19
	 	 	Section 8.5	 	Governmental Approvals	 	19
	 	 	Section 8.6	 	Reservation of Shares of Common Stock	 	19
	 	 	Section 8.7	 	Covenant Regarding Shares of Common Stock	 	20
	 	 	Section 8.8	 	Persons Having Rights Under Agreement	 	20
	 	 	Section 8.9	 	Delivery of Prospectus	 	20
	 	 	Section 8.10	 	Headings	 	20
	 	 	Section 8.11	 	Counterparts	 	20
	 	 	Section 8.12	 	Inspection of Agreement	 	20

i

 

        THIS
STOCKHOLDER EQUITY WARRANT AGREEMENT (the "Agreement"), dated as of [Date], 2003, between InterActiveCorp, a
Delaware corporation (formerly known as USA Interactive, the "Company"), and Mellon Investor Services LLC, a New Jersey limited liability company, as
warrant agent (the "Equity Warrant Agent"). 

        WHEREAS,
pursuant to the Amended and Restated Agreement and Plan of Recapitalization and Merger, by and among the Company, Expedia, Inc.
("Expedia"), Taipei, Inc. ("Taipei"), Microsoft Corporation, and Microsoft
E-Holdings, Inc., dated as of July 15, 2001, each Expedia shareholder who retained its shares of common stock, par value $.01 per share, of Expedia (the
"Expedia Common Stock") in the recapitalization received, in connection with the merger of Taipei with and into Expedia, for each retained share of
Expedia Common Stock, 0.1920 of a warrant, each full warrant (an "Expedia Equity Warrant", and collectively, the "Expedia Equity
Warrants") currently representing, after giving effect to a two-for-one warrant split effective March 10, 2003, the right to purchase one share
of Expedia Common Stock at an exercise price of $26.00; 

        WHEREAS,
pursuant to the Agreement and Plan of Merger (the "Merger Agreement"), by and among the Company, Expedia and Equinox Merger Corp.
("Equinox"), dated as of March 18, 2003, the Company will acquire the shares of Expedia Common Stock that it does not already own pursuant to the
merger of Equinox with and into Expedia, with Expedia surviving as a wholly owned subsidiary of the Company (the "Merger"); 

        WHEREAS,
in connection with the Merger, each Expedia Equity Warrant will be converted into a warrant of the Company (an "Equity Warrant"
or, collectively, the "Equity Warrants") representing the right to purchase 1.93875 shares of common stock, par value $0.01 per share, of the Company
("Common Stock") at an exercise price of $26.00, such Equity Warrants to be evidenced either in electronic book-entry form or by
certificates herein called the "Equity Warrant Certificates";  

        WHEREAS, the Company desires the Equity Warrant Agent to assist the Company in connection with the issuance, transfer, exchange, cancellation, replacement and
exercise of the Equity Warrants, and in this Agreement wishes to set forth, among other things, the terms and conditions on which the Equity Warrants may be issued, transferred, exchanged, cancelled,
replaced and exercised; and 

        WHEREAS,
the Company has duly authorized the execution and delivery of this Agreement to provide for the issuance of Equity Warrants to be exercisable at such times and for such prices,
and to have such other provisions, as shall be fixed as hereinafter provided. 

        NOW,
THEREFORE, in consideration of the premises and of the mutual agreements herein contained, the parties hereto agree as follows: 

ii

 
 

Article 1.
  
    Definitions    
    

        "Closing Date"    has the meaning referred to in the Merger Agreement. 

        "Closing Price"    for each Trading Day shall be the last reported sales price regular way, during regular trading hours, or, in
case no such reported sales takes place on such day, the average of the closing bid and asked prices regular way, during regular trading hours, for such day, in each case on The Nasdaq Stock Market
or, if not listed or quoted on such market, on the principal national securities exchange on which the shares of Common Stock are listed or admitted to trading or, if not listed or admitted to trading
on a national securities exchange, the last sale price regular way for the Common Stock as published by the National Association of Securities Dealers Automated Quotation System
("NASDAQ"), or if such last sale price is not so published by NASDAQ or if no such sale takes place on such day, the mean between the closing bid and
asked prices for the Common Stock as published by NASDAQ. If the Common Stock is not publicly held or so listed or publicly traded, "Closing Price" shall mean the Fair Market Value per share as
determined in good faith by the board of directors of the Company or, if such determination cannot be made, by a nationally recognized independent investment banking firm selected in good faith by the
board of directors of the Company. 

        "Common Stock"    shall have the meaning set forth in the recitals hereto. 

        "Current Market Price"    shall have the meaning set forth in Section 4.1(d). 

        "Equity Warrant"    shall have the meaning set forth in the recitals hereto. 

        "Equity Warrant Certificate"    shall have the meaning set forth in the recitals hereto. 

        "Equity Warrant Register"    shall have the meaning set forth in Section 6.1. 

        "Exercise Date"    shall have the meaning set forth in Section 3.3(a). 

        "Exercise Price"    shall have the meaning set forth in Section 3.1. 

        "Expiration Date"    means 5:00 p.m. New York City time on February 4, 2009. 

        "Fair Market Value"    means the amount that a willing buyer would pay a willing seller in an arm's-length transaction. 

        "Formed, Surviving or Acquiring Corporation"    shall have the meaning set forth in Section 5.4. 

        "Holder"    means the Person or Persons in whose name such Equity Warrant Certificate shall then be registered as set forth in
the Equity Warrant Register to be maintained by the Equity Warrant Agent pursuant to Section 6.1 for that purpose. 

        "Merger"    shall have the meaning set forth in the recitals. 

        "Merger Agreement"    shall have the meaning set forth in the recitals. 

        "Non-Electing Share"    shall have the meaning set forth in Section 5.4. 

        "Officer's Certificate"    shall have the meaning set forth in Section 7.2(f). 

        "Person"    means an individual, corporation, limited liability company, partnership, association, trust or any other entity or
organization. 

        "Prospectus"    shall have the meaning set forth in Section 8.9. 

        "Sale Transaction"    shall have the meaning set forth in Section 5.4. 

        "Time of Determination"    shall have the meaning set forth in Section 4.1(d). 

        "Trading Day"    shall mean a day on which the securities exchange utilized for the purpose of calculating the Closing Price
shall be open for business or, if the shares of Common Stock shall not be listed on such exchange for such period, a day on which The Nasdaq Stock Market is open for business. 

 
 
 

Article 2.
  
    Issuance of Equity Warrants and Execution and
  Delivery of Equity Warrant Certificates    
    

        Section 2.1    Issuance of Equity Warrants.    Equity Warrants shall only be issued by the Company on the
Closing Date in exchange for the Expedia Equity Warrants as contemplated by the Merger Agreement. The Company shall promptly notify the Equity Warrant Agent in writing of the occurrence of the Closing
Date and the issuance of the Equity Warrants in exchange for the Expedia Equity Warrants. 

        Section 2.2    Form and Execution of Equity Warrant Certificates.    

        (a)   Except
as provided in Section 2.6, the Equity Warrants shall be evidenced by the Equity Warrant Certificates, which shall be in registered form and substantially
in the form set forth as Exhibit A attached hereto. Each Equity Warrant Certificate shall be dated the date it is countersigned by the Equity Warrant Agent and may have such letters, numbers or
other marks of identification and such legends or endorsements printed, lithographed or engraved thereon as are not inconsistent with the provisions of this Agreement, which do not change the Equity
Warrant Agent's duties, liabilities or obligations, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities
exchange on which the Equity Warrants may be listed, or to conform to usage, as the officer of the Company executing the same may approve (his execution thereof to be conclusive evidence of such
approval). Each Equity Warrant Certificate shall evidence one or more Equity Warrants. 

        (b)   The
Equity Warrant Certificates shall be signed in the name and on behalf of the Company by its Chairman, its Vice Chairman, its Chief Executive Officer, President or a
Vice President (any reference to a Vice President of the Company herein shall be deemed to include any Vice President of the Company, whether or not designated by a number or a word or words added
before or after the title "Vice President") under its corporate seal, and attested by its Secretary or an Assistant Secretary. Such signatures may be manual or facsimile signatures of the present or
any future holder of any such office and may be imprinted or otherwise reproduced on the Equity Warrant Certificates. The seal of the Company may be in the form of
a facsimile thereof and may be impressed, affixed, imprinted or otherwise reproduced on the Equity Warrant Certificates. 

        (c)   No
Equity Warrant Certificate shall be valid for any purpose, and no Equity Warrant evidenced thereby shall be deemed issued or exercisable, until such Equity Warrant
Certificate has been countersigned by the manual or facsimile signature of the Equity Warrant Agent. Such signature by the Equity Warrant Agent upon any Equity Warrant Certificate executed by the
Company shall be conclusive evidence that the Equity Warrant Certificate so countersigned has duly been issued hereunder. 

        (d)   In
case any officer of the Company who shall have signed any Equity Warrant Certificate either manually or by facsimile signature shall cease to be such officer before
the Equity Warrant Certificate so signed shall have been countersigned and delivered by the Equity Warrant Agent, such Equity Warrant Certificate nevertheless may be countersigned and delivered as
though the person who signed such Equity Warrant Certificate had not ceased to be such officer of the Company; and any Equity Warrant Certificate may be signed on behalf of the Company by such person
as, at the actual date of the execution of such Equity Warrant Certificate, shall be the proper officer of the Company, although at the date of the execution of this Agreement such person was not such
an officer. 

        Section 2.3    Issuance and Delivery of Equity Warrant Certificates.    At any time and from time to time after
the execution and delivery of this Agreement, the Company may deliver Equity Warrant Certificates executed by the Company to the Equity Warrant Agent for countersignature. Except as provided in the
following sentence, the Equity Warrant Agent shall thereupon countersign and deliver such Equity Warrant Certificates to or upon the written request of the Company. Subsequent to the original issuance
of an Equity Warrant Certificate evidencing Equity Warrants, the Equity Warrant Agent shall countersign a new Equity Warrant Certificate evidencing such Equity Warrants only if such Equity Warrant
Certificate is issued in exchange or substitution for one or more previously countersigned Equity Warrant Certificates evidencing such Equity Warrants or in connection with their transfer, as
hereinafter provided. 

2

 

        Section 2.4    Temporary Equity Warrant Certificates.    Pending the preparation of a definitive Equity Warrant
Certificate, the Company may execute, and upon the written order of the Company, the Equity Warrant Agent shall countersign and deliver, temporary Equity Warrant Certificates that are printed,
lithographed, typewritten, mimeographed or otherwise produced, substantially of the tenor of the definitive Equity Warrant Certificates in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officer executing such Equity Warrant Certificates may determine are in compliance with this Agreement, as evidenced by his execution
of such Equity Warrant Certificates. 

        If
temporary Equity Warrant Certificates are issued, the Company will cause definitive Equity Warrant Certificates to be prepared without unreasonable delay. After the preparation of
definitive Equity Warrant Certificates, the temporary Equity Warrant Certificates shall be exchangeable for definitive Equity Warrant Certificates upon surrender of the temporary Equity Warrant
Certificates at the office of the Equity Warrant Agent designated for such purpose. Upon surrender for cancellation of any one or more temporary Equity Warrant Certificates, the Company shall execute
and the Equity Warrant Agent shall countersign and deliver in exchange therefor definitive Equity Warrant Certificates representing the same aggregate number of Equity Warrants which were represented
on the temporary Equity Warrant Certificate. Until so exchanged,
the temporary Equity Warrant Certificates shall in all respects be entitled to the same benefits under this Agreement as definitive Equity Warrant Certificates. 

        Section 2.5    Payment of Transfer Taxes.    The Company will pay all transfer, stamp and other similar taxes,
if any, to which this Agreement or the original issuance, or exercise, of the Equity Warrants or Equity Warrant Certificates may be subject under the laws of the United States of America or any state
or locality; provided, however, that the Holder, and not the Company, shall be required to pay any transfer, stamp or other similar tax or other
governmental charge that may be imposed in connection with any transfer involved in the issuance of the Common Stock where the Holder designates the shares to be issued in a name other than the name
of the Holder; and in the event that any such transfer is involved, the Company shall not be required to issue any Common Stock (and the purchase of the shares of Common Stock issued upon the exercise
of such Holder's Equity Warrant shall not be deemed to have been consummated) until such tax or other charge shall have been paid or it has been established to the Company's satisfaction that no such
tax or other charge is due. 

        Section 2.6    Book-Entry Provisions for Equity Warrants.    Unless (i) a Holder
specifically requests in writing to the Equity Warrant Agent and to the Company that the Equity Warrants be in certificated form, provided, that such
certification may be made only with respect to such Holder's vested Equity Warrants, or (ii) the Company instructs the Equity Warrant Agent in writing to issue Warrant Certificates in respect
of a Holder's Equity Warrants that fall below a de minimus amount, as determined by the Company, paper certificates representing the Equity Warrants
will not be issued by the Company. Instead, the Equity Warrants shall (i) be registered on the books and records of the Equity Warrant Agent in the name of the Holder, and the Holder shall,
subject to any cancellation or expiration thereof, be treated as the owner of such Equity Warrants for all purposes, (ii) be delivered to the Equity Warrant Agent in electronic form to be held
for the account for such Holder, and (iii) bear the same restrictions and legends applicable to such Equity Warrants had such Equity Warrants been certificated as provided herein. 

3

  

 
 

Article 3.
  
    Duration and Exercise of Equity Warrants    
    

        Section 3.1    Exercise Price.    Each Equity Warrant shall entitle the Holder thereof to purchase 1.93875
shares of Common Stock for $26.00 (the "Exercise Price"), subject to the terms herein. The number of shares of Common Stock which shall be purchasable
upon the payment of the Exercise Price shall be subject to adjustment pursuant to Article 4 hereof. 

        Section 3.2    Duration of Equity Warrants.    Each Equity Warrant may be exercised at any time up to the
Expiration Date. Each Equity Warrant not exercised on or prior to the Expiration Date shall become void, and all rights of the Holder of such Equity Warrant thereunder and under this Agreement shall
cease. 

        Section 3.3    Exercise of Equity Warrants.    

        (a)   The
Holder of an Equity Warrant shall have the right, at its option, to exercise such Equity Warrant and purchase 1.93875 shares of Common Stock during the period
referred to in Section 3.2, subject to adjustment pursuant to Article 4 hereof. Except as may be provided in an Equity Warrant Certificate, an Equity Warrant may be exercised
(i) in the event that such Equity Warrant has been certificated, by completing the form of election to purchase set forth on the reverse side of the Equity Warrant Certificate or (ii) in
the event that such Equity Warrant has not been certificated, by completing a Notice of Purchase in the form attached hereto as Exhibit B, by
duly executing the same, and by delivering the same, together with payment in full of the Exercise Price, in lawful money of the United States of America, in cash or by certified or official bank
check or by bank wire transfer, to the Equity Warrant Agent at its office designated for such purpose. Except as may be provided in an Equity Warrant Certificate, the date on which such Equity Warrant
Certificate and payment are received by the Equity Warrant Agent as aforesaid shall be deemed to be the date on which the Equity Warrant is exercised and the relevant shares of Common Stock are issued
(the "Exercise Date"). 

        (b)   Upon
the exercise of an Equity Warrant, the Company shall, as soon as practicable, issue, to or upon the order of the Holder of such Equity Warrant, the shares of Common
Stock to which such Holder is entitled, registered in such name or names as may be directed by such Holder. 

        (c)   Unless
the Equity Warrant Agent and the Company agree in writing otherwise, the Equity Warrant Agent shall deposit all funds received by it in payment of the Equity
Warrant Price for Equity Warrants in the non-interest bearing account of the Company maintained with it for such purpose and shall advise the Company by telephone by 5:00 P.M., New
York City time, of each day on which a payment of the Exercise Price for Equity Warrants is received, of the amount so deposited in such account. The Equity Warrant Agent shall promptly confirm such
telephone advice in writing to the Company. 

        (d)   The
Equity Warrant Agent shall, from time to time, as promptly as practicable, advise the Company of (i) the number of Equity Warrants exercised as provided
herein, (ii) the written instructions it receives from each Holder of such Equity Warrants with respect to the delivery of the Common Stock issued upon exercise of such Equity Warrants to which
such Holder is entitled upon such exercise, and (iii) such other information as the Company shall reasonably require. Such advice may be given by telephone to be confirmed in writing. 

 
 

Article 4.
  
    Adjustments of Number of Shares    
    

        Section 4.1    Adjustments.    The number of shares of Common Stock purchasable upon the exercise of the Equity
Warrants shall be subject to adjustment as follows: 

        (a)   In
case the Company shall (i) pay a dividend or make a distribution on its Common Stock in shares of Common Stock, (ii) subdivide its outstanding shares of
Common Stock into a greater number of shares, (iii) combine its outstanding shares of Common Stock into a smaller number of shares, or (iv) issue by reclassification, recapitalization or
reorganization of its Common Stock any shares of capital stock of the Company, then in each such case the number of shares of Common Stock issuable upon exercise of an Equity Warrant shall be
equitably adjusted so that the Holder of any Equity Warrant thereafter surrendered for conversion shall be entitled to receive the number of shares of Common 

4

 

Stock
or other capital stock of the Company which such Holder would have owned or been entitled to receive immediately following such action had such Equity Warrant been exercised immediately prior to
the occurrence of such event. An adjustment made pursuant to this subsection 4.1(a) shall become effective immediately after the record date and written notice thereof to the Equity Warrant Agent, in
the case of a dividend or distribution, or immediately after the effective date, in the case of a subdivision, combination or reclassification. If, as a result of an adjustment made pursuant to this
subsection 4.1(a), the Holder of any Equity Warrant thereafter exercised shall become entitled to receive shares of two or more classes of capital stock or shares of Common Stock and other capital
stock of the Company, the Company's board of directors (whose determination shall be in its good faith judgment and shall be described in a statement filed by the Company with the Equity Warrant Agent
and which shall be conclusive for all purposes) shall determine the allocation of the Exercise Price between or among shares of such classes of capital stock or shares of Common Stock and other
capital stock. 

        (b)   In
case the Company shall issue options, rights or warrants to holders of its outstanding shares of Common Stock entitling them (for a period expiring within
45 days after the record date mentioned below) to subscribe for or purchase shares of Common Stock or other securities convertible or exchangeable for shares of Common Stock at a price per
share of Common Stock less than the Current Market Price (as determined pursuant to subsection (d) of this Section 4.1) (other than pursuant to any stock option, restricted stock or
other incentive or benefit plan or stock ownership or purchase plan for the benefit of employees, directors or officers or any dividend reinvestment plan of the Company in effect at the time hereof or
any other similar plan adopted or implemented hereafter, it being agreed that none of the adjustments set forth in this Section 4.1 shall apply to the issuance of stock, rights, warrants or
other property pursuant to such benefit plans), then the number of shares of Common Stock issuable upon exercise of an Equity Warrant shall be adjusted so that it shall equal the product obtained by
multiplying the number of shares of Common Stock issuable upon exercise of an Equity Warrant immediately prior to the date of issuance of such rights or warrants by a fraction of which the numerator
shall be the number of shares of Common Stock outstanding on the date of issuance of such rights or warrants (immediately prior to such issuance) plus the number of additional shares of Common Stock
offered for subscription or purchase and of which the denominator shall be the number of shares of Common Stock outstanding on the date of issuance of such rights or warrants (immediately prior to
such issuance) plus the number of shares which the aggregate offering price of the total number of shares so offered would purchase at such Current Market Price. Such adjustment shall be made
successively whenever any rights or warrants are issued, and shall become effective immediately after the record date for the determination of stockholders entitled to receive such rights or
warrants; provided, however, in the event that all the shares of Common Stock offered for subscription
or purchase are not delivered upon the exercise of such rights or warrants, upon the expiration of such rights or warrants the number of shares of Common Stock issuable upon exercise of an Equity
Warrant shall be readjusted to the number of shares of Common Stock issuable upon exercise of an Equity Warrant which would have been in effect had the numerator and the denominator of the foregoing
fraction and the resulting adjustment been made based upon the number of shares of Common Stock actually delivered upon the exercise of such rights or warrants rather than upon the number of shares of
Common Stock offered for subscription or purchase. In determining whether any security covered by this Section 4.1(b) entitles the holders to subscribe for or purchase shares of Common Stock at
less than such Current Market Price, and in determining the aggregate offering price of such shares of Common Stock, there shall be taken into account any consideration received by the Company for the
issuance of such options, rights, warrants or convertible or exchangeable securities, plus the aggregate amount of additional consideration (as set forth in the instruments relating thereto) to be
received by the Company upon the exercise, conversion or exchange of such securities, the value of such consideration, if other than cash, to be determined by the Company's board of directors in its
good faith judgment (whose determination shall be described in a statement filed by the Company with the Equity Warrant Agent, and which statement the Equity Warrant Agent shall be entitled to rely on
for all purposes and the Equity Warrant Agent shall have no obligation to investigate or confirm the accuracy thereof.) 

        (c)   In
case the Company shall, by dividend or otherwise, distribute to all holders of its outstanding Common Stock, evidences of its indebtedness or assets (including
securities and cash, but excluding any regular periodic cash dividend of the Company and dividends or distributions payable in stock for which adjustment is made pursuant to subsection (a) of
this Section 4.1) or rights or warrants to subscribe for or purchase securities of the Company (excluding those referred to in subsection (b) of this Section 4.1), 

5

 

then
in each such case the number of shares of Common Stock issuable upon exercise of an Equity Warrant shall be adjusted so that the same shall equal the product determined by multiplying the number
of shares of Common Stock issuable upon exercise of an Equity Warrant immediately prior to the record date of such distribution by a fraction of which the numerator shall be the Current Market Price
as of the Time of Determination, and of which the denominator shall be such Current Market Price less the Fair Market Value on such record date (as determined by the Company's board of directors in
its good faith judgment, whose determination shall be described in a statement filed by the Company with the stock transfer or conversion agent and the Equity Warrant Agent, as appropriate, and which
statement the Equity Warrant Agent shall be entitled to rely on for all purposes and the Equity Warrant Agent shall have no obligation to investigate or confirm the accuracy thereof) of the portion of
the capital stock or assets or the evidences of indebtedness or assets so distributed to the holder of one share of Common Stock or of such subscription rights or warrants applicable to one share of
Common Stock. Such adjustment shall become effective immediately after the record date for the determination of stockholders entitled to receive such distribution. 

        (d)   For
the purpose of any computation under subsections (b) and (c) of this Section 4.1, the "Current Market
Price" per share of Common Stock on any date shall be deemed to be the average of the daily Closing Prices for the shorter of (A) 10 consecutive Trading Days ending on
the day immediately preceding the applicable Time of Determination or (B) the period commencing on the date next succeeding the first public announcement of the issuance of such rights or
warrants or such distribution through such last day prior to the applicable Time of Determination. For purposes of the foregoing, the term "Time of
Determination" shall mean the time and date of the record date for determining stockholders entitled to receive the rights, warrants or distributions referred to in
Section 4.1(b) and (c). 

        (e)   In
any case in which this Section 4.1 shall require that an adjustment in the amount of Common Stock or other property to be received by a Holder upon exercise of
an Equity Warrant be made effective as of a record date for a specified event, the Company may elect to defer (with prompt notice of such election to the Equity Warrant Agent) until the occurrence of
such event the issuance to the Holder of any Equity Warrant exercised after such record date the Common Stock or other property issuable upon such exercise over and above the shares of Common Stock
issuable upon such exercise prior to such adjustment, provided, however, that the Company shall deliver
to such Holder a due bill or other appropriate instrument evidencing such Holder's right to receive such additional shares of Common Stock or other property, if any, upon the occurrence of the event
requiring such adjustment. 

        (f)    No
adjustment in the number of shares of Common Stock issuable upon exercise of an Equity Warrant shall be required to be made pursuant to this Section 4.1 unless
such adjustment would require an increase or decrease of at least 1% of such number; provided, however,
that any adjustments which by reason of this subsection (f) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this
Section 4.1(f) shall be made to the nearest cent or to the nearest 1/1000th of a share, as the case may be. Except as set forth in subsections 4.1(a), (b), and (c) above, the number of
shares of Common Stock issuable upon exercise of an Equity Warrant shall not be adjusted as a result of the issuance of Common Stock, or any securities convertible into or exchangeable for Common
Stock or carrying the right to purchase any of the foregoing, in exchange for cash, property or services. 

        Section 4.2    Statement on Warrants.    Irrespective of any adjustment in the amount of Common Stock issued
upon exercise of an Equity Warrant, Equity Warrant Certificates theretofore or thereafter issued may continue to express the same number and kind of shares as are stated in the Equity Warrants
initially issuable pursuant to this Agreement. 

        Section 4.3    Cash Payments in Lieu of Fractional Shares.    No fractional shares or scrip representing
fractions of shares of Common Stock shall be issued upon exercise of the Equity Warrants. If one or more Equity Warrants shall be exercised at one time by the same Holder, the number of full shares of
Common Stock issuable to such Holder upon exercise thereof shall be computed on the basis of the aggregate number of shares of Common Stock issuable to such Holder. In lieu of any fractional interest
in a share of Common Stock which would otherwise be deliverable upon the exercise of such Equity Warrants, the Company shall pay to the Holder of such Equity Warrants an amount in cash (computed to
the nearest cent) equal to the 

6

 

Closing
Price on the Exercise Date (or the next Trading Day if such date is not a Trading Day) multiplied by the fractional interest that otherwise would have been deliverable upon exercise of such
Equity Warrants. 

        Section 4.4    Notices to Warrantholders.    (a) Upon any adjustment of the amount of Common Stock
issuable upon exercise of an Equity Warrant pursuant to Section 4.1 (but not for any fractional cumulation as described in Section 4.1(f)), the Company within 30 days thereafter
shall (i) cause to be filed with the Equity Warrant Agent an Officer's Certificate (as defined hereinafter) setting forth the amount of Common Stock issuable upon exercise of an Equity Warrant
after such adjustment and setting forth in reasonable detail the method of calculation and the facts upon which such calculations are based, which certificate, absent manifest error and any failure to
comply with Section 4.1 (other than failures that are de minimus in nature), shall be conclusive evidence of the correctness of the matters set forth therein, and (ii) cause to be given
to each of the registered Holders at his address appearing on the Equity Warrant Register (as defined hereinafter) written notice of such adjustments by first-class mail, postage
prepaid; provided, however, that the Equity Warrant Agent shall be entitled to rely on such certificate
for all purposes and shall have no obligation to investigate any error or any failure to comply with Section 4.1. 

 
 

Article 5.
  
    Other Provisions Relating to Rights of Holders of Equity Warrants    
    

        Section 5.1    No Rights as Holder of Common Stock Conferred by Equity Warrants or Equity Warrant Certificates.
    No Equity Warrant or Equity Warrant Certificate shall entitle the Holder to any of the rights of a holder of Common Stock, including, without limitation, voting, dividend or liquidation
rights. 

        Section 5.2    Lost, Stolen, Destroyed or Mutilated Equity Warrant Certificates.    Upon receipt by the Company
and the Equity Warrant Agent of evidence reasonably satisfactory to them of the ownership of and the loss, theft,
destruction or mutilation of any Equity Warrant Certificate and of indemnity (other than in connection with any mutilated Equity Warrant certificates surrendered to the Equity Warrant Agent for
cancellation) satisfactory to them, the Company shall execute, and the Equity Warrant Agent shall countersign and deliver, in exchange for or in lieu of each lost, stolen, destroyed or mutilated
Equity Warrant Certificate, a new Equity Warrant Certificate evidencing a like number of Equity Warrants of the same title. Upon the issuance of a new Equity Warrant Certificate under this Section,
the Company may require the Holder to pay an amount sufficient to cover any transfer, stamp or other similar tax or other governmental charge that may be imposed in connection therewith and any other
expenses (including the fees and expenses of the Equity Warrant Agent) in connection therewith. Every substitute Equity Warrant Certificate executed and delivered pursuant to this Section in lieu of
any lost, stolen or destroyed Equity Warrant Certificate shall represent a contractual obligation of the Company, whether or not such lost, stolen or destroyed Equity Warrant Certificate shall be at
any time enforceable by anyone, and shall be entitled to the benefits of this Agreement equally and proportionately with any and all other Equity Warrant Certificates, duly executed and delivered
hereunder, evidencing Equity Warrants of the same title. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the
replacement of lost, stolen, destroyed or mutilated Equity Warrant Certificates. 

        Section 5.3    Holders of Equity Warrants May Enforce Rights.    Notwithstanding any of the provisions of this
Agreement, any Holder may, without the consent of the Equity Warrant Agent, enforce and may institute and maintain any suit, action or proceeding against the Company suitable to enforce, or otherwise
in respect of his right to exercise his Equity Warrants as provided in the Equity Warrants and in this Agreement. 

        Section 5.4    Consolidation or Merger or Sale of Assets.    For purposes of this Section 5.4, a
"Sale Transaction" means any transaction or event, including any merger, consolidation, sale of assets, tender or exchange offer, reclassification,
compulsory share exchange or liquidation, in which all or substantially all outstanding shares of the Common Stock are converted into or exchanged for stock, other securities, cash or assets or
following which any remaining outstanding shares of Common Stock fail to meet the listing standards imposed by each of the New York Stock Exchange, the American Stock Exchange and the Nasdaq National
Market at the time of such transaction, but shall not include any transaction the primary purpose of which is the reincorporation of the Company in another jurisdiction of the United States of America
so long as in such transaction each Equity Warrant shall convert into an equity security of the successor to the Company having right identical to the Equity Warrant. If a Sale Transaction occurs,
then lawful provision 

7

 

shall
be made by the entity formed by such Sale Transaction or the corporation entity securities, cash or other property will immediately after the Sale Transaction be owned, by virtue of such Sale
Transaction, by the holders of Common Stock immediately prior to the Sale Transaction, or the entity which shall have acquired such securities of the Company (collectively the
"Formed, Surviving or Acquiring Corporation"), as the case may be, providing that each Equity Warrant then outstanding shall thereafter be exercisable
for the kind and amount of securities, cash or other property receivable upon such Sale Transaction by a holder of the number of shares of Common Stock that would have been received upon exercise of
such Equity Warrant immediately prior to such Sale Transaction assuming such holder of Common Stock did not exercise his rights of election, if any, as to the kind or amount of securities, cash or
other property receivable upon such Sale Transaction (provided that, if the kind or amount of securities, cash or other property receivable upon such Sale Transaction is not the same for each share of
Common Stock in respect of which such rights of election shall not have been exercised ("Non-Electing Share"), then for the purposes of this
Section 5.4 the kind and amount of securities, cash or other property receivable upon such Sale Transaction for each Non-Electing Share shall be deemed to be the kind and amount so
receivable per share by a plurality of the Non-Electing Shares). At the option of the Company, in lieu of the foregoing, the Company may require that in a Sale Transaction each Holder of
an Equity Warrant shall receive in exchange for each such Equity Warrant a security of the Formed, Surviving or Acquiring Corporation having substantially equivalent rights as the Equity Warrant.
Notwithstanding anything to the contrary herein, there will be no adjustments pursuant to Article 4 hereof in case of the issuance of any shares of Common Stock in a Sale Transaction except as
provided in this Section 5.4. The provisions of this Section 5.4 shall similarly apply to successive Sale Transactions; provided, however, that in
no event shall a Holder of an Equity Warrant be entitled to more than one adjustment pursuant to this
Section 5.4 in respect of a series of related transactions. 

 
 

Article 6.
  
    Exchange and Transfer of Equity Warrants    
    

        Section 6.1    Equity Warrant Register; Exchange and Transfer of Equity Warrants.    The Equity Warrant Agent
shall maintain, at its office designated for such purpose, a register (the "Equity Warrant Register") in which, upon the issuance of Equity Warrants,
and, subject to such reasonable regulations as the Equity Warrant Agent may prescribe, it shall register the Equity Warrants, whether held in electronic book-entry or as Equity Warrant
Certificates, and exchanges and transfers thereof. The Equity Warrant Register shall be in written form or in any other form capable of being converted into written form within a reasonable time. 

        Except
as provided in the following sentence, Equity Warrants, whether held in electronic book-entry form or represented by Equity Warrant Certificates, may be exchanged for
one or more other Equity Warrants evidencing the same aggregate number of Equity Warrants of the same title, or may be transferred in whole or in part. A transfer shall be registered and an
appropriate entry made in the Equity Warrant Register (i) in the case of Equity Warrants held in electronic book-entry form, upon receipt by the Equity Warrant Agent at its office
designated for such purpose of irrevocable written instructions for exchange or transfer, all in form satisfactory to the Company and the Equity Warrant Agent, and (ii) in the case of Equity
Warrant Certificates, upon surrender of an Equity Warrant Certificate to the Equity Warrant Agent at its office designated for such purpose for transfer, properly endorsed or accompanied by
appropriate instruments of transfer and written instructions for transfer, all in form satisfactory to the Company and the Equity Warrant Agent. Whenever an Equity Warrant Certificate is surrendered
for exchange or transfer, the Equity Warrant Agent shall countersign and deliver to the Person or Person entitled thereto one or more Equity Warrant Certificates duly executed by the Company, as so
requested. The Equity Warrant Agent shall not be required to effect any exchange or transfer which will result in the issuance of a fraction of an Equity Warrant or an Equity Warrant Certificate
evidencing a fraction of an Equity Warrant. All Equity Warrants, whether issued in electronic book-entry form or represented by Equity Warrant Certificates, issued upon any exchange or
transfer of an Equity Warrant Certificate shall be the valid obligations of the Company, evidencing the same obligations, and entitled to the same benefits under this Agreement, as the Equity Warrants
surrendered for such exchange or transfer. 

        No
service charge shall be made for any exchange or transfer of Equity Warrants, but the Company may require payment of a sum sufficient to cover any transfer, stamp or other similar tax
or other governmental charge that may be imposed in connection with any such exchange or transfer, in accordance with Section 2.5 hereof. 

8

 

        Section 6.2    Treatment of Holders of Equity Warrants.    Every Holder of an Equity Warrant, by accepting the
Equity Warrant Certificate evidencing the same, consents and agrees with the Company, the Equity Warrant Agent and with every other Holder of Equity Warrants that the Company and the Equity Warrant
Agent may treat the record holder of an Equity Warrant Certificate as the absolute owner of such Equity Warrant for all purposes and as the Person entitled to exercise the rights represented by such
Equity Warrant. 

        Section 6.3    Cancellation of Equity Warrant Certificates.    In the event that the Company shall purchase,
redeem or otherwise acquire any Equity Warrants after the issuance thereof, the Equity Warrant Certificate shall thereupon be delivered to the Equity Warrant Agent and be canceled by it. The Equity
Warrant Agent shall also cancel any Equity Warrant Certificate (including any mutilated Equity Warrant Certificate) delivered to it for exercise, in whole or in part, or for exchange or transfer.
Equity Warrant Certificates so canceled shall be delivered by the Equity Warrant Agent to the Company from time to time, or disposed of in accordance with the instructions of the Company. 

9

  

 
 

Article 7.
  
    Concerning the Equity Warrant Agent    
    

        Section 7.1    Equity Warrant Agent.    The Company hereby appoints Mellon Investor Services LLC as Equity
Warrant Agent of the Company in respect of the Equity Warrants upon the expressed terms and conditions set forth herein; and Mellon Investor Services LLC hereby accepts such appointment. The Equity
Warrant Agent shall have the powers and authority expressly granted to and conferred upon it in the Equity Warrant Certificates and hereby and such further powers and authority acceptable in writing
to the Equity Warrant Agent to act on behalf of the Company as the Company may hereafter grant to or confer upon it. All of the terms and provisions with respect to such powers and authority contained
in the Equity Warrant Certificates are subject to and governed by the terms and provisions hereof. 

        Section 7.2    Conditions of Equity Warrant Agent's Obligations.    The Equity Warrant Agent accepts its
obligations expressly set forth herein upon the terms and conditions hereof, including the following, to all of which the Company agrees and to all of which the rights hereunder of the Holders shall
be subject: 

        (a)    Compensation and Indemnification.    The Company agrees promptly to pay the Equity Warrant Agent the
compensation to be set forth in Exhibit C attached hereto and to reimburse the Equity Warrant Agent for reasonable
out-of-pocket expenses (including reasonable counsel fees and disbursements) incurred by the Equity Warrant Agent in connection with the preparation, delivery, execution,
administration and amendment of this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify the Equity Warrant Agent for, and to hold it harmless
against, any loss, liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or expenses (including without limitation, the reasonable costs and expense of defending against any
claim of liability) incurred without gross negligence or bad faith on the part of the Equity Warrant Agent (as each is finally determined by a court of competent jurisdiction) for any action taken,
suffered or omitted by the Equity Warrant Agent in connection with the acceptance and administration of this Agreement or the exercise or performance of its duties hereunder. The indemnification and
exculpation provisions provided for herein, including, but not limited to those in Sections 7.2(a) and 7.2(b) hereof, shall survive the termination of this Agreement and the resignation or
removal of the Equity Warrant Agent. The costs and expenses incurred in enforcing this right of indemnification shall be paid by the Company. 

        (b)    Liability of the Equity Warrant Agent.    The Equity Warrant Agent shall be liable hereunder only for its own
gross negligence or bad faith, as each is finally determined by a court of competent jurisdiction. Anything to the contrary notwithstanding, in no event shall the Equity Warrant Agent be liable for
special, punitive, indirect, consequential or incidental loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Equity Warrant Agent has been advised of the
likelihood of such loss or damage. Any liability of the Equity Warrant Agent under this Agreement will be limited to the amount of fees paid by the Company to the Equity Warrant Agent pursuant to this
Agreement. 

        (c)    Agent for the Company.    In acting under this Agreement and in connection with any Equity Warrant Certificate,
the Equity Warrant Agent is acting solely as agent of the Company and does not assume any obligation or relationship of agency or trust for or with any Holder. 

        (d)    Counsel.    The Equity Warrant Agent may consult with counsel reasonably satisfactory to it, and the advice or
opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with the advice or
opinion of such counsel. 

        (e)    Documents.    The Equity Warrant Agent shall be fully protected and shall incur no liability for or in respect
of any action taken, suffered or omitted by it in reliance upon any notice, direction, consent, certification, affidavit, statement or other paper or document reasonably believed by it to be genuine
and to have been presented or signed by the proper parties. 

        (f)    Officer's Certificate.    The Equity Warrant Agent is hereby authorized and directed to accept instructions
with respect to the performance of its duties hereunder, contained in a certificate signed by any one of the Chairman, the Vice Chairman, the Chief Executive Officer, the President, a Vice President,
the Treasurer, and Assistant Treasurer, the Secretary or an Assistant Secretary of the Company (an "Officer's Certificate") delivered by the Company to
the Equity Warrant Agent, and to 

10

 

apply
to such officers for advice or instructions in connection with its duties, and it shall not be liable for any action taken, suffered or omitted by it in good faith in accordance with any
Officer's Certificate or for any delay in acting while waiting for such Officer's Certificate. 

        (g)    Actions Through Agents.    The Equity Warrant Agent may execute and exercise any of the rights or powers hereby
vested in it or perform any duty hereunder either itself or by or through its attorneys or agents, and, with regard to acts performed through its attorneys, the Equity Warrant Agent shall not be
answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct, absent
gross negligence or bad faith of the Equity Warrant Agent (as each is finally determined by a court of competent jurisdiction) in the selection and continued employment of such attorneys or agents. 

        (h)    Certain Transactions.    The Equity Warrant Agent, and any stockholder, director, affiliate, officer or
employee of the Equity Warrant Agent, may become the owner of, or acquire interest in, any Equity Warrant, with the same rights that he, she or it would have if it were not the Equity Warrant Agent,
and, to the extent permitted by applicable law, he, she or it may engage or be interested in any financial or other
transaction with the Company and may serve on, or as depositary, trustee or agent for, any committee or body of holders of any obligations of the Company as if it were not the Equity Warrant Agent. 

        (i)    No Liability for Interest.    The Equity Warrant Agent shall not be liable for interest on any monies at any
time received by it pursuant to any of the provisions of this Agreement or of the Equity Warrant Certificates, except as otherwise agreed in writing with the Company. 

        (j)    No Liability for Invalidity.    The Equity Warrant Agent shall incur no liability with respect to the validity
of this Agreement (except as to the due execution hereof by the Equity Warrant Agent) or any Equity Warrant Certificate (except as to the countersignature thereof by the Equity Warrant Agent). 

        (k)    No Responsibility for Company Representations.    The Equity Warrant Agent shall not be liable or responsible
for any of the recitals or representations contained herein (except as to such statements or recitals as describe the Equity Warrant Agent or action taken or to be taken by it) or in any Equity
Warrant Certificate (except as to the Equity Warrant Agent's countersignature on such Equity Warrant Certificate), all of which recitals and representations are made solely by the Company. 

        (l)    No Implied Obligations.    The Equity Warrant Agent shall be obligated to perform only such duties as are
specifically set forth herein, and no other duties or obligations shall be implied. The Equity Warrant Agent shall not be under any obligation to take or omit any action hereunder that may subject it
to any expense or liability, the payment of which is not, in its reasonable opinion, assured to it. The Equity Warrant Agent shall not be accountable or under any duty or responsibility for the use by
the Company of any Equity Warrant Certificate countersigned by the Equity Warrant Agent and delivered by it to the Company pursuant to this Agreement or for the application by the Company of the
proceeds of the issuance or exercise of Equity Warrants. The Equity Warrant Agent shall have no duty, liability or responsibility in case of any default by the Company in the performance of its
covenants or agreements contained herein or in any Equity Warrant Certificate or in case of the receipt of any written demand from a Holder with respect to such default, including, without limiting
the generality of the foregoing, any duty or responsibility to initiate or attempt to initiate any proceedings at law or otherwise or, except as provided in Section 8.2 hereof, to make any
demand upon the Company. 

        (m)    Incurrence of Financial Liability by Equity Warrant Agent.    No provision of this Agreement shall require the
Equity Warrant Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of its rights if it reasonably
believes in good faith that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it. 

        Section 7.3    Compliance with Applicable Laws.    The Equity Warrant Agent agrees to comply with all
applicable federal and state laws imposing obligations on it in respect of the services rendered by it under this Agreement and in connection with the Equity Warrants, including (but not limited to)
the provisions of United States federal income tax laws regarding information reporting and backup withholding. The Equity Warrant Agent expressly assumes all liability for its failure to comply with
any such laws imposing obligations on it, including (but not limited to) any liability for failure to comply with any applicable provisions of United States federal income tax laws regarding
information reporting and backup withholding. 

11

 

        Section 7.4    Resignation and Appointment of Successor.    

        (a)   The
Company agrees, for the benefit of the Holders of the Equity Warrants, that there shall at all times be an Equity Warrant Agent hereunder until all the Equity
Warrants are no longer exercisable. 

        (b)   The
Equity Warrant Agent may at any time resign by giving written notice to the Company of such intention on its part, specifying the date on which its desired
resignation shall become effective, subject to the appointment of a successor Equity Warrant Agent and acceptance of such appointment by such successor Equity Warrant Agent, as hereinafter provided.
The Equity Warrant Agent hereunder may be removed at any time by the filing with it of an instrument in writing signed by or on behalf of the Company and specifying such removal and the date when it
shall become effective. Such resignation or removal shall take effect upon the appointment by the Company, as hereinafter provided, of a successor Equity Warrant Agent (which shall be a Person
organized under the laws of the United States of America, or one of the states thereof) and the acceptance of such appointment by such successor Equity Warrant Agent. In the event a successor Equity
Warrant Agent has not been appointed and has not accepted its duties within 30 days of the Equity Warrant Agent's notice of resignation, the Equity Warrant Agent may apply to any court of
competent jurisdiction for the designation of a successor Equity Warrant Agent. 

        (c)   In
case at any time the Equity Warrant Agent shall resign, or shall be removed, or shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or make
an assignment for the benefit of its creditors or consent to the appointment of a receiver or custodian of all or any substantial part of its property, or shall admit in writing its inability to pay
or meet its debts as they mature, or if a receiver or custodian of it or all or any substantial part of its property shall be appointed, or if any public officer shall have taken charge or control of
the Equity Warrant Agent or of its property or affairs, for the purpose of rehabilitation, conservation or liquidation, a successor Equity Warrant Agent, qualified as aforesaid, shall be appointed by
the Company by an instrument in writing, filed with the successor Equity Warrant Agent. Upon the appointment as aforesaid of a successor Equity Warrant Agent and acceptance by the latter of such
appointment, the Equity Warrant Agent so superseded shall cease to be the Equity Warrant Agent hereunder. 

        (d)   Any
successor Equity Warrant Agent appointed hereunder shall execute, acknowledge and deliver to its predecessor and to the Company an instrument accepting such
appointment hereunder, and thereupon such successor Equity Warrant Agent, without any further act, deed or conveyance, shall become vested with all the authority, rights, powers, trusts, immunities,
duties and obligations of such predecessor with like effect as if originally named as Equity Warrant Agent hereunder, and such predecessor, upon payment of its charges and disbursements then unpaid,
shall thereupon become obligated to transfer, deliver and pay over, and such successor Equity Warrant Agent shall be entitled to receive all moneys, securities and other property on deposit with or
held by such predecessor, as Equity Warrant Agent hereunder. 

        (e)   Any
Person into which the Equity Warrant Agent hereunder may be merged or converted or any Person with which the Equity Warrant Agent may be consolidated, or any Person
resulting from any merger, conversion or consolidation to which the Equity Warrant Agent shall be a party, or any Person to which the Equity Warrant Agent shall sell or otherwise transfer all or
substantially all of the assets and business of the Equity Warrant Agent, provided that it shall be qualified as aforesaid, shall be the successor Equity Warrant Agent under this Agreement without the
execution or filing of any paper or any further act on the part of any of the parties hereto. 

 
 

Article 8.
  
    Miscellaneous    
    

        Section 8.1    Amendment.    

        (a)   This
Agreement and the Equity Warrants may be amended by the Company and the Equity Warrant Agent, without the consent of the Holders of Equity Warrants, for the purpose
of curing any ambiguity, or of curing, correcting or supplementing any defective or inconsistent provision contained herein or therein or in any other manner which the Company may deem to be necessary
or desirable and which will not materially and adversely affect the interests of the Holders of the Equity Warrants. 

        (b)   The
Company and the Equity Warrant Agent may modify or amend this Agreement and the Equity Warrant Certificates with the consent of the Holders of not fewer than a
majority in number of the then 

12

 

outstanding
unexercised Equity Warrants affected by such modification or amendment, for any purpose; provided, however, that no such modification or amendment that
shortens the period of time during which the Equity Warrants may be exercised, or increases the per share Exercise Price,
or otherwise materially and adversely affects the exercise rights of the holders or reduces the percentage of holders of outstanding Equity Warrants the consent of which is required for modification
or amendment of this Agreement or the Equity Warrants, may be made without the consent of each Holder affected thereby. 

        (c)   Upon
request, the Company shall deliver to the Equity Warrant Agent an Officers Certificate which states that the proposed modification or amendment is in compliance
with the terms of this Section 8.1. 

        Section 8.2    Notices and Demands to the Company and Equity Warrant Agent.    If the Equity Warrant Agent
shall receive any written notice or demand addressed to the Company by any Holder pursuant to the provisions of the Equity Warrant Certificate, the Equity Warrant Agent shall promptly forward such
notice or demand to the Company. 

        Section 8.3    Addresses for Notices.    Any communications from the Company to the Equity Warrant Agent with
respect to this Agreement shall be addressed to Mellon Investor Services LLC, 520 Pike Street, Suite 1220, Seattle, WA 98101, Attention: Tom Cooper; any communications from the Equity Warrant Agent to
the Company with respect to this Agreement shall be addressed to InterActiveCorp, 152 West 57th Street, New York, NY 10019, Attention: General Counsel; or such other addresses as shall
be specified in writing by the Equity Warrant Agent or by the Company. 

        Section 8.4    Governing Law.    This Agreement and the Equity Warrants shall be governed by the laws of the
State of New York applicable to contracts made and to be performed entirely within such state. 

        Section 8.5    Governmental Approvals.    The Company will from time to time use all reasonable efforts to
obtain and keep effective any and all permits, consents and approvals of governmental agencies and authorities and the national securities exchange on which the Equity Warrants may be listed or
authorized for trading from time to time and filings under the United States federal and state laws, which may be or become requisite in connection with the issuance, sale, trading, transfer or
delivery of the Equity Warrants, and the exercise of the Equity Warrants. The Equity Warrant Agent shall have no responsibility or liability to inquire as to whether the Company has filled its
obligations under this Section 8.5, or to perform any such obligations whatsoever. 

        Section 8.6    Reservation of Shares of Common Stock.    The Company covenants that it will at all times
reserve and keep available, free from preemptive rights (other than such rights as do not affect the ownership of shares issued to a Holder), out of the aggregate of its authorized but unissued shares
of Common Stock or its issued shares of Common Stock held in its treasury, or both, for the purpose of effecting exercises of Equity Warrants, the full number of shares of Common Stock deliverable
upon the exercise of all outstanding Equity Warrants not theretofore exercised and on or before taking any action that would cause an adjustment resulting in an increase in the number of shares of
Common Stock deliverable upon exercise above the number thereof previously reserved and available therefor, the Company shall take all such action so required. For purposes of this Section 8.6,
the number of shares of Common Stock which shall be deliverable upon the exercise of all outstanding Equity Warrants shall be computed as if at the time of computation all outstanding Equity Warrants
were held by a single holder. Before taking any action which would cause an adjustment reducing the price per share of Common Stock issued upon exercise of the Equity Warrants below the then par value
(if any) of such shares of Common Stock, the Company shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue
fully paid and nonassessable shares of Common Stock at such Exercise Price. 

        Section 8.7    Covenant Regarding Shares of Common Stock.    All shares of Common Stock which may be delivered
upon exercise of the Equity Warrants will upon delivery be duly and validly issued and fully paid and nonassessable, free of all liens and charges and not subject to any preemptive rights (other than
rights which do not affect the Holder's right to own the shares of Common Stock to be issued), and prior to the Exercise Date the Company shall take any corporate action necessary therefor. The
issuance of all such shares of
Common Stock shall, to the extent permitted by law, be registered under the Securities Act of 1933, as amended. 

        Section 8.8    Persons Having Rights Under Agreement.    Nothing in this Agreement expressed or implied and
nothing that may be inferred from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any Person other than the Company, the Equity Warrant Agent and the
Holders any 

13

 

right,
remedy or claim under or by reason of this Agreement or of any covenant, condition, stipulation, promise or agreement hereof, and all covenants, conditions, stipulations, promises and
agreements in this Agreement contained shall be for the sole and exclusive benefit of the Company and the Equity Warrant Agent and their successors and of the Holders of Equity Warrant Certificates. 

        Section 8.9    Delivery of Prospectus.    The Company will furnish to the Equity Warrant Agent sufficient
copies of a prospectus or prospectuses relating to the Common Stock deliverable upon exercise of any outstanding Equity Warrants (each a "Prospectus"),
and the Equity Warrant Agent agrees to deliver to the Holder of the Equity Warrant, prior to or concurrently with the delivery of the Common Stock issued upon the exercise thereof, a copy of the
Prospectus relating to such Common Stock. 

        Section 8.10    Headings.    The descriptive headings of the several Articles and Sections and the Table of
Contents of this Agreement are for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 

        Section 8.11    Counterparts.    This Agreement may be executed by the parties hereto in any number of
counterparts, each of which when so executed and delivered shall be deemed to be an original; but all such counterparts shall together constitute but one and the same instrument. 

        Section 8.12    Inspection of Agreement.    A copy of this Agreement shall be available at all reasonable times
at the office of the Equity Warrant Agent, for inspection by the Holders of Equity Warrants. 

[Remainder
of page left intentionally blank] 

14

   
        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, all as of the day and year first above written. 

	 	 	InterActiveCorp
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
Mellon Investor Services LLC,

as Equity Warrant Agent
	

 	
 	

By:	

    
 Name:

Title:	
 	

 

15

   EXHIBIT A  

SPECIMEN  

	 	 	CUSIP
	FACE
	No. W         	 	Equity Warrants                

EQUITY WARRANT CERTIFICATE  

 INTERACTIVECORP  

        This Warrant Certificate certifies that                        ,
or registered assigns, is the registered Holder of Equity Warrants (the "Equity Warrants") to purchase
Common Stock, par value $0.01 per share, of InterActiveCorp, a Delaware corporation (formerly known as USA Interactive, the "Company"). Each Equity Warrant entitles the Holder to purchase from the
Company 1.93875 fully paid and nonassessable shares of Common Stock, par value $0.01 per share, of the Company ("Common Stock") at any time on or before 5:00 p.m. New York City time
February 4, 2009, at the exercise price (the "Exercise Price")
of $26.00 payable in lawful money of the United States of America upon surrender of this Equity Warrant Certificate and payment of the Exercise Price at the office or agency of the Warrant Agent, upon
such conditions set forth herein and in the Stockholder Equity Warrant Agreement (as hereinafter defined). Payment of the Exercise Price must be made in lawful money of the United States of America,
in cash or by certified check or bank draft or bank wire transfer payable to the order of the Company. The number of Shares which may be purchasable upon exercise of the Equity Warrants is subject to
adjustment upon the occurrence of certain events set forth in the Stockholder Equity Warrant Agreement. No fractional shares or scrip representing fractions of shares of Common Stock shall be issued
upon exercise of the Equity Warrants. 

        By
acceptance of this Equity Warrant Certificate, each Holder agrees to be bound by the terms of the Stockholder Equity Warrant Agreement. 

        Reference
is hereby made to the further provisions of this Equity Warrant Certificate set forth on the reverse hereof and such further provisions shall for all purposes have the same
effect as though fully set forth at this place. Capitalized defined terms used herein have the same meaning as in the Stockholder Equity Warrant Agreement. 

        This
Equity Warrant Certificate shall not be valid unless countersigned by the Equity Warrant Agent, as such term is used in the Stockholder Equity Warrant Agreement. 

16

 

        IN
WITNESS WHEREOF, InterActiveCorp has caused this Equity Warrant Certificate to be duly executed under its corporate seal. 

	 	 	 	 	INTERACTIVECORP
	 	 	 	 	 	 	 
	 	 	 	 	By:	 	
 Name:

Title:
	 	 	 	 	 	 	 
	Attest:	 	 	 	 
	 	 	 	 	 	 	 
	
	 	 	 	 
	 	 	 	 	 	 	 
	Countersigned:	 	 	 	 
	MELLON INVESTOR SERVICES LLC,

as Equity Warrant Agent	 	 	 	 
	 	 	 	 	 	 	 
	By:	 	
 Authorized Signature

Name: Thomas L. Cooper

Title: Assistant Vice President

	 	 	 	 

17

  

REVERSE  

 EQUITY WARRANT CERTIFICATE  

 INTERACTIVECORP  

        The Equity Warrants evidenced by this Equity Warrant Certificate are part of a duly authorized issue of Equity Warrants issued pursuant to a Stockholder Equity
Warrant Agreement dated as of [Date], 2003 (the "Stockholder Equity Warrant Agreement"), duly executed and delivered by the Company to Mellon Investor Services LLC, a New
Jersey limited liability company, as Equity Warrant Agent (the "Equity Warrant Agent"), which Stockholder Equity Warrant Agreement is hereby incorporated by reference in and made a part of this
instrument and is hereby referred to for a description of the rights, limitation of rights, obligations, duties and immunities thereunder of the Equity Warrant Agent, the Company and the Holders (the
words "Holders" or "Holder" meaning the registered Holders or registered Holder) of the Equity Warrants. 

        Equity
Warrants may be exercised to purchase shares of Common Stock of the Company, par value $0.01 per share ("Common Stock") subject to such terms and conditions as are set forth in
the Stockholder Equity Warrant Agreement at any time on or before 5:00 p.m. New York City time on February 4, 2009, at the Exercise Price set forth on the face hereof. The Holder of
Equity Warrants evidenced by this Equity Warrant Certificate may exercise them by surrendering the Equity Warrant Certificate, with the form of election to purchase set forth hereon properly completed
and executed, together with payment of the Exercise Price at the office of the Equity Warrant Agent. In the event that upon any exercise of Equity Warrants evidenced hereby the number of Equity
Warrants exercised shall be less than the total number of Equity Warrants evidenced hereby, there shall be issued to the Holder hereof or his assignee a new Equity Warrant Certificate evidencing the
number of Equity Warrants not exercised. Nothing contained in the Stockholder Equity Warrant Agreement or in this Equity Warrant Certificate shall be construed as conferring upon the Holders thereof
the right to vote, to receive dividends or other distributions, to exercise any preemptive right or to consent or to receive notice as stockholders in respect of meetings of stockholders for the
election of Directors of the Company or any other matter, or any other rights whatsoever as stockholders of the Company. 

        The
Stockholder Equity Warrant Agreement provides that upon the occurrence of certain events, the number of shares of Common Stock issuable upon exercise of an Equity Warrant may,
subject to certain conditions, be adjusted. 

        Equity
Warrant Certificates, when surrendered at the office of the Equity Warrant Agent by the registered Holder thereof in person or by a legal representative duly authorized in writing
or by registered mail, return receipt requested, may be exchanged, in the manner and subject to the limitations provided in the Shareholder Equity Warrant Agreement, but without payment of any service
charge, for another Equity Warrant Certificate or Equity Warrant Certificates of like tenor evidencing in the aggregate a like number of Equity Warrants and registered in the name of such registered
Holder. 

        Upon
due presentment for registration of transfer of this Equity Warrant Certificate at the office of the Equity Warrant Agent or by registered mail, return receipt requested, a new
Equity Warrant Certificate or Equity Warrant Certificates of like tenor and evidencing in the aggregate a like number of Equity Warrants shall be issued to the transferee(s) in exchange for this
Equity Warrant Certificate, subject to the limitations provided in the Stockholder Equity Warrant Agreement, without charge except for any transfer, stamp or other similar tax or other governmental
charge imposed in connection therewith. 

        The
Company and the Equity Warrant Agent may deem and treat the registered Holder(s) hereof as the absolute owner(s) of this Equity Warrant Certificate (notwithstanding any notation of
ownership or other writing hereon made by anyone), for the purpose of any exercise hereof, and of any distribution to the Holder(s) hereof, and for all other purposes, and neither the Company nor the
Equity Warrant Agent shall be affected by any notice (other than a duly presented registration of transfer in accordance with the previous paragraph) to the contrary and shall not be bound to
recognize any equitable or other claim to or interest in such Equity Warrant on the part of any other person. 

18

 
INTERACTIVECORP

ELECTION TO PURCHASE  

INTERACTIVECORP

152 West 57th Street

New York, NY 10019 

        The
undersigned hereby irrevocably elects to exercise the right of purchase represented by this Equity Warrant Certificate for    Equity Warrants, and to purchase thereunder
the shares of Common Stock
(the "Shares") provided for therein, and requests that certificates for the Shares be issued in the name of: 

(Please
Print Name, Address and Social Security Number) 

If
said number of Equity Warrants to be exercised shall not be all of the Equity Warrants evidenced by this Equity Warrant Certificate, the undersigned requests that a new Equity Warrant Certificate
for the balance of the Equity Warrants be registered in the name of the undersigned or his Assignee as below indicated and delivered to the address stated below: 

Dated:
                    , 200   

	

Name of Equity Warrant Holder or Assignee (Please Print):	
 	

 
	 	 	

	 	 	 
	

Address:	
 	

	

Signature:	
 	

(Signature must conform to name of Holder as specified on the face of the Equity Warrant Certificate)

	
Signature Guaranteed:	
 	

 Signature of Guarantor

19

 
ASSIGNMENT  

 (To be executed by the registered Holder

if such Holder desires to transfer

Equity Warrants.)  

        FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto 

(Print name and address of transferee) 

                    
Equity Warrants, evidenced by this Equity Warrant Certificate, together with all right, title and interest therein, and does hereby
irrevocably constitute and appoint                          Attorney, to transfer the within Equity Warrant Certificate on
the books of the Company, with full power of
substitution. If said number of Equity Warrants to be transferred shall not be all of the Equity Warrants evidenced by this Equity Warrant Certificate, the assignor and assignee agree that such
Attorney shall submit this Equity Warrant Certificate to the Company and request that New Equity Warrant Certificates for the
applicable number of Equity Warrants be registered in the names of the undersigned as below indicated and delivered to the addresses below: 

	Dated:	 	Signature:
	 	 	 
	 	 	 
	
	 	

	(Insert Social Security or Identifying Number of Assignee)

	 	(Signature must conform to name of holder as specified on the face of the Equity Warrant Certificate)
	 	 	 
	 	 	 
	Address of Assignor (if necessary):	 	

	 	 	 
	 	 	 
	Address of Assignee (if necessary):	 	

	 	 	 
	 	 	 
	Signature Guaranteed:	 	 
	 	 	 
	 	 	 
	
 Signature of Guarantor	 	 

20

 
EXHIBIT B  

 
 

INTERACTIVECORP
  
  NOTICE OF PURCHASE    
    

INTERACTIVECORP

152 West 57th Street

New York, NY 10019 

        The
undersigned hereby irrevocably elects to exercise the right to purchase                          shares of the common stock,
 par value $0.01 per share, of
InterActiveCorp ("Common Stock") pursuant to the terms of the Stockholder Equity Warrant Agreement (the "Stockholder Equity Warrant Agreement"), dated as of [Date], 2003, duly
executed and delivered by InterActiveCorp, a Delaware corporation (the "Company"), to Mellon Investor Services LLC, a New Jersey limited liability company, as Equity Warrant Agent, which Stockholder
Equity Warrant Agreement is hereby incorporated by reference and made a part of this instrument and is hereby referred to for a description of the rights, limitation of rights, obligations, duties and
immunities thereunder of the Equity Warrant Agent, the Company and the Holders (as defined in the Stockholder Equity Warrant Agreement) of the Equity Warrants (as defined in the Stockholder Equity
Warrant Agreement), and tenders herewith payment of the purchase price in full, together with all applicable transfer, stamp or similar taxes, if any. 

        Please
issue a certificate or certificates representing the shares of Common Stock indicated above in the name of the undersigned or in such other name as is specified below: 

(Please
Print Name, Address and Social Security Number) 

        Dated:
                        , 200   

	 	Name of Equity Warrant Holder (Please Print):	 
	 	 	

	 	Address:	 
	 	 	

	

 	

Signature:	

 
	 	 	

21

QuickLinks

TABLE OF CONTENTS

Article 1. Definitions

Article 2. Issuance of Equity Warrants and Execution and Delivery of Equity Warrant Certificates

Article 3. Duration and Exercise of Equity Warrants

Article 4. Adjustments of Number of Shares

Article 5. Other Provisions Relating to Rights of Holders of Equity Warrants

Article 6. Exchange and Transfer of Equity Warrants

Article 7. Concerning the Equity Warrant Agent

Article 8. Miscellaneous

INTERACTIVECORP NOTICE OF PURCHASE

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