Document:

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                                                                    EXHIBIT 10.3

                        HOTEL RESERVATIONS NETWORK, INC.

                                 2000 STOCK PLAN

                  1. PURPOSES OF THE PLAN. The purposes of this Hotel
Reservations Network, Inc. 2000 Stock Plan are: to attract and retain the best
available personnel for positions of substantial responsibility, to provide
additional incentive to Employees, Directors and Consultants, and to promote the
success of the Company's business. Options granted under the Plan may be
Incentive Stock Options or Nonstatutory Stock Options, as determined by the
Administrator at the time of grant. Stock Purchase Rights may also be granted
under the Plan.

                  2. DEFINITIONS. As used herein, the following definitions
shall apply:

                           (a)      "ADMINISTRATOR" means the Board or any of
its Committees as shall be administering the Plan, in accordance with Section 4
of the Plan.

                           (b)      "APPLICABLE LAWS" means the requirements
relating to the administration of stock option plans under U.S. state corporate
laws, U.S. federal and state securities laws, the Code, any stock exchange or
quotation system on which the Common Stock is listed or quoted and the
applicable laws of any foreign country or jurisdiction where Options or Stock
Purchase Rights are, or will be, granted under the Plan.

                           (c)      "BOARD" means the Board of Directors of the
Company.

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                                                                               2

                           (d)      "CAUSE" means termination of an Optionee's
employment by the Company for such reasons as may be defined as "Cause" in any
applicable employment agreement, or, if an Optionee is not party to a valid
employment agreement at the time of his or her termination, shall mean (i) the
plea of guilty or nolo contendere to, or conviction for, the commission of a
felony offense by an Optionee, (ii) a material breach by an Optionee of a
fiduciary duty owed to the Company or any of its subsidiaries; (iii) a breach by
an Optionee of any non-disclosure, non-solicitation or non-competition
obligation owed to the Company or any of its subsidiaries; (iv) the willful or
gross neglect by an Optionee of his or her employment duties; and (v) such other
events as shall be determined by the Board or the Committee.

                           (e)      "CODE" means the Internal Revenue Code of
1986, as amended.

                           (f)      "COMMITTEE" means a committee of Directors
appointed by the Board in accordance with Section 4 of the Plan.

                           (g)      "COMMON STOCK" means the Class A Common
Stock of the Company.

                           (h)      "COMPANY" means Hotel Reservations Network,
Inc., a Delaware corporation.

                           (i)      "CONSULTANT" means any person, including an
advisor, engaged by the Company or a Parent or Subsidiary to render services to
such entity.
                           (j)      "DIRECTOR" means a member of the Board.

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                                                                               3

                           (k)      "DISABILITY" means total and permanent
disability as defined in Section 22(e)(3) of the Code.

                           (l)      "EMPLOYEE" means any person, including
Officers and Directors, employed by the Company or any Parent or Subsidiary or
other affiliate of the Company. A Service Provider shall not cease to be an
Employee in the case of (i) any leave of absence approved by the Company or (ii)
transfers between locations of the Company or between the Company, its Parent,
any Subsidiary, or any successor. For purposes of Incentive Stock Options, no
such leave may exceed ninety days, unless reemployment upon expiration of such
leave is guaranteed by statute or contract. If reemployment upon expiration of a
leave of absence approved by the Company is not so guaranteed, on the 181st day
of such leave any Incentive Stock Option held by the Optionee shall cease to be
treated as an Incentive Stock Option and shall be treated for tax purposes as a
Nonstatutory Stock Option. Neither service as a Director nor payment of a
director's fee by the Company shall be sufficient to constitute "employment" by
the Company.

                           (m)      "EXCHANGE ACT" means the Securities Exchange
Act of 1934, as amended.

                           (n)      "FAIR MARKET VALUE" means, as of any date,
the value of Common Stock determined as follows:

                                    (i)      If the Common Stock is listed on
         any established stock exchange or a national market system, including
         without limitation the Nasdaq National Market or The Nasdaq SmallCap
         Market of The Nasdaq Stock

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                                                                               4

         Market, its Fair Market Value shall be the closing sales price for
         such stock (or the closing bid, if no sales were reported) as quoted
         on such exchange or system for the last market trading day prior to
         the day of determination, as reported in The Wall Street Journal or
         such other source as the Administrator deems reliable;

                                    (ii)     If the Common Stock is regularly
         quoted by a recognized securities dealer but selling prices are not
         reported, the Fair Market Value of a Share of Common Stock shall be
         the mean between the high bid and low asked prices for the Common
         Stock on the last market trading day prior to the day of
         determination, as reported in The Wall Street Journal or such other
         source as the Administrator deems reliable; or

                                    (iii)    In the absence of an established
         market for the Common Stock, the Fair Market Value shall be determined
         in good faith by the Administrator.

                           (o)      "INCENTIVE STOCK OPTION" means an Option
intended to qualify as an incentive stock option within the meaning of Section
422 of the Code and the regulations promulgated thereunder.

                           (p)      "NONSTATUTORY STOCK OPTION" means an Option
not intended to qualify as an Incentive Stock Option.

                           (q)      "NOTICE OF GRANT" means a written or
electronic notice evidencing certain terms and conditions of an individual
Option or Stock Purchase Right grant. The Notice of Grant is part of the Option
Agreement.

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                                                                               5

                           (r)      "OFFICER" means a person who is an officer
of the Company within the meaning of Section 16 of the Exchange Act and the
rules and regulations promulgated thereunder.

                           (s)      "OPTION" means a stock option granted
pursuant to the Plan.

                           (t)      "OPTION AGREEMENT" means an agreement
between the Company and an Optionee evidencing the terms and conditions of an
individual Option grant. The Option Agreement is subject to the terms and
conditions of the Plan.

                           (u)      "OPTION EXCHANGE PROGRAM" means a program
whereby outstanding Options are surrendered in exchange for Options with a lower
exercise price.

                           (v)      "OPTIONED STOCK" means the Common Stock
subject to an Option or Stock Purchase Right.

                           (w)      "OPTIONEE" means the holder of an
outstanding Option or Stock Purchase Right granted under the Plan.

                           (x)      "PARENT" means a "parent corporation,"
whether now or hereafter existing, as defined in Section 424(e) of the Code.

                           (y)      "PLAN" means this 2000 Stock Plan.

                           (z)      "RESTRICTED STOCK" means shares of Common
Stock acquired pursuant to a grant of Stock Purchase Rights under Section 11 of
the Plan.

                           (aa)     "RESTRICTED STOCK PURCHASE AGREEMENT" means
a written agreement between the Company and the Optionee evidencing the terms
and

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restrictions applying to stock purchased under a Stock Purchase Right. The
Restricted Stock Purchase Agreement is subject to the terms and conditions of
the Plan and the Notice of Grant.

                           (bb)     "RULE 16b-3" means Rule 16b-3 of the
Exchange Act or any successor to Rule 16b-3, as in effect when discretion is
being exercised with respect to the Plan.

                           (cc)     "SECTION 16(b)" means Section 16(b) of the
Exchange Act.

                           (dd)     "SERVICE PROVIDER" means an Employee,
Director or Consultant.

                           (ee)     "SHARE" means a share of the Common Stock,
as adjusted in accordance with Section 13 of the Plan.

                           (ff)     "STOCK PURCHASE RIGHT" means the right to
purchase Common Stock pursuant to Section 11 of the Plan, as evidenced by a
Notice of Grant.

                           (gg)     "SUBSIDIARY" means a "subsidiary
corporation," whether now or hereafter existing, as defined in Section 424(f) of
the Code.

                  3. STOCK SUBJECT TO THE PLAN. Subject to the provisions of
Section 13 of the Plan, the maximum aggregate number of Shares which may be
optioned and sold under the Plan is 5,400,000 Shares. The Shares may be
authorized, but unissued, or reacquired Common Stock.

                  If an Option or Stock Purchase Right expires or becomes
unexercisable without having been exercised in full, or is surrendered pursuant
to an Option Exchange Program, the unpurchased Shares which were subject thereto
shall become

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available for future grant or sale under the Plan (unless the Plan has
terminated); PROVIDED, HOWEVER, that Shares that have actually been issued under
the Plan, whether upon exercise of an Option or Right, shall not be returned to
the Plan and shall not become available for future distribution under the Plan,
except that if Shares of Restricted Stock are repurchased by the Company at
their original purchase price, such Shares shall become available for future
grant under the Plan.

                  4. ADMINISTRATION OF THE PLAN.

                           (a)      PROCEDURE- IN GENERAL. The Plan shall be
administered by(i) the Committee, which shall be comprised of not less than two
directors appointed by the Board, each of whom is intended to be a "Non-Employee
Director" (within the meaning of Rule 16b-3) and an "outside director" (within
the meaning of Code Section 162(m)) to the extent that Rule 16b-3 and Code
Section 162(m), respectively are applicable to the Company and to Options and
Stock Purchase Rights granted under the Plan; or (ii) if at any time such a
committee has not been so designated by the Board, the Board.

                           (b)      SPECIAL PRE-IPO RULE.  If deemed necessary
or advisable by the Company for purposes of complying with Section 162(m) of the
Code, with respect to Options granted prior to the initial public offering of
the stock of the Company, which shall occur no later than April 30, 2000, all
such Options shall be granted and approved by:

                                    (i)     the Performance-Based Compensation
Committee of USA Networks, Inc.;

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                                    (ii)    the Compensation Committee of the
Company (whether or not then-comprised of qualifying "outside directors" under
ss. 162(m) of the Code), and

                                    (iii) the full Board of the Company.
Notwithstanding any of the above provisions, no Options may be granted by any
committee other than one complying with Section 4(a) of this Plan after the IPO
is effective.

                           (c)      POWERS OF THE ADMINISTRATOR.  Subject to the
provisions of the Plan, and in the case of a Committee, subject to the specific
duties delegated by the Board to such Committee, the Administrator shall have
the authority, in its discretion:

                                    (i)     to determine the Fair Market Value;

                                    (ii)    to select the Service Providers to
         whom Options and Stock Purchase Rights may be granted hereunder;

                                    (iii)   to determine the number of shares of

         Common Stock to be covered by each Option and Stock Purchase Right
         granted hereunder;

                                    (iv)    to approve forms of agreement for

         use under the Plan;

                                    (v)     to determine the terms and
         conditions, not inconsistent with the terms of the Plan, of any Option
         or Stock Purchase Right granted hereunder. Such terms and conditions
         include, but are not limited to, the exercise price, the time or times
         when Options or Stock Purchase Rights

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                                                                               9

         may be exercised (which may be based on performance criteria), any
         vesting acceleration or waiver of forfeiture restrictions, and any
         restriction or limitation regarding any Option or Stock Purchase Right
         or the shares of Common Stock relating thereto, based in each case on
         such factors as the Administrator, in its sole discretion, shall
         determine;

                                    (vi)    to reduce the exercise price of any
         Option or Stock Purchase Right to the then current Fair Market Value
         if the Fair Market Value of the Common Stock covered by such Option or
         Stock Purchase Right shall have declined since the date the Option or
         Stock Purchase Right was granted;

                                    (vii)   to institute an Option Exchange
         Program;

                                    (viii)  to construe and interpret
         the terms of the Plan and awards granted pursuant to the Plan;

                                    (ix)    to prescribe, amend and rescind
         rules and regulations relating to the Plan, including rules and
         regulations relating to sub-plans established for the purpose of
         qualifying for preferred tax treatment under foreign tax laws;

                                    (x)     to modify or amend each Option or
         Stock Purchase Right (subject to Section 15(c) of the Plan), including
         the discretionary authority to extend the post-termination
         exercisability period of Options longer than is otherwise provided for
         in the Plan;

                                    (xi)    to allow Optionees to satisfy
         withholding tax obligations by electing to have the Company withhold
         from the Shares to be

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                                                                              10

         issued upon exercise of an Option or Stock Purchase Right that number
         of Shares having a Fair Market Value equal to the amount required to
         be withheld. The Fair Market Value of the Shares to be withheld shall
         be determined on the date that the amount of tax to be withheld is to
         be determined. All elections by an Optionee to have Shares withheld
         for this purpose shall be made in such form and under such conditions
         as the Administrator may deem necessary or advisable;

                                    (xii)   to authorize any person to execute
         on behalf of the Company any instrument required to effect the grant
         of an Option or Stock Purchase Right previously granted by the
         Administrator;

                                    (xiii)  to make all other determinations
         deemed necessary or advisable for administering the Plan.

                           (d)      EFFECT OF ADMINISTRATOR'S DECISION.  The
Administrator's decisions, determinations and interpretations shall be final and
binding on all Optionees and any other holders of Options or Stock Purchase
Rights.

                  5. ELIGIBILITY. Nonstatutory Stock Options and Stock Purchase
Rights may be granted to Service Providers. Incentive Stock Options may be
granted only to Employees.

                     Except as may specifically be provided by the
Administrator from time to time with respect to specific Service Providers or
specific Employees, in order to be eligible to receive any stock options
under the Plan, a Service Provider must agree not to solicit employees of the
Company and not to reveal confidential information of the Company, and an
Employee must agree to similar provisions as well as a non-competition
provision. The terms, conditions, and provisions relating to these
non-solicitation, confidentiality and non-competition provisions shall be
determined by the Administrator.

                  6. LIMITATIONS.

                           (a)      Each Option shall be designated in the
Option Agreement as either an Incentive Stock Option or a Nonstatutory Stock
Option. However, notwithstanding such designation, to the extent that the
aggregate Fair Market Value of

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the Shares with respect to which Incentive Stock Options are exercisable for
the first time by the Optionee during any calendar year (under all plans of the
Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be
treated as Nonstatutory Stock Options. For purposes of this Section 6(a),
Incentive Stock Options shall be taken into account in the order in which they
were granted. The Fair Market Value of the Shares shall be determined as of the
time the Option with respect to such Shares is granted.

                           (b)      Neither the Plan nor any Option or Stock
Purchase Right shall confer upon an Optionee any right with respect to
continuing the Optionee's relationship as a Service Provider with the Company,
nor shall they interfere in any way with the Optionee's right or the Company's
right to terminate such relationship at any time, with or without cause.

                           (c)      The following limitations shall apply to
grants of Options:

                                    (i)     No Service Provider shall be
         granted, during the life of this Plan, Options to purchase more than
         80% of the Shares authorized for issuance hereunder.

                                    (ii) The foregoing limitations shall be
         adjusted proportionately in connection with any change in the
         Company's capitalization as described in Section 13.

                                    (iii) If an Option is canceled in the same
         fiscal year of the Company in which it was granted (other than in
         connection with a transaction described in Section 13), the canceled
         Option will be counted against

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                                                                              12

         the limits set forth in subsections (i) and (ii) above. For this
         purpose, if the exercise price of an Option is reduced, the
         transaction will be treated as a cancellation of the Option and the
         grant of a new Option.

                  7. TERM OF PLAN. Subject to Section 19 of the Plan, the Plan
shall become effective upon its adoption by the Board. It shall continue in
effect for a term of ten (10) years unless terminated earlier under Section 15
of the Plan.

                  8. TERM OF OPTION. The term of each Option shall be stated in
the Option Agreement. In the case of an Incentive Stock Option, the term shall
be ten (10) years from the date of grant or such shorter term as may be provided
in the Option Agreement. Moreover, in the case of an Incentive Stock Option
granted to an Optionee who, at the time the Incentive Stock Option is granted,
owns stock representing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
term of the Incentive Stock Option shall be five (5) years from the date of
grant or such shorter term as may be provided in the Option Agreement.

                  9. OPTION EXERCISE PRICE AND CONSIDERATION.

                           (a)      EXERCISE PRICE.  The per share exercise
price for the Shares to be issued pursuant to exercise of an Option shall be
determined by the Administrator, subject to the following:

                                    (i)     In the case of an Incentive Stock
         Option

                                            (A)      granted to an Employee who,
         at the time the Incentive Stock Option is granted, owns stock
         representing more than ten

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                                                                              13

         percent (10%) of the voting power of all classes of stock of the
         Company or any Parent or Subsidiary, the per Share exercise price
         shall be no less than 110% of the Fair Market Value per Share on the
         date of grant.

                                            (B)      granted to any Employee
         other than an Employee described in paragraph (A) immediately above,
         the per Share exercise price shall be no less than 100% of the Fair
         Market Value per Share on the date of grant.

                                    (ii)    In the case of a Nonstatutory Stock
         Option, the per Share exercise price shall be determined by the
         Administrator. In the case of a Nonstatutory Stock Option intended to
         qualify as "performance-based compensation" within the meaning of
         Section 162(m) of the Code, the per Share exercise price shall be no
         less than 100% of the Fair Market Value per Share on the date of
         grant.

                                    (iii)   Notwithstanding the foregoing,
         Options may be granted with a per Share exercise price of less than
         100% of the Fair Market Value per Share on the date of grant pursuant
         to a merger or other corporate transaction.

                           (b)      WAITING PERIOD AND EXERCISE DATES.  At the
time an Option is granted, the Administrator shall fix the period within which
the Option may be exercised and shall determine any conditions which must be
satisfied before the Option may be exercised.

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                                                                              14

                           (c)      FORM OF CONSIDERATION.  The Administrator
shall determine the acceptable form of consideration for exercising an Option,
including the method of payment. In the case of an Incentive Stock Option, the
Administrator shall determine the acceptable form of consideration at the time
of grant. Such consideration may consist entirely of:

                                    (i)     cash;

                                    (ii)    check;

                                    (iii)   promissory note;

                                    (iv)    other Shares which (A) in the case
         of Shares acquired upon exercise of an option, have been owned by the
         Optionee for more than six months on the date of surrender or which
         were acquired in the open market, and (B) have a Fair Market Value on
         the date of surrender equal to the aggregate exercise price of the
         Shares as to which said Option shall be exercised;

                                    (v)     consideration received by the
         Company under a cashless exercise program implemented by the Company
         in connection with the Plan;

                                    (vi)    any combination of the foregoing
         methods of payment; or

                                    (vii)   such other consideration and method
         of payment for the issuance of Shares to the extent permitted by
         Applicable Laws.

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                                                                              15

                  10. EXERCISE OF OPTION.

                           (a)      PROCEDURE FOR EXERCISE; RIGHTS AS A
STOCKHOLDER. Any Option granted hereunder shall be exercisable according to the
terms of the Plan and at such times and under such conditions as determined by
the Administrator and set forth in the Option Agreement. Unless the
Administrator provides otherwise, vesting of Options granted hereunder shall be
tolled during any unpaid leave of absence. An Option may not be exercised for a
fraction of a Share.

                           An Option shall be deemed exercised when the Company
receives: (i) written or electronic notice of exercise (in accordance with the
Option Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive dividends or any other rights as a stockholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option.
The Company shall issue (or cause to be issued) such Shares promptly after the
Option is exercised. No adjustment will be made for a dividend or other right
for which the record date is prior to the date the Shares are issued, except as
provided in Section 13 of the Plan.

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                           Exercising an Option in any manner shall decrease the
number of Shares thereafter available, both for purposes of the Plan and for
sale under the Option, by the number of Shares as to which the Option is
exercised.

                           (b)      TERMINATION OF RELATIONSHIP AS A SERVICE
PROVIDER. If an Optionee ceases to be a Service Provider, other than upon the
Optionee's death or Disability, the Optionee may exercise his or her Option
within such period of time as is specified in the Option Agreement to the extent
that the Option is vested on the date of termination (but in no event later than
the expiration of the term of such Option as set forth in the Option Agreement).
In the absence of a specified time in the Option Agreement, the Option shall
remain exercisable for 90 days following the Optionee's termination, unless such
termination is for "Cause", in which case the Option will immediately terminate
and expire. If, on the date of termination, the Optionee is not vested as to his
or her entire Option, the Shares covered by the unvested portion of the Option
shall revert to the Plan. If, after termination, the Optionee does not exercise
his or her Option within the time specified by the Administrator, the Option
shall terminate, and the Shares covered by such Option shall revert to the Plan.

                           (c)      DISABILITY OF OPTIONEE.  If an Optionee
ceases to be a Service Provider as a result of the Optionee's Disability, the
Optionee may exercise his or her Option within such period of time as is
specified in the Option Agreement to the extent the Option is vested on the date
of termination (but in no event later than the expiration of the term of such
Option as set forth in the Option Agreement). In the absence of a specified time
in the Option Agreement, the Option shall remain

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                                                                              17

exercisable for twelve (12) months following the Optionee's termination. If, on
the date of termination, the Optionee is not vested as to his or her entire
Option, the Shares covered by the unvested portion of the Option shall revert to
the Plan. If, after termination, the Optionee does not exercise his or her
Option within the time specified herein, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan.

                           (d)      DEATH OF OPTIONEE.  If an Optionee dies
while a Service Provider, the Option may be exercised within such period of time
as is specified in the Option Agreement (but in no event later than the
expiration of the term of such Option as set forth in the Notice of Grant), by
the Optionee's estate or by a person who acquires the right to exercise the
Option by bequest or inheritance, but only to the extent that the Option is
vested on the date of death. In the absence of a specified time in the Option
Agreement, the Option shall remain exercisable for twelve (12) months following
the Optionee's termination. If, at the time of death, the Optionee is not vested
as to his or her entire Option, the Shares covered by the unvested portion of
the Option shall immediately revert to the Plan. The Option may be exercised by
the executor or administrator of the Optionee's estate or, if none, by the
person(s) entitled to exercise the Option under the Optionee's will or the laws
of descent or distribution. If the Option is not so exercised within the time
specified herein, the Option shall terminate, and the Shares covered by such
Option shall revert to the Plan.

                           (e)      BUYOUT PROVISIONS.  The Administrator may at
any time offer to buy out for a payment in cash or Shares an Option previously
granted based on

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                                                                              18

such terms and conditions as the Administrator shall establish and communicate
to the Optionee at the time that such offer is made.

                  11. STOCK PURCHASE RIGHTS.

                           (a)      RIGHTS TO PURCHASE.  Stock Purchase Rights
may be issued either alone, in addition to, or in tandem with other awards
granted under the Plan and/or cash awards made outside of the Plan. After the
Administrator determines that it will offer Stock Purchase Rights under the
Plan, it shall advise the offeree in writing or electronically, by means of a
Notice of Grant, of the terms, conditions and restrictions related to the offer,
including the number of Shares that the offeree shall be entitled to purchase,
the price to be paid, and the time within which the offeree must accept such
offer. The offer shall be accepted by execution of a Restricted Stock Purchase
Agreement in the form determined by the Administrator.

                           (b)      REPURCHASE OPTION.  Unless the Administrator
determines otherwise, the Restricted Stock Purchase Agreement shall grant the
Company a repurchase option exercisable upon the voluntary or involuntary
termination of the purchaser's service with the Company for any reason
(including death or Disability). The purchase price for Shares repurchased
pursuant to the Restricted Stock Purchase Agreement shall be the original price
paid by the purchaser and may be paid by cancellation of any indebtedness of the
purchaser to the Company. The repurchase option shall lapse at a rate determined
by the Administrator.

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                           (c)      OTHER PROVISIONS.  The Restricted Stock
Purchase Agreement shall contain such other terms, provisions and conditions not
inconsistent with the Plan as may be determined by the Administrator in its sole
discretion.

                           (d)      RIGHTS AS A STOCKHOLDER.  Once the Stock
Purchase Right is exercised, the purchaser shall have the rights equivalent to
those of a stockholder, and shall be a stockholder when his or her purchase is
entered upon the records of the duly authorized transfer agent of the Company.
No adjustment will be made for a dividend or other right for which the record
date is prior to the date the Stock Purchase Right is exercised, except as
provided in Section 13 of the Plan.

                  12. NON-TRANSFERABILITY OF OPTIONS AND STOCK PURCHASE RIGHTS.
Unless determined otherwise by the Administrator, an Option or Stock Purchase
Right may not be sold, pledged, assigned, hypothecated, transferred, or disposed
of in any manner other than by will or by the laws of descent or distribution
and may be exercised, during the lifetime of the Optionee, only by the Optionee.
If the Administrator makes an Option or Stock Purchase Right transferable, such
Option or Stock Purchase Right shall contain such additional terms and
conditions as the Administrator deems appropriate.

                  13. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, DISSOLUTION,
MERGER OR ASSET SALE.

                           (a)      CHANGES IN CAPITALIZATION.  Subject to any
required action by the stockholders of the Company, the number of shares of
Common Stock covered by each outstanding Option and Stock Purchase Right, and
the number of shares of

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                                                                              20

Common Stock which have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, as well as the price per share of Common Stock covered by each
such outstanding Option or Stock Purchase Right, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued shares of Common Stock effected without receipt
of consideration by the Company; PROVIDED, HOWEVER, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Option or Stock
Purchase Right.

                           (b)      DISSOLUTION OR LIQUIDATION.  In the event of
the proposed dissolution or liquidation of the Company, the Administrator shall
notify each Optionee as soon as practicable prior to the effective date of such
proposed transaction. The Administrator in its discretion may provide for an
Optionee to have the right to exercise his or her Option until ten (10) days
prior to such transaction as to all of the

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Optioned Stock covered thereby, including Shares as to which the Option would
not otherwise be exercisable. In addition, the Administrator may provide that
any Company repurchase option applicable to any Shares purchased upon exercise
of an Option or Stock Purchase Right shall lapse as to all such Shares, provided
the proposed dissolution or liquidation takes place at the time and in the
manner contemplated. To the extent it has not been previously exercised, an
Option or Stock Purchase Right will terminate immediately prior to the
consummation of such proposed action.

                           (c)      MERGER OR ASSET SALE.  In the event of a
merger of the Company with or into another corporation, or the sale of
substantially all of the assets of the Company, each outstanding Option and
Stock Purchase Right shall be assumed or an equivalent option or right
substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation. In the event that the successor corporation refuses to
assume or substitute for the Option or Stock Purchase Right, the Optionee shall
fully vest in and have the right to exercise the Option or Stock Purchase Right
as to all of the Optioned Stock, including Shares as to which it would not
otherwise be vested or exercisable. If an Option or Stock Purchase Right becomes
fully vested and exercisable in lieu of assumption or substitution in the event
of a merger or sale of assets, the Administrator shall notify the Optionee in
writing or electronically that the Option or Stock Purchase Right shall be fully
vested and exercisable for a period of fifteen (15) days from the date of such
notice, and the Option or Stock Purchase Right shall terminate upon the
expiration of such period. For the purposes of this paragraph, the Option or
Stock Purchase Right shall be considered assumed if, following the

<PAGE>
                                                                              22

merger or sale of assets, the option or right confers the right to purchase or
receive, for each Share of Optioned Stock subject to the Option or Stock
Purchase Right immediately prior to the merger or sale of assets, the
consideration (whether stock, cash, or other securities or property) received in
the merger or sale of assets by holders of Common Stock for each Share held on
the effective date of the transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of
the outstanding Shares); PROVIDED, HOWEVER, that if such consideration received
in the merger or sale of assets is not solely common stock of the successor
corporation or its Parent, the Administrator may, with the consent of the
successor corporation, provide for the consideration to be received upon the
exercise of the Option or Stock Purchase Right, for each Share of Optioned Stock
subject to the Option or Stock Purchase Right, to be solely common stock of the
successor corporation or its Parent equal in fair market value to the per share
consideration received by holders of Common Stock in the merger or sale of
assets.

                  14. DATE OF GRANT. The date of grant of an Option or Stock
Purchase Right shall be, for all purposes, the date on which the Administrator
makes the determination granting such Option or Stock Purchase Right, or such
other later date as is determined by the Administrator. Notice of the
determination shall be provided to each Optionee within a reasonable time after
the date of such grant.

                  15. AMENDMENT AND TERMINATION OF THE PLAN.

                           (a)      AMENDMENT AND TERMINATION.  The Board may at
any time amend, alter, suspend or terminate the Plan.

<PAGE>
                                                                              23

                           (b)      STOCKHOLDER APPROVAL.  The Company shall
obtain stockholder approval of any Plan amendment to the extent necessary and
desirable to comply with Applicable Laws.

                           (c)      EFFECT OF AMENDMENT OR TERMINATION.  No
amendment, alteration, suspension or termination of the Plan shall impair the
rights of any Optionee, unless mutually agreed otherwise between the Optionee
and the Company, which agreement must be in writing and signed by the Optionee
and the Company. Termination of the Plan shall not affect the Administrator's
ability to exercise the powers granted to it hereunder with respect to Options
granted under the Plan prior to the date of such termination.

                  16. CONDITIONS UPON ISSUANCE OF SHARES.

                           (a)      LEGAL COMPLIANCE.  Shares shall not be
issued pursuant to the exercise of an Option or Stock Purchase Right unless the
exercise of such Option or Stock Purchase Right and the issuance and delivery of
such Shares shall comply with Applicable Laws and shall be further subject to
the approval of counsel for the Company with respect to such compliance.

                           (b)      INVESTMENT REPRESENTATIONS.  As a condition
to the exercise of an Option or Stock Purchase Right, the Company may require
the person exercising such Option or Stock Purchase Right to represent and
warrant at the time of any such exercise that the Shares are being purchased
only for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation is
required.

<PAGE>
                                                                              24

                  17. INABILITY TO OBTAIN AUTHORITY. The inability of the
Company to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.

                  18. RESERVATION OF SHARES. The Company, during the term of
this Plan, will at all times reserve and keep available such number of Shares as
shall be sufficient to satisfy the requirements of the Plan.

                  19. STOCKHOLDER APPROVAL. The Plan shall be subject to
approval by the stockholders of the Company within twelve (12) months after the
date the Plan is adopted. Such stockholder approval shall be obtained in the
manner and to the degree required under Applicable Laws.

                  20. GOVERNING LAW. The terms of this Plan shall be governed by
the Laws of the State of Delaware without reference to principles of conflict of
laws, as applied to contracts executed in and performed wholly within the State
of Delaware.<PAGE>

                                                                    EXHIBIT 10.4

                        HOTEL RESERVATIONS NETWORK, INC.
                          DIRECTORS' STOCK OPTION PLAN
                          (Effective February __, 2000)

SECTION 1.                  PURPOSES OF THE PLAN

         The Hotel Reservations Network, Inc. Directors Stock Option Plan (the
"Plan") is intended to enable Hotel Reservations Network, Inc. (the "Company")
to attract and retain persons of outstanding competence to serve as members of
the Board of Directors of the Company and to provide a direct link between
Directors' compensation and stockholder value.

SECTION 2.                 ADMINISTRATION OF THE PLAN

         A. COMMITTEE -- The Plan shall be administered by the
Compensation/Benefits Committee of the Board of Directors of the Company (the
"Committee"), which shall consist of not less than two members of the Board of
Directors, each of whom shall be a "disinterested person" as that term is used
in Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). Grants of stock options ("Options") to eligible participants
under the Plan and the amount, nature and timing of the grants shall be
automatically determined as described in Sections 4 and 5 and shall not be
subject to the determination of the Committee.

         B. AUTHORITY OF THE COMMITTEE -- Subject to certain specific
limitations and restrictions set forth in the Plan, the Committee shall have
full and final authority to interpret the Plan; to prescribe, amend and rescind
rules and regulations, if any, relating to the Plan; and to make all
determinations necessary or advisable for the administration of the Plan. No
member of the Committee shall be liable for anything done or omitted to be done
by him or by any other member of the Committee in connection with the Plan,
except for his own willful misconduct or gross negligence. All decisions which
are made by the Committee with respect to interpretation of the terms of the
Plan and with respect to any questions or disputes arising under the Plan shall
be final and binding on the Company and the participants, their heirs or
beneficiaries. The Committee shall not be empowered to take any action, whether
or not otherwise authorized under the Plan, which would result in any Director
failing to qualify as a "disinterested person".

         C. ACTS OF THE COMMITTEE -- A majority of the Committee will constitute
a quorum and the acts of a majority of the members present at any meeting at
which a quorum is

<PAGE>
                                                                               2

present, or acts approved in writing by all members of the Committee without a
meeting, will be the acts of the Committee.

<PAGE>
                                                                               3

SECTION 3.                 STOCK SUBJECT TO THE PLAN

         A. COMMON STOCK -- The stock which is the subject of grants of Options
under the Plan shall be the Company's Common Stock, par value $.01 per share
("Common Stock"), which grants shall be subject to the terms, conditions and
restrictions described in the Plan.

         B. MAXIMUM NUMBER OF SHARES THAT MAY BE GRANTED -- There may be granted
under the Plan an aggregate of not more than 100,000 shares of Common Stock,
subject to adjustment as provided in Section 7 hereof. If any Option expires or
terminates prior to being fully exercised, any shares allocable to the
unexercised portion of such Option shall thereafter be made subject to the terms
of the Plan. Shares of Common Stock granted pursuant to the Plan may be either
authorized, but unissued, shares or reacquired shares, or both.

SECTION 4.                 PARTICIPATION

         A. DIRECTORS -- Participation in the Plan shall be limited to persons
who serve as members of the Board of Directors of the Company and who, at the
time of grant, are not "employees" of the Company and/or any of its affiliates,
within the meaning of the Employee Retirement Income Security Act of 1974
("ERISA"). A Director who is an employee and who retires or resigns from
employment with the Company and/or any of its affiliates, but remains a Director
of the Company, shall become eligible to participate in the Plan at the time of
such termination of employment.

         B. GRANTS -- Each Director shall receive upon initial election to
office and thereafter annually on the date of the Company's Annual Meeting of
Stockholders at which such Director is re-elected to office (provided such date
is at least 12 months following such Director's initial election to office) (in
each case, the "Grant Date") an Option to acquire 5,000 shares of Common Stock
at a price equal to the Fair Market Value of the shares of Common Stock subject
to such Option on the trading day immediately preceding the Grant Date. "Fair
Market Value" means the mean of the highest and lowest sale price for the Common
Stock as reported on any securities exchange on which the Common Stock is listed
or the mean of the highest and lowest bid price on the National Association of
Securities Dealers, Inc. Automated Quotation System ("NASDAQ"); or if the Common
Stock is not so reported or listed, as determined in good faith by the Board of
Directors.

<PAGE>
                                                                               4

SECTION 5.                 TERMS AND CONDITIONS OF STOCK GRANTS

         A. VESTING -- Except as provided in paragraph D of this Section V, the
Options shall vest and become exercisable as follows: with respect to 1,667
shares of Common Stock, on each of the first two anniversaries of the Grant
Date; and with respect to the remaining 1,666 shares of Common Stock, on the
third anniversary of the Grant Date. Except as provided by the Board of
Directors or the Committee at the time of grant or thereafter, in the event a
Director's service to the Company terminates before the Options have vested, the
any Option granted to such Director which has not vested shall be cancelled with
the Director having no further right or interest in such forfeited Option.

         B. EXERCISE PERIOD -- Each Option shall remain outstanding until the
tenth anniversary of the Grant Date. Except as provided by the Board of
Directors or the Committee at the time of grant or thereafter, in the event a
Director's service to the Company terminates, any vested Option then held by a
Director shall be cancelled 120 days after such termination of service.

         C. RESTRICTIONS ON TRANSFER -- An Option may not be assigned,
transferred, pledged, hypothecated or otherwise disposed of, except by will or
the laws of descent or distribution.

         D. CHANGE OF CONTROL -- Upon a Change of Control, all Options that have
not previously become exercisable or been terminated shall become exercisable.

For purposes of the Plan, a "Change of Control" shall mean the occurrence of any
of the following:

                  (a) The acquisition by any individual, entity or group (within
         the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act), other
         than Barry Diller, Liberty Media Corporation and their respective
         affiliates (within the meaning of Rule 12b-2 promulgated under the
         Exchange Act) (a "Person") of beneficial ownership (within the meaning
         of Rule 13d-3 promulgated under the Exchange Act) of equity securities
         of the Company representing a majority of the voting power of the then
         outstanding equity securities of the Company entitled to vote generally
         in the election of directors (the "Outstanding Company Voting
         Securities"); provided, however, that for purposes of this subsection
         (a), the following acquisitions shall not constitute a Change of
         Control: (i) any acquisition by the Company, (ii) any acquisition by
         any employee benefit plan (or related trust) sponsored or maintained by
         the Company or any corporation controlled by the Company, or (iii) any
         acquisition by any corporation pursuant to a transaction which complies
         with clauses (i) and (ii) of subsection (b); or

<PAGE>
                                                                               5

                  (b) Consummation of a reorganization, merger or consolidation
         or sale or other disposition of all or substantially all of the assets
         of the Company (a "Business Combination"), in each case, unless,
         following such Business Combination, (i) all or substantially all of
         the individuals and entities who were the beneficial owners of the
         Outstanding Company Voting Securities immediately prior to such
         Business Combination beneficially own, directly or indirectly, more
         than 50% of the then outstanding combined voting power of the then
         outstanding voting securities entitled to vote generally in the
         election of directors of the corporation resulting from such Business
         Combination (including, without limitation, a corporation which as a
         result of such transaction owns the Company or all or substantially all
         of the Company's assets either directly or through one or more
         subsidiaries) in substantially the same proportions as their ownership,
         immediately prior to such Business Combination of the Outstanding
         Company Voting Securities, and (ii) no Person (excluding any employee
         benefit plan (or related trust) of the Company or such corporation
         resulting from such Business Combination) beneficially owns, directly
         or indirectly, 30% or more of the combined voting power of the then
         outstanding voting securities of such corporation except to the extent
         that such ownership existed prior to the Business Combination; or

                  (c) Approval by the stockholders of the Company of a complete
         liquidation or dissolution of the Company.

         E. Cash-Out Rights -- During the 60-day period from and after a Change
of Control (the "Exercise Period"), a Director shall have the right (the
"LSAR"), in lieu of the payment of the exercise price of the shares of Common
Stock being purchased under the Option and by giving notice to the Company, to
elect (within the Exercise Period) to surrender all or part of the Option to the
Company and to receive in cash, within 10 days of such notice, an amount equal
to the amount by which the Change of Control Price per share shall exceed the
exercise price per share of Common Stock under the Option multiplied by the
number of shares of Common Stock granted under the Option; provided, however,
that if the Change of Control is within six months of the Grant Date no such
election shall be made by such Director with respect to such Option prior to six
months from the Grant Date. "Change of Control Price" shall mean the higher of
(i) the highest reported sales price, regular way, of a share of Common Stock in
any transaction reported on the New York Stock Exchange Composite Tape or other
national exchange on which such shares are listed or on NASDAQ during the 60-day
period prior to and including the date of a Change of Control or (ii) if the
Change of Control is the result of a tender or exchange offer or a Business
Combination, the highest price per share of Common Stock paid in such tender or
exchange offer or Business Combination; provided, however, that in the case of
an Option which was granted within six months of the Change of Control, the
Change of Control Price for such Option shall be the

<PAGE>
                                                                               6

Fair Market Value of the Common Stock on the date such Option is exercised or
deemed exercised. To the extent that the consideration paid in any such
transaction described above consists all or in part of securities or other
non-cash consideration, the value of such securities or other non-cash
consideration shall be determined in the sole discretion of the Board.

SECTION 6.                COMPLIANCE WITH LAW AND OTHER CONDITIONS

         A. RESTRICTIONS UPON COMMON STOCK -- The listing upon a stock exchange
or the registration or qualification under any federal or state law of any
shares of Common Stock subject to Options pursuant to the Plan may be necessary
or desirable as a condition of, or in connection with, such grant and, in any
such event, delivery of the certificates for such shares of Common Stock shall,
if the Committee, in its sole discretion, shall determine, not be made until
such listing, registration or qualification shall have been completed.

         B. RESTRICTIONS UPON RESALE OF UNREGISTERED STOCK -- If the issuances
of the shares of Common Stock upon exercise of an Option are not registered
under the Securities Act of 1933, as amended, pursuant to an effective
registration statement, such Director, if the Committee shall deem it advisable,
may be required to represent and agree in writing:

         (i) that any shares of Common Stock acquired by such Director pursuant
         to the Plan will not be sold, except pursuant to an effective
         registration statement under the Securities Act of 1933, as amended, or
         pursuant to an exemption from registration under such Act, and

         (ii) that such Director is acquiring such shares of Common Stock for
         his own account and not with a view to the distribution thereof.

SECTION 7.                 ADJUSTMENTS

         The number of shares of Common Stock of the Company reserved for grants
under the Plan shall be subject to appropriate adjustment by the Committee, as
necessary, to reflect any stock split, stock dividend, recapitalization,
reclassification, merger, consolidation, reorganization, combination or exchange
of shares or similar event.

SECTION 8.                 MISCELLANEOUS PROVISIONS

         A. Nothing in the Plan shall be construed to give any Director of the
Company any right to a grant of an Option under the Plan unless all conditions
described within the Plan are met as determined in the sole discretion of the
Committee.

<PAGE>
                                                                               7

         B. Neither the Plan, nor the granting of an Option nor any other action
taken pursuant to the Plan, shall constitute or be evidence of any agreement or
understanding, express or implied, that the Company will retain a Director for
any period of time. Nothing in the Plan shall in any manner be construed to
limit in any way the right of the Company or its stockholders to reelect or not
reelect or renominate or not renominate a participating Director.

         C. The costs and expenses of administering the Plan shall be borne by
the Company and not charged to any grant of an Option nor to any participating
Director.

         D. The Company may make such provisions and take such steps as it may
deem necessary or appropriate for the withholding of any taxes which the Company
is required by any law or regulation of any governmental authority, whether
federal, state or local, to withhold in connection with any event or action
under the Plan.

SECTION 9.                 TERM, AMENDMENT AND TERMINATION

         A. The Plan will terminate on February 21, 2010. Under the Plan,
Options outstanding as of February 21, 2010 shall not be affected or impaired by
the termination of the Plan.

         B. The Board may amend, alter, or discontinue the Plan, but no
amendment, alteration or discontinuation shall be made which would (i) impair
the rights of an optionee under an Option theretofore granted without the
optionee's consent, except such an amendment made to cause the Plan to qualify
for the exemption provided by Rule 16b-3, as promulgated by the Securities and
Exchange Commissioner any successor agency under Section 16(b) of the Exchange
Act, as amended from time to time ("Rule 16b-3"), or (ii) disqualify the Plan
from the exemption provided by Rule 16b-3. In addition, no such amendment shall
be made without the approval of the Company's stockholders to the extent such
approval is required by law or agreement.

         C. Subject to the above provisions, the Board shall have authority to
amend the Plan to take into account changes in law and tax and accounting rules,
as well as other developments and to grant Awards which qualify for beneficial
treatment under such rules without stockholder approval.

         D. No amendment to Sections 4 or 5 of the Plan may be made more than
once every six months, other than to comport with changes in the Internal
Revenue Code, ERISA, or the rules thereunder.

SECTION 10.                    GOVERNING LAW

<PAGE>
                                                                               8

         The Plan and all determinations made and actions taken pursuant thereto
shall be governed by the laws of the State of Delaware and construed
accordingly.

SECTION 11.                    APPROVAL BY STOCKHOLDERS

         The Plan shall become effective only upon approval by the stockholders
of the Company.

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