Document:

Exhibit 10.4

                     

Opening Transaction

	
  To:

  	
   

  	
  priceline.com Incorporated 

  
	
   

  	
   

  	
  800 Connecticut Avenue 

  
	
   

  	
   

  	
  Norwalk, Connecticut 06854

  
	
   

  	
   

  	
   

  
	
  A/C:

  	
   

  	
  066213118

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Merrill Lynch International

  
	
   

  	
   

  	
   

  
	
  Re:

  	
   

  	
  Issuer Capped Share Call Option Transaction (5-Year)

  
	
   

  	
   

  	
   

  
	
  Ref. No:

  	
   

  	
  06818735

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  September 21, 2006

  

 

 

 

Dear Sir(s):

The purpose of this
communication (this “Confirmation”) is to
set forth the terms and conditions of the above-referenced transaction entered
into on the Trade Date specified below (the “Transaction”)
between Merrill Lynch International (“Dealer”), Merrill Lynch, Pierce,
Fenner & Smith Incorporated (“Agent”)
and priceline.com Incorporated (“Counterparty”). 
This communication constitutes a “Confirmation”
as referred to in the ISDA Master Agreement specified below.

1.     This Confirmation is subject to, and
incorporates, the definitions and provisions of the 2000 ISDA Definitions
(including the Annex thereto) (the “2000 Definitions”)
and the definitions and provisions of the 2002 ISDA Equity Derivatives
Definitions (the “Equity Definitions”,
and together with the 2000 Definitions, the “Definitions”),
in each case as published by the International Swaps and Derivatives
Association, Inc. (“ISDA”).  In the event of any inconsistency between the
2000 Definitions and the Equity Definitions, the Equity Definitions will
govern.

Each party is hereby
advised, and each such party acknowledges, that the other party has engaged in,
or refrained from engaging in, substantial financial transactions and has taken
other material actions in reliance upon the parties’ entry into the Transaction
to which this Confirmation relates on the terms and conditions set forth below.

This Confirmation
evidences a complete and binding agreement between Dealer and Counterparty as
to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall be subject to an
agreement (the “Agreement”) in the form of the 1992 ISDA Master
Agreement as if Dealer and Counterparty had executed an agreement in such form
on the date hereof (but without any Schedule except for (i) the election
of Loss and Second Method, New York law (without regard to the conflicts of law
principles) as the governing law and US Dollars (“USD”)
as the Termination Currency, (ii) the election that subparagraph (ii)
of Section 2(c) will not apply to Transactions and (iii) the election
that the “Cross Default” provisions of Section 5(a)(vi) will apply to
Counterparty with a “Threshold Amount” of USD 50 million).  The parties hereby agree that no Transactions
other than the Transaction to which this Confirmation relates and the other
transaction between the parties with the same trade date regarding options on
Shares expiring in 2013 (the “Other Transaction”) shall be governed by
the Agreement.

All provisions contained
in, or incorporated by reference to, the Agreement will govern this
Confirmation except as expressly modified herein.  In the event of any inconsistency between
this Confirmation and the Definitions or the Agreement, as the case may be,
this Confirmation shall govern.

 1
 

 

 

2.     This Transaction constitutes a Share Option
Transaction for purposes of the Equity Definitions.  The terms of the particular Transaction to
which this Confirmation relates are as follows:

General Terms:

	
  

  	
  Trade Date:

  	
   

  	
  September 21, 2006

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Components:

  	
   

  	
  The Transaction will be divided into individual
  Components, each with the terms set forth in this Confirmation, and, in
  particular, with the Number of Options and Expiration Date set forth in this
  Confirmation. The payments and deliveries to be made upon settlement of the
  Transaction will be determined separately for each Component as if each
  Component were a separate Transaction under the Agreement.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Option Style:

  	
   

  	
  European

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Option Type:

  	
   

  	
  Call

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Seller:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Buyer:

  	
   

  	
  Counterparty

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Shares:

  	
   

  	
  Common Stock (par value $0.008 per Share) of
  Counterparty (Ticker: “PCLN”)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of Options:

  	
   

  	
  For each Component, as provided in Annex A to this
  Confirmation.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Option Entitlement:

  	
   

  	
  One Share per Option

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Strike Price 1:

  	
   

  	
  40.38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Strike Price 2:

  	
   

  	
  50.47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Premium:

  	
   

  	
  USD 4,792,500

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Premium Payment Date:

  	
   

  	
  September 27, 2006

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exchange:

  	
   

  	
  NASDAQ Global Select Market

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Related Exchange

  	
   

  	
  All Exchanges

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Procedures for Exercise:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Expiration Time:

  	
   

  	
  Valuation Time

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Expiration Date:

  	
   

  	
  As provided in Annex A to this Confirmation (or, if
  such date is not a Scheduled Trading Day, the next following Scheduled
  Trading Day that is not already an Expiration Date for another Component); provided that, notwithstanding anything to the
  contrary in the Equity Definitions, if that date is a Disrupted Day, the
  Calculation Agent may determine that the Expiration Date for such Component
  is a Disrupted Day in whole or in part, in which case the Calculation Agent
  shall, in its discretion, determine the number of Options for which such day
  shall be the Expiration Date and (i) allocate the remaining Options for such
  Expiration Date to one or more of the remaining Expiration Dates, (ii)
  designate the 

  

 

 2
 

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  first succeeding
  Scheduled Trading Day that is not a Disrupted Day and is not or is not deemed
  to be an Expiration Date in respect of any other Component of the Transaction
  hereunder as the Expiration Date for such remaining Options, or (iii) a
  combination thereof; provided further  that if the Expiration Date for a
  Component (including any portion of a Component whose Expiration Date was
  postponed as a result of clause (ii) or (iii) above) has not occurred as of
  the Final Disruption Date, (a) the Final Disruption Date shall be deemed to
  be the Expiration Date and Valuation Date for each such Component, and (b)
  the Calculation Agent shall determine the VWAP Price on the basis of its good
  faith estimate of the trading value for the relevant Shares. Section
  6.6 of the Equity Definitions shall not apply to any Valuation Date occurring
  on an Expiration Date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Final Disruption Date:

  	
   

  	
  October 28, 2011

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Market Disruption Event:

  	
   

  	
  Section 6.3(a) of the Equity Definitions is hereby
  amended by deleting the words “during the one hour period that ends at the
  relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or
  Knock-out Valuation Time, as the case may be,” in clause (ii) thereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Automatic Exercise:

  	
   

  	
  Applicable; and means that the Number of Options for
  the corresponding Expiration Date will be deemed to be automatically
  exercised at the Expiration Time on such Expiration Date if at such time such
  Options are In-the-Money, as determined by the Calculation Agent, unless
  Buyer notifies Seller (by telephone or in writing) prior to the Expiration
  Time on such Expiration Date that it does not wish Automatic Exercise to
  occur, in which case Automatic Exercise will not apply to such Expiration
  Date. “In-the-Money” means that the VWAP Price is greater than Strike
  Price 1.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Seller’s Telephone Number

  	
   

  	
   

  
	
   

  	
  and Telex and/or Facsimile Number

  	
   

  	
   

  
	
   

  	
  and Contact Details for purpose of 

  	
   

  	
   

  
	
   

  	
  Giving Notice:

  	
   

  	
  To be provided by Dealer.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Settlement Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  In
  respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Settlement Currency:

  	
   

  	
  USD

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Settlement Method:

  	
   

  	
  Net Share Settlement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Settlement Date:

  	
   

  	
  For all Components, the Settlement Date shall be the
  third Scheduled Trading Day after the final Expiration Date (or, in respect
  of all or part of its obligation to deliver the Number of Shares to be
  Delivered, such other earlier date or dates (or, if Section 14 below is
  applicable, such later dates) as the Dealer shall determine in its sole
  discretion).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Net Share Settlement:

  	
   

  	
  On the Settlement Date, Dealer shall deliver to
  Counterparty a number of Shares equal to the sum of the Number of Shares to
  be Delivered for all Components to the account specified by 

  

 

 3
 

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Counterparty and cash in lieu of any fractional
  shares for any Component valued at the VWAP Price on the Expiration Date for
  such Component.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of Shares to be Delivered:

  	
   

  	
  In respect of any Exercise Date for any Component,
  subject to the last sentence of Section 9.5 of the Equity Definitions:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (i) if the VWAP Price for such Component exceeds
  Strike Price 1 but is less than Strike Price 2, a number of Shares equal to
  (i) the product of (A) the excess of such VWAP Price over Strike Price 1, (B)
  the Number of Options for such Component and (C) the Option Entitlement, divided by (ii) such VWAP Price;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (ii) if the VWAP Price for such Component equals or
  exceeds Strike Price 2, a number of Shares equal to (i) the product of (A)
  the excess of Strike Price 2 over Strike Price 1, (B) the Number of Options
  for such Component and (C) the Option Entitlement, divided by (ii) such VWAP Price; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (iii) if the VWAP Price for such Component is less
  than or equal to Strike Price 1, a number of Shares equal to zero.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  VWAP Price:

  	
   

  	
  For any Expiration Date, as determined by the
  Calculation Agent based on the NASDAQ Volume Weighted Average Price per share
  of the Shares for the regular trading session (including any extensions
  thereof) of the Exchange on such Expiration Date (without regard to pre-open
  or after hours trading outside of such regular trading session) as published
  by Bloomberg at or around 4:15 p.m. New York time on such date, on Bloomberg
  page “PCLN.Q <Equity> AQR_SEC” (or any successor thereto).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Other Applicable Provisions:

  	
   

  	
  The provisions of Sections 9.1(c), 9.8, 9.9, 9.10,
  9.11 and 9.12 of the Equity Definitions will be applicable, except that all
  references in such provisions to “Physical Settlement” shall be read as
  references to “Net Share Settlement”; provided that the Representation and Agreement
  contained in Section 9.11 of the Equity Definitions shall be modified by
  excluding any representations therein relating to restrictions, obligations,
  limitations or requirements under applicable securities laws as a result of
  the fact that Buyer is the issuer of any Shares.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Share Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Method of Adjustment:

  	
   

  	
  Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Extraordinary Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  New Shares:

  	
   

  	
  In the definition of “New Shares” in Section 12.1(i)
  of the Equity Definitions, the text in subsection (i) shall be deleted in its
  entirety and replaced with: “publicly quoted, traded or listed on any of the
  New York Stock Exchange, the American Stock Exchange, the NASDAQ Global
  Select Market or the NASDAQ Global Market (or their respective successors)”.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Consequences of Merger Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Share-for-Share:

  	
   

  	
  Calculation Agent Adjustment

  

 

 4
 

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Share-for-Other:

  	
   

  	
  Cancellation and Payment (Agreed Model) on that
  portion of the Other Consideration that consists of cash; Calculation Agent
  Adjustment on the remainder of the Other Consideration.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Share-for-Combined:

  	
   

  	
  Component Adjustment

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Stock Loan Rate:

  	
   

  	
  USD-LIBOR-BBA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tender Offer:

  	
   

  	
  Applicable; provided
  that (a) Section 12.1(d) of the Equity Definitions is hereby amended by
  adding “, or of the outstanding Shares,” before “of the Issuer” in the fourth
  line thereof and (b) Sections 12.1(e) and 12.1(l)(ii) of the Equity
  Definitions are hereby amended by adding “or Shares, as applicable,” after
  “voting shares”.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Consequences of Tender Offers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Share-for-Share:

  	
   

  	
  Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Share-for-Other:

  	
   

  	
  Cancellation and Payment (Agreed Model) on that
  portion of the Other Consideration that consists of cash; Calculation Agent
  Adjustment on the remainder of the Other Consideration.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Share-for-Combined:

  	
   

  	
  Component Adjustment

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Stock Loan Rate:

  	
   

  	
  USD-LIBOR-BBA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nationalization, Insolvency or Delisting:

  	
   

  	
  Cancellation and Payment (Agreed Model); provided that in addition to the
  provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also
  constitute a Delisting if the Exchange is located in the United States and
  the Shares are not immediately re-listed, re-traded or re-quoted on any of
  the New York Stock Exchange, the American Stock Exchange, the NASDAQ Global
  Select Market or the NASDAQ Global Market (or their respective successors);
  if the Shares are immediately re-listed, re-traded or re-quoted on any such
  exchange or quotation system, such exchange or quotation system shall be
  deemed to be the Exchange.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Stock Loan Rate:

  	
   

  	
  USD-LIBOR-BBA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Additional Disruption Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Change in Law:

  	
   

  	
  Applicable; provided
  that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by
  adding “other than increased cost due to Securities Act registration
  requirements relating to sales by Dealer of the Shares acquired by Dealer for
  the purpose of hedging its obligations pursuant to the Transaction” after the
  parenthetical in the last line thereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Failure to Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Insolvency Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  Hedging Disruption:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Hedging Party:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Determining Party:

  	
   

  	
  Dealer

  

 

 5
 

 

 

 

	
  

  	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Agreements and Acknowledgements

  	
   

  	
   

  
	
   

  	
  Regarding Hedging Activities:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Additional Acknowledgements:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dealer Payment Instructions:

  	
   

  	
  To be provided by Dealer.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Counterparty Payment and Delivery Instructions:

  	
   

  	
  To be provided by Counterparty.

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

3.        Calculation
Agent:  Dealer

4.        Offices:

(a)                                  The
Office of Dealer for this Transaction is: Merrill Lynch Financial Centre, 2
King Edward Street London EC1A 1HQ.

(b)                                 The
Office of Counterparty for this Transaction is: 800 Connecticut Avenue, Norwalk,
Connecticut 06854.

5.        Notices:  For
purposes of this Confirmation:

	
  (a)

  	
  Address for notices or communications to
  Counterparty:

  
	
   

  	
   

  	
   

  
	
  

  	
  To:

  	
  priceline.com Incorporated

  
	
   

  	
   

  	
  800 Connecticut Avenue

  
	
   

  	
   

  	
  Norwalk, Connecticut 06854

  
	
   

  	
  Attn:

  	
  Robert J. Mylod, Jr.

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
  Telephone:

  	
  (203) 299-8301

  
	
   

  	
  Facsimile:

  	
  (203) 299-8975

  
	
   

  	
  With a copy to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attn:

  	
  Peter J. Millones

  
	
   

  	
   

  	
  General Counsel

  
	
   

  	
  Facsimile:

  	
  (203) 299-8915

  
	
   

  	
   

  	
   

  
	
  (b)

  	
  Address for notices or communications to Dealer:

  
	
   

  	
   

  	
   

  
	
   

  	
  To:

  	
  Merrill Lynch International

  
	
   

  	
   

  	
  Merrill Lynch Financial Centre

  
	
   

  	
   

  	
  2 King Edward Street

  
	
   

  	
   

  	
  London EC1A 1HQ

  
	
   

  	
  Attn:

  	
  Manager, Fixed Income Settlements

  
	
   

  	
  Telephone:

  	
  44 207 995 2004

  
	
   

  	
  Facsimile:

  	
  44 207 995 3769

  

 

6.        Representations, Warranties and Agreements:

(a)      In addition to the representations and
warranties in the Agreement and those contained elsewhere herein, Counterparty
represents and warrants to and for the benefit of, and agrees with, Dealer as
follows:

(i)            On the Trade Date,
(A) none of Counterparty and its officers and directors is aware of any
material nonpublic information regarding Counterparty or the Shares and (B) all
reports and other documents filed by Counterparty with the Securities and
Exchange Commission pursuant to the Securities Exchange Act of

 6
 

 

 

1934, as amended (the “Exchange Act”), when
considered as a whole (with the more recent such reports and documents deemed
to amend inconsistent statements contained in any earlier such reports and
documents), do not contain any untrue statement of a material fact or any
omission of a material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances in which they were
made, not misleading.

(ii)           Counterparty
intends that this Transaction qualifies as an equity instrument for it for
purposes of EITF Issue No. 00-19. 
Notwithstanding the foregoing and without limiting the generality of
Section 13.1 of the Equity Definitions, Counterparty acknowledges that neither
Dealer nor any of its affiliates is making any representations or warranties
with respect to the treatment of the Transaction under FASB Statements 128,
133, 149 or 150, EITF Issue No. 00-19 (or any successor issue statements) or
under FASB’s Liabilities & Equity Project.

(iii)          Prior to the Trade
Date, Counterparty shall deliver to Dealer a resolution of Counterparty’s board
of directors authorizing the Transaction and such other certificate or
certificates as Dealer shall reasonably request.  Any repurchases of Shares pursuant to the
Transaction are pursuant to a Share repurchase program publicly announced on or
before the Trade Date.

(iv)          Counterparty has not
received notice that it is the subject of a tender offer made under Section
14(d)(1) of the Exchange Act.

(v)           Counterparty is not
entering into this Confirmation to create actual or apparent trading activity
in the Shares (or any security convertible into or exchangeable for Shares) or
to raise or depress or otherwise manipulate the price of the Shares (or any
security convertible into or exchangeable for Shares) in violation of the
Exchange Act.

(vi)           Counterparty is
not, and after giving effect to the transactions contemplated hereby will not
be, an “investment company” as such term is defined in the Investment Company
Act of 1940, as amended.

(vii)         On the Trade Date
(A) the assets of Counterparty at their fair valuation exceed the liabilities
of Counterparty, including contingent liabilities, (B) the capital of Counterparty
is adequate to conduct the business of Counterparty and (C) Counterparty has
the ability to pay its debts and obligations as such debts mature and does not
intend to, or does not believe that it will, incur debt beyond its ability to
pay as such debts mature.

(viii)        The representations
and warranties of Counterparty set forth in Section 3 of the Agreement and
Section 1 of the Purchase Agreement dated as of the Trade Date between
Counterparty and Dealer as representative of the several purchasers party thereto
(the “Purchase Agreement”), are true and correct and are hereby deemed
to be repeated to Dealer as if set forth herein.

(ix)           (A) On the Trade
Date and during the period starting on the first Expiration Date and ending on
the last Expiration Date (the “Settlement Period”), the Shares or
securities that are convertible into, or exchangeable or exercisable for
Shares, are not, and shall not be, subject to a “restricted period,” as such
term is defined in Regulation M under the Exchange Act (“Regulation M”)
and (B) Counterparty shall not engage in any “distribution,” as such term is
defined in Regulation M, other than a distribution meeting the requirements of
the exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M,
until the second Exchange Business Day immediately following the Trade Date or
the Settlement Period, as the case may be.

(x)            On the Trade Date
and during the Settlement Period, neither Counterparty nor any “affiliate” or “affiliated
purchaser” (each as defined in Rule 10b-18 under the Exchange Act (“Rule
10b-18”)) shall directly or indirectly (including, without limitation, by
means of any cash-settled or other derivative instrument) purchase, offer to
purchase, place any bid or limit order that would effect a purchase of, or
commence any tender offer relating to, any Shares (or an equivalent interest,
including a unit of beneficial interest in a trust or limited partnership or a
depository share) or any security convertible into or exchangeable or
exercisable for Shares.

 7
 

 

 

(xi)           Without the consent
of Dealer, Counterparty agrees (i) during the Designated Period, not to
purchase or agree to purchase Shares if such purchase would cause its
outstanding Shares to be below 36.35 million and (ii) during the Designated
Period, not to purchase or agree to purchase Shares if such purchase along with
all other purchases during the Designated Period would exceed 3.85 million in
the aggregate. The Share numbers in this provision shall be subject to
adjustment as the Calculation Agent determines appropriate to account for any
Potential Adjustment Event or Extraordinary Event. “Designated Period”
means the period from and including the Trade Date to and including the date
that is the 30th Prospectus Useable Day (or such longer number agreed by the
parties) occurring after the 60th day following the Trade Date.  An Exchange Business Day is a Prospectus
Useable Day unless on such day Dealer determines in its good faith discretion
that the Registration Statement and Prospectus referred to in the Underwriting
Agreement dated September 5, 2006 between, among others, Dealer, as
representative of the several underwriters, and Counterparty (the “Underwriting
Agreement”), is not or may not be available for use in compliance with
applicable law.

(b)           Each of Dealer and Counterparty
agrees and represents that it is an “eligible contract participant” as defined
in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

(c)           Each of Dealer and Counterparty
acknowledges that the offer and sale of the Transaction to it is intended to be
exempt from registration under the Securities Act of 1933, as amended (the “Securities
Act”), by virtue of Section 4(2) thereof. 
Accordingly, Counterparty represents and warrants to Dealer that (i) it
has the financial ability to bear the economic risk of its investment in the
Transaction and is able to bear a total loss of its investment and its
investments in and liabilities in respect of the Transaction, which it
understands are not readily marketable, are not disproportionate to its net
worth, and it is able to bear any loss in connection with the Transaction,
including the loss of its entire investment in the Transaction, (ii) it is an “accredited
investor” as that term is defined in Regulation D as promulgated under the
Securities Act, (iii) it is entering into the Transaction for its own account
without a view to the distribution or resale thereof, (iv) the assignment,
transfer or other disposition of the Transaction has not been and will not be
registered under the Securities Act and is restricted under this Confirmation,
the Securities Act and state securities laws, (v) its financial condition is
such that it has no need for liquidity with respect to its investment in the
Transaction and no need to dispose of any portion thereof to satisfy any
existing or contemplated undertaking or indebtedness and is capable of
assessing the merits of and understanding (on its own behalf or through
independent professional advice), and understands and accepts, the terms,
conditions and risks of the Transaction.

(d)           Each of Dealer and Counterparty
agrees and acknowledges (A) that this Confirmation is (i) a “securities
contract,” as such term is defined in Section 741(7) of Title 11 of the United
States Code (the “Bankruptcy Code”), with respect to which each payment
and delivery hereunder is a “settlement payment,” as such term is defined in
Section 741(8) of the Bankruptcy Code, and (ii) a “swap agreement,” as such
term is defined in Section 101(53B) of the Bankruptcy Code, with respect to
which each payment and delivery hereunder is a “transfer,” as such term is
defined in Section 101(54) of the Bankruptcy Code, and (B) that Dealer is
entitled to the protections afforded by, among other sections, Section
362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code.

(e)           Counterparty shall deliver to Dealer
an opinion of counsel, dated as of the Trade Date and reasonably acceptable to
Dealer in form and substance, with respect to the matters set forth in Section
3(a) of the Agreement.

(f)            Each party acknowledges and agrees
to be bound by the Conduct Rules of the National Association of Securities
Dealers, Inc. applicable to transactions in options, and further agrees not to
violate the position and exercise limits set forth therein.

7.     Repurchase Notices.  Counterparty shall, on any day on which
Counterparty effects any repurchase of Shares, promptly give Dealer a written
notice of such repurchase (a “Repurchase Notice”) on such day if
following such repurchase, the Notice Percentage as determined on such day is
greater by 0.5% than the Notice Percentage included in the immediately
preceding Repurchase Notice (or, in the case of the first such Repurchase
Notice, greater than the Notice Percentage as of the date hereof).  In the event that Counterparty fails to
provide Dealer with a Repurchase Notice on the day and in the manner specified
in this Section then Counterparty agrees to indemnify and hold harmless Dealer,
its affiliates and their respective directors, officers, employees, agents and
controlling persons (Dealer and each such person being an “Indemnified Party”)
from and against any and all losses, claims, damages and liabilities (or
actions in respect thereof), joint or several, to which such Indemnified Party
may become subject, under Section 16 of the Exchange Act, relating to or
arising out of such failure.  If for any
reason the foregoing indemnification is unavailable to any 

 

 8
 

 

 

Indemnified Party
or insufficient to hold harmless any Indemnified Party, then Counterparty shall
contribute, to the maximum extent permitted by law, to the amount paid or
payable by the Indemnified Party as a result of such loss, claim, damage or
liability.  In addition, Counterparty
will reimburse any Indemnified Party for all expenses (including reasonable
counsel fees and expenses) as they are incurred (after notice to Counterparty)
in connection with the investigation of, preparation for or defense or
settlement of any pending or threatened claim or any action, suit or proceeding
arising therefrom, whether or not such Indemnified Party is a party thereto and
whether or not such claim, action, suit or proceeding is initiated or brought
by or on behalf of Counterparty.  This
indemnity shall survive the completion of the Transaction contemplated by this
Confirmation and any assignment and delegation of the Transaction made pursuant
to this Confirmation or the Agreement shall inure to the benefit of any
permitted assignee of Dealer.  The “Notice
Percentage” as of any day is the fraction (A) the numerator of which is the
aggregate of the products of the outstanding Number of Options and the Option
Entitlement under this Transaction and the Other Transaction and (B) the
denominator of which is the number of Shares outstanding on such day.

8.     Transfer or Assignment.  Neither party may transfer any of its rights
or obligations under this Transaction without the prior written consent of the
non-transferring party; provided that
Dealer may assign, transfer and set over all rights, title and interest,
powers, privileges and remedies of Dealer under this Transaction, in whole or
in part, to an affiliate of Dealer that is guaranteed by Merrill Lynch &
Co., Inc. without the consent of Counterparty; provided further that
if the Equity Percentage exceeds 7%, Dealer may immediately, in its sole
discretion, transfer or assign a number of Options sufficient to reduce the
Equity Percentage to 6.5% to any third party with (or with a guarantor that
has) a rating for its long-term, unsecured and unsubordinated indebtedness by
Standard & Poor’s Ratings Services or its successor (“S&P”) that is not lower than
the rating by S&P for the long-term, unsecured and unsubordinated
indebtedness of Merrill Lynch & Co., Inc. (“ML Debt”), or by Moody’s
Investors Service, Inc. (“Moody’s”) that is not lower than the rating by
Moody’s for ML Debt or, if either S&P or Moody’s ceases to rate such debt,
at least an equivalent rating or better by a substitute agency rating mutually
agreed by Counterparty and Dealer.  If,
in the discretion of Dealer, Dealer is unable to effect such transfer or
assignment after its commercially reasonable efforts on pricing terms
reasonably acceptable to Dealer, Dealer may designate any Scheduled Trading Day
as an Early Termination Date with respect to a portion (the “Terminated Portion”) of this
Transaction, allocated to Components as Dealer determines in its discretion,
such that the Equity Percentage following such partial termination will be
equal to or less than 7%.  In the event
that Dealer so designates an Early Termination Date with respect to a portion
of this Transaction, a payment shall be made pursuant to Section 6 of the
Agreement as if (i) an Early Termination Date had been designated in respect of
a Transaction having terms identical to this Transaction and a Number of
Options equal to the Terminated Portion, (ii) Counterparty shall be the
Affected Party with respect to such partial termination and (iii) such portion
of this Transaction shall be the only Terminated Transaction.  The “Equity Percentage” as of any day is the fraction (A) the
numerator of which is the number of Shares that Dealer or any of its affiliates
that are subject to aggregation with Dealer beneficially own (within the
meaning of Section 13 of the Exchange Act) on such day and (B) the denominator
of which is the number of Shares outstanding on such day.

9.     Beneficial Ownership.  Notwithstanding anything to the contrary in
the Agreement or this Confirmation, in no event shall Dealer be entitled to
receive, or shall be deemed to receive, any Shares if, upon such receipt of
such Shares, the “beneficial ownership” (within the meaning of Section 13 of
the Exchange Act and the rules promulgated thereunder) of Shares by Dealer or
any of its affiliates that are subject to aggregation with Dealer
(collectively, “Dealer Group”) would be equal to or greater than 9.5% or
more of the outstanding Shares.  If any
delivery owed to Dealer hereunder is not made, in whole or in part, as a result
of this provision, Counterparty’s obligation to make such delivery shall not be
extinguished and Counterparty shall make such delivery as promptly as
practicable after, but in no event later than one Exchange Business Day after,
Dealer gives notice to Counterparty that such delivery would not result in Dealer
Group directly or indirectly so beneficially owning in excess of 9.5% of the
outstanding Shares.

10.   Extension of Settlement.   Dealer may divide any Component into
additional Components and designate the Expiration Date and the Number of
Options for each such Component if Dealer determines, in its reasonable
discretion, that such further division is necessary or advisable to preserve
Dealer’s hedging activity hereunder in light of existing liquidity conditions
or to enable Dealer to effect purchases of Shares in connection with its
hedging activity hereunder in a manner that would, if Dealer were Counterparty
or an affiliated purchaser of Counterparty, be compliance with applicable legal
and regulatory requirements.

 

 9

 

11.   Matters Relating to Agent.

(a)           Agent will be responsible for the
operational aspects of the Transactions effected through it, such as record
keeping, reporting, and confirming Transactions to Counterparty and Dealer.

(b)           Unless
Counterparty is a “major U.S. institutional investor,” as defined in Rule 15a-6
under the Exchange Act, neither Counterparty nor Dealer will contact the other
without the direct involvement of Agent.

(c)           Agent’s
sole role under this Agreement and with respect to any Transaction is as an
agent of Counterparty and Dealer on a disclosed basis and Agent shall have no
responsibility or liability to Counterparty or Dealer hereunder except for
gross negligence or willful misconduct in the performance of its duties as
agent.  Agent is authorized to act as
agent for Dealer, but only to the extent expressly required to satisfy the
requirements of Rule 15a-6 under the Exchange Act in respect of the Transaction
described hereunder.  Agent shall have no
authority to act as agent for Counterparty generally or with respect to
transactions or other matters governed by this Agreement, except to the extent
expressly required to satisfy the requirements of Rule 15a-6 or in accordance
with express instructions from Counterparty.

12.   Equity Rights.  Dealer acknowledges and agrees that this
Confirmation is not intended to convey to it rights with respect to the
Transaction that are senior to the claims of common stockholders in the event
of Counterparty’s bankruptcy.  For the
avoidance of doubt, the parties agree that the preceding sentence shall not
apply at any time other than during Counterparty’s bankruptcy to any claim
arising as a result of a breach by Counterparty of any of its obligations under
this Confirmation or the Agreement.  For
the avoidance of doubt, the parties acknowledge that this Confirmation is not
secured by any collateral that would otherwise secure the obligations of
Counterparty herein under or pursuant to any other agreement.

13.   Alternative Calculations and Payment on
Early Termination and on Certain Extraordinary Events.  If, subject to Section 14 below, Dealer shall
owe Counterparty any amount pursuant to Section 12.2 of the Equity Definitions
and “Consequences of Merger Events” above, or Sections 12.3, 12.6, 12.7 or 12.9
of the Equity Definitions (except in the event of a Tender Offer or a Merger
Event, in each case, in which the consideration or proceeds to be paid to
holders of Shares consists solely of cash) or pursuant to Section 6(d)(ii) of
the Agreement (except in the event of an Event of Default in which Counterparty
is the Defaulting Party or a Termination Event in which Counterparty is the
Affected Party, that resulted from an event or events within Counterparty’s
control) (a “Payment Obligation”), Counterparty shall have the right, in
its sole discretion, to require Dealer to satisfy any such Payment Obligation
by the Share Termination Alternative (as defined below) by giving irrevocable
telephonic notice to Dealer, confirmed in writing within one Scheduled Trading
Day, between the hours of 9:00 A.M. and 4:00 P.M. New York City time on the
Merger Date, Tender Offer Date, Announcement Date, Early Termination Date or
other date of termination, as applicable (“Notice of Share Termination”).  Within a commercially reasonable period of
time following receipt of a Notice of Share Termination, Dealer shall deliver
to Counterparty a number of Share Termination Delivery Units having a cash
value equal to the amount of such Payment Obligation (such number of Share
Termination Delivery Units to be delivered to be determined by the Calculation
Agent as the number of whole Share Termination Delivery Units that could be
purchased over a commercially reasonable period of time with the cash
equivalent of such payment obligation) (the “Share Termination Alternative”).

	
  Share Termination Delivery Unit:

  	
   

  	
  In the case of a
  Termination Event, Event of Default, Delisting or Additional Disruption
  Event, one Share or, in the case of an Insolvency, Nationalization, Merger
  Event or Tender Offer, one Share or a unit consisting of the number or amount
  of each type of property received by a holder of one Share (without
  consideration of any requirement to pay cash or other consideration in lieu
  of fractional amounts of any securities) in such Insolvency, Nationalization,
  Merger Event or Tender Offer. If such Insolvency, Nationalization, Merger
  Event or Tender Offer involves a choice of consideration to be received by
  holders, such holder shall be deemed to have elected to receive the maximum
  possible amount of cash.

  

 

Failure to Deliver:                                                                                                    Applicable

Other applicable provisions:                                        If
Share Termination Alternative is applicable, the provisions of Sections 9.8,
9.9, 9.10, 9.11 and 9.12 of the Equity Definitions will be applicable, except that
all 

 10
 

 

 

references in such provisions to “Physical Settlement”
shall be read as references to “Share Termination Alternative” and all
references to “Shares” shall be read as references to “Share Termination
Delivery Units”; and provided
that the Representation and Agreement contained in Section 9.11 of the Equity
Definitions shall be modified by excluding any representations therein relating
to restrictions, obligations, limitations or requirements under applicable
securities laws as a result of the fact that Buyer is the issuer of any Share
Termination Delivery Units (or any part thereof).

14.   Net
Share Settlement on Early Termination and Certain Extraordinary Events.

(a)           Notwithstanding
Section 6(e) of the Agreement or Sections 12.7 or 12.8 of the Equity
Definitions, if, with respect to the Transaction contemplated hereunder, (A) an
Early Termination Date with respect to any Event of Default or any Termination
Event, (B) a Merger Date with respect to any Merger Event or Tender Offer Date
with respect to a Tender Offer, (C) a Closing Date with respect to an event
described in Section 12.6 of the Equity Definitions, or (D) date as of which
the Transaction is, or is deemed to have been, terminated or cancelled as a
result of an applicable Additional Disruption Event (any such date, the “Relevant
Date”) shall occur, then in lieu of calculating any payments hereunder
pursuant to Section 6(e) of the Agreement or Sections 12.7 or 12.8 of the
Equity Definitions, as applicable, the Calculation Agent, in its sole discretion,
shall determine the amount payable by Dealer to Counterparty on the following
basis:

(i)  such Relevant Date shall be the sole Exercise
Date hereunder and Automatic Exercise shall be applicable to the Number of
Options in each of the Components for which an Expiration Date has not occurred
(the “Unexpired Number”);

(ii)  Dealer shall deliver to the Counterparty the
Net Share Settlement Amount on the Settlement Date with respect to such
Relevant Date; and

(iii)  “Net Share Settlement Amount” shall mean
a number of Shares equal to (A) the Number of Shares to be Delivered (as
defined below) minus (B) the product of (x) the additional Shares per
Option (the “Additional Shares”) determined by reference to the table
attached as Annex B hereto based on the date on which such Relevant Date occurs
and the VWAP Price on such date, (y) the Unexpired Number, and (z) the Option
Entitlement.

(b)           Solely
for purposes of this Section 14, in respect of any Exercise Date deemed to
occur pursuant to paragraph (a) of this Section 14, subject to the last
sentence of Section 9.5 of the Equity Definitions, “Number of Shares to be
Delivered” shall mean, the product of (i) the Unexpired Number, (ii) the
Option Entitlement and (iii) (A) the excess
of the lower of (x) Strike Price 2 and (y) the VWAP Price on the
Valuation Date occurring on such Exercise Date over Strike
Price 1 divided  by
(B) such VWAP Price.  Notwithstanding
anything to the contrary in the Equity Definitions, if there is a Market
Disruption Event on any Valuation Date, then the Calculation Agent shall
determine the VWAP Price for such Valuation Date on the basis of its good faith
estimate, determined in a commercially reasonable manner, of the market value
for the relevant Shares on such Valuation Date.

(c)           With
respect to the determination of Additional Shares, if the actual VWAP Price is
between two VWAP Price amounts in the table or the Relevant Date is between two
Relevant Dates in the table, the Additional Shares shall be determined by a
straight-line interpolation between the number of Additional Shares set forth
for the next higher and next lower VWAP Price amounts and the two nearest
Relevant Dates, as applicable, based on a 365-day year.

(d)           With
respect to any adjustment to the terms of the Transaction, the Calculation
Agent, in its reasonable discretion, shall correspondingly adjust the
Additional Shares and/or the VWAP Prices (each as set forth in the table in
Annex B hereto) as of any date of such adjustments. For the avoidance of doubt,
any adjustment made to the Additional Shares and/or the VWAP Prices (each as
set forth in the table in Annex B hereto) shall be consistent with (i) the
adjustments made pursuant to the provisions of this Section 14 if such
adjustments were the result of an event which was outside of Counterparty’s
control, and (ii) the adjustments made pursuant to the applicable provisions of
this Confirmation if such adjustments were the result of an event which was
within Counterparty’s control.

 11
 

 

 

15.   Set-Off.  The parties agree to amend Section 6 of the
Agreement by adding a new Section 6(f) thereto as follows:

“(f)  Upon the occurrence of an Event of Default or
Termination Event with respect to a party who is the Defaulting Party or the
Affected Party (“X”), the other party (“Y”) will have the right
(but not be obliged) without prior notice to X or any other person to set-off
or apply any obligation of X under an Equity Contract owed to Y (or any
Affiliate of Y) (whether or not matured or contingent and whether or not
arising under the Agreement, and regardless of the currency, place of payment
or booking office of the obligation) against any obligation of Y (or any
Affiliate of Y) under an Equity Contract owed to X (whether or not matured or
contingent and whether or not arising under the Agreement, and regardless of
the currency, place of payment or booking office of the obligation).  Y will give notice to the other party of any
set-off effected under this Section 6(f).

“Equity Contract”
shall mean for purposes of this Section 6(f) any Transaction relating to Shares
between X and Y (or any Affiliate of Y) that qualifies as ‘equity’ under
applicable accounting rules.

Amounts (or the relevant
portion of such amounts) subject to set-off may be converted by Y into the
Termination Currency at the rate of exchange at which such party would be able,
acting in a reasonable manner and in good faith, to purchase the relevant
amount of such currency.

If any obligation is
unascertained, Y may in good faith estimate that obligation and set-off in respect
of the estimate, subject to the relevant party accounting to the other when the
obligation is ascertained.

Nothing in this Section
6(f) shall be effective to create a charge or other security interest.  This Section 6(f) shall be without prejudice
and in addition to any right of set-off, combination of accounts, lien or other
right to which any party is at any time otherwise entitled (whether by
operation of law, contract or otherwise).”

16.   Amendments
to Equity Definitions.

(a)           The
following amendments shall be made to the Equity Definitions and to the
Agreement:

(i)  The first sentence of Section 11.2(c) of the
Equity Definitions, prior to clause (A) thereof, is hereby amended to read as
follows: ‘(c) If “Calculation Agent Adjustment” is specified as the Method of
Adjustment in the related Confirmation of a Share Option Transaction, then
following the announcement or occurrence of any Potential Adjustment Event, the
Calculation Agent will determine whether such Potential Adjustment Event has a
material effect on the theoretical value of the relevant Shares or options on
the Shares and, if so, will (i) make appropriate adjustment(s), if any, to any
one or more of:’; and

(ii)   Sections 11.2(a) and (e)(vii) of the Equity
Definitions are hereby amended by deleting the words “diluting or concentrative”
and replacing them with “material”.

(b)  Solely for purposes of applying the Equity
Definitions and for purposes of this Confirmation, any reference to a Strike
Price shall be deemed to be a reference to any of the Strike Price 1 or
the  Strike Price 2, or both, as
appropriate.

17.   Disclosure.  Effective from the date of commencement of
discussions concerning the Transaction, Counterparty and each of its employees,
representatives, or other agents may disclose to any and all persons, without
limitation of any kind, the tax treatment and tax structure of the Transaction
and all materials of any kind (including opinions or other tax analyses) that
are provided to Counterparty relating to such tax treatment and tax structure.

 12
 

 

 

18.   Special Provisions for Counterparty
Payments.  The parties hereby agree
that, notwithstanding anything to the contrary herein or in the Agreement, in
the event that an Early Termination Date (whether as a result of an Event of
Default or a Termination Event) occurs or is designated with respect to any
Transaction after Counterparty has paid the Premium to Dealer and, as a result,
Counterparty owes to Dealer an amount calculated under Section 6(e) of the
Agreement (calculated as if the Transactions being terminated on such Early
Termination Date were the sole Transactions under the Agreement), such amount
shall be deemed to be zero.

19.   Unwind.  In the event the sale of the $150,000,000
0.50% Convertible Senior Notes due September 30, 2011 and the $150,000,000
0.75% Convertible Senior Notes due September 30, 2013 are not consummated with
the initial purchasers pursuant to the Purchase Agreement for any reason by the
close of business in New York on September 27, 2006 (or such later date as agreed
upon by the parties) (such date or such later date as agreed upon being the “Accelerated
Unwind Date”), this Transaction shall automatically terminate (the “Accelerated
Unwind”) on the Accelerated Unwind Date and (i) this Transaction and all of
the respective rights and obligations of Dealer and Counterparty under this
Transaction shall be cancelled and terminated and (ii) each party shall be
released and discharged by the other party from and agrees not to make any
claim against the other party with respect to any obligations or liabilities of
the other party arising out of and to be performed in connection with this
Transaction either prior to or after the Accelerated Unwind Date.  Dealer and Counterparty represent and
acknowledge to the other that upon an Accelerated Unwind, all obligations with
respect to this Transaction shall be deemed fully and finally discharged.

20.   Additional Provisions.

Regulation:                                            MLI
is regulated by The Financial Services Authority.

21.  Arbitration.

(a)           All parties to this Confirmation are giving up the right
to sue each other in court, including the right to a trial by jury, except as
provided by the rules of the arbitration forum in which a claim is filed.

(b)           Arbitration awards are generally final and binding; a
party’s ability to have a court reverse or modify an arbitration award is very
limited.

(c)           The ability of the parties to obtain documents, witness
statements and other discovery is generally more limited in arbitration than in
court proceedings.

(d)           The arbitrators do not have to explain the reason(s) for
their award.

(e)           The panel of arbitrators will typically include a minority
of arbitrators who were or are affiliated with the securities industry, unless
Counterparty is a member of the organization sponsoring the arbitration
facility, in which case all arbitrators may be affiliated with the securities
industry.

(f)            The rules of some arbitration forums may impose time
limits for bringing a claim in arbitration. 
In some cases, a claim that is ineligible for arbitration may be brought
in court.

(g)           The rules of the arbitration forum in which the claim is
filed, and any amendments thereto, shall be incorporated into this
Confirmation.

(h)           Counterparty agrees that any and all controversies that
may arise between Counterparty and Dealer, including, but not limited to, those
arising out of or relating to the Agreement or the Transaction hereunder, shall
be determined by arbitration conducted before The New York Stock Exchange, Inc.
(“NYSE”) or NASD Dispute Resolution (“NASD-DR”), or, if the NYSE
and NASD-DR decline to hear the matter, before the American Arbitration
Association, in accordance with their arbitration rules then in force.  The award of the arbitrator shall be final,
and judgment upon the award rendered may be entered in any court, state or
federal, having jurisdiction.

(i)            No person shall bring a putative or certified class
action to arbitration, nor seek to enforce any pre-dispute arbitration
agreement against any person who has initiated in court a putative class action
or who is a 

 13
 

 

 

member of
a putative class who has not opted out of the class with respect to any claims
encompassed by the putative class action until: (i) the class certification is
denied; (ii) the class is decertified; or (iii) Counterparty is excluded from
the class by the court.

(j)            Such forbearance to enforce an agreement to arbitrate
shall not constitute a waiver of any rights under this Confirmation except to
the extent stated herein.

 14
 

 

 

Counterparty hereby
agrees (a) to check this Confirmation carefully and immediately upon
receipt so that errors or discrepancies can be promptly identified and
rectified and (b) to confirm that the foregoing (in the exact form
provided by Dealer) correctly sets forth the terms of the agreement between Dealer
and Counterparty with respect to this Transaction, by manually signing this
Confirmation or this page hereof as evidence of agreement to such terms and
providing the other information requested herein and immediately returning an
executed copy to us.

	
   

  	
  Yours faithfully,

  
	
   

  	
   

  	
   

  
	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  MERRILL
  LYNCH INTERNATIONAL

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Angelina Lopes

  
	
   

  	
   

  	
  Name:

  	
  Angelina Lopes

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
  Agreed and Accepted By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PRICELINE.COM INCORPORATED

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Robert J. Mylod, Jr.

  	
   

  
	
   

  	
  Name:

  	
  Robert J. Mylod, Jr.

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Acknowledged and agreed as to matters to the Agent:

  MERRILL LYNCH, PIERCE, FENNER & SMITH
  INCORPORATED,

  Solely in its capacity as Agent hereunder

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Rhonda Garguilo

  	
   

  
	
   

  	
  Name:

  	
  Rhonda Garguilo

  	
   

  
	
   

  	
  Title:

  	
  Authorized Signatory

  	
   

  

 

 

 15
 

 

ANNEX A

 

	
  Component

  	
   

  	
  Number of Options

  	
   

  	
  Expiration Date

  (5-Year)

  	
   

  
	
  1

  	
   

  	
  55,720

  	
   

  	
  21-Sep-11

  	
   

  
	
  2

  	
   

  	
  55,720

  	
   

  	
  22-Sep-11

  	
   

  
	
  3

  	
   

  	
  55,720

  	
   

  	
  23-Sep-11

  	
   

  
	
  4

  	
   

  	
  55,720

  	
   

  	
  26-Sep-11

  	
   

  
	
  5

  	
   

  	
  55,720

  	
   

  	
  27-Sep-11

  	
   

  
	
  6

  	
   

  	
  55,720

  	
   

  	
  28-Sep-11

  	
   

  
	
  7

  	
   

  	
  55,720

  	
   

  	
  29-Sep-11

  	
   

  
	
  8

  	
   

  	
  55,720

  	
   

  	
  30-Sep-11

  	
   

  
	
  9

  	
   

  	
  55,720

  	
   

  	
  3-Oct-11

  	
   

  
	
  10

  	
   

  	
  55,720

  	
   

  	
  4-Oct-11

  	
   

  
	
  11

  	
   

  	
  55,720

  	
   

  	
  5-Oct-11

  	
   

  
	
  12

  	
   

  	
  55,720

  	
   

  	
  6-Oct-11

  	
   

  
	
  13

  	
   

  	
  55,720

  	
   

  	
  7-Oct-11

  	
   

  
	
  14

  	
   

  	
  55,720

  	
   

  	
  10-Oct-11

  	
   

  
	
  15

  	
   

  	
  55,720

  	
   

  	
  11-Oct-11

  	
   

  
	
  16

  	
   

  	
  55,720

  	
   

  	
  12-Oct-11

  	
   

  
	
  17

  	
   

  	
  55,720

  	
   

  	
  13-Oct-11

  	
   

  
	
  18

  	
   

  	
  55,720

  	
   

  	
  14-Oct-11

  	
   

  
	
  19

  	
   

  	
  55,720

  	
   

  	
  17-Oct-11

  	
   

  
	
  20

  	
   

  	
  55,720

  	
   

  	
  18-Oct-11

  	
   

  

 

 16
 

 

ANNEX B

 

	
   

  	
   

  	
  VWAP Price

  	
   

  
	
   

  	
   

  	
  <$25.0

  	
   

  	
  $25.0

  	
   

  	
  $30.0

  	
   

  	
  $35.0

  	
   

  	
  $40.0

  	
   

  	
  $45.0

  	
   

  	
  $50.0

  	
   

  	
  $55.0

  	
   

  
	
  09/26/06

  	
   

  	
  0.000000

  	
   

  	
  -0.084164

  	
   

  	
  -0.088701

  	
   

  	
  -0.090470

  	
   

  	
  -0.090441

  	
   

  	
  0.013402

  	
   

  	
  0.105025

  	
   

  	
  0.098397

  	
   

  
	
  03/26/07

  	
   

  	
  0.000000

  	
   

  	
  -0.077763

  	
   

  	
  -0.084349

  	
   

  	
  -0.087836

  	
   

  	
  -0.089175

  	
   

  	
  0.013609

  	
   

  	
  0.104428

  	
   

  	
  0.097198

  	
   

  
	
  09/26/07

  	
   

  	
  0.000000

  	
   

  	
  -0.072343

  	
   

  	
  -0.080028

  	
   

  	
  -0.084549

  	
   

  	
  -0.086783

  	
   

  	
  0.011875

  	
   

  	
  0.102372

  	
   

  	
  0.094939

  	
   

  
	
  03/26/08

  	
   

  	
  0.000000

  	
   

  	
  -0.065048

  	
   

  	
  -0.075116

  	
   

  	
  -0.081793

  	
   

  	
  -0.085813

  	
   

  	
  0.014823

  	
   

  	
  0.103972

  	
   

  	
  0.095473

  	
   

  
	
  09/26/08

  	
   

  	
  0.000000

  	
   

  	
  -0.036479

  	
   

  	
  -0.062365

  	
   

  	
  -0.085777

  	
   

  	
  -0.099254

  	
   

  	
  0.009935

  	
   

  	
  0.104318

  	
   

  	
  0.095219

  	
   

  
	
  03/26/09

  	
   

  	
  0.000000

  	
   

  	
  -0.027818

  	
   

  	
  -0.054062

  	
   

  	
  -0.080465

  	
   

  	
  -0.098489

  	
   

  	
  0.006144

  	
   

  	
  0.098636

  	
   

  	
  0.088630

  	
   

  
	
  09/26/09

  	
   

  	
  0.000000

  	
   

  	
  -0.018516

  	
   

  	
  -0.043550

  	
   

  	
  -0.072808

  	
   

  	
  -0.096557

  	
   

  	
  0.004191

  	
   

  	
  0.095362

  	
   

  	
  0.084707

  	
   

  
	
  03/26/10

  	
   

  	
  0.000000

  	
   

  	
  -0.009701

  	
   

  	
  -0.030898

  	
   

  	
  -0.061974

  	
   

  	
  -0.092763

  	
   

  	
  0.000351

  	
   

  	
  0.087623

  	
   

  	
  0.075012

  	
   

  
	
  09/26/10

  	
   

  	
  0.000000

  	
   

  	
  -0.002794

  	
   

  	
  -0.016071

  	
   

  	
  -0.045656

  	
   

  	
  -0.085195

  	
   

  	
  -0.001542

  	
   

  	
  0.082491

  	
   

  	
  0.068248

  	
   

  
	
  03/26/11

  	
   

  	
  0.000000

  	
   

  	
  -0.000102

  	
   

  	
  -0.002997

  	
   

  	
  -0.021420

  	
   

  	
  -0.068526

  	
   

  	
  -0.004492

  	
   

  	
  0.064059

  	
   

  	
  0.042987

  	
   

  
	
  09/21/11

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  

 

	
   

  	
   

  	
  VWAP Price

  	
   

  
	
   

  	
   

  	
  $60.0

  	
   

  	
  $65.0

  	
   

  	
  $70.0

  	
   

  	
  $75.0

  	
   

  	
  $80.0

  	
   

  	
  $85.0

  	
   

  	
  $90.0

  	
   

  	
  $95.0

  	
   

  
	
  09/26/06

  	
   

  	
  0.085663

  	
   

  	
  0.075391

  	
   

  	
  0.066993

  	
   

  	
  0.060045

  	
   

  	
  0.054234

  	
   

  	
  0.049328

  	
   

  	
  0.045148

  	
   

  	
  0.041558

  	
   

  
	
  03/26/07

  	
   

  	
  0.084019

  	
   

  	
  0.073424

  	
   

  	
  0.064797

  	
   

  	
  0.057691

  	
   

  	
  0.051778

  	
   

  	
  0.046810

  	
   

  	
  0.042601

  	
   

  	
  0.039005

  	
   

  
	
  09/26/07

  	
   

  	
  0.081645

  	
   

  	
  0.070999

  	
   

  	
  0.062365

  	
   

  	
  0.055285

  	
   

  	
  0.049419

  	
   

  	
  0.044513

  	
   

  	
  0.040375

  	
   

  	
  0.036855

  	
   

  
	
  03/26/08

  	
   

  	
  0.081349

  	
   

  	
  0.070064

  	
   

  	
  0.060947

  	
   

  	
  0.053505

  	
   

  	
  0.047374

  	
   

  	
  0.042278

  	
   

  	
  0.038007

  	
   

  	
  0.034402

  	
   

  
	
  09/26/08

  	
   

  	
  0.080640

  	
   

  	
  0.069017

  	
   

  	
  0.059654

  	
   

  	
  0.052040

  	
   

  	
  0.045792

  	
   

  	
  0.040624

  	
   

  	
  0.036314

  	
   

  	
  0.032693

  	
   

  
	
  03/26/09

  	
   

  	
  0.073519

  	
   

  	
  0.061646

  	
   

  	
  0.052238

  	
   

  	
  0.044723

  	
   

  	
  0.038670

  	
   

  	
  0.033759

  	
   

  	
  0.029743

  	
   

  	
  0.026434

  	
   

  
	
  09/26/09

  	
   

  	
  0.069224

  	
   

  	
  0.057188

  	
   

  	
  0.047767

  	
   

  	
  0.040340

  	
   

  	
  0.034443

  	
   

  	
  0.029726

  	
   

  	
  0.025925

  	
   

  	
  0.022839

  	
   

  
	
  03/26/10

  	
   

  	
  0.058480

  	
   

  	
  0.046071

  	
   

  	
  0.036745

  	
   

  	
  0.029716

  	
   

  	
  0.024393

  	
   

  	
  0.020339

  	
   

  	
  0.017230

  	
   

  	
  0.014826

  	
   

  
	
  09/26/10

  	
   

  	
  0.050951

  	
   

  	
  0.038405

  	
   

  	
  0.029349

  	
   

  	
  0.022819

  	
   

  	
  0.018102

  	
   

  	
  0.014680

  	
   

  	
  0.012180

  	
   

  	
  0.010336

  	
   

  
	
  03/26/11

  	
   

  	
  0.024473

  	
   

  	
  0.014003

  	
   

  	
  0.008373

  	
   

  	
  0.005438

  	
   

  	
  0.003921

  	
   

  	
  0.003123

  	
   

  	
  0.002681

  	
   

  	
  0.002416

  	
   

  
	
  09/21/11

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  VWAP Price

  	
   

  
	
   

  	
   

  	
  $100.0

  	
   

  	
  $105.0

  	
   

  	
  $110.0

  	
   

  	
  $115.0

  	
   

  	
  $120.0

  	
   

  	
  $125.0

  	
   

  	
  $130 or more

  	
   

  
	
  09/26/06

  	
   

  	
  0.038451

  	
   

  	
  0.035745

  	
   

  	
  0.033371

  	
   

  	
  0.031278

  	
   

  	
  0.029420

  	
   

  	
  0.027764

  	
   

  	
  0.026281

  	
   

  
	
  03/26/07

  	
   

  	
  0.035911

  	
   

  	
  0.033229

  	
   

  	
  0.030891

  	
   

  	
  0.028839

  	
   

  	
  0.027029

  	
   

  	
  0.025422

  	
   

  	
  0.023991

  	
   

  
	
  09/26/07

  	
   

  	
  0.033839

  	
   

  	
  0.031237

  	
   

  	
  0.028976

  	
   

  	
  0.027001

  	
   

  	
  0.025264

  	
   

  	
  0.023728

  	
   

  	
  0.022364

  	
   

  
	
  03/26/08

  	
   

  	
  0.031335

  	
   

  	
  0.028709

  	
   

  	
  0.026446

  	
   

  	
  0.024483

  	
   

  	
  0.022771

  	
   

  	
  0.021269

  	
   

  	
  0.019945

  	
   

  
	
  09/26/08

  	
   

  	
  0.029630

  	
   

  	
  0.027021

  	
   

  	
  0.024784

  	
   

  	
  0.022855

  	
   

  	
  0.021181

  	
   

  	
  0.019721

  	
   

  	
  0.018439

  	
   

  
	
  03/26/09

  	
   

  	
  0.023687

  	
   

  	
  0.021392

  	
   

  	
  0.019459

  	
   

  	
  0.017821

  	
   

  	
  0.016423

  	
   

  	
  0.015222

  	
   

  	
  0.014183

  	
   

  
	
  09/26/09

  	
   

  	
  0.020315

  	
   

  	
  0.018234

  	
   

  	
  0.016505

  	
   

  	
  0.015059

  	
   

  	
  0.013838

  	
   

  	
  0.012801

  	
   

  	
  0.011913

  	
   

  
	
  03/26/10

  	
   

  	
  0.012951

  	
   

  	
  0.011474

  	
   

  	
  0.010297

  	
   

  	
  0.009350

  	
   

  	
  0.008578

  	
   

  	
  0.007942

  	
   

  	
  0.007410

  	
   

  
	
  09/26/10

  	
   

  	
  0.008959

  	
   

  	
  0.007918

  	
   

  	
  0.007118

  	
   

  	
  0.006493

  	
   

  	
  0.005995

  	
   

  	
  0.005591

  	
   

  	
  0.005257

  	
   

  
	
  03/26/11

  	
   

  	
  0.002237

  	
   

  	
  0.002105

  	
   

  	
  0.001997

  	
   

  	
  0.001905

  	
   

  	
  0.001823

  	
   

  	
  0.001749

  	
   

  	
  0.001681

  	
   

  
	
  09/21/11

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  

 

 17Exhibit 10.5

                     

Opening Transaction

	
  To:

  	
   

  	
  priceline.com Incorporated

  800 Connecticut Avenue

  Norwalk, Connecticut 06854

  
	
   

  	
   

  	
   

  
	
  A/C:

  	
   

  	
  066213118

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Merrill Lynch International

  
	
   

  	
   

  	
   

  
	
  Re:

  	
   

  	
  Issuer Capped Share Call Option Transaction (7-Year)

  
	
   

  	
   

  	
   

  
	
  Ref. No:

  	
   

  	
  06818736

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  September 21, 2006

  
	
   

  	
   

  	
   

  

 

Dear Sir(s):

The purpose of this
communication (this “Confirmation”) is to
set forth the terms and conditions of the above-referenced transaction entered
into on the Trade Date specified below (the “Transaction”)
between Merrill Lynch International (“Dealer”), Merrill Lynch, Pierce,
Fenner & Smith Incorporated (“Agent”)
and priceline.com Incorporated (“Counterparty”). 
This communication constitutes a “Confirmation”
as referred to in the ISDA Master Agreement specified below.

1.     This Confirmation is subject to, and
incorporates, the definitions and provisions of the 2000 ISDA Definitions
(including the Annex thereto) (the “2000 Definitions”)
and the definitions and provisions of the 2002 ISDA Equity Derivatives
Definitions (the “Equity Definitions”,
and together with the 2000 Definitions, the “Definitions”),
in each case as published by the International Swaps and Derivatives
Association, Inc. (“ISDA”).  In the event of any inconsistency between the
2000 Definitions and the Equity Definitions, the Equity Definitions will
govern.

Each party is hereby
advised, and each such party acknowledges, that the other party has engaged in,
or refrained from engaging in, substantial financial transactions and has taken
other material actions in reliance upon the parties’ entry into the Transaction
to which this Confirmation relates on the terms and conditions set forth below.

This Confirmation
evidences a complete and binding agreement between Dealer and Counterparty as
to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall be subject to an
agreement (the “Agreement”) in the form of the 1992 ISDA Master
Agreement as if Dealer and Counterparty had executed an agreement in such form
on the date hereof (but without any Schedule except for (i) the election
of Loss and Second Method, New York law (without regard to the conflicts of law
principles) as the governing law and US Dollars (“USD”)
as the Termination Currency, (ii) the election that subparagraph (ii)
of Section 2(c) will not apply to Transactions and (iii) the election
that the “Cross Default” provisions of Section 5(a)(vi) will apply to
Counterparty with a “Threshold Amount” of USD 50 million).  The parties hereby agree that no Transactions
other than the Transaction to which this Confirmation relates and the other
transaction between the parties with the same trade date regarding options on
Shares expiring in 2011 (the “Other Transaction”) shall be governed by the
Agreement.

All provisions contained
in, or incorporated by reference to, the Agreement will govern this
Confirmation except as expressly modified herein.  In the event of any inconsistency between
this Confirmation and the Definitions or the Agreement, as the case may be,
this Confirmation shall govern.

 1
 

 

 

2.     This Transaction constitutes a Share Option
Transaction for purposes of the Equity Definitions.  The terms of the particular Transaction to
which this Confirmation relates are as follows:

	
  General
  Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Trade Date:

  	
   

  	
  September 21, 2006

  
	
   

  	
   

  	
   

  
	
  Components:

  	
   

  	
  The Transaction will be divided into individual
  Components, each with the terms set forth in this Confirmation, and, in
  particular, with the Number of Options and Expiration Date set forth in this
  Confirmation. The payments and deliveries to be made upon settlement of the
  Transaction will be determined separately for each Component as if each
  Component were a separate Transaction under the Agreement.

  
	
   

  	
   

  	
   

  
	
  Option Style:

  	
   

  	
  European

  
	
   

  	
   

  	
   

  
	
  Option Type:

  	
   

  	
  Call

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Counterparty

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

  	
  Common Stock (par value $0.008 per Share) of
  Counterparty (Ticker: “PCLN”)

  
	
   

  	
   

  	
   

  
	
  Number of
  Options:

  	
   

  	
  For each Component, as provided in Annex A to this
  Confirmation.

  
	
   

  	
   

  	
   

  
	
  Option
  Entitlement:

  	
   

  	
  One Share per Option

  
	
   

  	
   

  	
   

  
	
  Strike Price 1:

  	
   

  	
  40.38

  
	
   

  	
   

  	
   

  
	
  Strike Price 2:

  	
   

  	
  50.47

  
	
   

  	
   

  	
   

  
	
  Premium:

  	
   

  	
  USD 4,963,500

  
	
   

  	
   

  	
   

  
	
  Premium Payment
  Date:

  	
   

  	
  September 27, 2006

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  NASDAQ Global Select Market

  
	
   

  	
   

  	
   

  
	
  Related
  Exchange:

  	
   

  	
  All Exchanges

  
	
   

  	
   

  	
   

  
	
  Procedures for Exercise:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration Time:

  	
   

  	
  Valuation Time

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  As provided in Annex A to this Confirmation (or, if
  such date is not a Scheduled Trading Day, the next following Scheduled
  Trading Day that is not already an Expiration Date for another Component); providedthat,
  notwithstanding anything to the contrary in the Equity Definitions, if that
  date is a Disrupted Day, the Calculation Agent may determine that the
  Expiration Date for such Component is a Disrupted Day in whole or in part, in
  which case the Calculation Agent shall, in its discretion, determine the
  number of Options for which such day shall be the Expiration Date and (i)
  allocate the remaining Options for such Expiration Date to one or more of the
  remaining Expiration Dates, (ii) designate the

  

 

 2
 

 

 

	
  

  	
   

  	
  first succeeding
  Scheduled Trading Day that is not a Disrupted Day and is not or is not deemed
  to be an Expiration Date in respect of any other Component of the Transaction
  hereunder as the Expiration Date for such remaining Options, or (iii) a
  combination thereof; provided further that
  if the Expiration Date for a Component (including any portion of a Component
  whose Expiration Date was postponed as a result of clause (ii) or (iii) above)
  has not occurred as of the Final Disruption Date, (a) the Final Disruption
  Date shall be deemed to be the Expiration Date and Valuation Date for each
  such Component, and (b) the Calculation Agent shall determine the VWAP Price
  on the basis of its good faith estimate of the trading value for the relevant
  Shares. Section 6.6 of the Equity Definitions shall not apply to any
  Valuation Date occurring on an Expiration Date.

  
	
   

  	
   

  	
   

  
	
  Final Disruption Date:

  	
   

  	
  October 30, 2013

  	 

	
   

  	
   

  	
   

  	 

	
  Market Disruption
  Event:

  	
   

  	
  Section 6.3(a) of the Equity Definitions is hereby
  amended by deleting the words “during the one hour period that ends at the
  relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or
  Knock-out Valuation Time, as the case may be,” in clause (ii) thereof.

  	 

	
   

  	
   

  	
   

  	 

	
  Automatic
  Exercise:

  	
   

  	
  Applicable; and means that the Number of Options for
  the corresponding Expiration Date will be deemed to be automatically
  exercised at the Expiration Time on such Expiration Date if at such time such
  Options are In-the-Money, as determined by the Calculation Agent, unless
  Buyer notifies Seller (by telephone or in writing) prior to the Expiration
  Time on such Expiration Date that it does not wish Automatic Exercise to
  occur, in which case Automatic Exercise will not apply to such Expiration
  Date. “In-the-Money” means that the VWAP Price is greater than Strike
  Price 1.

  	 

	
   

  	
   

  	
   

  	 

	
  Seller’s
  Telephone Number

  	
   

  	
   

  	 

	
  and Telex and/or
  Facsimile Number

  	
   

  	
   

  	 

	
  and Contact
  Details for purpose of

  	
   

  	
   

  	 

	
  Giving Notice:

  	
   

  	
  To be provided by Dealer.

  	 

	
   

  	
   

  	
   

  	 

	
  Settlement Terms:

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  In
  respect of any Component:

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  Settlement
  Currency:

  	
   

  	
  USD

  	 

	
   

  	
   

  	
   

  	 

	
  Settlement
  Method:

  	
   

  	
  Net Share Settlement

  	 

	
   

  	
   

  	
   

  	 

	
  Settlement Date:

  	
   

  	
  For all Components, the Settlement Date shall be the
  third Scheduled Trading Day after the final Expiration Date (or, in respect
  of all or part of its obligation to deliver the Number of Shares to be
  Delivered, such other earlier date or dates (or, if Section 14 below is
  applicable, such later dates) as the Dealer shall determine in its sole
  discretion).

  	 

	
   

  	
   

  	
   

  	 

	
  Net Share
  Settlement:

  	
   

  	
  On the Settlement Date, Dealer shall deliver to
  Counterparty a number of Shares equal to the sum of the Number of Shares to
  be Delivered for all Components to the account specified by 

  	 

 

 3
 

 

 

	
  

  	
   

  	
  Counterparty and cash in lieu of any fractional
  shares for any Component valued at the VWAP Price on the Expiration Date for
  such Component.

  
	
   

  	
   

  	
   

  
	
  Number of Shares to be
  Delivered:

  	
   

  	
  In respect of any Exercise Date for any Component,
  subject to the last sentence of Section 9.5 of the Equity Definitions:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i) if the VWAP Price for such Component exceeds
  Strike Price 1 but is less than Strike Price 2, a number of Shares equal to
  (i) the product of (A) the excess of such VWAP Price over Strike Price 1, (B)
  the Number of Options for such Component and (C) the Option Entitlement, divided by (ii) such VWAP Price;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii) if the VWAP Price for such Component equals or
  exceeds Strike Price 2, a number of Shares equal to (i) the product of (A)
  the excess of Strike Price 2 over Strike Price 1, (B) the Number of Options
  for such Component and (C) the Option Entitlement, divided by
  (ii) such VWAP Price; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii) if the VWAP Price for such Component is less
  than or equal to Strike Price 1, a number of Shares equal to zero.

  
	
   

  	
   

  	
   

  
	
  VWAP Price:

  	
   

  	
  For any Expiration Date, as determined by the
  Calculation Agent based on the NASDAQ Volume Weighted Average Price per share
  of the Shares for the regular trading session (including any extensions
  thereof) of the Exchange on such Expiration Date (without regard to pre-open
  or after hours trading outside of such regular trading session) as published
  by Bloomberg at or around 4:15 p.m. New York time on such date, on Bloomberg
  page “PCLN.Q <Equity> AQR_SEC” (or any successor thereto).

  
	
   

  	
   

  	
   

  
	
  Other Applicable
  Provisions:

  	
   

  	
  The provisions of Sections 9.1(c), 9.8, 9.9, 9.10,
  9.11 and 9.12 of the Equity Definitions will be applicable, except that all
  references in such provisions to “Physical Settlement” shall be read as
  references to “Net Share Settlement”; provided
  that the Representation and Agreement contained in Section 9.11 of the Equity
  Definitions shall be modified by excluding any representations therein
  relating to restrictions, obligations, limitations or requirements under
  applicable securities laws as a result of the fact that Buyer is the issuer
  of any Shares.

  
	
   

  	
   

  	
   

  
	
  Share Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method of
  Adjustment:

  	
   

  	
  Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  Extraordinary Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  New Shares:

  	
   

  	
  In the definition of “New Shares” in Section 12.1(i)
  of the Equity Definitions, the text in subsection (i) shall be deleted in its
  entirety and replaced with: “publicly quoted, traded or listed on any of the
  New York Stock Exchange, the American Stock Exchange, the NASDAQ Global
  Select Market or the NASDAQ Global Market (or their respective successors)”.

  
	
   

  	
   

  	
   

  
	
  Consequences of Merger Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)

  	
  Share-for-Share:

  	
   

  	
  Calculation Agent Adjustment

  
				

 

 4
 

 

 

 

	
  (b) 

  	
  Share-for-Other:

  	
   

  	
  Cancellation and Payment (Agreed Model) on that
  portion of the Other Consideration that consists of cash; Calculation Agent
  Adjustment on the remainder of the Other Consideration.

  
	
   

  	
   

  	
   

  	
   

  
	
  (c) 

  	
  Share-for-Combined:

  	
   

  	
  Component Adjustment

  
	
   

  	
   

  	
   

  	
   

  
	
  Stock Loan Rate:

  	
   

  	
  USD-LIBOR-BBA

  
	
   

  	
   

  	
   

  
	
  Tender Offer:

  	
   

  	
  Applicable; provided that (a) Section
  12.1(d) of the Equity Definitions is hereby amended by adding “, or of the
  outstanding Shares,” before “of the Issuer” in the fourth line thereof and
  (b) Sections 12.1(e) and 12.1(l)(ii) of the Equity Definitions are hereby
  amended by adding “or Shares, as applicable,” after “voting shares”.

  
	
   

  	
   

  	
   

  
	
  Consequences of Tender Offers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a) 

  	
  Share-for-Share:

  	
   

  	
  Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  	
   

  
	
  (b) 

  	
  Share-for-Other:

  	
   

  	
  Cancellation and Payment (Agreed Model) on that
  portion of the Other Consideration that consists of cash; Calculation Agent
  Adjustment on the remainder of the Other Consideration.

  
	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
  Share-for-Combined:

  	
   

  	
  Component Adjustment

  
	
   

  	
   

  	
   

  	
   

  
	
  Stock Loan Rate:

  	
   

  	
  USD-LIBOR-BBA

  
	
   

  	
   

  	
   

  
	
  Nationalization, Insolvency or Delisting:

  	
   

  	
  Cancellation and Payment (Agreed Model); provided that in addition to
  the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall
  also constitute a Delisting if the Exchange is located in the United States
  and the Shares are not immediately re-listed, re-traded or re-quoted on any
  of the New York Stock Exchange, the American Stock Exchange, the NASDAQ
  Global Select Market or the NASDAQ Global Market (or their respective
  successors); if the Shares are immediately re-listed, re-traded or re-quoted
  on any such exchange or quotation system, such exchange or quotation system
  shall be deemed to be the Exchange.

  
	
   

  	
   

  	
   

  
	
  Stock Loan Rate:

  	
   

  	
  USD-LIBOR-BBA

  
	
   

  	
   

  	
   

  
	
  Additional Disruption Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a) 

  	
  Change in Law:

  	
   

  	
  Applicable;  provided that Section 12.9(a)(ii) of the Equity
  Definitions is hereby amended by adding “other than increased cost due to
  Securities Act registration requirements relating to sales by Dealer of the
  Shares acquired by Dealer for the purpose of hedging its obligations pursuant
  to the Transaction” after the parenthetical in the last line thereof.

  
	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
  Failure to Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  
	
  (c) 

  	
  Insolvency Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  
	
  (d) 

  	
  Hedging Disruption:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Hedging Party:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  	
   

  
	
  Determining
  Party:

  	
   

  	
  Dealer

  

 

 5
 

 

 

	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Agreements and Acknowledgements

  Regarding Hedging Activities:

  	
   

  	
  

  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional Acknowledgements:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Dealer Payment Instructions:

  	
   

  	
  To be provided by Dealer.

  
	
   

  	
   

  	
   

  
	
  Counterparty Payment and Delivery Instructions:

  	
   

  	
  

  To be provided by Counterparty.

  

 

	
   

  	
  3.

  	
  Calculation Agent: Dealer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.

  	
  Offices:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  The Office of Dealer for this Transaction is:
  Merrill Lynch Financial Centre, 2 King Edward Street London EC1A 1HQ.

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  The Office of Counterparty for this Transaction is:
  800 Connecticut Avenue, Norwalk, Connecticut 06854.

  
	
   

  	
   

  	
   

  
	
   

  	
  5.

  	
  Notices: For purposes of this
  Confirmation:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Address for notices or communications to
  Counterparty:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To:

  	
   

  	
  priceline.com Incorporated

  
	
   

  	
   

  	
   

  	
   

  	
  800 Connecticut Avenue

  
	
   

  	
   

  	
   

  	
   

  	
  Norwalk, Connecticut 06854

  
	
   

  	
   

  	
  Attn:

  	
   

  	
  Robert J. Mylod, Jr.

  
	
   

  	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
  Telephone:

  	
   

  	
  (203) 299-8301

  
	
   

  	
   

  	
  Facsimile:

  	
   

  	
  (203) 299-8975

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:

  	
   

  	
  Peter J. Millones

  
	
   

  	
   

  	
   

  	
   

  	
  General Counsel

  
	
   

  	
   

  	
  Facsimile:

  	
   

  	
  (203) 299-8915

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Address for notices or communications to Dealer:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To:

  	
   

  	
  Merrill Lynch International

  
	
   

  	
   

  	
   

  	
   

  	
  Merrill Lynch Financial Centre

  
	
   

  	
   

  	
   

  	
   

  	
  2 King Edward Street

  
	
   

  	
   

  	
   

  	
   

  	
  London EC1A 1HQ

  
	
   

  	
   

  	
  Attn:

  	
   

  	
  Manager, Fixed Income Settlements

  
	
   

  	
   

  	
  Telephone:

  	
   

  	
  44 207 995 2004

  
	
   

  	
   

  	
  Facsimile:

  	
   

  	
  44 207 995 3769

  
							

 

6.     Representations,
Warranties and Agreements:

(a)           In addition to the representations
and warranties in the Agreement and those contained elsewhere herein,
Counterparty represents and warrants to and for the benefit of, and agrees
with, Dealer as follows:

(i)            On the Trade Date,
(A) none of Counterparty and its officers and directors is aware of any
material nonpublic information regarding Counterparty or the Shares and (B) all
reports and other documents filed by Counterparty with the Securities and
Exchange Commission pursuant to the Securities Exchange Act of 

 6
 

 

1934, as amended (the “Exchange Act”), when
considered as a whole (with the more recent such reports and documents deemed
to amend inconsistent statements contained in any earlier such reports and
documents), do not contain any untrue statement of a material fact or any
omission of a material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances in which they were
made, not misleading.

(ii)           Counterparty
intends that this Transaction qualifies as an equity instrument for it for
purposes of EITF Issue No. 00-19. 
Notwithstanding the foregoing and without limiting the generality of
Section 13.1 of the Equity Definitions, Counterparty acknowledges that neither
Dealer nor any of its affiliates is making any representations or warranties
with respect to the treatment of the Transaction under FASB Statements 128,
133, 149 or 150, EITF Issue No. 00-19 (or any successor issue statements) or
under FASB’s Liabilities & Equity Project.

(iii)          Prior to the Trade
Date, Counterparty shall deliver to Dealer a resolution of Counterparty’s board
of directors authorizing the Transaction and such other certificate or
certificates as Dealer shall reasonably request.  Any repurchases of Shares pursuant to the
Transaction are pursuant to a Share repurchase program publicly announced on or
before the Trade Date.

(iv)          Counterparty has not
received notice that it is the subject of a tender offer made under Section
14(d)(1) of the Exchange Act.

(v)           Counterparty is not
entering into this Confirmation to create actual or apparent trading activity
in the Shares (or any security convertible into or exchangeable for Shares) or
to raise or depress or otherwise manipulate the price of the Shares (or any
security convertible into or exchangeable for Shares) in violation of the
Exchange Act.

(vi)           Counterparty is
not, and after giving effect to the transactions contemplated hereby will not
be, an “investment company” as such term is defined in the Investment Company
Act of 1940, as amended.

(vii)         On the Trade Date
(A) the assets of Counterparty at their fair valuation exceed the liabilities
of Counterparty, including contingent liabilities, (B) the capital of
Counterparty is adequate to conduct the business of Counterparty and (C)
Counterparty has the ability to pay its debts and obligations as such debts
mature and does not intend to, or does not believe that it will, incur debt
beyond its ability to pay as such debts mature.

(viii)        The representations
and warranties of Counterparty set forth in Section 3 of the Agreement and
Section 1 of the Purchase Agreement dated as of the Trade Date between
Counterparty and Dealer as representative of the several purchasers party
thereto (the “Purchase Agreement”), are true and correct and are hereby
deemed to be repeated to Dealer as if set forth herein.

(ix)           (A) On the Trade
Date and during the period starting on the first Expiration Date and ending on
the last Expiration Date (the “Settlement Period”), the Shares or
securities that are convertible into, or exchangeable or exercisable for
Shares, are not, and shall not be, subject to a “restricted period,” as such
term is defined in Regulation M under the Exchange Act (“Regulation M”)
and (B) Counterparty shall not engage in any “distribution,” as such term is
defined in Regulation M, other than a distribution meeting the requirements of
the exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M,
until the second Exchange Business Day immediately following the Trade Date or
the Settlement Period, as the case may be.

(x)            On the Trade Date
and during the Settlement Period, neither Counterparty nor any “affiliate” or “affiliated
purchaser” (each as defined in Rule 10b-18 under the Exchange Act (“Rule
10b-18”)) shall directly or indirectly (including, without limitation, by
means of any cash-settled or other derivative instrument) purchase, offer to
purchase, place any bid or limit order that would effect a purchase of, or
commence any tender offer relating to, any Shares (or an equivalent interest,
including a unit of beneficial interest in a trust or limited partnership or a
depository share) or any security convertible into or exchangeable or
exercisable for Shares.

 7
 

 

 

(xi)           Without the consent
of Dealer, Counterparty agrees (i) during the Designated Period, not to
purchase or agree to purchase Shares if such purchase would cause its
outstanding Shares to be below 36.35 million and (ii) during the Designated
Period, not to purchase or agree to purchase Shares if such purchase along with
all other purchases during the Designated Period would exceed 3.85 million in
the aggregate. The Share numbers in this provision shall be subject to
adjustment as the Calculation Agent determines appropriate to account for any
Potential Adjustment Event or Extraordinary Event. “Designated Period”
means the period from and including the Trade Date to and including the date
that is the 30th Prospectus Useable Day (or such longer number agreed by the
parties) occurring after the 60th day following the Trade Date.  An Exchange Business Day is a Prospectus
Useable Day unless on such day Dealer determines in its good faith discretion
that the Registration Statement and Prospectus referred to in the Underwriting
Agreement dated September 5, 2006 between, among others, Dealer, as
representative of the several underwriters, and Counterparty (the “Underwriting
Agreement”), is not or may not be available for use in compliance with
applicable law.

(b)           Each of Dealer and Counterparty
agrees and represents that it is an “eligible contract participant” as defined
in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

(c)           Each of Dealer and Counterparty
acknowledges that the offer and sale of the Transaction to it is intended to be
exempt from registration under the Securities Act of 1933, as amended (the “Securities
Act”), by virtue of Section 4(2) thereof. 
Accordingly, Counterparty represents and warrants to Dealer that (i) it
has the financial ability to bear the economic risk of its investment in the
Transaction and is able to bear a total loss of its investment and its investments
in and liabilities in respect of the Transaction, which it understands are not
readily marketable, are not disproportionate to its net worth, and it is able
to bear any loss in connection with the Transaction, including the loss of its
entire investment in the Transaction, (ii) it is an “accredited investor” as
that term is defined in Regulation D as promulgated under the Securities Act,
(iii) it is entering into the Transaction for its own account without a view to
the distribution or resale thereof, (iv) the assignment, transfer or other
disposition of the Transaction has not been and will not be registered under
the Securities Act and is restricted under this Confirmation, the Securities
Act and state securities laws, (v) its financial condition is such that it has
no need for liquidity with respect to its investment in the Transaction and no
need to dispose of any portion thereof to satisfy any existing or contemplated
undertaking or indebtedness and is capable of assessing the merits of and understanding
(on its own behalf or through independent professional advice), and understands
and accepts, the terms, conditions and risks of the Transaction.

(d)           Each of Dealer and Counterparty
agrees and acknowledges (A) that this Confirmation is (i) a “securities
contract,” as such term is defined in Section 741(7) of Title 11 of the United
States Code (the “Bankruptcy Code”), with respect to which each payment
and delivery hereunder is a “settlement payment,” as such term is defined in
Section 741(8) of the Bankruptcy Code, and (ii) a “swap agreement,” as such
term is defined in Section 101(53B) of the Bankruptcy Code, with respect to
which each payment and delivery hereunder is a “transfer,” as such term is
defined in Section 101(54) of the Bankruptcy Code, and (B) that Dealer is
entitled to the protections afforded by, among other sections, Section
362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code.

(e)           Counterparty shall deliver to Dealer
an opinion of counsel, dated as of the Trade Date and reasonably acceptable to
Dealer in form and substance, with respect to the matters set forth in Section
3(a) of the Agreement.

(f)            Each party acknowledges and agrees
to be bound by the Conduct Rules of the National Association of Securities Dealers,
Inc. applicable to transactions in options, and further agrees not to violate
the position and exercise limits set forth therein.

7.     Repurchase Notices.  Counterparty shall, on any day on which
Counterparty effects any repurchase of Shares, promptly give Dealer a written
notice of such repurchase (a “Repurchase Notice”) on such day if
following such repurchase, the Notice Percentage as determined on such day is
greater by 0.5% than the Notice Percentage included in the immediately
preceding Repurchase Notice (or, in the case of the first such Repurchase
Notice, greater than the Notice Percentage as of the date hereof).  In the event that Counterparty fails to
provide Dealer with a Repurchase Notice on the day and in the manner specified
in this Section then Counterparty agrees to indemnify and hold harmless Dealer,
its affiliates and their respective directors, officers, employees, agents and
controlling persons (Dealer and each such person being an “Indemnified Party”)
from and against any and all losses, claims, damages and liabilities (or
actions in respect thereof), joint or several, to which such Indemnified Party
may become subject, under Section 16 of the Exchange Act, relating to or
arising out of such failure.  If for any
reason the foregoing indemnification is unavailable to any 

 8
 

 

Indemnified Party
or insufficient to hold harmless any Indemnified Party, then Counterparty shall
contribute, to the maximum extent permitted by law, to the amount paid or
payable by the Indemnified Party as a result of such loss, claim, damage or
liability.  In addition, Counterparty
will reimburse any Indemnified Party for all expenses (including reasonable
counsel fees and expenses) as they are incurred (after notice to Counterparty)
in connection with the investigation of, preparation for or defense or
settlement of any pending or threatened claim or any action, suit or proceeding
arising therefrom, whether or not such Indemnified Party is a party thereto and
whether or not such claim, action, suit or proceeding is initiated or brought
by or on behalf of Counterparty.  This
indemnity shall survive the completion of the Transaction contemplated by this
Confirmation and any assignment and delegation of the Transaction made pursuant
to this Confirmation or the Agreement shall inure to the benefit of any
permitted assignee of Dealer.  The “Notice
Percentage” as of any day is the fraction (A) the numerator of which is the
aggregate of the products of the outstanding Number of Options and the Option
Entitlement under this Transaction and the Other Transaction and (B) the
denominator of which is the number of Shares outstanding on such day.

8.     Transfer or Assignment.  Neither party may transfer any of its rights
or obligations under this Transaction without the prior written consent of the
non-transferring party; provided that
Dealer may assign, transfer and set over all rights, title and interest,
powers, privileges and remedies of Dealer under this Transaction, in whole or
in part, to an affiliate of Dealer that is guaranteed by Merrill Lynch &
Co., Inc. without the consent of Counterparty; provided further that
if the Equity Percentage exceeds 7%, Dealer may immediately, in its sole
discretion, transfer or assign a number of Options sufficient to reduce the
Equity Percentage to 6.5% to any third party with (or with a guarantor that
has) a rating for its long-term, unsecured and unsubordinated indebtedness by
Standard & Poor’s Ratings Services or its successor (“S&P”) that is not lower than
the rating by S&P for the long-term, unsecured and unsubordinated
indebtedness of Merrill Lynch & Co., Inc. (“ML Debt”), or by Moody’s
Investors Service, Inc. (“Moody’s”) that is not lower than the rating by
Moody’s for ML Debt or, if either S&P or Moody’s ceases to rate such debt,
at least an equivalent rating or better by a substitute agency rating mutually
agreed by Counterparty and Dealer.  If,
in the discretion of Dealer, Dealer is unable to effect such transfer or
assignment after its commercially reasonable efforts on pricing terms reasonably
acceptable to Dealer, Dealer may designate any Scheduled Trading Day as an
Early Termination Date with respect to a portion (the “Terminated Portion”) of this
Transaction, allocated to Components as Dealer determines in its discretion,
such that the Equity Percentage following such partial termination will be
equal to or less than 7%.  In the event
that Dealer so designates an Early Termination Date with respect to a portion
of this Transaction, a payment shall be made pursuant to Section 6 of the Agreement
as if (i) an Early Termination Date had been designated in respect of a
Transaction having terms identical to this Transaction and a Number of Options
equal to the Terminated Portion, (ii) Counterparty shall be the Affected Party
with respect to such partial termination and (iii) such portion of this
Transaction shall be the only Terminated Transaction.  The “Equity Percentage” as of any day is the fraction (A) the
numerator of which is the number of Shares that Dealer or any of its affiliates
that are subject to aggregation with Dealer beneficially own (within the
meaning of Section 13 of the Exchange Act) on such day and (B) the denominator
of which is the number of Shares outstanding on such day.

9.     Beneficial Ownership. 
Notwithstanding anything to the contrary in the Agreement or this
Confirmation, in no event shall Dealer be entitled to receive, or shall be
deemed to receive, any Shares if, upon such receipt of such Shares, the “beneficial
ownership” (within the meaning of Section 13 of the Exchange Act and the rules
promulgated thereunder) of Shares by Dealer or any of its affiliates that are
subject to aggregation with Dealer (collectively, “Dealer Group”) would
be equal to or greater than 9.5% or more of the outstanding Shares.  If any delivery owed to Dealer hereunder is
not made, in whole or in part, as a result of this provision, Counterparty’s
obligation to make such delivery shall not be extinguished and Counterparty
shall make such delivery as promptly as practicable after, but in no event
later than one Exchange Business Day after, Dealer gives notice to Counterparty
that such delivery would not result in Dealer Group directly or indirectly so
beneficially owning in excess of 9.5% of the outstanding Shares.

10.   Extension of Settlement.   Dealer may divide any Component into
additional Components and designate the Expiration Date and the Number of
Options for each such Component if Dealer determines, in its reasonable
discretion, that such further division is necessary or advisable to preserve
Dealer’s hedging activity hereunder in light of existing liquidity conditions
or to enable Dealer to effect purchases of Shares in connection with its
hedging activity hereunder in a manner that would, if Dealer were Counterparty
or an affiliated purchaser of Counterparty, be compliance with applicable legal
and regulatory requirements.

 

 9

 

11.   Matters Relating to Agent.

(a)           Agent
will be responsible for the operational aspects of the Transactions effected
through it, such as record keeping, reporting, and confirming Transactions to
Counterparty and Dealer.

(b)           Unless Counterparty
is a “major U.S. institutional investor,” as defined in Rule 15a-6 under the
Exchange Act, neither Counterparty nor Dealer will contact the other without
the direct involvement of Agent.

(c)           Agent’s sole role
under this Agreement and with respect to any Transaction is as an agent of
Counterparty and Dealer on a disclosed basis and Agent shall have no
responsibility or liability to Counterparty or Dealer hereunder except for
gross negligence or willful misconduct in the performance of its duties as
agent.  Agent is authorized to act as
agent for Dealer, but only to the extent expressly required to satisfy the
requirements of Rule 15a-6 under the Exchange Act in respect of the Transaction
described hereunder.  Agent shall have no
authority to act as agent for Counterparty generally or with respect to
transactions or other matters governed by this Agreement, except to the extent
expressly required to satisfy the requirements of Rule 15a-6 or in accordance
with express instructions from Counterparty.

12.   Equity Rights.  Dealer acknowledges and agrees that this
Confirmation is not intended to convey to it rights with respect to the
Transaction that are senior to the claims of common stockholders in the event
of Counterparty’s bankruptcy.  For the
avoidance of doubt, the parties agree that the preceding sentence shall not
apply at any time other than during Counterparty’s bankruptcy to any claim
arising as a result of a breach by Counterparty of any of its obligations under
this Confirmation or the Agreement.  For
the avoidance of doubt, the parties acknowledge that this Confirmation is not
secured by any collateral that would otherwise secure the obligations of
Counterparty herein under or pursuant to any other agreement.

13.   Alternative Calculations
and Payment on Early Termination and on Certain Extraordinary Events.  If, subject to Section 14 below, Dealer shall
owe Counterparty any amount pursuant to Section 12.2 of the Equity Definitions
and “Consequences of Merger Events” above, or Sections 12.3, 12.6, 12.7 or 12.9
of the Equity Definitions (except in the event of a Tender Offer or a Merger
Event, in each case, in which the consideration or proceeds to be paid to
holders of Shares consists solely of cash) or pursuant to Section 6(d)(ii) of
the Agreement (except in the event of an Event of Default in which Counterparty
is the Defaulting Party or a Termination Event in which Counterparty is the
Affected Party, that resulted from an event or events within Counterparty’s
control) (a “Payment Obligation”), Counterparty shall have the right, in
its sole discretion, to require Dealer to satisfy any such Payment Obligation
by the Share Termination Alternative (as defined below) by giving irrevocable
telephonic notice to Dealer, confirmed in writing within one Scheduled Trading
Day, between the hours of 9:00 A.M. and 4:00 P.M. New York City time on the
Merger Date, Tender Offer Date, Announcement Date, Early Termination Date or
other date of termination, as applicable (“Notice of Share Termination”).  Within a commercially reasonable period of
time following receipt of a Notice of Share Termination, Dealer shall deliver
to Counterparty a number of Share Termination Delivery Units having a cash
value equal to the amount of such Payment Obligation (such number of Share
Termination Delivery Units to be delivered to be determined by the Calculation
Agent as the number of whole Share Termination Delivery Units that could be
purchased over a commercially reasonable period of time with the cash
equivalent of such payment obligation) (the “Share Termination Alternative”).

	
  Share Termination Delivery Unit:

  	
   

  	
  In the case of a Termination Event, Event of
  Default, Delisting or Additional Disruption Event, one Share or, in the case
  of an Insolvency, Nationalization, Merger Event or Tender Offer, one Share or
  a unit consisting of the number or amount of each type of property received
  by a holder of one Share (without consideration of any requirement to pay
  cash or other consideration in lieu of fractional amounts of any securities)
  in such Insolvency, Nationalization, Merger Event or Tender Offer. If such
  Insolvency, Nationalization, Merger Event or Tender Offer involves a choice
  of consideration to be received by holders, such holder shall be deemed to
  have elected to receive the maximum possible amount of cash.

  
	
   

  	
   

  	
   

  
	
  Failure to Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Other applicable provisions:

  	
   

  	
  If Share Termination Alternative is applicable, the
  provisions of Sections 9.8, 9.9, 9.10, 9.11 and 9.12 of the Equity
  Definitions will be applicable, except that all

  

 

 10
 

 

	
  

  	
   

  	
  references in such provisions to “Physical
  Settlement” shall be read as references to “Share Termination Alternative”
  and all references to “Shares” shall be read as references to “Share
  Termination Delivery Units”; and provided
  that the Representation and Agreement contained in Section 9.11 of the Equity
  Definitions shall be modified by excluding any representations therein
  relating to restrictions, obligations, limitations or requirements under
  applicable securities laws as a result of the fact that Buyer is the issuer
  of any Share Termination Delivery Units (or any part thereof).

  

14.   Net Share Settlement on Early Termination
and Certain Extraordinary Events.

(a)           Notwithstanding
Section 6(e) of the Agreement or Sections 12.7 or 12.8 of the Equity
Definitions, if, with respect to the Transaction contemplated hereunder, (A) an
Early Termination Date with respect to any Event of Default or any Termination
Event, (B) a Merger Date with respect to any Merger Event or Tender Offer Date
with respect to a Tender Offer, (C) a Closing Date with respect to an event
described in Section 12.6 of the Equity Definitions, or (D) date as of which
the Transaction is, or is deemed to have been, terminated or cancelled as a result
of an applicable Additional Disruption Event (any such date, the “Relevant
Date”) shall occur, then in lieu of calculating any payments hereunder
pursuant to Section 6(e) of the Agreement or Sections 12.7 or 12.8 of the
Equity Definitions, as applicable, the Calculation Agent, in its sole
discretion, shall determine the amount payable by Dealer to Counterparty on the
following basis:

(i)  such Relevant Date shall be the sole Exercise
Date hereunder and Automatic Exercise shall be applicable to the Number of
Options in each of the Components for which an Expiration Date has not occurred
(the “Unexpired Number”);

(ii)  Dealer shall deliver to the Counterparty the
Net Share Settlement Amount on the Settlement Date with respect to such
Relevant Date; and

(iii)  “Net Share Settlement Amount” shall
mean a number of Shares equal to (A) the Number of Shares to be Delivered (as
defined below) minus (B) the product of (x) the additional Shares per
Option (the “Additional Shares”) determined by reference to the table attached
as Annex B hereto based on the date on which such Relevant Date occurs and the
VWAP Price on such date, (y) the Unexpired Number, and (z) the Option
Entitlement.

(b)           Solely
for purposes of this Section 14, in respect of any Exercise Date deemed to
occur pursuant to paragraph (a) of this Section 14, subject to the last
sentence of Section 9.5 of the Equity Definitions, “Number of Shares to be
Delivered” shall mean, the product of (i) the Unexpired Number, (ii) the
Option Entitlement and (iii) (A) the excess
of the lower of (x) Strike Price 2 and (y) the VWAP Price on the
Valuation Date occurring on such Exercise Date over Strike
Price 1 divided  by
(B) such VWAP Price.  Notwithstanding
anything to the contrary in the Equity Definitions, if there is a Market
Disruption Event on any Valuation Date, then the Calculation Agent shall
determine the VWAP Price for such Valuation Date on the basis of its good faith
estimate, determined in a commercially reasonable manner, of the market value
for the relevant Shares on such Valuation Date.

(c)           With
respect to the determination of Additional Shares, if the actual VWAP Price is
between two VWAP Price amounts in the table or the Relevant Date is between two
Relevant Dates in the table, the Additional Shares shall be determined by a
straight-line interpolation between the number of Additional Shares set forth
for the next higher and next lower VWAP Price amounts and the two nearest
Relevant Dates, as applicable, based on a 365-day year.

(d)           With
respect to any adjustment to the terms of the Transaction, the Calculation
Agent, in its reasonable discretion, shall correspondingly adjust the
Additional Shares and/or the VWAP Prices (each as set forth in the table in
Annex B hereto) as of any date of such adjustments. For the avoidance of doubt,
any adjustment made to the Additional Shares and/or the VWAP Prices (each as
set forth in the table in Annex B hereto) shall be consistent with (i) the
adjustments made pursuant to the provisions of this Section 14 if such adjustments
were the result of an event which was outside of Counterparty’s control, and
(ii) the adjustments made pursuant to the applicable provisions of this
Confirmation if such adjustments were the result of an event which was within
Counterparty’s control.

 

 11
 

 

15.   Set-Off.  The parties agree to amend Section 6 of the
Agreement by adding a new Section 6(f) thereto as follows:

“(f)  Upon the occurrence of an Event of Default or
Termination Event with respect to a party who is the Defaulting Party or the
Affected Party (“X”), the other party (“Y”) will have the right
(but not be obliged) without prior notice to X or any other person to set-off
or apply any obligation of X under an Equity Contract owed to Y (or any
Affiliate of Y) (whether or not matured or contingent and whether or not
arising under the Agreement, and regardless of the currency, place of payment
or booking office of the obligation) against any obligation of Y (or any
Affiliate of Y) under an Equity Contract owed to X (whether or not matured or
contingent and whether or not arising under the Agreement, and regardless of
the currency, place of payment or booking office of the obligation).  Y will give notice to the other party of any
set-off effected under this Section 6(f).

“Equity
Contract” shall mean for purposes of this Section 6(f) any Transaction
relating to Shares between X and Y (or any Affiliate of Y) that qualifies as ‘equity’
under applicable accounting rules.

Amounts (or the
relevant portion of such amounts) subject to set-off may be converted by Y into
the Termination Currency at the rate of exchange at which such party would be
able, acting in a reasonable manner and in good faith, to purchase the relevant
amount of such currency.

If any obligation
is unascertained, Y may in good faith estimate that obligation and set-off in
respect of the estimate, subject to the relevant party accounting to the other
when the obligation is ascertained.

Nothing in this
Section 6(f) shall be effective to create a charge or other security
interest.  This Section 6(f) shall be
without prejudice and in addition to any right of set-off, combination of
accounts, lien or other right to which any party is at any time otherwise
entitled (whether by operation of law, contract or otherwise).”

16.   Amendments to Equity Definitions.

(a)           The following amendments shall be
made to the Equity Definitions and to the Agreement:

(i)  The first
sentence of Section 11.2(c) of the Equity Definitions, prior to clause (A)
thereof, is hereby amended to read as follows: ‘(c) If “Calculation Agent
Adjustment” is specified as the Method of Adjustment in the related
Confirmation of a Share Option Transaction, then following the announcement or
occurrence of any Potential Adjustment Event, the Calculation Agent will
determine whether such Potential Adjustment Event has a material effect on the
theoretical value of the relevant Shares or options on the Shares and, if so,
will (i) make appropriate adjustment(s), if any, to any one or more of:’; and

(ii)   Sections
11.2(a) and (e)(vii) of the Equity Definitions are hereby amended by deleting
the words “diluting or concentrative” and replacing them with “material”.

(b)  Solely for
purposes of applying the Equity Definitions and for purposes of this
Confirmation, any reference to a Strike Price shall be deemed to be a reference
to any of the Strike Price 1 or the 
Strike Price 2, or both, as appropriate.

17.   Disclosure.  Effective from the date of commencement of
discussions concerning the Transaction, Counterparty and each of its employees,
representatives, or other agents may disclose to any and all persons, without
limitation of any kind, the tax treatment and tax structure of the Transaction
and all materials of any kind (including opinions or other tax analyses) that
are provided to Counterparty relating to such tax treatment and tax structure.

 

 12
 

 

18.   Special Provisions for
Counterparty Payments.  The parties
hereby agree that, notwithstanding anything to the contrary herein or in the
Agreement, in the event that an Early Termination Date (whether as a result of
an Event of Default or a Termination Event) occurs or is designated with
respect to any Transaction after Counterparty has paid the Premium to Dealer
and, as a result, Counterparty owes to Dealer an amount calculated under
Section 6(e) of the Agreement (calculated as if the Transactions being
terminated on such Early Termination Date were the sole Transactions under the
Agreement), such amount shall be deemed to be zero.

19.   Unwind.  In the event the sale of the $150,000,000
0.50% Convertible Senior Notes due September 30, 2011 and the $150,000,000
0.75% Convertible Senior Notes due September 30, 2013 are not consummated with
the initial purchasers pursuant to the Purchase Agreement for any reason by the
close of business in New York on September 27, 2006 (or such later date as
agreed upon by the parties) (such date or such later date as agreed upon being
the “Accelerated Unwind Date”), this Transaction shall automatically
terminate (the “Accelerated Unwind”) on the Accelerated Unwind Date and
(i) this Transaction and all of the respective rights and obligations of Dealer
and Counterparty under this Transaction shall be cancelled and terminated and
(ii) each party shall be released and discharged by the other party from and
agrees not to make any claim against the other party with respect to any
obligations or liabilities of the other party arising out of and to be
performed in connection with this Transaction either prior to or after the
Accelerated Unwind Date.  Dealer and
Counterparty represent and acknowledge to the other that upon an Accelerated
Unwind, all obligations with respect to this Transaction shall be deemed fully
and finally discharged.

20.   Additional Provisions.

Regulation:            MLI is regulated by The Financial
Services Authority.

21.  Arbitration.

(a)           All
parties to this Confirmation are giving up the right to sue each other in
court, including the right to a trial by jury, except as provided by the rules
of the arbitration forum in which a claim is filed.

(b)           Arbitration
awards are generally final and binding; a party’s ability to have a court
reverse or modify an arbitration award is very limited.

(c)           The
ability of the parties to obtain documents, witness statements and other
discovery is generally more limited in arbitration than in court proceedings.

(d)           The
arbitrators do not have to explain the reason(s) for their award.

(e)           The
panel of arbitrators will typically include a minority of arbitrators who were
or are affiliated with the securities industry, unless Counterparty is a member
of the organization sponsoring the arbitration facility, in which case all
arbitrators may be affiliated with the securities industry.

(f)            The
rules of some arbitration forums may impose time limits for bringing a claim in
arbitration.  In some cases, a claim that
is ineligible for arbitration may be brought in court.

(g)           The
rules of the arbitration forum in which the claim is filed, and any amendments
thereto, shall be incorporated into this Confirmation.

(h)           Counterparty
agrees that any and all controversies that may arise between Counterparty and
Dealer, including, but not limited to, those arising out of or relating to the
Agreement or the Transaction hereunder, shall be determined by arbitration
conducted before The New York Stock Exchange, Inc. (“NYSE”) or NASD
Dispute Resolution (“NASD-DR”), or, if the NYSE and NASD-DR decline to
hear the matter, before the American Arbitration Association, in accordance
with their arbitration rules then in force. 
The award of the arbitrator shall be final, and judgment upon the award
rendered may be entered in any court, state or federal, having jurisdiction.

(i)            No
person shall bring a putative or certified class action to arbitration, nor
seek to enforce any pre-dispute arbitration agreement against any person who
has initiated in court a putative class action or who is a

 

 13
 

 

member of a putative class who
has not opted out of the class with respect to any claims encompassed by the
putative class action until: (i) the class certification is denied; (ii) the
class is decertified; or (iii) Counterparty is excluded from the class by the
court.

(j)            Such
forbearance to enforce an agreement to arbitrate shall not constitute a waiver
of any rights under this Confirmation except to the extent stated herein.

 

 14
 

 

Counterparty hereby agrees (a) to check this
Confirmation carefully and immediately upon receipt so that errors or
discrepancies can be promptly identified and rectified and (b) to confirm
that the foregoing (in the exact form provided by Dealer) correctly sets forth
the terms of the agreement between Dealer and Counterparty with respect to this
Transaction, by manually signing this Confirmation or this page hereof as
evidence of agreement to such terms and providing the other information
requested herein and immediately returning an executed copy to us.

	
  

  	
  Yours faithfully,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  	
  MERRILL LYNCH INTERNATIONAL

  
	
   

  	
   

  	
  By:

  	
  /s/ Angelina Lopes

  	
   

  
	
   

  	
   

  	
  Name: Angelina Lopes

  
	
   

  	
   

  	
  Title:

  

Agreed and Accepted By:

PRICELINE.COM INCORPORATED

	
  By:

  	
  /s/ Robert J.
  Mylod, Jr.

  	
   

  
	
   

  	
  Name: Robert J.
  Mylod, Jr.

  
	
   

  	
  Title: Chief
  Financial Officer

  

Acknowledged and agreed as to matters to the Agent:

MERRILL
LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

Solely in its capacity as Agent hereunder

	
  By:

  	
  /s/ Rhonda
  Garguilo

  	
   

  
	
   

  	
  Name: Rhonda
  Garguilo

  
	
   

  	
  Title:
  Authorized Signatory

  

 

 15
 

 

ANNEX A

	
  

  	
  Component

  	
   

  	
   

  	
   

  	
  Number of Options

  	
   

  	
   

  	
   

  	
  Expiration Date

  (7-Year)

  	
   

  
	
  1

  	
   

  	
  55,720

  	
   

  	
  23-Sep-13

  
	
  2

  	
   

  	
  55,720

  	
   

  	
  24-Sep-13

  
	
  3

  	
   

  	
  55,720

  	
   

  	
  25-Sep-13

  
	
  4

  	
   

  	
  55,720

  	
   

  	
  26-Sep-13

  
	
  5

  	
   

  	
  55,720

  	
   

  	
  27-Sep-13

  
	
  6

  	
   

  	
  55,720

  	
   

  	
  30-Sep-13

  
	
  7

  	
   

  	
  55,720

  	
   

  	
  1-Oct-13

  
	
  8

  	
   

  	
  55,720

  	
   

  	
  2-Oct-13

  
	
  9

  	
   

  	
  55,720

  	
   

  	
  3-Oct-13

  
	
  10

  	
   

  	
  55,720

  	
   

  	
  4-Oct-13

  
	
  11

  	
   

  	
  55,720

  	
   

  	
  7-Oct-13

  
	
  12

  	
   

  	
  55,720

  	
   

  	
  8-Oct-13

  
	
  13

  	
   

  	
  55,720

  	
   

  	
  9-Oct-13

  
	
  14

  	
   

  	
  55,720

  	
   

  	
  10-Oct-13

  
	
  15

  	
   

  	
  55,720

  	
   

  	
  11-Oct-13

  
	
  16

  	
   

  	
  55,720

  	
   

  	
  14-Oct-13

  
	
  17

  	
   

  	
  55,720

  	
   

  	
  15-Oct-13

  
	
  18

  	
   

  	
  55,720

  	
   

  	
  16-Oct-13

  
	
  19

  	
   

  	
  55,720

  	
   

  	
  17-Oct-13

  
	
  20

  	
   

  	
  55,720

  	
   

  	
  18-Oct-13

  

 

 16
 

 

ANNEX B

	
   

  	
   

  	
  VWAP Price

  	
   

  
	
   

  	
   

  	
  <$25.0

  	
   

  	
  $25.0

  	
   

  	
  $30.0

  	
   

  	
  $35.0

  	
   

  	
  $40.0

  	
   

  	
  $45.0

  	
   

  	
  $50.0

  	
   

  	
  $55.0

  	
   

  	
  $60.0

  	
   

  
	
  09/26/06

  	
   

  	
  0.000000

  	
   

  	
  -0.085498

  	
   

  	
  -0.085784

  	
   

  	
  -0.084541

  	
   

  	
  -0.082454

  	
   

  	
  0.022744

  	
   

  	
  0.115215

  	
   

  	
  0.109070

  	
   

  	
  0.096561

  	
   

  
	
  03/26/07

  	
   

  	
  0.000000

  	
   

  	
  -0.080741

  	
   

  	
  -0.082133

  	
   

  	
  -0.081798

  	
   

  	
  -0.080441

  	
   

  	
  0.024171

  	
   

  	
  0.116174

  	
   

  	
  0.109654

  	
   

  	
  0.096844

  	
   

  
	
  09/26/07

  	
   

  	
  0.000000

  	
   

  	
  -0.078798

  	
   

  	
  -0.083422

  	
   

  	
  -0.085315

  	
   

  	
  -0.085424

  	
   

  	
  0.025448

  	
   

  	
  0.116954

  	
   

  	
  0.110037

  	
   

  	
  0.096911

  	
   

  
	
  03/26/08

  	
   

  	
  0.000000

  	
   

  	
  -0.077842

  	
   

  	
  -0.083718

  	
   

  	
  -0.086550

  	
   

  	
  -0.087327

  	
   

  	
  0.026604

  	
   

  	
  0.117583

  	
   

  	
  0.110247

  	
   

  	
  0.096789

  	
   

  
	
  09/26/08

  	
   

  	
  0.000000

  	
   

  	
  -0.067480

  	
   

  	
  -0.074824

  	
   

  	
  -0.079170

  	
   

  	
  -0.081344

  	
   

  	
  0.027542

  	
   

  	
  0.117952

  	
   

  	
  0.110166

  	
   

  	
  0.096353

  	
   

  
	
  03/26/09

  	
   

  	
  0.000000

  	
   

  	
  -0.065926

  	
   

  	
  -0.074709

  	
   

  	
  -0.080227

  	
   

  	
  -0.083284

  	
   

  	
  0.024828

  	
   

  	
  0.114907

  	
   

  	
  0.106912

  	
   

  	
  0.092981

  	
   

  
	
  09/26/09

  	
   

  	
  0.000000

  	
   

  	
  -0.063630

  	
   

  	
  -0.074083

  	
   

  	
  -0.081019

  	
   

  	
  -0.085172

  	
   

  	
  0.021956

  	
   

  	
  0.111607

  	
   

  	
  0.103336

  	
   

  	
  0.089246

  	
   

  
	
  03/26/10

  	
   

  	
  0.000000

  	
   

  	
  -0.060473

  	
   

  	
  -0.072794

  	
   

  	
  -0.081405

  	
   

  	
  -0.086894

  	
   

  	
  0.019016

  	
   

  	
  0.108120

  	
   

  	
  0.099495

  	
   

  	
  0.085196

  	
   

  
	
  09/26/10

  	
   

  	
  0.000000

  	
   

  	
  -0.056080

  	
   

  	
  -0.070541

  	
   

  	
  -0.081220

  	
   

  	
  -0.088422

  	
   

  	
  0.015902

  	
   

  	
  0.104274

  	
   

  	
  0.095169

  	
   

  	
  0.080586

  	
   

  
	
  03/26/11

  	
   

  	
  0.000000

  	
   

  	
  -0.050234

  	
   

  	
  -0.067013

  	
   

  	
  -0.080189

  	
   

  	
  -0.089568

  	
   

  	
  0.012710

  	
   

  	
  0.100102

  	
   

  	
  0.090356

  	
   

  	
  0.075395

  	
   

  
	
  09/27/11

  	
   

  	
  0.000000

  	
   

  	
  -0.042194

  	
   

  	
  -0.061417

  	
   

  	
  -0.077757

  	
   

  	
  -0.090118

  	
   

  	
  0.009306

  	
   

  	
  0.095278

  	
   

  	
  0.084605

  	
   

  	
  0.069112

  	
   

  
	
  03/26/12

  	
   

  	
  0.000000

  	
   

  	
  -0.031702

  	
   

  	
  -0.052911

  	
   

  	
  -0.073078

  	
   

  	
  -0.089542

  	
   

  	
  0.005833

  	
   

  	
  0.089693

  	
   

  	
  0.077666

  	
   

  	
  0.061433

  	
   

  
	
  09/26/12

  	
   

  	
  0.000000

  	
   

  	
  -0.017999

  	
   

  	
  -0.039156

  	
   

  	
  -0.063774

  	
   

  	
  -0.086547

  	
   

  	
  0.002168

  	
   

  	
  0.082349

  	
   

  	
  0.068057

  	
   

  	
  0.050739

  	
   

  
	
  03/26/13

  	
   

  	
  0.000000

  	
   

  	
  -0.003869

  	
   

  	
  -0.017369

  	
   

  	
  -0.043749

  	
   

  	
  -0.076748

  	
   

  	
  -0.001452

  	
   

  	
  0.070662

  	
   

  	
  0.052003

  	
   

  	
  0.033408

  	
   

  
	
  09/23/13

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  

 

	
   

  	
   

  	
  VWAP Price

  	
   

  
	
   

  	
   

  	
  $65.0

  	
   

  	
  $70.0

  	
   

  	
  $75.0

  	
   

  	
  $80.0

  	
   

  	
  $85.0

  	
   

  	
  $90.0

  	
   

  	
  $95.0

  	
   

  	
  $100.0

  	
   

  	
  $105.0

  	
   

  
	
  09/26/06

  	
   

  	
  0.086331

  	
   

  	
  0.077848

  	
   

  	
  0.070727

  	
   

  	
  0.064686

  	
   

  	
  0.059511

  	
   

  	
  0.055040

  	
   

  	
  0.051147

  	
   

  	
  0.047733

  	
   

  	
  0.044720

  	
   

  
	
  03/26/07

  	
   

  	
  0.086372

  	
   

  	
  0.077695

  	
   

  	
  0.070418

  	
   

  	
  0.064250

  	
   

  	
  0.058974

  	
   

  	
  0.054421

  	
   

  	
  0.050462

  	
   

  	
  0.046996

  	
   

  	
  0.043942

  	
   

  
	
  09/26/07

  	
   

  	
  0.086188

  	
   

  	
  0.077310

  	
   

  	
  0.069874

  	
   

  	
  0.063580

  	
   

  	
  0.058203

  	
   

  	
  0.053572

  	
   

  	
  0.049552

  	
   

  	
  0.046039

  	
   

  	
  0.042949

  	
   

  
	
  03/26/08

  	
   

  	
  0.085802

  	
   

  	
  0.076717

  	
   

  	
  0.069117

  	
   

  	
  0.062696

  	
   

  	
  0.057221

  	
   

  	
  0.052514

  	
   

  	
  0.048437

  	
   

  	
  0.044881

  	
   

  	
  0.041761

  	
   

  
	
  09/26/08

  	
   

  	
  0.085090

  	
   

  	
  0.075790

  	
   

  	
  0.068026

  	
   

  	
  0.061479

  	
   

  	
  0.055910

  	
   

  	
  0.051134

  	
   

  	
  0.047008

  	
   

  	
  0.043420

  	
   

  	
  0.040280

  	
   

  
	
  03/26/09

  	
   

  	
  0.081667

  	
   

  	
  0.072365

  	
   

  	
  0.064634

  	
   

  	
  0.058145

  	
   

  	
  0.052651

  	
   

  	
  0.047962

  	
   

  	
  0.043929

  	
   

  	
  0.040439

  	
   

  	
  0.037398

  	
   

  
	
  09/26/09

  	
   

  	
  0.077858

  	
   

  	
  0.068545

  	
   

  	
  0.060848

  	
   

  	
  0.054426

  	
   

  	
  0.049020

  	
   

  	
  0.044433

  	
   

  	
  0.040512

  	
   

  	
  0.037138

  	
   

  	
  0.034215

  	
   

  
	
  03/26/10

  	
   

  	
  0.073708

  	
   

  	
  0.064375

  	
   

  	
  0.056715

  	
   

  	
  0.050369

  	
   

  	
  0.045068

  	
   

  	
  0.040603

  	
   

  	
  0.036815

  	
   

  	
  0.033578

  	
   

  	
  0.030795

  	
   

  
	
  09/26/10

  	
   

  	
  0.068962

  	
   

  	
  0.059599

  	
   

  	
  0.051985

  	
   

  	
  0.045739

  	
   

  	
  0.040572

  	
   

  	
  0.036264

  	
   

  	
  0.032645

  	
   

  	
  0.029584

  	
   

  	
  0.026977

  	
   

  
	
  03/26/11

  	
   

  	
  0.063592

  	
   

  	
  0.054194

  	
   

  	
  0.046648

  	
   

  	
  0.040538

  	
   

  	
  0.035551

  	
   

  	
  0.031451

  	
   

  	
  0.028053

  	
   

  	
  0.025217

  	
   

  	
  0.022834

  	
   

  
	
  09/27/11

  	
   

  	
  0.057071

  	
   

  	
  0.047650

  	
   

  	
  0.040226

  	
   

  	
  0.034333

  	
   

  	
  0.029622

  	
   

  	
  0.025827

  	
   

  	
  0.022748

  	
   

  	
  0.020230

  	
   

  	
  0.018154

  	
   

  
	
  03/26/12

  	
   

  	
  0.049115

  	
   

  	
  0.039737

  	
   

  	
  0.032566

  	
   

  	
  0.027054

  	
   

  	
  0.022791

  	
   

  	
  0.019469

  	
   

  	
  0.016861

  	
   

  	
  0.014796

  	
   

  	
  0.013146

  	
   

  
	
  09/26/12

  	
   

  	
  0.038192

  	
   

  	
  0.029146

  	
   

  	
  0.022634

  	
   

  	
  0.017937

  	
   

  	
  0.014535

  	
   

  	
  0.012053

  	
   

  	
  0.010225

  	
   

  	
  0.008862

  	
   

  	
  0.007833

  	
   

  
	
  03/26/13

  	
   

  	
  0.021587

  	
   

  	
  0.014286

  	
   

  	
  0.009856

  	
   

  	
  0.007185

  	
   

  	
  0.005568

  	
   

  	
  0.004573

  	
   

  	
  0.003940

  	
   

  	
  0.003521

  	
   

  	
  0.003228

  	
   

  
	
  09/23/13

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  

 

	
   

  	
   

  	
  VWAP Price

  	
   

  
	
   

  	
   

  	
  $110.0

  	
   

  	
  $115.0

  	
   

  	
  $120.0

  	
   

  	
  $125.0

  	
   

  	
  $130.0

  	
   

  	
  $140.0

  	
   

  	
  $150.0

  	
   

  	
  $200.0

  	
   

  	
  $250 or

  more

  	
   

  
	
  09/26/06

  	
   

  	
  0.042045

  	
   

  	
  0.039656

  	
   

  	
  0.037514

  	
   

  	
  0.035583

  	
   

  	
  0.033835

  	
   

  	
  0.030797

  	
   

  	
  0.028252

  	
   

  	
  0.019990

  	
   

  	
  0.015503

  	
   

  
	
  03/26/07

  	
   

  	
  0.041235

  	
   

  	
  0.038822

  	
   

  	
  0.036661

  	
   

  	
  0.034717

  	
   

  	
  0.032959

  	
   

  	
  0.029913

  	
   

  	
  0.027369

  	
   

  	
  0.019179

  	
   

  	
  0.014790

  	
   

  
	
  09/26/07

  	
   

  	
  0.040215

  	
   

  	
  0.037784

  	
   

  	
  0.035611

  	
   

  	
  0.033659

  	
   

  	
  0.031899

  	
   

  	
  0.028856

  	
   

  	
  0.026325

  	
   

  	
  0.018255

  	
   

  	
  0.013992

  	
   

  
	
  03/26/08

  	
   

  	
  0.039008

  	
   

  	
  0.036564

  	
   

  	
  0.034385

  	
   

  	
  0.032432

  	
   

  	
  0.030676

  	
   

  	
  0.027649

  	
   

  	
  0.025143

  	
   

  	
  0.017237

  	
   

  	
  0.013132

  	
   

  
	
  09/26/08

  	
   

  	
  0.037516

  	
   

  	
  0.035071

  	
   

  	
  0.032896

  	
   

  	
  0.030954

  	
   

  	
  0.029211

  	
   

  	
  0.026220

  	
   

  	
  0.023757

  	
   

  	
  0.016087

  	
   

  	
  0.012180

  	
   

  
	
  03/26/09

  	
   

  	
  0.034734

  	
   

  	
  0.032386

  	
   

  	
  0.030307

  	
   

  	
  0.028457

  	
   

  	
  0.026804

  	
   

  	
  0.023982

  	
   

  	
  0.021673

  	
   

  	
  0.014587

  	
   

  	
  0.011038

  	
   

  
	
  09/26/09

  	
   

  	
  0.031668

  	
   

  	
  0.029437

  	
   

  	
  0.027471

  	
   

  	
  0.025730

  	
   

  	
  0.024182

  	
   

  	
  0.021557

  	
   

  	
  0.019427

  	
   

  	
  0.013002

  	
   

  	
  0.009845

  	
   

  
	
  03/26/10

  	
   

  	
  0.028387

  	
   

  	
  0.026291

  	
   

  	
  0.024457

  	
   

  	
  0.022843

  	
   

  	
  0.021416

  	
   

  	
  0.019017

  	
   

  	
  0.017090

  	
   

  	
  0.011391

  	
   

  	
  0.008646

  	
   

  
	
  09/26/10

  	
   

  	
  0.024743

  	
   

  	
  0.022816

  	
   

  	
  0.021144

  	
   

  	
  0.019685

  	
   

  	
  0.018405

  	
   

  	
  0.016277

  	
   

  	
  0.014589

  	
   

  	
  0.009714

  	
   

  	
  0.007412

  	
   

  
	
  03/26/11

  	
   

  	
  0.020817

  	
   

  	
  0.019099

  	
   

  	
  0.017625

  	
   

  	
  0.016353

  	
   

  	
  0.015249

  	
   

  	
  0.013438

  	
   

  	
  0.012024

  	
   

  	
  0.008046

  	
   

  	
  0.006194

  	
   

  
	
  09/27/11

  	
   

  	
  0.016431

  	
   

  	
  0.014990

  	
   

  	
  0.013774

  	
   

  	
  0.012741

  	
   

  	
  0.011857

  	
   

  	
  0.010433

  	
   

  	
  0.009344

  	
   

  	
  0.006354

  	
   

  	
  0.004954

  	
   

  
	
  03/26/12

  	
   

  	
  0.011816

  	
   

  	
  0.010732

  	
   

  	
  0.009840

  	
   

  	
  0.009098

  	
   

  	
  0.008475

  	
   

  	
  0.007492

  	
   

  	
  0.006756

  	
   

  	
  0.004741

  	
   

  	
  0.003749

  	
   

  
	
  09/26/12

  	
   

  	
  0.007043

  	
   

  	
  0.006425

  	
   

  	
  0.005934

  	
   

  	
  0.005536

  	
   

  	
  0.005207

  	
   

  	
  0.004692

  	
   

  	
  0.004304

  	
   

  	
  0.003154

  	
   

  	
  0.002519

  	
   

  
	
  03/26/13

  	
   

  	
  0.003010

  	
   

  	
  0.002839

  	
   

  	
  0.002698

  	
   

  	
  0.002577

  	
   

  	
  0.002471

  	
   

  	
  0.002288

  	
   

  	
  0.002133

  	
   

  	
  0.001599

  	
   

  	
  0.001279

  	
   

  
	
  09/23/13

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  	
  0.000000

  	
   

  

 

 

 17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]