Document:

Exhibit 10.2

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN PORTIONS OF THIS
AGREEMENT, CONFIDENTIAL PORTIONS HAVE BEEN OMMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION.

 

PRICELINE.COM  INCORPORATED 1999 OMNIBUS PLAN

 

PERFORMANCE SHARE UNIT AGREEMENT

 

THIS PERFORMANCE SHARE UNIT AGREEMENT (“Agreement”) is
made as of the 4th day of March, 2010 by and between priceline.com
Incorporated, a Delaware corporation, with its principal United States office
at 800 Connecticut Avenue, Norwalk, Connecticut 06854, and
                                      
(the “Participant”).

 

WITNESSETH:

 

Pursuant to terms of the priceline.com Incorporated
1999 Omnibus Plan (the “Plan”), the Compensation Committee of the Board has
authorized this Agreement.  The
Participant has been granted as of March 4, 2010 (the “Grant Date”) the
number of performance share units (the “Performance Share Units”) set forth
below.  Unless otherwise indicated, any
capitalized term used herein, but not defined herein, shall have the meaning
ascribed to such term in the Plan.  The
Performance Share Units comprising this award may be recorded in an unfunded
Performance Share Unit account in the Participant’s name maintained by the
Company.  The Participant will have no
rights as a stockholder of the Company by virtue of any Performance Share Unit
awarded to the Participant until shares of Stock (as defined below), if any,
are issued to the Participant as described in this Agreement.

 

1.                                      Definitions

 

(a)                                 “Company” shall mean priceline.com
Incorporated, any of its subsidiaries or affiliates.

 

(b)                                 “Consolidated
Pro Forma EBITDA” shall mean the Company’s operating income, excluding
depreciation and amortization expense and including the impact of foreign
currency transactions and other expense, all determined in accordance with U.S.
GAAP, adjusted to exclude the impact of those items excluded from the non-GAAP
financial metric “pro forma EBITDA,” as publicly disclosed annually or
quarterly, as applicable, by the Company in connection with the Company’s
annual and quarterly earnings announcements. 
Consolidated Pro Forma EBITDA as publicly disclosed typically excludes
and/or includes items that are, among other things, non-cash in nature, or
related to unusual or non-recurring events, or in response to changes in laws
or regulations, or to account for gains, losses or expenses determined to be
extraordinary or unusual in nature or infrequent in occurrence, or are
unpredictable as to amount or timing, not driven by core operating results and
render comparisons with prior periods less meaningful, or related to the
acquisition of a business or the disposition of a business or a segment of a
business, or related to a change in accounting principles.  Consolidated Pro Forma EBITDA shall also be
adjusted (i) to exclude the financial results from any acquisition or to
include the prospective forecasted results for any disposition of a business or
a segment of a business made during the Performance Period and (ii) to exclude the on-going impact of change 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

 

in accounting principles.  Notwithstanding the foregoing, in determining
Consolidated Pro Forma EBITDA, the Committee shall have the authority to make
additional adjustments that it considers, in its good faith judgment, necessary
to maintain the intent and principles consistent with the foregoing
adjustments.

 

(c)                                  “Continuous Service” shall mean the
Participant’s service with the Company or any Subsidiary or Affiliate whether
as an employee, director or consultant, which is not interrupted or terminated.

 

(d)                                 “Cumulative Consolidated Pro Forma EBITDA”
shall mean the Consolidated Pro Forma EBITDA during the Performance Period,
calculated on a cumulative basis, net of any losses.

 

(e)                                  “Determination Date” shall mean March 1,
2013.

 

(f)                                   “Disability” shall mean that (i) the
Participant is unable to engage in any substantial gainful activity by reason
of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period
of not less than twelve (12) months or (ii) the Participant is, by reason
of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period
of not less than twelve (12) months, receiving income replacement benefits for
a period of not less than three (3) months under an accident and health
plan covering employees of the Company.

 

(g)                                  “Good Reason” shall mean (i) a
material diminution in the Participant’s authority, duties or responsibilities,
(ii) relocation of the Company’s executive office in Connecticut to a
location more than thirty-five (35) miles from its current location or more
than thirty-five (35) miles further from the Participant’s residence at the
time of relocation, or (iii) any material breach of an employment
agreement, if any, that is in effect at any time between the Participant and
the Company.

 

Before a termination by a
Participant will constitute termination for Good Reason, the Participant must
give the Company a Notice of Good Reason within ninety (90) calendar days
following the occurrence of the event that constitutes Good Reason.  Failure to provide such Notice of Good Reason
within such 90-day period shall be conclusive proof that the Participant shall
not have Good Reason to terminate employment.

 

Good Reason shall exist
only if (A) the Employer fails to remedy the event or events constituting
Good Reason within thirty (30) calendar days after receipt of the Notice of
Good Reason from the Participant and (B) the Participant terminates his or
her employment within sixty (60) days after the end of the period set forth in
clause (A) above.  If the
Participant determines that Good Reason for termination exists and timely files
a Notice of Good Reason, such determination shall be presumed to be true and
the Company will have the burden of proving that Good Reason does not exist.

 

(h)                                 “Notice of Good Reason” means a written
notice by the Participant to the Company which sets forth in reasonable detail
the specific reason for a termination of employment for Good Reason and the
facts and circumstances claimed to provide a basis for 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

2

 

such termination and is
provided to the Company in accordance with the terms set forth in Section 1(g) hereof.

 

(i)                                     “Performance Period” shall mean the
period commencing on January 1, 2010 and ending on December 31, 2012.

 

(j)                                    “Plan Year” shall mean the calendar year.

 

(k)                                 “Stock” shall mean shares of common
stock, par value $0.008, of the Company.

 

(l)                                     “Target Amount” shall have the meaning
given such term under Section 2.

 

(m)                             “Vesting Factor” means the factor by
which to multiply the Target Amount determined in accordance with the following
table:

 

	
  If the Cumulative Consolidated Pro Forma

  EBITDA for the Performance Period is:

  	
   

  	
  Then the Vesting Factor or Vesting

  Factor Range is:

  
	
  [***]

  	
   

  	
  1x

  
	
  [***]

  	
   

  	
  1x to 2x

  
	
  [***]

  	
   

  	
  2x

  

 

2.                                      The Grant

 

Subject to the terms and conditions set forth herein,
the Participant is granted
                    
(                    )
Performance Share Units as of the Grant Date (the “Target Amount”).

 

3.                                      Vesting; Effect of Termination of
Continuous Service; Change in Control

 

(a)                                 Vesting at End of Performance Period. 
If the Participant remains in Continuous Service through and including
the Determination Date and no Change in Control occurs prior to the
Determination Date, then the Participant shall be entitled to receive a number
of shares of Stock determined by multiplying the Target Amount by the
Applicable Vesting Factor.  The “Applicable
Vesting Factor” shall be equal to either (i) the sole Vesting Factor that
corresponds to the actual Cumulative Consolidated Pro Forma EBITDA set forth in
the table in Section 1(m) above in the event there is no Vesting
Factor Range, or (ii) the sum of (A) the lowest Vesting Factor in the
applicable Vesting Factor Range that corresponds to the actual Cumulative
Consolidated Pro Forma EBITDA set forth in the table in Section 1(m) above,
plus (B) the ProRata Vesting Factor Increase.  The “ProRata Vesting Factor Increase” is the
quotient of (1) the excess of the actual Cumulative Consolidated Pro Forma
EBITDA over the lowest Cumulative Consolidated Pro Forma EBITDA in the range of
numbers in which the actual Cumulative Consolidated Pro Forma EBITDA falls (set
forth in the table in Section 1(m) above), divided by (2) the
result of a fraction, the numerator of which is the difference between the
lowest and highest Cumulative Consolidated Pro Forma EBITDA in the range of
numbers in which the actual Cumulative Consolidated Pro Forma EBITDA falls (set
forth in the table in Section 1(m) above), and the denominator of
which is the difference between the lowest and highest applicable Vesting
Factor in the applicable Vesting Factor Range (set forth in the table in Section 1(m) above).  All shares of Stock to be issued to the
Participant under this Section 3(a), if any, shall be issued to the
Participant as soon as practicable after the Determination Date but in 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

3

 

no event later than March 15,
2013.  If the Participant becomes
entitled to any shares of Stock under this Section 3(a), he or she shall
not be entitled to receive any shares of Stock under any other subsection of
this Section 3.

 

(b)                                 Termination for Cause. 
If, prior to the Determination Date, the Participant’s Continuous
Service is (i) terminated by the Company
for Cause or (ii) voluntarily terminated by the Participant
other than on account of Good Reason,
death or Disability, then the Participant shall receive no shares of Stock
under this Agreement.

 

(c)                                  Termination Prior to a Change in Control. 
If, prior to the Determination Date and prior to a Change in Control,
the Participant’s Continuous Service is terminated by the Company other than
for Cause or by the Participant on account of Good Reason, death or Disability,
then the Participant’s Performance Share Unit number shall be determined (or
that of the Participant’s designated beneficiary in the event of the
Participant’s death) in accordance with Exhibit 1, and the
Participant shall at the time of such termination be vested in a number of
shares of Stock determined by the product of (i) such Performance Share
Unit number, multiplied by (ii) a fraction, the numerator of which is the
lesser of 36 or the number of full months completed since January 1, 2010
as of the date of such termination, and the denominator of which is 36.  Subject to Section 3(f), all shares of
Stock to be issued to the Participant under this Section 3(c), if any,
shall be issued to the Participant (or the Participant’s designated beneficiary
in the event of the Participant’s death) as soon as practicable after the
Participant’s Continuous Service is terminated but in no event later than March 15
of the calendar year following the calendar year in which the Participant’s
Continuous Service is terminated (or, if the Participant’s Continuous Service
is terminated on or after January 1, 2013, March 15, 2013).  If the Participant becomes entitled to any
shares of Stock under this Section 3(c), he or she shall not be entitled
to receive any shares of Stock under any other subsection of this Section 3.

 

(d)                                 Change in Control. 
If a Change in Control occurs prior to the Determination Date and the
Participant remains in Continuous Service through and including the
Determination Date, then the Participant’s Performance Share Unit number shall
be determined in accordance with Exhibit 1, and the Participant
shall be vested in (i) if the Change in Control occurs prior to January 1,
2013, the sum of (A) a number of shares of Stock determined by multiplying
such Performance Share Unit number by a fraction, the numerator of which is the
lesser of 36 and the number of full months completed since January 1, 2010
as of the date of such Change in Control, and the denominator of which is 36,
and (B) a number of shares of Stock equal to the product of the Target
Amount, multiplied by the fraction, the numerator of which is the number of
full months that have been completed during the period commencing on the Change
in Control and ending on December 31, 2012 (plus one (1) if the
Change in Control occurs on any day of the month other than the first or last
day), and the denominator of which is 36, or (ii) if the Change in Control
occurs on or after January 1, 2013, a number of shares of Stock equal to
the Performance Share Unit number.  All
shares of Stock to be issued to the Participant under this Section 3(d),
if any, shall be issued to the Participant as soon as practicable after the
Determination Date but in no event later than March 15, 2013.  If the Participant becomes entitled to any
shares of Stock under this Section 3(d), he or she shall not be entitled
to receive any shares of Stock under any other subsection of this Section 3.

 

(e)                                  Termination Coincident with or Following
a Change in Control.  If a Change in Control occurs prior to the
Determination Date, and the Participant’s Continuous Service is terminated
prior to the Determination Date in connection with such Change in Control or 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

4

 

following such Change in
Control  by the Company other than
for Cause or by the Participant on account of Good Reason, death or Disability,
then the Participant’s Performance Share Unit number (or that of the
Participant’s designated beneficiary in the event of the Participant’s death)
shall be determined in accordance with Exhibit 1, and the
Participant shall be vested at the time of such termination in (i) if the
termination occurs prior to January 1, 2013, the sum of (A) a number
of shares of Stock determined by multiplying such Performance Share Unit number
by a fraction, the numerator of which is the lesser of 36 and the number of
full months completed since January 1, 2010 as of the effective date of
such Change in Control, and the denominator of which is 36, and (B) a
number of shares of Stock equal to the product of the Target Amount, multiplied
by the fraction, the numerator of which is the number of full months that have
been completed during the period commencing on the effective date of the Change
in Control and ending on the earlier of December 31, 2012 or the date of
such termination (plus one (1) if the termination occurs on any day of the
month other than the first or last day), and the denominator of which is 36, or
(ii) if the termination occurs on or after January 1, 2013, a number
of shares of Stock equal to the Performance Share Unit number.  Subject to Section 3(f), all shares of
Stock to be issued to the Participant under this Section 3(e) as a
result of the Participant’s termination of Continuous Service on or after the
effective date of the Change in Control, if any, shall be issued to the
Participant (or the Participant’s designated beneficiary in the event of the
Participant’s death) as soon as practicable after the Participant’s Continuous
Service is terminated but in no event later than March 15 of the calendar year
following the calendar year in which the Participant’s Continuous Service is
terminated.  If the Participant becomes
entitled to any shares of Stock under this Section 3(e), he or she shall
not be entitled to receive any shares of Stock under any other subsection of
this Section 3.

 

(f)                                   Notwithstanding anything in this
Agreement to the contrary, if the Participant is a “specified employee” (within
the meaning of Section 409A of the Code) and the issuance of the shares of
Stock pursuant to Sections 3(c) and 3(e) is considered to be a “deferral
of compensation” (as such phrase is defined for purposes of Section 409A
of the Code), then the Participant’s date of issuance of the shares of Stock
shall be the date that is the first day of the seventh month after the date of
the Participant’s “separation from service” with the Company (determined in
accordance with Section 409A of the Code).

 

(g)                                  For purposes of calculations made under
this Section 3, results shall be rounded to the nearest 100th using the common
rounding method (i.e., increase the last digit by 1 if the next digit is
5 or more).

 

4.                                      Nontransferability of Grant

 

Except as otherwise provided herein or in the Plan, no
Performance Share Units shall be assigned, negotiated, pledged, or hypothecated
in any way or be subject to execution, attachment or similar process.  No transfer of the Participant’s rights with
respect to such Performance Share Units, whether voluntary or involuntary, by
operation of law or otherwise, shall be permitted.  Immediately upon any attempt to transfer such
rights, such Performance Share Units, and all of the rights related thereto,
shall be forfeited by the Participant.

 

5.                                      Distribution and Voting Rights

 

Performance Share Units shall have no distribution,
dividend or voting rights.

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

5

 

6.                                      Stock; Adjustment Upon Certain Events

 

(a)                                 Stock to be issued under this Agreement,
if any, shall be made available, at the discretion of the Board, either from
authorized but unissued Stock, from issued Stock reacquired by the Company or
from Stock purchased by the Company on the open market specifically for this
purpose.

 

(b)                                 The existence of this Agreement and the
Performance Share Units granted hereunder shall not affect in any way the right
or power of the Board or the stockholders of the Company to make or authorize
any adjustment, recapitalization, reorganization or other change in the Company’s
capital structure or its business, any merger or consolidation of the Company
or any affiliate, any issue of bonds, debentures, preferred or prior preference
stocks ahead of or affecting the Stock, the authorization or issuance of
additional shares of Stock, the dissolution or liquidation of the Company or
any affiliate or sale or transfer of all or part of the assets or business of
the Company or any affiliate, or any other corporate act or proceeding.

 

(c)                                  Upon a Change in Control, the purchaser(s) of
the Company’s assets or stock or the surviving entity in a merger or
consolidation may, in his, her or its discretion, deliver to the Participant
the same kind of consideration that is delivered to the stockholders of the
Company as a result of such Change in Control, or the Board may cancel all
outstanding Performance Share Units in exchange for consideration in cash or in
kind which consideration in both cases shall be determined by the Board.

 

(d)                                 In the event of any dividend or other
distribution (whether in the form of cash, Stock, or other property),
recapitalization, Stock split, reverse split, reorganization, merger,
consolidation, spin-off, combination, repurchase, or share exchange, or other
similar corporate transaction or event that affects the Stock such that an
adjustment is required in order to prevent dilution or enlargement of the
rights of holders of Performance Share Units under the Plan, then the Committee
shall make such equitable changes or adjustments to any or all of (i) the
number and kind of shares of Stock or other property (including cash) that may
thereafter be issued in connection with the Performance Share Units granted
under the Plan, (ii) the number and kind of shares of Stock or other
property (including cash) issued or issuable in respect of outstanding
Performance Share Units, (iii) performance targets, and (iv) any
individual limitations applicable to the Performance Share Units granted under
the Plan.

 

7.                                      Determinations

 

The Committee (by proper delegation or otherwise)
shall determine the extent to which an award has been earned, if at all, in
accordance with Section 3 of this Agreement on or prior to the
Determination Date.  Such determination
and all other determinations, interpretations or other actions made or taken
pursuant to the provisions of this Agreement by the Committee in good faith
shall be final, conclusive and binding for all purposes and upon all persons,
including, without limitation, the Participant and the Company, and their
respective heirs, executors, administrators, personal representatives and other
successors in interest.

 

8.                                      Other Conditions

 

The transfer of any Stock under this Agreement, if
any, shall be effective only at such time as counsel to the Company shall have
determined that the issuance and delivery of such 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

6

 

Stock is in compliance
with all applicable laws, regulations of governmental authority and the
requirements of any securities exchange on which Stock is traded.

 

9.                                      Withholding Taxes

 

The Participant shall be liable for any and all taxes
and contributions of any kind required by law to be withheld with respect to
the delivery of any shares of Stock under this Agreement.  The Participant agrees that the Participant’s
employer may, in its discretion, (a) require the Participant to remit to
the Company on the date on which the Participant becomes the owner of shares of
Stock under this Agreement cash in an amount sufficient to satisfy all
applicable required withholding taxes and social security contributions related
to such vesting, (b) deduct from his or her regular salary payroll cash,
on a payroll date coincident with or following the date on which the
Participant becomes the owner of shares of Stock under this Agreement, in an
amount sufficient to satisfy such obligations, or (c) withhold from the
total number of shares of Stock the Participant is to receive on a
determination date a number of shares that has a total value equal to the
amount necessary to satisfy any and all such withholding tax obligations.

 

10.                               Distribution of Stock

 

Subject to Section 8,
the Company shall cause the Participant to be the record owner of any shares of
Stock to which the Participant becomes entitled to receive under this Agreement
in accordance with the payment terms described in Section 3.

 

11.                               Incorporation of the Plan

 

The Plan, as it exists on the date of this Agreement
and as amended from time to time, is hereby incorporated by reference and made
a part hereof, and the Performance Share Units and this Agreement shall be
subject to all terms and conditions of the Plan.  In the event of any conflict between the
provisions of this Agreement and the provisions of the Plan, the terms of the
Plan shall control, except as expressly stated otherwise.

 

12.                               Miscellaneous

 

(a)                                 This Agreement shall inure to the benefit
of and be binding upon the parties hereto and their respective heirs, personal
legal representatives, successors, trustees, administrators, distributees,
devisees and legatees.  The Company shall
assign to, and require, any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to expressly assume and agree in writing to
perform this Agreement.  Notwithstanding
the foregoing, this Agreement may not be assigned by the Participant.

 

(b)                                 The Participant acknowledges that the
Company intends for the information contained in Section 1(m) and Exhibit 1
hereof to remain confidential. 
Notwithstanding any other provision hereof, the Participant’s entitlement
to any award or payment hereunder is contingent upon the Participant
maintaining the confidentiality of the information contained in Section 1(m) and
Exhibit 1.  The Participant
agrees that he or she shall not disclose or cause the disclosure of such
information and shall hold such information confidential.

 

(c)                                  No modification or waiver of any of the
provisions of this Agreement shall be effective unless in writing and signed by
the party against whom it is sought to be enforced.  To 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

7

 

the extent applicable, it
is intended that this Agreement comply with the provisions of Section 409A
of the Code, so that the income inclusion provisions of Section 409A(a)(1) of
the Code do not apply to the Participant. 
This Agreement shall be administered in a manner consistent with this
intent.  References to Section 409A
of the Code will also include any regulations or any other formal guidance
promulgated with respect to such Section by the U.S. Department of the
Treasury or the Internal Revenue Service.

 

(d)                                 This Agreement may be executed in one or
more counterparts, all of which taken together shall constitute one agreement.

 

(e)                                  The failure of any party hereto at any
time to require performance by another party of any provision of this Agreement
shall not affect the right of such party to require performance of that
provision, and any waiver by any party of any breach of any provision of this
Agreement shall not be construed as a waiver of any continuing or succeeding
breach of such provision, a waiver of the provision itself, or a waiver of any
right under this Agreement.

 

(f)                                   The headings of the sections of this
Agreement have been inserted for convenience of reference only and shall in no
way restrict or modify any of the terms or provisions hereof.

 

(g)                                  The Company shall pay all fees and
expenses necessarily incurred by the Company in connection with this Agreement
and will from time to time use its reasonable efforts to comply with all laws
and regulations which, in the opinion of counsel to the Company, are applicable
thereto.

 

(h)                                 All notices, consents, requests,
approvals, instructions and other communications provided for herein shall be
in writing and validly given or made when delivered, or on the second
succeeding business day after being mailed by registered or certified mail,
whichever is earlier, to the persons entitled or required to receive the same,
at the addresses set forth at the heading of this Agreement or to such other
address as either party may designate by like notice.  Notices to the Company shall be addressed to
its principal office, attention of the Company’s General Counsel.

 

(i)                                     The Plan and this Agreement constitute
the entire Agreement and understanding between the parties with respect to the
matters described herein and supersede all prior and contemporaneous agreements
and understandings, oral and written, between the parties with respect to such
subject matter.

 

(j)                                    This Agreement shall be governed and
construed and the legal relationships of the parties determined in accordance
with the laws of the state of Delaware without reference to principles of
conflict of laws.

 

(k)                                 The Company represents and warrants that
it is duly authorized by its Board and/or the Committee (and by any other
person or body whose authorization is required) to enter into this Agreement,
that there is no agreement or other legal restriction which would prevent it
from entering into, and carrying out its obligations under, this Agreement, and
that the officer signing this Agreement is duly authorized and empowered to
sign this Agreement on behalf of the Company.

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

8

 

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

 

	
  PRICELINE.COM
  INCORPORATED

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Jeffery Boyd

  	
   

  
	
  Chief Executive Officer

  

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

9

 

Exhibit 1

 

The Performance Share Unit number shall be determined
in accordance with this Exhibit 1 if, prior to the Determination
Date, a Change in Control occurs and/or the Participant’s Continuous Service
terminates.  If no Change in Control
occurs or the Participant’s Continuous Service does not terminate prior to the
Determination Date, the Performance Share Unit number shall be determined in
accordance with the table in Section 1(m) hereof.  Upon any date of determination before the
Determination Date as set forth in the Agreement or in connection with a
determination pursuant to Section 3(d) hereof, the Participant’s
Performance Share Unit number shall be determined as of the most recently
completed fiscal quarter for the period commencing January 1, 2010.  Such Performance Share Unit number shall be
equal to the product of (1) the Target Amount, multiplied by either (2)(a) the
sole Mid-Period Vesting Factor under the column with the heading “Mid-Period
Vesting Factor Ranges” in the chart below corresponding to the actual
Cumulative Consolidated Pro Forma EBITDA per applicable quarter for which the
determination is made or (b) the sum of (i) the lowest Mid-Period
Vesting Factor in the applicable Mid-Period Vesting Factor Range corresponding
to the actual Cumulative Consolidated Pro Forma EBITDA per applicable quarter
for which the determination is made, plus (ii) the ProRata Mid-Period
Vesting Factor Increase.

 

The “ProRata Mid-Period Vesting  Factor Increase” means the quotient of (1) the
excess of the actual Cumulative Consolidated Pro Forma EBITDA over the lowest
Cumulative Consolidated Pro Forma EBITDA within the specified range per the
applicable quarter for which the determination is made, divided by (2) the
result of a fraction, the numerator of which is the difference between the
lowest and highest Cumulative Consolidated Pro Forma EBITDA within such
specified range per the applicable quarter for which the determination is made,
and the denominator of which is the difference between the lowest and highest
specified Mid-Period Vesting Factor for such quarter.

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

10

 

All amounts are in millions
of U.S. dollars.

 

	
  Cumulative

  Consolidated

  Pro Forma

  EBITDA

  per

  specified

  quarter

  	
   

  	
  1st fiscal

  quarter

  completed

  since

  l/l/10

  	
   

  	
  2nd fiscal

  quarter

  completed

  since

  l/l/10

  	
   

  	
  3rd fiscal

  quarter

  completed

  since

  l/l/10

  	
   

  	
  4th fiscal

  quarter

  completed

  since

  l/l/10

  	
   

  	
  5th fiscal

  quarter

  completed

  since

  1/l/10

  	
   

  	
  6th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  7th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  8th fiscal

  quarter

  completed

  since

  l/l/10

  	
   

  	
  9th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  

  10th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  

  11th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  12th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  Mid-Period

  Vesting

  Factor

  Ranges

  (Earned

  shares as a

  factor of

  the Target

  Amount)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less than

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  Equals 1x

  	
   

  
	
  Equal to or greater than

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  Equals 1x to 2x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  But less than

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  
	
  Equal to or greater than

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  Equals 2x

  	
   

  

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.Exhibit 10.3

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO CERTAIN PORTIONS OF THIS AGREEMENT, CONFIDENTIAL PORTIONS HAVE BEEN
OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

PRICELINE.COM  INCORPORATED
1999 OMNIBUS PLAN

 

PERFORMANCE
SHARE UNIT AGREEMENT

 

THIS PERFORMANCE SHARE
UNIT AGREEMENT (“Agreement”) is made as of the 4th day of March, 2010 by and
between priceline.com Incorporated, a Delaware corporation, with its principal
United States office at 800 Connecticut Avenue, Norwalk, Connecticut 06854, and
                                      
(the “Participant”).

 

WITNESSETH:

 

Pursuant to terms of the
priceline.com Incorporated 1999 Omnibus Plan (the “Plan”), the Compensation
Committee of the Board has authorized this Agreement.  The Participant has been granted as of March 4,
2010 (the “Grant Date”) the number of performance share units (the “Performance
Share Units”) set forth below.  Unless
otherwise indicated, any capitalized term used herein, but not defined herein,
shall have the meaning ascribed to such term in the Plan.  The Performance Share Units comprising this
award may be recorded in an unfunded Performance Share Unit account in the
Participant’s name maintained by the Company. 
The Participant will have no rights as a stockholder of the Company by
virtue of any Performance Share Unit awarded to the Participant until shares of
Stock (as defined below), if any, are issued to the Participant as described in
this Agreement.

 

1.                                       Definitions

 

(a)           “Company” shall mean
priceline.com Incorporated, any of its subsidiaries or affiliates.

 

(b)           “Continuous Service”
shall mean the Participant’s service with the Company or any Subsidiary or
Affiliate whether as an employee, director or consultant, which is not interrupted
or terminated.

 

(c)           “Cumulative Pro
Forma EBITDA” shall mean the Pro Forma EBITDA during the Performance Period,
calculated on a cumulative basis, net of any losses.

 

(d)           “Determination Date”
shall mean March 1, 2013.

 

(e)           “Disability” shall
mean that (i) the Participant is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than twelve (12) months or (ii) the
Participant is, by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than twelve (12) months, receiving income 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

 

replacement
benefits for a period of not less than three (3) months under an accident
and health plan covering employees of the Company.

 

(f)            “Good Reason” shall
mean (i) a material diminution in the Participant’s authority, duties or
responsibilities, (ii) relocation of the Company’s executive office in
Connecticut to a location more than thirty-five (35) miles from its current
location or more than thirty-five (35) miles further from the Participant’s
residence at the time of relocation, or (iii) any material breach of an
employment agreement, if any, that is in effect at any time between the Participant
and the Company.

 

Before a
termination by a Participant will constitute termination for Good Reason, the
Participant must give the Company a Notice of Good Reason within ninety (90)
calendar days following the occurrence of the event that constitutes Good
Reason.  Failure to provide such Notice
of Good Reason within such 90-day period shall be conclusive proof that the
Participant shall not have Good Reason to terminate employment.

 

Good Reason shall
exist only if (A) the Employer fails to remedy the event or events
constituting Good Reason within thirty (30) calendar days after receipt of the
Notice of Good Reason from the Participant and (B) the Participant
terminates his or her employment within sixty (60) days after the end of the
period set forth in clause (A) above. 
If the Participant determines that Good Reason for termination exists
and timely files a Notice of Good Reason, such determination shall be presumed
to be true and the Company will have the burden of proving that Good Reason
does not exist.

 

(g)           “Notice of Good Reason” means a written
notice by the Participant to the Company which sets forth in reasonable detail
the specific reason for a termination of employment for Good Reason and the
facts and circumstances claimed to provide a basis for such termination and is
provided to the Company in accordance with the terms set forth in Section 1(f) hereof.

 

(h)           “Performance Period”
shall mean the period commencing on January 1, 2010 and ending on December 31,
2012.

 

(i)            “Plan Year” shall
mean the calendar year.

 

(j)            “Pro Forma EBITDA” shall mean the
Company’s domestic operating income, excluding domestic depreciation and
amortization expense, and including domestic foreign currency transactions and
other expenses, but excluding gains or losses related to foreign currency
contracts where the Company hedges currency exposure related to its
international business, all determined in accordance with U.S. GAAP, adjusted
to exclude the impact of those items excluded from the non-GAAP financial metric
“pro forma EBITDA,” as publicly disclosed annually or quarterly, as applicable,
by the Company in connection with the Company’s annual and quarterly earnings
announcements.  Pro Forma EBITDA as
publicly disclosed typically excludes and/or includes items that are, among
other things, non-cash in nature, or related to unusual or non-recurring
events, or in response to changes in laws or regulations, or to account for
gains, losses or expenses determined to be extraordinary or unusual in nature
or infrequent in occurrence, or are unpredictable as to amount or timing, not
driven by core operating results and 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

2

 

render comparisons with prior periods less meaningful, or related to
the acquisition of a business or the disposition of a business or a segment of
a business, or related to a change in accounting principles.  Pro forma EBITDA shall also be adjusted (i) to include 100% of the gross profit
related to domestic hotel room bookings made using Booking.com’s hotel room
supply, (ii) to exclude the financial results from any acquisition or to
include the prospective forecasted results for any disposition of a business or
a segment of a business made during the Performance Period, and (iii) to
exclude the on-going impact of change in accounting principles.  Notwithstanding the foregoing, in determining
Pro Forma EBITDA, the Committee shall have the authority to make additional
adjustments that it considers, in its good faith judgment, necessary to
maintain the intent and principles consistent with the foregoing adjustments.

 

(k)           “Stock” shall mean
shares of common stock, par value $0.008, of the Company.

 

(l)            “Target Amount”
shall have the meaning given such term under Section 2.

 

(m)          “Vesting Factor”
means the factor by which to multiply the Target Amount determined in
accordance with the following table:

 

	
  If the
  Cumulative Pro Forma EBITDA for the

  Performance Period is:

  	
   

  	
  Then the
  Vesting Factor or Vesting 

  Factor Range is:

  
	
  [***]

  	
   

  	
  1x

  
	
  [***]

  	
   

  	
  1x to 2x

  
	
  [***]

  	
   

  	
  2x

  

 

2.                                       The Grant

 

Subject to the terms and
conditions set forth herein, the Participant is granted
                    
(                    )
Performance Share Units as of the Grant Date (the “Target Amount”).

 

3.                                       Vesting; Effect of Termination of
Continuous Service; Change in Control

 

(a)           Vesting at End of
Performance Period.  If the
Participant remains in Continuous Service through and including the
Determination Date and no Change in Control occurs prior to the Determination
Date, then the Participant shall be entitled to receive a number of shares of
Stock determined by multiplying the Target Amount by the Applicable Vesting
Factor.  The “Applicable Vesting Factor”
shall be equal to either (i) the sole Vesting Factor that corresponds to
the actual Cumulative  Pro Forma EBITDA
set forth in the table in Section 1(m) above in the event there is no
Vesting Factor Range, or (ii) the sum of (A) the lowest Vesting
Factor in the applicable Vesting Factor Range that corresponds to the actual
Cumulative Pro Forma EBITDA set forth in the table in Section 1(m) above,
plus (B) the ProRata Vesting Factor Increase.  The “ProRata Vesting Factor Increase” is the
quotient of (1) the excess of the actual Cumulative Pro Forma EBITDA over
the lowest Cumulative Pro Forma EBITDA in the range of numbers in which the
actual Cumulative Pro Forma EBITDA falls (set forth in the table in Section 1(m) above),
divided by (2) the result of a fraction, the numerator of which is the
difference between the lowest and highest Cumulative Pro Forma EBITDA in the
range of numbers in which the 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

3

 

actual Cumulative
Pro Forma EBITDA falls (set forth in the table in Section 1(m) above),
and the denominator of which is the difference between the lowest and highest
applicable Vesting Factor in the applicable Vesting Factor Range (set forth in
the table in Section 1(m) above). 
All shares of Stock to be issued to the Participant under this Section 3(a),
if any, shall be issued to the Participant as soon as practicable after the
Determination Date but in no event later than March 15, 2013.  If the Participant becomes entitled to any
shares of Stock under this Section 3(a), he or she shall not be entitled
to receive any shares of Stock under any other subsection of this Section 3.

 

(b)           Termination for
Cause.  If, prior to the
Determination Date, the Participant’s Continuous Service is (i) terminated
by the Company  for Cause or (ii) voluntarily
terminated by the Participant other than on account of Good Reason, death or Disability, then the Participant shall receive
no shares of Stock under this Agreement.

 

(c)           Termination Prior
to a Change in Control.  If, prior to
the Determination Date and prior to a Change in Control, the Participant’s
Continuous Service is terminated by the Company other than for Cause or by the
Participant on account of Good Reason, death or Disability, then the
Participant’s Performance Share Unit number shall be determined (or that of the
Participant’s designated beneficiary in the event of the Participant’s death)
in accordance with Exhibit 1, and the Participant shall at the time
of such termination be vested in a number of shares of Stock determined by the
product of (i) such Performance Share Unit number, multiplied by (ii) a
fraction, the numerator of which is the lesser of 36 or the number of full
months completed since January 1, 2010 as of the date of such termination,
and the denominator of which is 36. 
Subject to Section 3(f), all shares of Stock to be issued to the
Participant under this Section 3(c), if any, shall be issued to the
Participant (or the Participant’s designated beneficiary in the event of the
Participant’s death) as soon as practicable after the Participant’s Continuous
Service is terminated but in no event later than March 15 of the calendar
year following the calendar year in which the Participant’s Continuous Service
is terminated (or, if the Participant’s Continuous Service is terminated on or
after January 1, 2013, March 15, 2013).  If the Participant becomes entitled to any
shares of Stock under this Section 3(c), he or she shall not be entitled
to receive any shares of Stock under any other subsection of this Section 3.

 

(d)           Change in Control.  If a Change in Control occurs prior to the
Determination Date and the Participant remains in Continuous Service through
and including the Determination Date, then the Participant’s Performance Share
Unit number shall be determined in accordance with Exhibit 1, and
the Participant shall be vested in (i) if the Change in Control occurs
prior to January 1, 2013, the sum of (A) a number of shares of Stock
determined by multiplying such Performance Share Unit number by a fraction, the
numerator of which is the lesser of 36 and the number of full months completed
since January 1, 2010 as of the date of such Change in Control, and the
denominator of which is 36, and (B) a number of shares of Stock equal to
the product of the Target Amount, multiplied by the fraction, the numerator of
which is the number of full months that have been completed during the period
commencing on the Change in Control and ending on December 31, 2012 (plus
one (1) if the Change in Control occurs on any day of the month other than
the first or last day), and the denominator of which is 36, or (ii) if the
Change in Control occurs on or after January 1, 2013, a number of shares
of Stock equal to the Performance Share Unit number.  All shares of Stock to be issued to the
Participant under this Section 3(d), if any, shall be issued to the
Participant as soon as practicable after the 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

4

 

Determination Date
but in no event later than March 15, 2013. 
If the Participant becomes entitled to any shares of Stock under this Section 3(d),
he or she shall not be entitled to receive any shares of Stock under any other
subsection of this Section 3.

 

(e)           Termination
Coincident with or Following a Change in Control.  If a Change in Control occurs prior to the
Determination Date, and the Participant’s Continuous Service is terminated
prior to the Determination Date in connection with such Change in Control or
following such Change in Control  by
the Company other than for Cause or by the Participant on account of Good
Reason, death or Disability, then the Participant’s Performance Share Unit
number (or that of the Participant’s designated beneficiary in the event of the
Participant’s death) shall be determined in accordance with Exhibit 1,
and the Participant shall be vested at the time of such termination in (i) if
the termination occurs prior to January 1, 2013, the sum of (A) a
number of shares of Stock determined by multiplying such Performance Share Unit
number by a fraction, the numerator of which is the lesser of 36 and the number
of full months completed since January 1, 2010 as of the effective date of
such Change in Control, and the denominator of which is 36, and (B) a
number of shares of Stock equal to the product of the Target Amount, multiplied
by the fraction, the numerator of which is the number of full months that have
been completed during the period commencing on the effective date of the Change
in Control and ending on the earlier of December 31, 2012 or the date of
such termination (plus one (1) if the termination occurs on any day of the
month other than the first or last day), and the denominator of which is 36, or
(ii) if the termination occurs on or after January 1, 2013, a number
of shares of Stock equal to the Performance Share Unit number.  Subject to Section 3(f), all shares of
Stock to be issued to the Participant under this Section 3(e) as a
result of the Participant’s termination of Continuous Service on or after the
effective date of the Change in Control, if any, shall be issued to the
Participant (or the Participant’s designated beneficiary in the event of the
Participant’s death) as soon as practicable after the Participant’s Continuous
Service is terminated but in no event later than March 15 of the calendar
year following the calendar year in which the Participant’s Continuous Service
is terminated.  If the Participant
becomes entitled to any shares of Stock under this Section 3(e), he or she
shall not be entitled to receive any shares of Stock under any other subsection
of this Section 3.

 

(f)            Notwithstanding
anything in this Agreement to the contrary, if the Participant is a “specified
employee” (within the meaning of Section 409A of the Code) and the
issuance of the shares of Stock pursuant to Sections 3(c) and 3(e) is
considered to be a “deferral of compensation” (as such phrase is defined for
purposes of Section 409A of the Code), then the Participant’s date of
issuance of the shares of Stock shall be the date that is the first day of the
seventh month after the date of the Participant’s “separation from service”
with the Company (determined in accordance with Section 409A of the Code).

 

(g)           For purposes of
calculations made under this Section 3, results shall be rounded to the
nearest 100th using the common rounding method (i.e.,
increase the last digit by 1 if the next digit is 5 or more).

 

4.                                       Nontransferability of Grant

 

Except as otherwise provided
herein or in the Plan, no Performance Share Units shall be assigned,
negotiated, pledged, or hypothecated in any way or be subject to execution,
attachment 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

5

 

or similar
process.  No transfer of the Participant’s
rights with respect to such Performance Share Units, whether voluntary or
involuntary, by operation of law or otherwise, shall be permitted.  Immediately upon any attempt to transfer such
rights, such Performance Share Units, and all of the rights related thereto,
shall be forfeited by the Participant.

 

5.                                       Distribution and Voting Rights

 

Performance Share Units
shall have no distribution, dividend or voting rights.

 

6.                                       Stock; Adjustment Upon Certain Events

 

(a)           Stock to be issued
under this Agreement, if any, shall be made available, at the discretion of the
Board, either from authorized but unissued Stock, from issued Stock reacquired
by the Company or from Stock purchased by the Company on the open market
specifically for this purpose.

 

(b)           The existence of
this Agreement and the Performance Share Units granted hereunder shall not
affect in any way the right or power of the Board or the stockholders of the
Company to make or authorize any adjustment, recapitalization, reorganization
or other change in the Company’s capital structure or its business, any merger
or consolidation of the Company or any affiliate, any issue of bonds,
debentures, preferred or prior preference stocks ahead of or affecting the
Stock, the authorization or issuance of additional shares of Stock, the
dissolution or liquidation of the Company or any affiliate or sale or transfer
of all or part of the assets or business of the Company or any affiliate, or
any other corporate act or proceeding.

 

(c)           Upon a Change in
Control, the purchaser(s) of the Company’s assets or stock or the
surviving entity in a merger or consolidation may, in his, her or its
discretion, deliver to the Participant the same kind of consideration that is
delivered to the stockholders of the Company as a result of such Change in
Control, or the Board may cancel all outstanding Performance Share Units in exchange
for consideration in cash or in kind which consideration in both cases shall be
determined by the Board.

 

(d)           In the event of any
dividend or other distribution (whether in the form of cash, Stock, or other
property), recapitalization, Stock split, reverse split, reorganization,
merger, consolidation, spin-off, combination, repurchase, or share exchange, or
other similar corporate  transaction or
event that affects the Stock such that an adjustment is required in order to
prevent dilution or enlargement of the rights of holders of Performance Share
Units under the Plan, then the Committee shall make such equitable changes or
adjustments to any or all of (i) the number and kind of shares of Stock or
other property (including cash) that may thereafter be issued in connection
with the Performance Share Units granted under the Plan, (ii) the number
and kind of shares of Stock or other property (including cash) issued or
issuable in respect of outstanding Performance Share Units, (iii) performance
targets, and (iv) any individual limitations applicable to the Performance
Share Units granted under the Plan.

 

7.                                       Determinations

 

The Committee (by proper
delegation or otherwise) shall determine the extent to which an award has been
earned, if at all, in accordance with Section 3 of this Agreement on or
prior to 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

6

 

the Determination
Date.  Such determination and all other
determinations, interpretations or other actions made or taken pursuant to the
provisions of this Agreement by the Committee in good faith shall be final, conclusive
and binding for all purposes and upon all persons, including, without
limitation, the Participant and the Company, and their respective heirs,
executors, administrators, personal representatives and other successors in
interest.

 

8.                                       Other Conditions

 

The transfer of any Stock
under this Agreement, if any, shall be effective only at such time as counsel
to the Company shall have determined that the issuance and delivery of such
Stock is in compliance with all applicable laws, regulations of governmental
authority and the requirements of any securities exchange on which Stock is
traded.

 

9.                                       Withholding Taxes

 

The Participant shall be
liable for any and all taxes and contributions of any kind required by law to
be withheld with respect to the delivery of any shares of Stock under this
Agreement.  The Participant agrees that
the Participant’s employer may, in its discretion, (a) require the
Participant to remit to the Company on the date on which the Participant
becomes the owner of shares of Stock under this Agreement cash in an amount
sufficient to satisfy all applicable required withholding taxes and social
security contributions related to such vesting, (b) deduct from his or her
regular salary payroll cash, on a payroll date coincident with or following the
date on which the Participant becomes the owner of shares of Stock under this
Agreement, in an amount sufficient to satisfy such obligations, or (c) withhold
from the total number of shares of Stock the Participant is to receive on a
determination date a number of shares that has a total value equal to the
amount necessary to satisfy any and all such withholding tax obligations.

 

10.                                 Distribution of Stock

 

Subject to Section 8,
the Company shall cause the Participant to be the record owner of any shares of
Stock to which the Participant becomes entitled to receive under this Agreement
in accordance with the payment terms described in Section 3.

 

11.                                 Incorporation of the Plan

 

The Plan, as it exists on
the date of this Agreement and as amended from time to time, is hereby
incorporated by reference and made a part hereof, and the Performance Share
Units and this Agreement shall be subject to all terms and conditions of the
Plan.  In the event of any conflict
between the provisions of this Agreement and the provisions of the Plan, the
terms of the Plan shall control, except as expressly stated otherwise.

 

12.                                 Miscellaneous

 

(a)           This Agreement shall
inure to the benefit of and be binding upon the parties hereto and their
respective heirs, personal legal representatives, successors, trustees, administrators,
distributees, devisees and legatees.  The
Company shall assign to, and require, any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly
assume and agree 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

7

 

in writing to perform
this Agreement.  Notwithstanding the
foregoing, this Agreement may not be assigned by the Participant.

 

(b)           The Participant
acknowledges that the Company intends for the information contained in Section 1(m) and
Exhibit 1 hereof to remain confidential.  Notwithstanding any other provision hereof,
the Participant’s entitlement to any award or payment hereunder is contingent
upon the Participant maintaining the confidentiality of the information
contained in Section 1(m) and Exhibit 1.  The Participant agrees that he or she shall
not disclose or cause the disclosure of such information and shall hold such
information confidential.

 

(c)           No modification or
waiver of any of the provisions of this Agreement shall be effective unless in
writing and signed by the party against whom it is sought to be enforced.  To the extent applicable, it is intended that
this Agreement comply with the provisions of Section 409A of the Code, so
that the income inclusion provisions of Section 409A(a)(1) of the
Code do not apply to the Participant. 
This Agreement shall be administered in a manner consistent with this
intent.  References to Section 409A
of the Code will also include any regulations or any other formal guidance
promulgated with respect to such Section by the U.S. Department of the
Treasury or the Internal Revenue Service.

 

(d)           This Agreement may
be executed in one or more counterparts, all of which taken together shall
constitute one agreement.

 

(e)           The failure of any
party hereto at any time to require performance by another party of any
provision of this Agreement shall not affect the right of such party to require
performance of that provision, and any waiver by any party of any breach of any
provision of this Agreement shall not be construed as a waiver of any continuing
or succeeding breach of such provision, a waiver of the provision itself, or a
waiver of any right under this Agreement.

 

(f)            The headings of the
sections of this Agreement have been inserted for convenience of reference only
and shall in no way restrict or modify any of the terms or provisions hereof.

 

(g)           The Company shall
pay all fees and expenses necessarily incurred by the Company in connection
with this Agreement and will from time to time use its reasonable efforts to
comply with all laws and regulations which, in the opinion of counsel to the
Company, are applicable thereto.

 

(h)           All notices,
consents, requests, approvals, instructions and other communications provided
for herein shall be in writing and validly given or made when delivered, or on
the second succeeding business day after being mailed by registered or
certified mail, whichever is earlier, to the persons entitled or required to
receive the same, at the addresses set forth at the heading of this Agreement
or to such other address as either party may designate by like notice.  Notices to the Company shall be addressed to
its principal office, attention of the Company’s General Counsel.

 

(i)            The Plan and this
Agreement constitute the entire Agreement and understanding between the parties
with respect to the matters described herein and supersede all prior and 

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

8

 

contemporaneous
agreements and understandings, oral and written, between the parties with
respect to such subject matter.

 

(j)            This Agreement
shall be governed and construed and the legal relationships of the parties
determined in accordance with the laws of the state of Delaware without
reference to principles of conflict of laws.

 

(k)           The Company
represents and warrants that it is duly authorized by its Board and/or the
Committee (and by any other person or body whose authorization is required) to
enter into this Agreement, that there is no agreement or other legal
restriction which would prevent it from entering into, and carrying out its
obligations under, this Agreement, and that the officer signing this Agreement
is duly authorized and empowered to sign this Agreement on behalf of the
Company.

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

9

 

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

 

PRICELINE.COM INCORPORATED

 

 

Jeffery Boyd

Chief Executive Officer

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

10

 

Exhibit 1

 

The Performance Share
Unit number shall be determined in accordance with this Exhibit 1
if, prior to the Determination Date, a Change in Control occurs and/or the
Participant’s Continuous Service terminates. 
If no Change in Control occurs or the Participant’s Continuous Service
does not terminate prior to the Determination Date, the Performance Share Unit
number shall be determined in accordance with the table in Section 1(m) hereof.  Upon any date of determination before the
Determination Date as set forth in the Agreement or in connection with a
determination pursuant to Section 3(d) hereof, the Participant’s
Performance Share Unit number shall be determined as of the most recently
completed fiscal quarter for the period commencing January 1, 2010.  Such Performance Share Unit number shall be
equal to the product of (1) the Target Amount, multiplied by either (2)(a) the
sole Mid-Period Vesting Factor under the column with the heading “Mid-Period
Vesting Factor Ranges” in the chart below corresponding to the actual
Cumulative Pro Forma EBITDA per applicable quarter for which the determination
is made or (b) the sum of (i) the lowest Mid-Period Vesting Factor in
the applicable Mid-Period Vesting Factor Range corresponding to the actual
Cumulative Pro Forma EBITDA per applicable quarter for which the determination
is made, plus (ii) the ProRata Mid-Period Vesting Factor Increase.

 

The “ProRata Mid-Period
Vesting  Factor Increase” means the
quotient of (1) the excess of the actual Cumulative Pro Forma EBITDA over
the lowest Cumulative Pro Forma EBITDA within the specified range per the
applicable quarter for which the determination is made, divided by (2) the
result of a fraction, the numerator of which is the difference between the
lowest and highest Cumulative Pro Forma EBITDA within such specified range per
the applicable quarter for which the determination is made, and the denominator
of which is the difference between the lowest and highest specified Mid-Period
Vesting Factor for such quarter.

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

 

11

 

All amounts are in millions
of U.S. dollars.

 

	
  Cumulative

  Pro Forma

  EBITDA

  per

  specified

  quarter

  	
   

  	
  1st fiscal

  quarter

  completed

  since

  l/l/10

  	
   

  	
  2nd fiscal

  quarter

  completed

  since

  l/l/10

  	
   

  	
  3rd fiscal

  quarter

  completed

  since

  l/l/10

  	
   

  	
  4th fiscal

  quarter

  completed

  since

  l/l/10

  	
   

  	
  5th fiscal

  quarter

  completed

  since

  1/l/10

  	
   

  	
  6th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  7th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  8th fiscal

  quarter

  completed

  since

  l/l/10

  	
   

  	
  9th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  10th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  11th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  12th fiscal

  quarter

  completed

  since

  1/1/10

  	
   

  	
  Mid-

  Period

  Vesting

  Factor

  Ranges

  (Earned

  shares as

  a factor

  of the

  Target

  Amount)

  
	
  Less than

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  Equals 1x

  
	
  Equal to or
  greater than

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  Equals 1x to 2x

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  But less than

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
   

  
	
  Equal to or
  greater than

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  Equals 2x

  

 

[***] = Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Securities and Exchange Commission.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]