Document:

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN
           PORTIONS OF THIS DOCUMENT. CONFIDENTIAL PORTIONS HAVE BEEN
               FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.

                      AIRLINE PARTICIPATION AGREEMENT

      THIS AGREEMENT (this "Agreement"), dated as of November 17, 1999, is
 by and between priceline.com Incorporated, a Delaware corporation with an
 address at Five High Ridge Park, Stamford, Connecticut 06905 ("Priceline"),
 and American Airlines, Inc., a Delaware corporation, whose principal place
 of business is set forth in the notice provision of this Agreement
 ("Airline").

                           Preliminary Statement

      Priceline provides a service that allows consumers to purchase airline
 tickets at an offer price determined by the consumer (the "Priceline
 Service"). The consumer identifies the departure and return dates for
 travel and the price the consumer is willing to pay for the airline
 ticket(s). Priceline then determines if it is able to fulfill the
 customer's offer and, if it is able to do so, Priceline issues a ticket to
 the customer on the applicable carrier.

      Airline desires to participate in the Priceline Service and, in
 connection therewith, will provide Priceline with unpublished fares subject
 to the Restrictions (defined herein) for select origin and destination city
 pairs (each, an "O&D") identified by Airline in accordance with the terms
 and conditions set forth in this Agreement.

      Priceline desires to include Airline as a participating carrier in the
 Priceline Service and to have access to such unpublished fares in
 accordance with the terms and conditions set forth in this Agreement.

      NOW, THEREFORE, in consideration of the covenants and agreements set
 forth in this Agreement, the parties agree as follows:

 I.   Ticket Restrictions and Related Matters

      1.   Airline shall make available to Priceline unpublished fares (the
           number an pricing of which determined by Airline in its sole
           discretion), for O&Ds (selected by Airline in its sole
           discretion) for a minimum period of l year, effective from the
           date that Priceline issues the first ticket on such fares. Such
           fares may be either, in Airline's sole discretion, "Special Net
           Fares" that provide fixed price levels with rules and
           availability classes specific to Priceline; or these fares may be
           "Netted Retail Fare" that are constructed by applying a specific
           discount, if any, to published retail fares. If Netted Retail
           Fares are used, Airline agrees to provide reasonable advance
           purchase rule waivers so that such fares can be used to issue
           Priceline Tickets (defined below).  All unpublished fares
           provided to Priceline must be issued in accordance with rules and
           restrictions provided to Priceline by Airline from time to time.
           By way of example only, unpublished fares on certain O&D's may
           require specific routings or be flight/day specific. At all times
           during the term of this Agreement, Airline will exclusively
           control and determine the unpublished fares, the O&Ds, the rules
           and restrictions, and the levels of inventory provided to
           Priceline by Airline.

      2.   All tickets issued by Priceline for carriage on Airline (each, a
           "Priceline Ticket") shall be subject to the following
           restrictions (the "Restrictions"):

           (a)  Except as otherwise provided in Section IV.4 hereof, all
                Priceline Tickets will be nonrefundable, nonendorsable and
                nonchangeable;

           (b)  All travel will be roundtrip with no stopovers or openjaw
                travel permitted, with no upgrades permitted and no seat
                assignments prior to date of departure;

           (c)  Frequent Flyer mileage and upgrades will not be permitted;
                provided, Airline may offer such benefits at its option;

           (d)  Priceline customers must agree to (i) make up to one stop or
                connection on both their departing and return flights on any
                routing, (ii) accept a ticket on any carrier participating
                in the Priceline Service (each , a "Participating Carrier"),
                and (iii) travel on any flight on the specified date of
                travel (x) for domestic U.S. flights, departing during the 6
                a.m.  10p.m. time period (or other base period that may be
                identified) unless the customer has specified a request to
                include flights departing outside those periods, and (y) for
                international flights, at any time (i.e., 12:0 l a.m. to
                11:59 p.m.);

           (e)  All Priceline travel reservations and bookings shall be made
                without Priceline customers specifying a preferred (or
                requested) carrier, flight or time of day travel
                preference(s) on the specified date(s) of travel;

           (f)  All Priceline Tickets require instant ticketing guaranteed
                with a major credit card if Priceline is able to provide an
                airline ticket within the customer's requested price,
                departure and return date parameters;

           (g)  Priceline Ticket reservations are limited to no more than
                eight persons traveling in the same itinerary; and

           (h)  Except as otherwise provided herein, in any seven (7) day
                calendar period, a Priceline customer shall be limited to
                making one (1) offer price for airline ticket(s) for a Trip. A
                "Trip" is defined as travel between the same airports on the
                same dates of travel. A Priceline customer may, within a seven
                calendar day period, make an offer for travel in a different
                airport pair, on different dates of travel or accept off-peak
                travel on nonjet service. Priceline will not sell a ticket to a
                Priceline customer in response to a second (or subsequent)
                offer for a Trip within a seven calendar day period; provided,
                that Priceline may sell a ticket in connection with a one time
                second offer if the Priceline customer (i) raises the offer by
                a minimum of [**] and (ii) accepts, as part of the second
                offer, (x) a travel package which includes a hotel or rental
                car offer, or (y) a product or service co- marketed by
                Priceline such as a credit card or long distance telephone
                service or other co-marketing program

      3.   Airline may include, in addition to the Restrictions, other fare
           rules and conditions for Priceline Tickets issued on Airline.
           All Priceline Tickets issued for carriage on Airline shall be
           subject to the published conditions of carriage and the fare
           rules of Airline, to the extent such conditions and fare rules
           are not inconsistent with the Restrictions.  Airline will honor
           all Priceline Tickets issued for travel on Airline in accordance
           with the Restrictions and other rules and conditions established
           by Airline for Priceline Tickets.

 II.  Priceline Ticket Reservations., Bookings, Payment and Fulfillment

      1.   Airline will file unpublished fares and rules for Priceline
           Tickets selected by Airline with the computer reservation system
           ("CRS") used by Priceline.  Additionally, Priceline will
           cooperate with Airline to identify and work toward the most
           efficient system for the filing of fares for use by Priceline in
           the operation of its air travel service with Airline, including
           direct settlement through Airline's internal reservation system.

      2.   Priceline will determine the price at which tickets are sold
           based on customer offers received through the Priceline Service.
           Priceline shall not advertise prices or fares below Airline's
           published or unpublished fares.

      3.   All unpublished fares made available by Airline for sale through
           the Priceline Service shall not be commissionable and shall be
           inclusive, where applicable, of the applicable domestic federal
           transportation excise tax contained in Section 4261(a) of the
           Internal Revenue Code. All such unpublished fares shall be
           exclusive of any Ticket Taxes, which, when applicable, must be
           added to the fare amount and paid by Priceline to Airline
           including the domestic federal segment taxes contained in Section
           4261(b) of the Internal Revenue Code.  The term "Ticket Taxes" is
           defined in Section VII.4. of this Agreement.

      4.   In all Priceline Ticket transactions, Priceline will be the
           merchant of record and will pay and be responsible for all
           associated merchant charges and expenses including, without
           limitation, credit card fees, and will assume the risk of
           nonpayment by the customers and/or the credit card companies. All
           Priceline tickets sold on Airline will be settled through Airline
           Reporting Corporation ("ARC").

      5.   All tickets of Airline issued through the Priceline Service will
           be issued by Priceline using Agency ARC: 07508546. In collecting
           payment for Priceline Tickets, Priceline will act as the agent of
           Airline pursuant to Agent's ARC Agent Reporting Agreement with
           ARC.

      6.   Unless otherwise directed by a Priceline customer, all Priceline
           Tickets issued on Airline will be issued electronically.
           Priceline will encourage its customers to accept electronic
           ticketing for all Priceline Ticket requests by imposing an
           additional charge for the issuance of paper tickets and
           maintaining the issuance of electronic tickets as the default
           option on the Priceline Service.  After issuance of electronic
           tickets, Priceline will promptly forward to the customer a
           receipt of purchase and standard conditions.

      7.   Subject to the provisions of Paragraph  II.5 above, all Priceline
           paper tickets for carriage on Airline will be issued by Priceline
           on standard ARC traffic documents and will be validated with
           Airline's validation in accordance with ARC requirements. The
           passenger coupon will show "bulk" for the fare amount and will
           include all additional collections noted in Paragraph 11.3 above.
           The auditor's coupon will show the Airline's unpublished fare
           authorized for Priceline.

      8.   At the request of Airline, Priceline will incorporate into the
           Priceline Service, on commercially negotiated terms, a "hot link"
           to the designated Internet site of Airline; provided, however,
           that Priceline will have a reasonable period of time following
           any such request to accomplish any system changes, additions or
           enhancements necessary or appropriate for the inclusion of any
           such hot link.

 III. Priceline Ticket Allocation Methodology

      All Participating Carriers will be given the first opportunity to fill
      a customer ticket request based on a formula which allocates such
      requests in proportion to the aggregate domestic or international
      market share (as applicable) of each Participating Carrier for each
      O&D requested.  If a Participating Carrier fails to respond to a
      ticket request on its designated first look, then Priceline will
      allocate the request through a second round of preferred looks, which
      will be allocated in proportion to the aggregate domestic or
      international market shares (as applicable) of all remaining
      Participating Carriers for each O&D requested (but excluding the
      Participating Carrier that failed to fulfill the ticket request on the
      first look).  In the event that the Participating Carrier with the
      first look allocation is unable to satisfy the offer, and the
      Participating Carrier with the second look allocation is unable to
      satisfy the offer, Priceline will allocate "subsequent looks" in its
      sole discretion to satisfy a customer's offer.

 IV.  Priceline Customer Service

      1.   Priceline will provide twenty-four (24) hour customer support
           services to all Priceline customers through a toll-free number at
           the customer support center designated by Priceline from time to
           time. The customer support center will be adequately staffed with
           personnel trained to take Priceline Ticket requests by phone and
           respond to all customer inquiries for related service and
           support. Priceline will use commercially reasonable efforts to
           ensure that its customer service representatives provide quality
           customer service and support to Priceline customers in a prompt,
           reliable and courteous manner.

      2.   The ticket Restrictions will apply to all tickets issued through
           the Priceline Service on Airline. Airline may waive, at its own
           cost and expense, one or more of the Restrictions set forth in
           Sections I.2 (a)(f) pursuant to a direct arrangement made by
           Airline with the applicable customer holding a Priceline Ticket.
           On an exception basis where necessary or appropriate to address
           an escalating customer service issue of any individual customer,
           Priceline may refund the price of a Priceline Ticket applicable
           to such customer.  In the event that such refunds exceed [**]% of
           Priceline Ticket gross ticket sales in any month, Priceline will
           implement such actions as are necessary to cause total refunds to
           be below [**]% of Priceline Ticket gross ticket sales in the
           following month.  If in any three month period, total refunds
           exceed [**]% of Priceline Ticket gross ticket sales, Priceline will
           be responsible for any refunds greater than [**]% of Priceline
           Ticket gross ticket sales. At Airlines' request, Priceline shall
           provide Airline with a monthly report detailing the number and
           amount of refunded Priceline Tickets involving air transportation
           services on Airline.  Priceline and Airline will jointly develop
           additional the guidelines upon which such exception refunds will
           be governed.

 V.   Confidentiality

      1.   Priceline and Airline will each hold in confidence and, without
           the prior written consent of the other, will not reproduce,
           distribute, transmit, transfer or disclose, directly or
           indirectly, in any form, by any means or for any purpose, any
           Confidential Information of the other party. As used herein, the
           term "Confidential Information" shall mean this Agreement and its
           subject matter, and proprietary information that is provided to
           or obtained from one party to the other party including any
           information which derives economic value, actual or potential,
           from not being generally known to, and not generally
           ascertainable by proper means by, other persons, including the
           unpublished fares provided by Airline to Priceline pursuant to
           this Agreement. The recipient of Confidential Information may
           only disclose such information to its employees, attorneys and
           accountants on a need-to-know basis and provided each is aware of
           this provision and agrees to comply with its terms.

      2.   The obligations of a recipient party with respect to Confidential
           Information shall remain in effect during and after the term of
           this Agreement (including any renewals or extensions hereof) and
           for a period of five (5) years thereafter, except to the extent
           such data:

           (a)  as a result of a disclosure by the recipient, or its
                directors ,officers, employees, agents or advisors;

           (b)  becomes available to the recipient n a non-confidential
                basis from a source other than the disclosing party or its
                affiliated companies, provided that such source is not bound
                by any confidentiality obligations to the disclosing party
                or its affiliated companies (as applicable);

           (c)  is necessary to comply with applicable law or the order of
                other legal process of any court or similar governmental
                authority having jurisdiction over the recipient; provided,
                that to the extent reasonably practicable, the recipient
                shall deliver any such order or legal process to the other
                party prior to complying therewith to enable the other party
                to seek a protective order or other remedy to protect it's
                the disclosure of its confidential information. Both parties
                hereto acknowledges that the other party  may be required to
                file this Agreement with the Securities and Exchange
                Commission ("SEC"), as required by federal securities laws,
                and that such filing shall not be deemed a violation of the
                provisions of this Article V; or

           (d)  was in the possession of the recipient party prior to the
                date of disclosure by the other party, as shown by written
                records of the recipient party

      3.   In the event the recipient becomes legally compelled to disclose
           any of such Confidential Information by any governmental court or
           body, recipient will provide the disclosing party with prompt
           notice so that the disclosing party may seek a protective order
           or other appropriate remedy and/or waive compliance (in writing)
           with the provisions hereof.  In the event that such protective
           order or other remedy is not obtained, or the disclosing party
           waives in writing compliance with the provisions hereof,
           recipient will furnish only that portion of such Confidential
           Information which is legally required and will exercise its
           reasonable business efforts to obtain appropriate assurance that
           confidential treatment will be accorded such Confidential
           Information.

      4.   The recipient of Confidential Information will exercise
           reasonable commercial care in protecting the confidentiality of
           the other party's Confidential Information.

      5.   Priceline will not, without Airline's prior written consent,
           identify Airline's participation in the Priceline service until a
           customer is booked and confirmed for ticketing.  Further,
           Priceline will not, without Airline's prior written consent, in
           any media (including its Internet site) indicate that Airline is
           participating or has participated in the Priceline Service except
           to indicate that as a consumer proposition, a Priceline customer
           must accept a routing on one of the major U.S. full service
           airlines or, in the case of international travel, other airline
           carriers available through the Priceline Service. Airline will
           not disclose its participation in the Priceline Service without
           Priceline's prior consent.

      6.   During the term of this Agreement neither Priceline nor Airline
           shall use the other party's trademarks, trade names, service
           marks, logos, emblems, symbols or other brand identifiers in
           advertising or marketing materials, unless it has obtained the
           prior written approval of the other party. The consent required
           by this Paragraph V.6. shall extend to the content of the
           specific advertising or marketing items as well as the placement
           and prominence of the applicable trademark, trade name, service
           mark, logo, emblem, symbol or other brand identifier of the other
           party.  Priceline or Airline, as applicable, shall cause the
           withholding, discontinuance, recall or cancellation, as
           appropriate, of any advertising or promotional material not
           approved in writing by the other party, that differs
           significantly from that approved by the other party, or that is
           put to a use or used in a media not approved by the other party.

      7.   Priceline will not disclose (including without limitation by
           sale) to any third party information specific to a customer's
           usage of Airline obtained through the Priceline Service.

      8.   During the term of the Agreement, and for a period of one year,
           thereafter, Airline agrees not to make any remarks to the public
           about Priceline or the Priceline Service that is intended to be
           negative or disparaging, other than in connection with any
           litigation between the parties or otherwise as required by law.

 VI.  Term of Agreement

      1.   Subject to the provisions of this Paragraph VI., the term of this
           Agreement (herein so called) will commence on the date set forth
           on the first page of this Agreement (the "Commencement Date") and
           will continue until terminated pursuant to this Paragraph VI.
           Notwithstanding the foregoing, Priceline or Airline may terminate
           this Agreement at any time after one (1) year following the
           Commencement Date, with or without cause, on thirty (30) days'
           prior written notice to the other party.

      2.   In the event either party is in material breach of its
           obligations under this Agreement, the non-breaching party may
           terminate this Agreement on thirty (30) days written notice to
           the breaching party, provided the breaching party has failed to
           cure such breach within such thirty (30) day period.

      3.   Either party may terminate this Agreement upon written notice to
           the other party in the event that bankruptcy or insolvency
           proceedings are filed by or commenced against the other party.

      4.   The obligations of the parties under Paragraphs V., VII. and IX.
           of this Agreement shall indefinitely (except as otherwise limited
           to a certain term therein) survive the termination of this
           Agreement.

      5.   In the event of written notice of termination of this Agreement
           in accordance with the terms of this Paragraph VI, all Priceline
           Tickets issued on Airline prior to the effective date of
           termination specified in such notice will be honored by Airline
           under the terms of this Agreement.

 VII. Representations and Warranties and Indemnification

      1.   Each party hereby represents and warrants to the other as
           follows:

           (a)  Such party is duly organized and validly existing under the
                laws of the state of its incorporation and has full
                corporate power and authority to enter into this Agreement
                and to carry out the provisions hereof.

           (b)  Such party is duly authorized to execute and deliver this
                Agreement and to perform its obligations hereunder.

           (c)  This Agreement is a legal and valid obligation binding upon
                it and enforceable with its terms.  The execution, delivery
                and performance of this Agreement by such party does not
                conflict with any agreement, instrument or understanding,
                oral or written, to which it is a party or by which it may
                be bound, nor violate any law or regulation of any court,
                governmental body or administrative or other agency having
                jurisdiction over it.

      2.   Priceline represents and warrants that it owns or has the legal
           right to use the systems, processes and technology used by
           Priceline to provide the Priceline Services and they do not, to
           the best of its knowledge, infringe any patent of any third
           party.

      3.   Priceline will indemnify, defend and hold harmless Airline, its
           officers, directors, employees and agents, from and against all
           damages, losses and causes of action (including reasonable
           attorneys' fees), including, without limitation, damage to
           property or bodily injury, on an after-tax basis, to the extent
           caused by or related to (i) Priceline's breach of this Agreement
           or the ARC Agent Reporting Agreement, (ii) any inaccuracy in any
           of Priceline's representations or warranties set forth in
           Paragraphs VII.1. and VII.2. above, (iii) by the negligence or
           willful acts of Priceline or any of its employees or agents, or
           (iv) any actual or alleged claim that all or any part of the
           systems, processes or technology used by Priceline to provide the
           Priceline Services infringes, directly or indirectly, any patent
           or copyright or misappropriates any trade secret.

      4.   Priceline shall be solely responsible for collecting and
           remitting Ticket Taxes, if any, payable on amounts collected by
           Priceline on tickets issued for travel by Airline in excess of
           amounts paid by Priceline to Airline in respect to such tickets.
           The term "Ticket Taxes" includes: (i) any applicable taxes
           pursuant to Section 4261 of the Internal Revenue Code paid along
           with all penalties and interest thereon and (ii) any applicable
           passenger facility charges, stamp taxes, excise taxes, (including
           segment fees), value added taxes (in the nature of a sales or use
           tax), gross receipts taxes (in the nature of a sales or use tax),
           U.S. Department of Agriculture APHIS user fees, U.S. Customs user
           fees, U.S. Immigration and Naturalization Service user fees,
           security charges and other taxes and user fees or charges imposed
           by any domestic or foreign governmental entity on a per passenger
           basis or as a percentage of the fare paid and all penalties and
           interest thereon.  Priceline will indemnify, defend and hold
           harmless Airline and its affiliates, and any of their officers,
           directors, employees, and agents, from and against all
           assessments or payments for tax, interest and penalties for
           Ticket Taxes on any amounts attributed to the excess of the
           amounts paid or payable by Priceline to Airline for tickets
           purchased under this Agreement.  This indemnification
           specifically includes, but is not limited to, assessments or
           payments under Sections 4261, 4263, 6651, 6652, 6656, 6662, 6672,
           or 6861 of the Internal Revenue Code, and any successor
           provisions.  Priceline further agrees, as part of this
           indemnification, to reimburse Airline and its affiliates, and any
           of their officers, directors, employees, and agents, for any
           reasonable out of pocket expenses, including attorneys' fees and
           expenses Airline may have incurred in connection with any such
           assessment or payment raised by any authority in connection with
           such Priceline Tickets. The obligations of this Section are
           supplementary of those set forth in Section VII. 3.  and shall
           survive the termination of this Agreement.

      5.   Priceline hereby acknowledges that Airline's sales documentation
           for Priceline Tickets sold to Priceline is sufficient to meet the
           requirements of Section 7275 of the Internal Revenue Code and
           Priceline is responsible for Section 7275 obligations regarding
           ticketing and advertising of Priceline Tickets.

      6.   Airline will indemnify, defend and hold harmless Priceline and
           its officers, directors, employees and agents from and against
           all damages, losses and causes of action (including reasonable
           attorneys' fees), including, without limitation, damage to
           property or bodily injury, on an after-tax basis, to the extent
           caused by (i) Airline's breach of this Agreement, (ii) any
           inaccuracy in any of Airline's representations or warranties set
           forth in Paragraph VII.1. above, or (iii) by the negligence or
           willful acts of Airline or any of its employees or agents.

 VIII.     Reporting and Audit Rights

      1.   Priceline will provide monthly (or at least as frequently as to
           the other Participating Carriers) electronic reports in a format
           reasonably agreed to by Priceline and Airline summarizing (i)
           information concerning each ticket issued by Priceline on
           Airline; (ii) aggregate information (i.e. non airline specific)
           for all tickets issued by Priceline I in each O&D that Airline
           participates (including, without limitation, aggregate
           information on the number of passengers ticketed per O&D by
           travel date); (iii) aggregate information for all Priceline
           offers not ticketed in each O&D that Airline participates; (iv)
           information about the market share in each O&D in which Airline
           participates; and (v) any other information reasonably requested
           by Airline.

      2.   Priceline will provide to Airline an annual statement by
           Priceline's independent accounting firm or other qualified third-
           party concerning Priceline's compliance with the Priceline Ticket
           Allocation Methodology specified in Paragraph III. and all
           reporting obligations required by this Agreement.

      3.   Airline may, upon reasonable notice to Priceline and during
           normal business hours, audit the financial books and records of
           Priceline and the information specified in Paragraphs VIII.1. and
           2.  Any such audit shall be at the sole cost and expense of
           Airline, except that the costs of the audit will be at the
           expense of Priceline if it reveals that Priceline has not
           materially complied with the terms of this Agreement.

 IX.  General Provisions

      1.   Any notice required or permitted hereunder shall be deemed
           sufficient if given in writing and delivered personally, by
           facsimile transmission, by reputable overnight courier service or
           United States mail, postage prepaid return receipt requested, to
           the addresses shown below or to such other addresses as are
           specified by similar notice, and shall be deemed received upon
           personal delivery, upon confirmed facsimile receipt, two (2) days
           following deposit with such courier service, or three (3) days
           from deposit in the United States mails, in each case as herein
           provided:

           If to Priceline:

           Priceline.com Incorporated
           Five High Ridge Park
           Stamford, CT 06905
           Attention: Paul Francis, Chief Financial Officer
           Phone: (203 ) 705-0000
           Fax: (203) 595-8344

           With a copy to:

           Priceline.com Incorporated
           Five High Ridge Park
           Stamford, CT 06905
           Attention: Timothy G. Brier, Executive Vice President, Travel
           Phone: (203) 7053000
           Fax: (203) 5958343

           If to Airline:

           American Airlines, Inc.
           4333 Amon Carter Boulevard
           Fort Worth, TX 76155
           Attention: Craig Kreeger, Vice President & General Sales Manager
           Phone: (817) 972-2742
           Fax: (972) 425-7697

           With a copy to

           American Airlines, Inc.
           4333 Amon Carter Boulevard
           Fort Worth, TX 76155
           Attention: Corporate Secretary
           Phone: (817) 9671254
           Fax: (817) 9674313

           A party may change its address and the name of its designated
           recipient of copies of notices for purposes of this Agreement by
           giving the other pates written notice of the new name and the
           address, phone and facsimile number of its designated recipient
           in accordance with this Paragraph IX.1.

      2.   The relationship by and among Airline, Priceline and as set forth
           in this Agreement shall be nonexclusive. As such, Airline may
           participate in other programs, similar or dissimilar, to the
           Priceline Service.

      3.   No waiver or breach of any of the provisions of this Agreement
           shall be construed as a waiver of any succeeding breach of the
           same or any other provision.

      4.   This Agreement and the Attachments hereto supersede and replace
           all previous understandings or agreements, oral or written, with
           respect to the subject matter.  The captions in this Agreement
           are for convenience only and do not alter any terms of this
           Agreement.

      5.   This Agreement may be amended or modified only by a written
           amendment executed by the parties.

      6.   The formation, construction, performance and validity of this
           Agreement shall be governed by the internal laws of the State of
           New York. Each party agrees that any civil suit or action brought
           against it as a result of any of its obligations under this
           Agreement may be brought against it either in the state or
           federal courts of the principal place of business of either
           party, and each party hereby irrevocably submits to the
           jurisdiction of such courts and irrevocably waives, to fullest
           extent permitted by law, any objections that it may now or
           hereafter have to the laying of the venue of such civil suit or
           action and any claim that such civil suit or action  has been
           brought in an inconvenient forum, and each party further agrees
           that final judgment in any such civil suit or action shall be
           conclusive and binding upon it and shall be enforceable against
           it by suit upon such judgment in any court of competent
           jurisdiction.

      7.   No party will in any manner or by any device, either directly or
           indirectly, act in violation of any applicable law, governmental
           order or regulation.  Priceline shall comply at all times with
           the provisions of Airline's tariffs (except where such tariffs
           are specifically amended by Airline under the terms of this
           Agreement) and the terms of the Airline Reporting Corporation
           (ARC) Agent Reporting Agreement and the American Airlines
           Addendum thereto.

      8.   Priceline agrees to notify Airline promptly, in writing, in the
           event there is a change of control in the ownership of Priceline.
           For purposes of this Agreement, a "change of  control" with
           respect to a party means (i) the acquisition by any other person
           or group (within the meaning of Section 13(d)(3) of the
           Securities Exchange Act (except an employee group of such party,
           any of its subsidiaries or a company of such party)), of the
           beneficial ownership securities representing 20% or more of the
           combined voting power of the securities entitled to vote
           generally in the election of the board of directors of such
           party, or (ii) the sale, mortgage, lease or other transfer of
           assets or earning power constituting more than 50% of the assets
           or earning power of such party (other than ordinary course
           financing); PROVIDED that in no event shall a change of control
           be defined to include (i) the formation by a party of a holding
           company or (ii) an intra-corporate transaction with a company
           under common control with a party.  Upon the occurrence of a
           change of control of a party, the other party may terminate this
           Agreement on thirty (30) days prior written notice.

      9.   No party hereto shall assign or transfer or permit the assignment
           or transfer of this Agreement without the prior written consent
           of the other party.

      10.  This Agreement shall not be deemed to create any partnership or
           joint venture between Airline and Priceline, nor to create any
           rights in favor of any person or entity other than the parties
           hereto.  This Agreement is for the sole benefit of the parties
           and nothing herein expressed or implied shall give or be
           construed to give any other person any legal or equitable rights
           hereunder.

      11.  NO PARTY WILL BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL
           DAMAGES, INCLUDING LOST REVENUES, LOST PROFITS, OR LOST
           PROSPECTIVE ECONOMIC ADVANTAGE, ARISING FROM THIS AGREEMENT OR
           ANY BREACH HEREOF.

      12.  In the event that either party hereto is prevented from
           fulfilling any of its obligations under this Agreement for a
           period not exceeding one hundred twenty (120) consecutive days
           for a reason beyond its control, including, but not limited to,
           strikes, lockouts, work stoppages or other labor disputes, riots,
           civil commotions, acts of God, fire, flood and other weather-
           related reasons, governmental action or directive (a "Force
           Majeure Event "), such party shall not, by reason of being so
           prevented, be in breach of this Agreement and such condition
           shall not be cause of termination by the other party. If a Force
           Majeure Event continues for a period in excess of one hundred
           twenty (120) consecutive days as to one party which prevents that
           party from fulfilling in any material way its obligations under
           this Agreement to the party, the other party shall have the right
           to terminate this Agreement upon thirty (30) days' advance
           written notice to the other party.

      13.  It is expressly acknowledged that this Agreement is not
           conditioned in any way upon Priceline's  choice of, or use of,
           any particular computer reservation system.

      14.  Unless otherwise expressly provided, the remedies provided by
           this Agreement are not intended to be exclusive.  Each shall be
           cumulative and shall be in addition to all other remedies
           available to either party under this Agreement, at law or in
           equity.

      15.  This Agreement may be executed in counterparts, each of which
           shall be deemed an original, and together, shall constitute one
           and the same instrument.  Execution may be effected by delivery
           of facsimiles of signature pages (and the shall follow such
           delivery by prompt delivery of originals of such pages).

      IN WITNESS WHEREOF., the parties have executed and delivered this
 Agreement on the date indicated above.

 PRICELINE.COM INCORPORATED           AMERICAN AIRLINES, INC.

 By:______________________            By:________________________
 Name:  Timothy Brier                 Name:
 Title: Executive Vice President,     Title:
        Travel

[**]=Confidential Treatment requested for redacted portionCONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN
           PORTIONS OF THIS DOCUMENT. CONFIDENTIAL PORTIONS HAVE BEEN
               FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.

 THE WARRANT ISSUED PURSUANT TO THIS PARTICIPATION WARRANT AGREEMENT HAS NOT
 BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES
 LAWS. IT MAY NOT BE SOLD OR OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR
 OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
 UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS UNLESS THE COMPANY HAS
 RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT
 SUCH REGISTRATION IS NOT REQUIRED TO EFFECTUATE SUCH TRANSACTION.

                      PARTICIPATION WARRANT AGREEMENT
                     To Purchase Shares of Common Stock
                       Dated as of November 17, 1999
                         PRICELINE.COM INCORPORATED
                           a Delaware Corporation

                                              Issue Date: November 17, 1999

 THIS CERTIFIES THAT, American Airlines, Inc. (the "Warrant Holder"), with a
 place of business at 4333Amon Carter Boulevard, Fort Worth, TX 76155, for
 value received, is entitled, upon the terms and subject to the conditions
 of this Participation Warrant Agreement (this "Warrant Agreement"), to
 subscribe for and purchase fully-paid and non-assessable shares of common
 stock, par value $.008 per share (the "Common Stock"), of priceline.com
 Incorporated, a Delaware corporation (the "Company").

      1.   Issuance of Warrants.  On the Issue Date, the Company will issue
 to the Warrant Holder warrants (the "Warrants") to acquire Five Million
 Five Hundred Thousand (5,500,000) shares of the Common Stock (the
 "Shares"), subject to adjustment as hereinafter provided pursuant to
 Section 10 herein.

      2.   Exercise Price.  The Warrants have an exercise price of $56.625
 per share (closing price as reported on NASDAQ on date of grant) of Common
 Stock, as adjusted pursuant to the provisions of Section 10 of this Warrant
 Agreement (the "Exercise Price").

      3.   Term.  The Warrants are fully vested on the Issue Date.  Except
 as otherwise provided herein, the term of the Warrants and the right to
 purchase Shares as granted herein shall be exercisable on the fifth (5th)
 anniversary of the Issue Date; provided, further, that if any of the
 Warrants first become exercisable on the fifth (5th) anniversary of the
 Issue Date, the Warrant Holder will have an additional six months
 thereafter to exercise its purchase rights in respect of those Warrants
 (the end of such five year period and additional six months, if applicable,
 being referred to herein as the "Termination Date").

      4.   Exercise Events.

           (a)  General.  Unless otherwise exercisable at an earlier date,
 in accordance with this Section 4, all of the Warrants shall be fully
 exercisable commencing of the fifth anniversary of the Issue Date.

           (b)  Early Exercise Rights.

                (i)   The Warrant Holder will have the right at any time
                      during the first Measuring Period (as defined in
                      Section 4(c) below), to exercise Warrants, subject to
                      adjustment as provided in Section 10 hereof, equal to
                      [**]% or [**]% of the Shares, as applicable, provided
                      that, except as otherwise provided in Sections
                      4(b)(iii) and 4(b)(iv) hereof, (i) the right to
                      exercise Warrants for [**]% of the Shares shall not
                      accrue unless and until the Company has, on an
                      aggregated basis during the first Measuring Period,
                      received at least $[**] million of Net Revenues (as
                      also defined in Section 4(c) below) from tickets sold
                      during such Measuring Period for travel on the
                      Warrant Holder, its subsidiaries and/or on the
                      Warrant Holder's code share partners using Warrant
                      Holder's code (collectively, "Warrant Holder and its
                      Code Share Partners"), and (ii) the right to exercise
                      Warrants for [**]% of the Shares shall not accrue
                      unless and until the Company has, on an aggregated
                      basis during the first Measuring Period, received at
                      least $[**] million of Net Revenues from tickets sold
                      during such Measuring Period for travel on the
                      Warrant Holder and its Code Share Partners.

                (ii)  The Warrant Holder will have the right at any time
                      during the second Measuring Period and all remaining
                      Measuring Periods thereafter, to exercise Warrants,
                      subject to adjustment as provided in Section 10
                      hereof, equal to [**]% or [**]% of the Shares, as
                      applicable, or such lesser percentage of the Shares
                      as shall constitute all of the remaining Shares not
                      then exercisable; provided that (i) the right to
                      exercise Warrants for [**]% of such Shares shall not
                      accrue unless and until the Company has, on an
                      aggregated basis during the applicable Measuring
                      Period, received at least $[**] million of Net
                      Revenues from tickets sold during such Measuring
                      Period for travel on the Warrant Holder and its Code
                      Share Partners, and (ii) the right to exercise
                      Warrants for [**]% of such Shares shall not accrue
                      unless and until the Company has, on an aggregated
                      basis during the applicable Measuring Period,
                      received at least $[**] million of Net Revenues from
                      tickets sold during such Measuring Period for travel
                      on the Warrant Holder and its Code Share Partners.

                (iii) Notwithstanding the Net Revenue benchmarks specified
                      in clauses (i) and (ii) of this Section 4(b) for the
                      early exercisability of Warrants, if, in any
                      Measuring Period, the Company fails to achieve the
                      minimum Net Revenues from ticket sales for travel on
                      Warrant Holder and its Code Share Partners necessary
                      to enable Warrant Holder to exercise Warrants for the
                      [**]% or [**]% portion of Shares that would otherwise
                      become exercisable if such benchmarks were achieved
                      during such Measuring Period, then, effective on the
                      last day of such Measuring Period and thereafter,
                      Warrant Holder (i) shall have the right to exercise
                      Warrants for the [**]% portion of Warrants that would
                      otherwise become exercisable upon achieving the
                      corresponding Net Revenue benchmark for such
                      Measuring Period, if Warrant Holders and its Code
                      Share Partners' percentage of the aggregate of all
                      ticket sale revenues (calculated using the same
                      methodology used to calculate Net Revenue hereunder)
                      received by the Company for U.S. originating O&D's
                      for such Measuring Period equals or exceeds [**]% of
                      Warrant Holder's Fair Share (as defined in Section
                      4(c) below)(the "[**]% Fair Share Threshold"), and (ii)
                      shall have the right to exercise Warrants for the [**]%
                      portion of Warrants that would otherwise become
                      exercisable upon achieving the corresponding Net
                      Revenue benchmark for such Measuring Period, if
                      Warrant Holder's and its Code Share Partners'
                      percentage of the aggregate of all ticket sale
                      revenues received by the Company for U.S. originating
                      O&D's for such Measuring Period equals or exceeds
                      [**]% of Warrant Holder's Fair Share (the "[**]% Fair
                      Share Threshold"). For purposes of determining
                      whether Warrant Holder achieves the [**]% Fair Share
                      Threshold and/or the [**]% Fair Share Threshold for
                      the first, and only the first, Measuring Period, the
                      parties shall calculate Warrant Holder's and its Code
                      Share Partners' percentage of the Company's ticket
                      sale revenues for U.S. originating O&D's for such
                      period based on either (i) their percentage of the
                      aggregate of all ticket sale revenues received by the
                      Company for ticket sales for U.S. originating O&D's
                      during the entire first Measuring Period, or (ii)
                      their percentage of the aggregate of all ticket sale
                      revenues received by the Company for ticket sales for
                      U.S. originating O&D's during the final six (6)
                      months of the First Measuring Period, whichever is
                      more favorable for the Warrant Holder.

                (iv)  In the event that the Company does not achieve the
                      $[**] million Net Revenue benchmark specified in
                      clauses (i) of this Section 4(b) and Warrant Holder
                      does not achieve the [**]% Fair Share Threshold
                      specified in clause (iii) of this Section 4(b) for
                      the early exercisability of Warrants for the first
                      Measuring Period, Warrant Holder shall have the right
                      upon completion of the first Measuring Period and
                      thereafter to exercise Warrants for the [**]% portion
                      of Warrants that would otherwise become exercisable
                      upon the Company's achieving the $[**] million Net
                      Revenue benchmark or Warrant Holder's achieving the
                      [**]% Fair Share Threshold for such Measuring Period,
                      if, during the entire term of the first Measuring
                      Period, Warrant Holder does not voluntarily
                      participate in any name- your-price airline ticket
                      service other than (i) the Company's and its
                      affiliates' airline ticket services and (ii) any
                      other name-your price airline ticket service with
                      which Warrant Holder was discussing participation
                      prior to the date of execution this agreement.

                (v)   In the event that the Company does not achieve the
                      $[**] million Net Revenue benchmark specified in
                      clause (ii) of this Section 4(b) and Warrant Holder
                      does not achieve the [**]% Fair Share Threshold
                      specified in clause (iii) of this Section 4(b) for
                      the early exercisability of Warrants for the second
                      Measuring Period, Warrant Holder shall have the right
                      upon completion of the second Measuring Period and
                      thereafter to exercise Warrants for [**]% of the [**]%
                      portion of the Warrants that would have otherwise
                      become exercisable upon the Company's achieving the
                      $[**] million Net Revenue benchmark or Warrant
                      Holder's achieving the [**]% Fair Share Threshold for
                      such Measuring Period, if, during the entire term of
                      the second Measuring Period, Warrant Holder does not
                      voluntarily participate in any name-your-price
                      airline ticket service other than (i) the Company's
                      and its affiliates' airline ticket services and (ii)
                      any other name-your price airline ticket service with
                      which Warrant Holder was discussing participation
                      prior to the date of execution this agreement.

                (vi)  In the event that the Company does not achieve the
                      $[**] million Net Revenue benchmark specified in
                      clause (ii) of this Section 4(b) and Warrant Holder
                      does not achieve the [**]% Fair Share Threshold
                      specified in clause (iii) of this Section 4(b) for
                      the early exercisability of Warrants for the third
                      Measuring Period, Warrant Holder shall have the right
                      upon completion of the third Measuring Period and
                      thereafter to exercise Warrants for [**]% of the [**]%
                      portion of the Warrants that would have otherwise
                      become exercisable upon the Company's achieving the
                      $[**] million Net Revenue benchmark or Warrant
                      Holder's achieving the [**]% Fair Share Threshold for
                      such Measuring Period, if, during the entire term of
                      the third Measuring Period, Warrant Holder does not
                      voluntarily participate in any name-your-price
                      airline ticket service other than (i) the Company's
                      and its affiliates' airline ticket services and (ii)
                      any other name-your price airline ticket service with
                      which Warrant Holder was discussing participation
                      prior to the date of execution this agreement.

           (c)  Measuring Periods and Net Revenue.

                (i)   As used in this Warrant Agreement, the term
                      "Measuring Period" shall mean a 12-month period, with
                      the first such Measuring Period commencing on the
                      Date the Warrant Holder first provides tickets for
                      sale by the Company (the "First Ticket Date").
                      Subsequent Measuring Periods will expire on the
                      second, third, fourth and fifth anniversary of the
                      First Ticket Date, respectively, except that the
                      fifth Measuring Period shall end on the fifth (5th)
                      anniversary of the Issue Date.

                (ii)  As used in this Warrant Agreement, the term "Net
                      Revenue" shall mean the total ticket revenue received
                      by the Company from tickets sold for travel on the
                      Warrant Holder and its Code Share Partners, net of
                      federal excise and segment taxes, passenger facility
                      charges and related fees. The parties acknowledge
                      that credit card processing fees, and any processing
                      fees or similar fees charged by the Company to the
                      consumer in connection with the sale of a ticket
                      shall not be included in the calculation of Net
                      Revenue.

                (iii) As used in this Warrant Agreement, the term "Fair
                      Share" shall mean Warrant Holder's domestic market
                      share calculated as a fraction, the numerator of
                      which shall be Warrant Holder's RPM's for U.S.
                      originating O&D's only, and the denominator of which
                      shall be the total RPM's for U.S. originating O&D's
                      only of all of the Company's participating airlines.

      5.   Exercise of Purchase Rights.

           (a)  Subject to the provisions of Section 4 of this Warrant
 Agreement, the purchase rights represented by this Warrant Agreement are
 exercisable by the Warrant Holder, in whole or in part, at any time, or
 from time to time during the period set forth in Section 3 above, by
 tendering to the Company at its principal office a duly completed and
 executed notice of exercise in the form attached hereto as Exhibit A (the
 "Notice of Exercise"), the Warrants and the Exercise Price.  Upon receipt
 of such items, the Company shall issue to the Warrant Holder a certificate
 for the number of shares of Common Stock purchased.  The Warrant Holder,
 upon exercise of the Warrants, shall be deemed to have become the holder of
 the Shares represented thereby (and such Shares shall be deemed to have
 been issued) immediately prior to the close of business on the date or
 dates upon which the Warrants are exercised.  In the event of any exercise
 of the rights represented by the Warrants, certificates for the Shares so
 purchased shall be delivered to the Warrant Holder or its designee as soon
 as practical and in any event within ten (10) business days after receipt
 of such notice and, unless the Warrants have been fully exercised or
 expired, new Warrants representing the remaining portion of the Warrants
 and the underlying Shares, if any, with respect to which this Warrant
 Agreement shall not then have been exercised shall also be issued to the
 Warrant Holder as soon as possible and in any event within such ten-day
 period.

           (b)  Net Issue Exercise.  Notwithstanding any provisions herein
 to the contrary, if the fair market value of one share of the Company's
 Common Stock is greater than the Exercise Price (at the date of calculation
 as set forth below), in lieu of exercising the Warrants for cash, the
 Warrant Holder may elect to receive shares equal to the value (as
 determined below) of the Warrants (or portion thereof being canceled) by
 surrender of the Warrants at the principal office of the Company together
 with the duly executed Notice of Exercise in which event the Company shall
 issue to the Warrant Holder a number of shares of Common Stock computed
 using the following formula:  X=Y(A-B)/ A WHERE X= the number of shares of
 Common Stock to be issued to the Warrant Holder; Y= the number of shares of
 the Common Stock purchasable under the Warrants or, if only a portion of
 the Warrants is being exercised, the portion of the Warrants being canceled
 (at the date of such calculation); A= the fair market value of one share of
 the Company's Common Stock (at the date of such calculation); and B=
 Exercise Price (at the date of such calculation).  For purposes of the
 above calculation, fair market value of one share of the Common Stock shall
 be equal to the closing trading price of the Company's Common Stock on the
 day immediately prior to the date the Notice of Exercise is tendered to the
 Company.

      6.   Reservation of Shares.  The Company will at all times have
 authorized and reserved a sufficient number of shares of Common Stock to
 provide for the exercise of the rights to purchase the Shares as provided
 in this Warrant Agreement.  All of the Shares shall be duly authorized and,
 when issued upon such exercise, shall be validly issued, fully paid and
 nonassessable, and free and clear of all preemptive rights.

      7.   No Fractional Shares.  No fractional shares or scrip representing
 fractional shares shall be issued upon the exercise of the Warrant Holder's
 rights to purchase the Shares.

      8.   No Rights as Shareholder.  This Warrant Agreement does not
 entitle the Warrant Holder to any voting rights or other rights as a
 shareholder of the Company prior to the exercise of the Warrant Holder's
 rights to purchase the Shares as provided for herein.

      9.   Redemption.  The Warrants represented by this Warrant Agreement
 are not redeemable by the Company.

      10.  Adjustment Rights.  The Exercise Price and the number of shares
 of Common Stock purchasable hereunder are subject to adjustment from time
 to time, as follows:

           (a)  Merger.  If at any time there shall be a merger or
 consolidation of the Company with or into another corporation when the
 Company is not the surviving corporation, then, as part of such merger or
 consolidation, lawful provision shall be made so that the holder of the
 Warrants evidenced hereby shall thereafter be entitled to receive upon
 exercise of rights herein granted, during the period specified herein and
 upon payment of the aggregate Exercise Price, the number of shares of stock
 or other securities or property of the successor corporation resulting from
 such merger or consolidation, to which a holder of the stock deliverable
 upon exercise of the rights granted in this Warrant Agreement would have
 been entitled in such merger or consolidation if such rights had been
 exercised immediately before such merger or consolidation.  In any such
 case, appropriate adjustment shall be made in the application of the
 provisions of this Warrant Agreement with respect to the rights and
 interests of the holder after the merger or consolidation.  The Company
 will not effect any such merger or consolidation unless, prior to the
 consummation thereof, the successor corporation shall assume, by written
 instrument reasonably satisfactory in form and substance to the Warrant
 Holder, the obligations of the Company under the Warrants.

           (b)  Reclassification, Etc.  If the Company at any time shall, by
 subdivision, combination or reclassification of securities or otherwise,
 change any of the securities as to which purchase rights under this Warrant
 Agreement exist into the same or a different number of securities of any
 other class or classes, this Warrant Agreement shall thereafter represent
 the right to acquire such number and kind of securities as would have been
 issuable as the result of such change with respect to the securities which
 were subject to the purchase rights under this Warrant Agreement
 immediately prior to such subdivision, combination, reclassification or
 other change.

           (c)  Split, Subdivision or Combination of Shares.  If the Company
 at any time shall split or subdivide its Common Stock, the Exercise Price
 shall be proportionately decreased and the number of Shares issuable
 pursuant to this Warrant Agreement shall be proportionately increased.  If
 the Company at any time shall combine or reverse split its Common Stock,
 the Exercise Price shall be proportionately increased and the number of
 Shares issuable pursuant to this Warrant Agreement shall be proportionately
 decreased.

           (d)  Stock Dividends.  If the Company at any time shall pay a
 dividend payable in Common Stock, then the Exercise Price shall be
 adjusted, from and after the date of determination of stockholders entitled
 to receive such dividend, to that price determined by multiplying the
 Exercise Price in effect immediately prior to such date of determination by
 a fraction (i) the numerator of which shall be the total number of shares
 of Common Stock outstanding immediately prior to such dividend and (ii) the
 denominator of which shall be the total number of shares of Common Stock
 outstanding immediately after such dividend.  The Warrant Holder shall
 thereafter be entitled to purchase, at the Exercise Price resulting from
 such adjustment, the number of shares of Common Stock (calculated to the
 nearest whole share) obtained by multiplying (i) the Exercise Price in
 effect immediately prior to such adjustment by (ii) the number of shares of
 Common Stock issuable upon the exercise hereof immediately prior to such
 adjustment and dividing the product thereof by the Exercise Price resulting
 from such adjustment.

           (e)  Other Changes.  If any change in the outstanding Common
 Stock of the Company or any other event occurs as to which the other
 provisions of this Section 10 are not strictly applicable or if strictly
 applicable, would not fairly protect the purchase rights of the Warrant
 Holder in accordance with such provisions, then the Board of Directors of
 the Company shall make an adjustment in the number of and class of shares
 available under the Warrants, the Exercise Price or the application of such
 provisions, so as to protect the purchase rights of the Warrant Holder.
 The adjustment shall be such as will give the Warrant Holder upon exercise
 for the same aggregate Exercise Price the total number, class and kind of
 shares or other property as the Warrant Holder would have owned had the
 Warrants been exercised prior to the event and had the Warrant Holder
 continued to hold such shares until after the event requiring adjustment.

           (f)  Notice of Adjustments; Notices.  Whenever the Exercise Price
 or number of shares purchasable hereunder shall be adjusted pursuant to
 Section 10 hereof, the Company shall issue a certificate signed by its
 Chief Executive Officer or Chief Financial Officer setting forth, in
 reasonable detail, the event requiring the adjustment, the amount of the
 adjustment, the method by which such adjustment was calculated and the
 Exercise Price and number of shares purchasable hereunder after giving
 effect to such adjustment, and shall cause a copy of such certificate to be
 mailed (by first class mail, postage prepaid) to the holder of this
 Warrant.  The Company shall give written notice to the Warrant Holder at
 least 10 days prior to the date on which the Company closes its books or
 takes a record for determining rights to receive any dividends or
 distributions.  The Company shall also give written notice to the Warrant
 Holder at least 30 business days prior to the date on which a merger or
 consolidation of the Company with or into another corporation when the
 Company is not the surviving corporation shall take place.

           (g)  No Change of Warrant Necessary.  Irrespective of any
 adjustment in the Exercise Price or in the number or kind of securities
 issuable upon exercise of the Warrant, unless the Warrant Holder otherwise
 requests, this Warrant Agreement may continue to express the same price and
 number and kind of shares of Common Stock as are stated in this Warrant
 Agreement as initially executed.

      11.  Representations and Warranties of the Warrant Holder.

      The Warrant Holder hereby represents and warrants to the Company as
 follows:

           (a)  Existence and Power.  The Warrant Holder is a (i) is a
 corporation duly organized, validly existing and in good standing under the
 laws of the jurisdiction of its incorporation and (ii) has the corporate
 power and authority to execute, deliver and perform its obligations under
 this Warrant Agreement.

           (b)  Authorization; No Contravention.  The execution, delivery
 and performance by the Warrant Holder of this Warrant Agreement and the
 transactions contemplated hereby (i) have been duly authorized by all
 necessary corporate action of the Warrant Holder and (ii) do not contravene
 the terms of the Certificate of Incorporation or By-laws of the Warrant
 Holder, each as amended as of and through the Issue Date.

           (c)  Governmental Authorization; Third Party Consents.  No
 approval, consent, compliance, exemption or authorization of any
 governmental authority or agency, or of any other person or entity, is
 necessary or required in connection with the execution, delivery or
 performance by, or enforcement against, the Warrant Holder of this Warrant
 Agreement or the transactions contemplated hereby.

           (d)  Binding Effect.  This Warrant Agreement has been duly
 executed and delivered by the Warrant Holder and constitutes the valid and
 binding obligations of the Warrant Holder, enforceable against it in
 accordance with its terms, except as enforceability may be limited by
 applicable bankruptcy, insolvency, reorganization, fraudulent conveyance or
 transfer, moratorium or similar laws affecting the enforcement of
 creditors' rights generally or by equitable principles relating to
 enforceability (regardless of whether considered in a proceeding at law or
 in equity).

           (e)  Purchase for Own Account.  The Warrants issued to the
 Warrant Holder pursuant to this Warrant Agreement, and the Shares to be
 issued upon vesting and exercise thereof, are being or will be acquired for
 the Warrant Holder's own account and with no intention of distributing or
 reselling such securities or any part thereof in any transaction that would
 be in violation of the securities laws of the United States of America, or
 any state.

           (f)  Restricted Securities.  The Warrant Holder understands that
 the Warrants and the Shares issuable upon vesting and exercise of the
 Warrants, will not be registered at the time of their issuance under the
 Securities Act for the reason that the sale provided for in this Agreement
 is exempt pursuant to Section 4(2) of the Securities Act and that reliance
 of the Company on such exemption is predicated in part on such Warrant
 Holder's representations set forth herein.  The Warrant Holder represents
 that it is experienced in evaluating companies such as the Company, has
 such knowledge and experience in financial and business matters as to be
 capable of evaluating the merits and risks of its investment and has the
 ability to suffer the total loss of the investment.  The Warrant Holder
 further represents that it has had the opportunity to ask questions of and
 receive answers from the Company concerning the terms and conditions of the
 Warrants, the business of the Company, and to obtain additional information
 to such Warrant Holder's satisfaction.

           (g)  Accredited Investor.  The Warrant Holder is an "Accredited
 Investor" within the meaning of Rule 501 of Regulation D under the
 Securities Act, as presently in effect.

      12.  Compliance with Securities Act; Transferability of Warrant or
 Shares of Common Stock.

           (a)  Compliance with Securities Act.  The Warrant Holder, by
 acceptance hereof, agrees that the Warrants, and the shares of Common Stock
 to be issued upon exercise of the Warrants, are being acquired for
 investment and that such Warrant Holder will not offer, sell or otherwise
 dispose of the Warrants, or any shares of Common Stock to be issued upon
 exercise of the Warrants except under circumstances which will not result
 in a violation of the Securities Act of 1933, as amended (the "Securities
 Act"), or any applicable state securities laws.  The Warrants and all
 shares of Common Stock issued upon exercise of the Warrants (unless
 registered under) the Securities Act and any applicable state securities
 laws) shall be stamped or imprinted with a legend in substantially the
 following form:

           "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
           SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
           SECURITIES LAW.  THEY MAY NOT BE SOLD OR OFFERED FOR
           SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN
           THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
           RELATED THERETO UNDER SAID ACT AND APPLICABLE STATE
           SECURITIES LAWS OR UNLESS THE COMPANY HAS RECEIVED AN
           OPINION OF COUNSEL THAT SUCH REGISTRATION IS NOT
           REQUIRED TO EFFECTUATE SUCH TRANSACTION."

           (b)  Exchange, Transfer, Assignment.  The Warrants cannot be
 exchanged, transferred or assigned otherwise than in accordance with
 applicable law. Upon compliance with applicable law and surrender of the
 Warrants to the Company with the Assignment Form annexed hereto as Exhibit
 B duly executed, and funds sufficient to pay any transfer tax, the Company
 shall, without charge, execute and deliver a new Warrant Agreement in the
 name of the heir, devisee or assignee named in such instrument of
 assignment and this Warrant Agreement shall promptly be canceled.  Subject
 to the terms hereof, the Warrants may be assigned in whole or in part.

      13.  Restricted Securities.  The Warrant Holder understands that the
 Warrants and the Shares issuable upon vesting and exercise of the Warrants,
 will not be registered at the time of their issuance under the Securities
 Act for the reason that the sale provided for in this Agreement is exempt
 pursuant to Section 4(2) of the Securities Act based on the representations
 of the warrant Holder set forth herein.  The Warrant Holder represents that
 it is experienced in evaluating companies such as the Company, has such
 knowledge and experience in financial and business matters as to be capable
 of evaluating the merits and risks of its investment and has the ability to
 suffer the total loss of the investment.  The Warrant Holder further
 represents that it has had the opportunity to ask questions of and receive
 answers from the Company concerning the terms and conditions of the
 Warrants, the business of the Company, and to obtain additional information
 to such Warrant Holder's satisfaction.  The Warrant Holder is an
 "Accredited Investor" within the meaning of Rule 501 of Regulation D under
 the Securities Act, as presently in effect.

      14.  Registration Rights. Upon the parties' execution of this Warrant
 Agreement and the Acknowledgment and Agreement to the Amended and Restated
 Registration Rights Agreement attached hereto as Exhibit C, Warrant Holder
 shall be made a party to that certain Amended and Restated Registration
 Rights Agreement, dated as of December 8, 1998, by and among the Company,
 the stockholders of the Company named therein and such other stockholders
 and warrant holders of the Company made a party thereto.  In addition,
 within 30 days of the execution of this Warrant Agreement, the Company
 agrees to enter into an agreement with Warrant Holder, in form and
 substance reasonably satisfactory to Warrant Holder, which shall grant
 Warrant Holder the right to transfer its registration rights pursuant to
 such Amended and Restated Registration Rights Agreement dated as of
 December 8, 1998 to any assignee or assignees of all or any part of this
 Warrant or the Shares issuable upon exercise hereof, which assignees, upon
 their execution and delivery of an Acknowledgment and Agreement to the
 Amended and Restated Registration Rights Agreement substantially in the
 form of Exhibit C hereto (with appropriate changes therein) shall each have
 all the rights and obligations of a Demand Stockholder (as defined in such
 Agreement) under such Agreement; provided that no registration statement
 with respect to less than a minimum of 250,000 Shares shall be required to
 be effected by the Company thereunder for the benefit of any such assignee.

      15.  Miscellaneous.

           (a)  No Consequential Damages.  No party hereto shall be entitled
 to consequential damages as a result of any breach of a covenant,
 representation or warranty contained herein.

           (b)  Notices.  All notices, demands and other communications
 provided for or permitted hereunder shall be made in writing and shall be
 by registered or certified first-class mail, return receipt requested,
 telecopier, courier service or personal delivery:

                (i)  if to the Company, to:
                     priceline.com Incorporated
                     Five High Ridge Park
                     Stamford, CT 06905
                     Telecopy:  (203) 595-8345
                     Attention:  Melissa M. Taub, Esq.

                and to:

                     Skadden, Arps, Slate, Meagher, & Flom, L.L.P.
                     One Rodney Square
                     Wilmington, DE  19801
                     Telecopy:  (302) 651-3001
                     Attention:  Patricia Moran Chuff, Esq.

                (ii) if to the Warrant Holder, to:
                     American Airlines, Inc.
                     4333 Amon Carter Boulevard
                     Fort Worth, TX  76155
                     Attention: Craig Kreeger
                     Title:Vice President & General Sales Manager
                     Phone:    817-972-2742
                     Fax: 972-425-7697

                and to:

                     American Airlines, Inc.
                     4333 Amon Carter Boulevard
                     Fort Worth, TX  76155
                     Telephone: 817-967-1254
                     Telecopy:  817-967-4313
                     Attention:  Corporate Secretary

           (c)  All such notices and communications shall be deemed to have
 been duly given when delivered by hand, if personally delivered; when
 delivered by courier, if delivered by commercial courier service; five (5)
 business days after being deposited in the mail, postage prepaid, if
 mailed; and when receipt is mechanically acknowledged, if telecopied.

           (d)  Successors and Assigns; Third Party Beneficiaries.  This
 Agreement shall inure to the benefit of and be binding upon the successors
 and permitted assigns of the parties hereto. No person, other than the
 parties hereto and their successors and permitted assigns, is intended to
 be a beneficiary of this Agreement.

           (e)  Amendment and Waiver.

                (i)   No failure or delay on the part of the Company, or
                      the Warrant Holder in exercising any right, power or
                      remedy hereunder shall operate as a waiver thereof,
                      nor shall any single or partial exercise of any such
                      right, power or remedy preclude any other or further
                      exercise thereof or the exercise of any other right,
                      power or remedy. The remedies provided for herein are
                      cumulative and are not exclusive of any remedies that
                      may be available to the Company and the Warrant
                      Holder at law, in equity or otherwise.

                (ii)  Any amendment, supplement or modification of or to
                      any provision of this Warrant Agreement, any waiver
                      of any provision of this Warrant Agreement, and any
                      consent to any departure by the Company or the
                      Warrant Holder from the terms of any provision of
                      this Agreement, shall be effective only if it is made
                      or given in writing and signed by the Company and the
                      Warrant Holder.

           (f)  Counterparts.  This Warrant Agreement may be executed in any
 number of counterparts and by the parties hereto in separate counterparts,
 each of which when so executed shall be deemed to be an original and all of
 which taken together shall constitute one and the same agreement.

           (g)  Headings.  The headings in this Warrant Agreement are for
 convenience of reference only and shall not limit or otherwise affect the
 meaning hereof.

           (h)  GOVERNING LAW.  THIS WARRANT AGREEMENT SHALL BE GOVERNED BY
 AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT
 REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW OF ANY JURISDICTION.

           (i)  Severability.  If any one or more of the provisions
 contained herein, or the application thereof in any circumstance, is held
 invalid, illegal or unenforceable in any respect for any reason, the
 validity, legality and enforceability of any such provision in every other
 respect and of the remaining provisions hereof shall not be in any way
 impaired, unless the provisions held invalid, illegal or unenforceable
 shall substantially impair the benefits of the remaining provisions hereof.

           (j)  Entire Agreement.  This Warrant Agreement, together with the
 exhibits hereto is intended by the parties as a final expression of their
 agreement and intended to be a complete and exclusive statement of the
 agreement and understanding of the parties hereto in respect of the subject
 matter contained herein.  This Warrant Agreement, together with the
 exhibits hereto, supersedes all prior agreements and understandings between
 the parties with respect to such subject matter.

           (k)  Publicity.  Except as may be required by law, none of the
 parties hereto shall issue a publicity release or public announcement or
 otherwise make any disclosure concerning this Warrant Agreement or the
 transactions contemplated hereby, without prior approval by the other party
 (which approval shall not be unreasonably withheld); provided, however,
 that nothing in this Warrant Agreement shall restrict the Warrant Holder
 from disclosing information (a)that is already publicly available and (b)
 to its attorneys, accountants, consultants and other advisors to the extent
 necessary to obtain their services in connection with the Warrant Holder's
 investment or participation in the Company.  If any announcement is
 required by law to be made by any party hereto concerning this Warrant
 Agreement or the transactions contemplated hereby, prior to making such
 announcement such party will deliver a draft of such announcement to the
 other parties and shall give the other parties an opportunity to comment
 thereon.

           (l)  Charges; Taxes and Expenses.  Issuance of certificates for
 shares upon the exercise of the Warrants shall be made without charge to
 the Warrant Holder for any issue or transfer tax or other incidental
 expense in respect of the issuance of such certificates, all of which taxes
 and expenses shall be paid by the Company.

           (m)  Saturdays, Sundays, Holidays, Etc.  If the last or appointed
 day for the taking of any action or the expiration of any right required or
 granted herein shall be a Saturday, Sunday or a legal holiday, then such
 action may be taken or such right may be exercised on the next succeeding
 day not a Saturday, Sunday or a legal holiday.

           (n)  Lost Warrants.  The Company covenants to the Warrant Holder
 that, upon receipt of evidence reasonably satisfactory to the Company of
 the loss, theft, destruction or mutilation of this Warrant Agreement and,
 in the case of any such loss, theft or destruction, upon receipt of an
 indemnity reasonably satisfactory to the Company, or in the case of any
 such mutilation, upon surrender and cancellation of this Warrant Agreement,
 the Company will make and deliver a new Warrant Agreement of like tenor, in
 lieu of the lost, stolen, destroyed or mutilated document.

           (o)  Further Assurances.  Each of the parties shall execute such
 documents and perform such further acts (including, without limitation,
 obtaining any consents, exemptions, authorizations or other actions by, or
 giving any notices to, or making any filings with, any governmental
 authority or any other person, and otherwise fulfilling, or causing the
 fulfillment of, the various obligations made herein), as may be reasonably
 required or desirable to carry out or to perform the provisions of this
 Warrant Agreement and to consummate and make effective as promptly as
 possible the transactions contemplated by this Warrant Agreement.

 IN WITNESS WHEREOF, this Warrant Agreement has been duly executed and
 delivered by the authorized officers of each of the undersigned.

                               PRICELINE.COM INCORPORATED

                               By: _____________________________
                                   Name:
                                   Title:

                               AMERICAN AIRLINES, INC.

                               By: _____________________________
                                   Name:
                                   Title:

 EXHIBIT A

 NOTICE OF EXERCISE

 To:  priceline.com Incorporated

           1.   ___  The undersigned hereby elects to purchase __________
 shares of the Common Stock of priceline.com Incorporated pursuant to the
 terms of the Participation Warrant Agreement, dated as of __________, 1999,
 by and between priceline.com Incorporated and the undersigned (the
 "Warrant Agreement"), and tenders herewith payment of the purchase price
 of such shares in full.

                ___  The undersigned hereby elects to convert ___________
 percent (____%) of the value of the Warrants pursuant to the provisions of
 Section 5(b) of the Warrant Agreement.

           2.   Please issue a certificate or certificates representing said
 shares in the name of the undersigned.

                                     AMERICAN AIRLINES, INC.

                                     By: ________________________________

                                     ____________________________________
                                     (Print Name of Signatory)

                                     ____________________________________
                                     (Title of Signatory)

 Date: __________________

 EXHIBIT B

 ASSIGNMENT FORM

 TO:  priceline.com Incorporated

 The undersigned hereby assigns and transfers unto _________________________
 of ________________________________________________________________________
              (Please typewrite or print in block letters)
 the right to purchase ____________ shares of the common stock of
 priceline.com Incorporated subject to the Participation Warrant Agreement,
 dated as of ________________, 1999, by and between priceline.com
 Incorporated and the undersigned (the "Warrant Agreement").

 This assignment complies with the provisions of Section 12(b) of the
 Warrant Agreement and is accompanied by funds sufficient to pay all
 applicable transfer taxes.

                                     AMERICAN AIRLINES, INC.

                                     By: ________________________________

                                     ____________________________________
                                     (Print Name of Signatory)

                                     ____________________________________
                                     (Title of Signatory)

 Date: __________________

 EXHIBIT C

 ACKNOWLEDGMENT AND AGREEMENT
 TO THE AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

      WHEREAS, pursuant to a Participation Warrant Agreement, the
 undersigned received a warrant to purchase 5,500,000 shares of common
 stock, par value $.008 per share (the "Shares"), of priceline.com
 Incorporated, a Delaware corporation (the "Company"); and

      WHEREAS, the undersigned wishes to receive certain registration
 rights with respect to such Shares; and

      WHEREAS, the undersigned has reviewed a copy of that certain Amended
 and Restated Registration Rights Agreement, dated as of December 8, 1998
 (the "Agreement"), among the Company, General Atlantic Partners 48, L.P.,
 GAP Coinvestment Partners, L.P., General Atlantic Partners 50, L.P. and the
 stockholders named therein and has been given a copy of the Agreement and
 afforded ample opportunity to read and to have counsel review it, and the
 undersigned is thoroughly familiar with its terms.

      NOW, THEREFORE, in consideration of the mutual premises contained
 herein and in the Agreement and for other good and valuable consideration,
 the receipt and sufficiency of which is hereby acknowledged, the
 undersigned hereby acknowledges and agrees that (i) the undersigned has
 been given a copy of the Agreement and afforded ample opportunity to read
 and to have counsel review it, and the undersigned is thoroughly familiar
 with its terms, (ii) the Shares are subject to terms and conditions set
 forth in the Agreement, (iii) the undersigned does hereby agree fully to be
 bound by the Agreement as a "Demand Stockholder" (as therein defined), and
 upon the execution and delivery of this Acknowledgment and Agreement by the
 Company, the undersigned shall have all the rights and obligations under
 the Agreement as a Demand Stockholder, and (iv) the undersigned does hereby
 name _________________to serve as their representative under the Agreement.

      This 17th day of November, 1999.

 Acknowledged and agreed:

 PRICELINE.COM INCORPORATED                  AMERICAN AIRLINES, INC.

 By: ______________________________          By: __________________________
    Name:                                        Name:
    Title:                                       Title:

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