Document:

Exhibit 10.28

             CONFIDENTIAL 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, America West Airlines, Inc. (the "Warrant Holder"), with a
place of business at 4000 East Sky Harbor Boulevard, Phoenix, Arizona 85034, 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 Hundred Thousand
(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 $59.93 per share
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. Subject to the provisions of Section 4(d)
hereof, Warrant Holder shall have the following 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

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                        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").

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                  (iv)  In the event that the Company does not achieve the $83.3
                        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 the Company's and its
                        affiliates' airline ticket services.

            (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
                        following the Grant Date (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.

            (d)   Warrant Holder's right to early exercise under Section 4(b) is
                  contingent upon Airline's participating exclusively in the
                  Company's leisure airline ticket service as the only "demand
                  collection system" for Warrant Holder's sale of airline
                  tickets over the Internet. For purposes of this Section 4(d),
                  "demand collection system" is narrowly defined as an airline
                  ticket service that (i) enables a consumer to name the price
                  the consumer willing to pay for one or more airline tickets
                  (ii) enables the seller to bind requires the consumer to the
                  consumer's offer price upon the seller's acceptance of the
                  consumer's offer, and (iii) does not permit the consumer to
                  specify the exact airline on which the consumer is willing to
                  fly. In order for

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<PAGE>

                  Warrant Holder to be entitled to the early exercise rights
                  specified in Section 4(b), Warrant Holder must not at any time
                  between the date hereof and the date exercises an early
                  exercise of Warrants in accordance with Section 4(b)
                  participate in any "demand collection system" other than the
                  Company's for the sale of airline tickets over the Internet.
                  For example, if in the first Measuring Period, the Company
                  achieves Net Revenues to that would entitle the Warrant Holder
                  to exercise Warrants for [**]% of the Shares, the Warrant
                  Holder will be entitle to exercise such Warrants at all time
                  thereafter so long as the Warrant Holder at all times from the
                  date hereof though the date of such exercise has not
                  participated in another "demand collection system" for the
                  sale of airline tickets over the Internet. If at any time from
                  the date hereof though to the fifth 5th anniversary of the
                  Grant Date, the Warrant Holder participates in another "demand
                  collection system" for the sale of airline ticket over the
                  Internet, the Warrant Holder's early exercise rights will
                  terminate and be of no further force or effect, and such
                  Warrants will become exercisable on the fifth 5th anniversary
                  of the Grant Date.

      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

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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

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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

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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."

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      (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.

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                  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:

                        America West Airlines, Inc.
                        4000 East Sky Harbor Boulevard
                        Phoenix, Arizona  85034
                        Attention:  Mr. Douglas Parker
                        Title:
                        Phone:   602-693-5261
                        Fax:

                  and to:

                        America West Airlines, Inc.
                        4000 East Sky Harbor Boulevard
                        Phoenix, Arizona  85034
                        Telephone:
                        Telecopy:  602-693-5932
                        Attention:  Linda M. Mitchell, Esq.

            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.

                                      -9-
<PAGE>

            (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.

                                      -10-
<PAGE>

            (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.

                                      -11-
<PAGE>

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:

                                    AMERICA WEST AIRLINES, INC.

                                    By:__________________________________
                                        Name:
                                        Title:

                                      -12-
<PAGE>

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.

                                     AMERICA WEST AIRLINES, INC.

                                     By:________________________________

                                     ___________________________________
                                     (Print Name of Signatory)

                                     ___________________________________
                                     (Title of Signatory)

Date:_____________________

                                      -13-
<PAGE>

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.

                                     AMERICA WEST AIRLINES, INC.

                                     By:________________________________

                                     ___________________________________
                                     (Print Name of Signatory)

                                     ___________________________________
                                     (Title of Signatory)

Date:_____________________
<PAGE>

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 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                  AMERICA WEST AIRLINES, INC.

By: _____________________________           By:_________________________
    Name:                                      Name:
    Title:                                     Title:

                                       -2-

[**] = Confidential Treatment requested for redacted portionExhibit 10.26

                         CONTINUING EMPLOYMENT AGREEMENT

      This Continuing Employment Agreement ("Agreement ") is made effective as
of December 16, 1999 between priceline.com, Incorporated, a Delaware corporation
having an office located at Five High Ridge Park, Stamford, Connecticut 06905
(the "Company"), Walker Digital Corporation, a Connecticut corporation, having
an office located at One High Ridge Park, Stamford, Connecticut 06905 ("Walker
Digital") (the Company and Walker Digital are sometimes referred to herein
collectively as the "Companies"), and Melissa M. Taub, residing at 90 Pumping
Station Road, Ridgefield, Connecticut 06877 (the "Employee").

      In consideration of the covenants and promises set forth below, the
Companies and the Employee, intending to be bound legally, agree as follows:

1. Resignation of Officer Positions and Change of Duties.

(a) The Employee hereby resigns as an officer and director of the Companies and
each subsidiary of the Companies effective as of the date hereof. The Company
acknowledges that the Employee shall not be considered an officer of the Company
for purposes of the Securities Exchange Act of 1934, as amended, including
Section 16(b) thereof, after the date hereof.

(b) The Companies and the Employee have mutually agreed that the Employee's
employment relationship with the Company shall continue from the date hereof and
shall terminate as of December 16, 2000 (the "Termination Date").

(c) For the period commencing on December 17, 1999 and ending on the Termination
Date, the Employee shall continue to serve as a non-officer employee of the
Companies. During this period, the Employee's duties as an employee will be only
those which are mutually agreed between her and the Companies, with the
Companies' decision as to such duties to be determined solely by Paul Francis.
As a result, the Companies agree that notwithstanding any of the provisions of
the Employment Letter dated September 10, 1998 (the "Employment Letter"), the
Employee's employment with the Companies will not be terminated by the Companies
prior to the Termination Date.

2. Consideration. In exchange for a waiver and release, as set forth on Exhibit
A hereto, of any claims that the Employee has or may have against the Companies
and vice versa which the Employee and the Companies will deliver upon
<PAGE>

execution of this Agreement, and in lieu of any other benefits to which the
Employee is or may be entitled under the Company's employment and severance
policies or under the Employment Letter, the Companies and the Employee have
agreed that Employee shall continue employment with the Company on the terms and
conditions set forth herein. As additional consideration for her continued
employment with the Company hereunder, the Companies and the Employee hereby
agree to execute an identical waiver and release with respect to the Company as
of the Termination Date.

(a) Salary Continuation. The Employee shall be entitled to continuation of base
salary of $200,000 per year, payable in accordance with the Company's regular
payroll practices, through the Termination Date, subject to Section 2(i) hereof.

(b) Bonus. The Employee shall be entitled to receive a bonus for fiscal year
1999, in the amount of $22,700, which bonus shall be paid by the Company no
later than December 31, 1999.

(c) Stock Options. The Employee currently holds unexercised options ("Employee
Options") to purchase an aggregate of 200,000 shares of Common Stock of the
Company ("Underlying Common Stock") granted pursuant to the priceline.com LLC
1997 Omnibus Plan ("1997 Omnibus Plan"), and in accordance with the
priceline.com LLC Non-Qualified Option Agreement Pursuant to the 1997 Omnibus
Plan, dated as of July 18, 1998 ("Option Agreement"). Notwithstanding anything
else to the contrary including the provisions of the 1997 Omnibus Plan or the
Option Agreement:

      (i)   116,667 of the Employee Options are fully vested as of the date of
            this Agreement Date (the "Current Vested Options");

      (ii)  83,333 of the Employee Options will fully vest on June 1, 2000
            without any risk of forfeiture (the "Future Vested Options").
            Vesting of the Future Vested Options will occur simply with the
            passage of time and the Future Vested Options will be fully vested
            on June 1, 2000.

      (iii) the Employee shall be entitled to exercise the Current Vested
            Options, in whole or in part and from time to time, during the
            period commencing with the date hereof and ending 90 days after the
            Termination Date;
<PAGE>

      (iv)  the Employee shall be entitled to exercise the Future Vested
            Options, in whole or in part and from time to time, during the
            period commencing on June 1, 2000 and ending 90 days after the
            Termination Date;

      (v)   the Executive's execution and compliance with the terms of this
            Agreement shall be deemed to constitute compliance with the
            provisions of paragraphs 6(b), (c) and (d) of the Option Agreement
            and any similar provisions of the 1997 Omnibus Plan;

      (vi)  subject to the limitations set forth in the letter between the
            Employee and the Company dated July 18, 1999 (the "Lock-Up Letter")
            and any policy of the Company in effect during the term of this
            Agreement with respect to the sale by its employees of its Common
            Stock, the Employee shall be entitled upon exercise of the Employee
            Options to sell the Underlying Common Stock to the public pursuant
            to the S-8 Registration Statement (Registration No. 333-83233) ("S-8
            Registration Statement"), or another such Registration Statement
            covering option shares which supercedes the S-8 Registration
            Statement;

      (vii) the Company agrees that Employee shall not be required to enter into
            a new lock-up agreement after the expiration of the Lock-Up Letter;

      (viii) the Company agrees that it will keep the S-8 Registration Statement
            effective for the benefit of the Employee for the same period of
            time as the same is kept effective for the benefit of any other
            employee of the Company;

      (ix)  the Company agrees that it shall withhold from the number of shares
            otherwise to be delivered upon exercise of the Employee Options a
            number of shares of Underlying Common Stock having a fair market
            value equal to or less than the Company's aggregate withholding tax
            obligation with respect to exercise of the Employee Options;

      (x)   the Company agrees it will permit a cashless exercise of the
            Employee Options, which means that assuming a simultaneous exercise
            of the Employee Options and sale of some or all of the Underlying
            Common Stock, Employee may deliver to the Company out of the sale
            proceeds a sum equal to the exercise price and withholding tax
            obligation for all Employee Options exercised.
<PAGE>

Except as modified by this Agreement, the Employee shall be entitled to all the
other rights and benefits relating to the Employee Options which are set forth
in the 1997 Omnibus Plan and the Option Agreement.

(d) Walker Digital Options. The Employee shall be granted as of the date hereof
non-qualified stock options for 25,000 shares of Walker Digital common stock
pursuant to the Walker Digital 1999 Stock Option Plan (the "Walker Digital
Option Plan") at an exercise price per share of $1.00. Such options shall be
fully vested on grant and shall terminate on December 16, 2009 notwithstanding
anything else to the contrary in the Walker Digital Option Plan, and shall
otherwise have such terms and conditions as are set forth in the Walker Digital
Option Plan and any related stock option agreement.

(e) Medical and Dental Plans. The Employee shall be entitled to continuation of
group health benefits (medical and dental) as well as life and disability
insurance pursuant to the Company's standard programs as in effect from time to
time, in accordance with the terms of such plans as applicable to employees
generally, until the Termination Date. Thereafter, the Employee shall be
entitled to continuation of such benefits under the Company's standard programs
as in effect from time to time (or continuation of substantially similar
benefits, through a third party carrier, at the Company's election) for a period
of up to 18 months (or in the case of health benefits, such longer period as may
be required by COBRA), provided that the Employee makes any necessary conversion
and pays the full cost of the premium.

(f) Other Benefits. The Employee shall be entitled to continued participation in
all other employee and Employee benefits plans of the Company (other than the
right to participate in the Company's stock and option plans, except as
otherwise set forth in this Agreement) until the earlier of (i) the Termination
Date and (ii) such date that Employee accepts alternative employment with any
employer other than the Company or Walker Digital providing similar benefits.
Such benefits include without limitation the right to participate in the
Company's 401(k) plan, and workers' compensation and unemployment programs.

(g) Company Equipment. Notwithstanding the terms of the Confidentiality
Agreement referenced in Section 3 below, the Employee may keep her
Company-issued home computer, fax printer and cellular telephone (with continued
telephone service after the Termination Date at the Employee's cost). The
Employee will return any other Company equipment to the Company on or before the
Termination Date.
<PAGE>

(h) Continued Indemnification and Insurance. As a former officer and employee of
the Companies, Employee shall continue to be entitled to the benefit of the
indemnification provisions contained in the Certificates of Incorporation and
By-Laws of the Companies with respect to any acts or omissions that occurred
during her tenure as an officer and employee. In addition, the Employee shall
continue to be entitled to the benefit of coverage under all director and
officer and professional risk/liability (legal malpractice) insurance policies,
maintained by the Company with respect to any acts or omissions that occurred
during her tenure as an officer and employee. At a minimum, the Company agrees
to keep and maintain such policies in full force and effect (and on terms no
less favorable then the terms now in effect) until such time as the Employee has
no legal or other liability for any acts or omissions that occurred during her
tenure as an officer and employee.

(i) Potential Loss of Salary. Notwithstanding the salary continuation set forth
in paragraph 2(a) above, the Employee agrees that if the Employee performs
services for any entity other than any of the Companies or is self-employed
during the period from June 16, 2000 to December 16, 2000, any amounts received
by the Employee that are recognized as income to the Employee for such period
from such other entity or from self-employment (other than income resulting from
the exercise of stock options, the grant or vesting of other equity awards or
other similar events, including the sale of Underlying Common Stock) will offset
on a dollar-for-dollar basis the Company's obligation to continue to make salary
payments to the Employee pursuant to paragraph 2(a). The Employee is under no
obligation to mitigate or seek employment prior to the Termination Date.

(j) No Severance or Other Benefits. The Company and the Employee agree that the
Employee will be entitled to no severance or other benefits except as expressly
set forth herein.

3. Confidentiality Agreement. The Employee acknowledges that the Employee's
obligations to the Company set forth in the Employee's Confidentiality
Agreement, dated September 10, 1998, remain in full force and effect and are not
diminished in any way by this Agreement. Any time periods contained in such
agreement for post-termination obligations shall be deemed to commence as of the
Termination Date.

4. Non-Disclosure. The Company and the Employee agree not to disclose the
provisions of this Agreement to any person or entity, with the exception of
counsel, accounting and tax advisors, Employee's immediate family, or as
required by applicable law. However, since the fact of Employee's resignation as
an officer of the Company requires public disclosure and the filing of a form
8-K report
<PAGE>

with the Securities and Exchange Commission, the Company and the Employee agree
to cooperate in all such public disclosure and in the making of such 8-K filing,
with Employee to have approval authority over the content of such disclosure and
filing. In addition, the Employee shall have the right to approve communications
to personnel of the Companies and all other third parties concerning the
Employee's termination of employment with the Companies.

5. Mutual Non-Disparagement. The Employee and the Companies agree not to make
any statement, written or verbal, to any party reasonably likely to be harmful
to the other party or to be injurious to the goodwill, reputation or business
standing of the other party at any time in the future; provided, however, that
this non-disparagement clause shall not preclude any party or its agents or
representatives from any good faith response to any inquiries under oath or in
response to governmental inquiry.

6. Mutual Release of Claims with Respect to the Company. The Employee and the
Companies agree to deliver the Mutual Release of Claims and Waiver of Rights
document in the form attached hereto as Exhibit A both (i) on or prior to
December 16, 1999, to be effective as of such date and (ii) on or prior to the
Termination Date, to be effective as of such date.

7. Merger and Integration. Except as expressly set forth herein, all prior
understandings and agreements between the parties are merged into this
Agreement, which collectively with the Mutual Release of Claims and Waiver of
Rights, express the complete understanding and agreement between the parties.

8. Advice of Counsel. The Employee acknowledges and represents that the Employee
has had the opportunity to obtain the advice of counsel, and is entering into
this Agreement after carefully considering the legal ramifications thereof. The
Employee acknowledges and represents that the Employee is entering into these
agreements voluntarily, knowingly of the Employee's own free will, and without
undue influence or duress.

9. Headings. The section headings contained in this Agreement are for
convenience of reference only, are not intended to be a part of this Agreement
and shall not be construed to define, modify, alter or describe the scope or
intent of any of the terms, covenants or conditions of this Agreement.

10. Severability. If any term or provision of this Agreement or the application
thereof to any person, entity or circumstance shall to any extent be determined
by a court of competent jurisdiction to be invalid or unenforceable, the
<PAGE>

remainder of this Agreement, or the application of such terms or provision to
such person, entity or circumstance other than those that are held invalid or
unenforceable, shall not be affected thereby, and each other term and provision
shall be valid and enforced to the fullest extent permitted by law. The parties
authorize the court to reduce in scope or modify, if possible, all invalid or
unenforceable provisions, so that they become valid or enforceable.

11. Successors. This Agreement shall be binding upon, and shall inure to the
benefit of the parties hereto and their respective heirs, executors,
administrators, successors and assigns.

12. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the state of Connecticut as they apply to contracts
entered into and wholly to be performed within such state by residents thereof.

13. Authorization.

(a) The Companies have full power and authority to execute and deliver this
Agreement and the Mutual Release of Claims and Waiver of Rights and to
consummate the transactions contemplated hereby. All actions required to be
taken by the Companies, including obtaining the approval by the Boards of
Directors and the Option Committees of the respective Companies, in order to
authorize the Companies to execute this Agreement and the Mutual Release of
Claims and Waiver of Rights and to perform their obligations hereunder and to
consummate the transactions contemplated hereby have been duly and properly
taken. When executed and delivered by the appropriate officers of the Companies
this Agreement and the Mutual Release of Claims and Waiver of Rights shall
constitute the legal and binding obligations of the Companies enforceable in
accordance with its terms.

(b) This Agreement and the Mutual Release of Claims and Waiver of Rights do not
violate any provision of the Certificate of Incorporation or By-laws or the
Operating Agreement of the Companies, nor does it violate any material provision
of, or result in any material default or acceleration of any material
obligations under, result in the creation or imposition of any material lien
pursuant to, or require any consent under any material agreement to which the
Companies are a party or by which the Companies are bound.

(c) The Employee has full power and authority to execute and deliver this
Agreement and the Mutual Release of Claims and Waiver of Rights and to
consummate the transactions contemplated hereby. When executed and delivered by
the Employee, this Agreement and the Mutual Release of Claims and Waiver of
<PAGE>

Rights shall constitute the legal and binding obligations of the Employee
enforceable in accordance with its terms.

      IN WITNESS WHEREOF, the parties hereto have set their hands as of the 16th
day of December, 1999.

                              The Companies

                              priceline.com, Incorporated
                              (THE COMPANY)

                              By:

                                    __________________________________
                                    its ______________________________

                              Walker Digital Corporation
                              (WALKER DIGITAL)

                              By:

                                    __________________________________
                                    its ______________________________

                              The Employee

                                    __________________________________

                              DATE SIGNED: _______________

State of Connecticut
                        ss.
County of

Personally appeared ______________________, the signer and sealer of the
foregoing Agreement, who acknowledged the same to be his free act and deed
before me.
<PAGE>

                  Notary Public
                  My Commission Expires:
<PAGE>

                                                                       Exhibit A

                  MUTUAL RELEASE OF CLAIMS AND WAIVER OF RIGHTS

1. Mutual Release of Claims. (a) Melissa M. Taub (the "Employee"), on behalf of
the Employee and the Employee's heirs, executors, administrators,
representatives, successors and assigns (such other persons being collectively
referred to for the purposes of this document as the "Employee Persons"), in
consideration of the terms and conditions set forth herein and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, hereby remises, releases and forever discharges priceline.com,
Incorporated (the "Company") and Walker Digital Corporation ("Walker Digital")
(the Company and Walker Digital are sometimes referred to herein collectively as
the "Companies") and their respective parents, subsidiaries, affiliated
corporations, successors and assigns and their respective officers, directors,
shareholders, employees and agents (such other persons being collectively
referred to for the purposes of this document as the "the Company Persons"), and
(b) the Companies, on behalf of themselves and the Company Persons, in
consideration of the terms and conditions set forth herein and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, hereby remise, release and forever discharge the Employee and the
Employee Persons, in each case, from any and all claims, damages, actions,
causes of action, losses, liabilities, suits, debts, dues, sums of money,
accounts, reckonings, bonds, bills, specialties, covenants, contracts,
controversies, agreements, promises, variances, trespasses, judgments, extents,
executions, costs and expenses of any nature whatsoever, except for the
obligations set forth in the Continuing Employment Agreement dated as of
December 16, 1999 between the Employee and the Companies ("Continuing Employment
Agreement"), but including, without limitation, court costs and attorneys' fees,
whether or not now known, claimed or suspected, fixed or contingent, in law or
in equity (hereinafter collectively referred to as "Claims") which the
respective releasing party (in each case, the "Releasor") now has, has ever had,
has ever claimed to have had or may have against the respective released party
(in each case, the "Releasee") from the beginning of the world to the date of
the execution of this Mutual Release of Claims, including without limitation:
any and all Claims for violation of the common law, including, but not limited
to, wrongful discharge of employment, breach of contract -- express or implied,
negligent or intentional infliction of emotional distress, negligent or
intentional misrepresentations, negligence, slander, defamation or
self-defamation; any and all Claims that Employee may have to acquire any
securities of the Company; any and all Claims for violation of any federal,
state, local or municipal rule, regulation or statute, including, but not
limited to, the Age Discrimination in Employment Act of
<PAGE>

1967, 29 U.S.C.ss.621 et seq. (the "ADEA"), Title VII of the Civil Rights Act of
1964, 42 U.S.C.ss.2000 et seq., the Americans with Disabilities Act of 1990, 42
U.S.C.ss.12101, et seq., the Family and Medical Leave Act of 1993, 29 U.S.C.ss.
2601, et seq., the Equal Pay Act of 1963, the Fair Labor Standards Act of 1938,
29 U.S.C. ss.201, the Civil Rights Act of 1991, the Employee Retirement Income
Security Act of 1974, 29 U.S.C.ss.201 et seq., the Connecticut Fair Employment
Practices Act, Conn. Gen Stat. 46a-60 et seq., and the Connecticut Wage and Hour
Law, Conn. Gen. Stat. 31-70 et seq., each as amended; any and all Claims for
violation of any public policy having any bearing whatsoever on the terms or
conditions of the Employee's employment or cessation of employment with the
Companies; any and all Claims arising directly or indirectly out of the
Employee's employment by the Companies; and any and all Claims for attorneys'
fees and costs. Each Releasor further agrees that she or it will not seek or be
entitled to any personal recovery in any Claim whatsoever against any Releasee
for any of the matters set forth in this paragraph.

      Except with respect to the specific obligations of the parties specified
in the Continuing Employment Agreement, all prior understandings and agreements
between the parties are merged into this Agreement, which constitutes the
complete understanding and agreement between the parties.

      Each Releasor acknowledges that certain states provide that a general
release of claims does not extend to claims which the Releasor does not know or
suspect to exist in the Releasor's favor at the time of executing the release
which, if known by the Releasor may have materially affected the Releasor's
entering into the release of claims. Being aware that such statutory protection
may be available to the Releasor, each Releasor expressly, voluntarily and
knowingly waives any arguable benefit or protection of any such statute in
executing this Mutual Release of Claims, known or unknown.

      Each Releasor further acknowledges that the Releasor's signature below
signifies that the Releasor is entering into this Mutual Release of Claims
freely, knowingly and voluntarily with a full understanding of its terms.

      This Release may not be changed orally.

2. Waiver of Rights. The Employee understands that there are various state,
federal and local laws that prohibit employment discrimination on the basis of,
among other things, age, sex, race, national origin, religion and disability and
that these laws are enforced by various government agencies. The Employee
intends to waive and hereby does waive any right that the Employee may have to
seek or be entitled to any personal recovery against the Companies under the Age
Discrimination in Employment Act of 1967 as amended (the "ADEA"), and under
<PAGE>

any other laws regarding employment discrimination with respect to her
employment with the Companies. The Employee acknowledges and understands that
the release of claims under the ADEA is subject to special waiver protections
under 29 U.S.C. 626(f). In accordance with that section, the Employee
specifically agrees that the Employee is knowingly and voluntarily releasing and
waiving any rights or claims of discrimination under the ADEA. The Employee
specifically acknowledges that the waiver of rights contained herein and the
Mutual Release of Claims fully comply with 29 U.S.C. ss. 626(f) in that:

      (i)   the waiver and Release of Claims are part of an Agreement between
            the Employee and the Company and are fully understood by the
            Employee;

      (ii)  the waiver and Release of Claims specifically refer to rights or
            claims arising under the ADEA;

      (iii) this waiver and the Release of Claims do not apply to any rights
            arising after the date of execution of this Agreement;

      (iv)  the Employee is waiving rights or claims for age discrimination
            under the ADEA in exchange for the consideration described in the
            Continuing Employment Agreement, which provides additional value
            relative to anything of value to which the Employee already is
            entitled;

      (v)   the Employee has been advised in writing to consult with an attorney
            prior to executing this Agreement and has in fact consulted with an
            attorney of her choice;

      (vi)  the parties agree that the Employee has had at least twenty-one (21)
            days within which to consider this Agreement;

      (vii) this Agreement provides the Employee with a period of 7 days
            following the execution of this Agreement to revoke the Agreement;
            and

      (viii) this Agreement will not become effective until the revocation
            period set forth in the preceding clause (vii) shall have expired.

3. Rescission Period; Effective Date.

THIS AGREEMENT SHALL NOT BECOME EFFECTIVE AND ENFORCEABLE UNTIL THE EIGHTH DAY
AFTER THE DATE THIS AGREEMENT IS
<PAGE>

EXECUTED BY THE EMPLOYEE. THE PARTIES UNDERSTAND AND AGREE THAT THE EMPLOYEE MAY
REVOKE THIS AGREEMENT AFTER HAVING EXECUTED IT BY SO ADVISING THE COMPANIES IN
WRITING, PROVIDED SUCH WRITING IS RECEIVED BY THE COMPANIES BY 11:59 P.M. ON THE
SEVENTH DAY AFTER THE DATE OF EXECUTION OF THIS AGREEMENT. SUCH NOTICE OF
REVOCATION MUST BE DELIVERED TO THE ATTENTION OF _____________________ AT
_____________________.

IF THE EMPLOYEE DOES NOT ELECT TO REVOKE THIS AGREEMENT WITHIN THE SEVEN DAY
REVOCATION PERIOD REFERRED TO IN THE PRECEDING PARAGRAPH, THIS RELEASE OF CLAIMS
SHALL BECOME EFFECTIVE AND ENFORCEABLE AT 12:00 A.M. ON THE EIGHTH DAY AFTER THE
DATE THAT THE EMPLOYEE EXECUTES THIS AGREEMENT (SUCH DATE OF EFFECTIVENESS BEING
REFERRED TO AS THE "EFFECTIVE DATE").
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Mutual Release
of Claims and Waiver of Rights as of the 16th day of December, 1999.

                              The Companies

                              priceline.com, Incorporated
                              (THE COMPANY)

                              By:

                                    __________________________________
                                    its ______________________________

                              Walker Digital Corporation
                              (WALKER DIGITAL)

                              By:

                                    __________________________________
                                    its ______________________________

                              The Employee

                                    __________________________________

                              DATE SIGNED: _______________

State of Connecticut
                        ss.
County of

Personally appeared ____________, the signer and sealer of the foregoing
Agreement, who acknowledged the same to be his free act and deed before me.

                  Notary Public
                  My Commission Expires:
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Mutual Release
of Claims and Waiver of Rights as of the 16th day of December, 1999.

                              The Companies

                              priceline.com, Incorporated
                              (THE COMPANY)

                              By:

                                    __________________________________
                                    its ______________________________

                              Walker Digital Corporation
                              (WALKER DIGITAL)

                              By:

                                    __________________________________
                                    its ______________________________

                              The Employee

                                    __________________________________

                              DATE SIGNED: _______________

State of Connecticut
                        ss.
County of

Personally appeared ____________, the signer and sealer of the foregoing
Agreement, who acknowledged the same to be his free act and deed before me.

                  Notary Public
                  My Commission Expires:

                                        6

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