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EX-10.1 2 d384719dex101.htm EMPLOYMENT OFFER LETTER

Exhibit10.1 ExecutionCopy Yahoo!Inc. 701FirstAvenue Sunnyvale,California July16,2012 MarissaMayer DearMarissa: OnbehalfofYahoo!Inc.(Yahoo!ortheCompany),IampleasedtoofferyouthepositionofPresidentandChief ExecutiveOfficer,reportingtotheCompanysBoardofDirectors(theBoard),workingattheCompanysheadquartersat 701FirstAvenueinSunnyvale,California.YouwillbeappointedtotheBoarduponyourcommencementof employment.YourappointmentsaresubjecttoapprovalbytheBoardandyourcompensationpackageasoutlinedhereinis subjecttoapprovaloftheCompensationCommitteeoftheBoard(CompensationCommittee).Forpurposesofthisletter, yourfirstdayofworkatYahoo!willbeconsideredyourEmploymentStartDate.YourEmploymentStartDatewillbe July17,2012. BaseSalary.Yourstartingannualbasesalarywillbe$83,333.33permonth($1,000,000.00annually),lessapplicabletaxes, deductionsandwithholdings,paidsemimonthlyandsubjecttoannualreview.Yahoo!sregularlyscheduledpaydaysare currentlyonthe10 th and25 th ofeverymonth. IncentiveCompensation.YoualsowillbeeligibletoparticipateintheannualExecutiveIncentivePlan(EIP),withatarget incentiveof200%ofyourannualbasesalary(theTargetAward),anda2012maximumof400%ofyourannualbasesalary ifyouexceedyourtargets,proratedbasedontheperiodoftimeyouareemployedatYahoo!inanEIPeligibleposition duringtherelevantCompanyfiscalyear,lessapplicabletaxes,deductions,andwithholdings.Targetincentivesdonot constituteapromiseofpayment.ToqualifyfortheEIP

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incentivebonus,youmustremainemployedwiththeCompanythroughthedatethattheincentivebonusispaid(asspecified intheEIP).YouractualEIPpayoutwilldependonYahoo!financialperformanceand,totheextentapplicable,the CompensationCommitteesassessmentofyourindividualperformance,andanyEIPpayoutissubjectto,andgovernedby, thetermsandrequirementsoftheEIPdocument.EIPbonusesareusuallypaidinMarchorApriloftheyearafterthefiscal yearforwhichtheyareearned. AnnualEquityAwards.SubjecttoapprovalbytheCompensationCommittee,asaseniorleaderofYahoo!,withrespectto the2012performanceyear,youwillbeentitledtoreceiveequityawardsundertheYahoo!Inc.1995StockPlan(theStock Plan)withanaggregateawardvalueof$12million(the2012AnnualGrant),withfiftypercent(50%)ofsuch2012Annual GrantintheformofRestrictedStockUnits(the2012RSUs)andtheremainingfiftypercent(50%)ofsuch2012Annual GrantintheformofoptionstopurchasetheCompanyscommonstock(the2012StockOptions).The2012RSUsshallbe awardedtoyouonYahoo!sfirstregularlyscheduledgrantdateafteryourEmploymentStartDate,whichisJuly26,2012(the NextGrantDate).Thenumberof2012StockOptionsshallbecalculatedontheNextGrantDateinaccordancewiththe Companysoptionvaluationpractices,andsubjecttoapplicableadjustmentsintheeventofstocksplits,stockdividendsor othersimilarcapitaltransactionsbetweencalculationandgrant.The2012StockOptionsshallbegrantedononeofthe Companysregularlyscheduledgrantdatesin2012,currentlycontemplatedtobeinNovember,2012.The2012RSUsshall vestequallyonthefirst,secondandthirdanniversariesoftheNextGrantDate,andthe2012StockOptionsshallvestinthree equaltranchesonthetwelvemonth,eighteenmonthandthirtymonthanniversariesoftheNextGrantDate,providedthat,in eachcase,youareemployedbytheCompanyontheapplicablevestingdateorasotherwiseprovidedherein,andprovided thatyousatisfythefinancialandotherperformancecriteriaestablishedatthetimeofgrantbytheCompensationCommittee afterconsultationwithyou.Intheeventyour 2

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employmentisterminatedbytheCompanywithoutCause,duetodisability(asdefinedundertheCompanysapplicablelong termdisabilityplan),byyouwithGoodReasonorasaresultofyourdeath,any2012RSUswhichwouldhavevestedwithin thesixmonthsaftersuchterminationshallimmediatelyvest,andany2012StockOptionsthatwouldhavevestedinthesix monthsfollowingterminationofemploymentiftheapplicableperformancecriteriawassatisfied,shallremainsubjectto satisfactionofsuchperformancecriteriaand,ifsuchcriteriaissatisfied,vestasifyouwereemployedonsuchvestingdate.All other2012RSUsand2012StockOptionsshallbeimmediatelyforfeited,asshallallunvested2012RSUsand2012Stock OptionsinthecaseofaCauseterminationbytheCompanyoravoluntaryresignationbyyouwithoutGoodReason.The 2012RSUswillprovideforautomaticuseofaportionofthe2012RSUstocoverminimumtaxwithholdingsothatyouwill notneedtomakeanycashpaymentstocoversuchtaxwithholding. MakeWholeRestrictedStockUnits.YouwillalsoreceiveamakewholegrantofrestrictedstockunitsundertheStockPlan withanaggregateawardvalueof$14million(MakeWholeRSUs),suchgranttobemadetoyouontheNextGrantDate. TheMakeWholeRSUswillvestasfollows:(a)onefifthoffourmilliondollarsofMakeWholeRSUswillvestonthe17 th dayofeachmonthof2012startinginAugustandbepaidoutbytheendofsuchmonth(b)onetwelfthofsevenmillion dollarsofMakeWholeRSUswillvestonthe17 th dayofeachmonthin2013andbepaidoutbytheendofthemonthin whichtheyvestand(c)onetwelfthofthreemilliondollarsofMakeWholeRSUswillvestonthe17 th dayofeachmonthin 2014andbepaidoutbytheendofthemonthinwhichtheyvestprovidedineachcasethatyouareemployedbythe Companyontheapplicablevestingdateor,ifearlier,willvest(andbepaidout)(i)upontheterminationofyouremployment bytheCompanywithoutCause,1 (ii)duetoyourresignationfor
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ForpurposesoftheMakeWholeRSUs,theOneTimeRetentionAward(asprovidedhereinwithregardtoseverance benefits)andthe2012AnnualGrant,CauseshallmeanterminationofyouremploymentwiththeCompanybasedupon theoccurrenceofoneormoreofthefollowingwhich,withrespecttoclauses(1),(2)and(3)below,ifcurable,andclause (5)below(butonlyifcureispermittedunderitsproviso),youhavenotcuredwithinfourteen(14)daysafteryoureceive writtennoticefromtheCompanyspecifyingwithreasonableparticularitysuchoccurrence:(1)yourrefusalormaterial failuretoperformyourjobdutiesandresponsibilities(otherthanbyreasonofyourseriousphysicalormentalillness, injury,ormedicalcondition),(2)yourfailureorrefusaltocomplyinanymaterialrespectwithmaterialCompanypolicies orlawfuldirectivesoftheBoard,(3)yourmaterialbreachofanycontractoragreementbetweenyouandtheCompany (includingbutnotlimitedtothisletteragreementandanyEmployeeConfidentialityandAssignmentofInventions AgreementorsimilaragreementbetweenyouandtheCompany),oryourmaterialbreachofanystatutoryduty,fiduciary dutyoranyotherobligationthatyouowetotheCompany,(4)yourcommissionofanactoffraud,theft,embezzlementor otherunlawfulactagainsttheCompanyorinvolvingitspropertyorassets,(5)yourengaginginunprofessional,unethical orotherintentionalactsthatmateriallydiscredittheCompanyoraremateriallydetrimentaltothereputation,characteror standingoftheCompany,providedthat,ifsuchactorengagementisnotwillfulmisconductandcurable(asdeterminedin thegoodfaithdiscretionoftheBoard),youwillbegiventheopportunitytocureasprovidedabove,or(6)yourindictment orconvictionorpleaofnolocontendreorguiltypleawithrespecttoanyfelonyorcrimeofmoralturpitude. 3

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GoodReason,2 (iii)uponyourdeathwhileemployedwiththeCompanyor(iv)upontheterminationofyouremploymentby theCompanyduetodisability(asdefinedundertheCompanyslongtermdisabilityplan).Followingthevestingofthe MakeWholeRSUs,youwillreceiveoneshareofYahoo!Inc.commonstockforeachvestedRSU(subjecttoanyapplicable taxwithholdingsordeductions).ThegrantwillprovideforautomaticuseofaportionoftheMakeWholeRSUstocover minimumtaxwithholdingsothatyouwillnotneedtomakeanycashpaymentstocoversuchminimumtaxwithholding.The Companyreservestherighttoutilizerestrictedstockinsteadofrestrictedstockunitsforthisgrant. OneTimeRetentionEquityAward.YouwillalsoreceivearetentionequityawardundertheStockPlanwithanaggregate awardvalueof$30million(theRetentionEquityAward),suchgranttobemadetoyouatthesametime,inthesameforms (includingtheutilizationofperformancecriteria),inthesamemanner,inthesameproportionsasthe2012AnnualGrantand subjecttothesameconditions,exceptthattheRetentionEquityAwardrestrictedstockunitswillvest1/5 th onthe anniversaryoftheNextGrantDateineachyearfrom2013to2017,andtheRetentionEquityAwardoptionswillbe1/5 th (ratherthan1/3 rd )vestinginequalinstallmentsat
2

ForpurposesoftheMakeWholeRSUs,theOneTimeRetentionAward,the2012AnnualGrantandasprovidedherein withregardtoseverance,GoodReasonshallbedeemedtoexistonlyiftheCompanyshallfailtocorrectwithin30days afterreceiptofwrittennoticefromyouspecifyinginreasonabledetailthereasonsyoubelieveoneofthefollowingevents orconditionshasoccurred(providedsuchnoticeisdeliveredbyyounolaterthan30daysaftertheinitialexistenceofthe occurrence):(1)amaterialdiminutionofyourthencurrentaggregatebasesalaryandtargetbonusamount(otherthanpro ratareductionsthatalsoaffectsubstantiallyallothersimilarlysituatedemployees)withoutyourpriorwrittenagreement (2)thematerialdiminutionofyourauthority,dutiesorresponsibilitiesasanemployeeoftheCompanywithoutyourprior writtenagreementor(3)therelocationofyourpositionwiththeCompanytoalocationthatisgreaterthan50milesfrom Sunnyvale,Californiaandthatisalsofurtherfromyourprincipalplaceofresidence,withoutyourpriorwrittenagreement, providedthatinalleventstheterminationofyourservicewiththeCompanyshallnotbetreatedasaterminationforGood Reasonunlesssuchterminationoccursnotmorethansix(6)monthsfollowingtheinitialexistenceoftheoccurrenceof theeventorconditionclaimedtoconstituteGoodReason. 4

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the12month,18month,30month,42monthand54monthanniversariesoftheNextGrantDate.TheRSUsgrantedunder theRetentionEquityAwardwillprovideforautomaticuseofaportionoftheRetentionEquityAwardtocoverminimumtax withholdingsothatyouwillnotneedtomakeanycashpaymentstocoversuchtaxwithholding. SubsequentLongTermEquityGrants.Commencingin2013,duringyouremploymentwiththeCompany,youwillbe eligibletobegrantedannualequityawardsundertheStockPlan(AnnualGrants).Theactualgrantdatevalueofallsuch AnnualGrantsmadeduringyouremploymentwithYahoo!shallbedeterminedinthediscretionoftheCompensation CommitteeaftertakingintoaccounttheCompanysandyourperformanceandotherrelevantfactors.Whileanygrantandthe sizeofitareinthediscretionoftheCompensationCommittee,itiscontemplatedthattheannuallongtermequitygrantsin 2013andsubsequentyearswillbeinthesameamountorgreaterthanthe2012AnnualGrant(i.e.,$12,000,000),subjectto theBoardsevaluationofyourperformanceandthencurrentmarketcompensatorylevelsandpractices.Itisfurther contemplatedthatthetermsandconditionsofyour2013andfutureAnnualGrants(including,withoutlimitation,theformof award(s),vestingschedule,performanceobjectives,restrictiveprovisions,etc.)grantedtoyoushallbethesameassuchterms andconditionsapplicabletotheannuallongtermincentiveawardsgrantedtootherseniorexecutiveofficersoftheCompany atthetimeofsuchgrants.AllofsuchAnnualGrantsshallbesubjecttoanyapplicabletaxwithholdingordeductions. GeneralTerms.Subjecttoanyspecificprovisionsherein,allgrantswillbeonsuchtermsandconditionsasdeterminedby theCompensationCommittee.AllgrantshereundershallbemadepursuanttotheStockPlanandshallbesubjecttotheterms andconditionsoftheStockPlan,including,withoutlimitation,Section8thereof(whichprovidesthatthenumberofshares underlyinganoptionawardgrantedtoanyonepersonduringacalendaryearshallnotexceed15,000,000). 5

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StockOwnership.YourecognizethatyouaresubjecttotheYahoo!requirementsforstockownershipbyofficers. Benefits.Yahoo!providesaverycompetitivebenefitspackageforitseligiblefullandparttimeemployees.EligibleYahoos mayparticipateinYahoo!shealthinsurancebenefits(medical,dentalandvision),lifeinsurance,shorttermandlongterm disability,theEmployeeStockPurchasePlan,401(k)Plan,andYahoo!sFlexibleSpendingPlan(HealthcareReimbursement Accountand/orDependentCareReimbursementAccount).Pleaserefertobenefitplandocumentsforeligibility.Ofcourse, Yahoo!maychangeitsbenefitsatanytime. TheCompanywillreimburseyouforreasonablelegalfeesincurredinconnectionwithnegotiatingandreviewingthisletter uptoamaximumoftwentyfivethousanddollars($25,000)(basedonyourattorneysnormalchargesanduponproviding Yahoo!withdocumentationofthecharges).Thiswillbeataxablebenefittoyou.Additionally,theCompanywillreimburse youforupto$50,000ofsecurityexpensesperyearintheeventthatsituationsarisewhereyou,inyourgoodfaithestimation, determinethatsuchsecuritymeasuresarerequiredorprudent,uponpresentationofappropriatedocumentationof expendituresinaccordancewiththeCompanysexpensereimbursementpolicies. Youwillbeexpectedtotravelinconnectionwithyouremployment.Yahoo!willreimburseyouforreasonablebusiness expensesincurredinconnectionwithyouremployment,uponpresentationofappropriatedocumentationinaccordancewith theCompanysexpensereimbursementpoliciesandyouwillbeeligibletoparticipateinthetravelpolicyestablishedbythe Companygenerallyforitsseniormanagement. Clawbacks.AllbonusesandequitygrantsaresubjecttoYahoo!clawbackpoliciesasineffectfromtimetotime,including anyestablishedundertheDoddFrankWallStreetReformandConsumerProtectionAct. 6

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PaidTimeOff.Youwillaccruevacationatarateoftwenty(20)days(uptothemaximumvacationaccrualcapforothers accruingatthatsamerateasspecifiedintheVacationPolicy)forthefirstfour(4)yearsofyouremploymentatYahoo!. Thereafter,youwillaccruevacationattheregularYahoo!vacationaccrualrate(uptoamaximumasspecifiedinourVacation Policy).Vacationisaccruedbasedonhoursworked,thereforeYahooswhoworklessthan40hoursperweekaccruevacation onaproratabasis.Inaddition,Yahoo!currentlyprovideseligibleemployeeswithdesignatedcompanypaidholidayseach year. ProprietaryAgreementandNoConflictwithPriorAgreements.AsanemployeeofYahoo!,itislikelythatyouwill becomeknowledgeableaboutconfidentialand/orproprietaryinformationrelatedtotheoperations,productsandservicesof Yahoo!anditsclients.Similarly,youmayhaveconfidentialorproprietaryinformationfromprioremployersthatshouldnot beusedordisclosedtoanyoneatYahoo!.Therefore,youwillberequiredtoread,completeandsignYahoo!sstandard EmployeeConfidentialityandAssignmentofInventionsAgreement(ProprietaryAgreement)andtheProprietary InformationObligationsChecklistandreturnittoYahoo!onorpriortoyourEmploymentStartDate.Inaddition,Yahoo! requeststhatyoucomplywithanyexistingand/orcontinuingcontractualobligationsthatyoumayhavewithyourformer employers.Bysigningthisofferletter,yourepresentthatyouremploymentwithYahoo!shallnotbreachanyagreementyou havewithanythirdparty. Obligations.Duringyouremployment,youshalldevoteyourfullbusinesseffortsandtimetoYahoo!.Thisobligation, however,shallnotprecludeyoufromengaginginappropriatecivic,charitableorreligiousactivitiesor,withtheconsentof theBoard,fromservingontheboardsofdirectorsofcompaniesthatarenotcompetitorstoYahoo!,aslongastheactivitiesdo notmateriallyinterfereorconflictwithyourresponsibilitiestooryourabilitytoperformyourdutiesofemploymentat Yahoo!.Nevertheless,yourcurrentstatusasamemberoftheBoardofDirectorsofWalMart,Inc.isexpresslypermittedby thisAgreementsolongasitdoesnotcreatecompetitiveorfiduciaryconflicts.Anyoutsideactivitiesmustbeincompliance withandapprovedifrequiredbyYahoo!sCodeofEthicsorCorporateGovernanceGuidelines. 7

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Noncompetition.InadditiontotheobligationsspecifiedintheProprietaryAgreement,youagreethat,duringyour employmentwithYahoo!youwillnotengagein,orhaveanydirectorindirectinterestinanyperson,firm,corporationor business(whetherasanemployee,officer,director,agent,securityholder,creditor,consultant,partnerorotherwise)thatis competitivewiththebusinessofYahoo!,including,withoutlimitation,anythencurrentactivitiesrelatingtoproviding Internetnavigationalproductsorservicesandanythencurrentactivitiesprovidingsearch,email,chat,ecommerce,instant messaging,content(e.g.,music,video),ISP(e.g.,connectivity,bandwidthorstorage)orotherInternetbaseddeliveryor functionality.Notwithstandingtheprecedingsentence,youmayownnotmorethan1%ofthesecuritiesofanycompany whosesecuritiesarepubliclytraded. EmploymentAtWill.Pleaseunderstandthatthisletterdoesnotconstituteacontractofemploymentforanyspecificperiod oftime,butwillcreateanemploymentatwillrelationshipthatmaybeterminatedatanytimebyyouorYahoo!,withor withoutcauseandwithorwithoutadvancenotice.Theatwillnatureoftheemploymentrelationshipmaynotbemodifiedor amendedexceptbywrittenagreementsignedbyYahoo!sChiefHumanResourcesOfficerandyou.Notwithstandingthe foregoing,ifyouremploymentisterminatedbyYahoo!withoutCauseoryouresignforGoodReason,then,inadditionto anyspecificterminationbenefitssetforthhereinwithregardtotheequitygrants(otherthantotheextentduplicative), Yahoo!willofferyouseverancebenefitspursuanttoitsnormalpracticeatthetimeofyourterminationandsimilartowhatis offeredtootherseniorexecutives.CauseandGoodReasonwillbeasdefinedherein.Allseverancebenefitsareconditioned onyousigningafullreleaseofanyandallclaimsagainstYahoo!inareleaseformacceptabletoYahoo!(withintheperiod specifiedinitbytheCompany)aftertheterminationofyouremploymentandyournotrevokingsuchreleasepursuanttoany 8

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revocationrightsaffordedbyapplicablelaw.Uponaterminationofyouremployment,youherebyresignasofthedateof suchterminationasadirectorandofficerofYahoo!anditsaffiliatesandsubsidiariesandasafiduciaryofanyofitsortheir benefitplans,andyouagreetopromptlyexecuteanddeliveruponsuchterminationanydocumentreasonablyrequiredby Yahoo!toevidencetheforegoing. CodeofEthicsandYahoo!Policies.Yahoo!iscommittedtocreatingapositiveworkenvironmentandconductingbusiness ethically.AsanemployeeofYahoo!,youwillbeexpectedtoabidebytheCompanyspoliciesandproceduresincluding,but notlimitedto,Yahoo!sGuide2Working@Y!,Yahoo!sCodeofEthicsandYahoo!sCorporateGovernanceGuidelines. Yahoo!requeststhatyoureview,signandbringwithyouonyourEmploymentStartDate,theenclosedCodeofEthics AcknowledgmentForm. NonDisparagement.Youagree,otherthanwithregardtoemployeesinthegoodfaithperformanceofyourdutieswiththe CompanywhileemployedbytheCompany,bothduringandforfive(5)yearsafteryouremploymentwiththeCompany terminates,nottoknowinglydisparagetheCompanyoritsofficers,directors,employeesoragentsinanymannerlikelytobe harmfultoitorthemoritsortheirbusiness,businessreputationorpersonalreputation.TheCompanywillinstructits Chairman,theChiefYahoosandthenamedexecutiveofficersoftheCompany,otherthaninthegoodfaithperformanceof theirdutiestotheCompanyorinconnectionwiththeirfiduciarydutiestotheCompanyandapplicablelaw,bothduringand forfive(5)yearsafteryouremploymentwiththeCompanyterminates,nottoknowinglydisparageyouinanymannerlikely tobeharmfultoyouoryourbusinessreputationorpersonalreputation.Thisparagraphshallnotbeviolatedbystatements fromeitherpartywhicharetruthful,completeandmadeingoodfaithinrequiredresponsetolegalprocessorgovernmental inquiry.Youalsoagreethatanybreachofthisnondisparagementprovisionbyyoushallbedeemedamaterialbreachofthis offerletter. 9

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EntireAgreement.Thisofferletterandthereferenceddocumentsandagreementsconstitutetheentireagreementbetween youandYahoo!withrespecttothesubjectmatterhereofandsupersedeanyandallpriororcontemporaneousoralorwritten representations,understandings,agreementsorcommunicationsbetweenyouandYahoo!concerningthosesubjectmatters. EligibilitytoWorkintheUnitedStates.InorderforYahoo!tocomplywithUnitedStateslaw,weaskthatonyour EmploymentStartDateyoubringtoYahoo!appropriatedocumentationtoverifyyourauthorizationtoworkintheUnited States.Yahoo!maynotemployanyonewhocannotprovidedocumentationshowingthattheyarelegallyauthorizedtowork intheUnitedStates. IRC409A.ThisletteragreementisintendedtocomplywiththeshorttermdeferralruleunderTreasuryRegulation Section1.409A1(b)(4)andbeexemptfromSection409AoftheCode,andshallbeconstruedandinterpretedinaccordance withsuchintent,providedthat,ifanyseveranceprovidedatanytimehereunderinvolvesnonqualifieddeferred compensationwithinthemeaningofSection409AoftheCode,itisintendedtocomplywiththeapplicableruleswithregard theretoandshallbeinterpretedaccordingly.Aterminationofemploymentshallnotbedeemedtohaveoccurredforpurposes ofanyprovisionofthisletteragreementprovidingforthepaymentofanyamountsorbenefitsuponorfollowinga terminationofemploymentthatareconsiderednonqualifieddeferredcompensationunderSection409AoftheCodeunless suchterminationisalsoaseparationfromservicewithinthemeaningofSection409AoftheCodeand,forpurposesofany suchprovisionofthisletteragreement,referencestoatermination,terminationofemploymentorliketermsshallmean separationfromservice.Ifyouaredeemedonthedateofterminationtobeaspecifiedemployeewithinthemeaningof thattermunderSection409A(a)(2)(B)oftheCode,thenwithregardtoanypaymentthatisconsiderednonqualifieddeferred compensationunderSection409AoftheCodepayableonaccountofaseparationfromservice,suchpaymentorbenefit shallbemadeorprovidedatthedatewhichis 10

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theearlierof(A)thedatethatisimmediatelyfollowingtheexpirationofthesix(6)monthperiodmeasuredfromthedateof suchseparationfromserviceofyou,and(B)thedateofyourdeath(theDelayPeriod).UpontheexpirationoftheDelay Period,allpaymentsandbenefitsdelayedpursuanttothisparagraph(whethertheywouldhaveotherwisebeenpayableina singlesumorininstallmentsintheabsenceofsuchdelay)shallbepaidorreimbursedtoyouinalumpsum,andany remainingpaymentsandbenefitsdueunderthisletteragreementshallbepaidorprovidedinaccordancewiththenormal paymentdatesspecifiedforthemherein.Withregardtoanyprovisionhereinthatprovidesforreimbursementofcostsand expensesorinkindbenefits,exceptaspermittedbySection409AoftheCode,(i)therighttoreimbursementorinkind benefitsshallnotbesubjecttoliquidationorexchangeforanotherbenefit,(ii)theamountofexpenseseligiblefor reimbursement,orinkindbenefits,providedduringanytaxableyearshallnotaffecttheexpenseseligibleforreimbursement, orinkindbenefitstobeprovided,inanyothertaxableyear,providedthattheforegoingclause(ii)shallnotbeviolated withoutregardtoexpensesreimbursedunderanyarrangementcoveredbySection105(b)oftheCodesolelybecausesuch expensesaresubjecttoalimitrelatedtotheperiodthearrangementisineffectand(iii)suchpaymentsshallbemadeonor beforethelastdayofyourtaxableyearfollowingthetaxableyearinwhichtheexpenseoccurred.Forpurposesof Section409AoftheCode,yourrighttoreceiveanyinstallmentpaymentspursuanttothisletteragreementshallbetreatedas arighttoreceiveaseriesofseparateanddistinctpayments.Innoeventmayyou,directlyorindirectly,designatethecalendar yearofanypaymenttobemadeundertheletteragreementthatisconsiderednonqualifieddeferredcompensation.Inthe eventthetimeperiodforconsideringanyreleaseanditbecomingeffectiveasaconditionofreceivingseveranceshalloverlap twocalendaryears,noamountofsuchseveranceshallbepaidintheearliercalendaryear. BackgroundCheck.YourepresentthatallinformationprovidedtoYahoo!oritsagentswithregardtoyourbackgroundis trueandcorrect. 11

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WelookforwardtoyoujoiningYahoo!.Pleaseindicateyouracceptanceofthisofferbysigningwhereindicatedbelowand returninganexecutedcopyofthisoffertomeatyourearliestconvenience. Sincerely, /s/AlfredJ.Amoroso AlfredJ.Amoroso ChairmanoftheBoard IacceptthisofferofemploymentwithYahoo!Inc.andagreetothetermsandconditionsoutlinedinthisletter. /s/MarissaA.Mayer MarissaMayer July16,2012 Date July17,2012 PlannedEmploymentStartDate Enclosures Cc:HRfile 12

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