EX-10.17(L)



 Exhibit 10.17(L) 
  





 
 April 14, 2014 

Marissa A. Mayer 
  

	 	Re:	Letter Amendment to Performance Stock Option (Mayer 2012 Annual Grant) (the “Option”) 


Dear Marissa: 
 Reference is made to the
Performance Stock Option Agreement (Mayer 2012 Annual Grant) between you and Yahoo! Inc. (the “Company”) dated November 29, 2012 (the “Original Agreement”). Capitalized terms used in this letter agreement and the attached
exhibit and not otherwise defined herein or therein will have the meanings ascribed to such terms in the Original Agreement. 
 The
Compensation Committee has determined that GAAP revenue and adjusted EBITDA will be the Performance Measures used with respect to the Option beginning with 2014. Accordingly, effective with the Fiscal 2014 Performance Period under the Original
Agreement, Appendix A to the Original Agreement is amended and restated in its entirety to read as set forth on Appendix A to this letter agreement. 

This letter agreement does not modify any other terms of the Original Agreement except as expressly set forth above (including, without
limitation, the vesting provisions of the Original Agreement as applicable to any Performance Period under the Original Agreement prior to the Fiscal 2014 Performance Period). 

If this letter accurately sets forth our agreement with respect to the foregoing matters, please sign the enclosed copy of this letter and
return it to me. 
  

	
	Sincerely,
	 YAHOO! INC.

	
	 /s/ Jacqueline Reses

	
	 Jacqueline Reses

	 Chief Development Officer



 Acknowledged and Agreed: 

			
		
	 By:
	 	 /s/ Marissa A. Mayer

		 	Marissa A. Mayer

 701 First Avenue Sunnyvale CA 94089 

P: 408 349 3300    F: 408 349 3301 







 Appendix A - 2012 Performance Option (Mayer 2012 Annual Grant) 

Vesting of Option 
 Subject to Sections 6 and 7 of
the Agreement, one-third (1/3) of the “Total Number of Shares Granted” as set forth in the Notice of Grant shall be eligible to vest with respect to the Performance Period set forth below based on the Company’s GAAP Revenue and
Adjusted EBITDA (each, a “Performance Measure”) for that Performance Period in accordance with this Appendix A. 
  

			
	 Vesting Date
	  	 Corresponding Performance Period

	January 26, 2015	  	Fiscal 2014

  

	 	•	 	Seventy percent (70%) of the Tranche shall be eligible to vest based on the Company’s GAAP Revenue during the corresponding Performance Period (the “Revenue Tranche”). 


 

	 	•	 	Thirty percent (30%) of the Tranche shall be eligible to vest based on the Company’s Adjusted EBITDA during the corresponding Performance Period (the “Adjusted EBITDA Tranche”). 


 

	 	•	 	For each Performance Measure, the Administrator has established a “Performance Goal” for the Fiscal 2014 Performance Period. 


 

	 	•	 	For the Performance Period, each of the Revenue Tranche and the Adjusted EBITDA Tranche shall vest based on the Company’s actual performance for the Performance Period relative to the applicable Performance Goal,
with the percentage of each such tranche that vests to be determined as follows (with “actual performance” in each case being expressed as a percentage of the applicable Performance Goal): 


 

			
	 Actual Performance
GAAP Revenue
	  	 Vesting 
Percentage

	 80% or less
	  	0%
	 99%
	  	99%
	 100%
	  	100%
	 101%
	  	101%
	 104% or more
	  	114%

  

			
	 Actual Performance:
Adjusted EBITDA
	  	Vesting 
Percentage
	 60% or less
	  	0%
	 98%
	  	98%
	 99%
	  	99%
	 100%
	  	100%
	 101%
	  	101%
	 102%
	  	102%
	 114% or more
	  	133%

  

	 	•	 	If the Company’s actual performance, as to a particular Performance Measure, is between two levels specified in the applicable table above, the vesting percentage related to that Performance Measure that vests
shall be determined by linear interpolation between the vesting percentages for those two levels. 

  

	 	•	 	The overall vesting percentage applicable to the Tranche, as determined above, shall be rounded to the nearest one percent. 


  
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 Notwithstanding any other provision herein, in no event shall the Tranche vest as to more than one hundred
percent (100%) of the shares subject to the Tranche. 
 The Administrator shall, following the end of the Performance Period, determine whether and the
extent to which the applicable Performance Goals have been satisfied and the vesting percentage of the corresponding Tranche. Such determinations by the Administrator shall be final and binding. Any portion of the Tranche that is not vested after
giving effect to the Administrator’s determination for the Performance Period shall terminate upon the date of such determination by the Administrator. 

Definitions and Adjustments 
 For purposes of the
Option, the following definitions will apply: 
 “Adjusted EBITDA” as to a particular period means the Company’s income from operations
before depreciation, amortization and stock-based compensation expense for that period. 
 “Financial Plan” as to a particular period means the
Company’s financial plan for that period reviewed by the Board of Directors and used by the Compensation Committee to set the Revenue and Adjusted EBITDA targets for that period. 

“GAAP” means U.S. generally accepted accounting principles.

“GAAP Revenue” as to a particular period means the Company’s worldwide revenue for that period as determined by the Company in accordance with
GAAP and reflected in its reporting of financial results. 
 “Tranche” means the one-third (1/3) of the “Total Number of Shares
Granted” as set forth in the Notice of Grant that is eligible to vest with respect to the Performance Period. 
 For purposes of calculating actual
GAAP Revenue and Adjusted EBITDA for a particular period, the GAAP Revenue and Adjusted EBITDA for that period shall be adjusted (without duplication) for the following items to the extent such items were not included in the Financial Plan: 

 

	 	(a)	increased or decreased to eliminate the financial statement impact of acquisitions with a GAAP purchase price of $500 million or more and costs associated with such acquisitions; 


 

	 	(b)	increased or decreased to eliminate the financial statement impact of divestitures with a GAAP sale price of $500 million or more and costs associated with such divestitures; 


 

	 	(c)	increased or decreased to eliminate the financial statement impact of any new changes in accounting standards announced during the year that are required to be applied during the year in accordance with GAAP;


  

	 	(d)	increased or decreased to eliminate the financial statement impact of restructuring charges that are required to be expensed (or reversed) under GAAP; 


 

	 	(e)	increased or decreased to eliminate the financial statement impact of goodwill and intangible asset impairment charges that are required to be recorded under GAAP; and 


 

	 	(f)	increased or decreased to eliminate the financial statement impact of legal settlements that have an impact on revenues or expenses under GAAP. 


  
 A-2