Document:

exv10w19

EXHIBIT 10.19

SERVICES AGREEMENT

     This Services Agreement (this “Agreement”) is made and entered into as of June 12,
2008 (the “Effective Date”), by and between Yahoo! Inc., a Delaware corporation
(“Yahoo! Inc.”), and Google Inc., a Delaware corporation (“Google Inc.”). Yahoo!
Inc. and Google Inc. are each a “Party” and are together referred to as the
“Parties.”

RECITALS

     WHEREAS, Google operates web sites and provides certain monetization services to companies
that publish and provide web sites and other interactive services;

     WHEREAS, Yahoo! operates web sites and applications on its own behalf and on behalf of
third-parties, all on a variety of platforms throughout the world; and

     WHEREAS, Yahoo! desires to obtain the right to utilize Google’s monetization services in
connection with certain web sites and Google desires to make these services available to Yahoo!.

     NOW, THEREFORE, in consideration of the promises, the mutual covenants and agreements herein
contained and other good and valuable consideration, the receipt and sufficiency of which are
expressly acknowledged, the Parties hereto, intending to be legally bound, agree as follows:

AGREEMENT

1. DEFINITIONS

     1.1 “Ad Attributes” are those attributes of an AFS Ad that [*]. Unless
otherwise agreed to by Google, these attributes are [*].

     1.2 [*].

     1.3 [*].

     1.4 [*].

     1.5 “Additional Reporting Tools” has the meaning given in Section 6.4.1 (Reporting
Received by Yahoo!).

     1.6 [*].

     1.7 [*].

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

 

     1.8 “Ads” or “Advertising Results” means advertisements, including all of the
content in, or delivered with, such advertisements for display to End Users, provided by Google to
Yahoo! through the Services under this Agreement.

     1.9 “AFC Ads” means the advertisements, including all of the content in, or delivered
with, such advertisements for display to End Users, provided by Google to Yahoo! through the AFC
Service under this Agreement.

     1.10 “AFC Protocol” means the protocol provided by Google to Yahoo! for accessing the
AFC Services, as such protocol may be updated by Google from time to time.

     1.11 “AFC Request” means a request sent to Google by Yahoo! for advertisements from
Google’s AFC Service.

     1.12 “AFC Results Set” means the set of AFC Ads transmitted by Google to Yahoo! in
response to an AFC Request.

     1.13 “AFC Service” means Google’s AdSense for Content service or any successor service
thereto, [*].

     1.14 “Affiliate” means, with respect to a Party, any entity that, at a given time
during the Term, directly or indirectly controls, is controlled by or is under common control with,
such Party, provided that, in no event shall an entity be considered to be an Affiliate of Yahoo!
under this Agreement if the Specified Party identified in Section 1.89(b) is or becomes the
beneficial owner of securities representing more than 15% of the total voting power represented by
that entity’s then outstanding voting securities. For the purposes of this Section 1.14, an entity
will be deemed to “control” another entity when it, directly or indirectly, holds securities of
such entity representing more than 50% of the combined voting power of the entity’s then
outstanding securities entitled to vote generally in the election of directors.

     1.15 “AFS Ads” means the advertisements, including all of the content in, or delivered
with, such advertisements for display to End Users, provided by Google to Yahoo! through the AFS
Service under this Agreement.

     1.16 “AFS Client Application” means a Client Application that accesses the AFS
Services.

     1.17 “AFS Protocol” means the protocol provided by Google to Yahoo! for accessing the
AFS Services, as such protocol may be updated by Google from time to time.

     1.18 “AFS Query” means a query sent to Google by Yahoo! for advertisements from
Google’s AFS Service.

     1.19 “AFS Results Set” means the set of AFS Ads transmitted by Google to Yahoo! in
response to an AFS Query.

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

2

 

     1.20 “AFS Service” means Google’s AdSense for Search service or any successor service
thereto, [*].

     1.21 [*].

     1.22 “Base Revenues” means Gross Revenues from all Yahoo! Properties [*].

     1.23 “Beta Feature” means those features of the Services that are identified by Google
as (a) beta or (b) unsupported in Google’s then-current Documentation.

     1.24 “Brand Features” means the trade names, trademarks, service marks, logos, domain
names, and trade dress of each Party.

     1.25 “Business Day” means Monday through Friday, except for United States federal
holidays.

     1.26 [*].

     1.27 “Channel ID” means a unique alphanumeric code or other designation or identifier
that is provided to Yahoo! by Google to be used by Yahoo! as a Channel ID in accordance with the
Documentation.

     1.28 “CIC Agreement” has the meaning given in Section 13.4.1.

     1.29 “CIC Termination Period” has the meaning given in Section 13.4.1.

     1.30 “Client Application” means any application, plug-in, or other executable code
that runs as a computer program on a user’s computer; examples of Client Applications include those
that provide instant messaging, chat, email, data, file viewing, media playing, file sharing,
games, internet navigation, search and other services. For the avoidance of doubt, “Client
Application” does not include functionality to the extent incorporated into a web site such as
instant messaging, chat, email, media-playing, gaming, search and other functionality so long as
such application typically loads with the rest of the page and only persists while the web page is
open in the user’s browser, excluding elements of the page stored in the browser’s cache.

     1.31 “Client ID” means a unique alphanumeric code or other designation or identifier
that is provided to Yahoo! by Google to be used by Yahoo! as a Client ID in accordance with the
Documentation.

     1.32 [*].

     1.33 “Comparable Ads” means advertisements which are substantially similar to those
provided in connection with the Services.

     1.34 “Confidential Information” has the meaning given in Section 14.1
(Confidentiality).

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

3

 

     1.35 “CPM” means revenue per thousand queries.

     1.36 [*].

     1.37 [*].

     1.38 [*].

     1.39 [*].

     1.40 [*].

     1.41 “Data” has the meaning given in Section 6.1 (Terminology).

     1.42 “Destination Page” means the web page impression that is displayed when an End
User clicks on an Advertising Result.

     1.43 “Disclosing Party” has the meaning given in Section 14.1 (Confidentiality).

     1.44 “Documentation” means all manuals, training materials, guides, specifications,
and other similar materials that are related to the Services and that are made generally available
by Google to Google Partners.

     1.45 “End Users” means individual, human end users who visit or use a Property or AFS
Client Application.

     1.46 [*].

     1.47 “Fraudulent Act” has the meaning given in Section 2.21.1(j).

     1.48 [*].

     1.49 “Google” means Google Inc., together with all Affiliates that Google delegates
its performance to, or exercise its rights through, under this Agreement (for so long as such
entities remain Affiliates of Google).

     1.50 “Google Administration Console” means Google’s online advertising reporting tool
for the Services currently located at http://console.Google.com, or such other URL as may be
updated by Google from time to time.

     1.51 “Google Materials” means the [*].

     1.52 “Google Partner” means a third-party that has entered into an arrangement or
agreement with Google to receive the AFS Services and/or AFC Services (excluding Google’s online,
self-service program).

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

4

 

     1.53 “Google Property” means any web site that is controlled and operated by Google
during the Term.

     1.54 “Google Protocols” means the AFS Protocol and the AFC Protocol.

     1.55 [*].

     1.56 “Governmental Authority” means any government, governmental authority, court,
governmental tribunal, governmental agency, governmental bureau or other governmental regulatory,
administrative or judicial agency, governmental commission or organization, and any subdivision,
branch or department of any of the foregoing.

     1.57 “Gross Revenues” means all revenues that are recognized (in accordance with U.S.
GAAP) by Google from the display of Ads on the Properties during the Term in accordance with the
requirements of this Agreement. For the avoidance of doubt, such revenues include [*]. Google
will recognize all revenues in connection with Ads in the calendar month during which the Ads are
displayed. [*].

     1.58 “Initial Platform” means the World Wide Web, excluding [*].

     1.59 “Intellectual Property Rights” means any and all rights existing from time to
time under patent law, copyright law, moral rights law, trade secret law, trademark law, whether
registered or unregistered, and any and all other similar proprietary rights, as well as any and
all applications, renewals, extensions, divisionals, continuations, restorations and
re-instatements thereof, now or hereafter in force and effect worldwide.

     1.60 “Laws” means any federal, state, provincial, county, municipal or other local
laws, rules, regulations, ordinances or judicial decisions enacted or issued by a court or other
Governmental Authority of any country, state, province, county, city or other municipality.

     1.61 “Link Units” means text provided by Google to Yahoo! through Google’s AFC
Service.

     1.62 [*].

     1.63 [*].

     1.64 [*].

     1.65 [*].

     1.66 [*].

     1.67 [*].

     1.68 “Officer” means, with respect to Yahoo!, an executive officer, corporate officer
or operation officer as described in Yahoo!’s then most recent annual report, and with respect to

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

5

 

Google, a member of its Executive Management Group as described on the Google.com web site or
such other equivalent group if no longer designated on the Google.com web site.

     1.69 [*].

     1.70 “Organic Balance” means that [*].

     1.71 “Organic Threshold” means (a) [*]% (from the first day of the first month
following the Effective Date (“Initial Organic Threshold Date”) through the day prior to the third
anniversary of the Initial Organic Threshold Date), (b) [*]% (from the third anniversary of the
Initial Organic Threshold Date through the day prior to the seventh anniversary of the Initial
Organic Threshold Date), or (c) [*]% (from the eighth anniversary of the Initial Organic Threshold
Date through the end of the Term), of Base Revenues.

     1.72 “Parked Domains” means domains that are (a) under-developed, (b) primarily used
to serve advertisements and (c) commonly referred to as parked domains.

     1.73 [*].

     1.74 [*].

     1.75 [*].

     1.76 “Property” means a Yahoo! Property or a Yahoo! Partner Property.

     1.77 “Prospective Yahoo! Partner Property” means a web site that, as of the Effective
Date, (a) is controlled and owned by a Yahoo! Partner or its Affiliate subject to Section 2.4.4;
(b) is entitled to display Comparable Ads from Yahoo! under an agreement between Yahoo! and the
Yahoo! Partner; and (c) is listed as a Prospective Yahoo! Partner Property in Exhibit C.
Prospective Yahoo! Partner Properties do not include web sites from Yahoo!’s online, self-service
programs (e.g., “YPNO”).

     1.78 “Quality Adjustments” has the meaning given in Section 2.15 (Quality
Adjustments).

     1.79 “Query” means an AFS Query or AFC Request.

     1.80 “Receiving Party” has the meaning given in Section 14.1 (Confidentiality).

     1.81 “Reporting Tools” means the Google Administration Console and the Additional
Reporting Tools.

     1.82 “Results Page” means a web page on which Advertising Results are displayed.

     1.83 “Results Set” means an AFC Results Set or an AFS Results Set.

     1.84 “RPM” means Gross Revenues per 1,000 Queries.

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

6

 

     1.85 “Services” means the AFS Services and the AFC Services provided by or on behalf
of Google to Yahoo! pursuant to this Agreement.

     1.86 [*].

     1.87 “SLA” means the Service Level Agreement attached as Exhibit D.

     1.88 “Slot” means the position of an Ad in an AFS Results Set.

     1.89 “Specified Parties” means (a) News Corporation (it being understood that News
Corporation will be deemed to beneficially own any securities beneficially owned by its direct or
indirect subsidiaries and Affiliates) and its direct or indirect subsidiaries and Affiliates and
Time Warner Inc. (it being understood that Time Warner Inc. will be deemed to beneficially own any
securities beneficially owned by its direct or indirect subsidiaries and Affiliates) and its direct
or indirect subsidiaries and Affiliates and (b) Microsoft Corporation (it being understood that
Microsoft Corporation will be deemed to beneficially own any securities beneficially owned by its
direct or indirect subsidiaries and Affiliates) and its direct or indirect subsidiaries and
Affiliates. If any of the foregoing entities’ (in either clause (a) or clause (b) above)
divisions, business lines or units that, individually, generate annual gross revenues from Internet
advertising or the provision of services on the Internet in excess of $500 million ever
subsequently becomes part of or affiliated with another “person” as a result of such other person
becoming a “beneficial owner” (as such term is defined in Rule 13d-3 under the Securities Exchange
Act of 1934, as amended) directly or indirectly of a majority interest in such division, business
line or unit, then such person and its direct and indirect subsidiaries and Affiliates shall also
be deemed to be a Specified Party for so long as such person beneficially owns directly or
indirectly such controlling interest (it being understood that such person will be deemed to
beneficially own any securities beneficially owned by its direct or indirect subsidiaries and
Affiliates). As used in this definition, person means a natural person, company, partnership or
other legal entity and all persons, if any, acting in concert with such person for purposes of the
beneficial ownership described herein.

     1.90 “Supported Features” means features or functionality of the Services that are not
Beta Features.

     1.91 “Term” has the meaning given in Section 13.1 (Term).

     1.92 “Territory” means the U.S. and Canada.

     1.93 [*].

     1.94 [*].

     1.95 [*].

     1.96 “Valid IP Addresses” means those Internet protocol addresses provided by Yahoo!
and approved by Google prior to implementation of the applicable Services. The list of

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

7

 

Valid IP Addresses may be modified by Yahoo! upon [*] hours notice to Google via the
Google Administration Console.

     1.97 “Yahoo!” means Yahoo! Inc. together with all Affiliates that Yahoo! delegates its
performance to, or exercises its rights through under this Agreement (for so long as such entities
remain Affiliates of Yahoo!).

     1.98 “Yahoo! Acquired Property” means a web site in the Territory acquired by Yahoo!
during the Term and added to this Agreement pursuant to written notice from Yahoo! to Google. [*].
For the avoidance of doubt, rebranding or relaunching a Yahoo! Acquired Property does not make it
a Yahoo! New Property.

     1.99 “Yahoo! New Property” means a web site owned by Yahoo! and developed and launched
by or on behalf of Yahoo! during the Term.

     1.100 “Yahoo! Partner” means a third-party (other than the entities included in
subsection (b) of Section 1.89, unless otherwise agreed to by Google) that has entered into an
agreement with Yahoo! prior to the Effective Date for the provision of Comparable Ads and that is
listed in Exhibit C.

     1.101 “Yahoo! Partner Future Property” means a web site (a) acquired by a Yahoo!
Partner during the Term or (b) developed and launched by or on behalf of such Yahoo! Partner during
the Term.

     1.102 “Yahoo! Partner Property” means any Prospective Yahoo! Partner Property and
Yahoo! Partner Future Property that is approved by Google in writing in accordance with Section 2.4
(Yahoo! Partner Properties) and otherwise complies with the terms of Exhibit B.

     1.103 “Yahoo! Pre-Existing Property” means a web site located at a URL listed in
Exhibit E.

     1.104 “Yahoo! Property” means a Yahoo! Pre-Existing Property, a Yahoo! New Property or
a Yahoo! Acquired Property.

     1.105 “YAP Gross Revenues” means Gross Revenues from Yahoo! Acquired Properties
excluding [*].

2. GOOGLE SERVICES

     2.1 AFS Services.

          2.1.1 Scope of AFS Services. During the Term and subject to the terms and conditions
of this Agreement, Google will provide Yahoo! with AFS Ads through its AFS Service for display on
the Properties on the Initial Platforms in the Territory (regardless of where End Users are
located).

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

8

 

          2.1.2 Implementation of AFS Services. Unless (and then only to the extent) otherwise
agreed to by Google in writing, if Yahoo! implements AFS Services, Yahoo! will implement them in a
manner that: (a) conforms to Google’s brand treatment guidelines for AFS Services in Exhibit
F (provided that (i) upon Google’s prior written consent, Yahoo! may, but will not be required
to, include Google Brand Features in implementing the AFS Services on the Properties; (ii)
[*]; and (iv) to the extent of any conflict between the brand treatment guidelines and this
Agreement, this Agreement will control); and (b) otherwise complies with the technical requirements
for implementation provided by Google from time to time, including those instructions contained in
the Documentation pertaining to the AFS Protocol. Exhibit G contains representative
screenshots depicting the appearance of the AFS Service on a Yahoo! Property. [*].

          2.1.3 AFS Queries. Unless (and then only to the extent) otherwise approved by Google
in writing: (a) AFS Queries sent to Google for processing under the AFS Service may be initiated
only by (i) End Users entering text into search boxes on the Properties and AFS Client Applications
as provided herein, or (ii) [*]; and (b) AFS Queries that are generated on the Properties and AFS
Client Applications and sent by Yahoo! to Google for processing under the AFS Service in accordance
with Google’s technical requirements, will be sent by Yahoo! to Google without editing, truncating,
appending terms to or otherwise modifying the AFS Queries either individually or in the aggregate.
Notwithstanding anything to the contrary in the Agreement, Google will have no obligation to
process AFS Queries that are not sent in compliance with the requirements of this Agreement.

          2.1.4 [*].

     (a) [*].

     (b) Client IDs. Yahoo! must assign a separate Client ID to each category of
[*].

     (c) [*].

          2.1.5 Operation of AFS Services. Yahoo! will ensure that each AFS Query will: (a) be
from a range of Valid IP Addresses approved by Google for the AFS Services; (b) contain a Client ID
for the AFS Services approved by Google; (c) [*]; and (d) request no fewer than [*] AFS Ads. Upon
Google’s receipt of an AFS Query as described above, Google will transmit an AFS Results Set, if
available, via Google’s network interface in accordance with the AFS Protocol. Google will include
in each AFS Results Set, either (x) the number of AFS Ads requested by Yahoo! to the extent
available (which AFS Ads will be related to the AFS Query) or (y) if no such AFS Ads are available,
a response that indicates that no AFS Ads are available.

          2.1.6 Client Applications. Yahoo! may provide Google with a list of AFS Client
Applications within [*] days of the Effective Date. This list may be updated from time to time by
Yahoo! upon written notice to Google. Each AFS Client Application will be allowed to send AFS
Queries to resolve to Results Pages on the Properties, subject to the following requirements: (a)
Yahoo! and each AFS Client Application must comply with Google’s Client

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

9

 

Application Guidelines, the current form of which is attached as Exhibit H (“Application Guidelines”), as updated by Google from time to time; (b) Yahoo! is responsible for
ensuring that each AFS Client Application complies with the Application Guidelines; and (c) Yahoo!
must have the ability to enforce the requirements of the Application Guidelines with respect to
each AFS Client Application. Yahoo! will promptly notify Google in writing when Yahoo! becomes
aware of any breach of a requirement of the Application Guidelines by Yahoo! or a Partner.

          2.1.7 [*].

     (a) [*].

     (1) [*].

     (2) [*].

     (b) [*].

     (c) [*].

     (d) [*].

     (e) [*].

     (f) [*].

     (g) [*].

     2.2 AFC Services.

          2.2.1 Scope of AdSense for Content Services. During the Term and subject to the terms
and conditions of this Agreement, Google will provide Yahoo! with AFC Ads and Link Units through
its AFC Service for the Properties on the Initial Platforms in the Territory (regardless of where
End Users are located). AFC Ads may not appear on search results pages (other than search results
pages on which AFS Ads are not permitted to be served under this Agreement); registration pages
(i.e., pages whose primary purpose is to enable users to provide or review registration
information), “thank you” pages, error pages, e-mail pages or chat pages, or pages without a
substantial purpose other than displaying advertising. Notwithstanding the foregoing prohibition,
the Parties shall discuss in good faith (taking into account privacy concerns) allowing Yahoo! to
implement the AFC Service on Yahoo!’s [*] within a reasonable period of time. AFC Ads also may not
appear on pages that contain the following types of content: pornographic, obscene or excessively
profane content or content intended to advocate or advance computer hacking or cracking, gambling,
activity that violates applicable Laws of the geographic region in which the applicable Property is
located or primarily directed, drug paraphernalia, hate, violence or racial or ethnic intolerance;
provided that Yahoo! will not be in breach of the foregoing prohibition if such content is
news-related or is user-generated (in which event Yahoo! will use commercially reasonable efforts
to remove AFC Ads from such pages or remove such content promptly). Google may update the
preceding list of prohibited types of

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

10

 

content on [*] days prior written notice to Yahoo! from time to time during the Term
pursuant to Section 2.19 (Guidelines and Updates).

          2.2.2 Implementation of AFC Services. Unless (and then only to the extent) otherwise
agreed to by Google in writing, if Yahoo! implements AFC Services, Yahoo! will implement them in a
manner that: (a) conforms to Google’s brand treatment guidelines for AFC Services in Exhibit
I (provided that (i) upon Google’s prior written consent, Yahoo! may, but will not be required
to, include Google Brand Features in implementing the AFC Services on the Properties; (ii) the [*];
and (iii) to the extent of any conflict between the brand treatment guidelines and this Agreement,
this Agreement will control); and (b) otherwise complies with the technical requirements provided
by Google from time to time, including those instructions contained in the Documentation pertaining
to the AFC Protocol. Exhibit J contains representative screenshots depicting the
appearance of the AFC Service on a Yahoo! Property. [*].

          2.2.3 Client-Side Implementation. Yahoo! will ensure that each AFC Request will
contain an AFC Client ID. Upon Google’s receipt of an AFC Request, Google will transmit, via
Google’s network interface and in accordance with the AFC Protocol an AFC Results Set containing
(a) the number of AFC Ads requested by Yahoo! to the extent available (which AFC Ads will be
related to the web page on which such AFC Ad is displayed or related to relevant targeting
criteria), or (b) if no AFC Ads are available, a response that indicates that no such AFC Ads are
available. At Yahoo!’s request, the Parties will discuss in good faith implementing a solution
within a reasonable period of time [*]. Notwithstanding anything to the contrary in the Agreement,
Google will have no obligation to process AFC Requests that are not sent in compliance with the
requirements of this Agreement.

          2.2.4 Link Units. If Yahoo! elects to implement Link Units, Yahoo! understands and
agrees that in no event will End User clicks on Link Units, or the display of a Link Unit on a
Property, in and of itself, qualify as a click on an Ad, or an impression, as the case may be, for
purposes of determining Google’s payment or other obligations under this Agreement (unless Google
generates Gross Revenues in connection therewith). For the avoidance of doubt, Yahoo! is not
obligated to implement Link Units on any Property and may use its own solution so long as such
solution is compliant with Section 2.8 (Queries Generally).

     2.3 [*].

     2.4 Yahoo! Partner Properties.

          2.4.1 Yahoo! must provide Google with the complete list of Prospective Yahoo! Partner
Properties of Yahoo! Partners that meet the definition of a Yahoo! Partner no later than 30 days
after the launch of either of the Services on the first Property under this Agreement other than
for testing purposes and such list may be provided to Google in increments between the Effective
Date and the end of such time period. Google will conduct a review of each Prospective Yahoo!
Partner Property listed in Exhibit C as soon as reasonable but in no event later than [*]
days following the date that each such Prospective Yahoo! Partner Property is added to Exhibit
C. All Prospective Yahoo! Partner Properties that comply with the then-current [*] will be
approved and become Yahoo! Partner Properties. If Google in good faith determines that a
Prospective Yahoo! Partner Property subject to review does not meet the then-current [*],

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

11

 

Google will promptly notify Yahoo! of Google’s determination and the Yahoo! Partner will have
[*] days from Google’s notice to Yahoo! to comply with the then-current [*]; Google shall, if
commercially reasonable, provide information to Yahoo! regarding such non-compliance so that Yahoo!
may assist the Yahoo! Partner to comply with the [*] with respect to such web site. For avoidance
of doubt, the process described in this Section 2.4 shall be the only method by which any web site
may become a Yahoo! Partner Property, unless otherwise agreed by the Parties in writing.

          2.4.2 After the Effective Date, Yahoo! may notify Google of its request to add a new Yahoo!
Partner Future Property to this Agreement. Within [*] days of Yahoo!’s request, Google will notify
Yahoo! whether it has approved Yahoo!’s request to add the Yahoo! Partner Future Property to this
Agreement.

          2.4.3 For a minimum of [*] months following the rejection by Google of any Prospective Yahoo!
Partner Property or Yahoo! Partner Future Property pursuant to Section 2.4.1 or 2.4.2, [*]. If,
during the [*]-month period described in this Section, Google becomes aware that [*].

          2.4.4 If a web site listed in Exhibit C is, as of the Effective Date, subject to an
agreement between Yahoo! and a Yahoo! Partner for the provision of Comparable Ads, but is not more
than [*]% owned by the Yahoo! Partner or an Affiliate of such Yahoo! Partner, Yahoo! may display
Advertising Results on such web site if, prior to such display but in no event later than [*] days
after the inclusion of such web site in Exhibit C, [*].

     2.5 Client IDs and Channel IDs. Google will provide Yahoo! with the number of Client
IDs and Channel IDs as reasonably requested by [*]. The Parties will [*] Yahoo!’s implementation
of Client IDs and Channel IDs, taking into account [*]. At a minimum, Google will provide at least
[*] Client ID for each [*] and [*] Client ID for each [*], unless [*].

     2.6 Yahoo! Ad Delivery Platforms. Google acknowledges that Yahoo! may utilize
Yahoo!’s ad delivery platforms, including Yahoo!’s Right Media Exchange or any successor thereto,
to transmit Queries and receive Results Sets so long as the use is in compliance with the terms of
the Agreement.

     2.7 Launch of Services. At least [*] days prior to the initial launch of the
Services, Yahoo! will provide Google with the projected launch date for each Property that will
initially access the Services together with an aggregate estimated ramp up of Query volumes and the
expected region or regions from which the Queries will be sent. For subsequent Properties, Yahoo!
will provide Google with [*] days prior written notice of its intent to launch the Services on each
Property together with an aggregate estimated potential ramp up of Query volumes and the expected
region or regions from which the Queries will be sent. If Google reasonably believes that it will
have insufficient capacity and/or resources to meet Yahoo!’s projected Query volumes and/or launch
schedule, the Parties will agree, acting reasonably, upon revised launch dates, which launch dates
will be as soon as commercially reasonable. Yahoo! will not launch a Service on any Property until
Google’s technical personnel provide written approval of Yahoo!’s implementation of the Service on
that Property, which shall not be unreasonably withheld or delayed.

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

12

 

     2.8 Queries Generally. Notwithstanding anything to the contrary contained in the
Agreement, Yahoo! may choose to send Queries to Google in its sole discretion. Yahoo! is not
obligated to send any Query from any Property, nor is Yahoo! obligated to send any minimum number
of Queries. The Parties acknowledge and agree that Yahoo! may elect, in connection with any AFC
Request, to (a) provide Google with [*] or (b) utilize [*]. For the avoidance of doubt,
Google may, and the foregoing will in no event limit Google’s ability to, change or require changes
to the [*] described in (a) and (b) above so long as Google does not [*].

     2.9 Display of Advertising Results. Yahoo! must display in each instance, the entire
Results Set requested by Yahoo! and delivered by Google that corresponds to the Query on the
applicable Property in the manner contemplated by this Agreement, without editing, filtering
(except as expressly permitted in Section 2.11 (Filters and Blocking)), reordering, adding content
to, truncating or modifying the content (but not the format, except in the case of pre-formatted
display Ads or iFrames) of the Advertising Results. Google will provide all content in the Ad for
display to End Users that it [*]. Subject to the terms of the Agreement, Yahoo! may implement the
Services on the Properties in its sole discretion, including with respect to the placement and
location of Ads, the number of Ads requested and the formatting of Ads (e.g., font size,
headings and other formatting variables).

     2.10 Labeling, Branding and Attribution. Yahoo! must unambiguously mark each Ad, or
each cluster or grouping of Ads, as “Sponsor(ed) Link(s),” “Sponsor(ed) Result(s),” “Sponsor(ed)
Site(s),” “Advertiser(s),” “Advertiser Link(s),” “Advertisement(s),” or similar designations in
native languages other than English, unless mutually agreed by Yahoo! and Google, which shall not
be unreasonably withheld or delayed. In any event, the AFS Ads must be labeled in a manner as to
sufficiently distinguish them from other non-monetized search results.

     2.11 Filters and Blocking.

          2.11.1 Filtering. Google will notify Yahoo! of [*]. Yahoo! may implement the
filtering capabilities on any Property upon written notice to Google (which may be given by email)
and Google will use commercially reasonable efforts to implement the filters in accordance with
their specifications. Yahoo! may implement filtering [*]. Yahoo! may change the level of
filtering selected upon notice to Google (which may be given by email) and Google will use
commercially reasonable efforts to adjust the filtering in accordance with and as soon as
practicable following Yahoo!’s request. Notwithstanding anything to the contrary, if Yahoo! elects
to enable any filter(s), Yahoo! expressly acknowledges and agrees that (a) it is Yahoo!’s
responsibility to enable the filter(s) in accordance with any instructions provided by Google, and
(b) Google does not represent, warrant or covenant that all results will be limited to results
elected by enabling the filter(s). For example, but without limiting the foregoing, if Yahoo!
elects to enable AdSafe, Google does not represent, warrant or covenant that all objectionable
advertisements will be prevented. [*].

          2.11.2 Blocking of URLs and Keywords. Google will use commercially reasonable efforts
to exclude from Ads served under this Agreement (by Client ID): (a) Ads that contain the display
URLs in Exhibit K and (b) Ads that contain keywords in Exhibit L. Yahoo! may
update Exhibit K and Exhibit L, no more than once every [*] days, unless Yahoo!
notifies Google of [*] circumstances ([*]), in which case Google will [*] update Exhibit K
and Exhibit L.

 

			
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omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

13

 

Google will implement the update within [*] Business Days of Google’s receipt of
Yahoo!’s request. The number of URLs in Exhibit K and number of keywords in Exhibit
L will be subject to Google’s technical and/or architectural limitations as applied to [*].
Notwithstanding anything to the contrary, Yahoo! acknowledges and agrees that Google does not
represent, warrant or covenant that no Ads will contain any of the URLs in Exhibit K or the
keywords in Exhibit L. [*].

          2.11.3 Remedies; Removal and [*]. Without limiting Yahoo!’s other rights and
remedies, [*]; (b) Yahoo! receives one or more regulatory inquiries with respect to an Ad or
otherwise reasonably determines that an Ad could expose Yahoo! or a Yahoo! Partner to a risk of
liability or subject to injunctive relief; or (c) an Ad violates Yahoo!’s advertising policies
attached hereto as Exhibit M, as such policies may be updated from time to time as applied
generally to Yahoo!’s partners; [*]. In the case of (c) above, if Yahoo! does [*] an Ad based on
an updated policy, Yahoo! will use commercially reasonable efforts to notify Google of such updated
policy and the Parties will update Exhibit M to reflect such updates. [*].

          2.11.4 Notice of Violations. If Yahoo! receives notice which alleges that the
Advertising Results delivered hereunder, (a) violate any applicable Laws, and/or (b) infringe the
copyrights, trademarks, service marks, trade dress or any other proprietary right of any
third-party, Yahoo! will notify Google of such allegation and Google will handle the notification
in accordance with Google’s then current policies and/or procedures.

     2.12 [*].

     2.13 [*].

     2.14 [*].

          2.14.1 [*].

          2.14.2 [*].

     2.15 Quality Adjustments. If Google employs quality-based price reductions or “smart
pricing” (“Quality Adjustments”) with respect to the Properties it will (a) use
commercially reasonable efforts to cooperate with Yahoo! as Yahoo! takes action to address the
underlying reasons for such Quality Adjustments and (b) [*].

     2.16 [*].

     2.17 New Features and Functionality.

          2.17.1 New Features. Any new Supported Features relating to monetization or user
experience, will be [*].

          2.17.2 Beta Features. Certain Services may include Beta Features. Within [*] days of
the Effective Date, Google will use commercially reasonable efforts to [*]. As of the Effective
Date, [*] “Google AFS XML Protocol Reference Revised: May 7, 2008”, the “AFC

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

14

 

JavaScript Protocol Reference dated February 29, 2008”, the “AdSense for Content HTML Protocol
Reference dated February 1, 2008”, “AdSense Addendum — Blocking Competitors’ Ads dated April 11,
2008”, the “AdSense for Search Protocol Addendum: Overriding Default Targeting with Geography dated
April 11, 2008”, the “AdSense for Search Protocol Reference dated April 11, 2008”, the “AdSense for
Search: Adsafe Overview dated revised April 10, 2006” or the “WebSearch Ad Promotion Addendum dated
April 11, 2008” [*]. Yahoo! understands and agrees that (a) Beta Features are provided “as is” and
will not subject Yahoo! to any further obligations and (b) any use of Beta Features will be
undertaken solely at Yahoo!’s own risk. Except as provided in [*], Google reserves the
right, in its sole discretion, to include or cease providing Beta Features as part of any Services
at any time. [*].

     2.18 Non-Exclusive Relationship. This Agreement does not prevent Yahoo! from (a)
implementing on the Properties or any portion thereof (including on Results Pages) any other
advertising, promotion or marketing service or monetization method, including any that are the same
as or substantially similar in nature to the Services or (b) displaying Comparable Ads. The
foregoing sentence does not relieve Yahoo! from complying with the obligations of this Agreement
with respect to the manner in which the Ads are displayed.

     2.19 Guidelines and Updates. Except to the extent necessary to address the
requirements of this Agreement, the applicable Google brand treatment guidelines, policies,
technical requirements and Documentation will be [*]. To the extent Yahoo! is not in compliance
with Google’s brand treatment guidelines, policies, technical requirements or Documentation, and
without limiting Google’s other rights and remedies under this Agreement, Google will inform Yahoo!
after Google becomes aware of the non-compliance [*]. Google may update its brand treatment
guidelines, policies, technical requirements and Documentation [*].

     2.20 Test Queries. Google may send a reasonable number of uncompensated (with respect
to both Yahoo! and Google) test queries to the Properties at any time as needed to verify Yahoo!’s
compliance with the requirements of this Agreement. For avoidance of doubt, (a) Google and Yahoo!
will work together to ensure that the test queries will not have a material impact on Yahoo!’s
infrastructure and (b) the test queries will not be included in reporting sent to Yahoo!. Yahoo!
will use commercially reasonable efforts to provide Google in a reasonable amount of time the means
to ensure that AFS test queries generate AFS Queries, such that, for AFS Queries, failure of AFS
test queries will be substantially indicative of failures experienced by End Users.

     2.21 Additional Yahoo! Obligations.

          2.21.1 Prohibited Actions. Unless otherwise approved by Google in writing and
provided that the standard of care Yahoo! uses to monitor the Services is the same standard of care
Yahoo! uses to monitor the Yahoo! Properties, Yahoo! shall not, and Yahoo! shall not authorize,
knowingly allow or knowingly permit any third-party to:

          (a) except as expressly permitted in Section 2.11 (Filtering and Blocking) and [*],
edit, modify, truncate, filter or change the order of the information contained in any
Advertising Results (either individually or collectively), including, without limitation,
by way of interspersing non-Google advertising within any Results

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

15

 

Set on a Results Page ([*], with no non-Google advertising interspersed among
the Ads [*]);

          (b) frame any Destination Page;

          (c) redirect an End User away from the Destination Page, provide a version of the
Destination Page different from the page an End User would access by going directly to the
Destination Page, intersperse any content between an Advertising Result and the
corresponding Destination Page or implement any click tracking or other monitoring of
Advertising Results, except as otherwise explicitly permitted in Section 2.21.4 (Permitted
Click Tracking);

          (d) display any Advertising Results in pop-up, pop-under, exit windows, expanding
buttons, or animation [*], except as mutually agreed;

          (e) minimize, remove or otherwise inhibit the full and complete display of any Results
Page, including any Advertising Results (other than as a result of normal web page
rendering, [*], or End User interactions with the Results Page (which may include End Users
moving, hiding and unhiding the Ads using animation)); [*];

          (f) directly or indirectly access, launch or activate the Services through or from, or
otherwise incorporate the Services in, any software application, web site or other means
other than the Properties or AFS Client Applications, and then only to the extent expressly
permitted herein;

          (g) except to the extent expressly permitted herein, transfer, sell, lease, syndicate,
sub-syndicate, lend, or use for co-branding, timesharing, service bureau or other
unauthorized purposes any Services or access thereto (including, but not limited to
Advertising Results, or any part, copy or derivative thereof);

          (h) enter into any arrangement or agreement under which any third-party pays Yahoo!
fees, Yahoo! pays any third-party fees, or either shares in any revenue payments or
royalties for any Advertising Results [*], (ii) to the extent expressly permitted in
Section 2.4 (Yahoo! Partner Properties), [*];

          (i) directly or indirectly generate Queries, or impressions of or clicks on
Advertising Results, through any automated, deceptive, fraudulent or other invalid means
(including, but not limited to, click spam, robots, macro programs, and Internet agents);

          (j) encourage or require End Users or any other persons, either with or without their
knowledge, to click on Advertising Results through offering incentives or any other methods
that are manipulative, deceptive, malicious or fraudulent (each of the foregoing in
subsections (i) and (j), a “Fraudulent Act”);

          (k) implement Ads on Parked Domains or access the AFS Service or AFC Service on or
from the Parked Domains;

 

			
	[*]	 	Indicates that certain information in this exhibit has been
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          (l) remove, deface, obscure, or alter Google’s copyright notice, trademarks or other
proprietary rights notices affixed to or provided as a part of any Services, the AFS
Protocol, the AFC Protocol none of which will be displayed to End Users as part of the
Services or in any Ad Results, other than Ad Results for Google’s own products and services
that are not otherwise blocked or filtered as requested by Yahoo!, or any other Google
technology (including software) materials and Documentation, provided that if Google
transmits any such trademark or proprietary rights notice with the Ad Result when Yahoo!
has not agreed to include such trademark or proprietary rights notice, then Yahoo! may
remove such trademark or proprietary rights notice unless the trademark is directly related
to the content in the Ad Result; and

          (m) in any non-transitory manner, store or cache Advertising Results or any part, copy
or derivative thereof; [*].

          2.21.2 Content Restrictions. No Property or AFS Client Application shall be comprised
substantially of (a) pornographic, hate-related or violent content, or (b) other content that
violates or encourages conduct that would violate (i) any applicable criminal Laws, (ii) any other
applicable Laws, or (iii) any third-party rights in the geographic region in which such Property is
located or primarily directed.

          2.21.3 Unauthorized Use. Yahoo! shall use commercially reasonable efforts to ensure
that there is no use of or access to any Services through Properties that is not in compliance with
the terms of the Agreement or not otherwise approved by Google, and Yahoo! shall monitor and
disable any such access or use by unauthorized parties (including, but not limited to, spammers or
any third-party web sites) using the same standard of care Yahoo! uses to monitor the Yahoo!
Properties.

          2.21.4 Permitted Click Tracking. Yahoo! acknowledges and agrees that it is fully
responsible for the implementation and operation of any click tracking or other monitoring of
clicks that it may introduce in accordance with this Section 2.21.4 and that Google is not
responsible for any breaches of any agreement or any problems with the implementation of any
Services on any Property which may arise from the introduction by Yahoo! of such click tracking or
other monitoring. Yahoo! may implement click tracking or other monitoring of End User clicks on
Advertising Results provided that:

          (a) if Yahoo! wishes to implement or modify click tracking or other click monitoring
that Yahoo! reasonably expects could impact the implementation or operation of the
Services, Yahoo! will give Google at least [*] days prior written notice of the click
tracking or other click monitoring and will work in good faith with Google to ensure there
is no impact on the implementation or operation of the Services; and

          (b) if Google notifies Yahoo! of any perceived problems arising from the
implementation of click tracking or other click monitoring, including but not limited to,
increased or unusual levels of Invalid Clicks and Queries or non-qualifying Advertising
Results (as described in Section 4.5.1 (Non-Qualifying Ads)), Yahoo! and Google will work
together in good faith to try to resolve such problems as quickly as reasonably possible.
If such problems are not resolved within a reasonable period of

 

			
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omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

17

 

time, Google may suspend all or part of the Services, as an interim solution solely to
the extent necessary to avoid such problems, until the problems are resolved to Google’s
reasonable satisfaction.

          2.21.5 Site Modifications. Google acknowledges that Yahoo! may update the design,
features, functionality, operation and content of the Yahoo! Properties (and the Yahoo! Partners
may update the design, features, functionality, operation and content of Yahoo! Partner
Properties); including without limitation, any Results Page; provided that Yahoo! agrees that no
changes may be made to Ads or the Properties that are not in accordance with this Agreement.

          2.21.6 Notice of System Changes. Without limiting Yahoo!’s rights to request or not
request Google Advertising Results in accordance with this Agreement, Yahoo! will use commercially
reasonable efforts to provide Google with at least [*] days advance written notice of any
change in the code or serving technology used to display Google Advertising Results (e.g.,
a change in the advertising serving technology used) that could reasonably be expected to have a
material, adverse affect on the delivery or display of Advertising Results that would make such
delivery or display inconsistent with the Agreement. Senior Technical Representatives from Yahoo!
and Google will meet regularly to discuss in good faith technical issues regarding implementation
and operation of the Services on Yahoo! Properties and Yahoo! Partner Properties and related
issues, including but not limited to, issues affecting Google’s ability to accurately monitor
Service Levels with respect to the Service implementations on the Yahoo! Properties.

     2.22 Yahoo! Partner Properties. Yahoo! shall have the right to distribute AFS Ads and
AFC Ads to Yahoo! Partner Properties solely in compliance with the terms and conditions contained
in Exhibit B.

     2.23 Yahoo! Properties. Yahoo! must control the Yahoo! Properties where “control” for
purposes of this Section 2.23 means that Yahoo! [*]. If Yahoo! no longer controls a Yahoo!
Property, Yahoo! shall provide prompt written notice to Google so that Google may cease providing
Services to the former Yahoo! Property. Subject to [*].

     2.24 [*].

3. OTHER BUSINESS OPPORTUNITIES

     3.1 [*].

     3.2 [*].

     3.3 [*]:

          3.3.1 [*];

          3.3.2 [*];

 

			
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          3.3.3 [*]

          3.3.4 [*].

     3.4 IM Interoperability. The Parties agree to the additional business terms set forth
in this Section 3.4. Following the Effective Date, the Parties may determine to enter into further
negotiations to supplement or amend the terms of this Section 3.4 to include additional related
terms appropriate to the nature of the commercial relationship described in this Section 3.4, but
the absence of such additional terms or the failure of the Parties to agree on such additional
terms will not affect the binding nature or enforceability of this Section 3.4.

          3.4.1 IM Interoperability. The Parties agree to enable server-to-server
interoperability of their respective instant messaging (“IM”) networks [*] in accordance
with the following provisions:

          (a) [*].

          (b) Federated Features. The Parties will mutually support certain product
features that are currently available in both IM networks, which at a minimum will include
the following [*] the “Core Features” and [*] the “Additional Features”);
provided that [*]:

               (1) [*].

               (2) Add users on the other network as “friends” or “contacts.” “Friends” or
“contacts” are end users that show up on the roster of contacts. Users should be
able to include, at their option, a message in the add user flow.

               (3) See presence information of friends that have been previously added.
Presence information can include online present, online idle, offline, etc.).

               (4) [*].

               (5) Send and receive text instant messages from friends on the other network
if that friend is online (either present or idle).

               (6) [*].

               (7) [*].

               (8) Display network-native emoticons for key combinations that exist on that
network (each Party will rationalize the list of codes and figure out what to do in
fall back/unrecognized scenario).

               (9) [*].

 

			
	[*]	 	Indicates that certain information in this exhibit has been
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               (10) [*].

               (11) [*].

               (12) [*].

               (13) [*].

               (14) [*].

               (15) [*].

               (16) [*].

               (17) [*].

               (18) [*].

          (c) Launch Timing. The Parties agree that the first date of joint public
availability of IM Interoperability (either in beta or general availability) for (i) the
Core Features will be [*], or such earlier date as agreed to in writing by the Parties (the
“IM Core Features Launch Date”), and (ii) the Additional Features will be [*], or
such earlier date as agreed to in writing by the Parties.

          (d) Launch Scope. The IM applications that will be offered by each Party with
IM Interoperability on the IM Core Features Launch Date will include [*] implementations of
the application versions of Yahoo! Messenger for Yahoo! [*] and [*] for Google. Neither
Party may disable IM Interoperability [*] during the Term, unless otherwise permitted
herein or as agreed to by the Parties.

          (e) [*].

          (f) Other Opportunities. The Parties will explore in good faith the
possibility of supporting the following product features: (i) each Party enabling the other
Party’s users to [*] and (ii) [*].

          (g) Territory. Each Party may offer IM Interoperability in their
international versions of IM Interoperability applications, unless the other Party
reasonably requests that a particular international version not be offered with IM
Interoperability by such Party [*].

          (h) Co-Branding. Each Party may include the other Party’s brand features in
its IM Interoperability applications, subject to the other Party’s prior written approval.

          (i) [*].

 

			
	[*]	 	Indicates that certain information in this exhibit has been
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          (j) [*].

          (k) [*].

          (l) No Other Licenses. No license or other right is granted with respect to
IM Interoperability, by either Party to the other, by implication, estoppel or otherwise,
under any Intellectual Property Rights now or hereafter owned or controlled by such Party.

          (m) Security. The Parties will implement a reasonable security plan to limit
or suspend IM Interoperability upon a security vulnerability, [*].

          (n) Legal Compliance. During the Term, each Party will be responsible for
compliance with any applicable regulations and Laws[*] with respect to its IM
Interoperability applications and servers. If either Party determines in good faith that
it is necessary to comply with such applicable regulations and Laws with respect to IM
Interoperability, the Parties shall cooperate in making necessary technical changes and may
disable IM Interoperability for particular applications until compliance is met to the
mutual satisfaction of the Parties.

          (o) Support. Each Party will provide any hardware, servers, monitoring
resources, bandwidth, and operations support and personnel that are reasonably necessary to
maintain the IM Interoperability at an operating level and quality that is substantially
equivalent to the level and quality of its own IM network.

          (p) Non-Disparagement. In communicating with users about IM Interoperability,
neither Party will disparage the other Party or the IM Network of the other Party.

          (q) [*].

          (r) [*].

          (s) [*].

          (t) Costs. [*] each Party will bear its own costs in enabling
interoperability and performing its obligations related thereto.

          (u) [*].

     3.5 [*].

 

			
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4. COMPENSATION

     4.1 AFS Services.

          4.1.1 Yahoo! Properties. Subject to [*], for each calendar month during the
Term, Google will pay Yahoo! the percentage of Gross Revenues from AFS Services on Yahoo!
Properties on the Initial Platforms in the Territory corresponding to the total Gross Revenues from
the Yahoo! Properties in such month from the AFS Service as indicated in Table 1 below. For
purposes of calculating such total Gross Revenues, all amounts will be converted to United States
Dollars, in accordance with Section 4.5.3 (Currency Conversion) below. [*].

Table 1

	 	 	 	 	 	 	 	 	 
	 	 	Total Monthly Gross Revenues	 	Yahoo! Percentage of Total
	 	 	(AFS) from Yahoo! Properties	 	Monthly Gross Revenues
	Tier 1
	 	$[*] to $[*]	 	 	[*]	%
	Tier 2
	 	$[*] to $[*]	 	 	[*]	%
	Tier 3
	 	$[*] to $[*]	 	 	[*]	%
	Tier 4
	 	 	>$[*]	 	 	 	[*]	%

          4.1.2 Yahoo! Partner Properties. For each calendar month during the Term, Google will
pay Yahoo! a percentage of Gross Revenues from AFS Services on the Initial Platforms on the Yahoo!
Partner Properties in the Territory equal to [*]. For purposes of this Agreement, “Yahoo!
Partner Properties Percentage” means [*].

          4.1.3 Retained Revenues for AFS Services. [*].

     4.2 AFC Services.

          4.2.1 Yahoo! Properties. Subject to [*], for each calendar month during the Term,
Google will pay Yahoo! [*]% of Gross Revenues from AFC Services on Yahoo! Properties on the Initial
Platforms in the Territories.

          4.2.2 Yahoo! Partner Properties. For each calendar month during the Term, Google will
pay Yahoo! [*]% of Gross Revenues from AFC Services on Yahoo! Partner Properties on the Initial
Platforms in the Territories.

          4.2.3 Retained Revenues for AFC Services. [*].

     4.3 [*].

 

			
	[*]	 	Indicates that certain information in this exhibit has been
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     4.4 [*].

     4.5 Payment.

          4.5.1 Non-Qualifying Ads. Notwithstanding anything to the contrary contained in the
Agreement, Google shall not be liable for payment to the extent it has not recognized revenue from
advertisers in connection with (a) invalid queries, or invalid impressions of or clicks on Ads,
generated by any person, bot, automated program or similar device, including, without limitation,
through any Fraudulent Act, in each case as reasonably determined by Google (“Invalid Clicks
and Queries”); or (b) impressions of Ads or clicks on Ads delivered through an implementation
which is not approved by Google pursuant to the Agreement or subsequently fails to meet Google’s
implementation requirements and specifications as set forth in the Documentation. [*]. The number
of Queries, and impressions of and clicks on Ads, as tracked by Google, shall be the number used in
calculating payments hereunder. [*].

          4.5.2 Payment.

          (a) Method of Payment. Google will make all payments to Yahoo! Inc. in U.S.
Dollars, for Gross Revenues from Properties in the United States and Canada. Google will
make all payments within 30 days following the calendar month in which the Ads were
displayed. Google will make payment by wire transfer in accordance with the instructions
specified in Exhibit O.

          (b) Withholding and Offset Right. Google reserves the right to withhold and
offset against its payment obligations hereunder, or require Yahoo! to pay to Google
(within 30 days of any invoice therefor), any amounts Google may have overpaid to Yahoo! or
any amounts owed and not yet paid by Yahoo!, including any amounts payable to Google under
Sections 4.1.3 (Retained Revenues for AFS Services) and 4.2.3 (Retained Revenues for AFC
Services).

          (c) Monthly Reporting. Google will deliver a report to Yahoo! within [*] of
the end of each calendar month which will include Gross Revenue and Yahoo!’s revenue share
for the prior month for each Service by Client ID.

          4.5.3 Currency Conversion. All currency conversions made under this Agreement will be
made using the applicable average daily exchange rate for the applicable period as published by [*]
or such other internationally recognized source as may be agreed by the Parties in writing.

          4.5.4 Failure to Pay. [*].

     4.6 Taxes and Other Charges. All payments under the Agreement are exclusive of taxes
imposed by any Governmental Authority. [*] will pay all applicable taxes, including sales, use,
personal property, value-added, excise, customs fees, import duties or stamp duties or other taxes
and duties imposed by any Governmental Authorities of whatever kind in connection with any
transactions between Google and its advertisers in connection with Ads displayed on the Properties
as part of the Services. [*] will pay all applicable taxes, including sales, use, personal

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

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property, value-added, excise, customs fees, import duties or stamp duties or other taxes and
duties imposed by Governmental Authorities of whatever kind with respect to the payments made by
Google to Yahoo! under this Agreement excluding taxes based on [*] income. If local VAT/GST
laws require Google to self-assess VAT/GST on supplies made to Google by Yahoo! then [*] will be
responsible for payment of this VAT/GST but [*] will reimburse such VAT/GST to the extent
non-recoverable by [*].

     4.7 SAS70 Report and [*].

          4.7.1 SAS70 Report. Prior to [*], Yahoo! must request in writing from Google and
Google will make available to Yahoo! Google’s SAS70 report which will be from a reputable,
independent certified public accounting firm covering the key controls and validation mechanisms in
place to meet the revenue reporting obligations under this Agreement. Without limiting the
foregoing, and after Google has made Google’s SAS70 report to Yahoo!, Yahoo! may request that
Google provide updates to its SAS70 reports on an annual basis. At Yahoo!’s request, the Parties
will meet at least annually to discuss, on a confidential basis, Google’s current key controls,
significant changes in the relevant process, validation mechanisms and results of such validation,
including findings reported in the relevant SAS70 report.

          4.7.2 [*]. If after Yahoo!’s review of Google’s SAS70, Yahoo! believes that the SAS70 report
does not address Yahoo!’s concerns, Yahoo! and Google will discuss Yahoo!’s concerns in good faith.
If after reviewing the SAS70 report and discussing Yahoo!’s concerns under the preceding sentence,
Yahoo! continues to believe that Yahoo!’s concerns have not been fully addressed, Yahoo! may [*].

5. LICENSES; INTELLECTUAL PROPERTY

     5.1 License to Google Materials.

          5.1.1 License Grant. Google grants to Yahoo! a limited, nonexclusive and
non-sublicensable license during the Term to access and use the Google Materials solely for the
purpose of implementing and receiving the Services (including, for the avoidance of doubt, in
connection with the Yahoo! Partner Properties as permitted herein) and solely to the extent
permitted hereunder. Except to the limited extent expressly provided in this Agreement, Google
does not grant, and Yahoo! shall not acquire, any right, title or interest (including, without
limitation, any implied license) in or to any Google Intellectual Property Rights; and all rights
not expressly granted herein are reserved to Google. The foregoing license includes the limited
right to make a reasonable number of copies of the Google Materials for the purposes of
implementing and receiving the Services.

          5.1.2 License Restrictions; Residual Knowledge; Right to Develop.

          (a) Yahoo! will not modify, adapt, translate or prepare derivative works from any
Google Materials constituting copyrighted materials of Google or its licensors, except
solely to the extent that it is reasonably necessary to do so in order to receive and
implement the Services as permitted herein and in accordance with the terms and conditions
of this Agreement. Notwithstanding the foregoing, nothing in this Section

 

			
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5.1.2 or in this Agreement shall limit, or be construed to limit, Yahoo!’s ability or
right to modify, adapt, translate or prepare derivative works from any Google Materials
that are publicly available [*].

          (b) Yahoo! will not decompile, reverse engineer, disassemble or attempt to derive
source code from any [*].

          (c) Google will not provide Yahoo! with any Google Protocols, Documentation and other
software and technical materials that are not reasonably necessary to implement the
Services during the Term, unless they (i) are required to be provided under the Agreement,
or (ii) are specifically requested by Yahoo! to be provided.

          (d) Google acknowledges that Yahoo! operates services similar to the Services [*] and
that Yahoo! will continue to develop, create, operate and improve technology, products,
features and services similar to the Services and [*].

          (e) Nothing in this Section 5.1.2 or in this Agreement shall (i) limit, or be
construed to limit, Yahoo!’s ability or right to (A) develop any technology (including
software), products, features or services, or engage in any activities related to the
development, without violating any express provision of this Agreement or (B) license or
acquire any technology, products, features or services from third-parties; or (ii) except
as otherwise expressly provided in this Agreement, limit, or be construed to limit, rights
(including rights of use) that Yahoo! may have under applicable Law. Except as otherwise
expressly provided in this Agreement, nothing in this Section 5.1.2 or in this Agreement
shall limit, or be construed to limit, Yahoo!’s ability or right to modify, adapt,
translate, prepare derivative works from, decompile, reverse engineer, disassemble or
attempt to derive source code from or develop technology, products, features or services
from any Google Materials that are otherwise publicly available without an enforceable
prohibition on the activity in which Yahoo! engages. [*].

          (f) Nothing in this Section 5.1.2 or in this Agreement shall be construed to apply to
any materials provided outside the scope of this Agreement.

     5.2 Brand Features.

          5.2.1 Brand Features. Each Party shall own all right, title and interest, including
without limitation all Intellectual Property Rights, in and to its own Brand Features. Except to
the limited extent expressly provided in this Agreement, neither Party grants, and the other Party
shall not acquire, any right, title or interest (including, without limitation, any implied
license) in or to any Brand Features of the first Party; and all rights not expressly granted
herein are deemed withheld. All use by Yahoo! of Google Brand Features under this Agreement
(including any goodwill associated therewith) shall inure to the benefit of Google. No Party shall
attempt to register or have registered on its behalf Brand Features or domain names that are
confusingly similar to those of the other Party.

 

			
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omitted and filed separately with the Securities and Exchange Commission.
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          5.2.2 License to Google Brand Features. Subject to the terms and conditions of this
Agreement, Google grants to Yahoo! a limited, nonexclusive and non-sublicensable license during the
Term to display those Google Brand Features expressly authorized by Google, solely for the purposes
expressly set forth herein. In its use of any Google Brand Feature, Yahoo! agrees to adhere to
Google’s brand treatment guidelines for use of Google’s Brand Features attached hereto as
Exhibits F and I as such Exhibits may be updated by Google from time to time upon
notice to Yahoo!. Yahoo! and the Yahoo! Partners will have [*] days to comply with any such
updated guidelines.

     5.3 [*]; No Implied Licenses. Nothing in this Agreement or the performance
thereof, or that might otherwise be implied by Law, will operate to grant a Party any right, title
or interest, implied or otherwise, in or to the Intellectual Property Rights of the other Party
hereto, other than the rights and licenses expressly granted in this Agreement. Each Party
expressly reserves all Intellectual Property Rights not expressly granted hereunder. [*].

     5.4 [*].

6. REPORTING; DATA; SECURITY

     6.1 Terminology. As used in this Agreement, the term “Data” means any data or
information collected by Google through the Services (including, data collected by or associated
with any cookies whether received directly from End Users by Google or sent by Yahoo! to Google),
and any data or information derived therefrom by Google.

     6.2 Cookies, Beacons and Pixels. Cookies, beacons, pixels, and similar tracking
devices (“CBP”) may not be placed by or on behalf of Google or a Google Affiliate on End
User browsers on or from the Properties, or sites that serve the Services to the Properties, in
connection with providing the Services absent [*].

     6.3 [*].

     6.4 Reporting.

          6.4.1 Reporting Received by Yahoo!. Google will provide Yahoo! with access to the
Google Administration Console. The Google Administration Console will have the ability to generate
customizable flat file (e.g., csv) reports or provide equivalent functionality for Yahoo!
to export data from the Google Administration Console. Google will also provide to Yahoo! any (a)
replacements of, (b) improvements to, (c) alternatives to, and (d) features and functionality of
the Google Administration Console ((a) — (d) collectively, “Additional Reporting Tools”)
[*].

          6.4.2 [*].

          6.4.3 Supplemental Reporting. Google will provide Yahoo! on a monthly basis the most
recently calculated information related to [*]. In addition, Google will provide to Yahoo!
additional reporting that it makes [*].

 

			
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     6.5 Data [*]. The Parties agree that as between Yahoo! and Google, data or
information collected by Yahoo! (including, without limitation, click events tracked by Yahoo!) or
Yahoo! Partners independent of Google or that is sent by Yahoo! to Google in connection with the
provision of the Services is [*]. The Parties agree that as between Yahoo! and Google, any data or
information collected by Google independent of Yahoo! Properties or Yahoo! Partner Properties, that
is received by Google from End Users of the Yahoo! Properties or Yahoo! Partner Properties in
connection with provision of the Services under this Agreement, or that is received directly from
such End Users’ browsers in the ordinary course of providing the Services [*].

     6.6 Information Use.

          6.6.1 [*].

          (a) [*].

          (b) [*].

          (c) [*].

          6.6.2 [*].

          6.6.3 [*]:

          (a) [*].

                    (1) [*].

                    (2) [*].

                    (3) [*].

                    (4) [*].

                    (5) [*].

                    (6) [*].

          (b) [*].

          (c) [*].

          6.6.4 [*].

     6.7 [*].

     6.8 Injunctive Relief Available. The Parties acknowledge and agree that breach of
this Section 6 may cause irreparable injury for which monetary damages are not an adequate

 

			
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omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

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remedy. Accordingly, each Party may seek injunctive relief and any other available equitable
remedies to enforce the provisions of this Section 6, without posting a bond if otherwise required
by Law.

     6.9 PIPEDA Compliance. Each Party covenants that in exercising its rights and
fulfilling its obligations under this Agreement, it will comply with the Canadian “Personal
Information Protection and Electronic Documents Act” (“PIPEDA”), as applicable, and all
applicable Canadian provincial privacy requirements governing the collection, use and disclosure of
personally identifiable information (as defined in PIPEDA) and will process and store personally
identifiable information only in accordance with PIPEDA and applicable provincial privacy Laws.
Each Party will provide such information as the other Party may reasonably require within
timescales reasonably requested to respond to requests from Canadian data protection authorities in
regard to data protection or retention practices under this Agreement; provided, however, that if a
Party objects to the other Party’s request for or disclosure of such information, the Parties will
promptly escalate the disagreement for resolution in accordance with Section 17 (Dispute
Resolution; Arbitration) unless, in either Party’s good faith, reasonable judgment, immediate
disclosure is required by Law.

     6.10 [*].

     6.11 Further Compliance. If necessary to comply with data protection Law, the Parties
will, or will ensure that they and/or the applicable Yahoo! Affiliates or Google Affiliates enter
into such further contracts or amendments as are required to ensure compliance with such data
protection Laws.

7. GENERAL REPRESENTATIONS AND WARRANTIES

Each Party represents and warrants to the other Party that: (a) it (i) is a corporation that has
been duly incorporated or organized, (ii) is validly existing and in good standing under the Laws
of its place of incorporation or organization, (iii) is properly qualified where qualification is
necessary for the conduct of its business under this Agreement, and (iv) has adequate corporate or
other power to enter into and perform this Agreement; and (b) this Agreement has been duly executed
and delivered by such Party and (assuming the due authorization, execution and delivery hereof by
the other Party) is intended to be a valid and binding obligation of such Party, enforceable
against it in accordance with its terms.

8. MUTUAL COVENANTS RE PERFORMANCE OF SERVICES

     8.1 Each Party agrees as follows:

          8.1.1 Personnel. Google’s personnel assigned to perform, support and maintain the
Services and Yahoo!’s personnel assigned to implement the Services and interact with Google with
respect to the support and maintenance of the Services shall have the proper skill, training and
background so as to be able to perform in a competent and professional manner;

 

			
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omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

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          8.1.2 Performance of Services. Google will perform the Services and Yahoo! will
implement the Services in a professional and workmanlike manner and according to the applicable
description and requirements for such Services as set forth in this Agreement and the
Documentation;

          8.1.3 No Malware.

          (a) In connection with the Services, neither Party [*] the introduction,
delivery, or transmission of, any computer software, code or script executed on a Yahoo!,
Yahoo! Partner or End User’s computer (in the case of Google) or a Google computer (in the
case of Yahoo!) that (i) is designed to disrupt, erase, disable, harm, or otherwise
designed to impede in any manner the operation of any software, firmware, hardware,
computer system, network, Property, Google Property or Service; (ii) is a harmful,
malicious or hidden procedure, routine or mechanism that is designed to damage or corrupt
data, storage media, programs, equipment or communications, or is otherwise designed to
interfere with operations, such as a “virus,” “time bomb,” “trap door,” “Trojan horse,” or
“worm”; or (iii) constitutes a hidden procedure, routine or mechanism that transmits to
such Party or any third-party any data or information regarding or derived from any
Property, End User, IP address or client-side device (in the case of Google) or any Google
Property or Google user (in the case of Yahoo!) without the prior written consent of the
other Party.

          (b) If either Party learns that it or another person or entity has introduced,
delivered or transmitted computer software, code or script described in Section
8.1.3(a)(i)-(iii), such Party will promptly notify the other Party. Each Party shall work
cooperatively and in good faith with the other Party to address and resolve the matter.

          (c) Notifications pursuant to Section 8.1.3(b) will be made to the other Party’s
technical representative listed in Exhibit Q. Such notice will include a
description of the matter, expected resolution time (if known), the resolution path (if
known) and the name, phone number and email address of the Party’s security representative
who may be contacted to obtain incident updates.

          (d) The Parties will collaborate to develop and coordinate all public relations
regarding a violation of Section 8.1.3(a) or an incident triggering notice under Section
8.1.3(b). In the event of an incident through which third-parties gain unauthorized
access to Data to the extent such Data is attributable to Yahoo! the Parties will, on an
expedited basis, attempt to mutually agree upon all public statements and communications,
user messaging, and customer care messaging in connection with the incident, including all
legally required email notices to consumers and merchants but in no event will the failure
of the Parties to mutually agree prohibit either with complying with any obligations it may
have which are required by Law. The Parties will otherwise use good faith efforts to keep
each other appraised of incidents involving unauthorized third-party access to Data for
which they intend to make, or are required to make, public disclosures.

 

			
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Confidential treatment has been requested with respect to the omitted portions

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          8.1.4 Compliance With Laws. In providing and implementing the Services, each Party
will comply with all applicable Laws.

     8.2 Yahoo! acknowledges and agrees that each of the following does not violate Section
8.1.3(a)(iii): [*].

     8.3 [*].

9. SERVICE LEVEL AGREEMENT

Google will provide all Services in accordance with the SLA. Google’s support personnel will only
be responsible for assisting Yahoo!, and will not be obligated to provide any direct support to End
Users. Each Party will assign a technical representative as the primary contact for the other
Party.

10. DISCLAIMER

EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES MADE BY THE PARTIES IN THIS AGREEMENT AND TO
THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, NO PARTY HERETO MAKES ANY REPRESENTATIONS OR
WARRANTIES. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT AND TO THE MAXIMUM EXTENT PERMITTED BY
APPLICABLE LAW, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL OTHER REPRESENTATIONS AND WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE,
MERCHANTABILITY, NONINFRINGEMENT, TITLE OR IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING OR
COURSE OF PERFORMANCE.

11. LIMITATION OF LIABILITY

     11.1 NO CONSEQUENTIAL DAMAGES. SUBJECT TO SECTION 11.3 (EXCEPTIONS FROM EXCLUSIONS
AND LIMITATIONS), TO THE MAXIMUM EXTENT A LIMITATION OF DAMAGES OR LIABILITY IS PERMITTED BY
APPLICABLE LAW, NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL,
INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES (INCLUDING FOR THE INDIRECT LOSS OF PROFIT OR
REVENUE) ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, HOWEVER CAUSED, AND UNDER WHATEVER
CAUSE OF ACTION OR THEORY OF LIABILITY BROUGHT (INCLUDING UNDER ANY CONTRACT, NEGLIGENCE OR OTHER
TORT THEORY OF LIABILITY) EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

     11.2 LIABILITY CAP. SUBJECT TO SECTION 11.3 (EXCEPTIONS FROM EXCLUSIONS AND
LIMITATIONS), IN NO EVENT SHALL EITHER PARTY’S LIABILITY FOR ANY CLAIM ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT (WHEN AGGREGATED WITH SUCH PARTY’S LIABILITY FOR ALL OTHER CLAIMS
ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT BUT

 

			
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Confidential treatment has been requested with respect to the omitted portions

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EXCLUDING AMOUNTS PAID IN CONNECTION WITH ITEMS SPECIFIED IN SECTION 11.3 (EXCEPTIONS FROM
EXCLUSIONS AND LIMITATIONS)) EXCEED (A) DURING THE FIRST YEAR OF THE AGREEMENT, $[*], (B)
DURING THE SECOND YEAR OF THE AGREEMENT, [*]% OF THE SHARE OF GROSS REVENUES RETAINED BY [*] DURING
THE [*] YEAR OF THE AGREEMENT AND (C) THEREAFTER, THE SHARE OF GROSS REVENUES RETAINED BY [*]
DURING THE PRIOR [*] MONTHS. FOR AVOIDANCE OF DOUBT, THE LIABILITY CAPS SET FORTH IN SUBSECTIONS
(A), (B) AND (C) ABOVE ARE NOT CUMULATIVE.

     11.3 Exceptions from Exclusions and Limitations.

          11.3.1 Nothing in this Agreement shall exclude or limit either Party’s liability for: (a)
breaches of Section 14 (Confidentiality) or 16 (Public Relations); (b) with regard to Google,
amounts owed under Section 4 (Compensation) and with regard to Yahoo!, amounts owed under Section
13.6.2; (c) infringement or misappropriation of the other Party’s Intellectual Property Rights; or
(d) any amounts payable to third-parties pursuant to a Party’s indemnification obligations under
Section 12 (Indemnification).

          11.3.2 With regard to Google’s liability for any breaches of [*], the provisions of Section
11.1 (No Consequential Damages) shall apply (except with regard to any amounts payable to
third-parties pursuant to Google’s indemnification obligations under subsection (d) of Section
12.1.1) but the provisions of Section 11.2 (Liability Cap) shall not apply. With regard to
Yahoo!’s liability for breaches of Sections [*], the provisions of Section 11.1 (No Consequential
Damages) shall apply (except with regard to any amounts payable to third-parties pursuant to
Yahoo!’s indemnification obligations under subsection (i) of Section 12.2 (Yahoo! Indemnity)) but
the provisions of Section 11.2 (Liability Cap) shall not apply.

          11.3.3 Except as set forth in Section 12.1.2(b), Google’s liability under subsections (b) and
(c) of Section 12.1.1 shall not exceed $[*] million per suit and $[*] million in the aggregate.

          11.3.4 If (a) Google intentionally and materially breaches this Agreement in bad faith in a
manner that substantially and materially frustrates Yahoo!’s ability to use or benefit from the AFS
Service as contemplated herein when taken as a whole, and (b) in a notice of Dispute from Yahoo!,
Yahoo! informs Google that Yahoo! believes that Google’s breach meets or is likely to meet the
conditions set forth in this Section 11.3.4 (and references this Section 11.3.4), and Google does
not make commercially reasonable efforts to cure such breach during the notice of dispute and
escalation periods set forth in Sections 17.1.1 (Notice of Dispute) and 17.1.2 (Escalation), then
with respect to that breach the provisions of Section 11.1 (No Consequential Damages) shall apply
but the provisions of Section 11.2 (Liability Cap) shall not apply and the liability caps in the
SLA shall not apply. [*] (x) [*] such breaches within [*] consecutive months or (y) [*] such
breaches of the same provision within [*] months, then with respect to such [*] breach, [*].

          11.3.5 [*].

 

			
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     11.4 Allocation of Risk. The Parties agree that (a) the mutual agreements made in
this Section 11 (Limitation of Liability) reflect a reasonable allocation of risk, and (b) that
each Party would not enter into the Agreement without these exclusions and limitations on liability
and the exceptions set forth above.

12. INDEMNIFICATION

     12.1 Google Indemnity.

          12.1.1 Indemnification Obligations. Google will defend, or at its option settle, any
third-party claim, suit, action, administrative, regulatory or other proceeding brought against
Yahoo!, any entity to which this Agreement is assigned (as permitted under Section 18.4
(Assignment; Delegation)) and each of their employees, officers, directors, representatives and
agents (each, a “Yahoo! Indemnified Party”) based upon a claim (a) alleging that the AFS
Service or AFC Service or any portion or element thereof, or the technology used to provide the AFS
Service or AFC Service or any portion or element thereof, [*]; (b) alleging that any
Advertising Result [*]; (e) alleging that Google is in breach or otherwise in violation of any
third-party agreement by entering into and/or performing under this Agreement; (f) arising from
breach of any representation or warranty made by Google to Yahoo! in Section 7 (General
Representations and Warranties) of this Agreement or otherwise alleging facts, which if true, would
constitute a breach of such representation or warranty; or (g) alleging that a Google Brand Feature
infringes any third-party trademark, service mark, domain name or trade dress rights or any
copyrights in the Territory.

          12.1.2 Exclusions.

          (a) Notwithstanding the foregoing, in no event shall Google have any obligations or
liability under this Section 12 to the extent arising from: [*].

          (b) [*].

          12.1.3 Right to Ameliorate Damages. [*].

     12.2 Yahoo! Indemnity. Yahoo! will defend, or at its option settle, any third-party
claim, suit, action, administrative or regulatory or other proceeding brought against Google, any
entity to which this Agreement is assigned (as permitted under Section 18.4) (Assignment;
Delegation) and each of their respective employees, officers, directors, representatives and agents
based upon a claim: (a) [*]; (b) arising from a breach of any representation or warranty made by
Yahoo! to Google in Section 7 (General Representations and Warranties) of this Agreement or
otherwise alleging facts, which if true, would constitute a breach of any such representation or
warranty; (c) arising from or relating to any claim alleging that Yahoo! is in breach or otherwise
in violation of any third-party agreement by entering into and/or performing under this Agreement;
[*].

     12.3 General. Indemnification provided under Sections 12.1 (Google Indemnity) and
12.2 (Yahoo! Indemnity) shall be limited to [*]. The foregoing obligations shall exist only if the
Party seeking indemnification (“Indemnitee”): (i) promptly notifies the Indemnitor of such
claim,

 

			
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omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

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(provided that the failure to provide prompt notice shall only relieve Indemnitor of its
obligation to the extent Indemnitor is materially prejudiced by such failure and can demonstrate
such prejudice), (ii) provides the Indemnitor with reasonable information, assistance and
cooperation in defending the lawsuit or proceeding, and (iii) gives the Indemnitor full control and
sole authority over the defense, at the Indemnitor’s sole expense, and settlement of such claim,
provided that any settlement shall not make any admissions, obligate or bind Indemnitee to pay
money without the Indemnitee’s prior written consent, which shall not be unreasonably withheld. In
addition, the Indemnitor shall not agree to any settlement on behalf of the Indemnitee under this
Section 12, without the Indemnitee’s prior written consent, which shall not be unreasonably
withheld or delayed, in which the Indemnitee is required to or restrained from performing any act
except (in the case of Yahoo!) to cease using the Services, or in which the Indemnitee is required
to pay any money. The Indemnitee may join in defense with counsel of its choice at its own
expense. The Indemnitor shall only reimburse the Indemnitee for expenses incurred by the
Indemnitee with the Indemnitor’s prior written approval. [*].

     12.4 SOLE REMEDY. SECTION 12 (INDEMNIFICATION) STATES THE PARTIES’ ENTIRE LIABILITY
AND EXCLUSIVE REMEDY [*].

     12.5 Third-Party Claims Arising From a Party’s Breach. Except as expressly provided
in Section 12.1 (Google Indemnity) or Section 12.2 (Yahoo! Indemnity), neither Party will have any
obligation to indemnify the other Party for third-party claims arising from or relating to (a)
Google’s provision of the Services in any manner in breach of this Agreement or (b) Yahoo!’s use of
the Services in any manner in breach of this Agreement; provided that any damages incurred by
Yahoo! (with respect to claims under subsection (a)) or by Google (with respect to claims under
subsection (b)), including the payment of money damages (in the case of claims from a third-party
that has an agreement in place with Yahoo!, money damages provided that commercially reasonable
limitations of liability provisions are in place) and attorneys’ fees and costs awarded in any
unappealable court decision or binding arbitration and direct money damages and reasonable
attorneys’ fees and reasonable costs incurred in connection with defending or settling such
third-party claims, will be deemed direct damages recoverable under this Agreement, subject to the
limitation of liability under Section 11.2 (Liability Cap) and any applicable exceptions to such
limitation under Section 11.3 (Exceptions from Exclusions and Limitations).

13. TERM AND TERMINATION

     13.1 Term. This Agreement will commence on the Effective Date and continue for a
period of four years thereafter (the “Initial Term”). Yahoo! Inc. may renew the Agreement
for up to two additional terms of three years each (each a “Renewal Term”). Any renewal
hereunder shall be made by Yahoo! Inc. in writing at least [*] days prior to the expiration of the
then-current Term. “Term” means the Initial Term and any Renewal Terms.

     13.2 Termination for Breach.

          13.2.1 Material Breach. Subject to Section 13.2.3 (Limitation on Termination Rights),
either Party may terminate this Agreement in the event of the other Party’s material breach of this
Agreement upon [*] days written notice to the other Party if such material breach

 

			
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omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

33

 

remains uncured after the expiration of the [*]-day notice period. [*]. In addition,
the Agreement may be terminated as set forth in the SLA.

          13.2.2 Repeat Breaches. Subject to Section 13.2.3 (Limitation on Termination Rights),
either Party may terminate this Agreement with [*] days notice if the other Party materially
breaches the same material term or condition of this Agreement [*].

          13.2.3 Limitation on Termination Rights. Notwithstanding Sections 13.2.1 (Material
Breaches) and 13.2.2 (Repeat Breaches) above and without limitation of Google’s other rights and
remedies under this Agreement (including Section 13.3 (Suspension Rights)), Google may not
terminate this Agreement as a result of any material breach of [*]. In any event, Yahoo! shall be
obligated to cure such material breach as promptly as practicable.

          13.2.4 Scope of Termination Rights. [*].

     13.3 Suspension Rights. In addition to any other rights that a Party may have under
this Agreement:

          13.3.1 In General. A non-breaching Party may upon prior written notice, suspend
performance under this Agreement, or the provision of any Service hereunder if the other Party
materially breaches [*].

          13.3.2 Specific to Services. Google may, upon prior written notice, suspend
performance under this Agreement, or the provision of any Service hereunder, if

          (a) Yahoo!’s implementation of the Services is not in compliance with [*]; provided
that Google will promptly notify Yahoo! of such non-compliance prior to any suspension
(except for emergency situations) [*];

          (b) Yahoo! Inc. delivers a notice, or, if sooner, the occurrence of an event that
obligates Yahoo! Inc. to deliver a notice, pursuant to Section 13.4.1(a) as a result of the
execution of a CIC Agreement with one of the Specified Parties;

          (c) immediately following any annual or special meeting of the stockholders of Yahoo!
Inc., a majority of the board of directors of Yahoo! Inc. is comprised of persons who (i)
did not serve on Yahoo! Inc.’s board of directors immediately prior to such annual or
special meeting of stockholders, and (ii) were nominated for election at such annual or
special meeting or for whom proxies were solicited (it being understood that, for purposes
of this Section 13.3.2(c) and Section 13.3.3(b), a person is not deemed to solicit proxies
for a nominee unless that person files or is required to file a preliminary or definitive
proxy statement with the Securities and Exchange Commission pursuant to Regulation 14A
under the Securities Exchange Act of 1934, as amended, or furnishes or requests proxy cards
or a form for revoking proxy cards to stockholders of Yahoo! Inc.) prior to such meeting by
one of the Specified Parties (it being understood that any director nominated or appointed
by a board that includes a majority of directors nominated by or for whom proxies were
solicited by one of the Specified Parties shall be deemed to be a director nominated by or
for whom

 

			
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proxies were solicited by one of the Specified Parties); provided that, for purposes
of this Section 13.3.2(c) and Section 13.3.3(b), solely with respect to the first two
annual or special meetings of the stockholders of Yahoo! Inc. held after the Effective Date
where the election of a majority of the members of the board of directors of Yahoo! Inc. is
before the stockholders of Yahoo! Inc. (the “Specified Meetings”; provided that any meeting
of the stockholders of Yahoo! Inc. that occurs after September 1, 2009 shall not be a
Specified Meeting), Specified Parties shall be deemed to include any and all persons other
than Yahoo! Inc., its directors, officers and employees and any persons retained by Yahoo!
Inc. for the purpose of soliciting proxies at such meeting; or

          (d) the board of directors of Yahoo! Inc. recommends that Yahoo! Inc. stockholders
accept a tender or exchange offer by one of the Specified Parties.

          13.3.3 Suspension in General.

          (a) Any suspension pursuant to this Agreement, other than a suspension pursuant to
Sections 13.3.2(b)-(d), will be narrowly tailored in scope and duration to alleviate the
harm caused by the breach with respect to the applicable Services and with respect to the
Properties, but the non-breaching Party may suspend across the affected Services and
Properties more broadly to the extent necessary to prevent material harm to its business or
under this Agreement (e.g., that the integrity of the Services may be compromised)
to the non-breaching Party. [*].

          (b) Notwithstanding subsection (a) above, in the event Google has suspended the
Agreement pursuant to Sections 13.3.2(b)-(d), then the suspension shall cease upon, and
Google will resume providing the Services as soon as practicable after and, in any event,
not later than 30 days after, the earliest of (i) the end of the CIC Termination Period,
(ii) if applicable, the date on which the CIC Agreement is terminated, (iii) if applicable,
four months (two months in the instance of a second Specified Meeting) following the annual
or special meeting of Yahoo! stockholders referred to in Section 13.3.2(c), or such earlier
date on which the directors nominated by or for whom proxies were solicited by one of the
Specified Parties or, solely with respect to the Specified Meetings, by such other person
deemed to be included as a Specified Party in accordance with the proviso in Section
13.3.2(c) (it being understood that any director nominated or appointed by a board that
includes a majority of directors nominated by or solicited for by one of Specified Parties
or such other person deemed to be included as a Specified Party shall be deemed to have
been nominated by or solicited for by one of the Specified Parties or such other person
deemed to be included as a Specified Party, cease to constitute a majority of Yahoo! Inc.’s
board of directors, or (iv) if applicable, the date on which the tender or exchange offer
referred to in Section 13.3.2(d) is terminated or expires without resulting in a Change in
Control.

     13.4 Termination for Change in Control.

          13.4.1 As promptly as practicable, but in no event later than the close of business on the
next Business Day, following the earlier to occur of (a) the execution of a definitive agreement by
a Party providing for one or more transactions that, if consummated

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

35

 

(including by the exercise of any option or right to acquire beneficial ownership of voting
securities), would result in a Change in Control of such Party (a “CIC Agreement”), or (b)
the occurrence of a Change in Control of such Party, such Party shall provide the other Party
written notice of the execution of such CIC Agreement or the occurrence of such Change in Control,
as the case may be and either Party shall have the option to terminate this Agreement upon written
notice to the other Party given no later than the 30th day following the occurrence of such Change
in Control (the period from the earlier of the occurrence under Sections 13.4.1(a) and 13.4.1(b)
through such 30th day, the “CIC Termination Period”). Such termination will be
effective (x) upon the occurrence of the Change in Control, if such notice of termination is given
prior to the occurrence of the Change in Control or (y) upon the delivery of such termination
notice, if the occurrence of the Change in Control has already occurred.

          13.4.2 For the purposes of this Agreement, “Change in Control” shall mean the
occurrence of any of the following events:

          (a) the consummation of a merger, consolidation, statutory share exchange,
recapitalization, restructuring or business combination involving directly or indirectly
the Party or a subsidiary of the Party, other than a merger, consolidation, statutory share
exchange, recapitalization, restructuring or business combination which would result in the
voting securities of the Party outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting securities of
the surviving entity) more than 50% of the total voting power represented by the voting
securities of the surviving entity outstanding immediately after such transaction;
provided, that if the merger, consolidation, statutory share exchange, recapitalization,
restructuring or business combination involves directly or indirectly a Specified Party, a
Change in Control shall be deemed to occur if the merger, consolidation, statutory share
exchange, recapitalization, restructuring or business combination would result in the
voting securities of the Party outstanding immediately prior thereto no longer continuing
to represent (either by remaining outstanding or by being converted into voting securities
of the surviving entity) more than 65% of the total voting power represented by the voting
securities of the surviving entity outstanding immediately after such transaction;

          (b) the approval by the stockholders of a Party of a plan of liquidation and
dissolution of a Party;

          (c) the sale or disposition by a Party of all or substantially all of the Party’s
consolidated assets;

          (d) at any point in time Yahoo! no longer owns and, with respect to the U.S. and
Canada algorithmic search and search advertising business, controls a majority portion of
Yahoo!’s technology and intellectual property assets (e.g., software, know-how,
algorithms), taken as a whole, that in the twelve month period prior to that time had been
owned by Yahoo! and used to provide services in the U.S. and Canada for either (i) its
algorithmic search business or (ii) its search advertising business. Without limiting the
generality of the foregoing, to the extent that Yahoo! grants an exclusive (including as to
Yahoo!) license in such technology and intellectual property assets for the U.S. and Canada
for the operation of an algorithmic search business or search advertising business, such
technology and intellectual property assets are no longer controlled by Yahoo! for the
purposes of this Section. For the avoidance of doubt, the direct or indirect use of
third-party technology and intellectual property assets by

36

 

Yahoo! to provide services in the U.S. and Canada in either its algorithmic search business
or its search advertising business shall not, in and of itself, constitute a Change in
Control; or

          (e) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended) becoming the “beneficial owner” (as defined in
Rule 13d-3 under said Act), directly or indirectly, of securities of a Party representing
more than 50% of the total voting power represented by the Party’s then outstanding voting
securities; provided, that (i) if such person is one of the Specified Parties identified in
clause (a) of Section 1.89, a Change in Control shall be deemed to occur if such Specified
Party becomes the beneficial owner of securities representing more than 35% of the total
voting power represented by the Party’s then outstanding voting securities, and (ii) if
such person is a Specified Party identified in clause (b) of Section 1.89, a Change in
Control shall be deemed to occur if such Specified Party becomes the beneficial owner of
(x) securities representing more than 15% of the common stock or total voting power
represented by the Party’s then outstanding voting securities or (y) any equity or voting
securities of the Party acquired from such Party or pursuant to any direct or indirect
arrangement, agreement or understanding between the Party and such person representing (or
having a right to receive in the aggregate) 5% or more of the Party’s total equity value or
1% or more of the Party’s annual revenues on a consolidated basis (excluding, in the case
of clause (y), (A) securities acquired by an investment fund in which such Specified Party
owns less than a 5% interest, (B) securities acquired in a bona fide underwritten,
SEC-registered offering to the capital markets generally where the Party is not directing
the underwriter to resell securities to such Specified Party or (C) securities acquired by
such person in consideration for the sale of an entity or assets, provided such Party does
not as part of the same transaction or series of related transactions enter into any
commercial or business transaction with such Specified Party other than transition or other
agreements necessary for the purposes of effecting the sale).

          13.4.3 In the event that a Party has executed a CIC Agreement, then, in addition to the notice
required by Section 13.4.1, such Party shall provide written notice to the other Party as promptly
as practicable, but in no event later than the close of business on the next Business Day,
following the consummation of the transaction resulting in a Change in Control.

     13.5 Termination for Gross Revenue Amounts.

Beginning ten months following the first launch of either of the Services on the first Property
under this Agreement (other than for testing purposes) and each month thereafter, if Gross Revenues
from all Properties are less than $83,333,333 in aggregate during the four prior calendar months,
then Google may terminate this Agreement upon 30 days prior written notice to Yahoo!, except in the
event that Yahoo!’s failure to generate such amounts was directly caused by any breach of this
Agreement by Google (including any suspension by Yahoo! as a result thereof), any failure of Google
to meet its obligations under the SLA, Yahoo!’s exercise of its rights under Section 2.11.3
(Remedies; Removal and [*]), or any delay in the launch of Services by Google under Section
2.7 (Launch of Services). Google must exercise its right to terminate

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

37

 

under this Section 13.5
within 30 days of the end of the last consecutive calendar month giving rise to such right.

     13.6 Effect of Termination; Survival.

          13.6.1 Upon the termination or expiration of this Agreement, all licenses granted pursuant to
this Agreement will terminate immediately and any and all of Yahoo!’s rights and access to the
Services shall cease. The respective rights and obligations of the Parties under the following
Sections will survive any expiration or termination of this Agreement: (a) 2.17.2(a) and (b), 3.4.1
(in accordance with its terms), 4.6, 4.7 (but only for six months after such expiration or
termination), 5.1.2, 5.3, 5.4, 6.5, 6.6, 6.7, 6.8, 6.9, 6.11, 10, 11, 12, 13.6, 14, 17 and 18; and (b) 4.1,
4.2, 4.3, 4.5 and 6.4 (to the extent required to fulfill both Parties’ reporting and payment obligations
for Ads served on the Properties prior to the termination or expiration of this Agreement). Except
as set forth in the immediately preceding sentence, upon termination or expiration of this
Agreement, neither Party shall have any further obligation to the other; provided that, no
termination or expiration of this Agreement will relieve any Party for any liability for any breach
of or liability accruing under this Agreement prior to the termination or expiration thereof. Upon
receipt of a written request from a Disclosing Party after the termination or expiration of this
Agreement, the Receiving Party will either deliver to the Disclosing Party, or destroy or render
useless, within 30 days of receipt of such written request, all copies of any Confidential
Information (whether in tangible or electronic form) of the Disclosing Party provided hereunder in
its possession, custody or control, except to the extent, and only for so long as, required by Law
or needed in connection with actual or anticipated litigation or for tax or auditing purposes to
maintain an archived copy thereof, and will furnish to the Disclosing Party, within ten days of any
delivery or destruction thereof, an affidavit signed by an officer of the Receiving Party
certifying to the best of his or her knowledge, which materials were delivered or destroyed
hereunder, or remain in the Receiving Party’s archives. In addition, upon termination under
Section 13.4.1, the non-terminating Party will use commercially reasonable efforts to either
deliver to the terminating Party, or destroy or render useless, all copies of any data or
information provided under Section 6.4 (Reporting) (other than Gross Revenue, which may be
disclosed on a confidential basis, and except as such data is combined with non-Google information
such that it is not reasonably associatable to Google) in its possession, custody or control,
except to the extent, and only for so long as, required by Law or needed in connection with actual
or anticipated litigation or for tax or auditing purposes to maintain an archived copy thereof, and
will furnish to the terminating Party, within ten days of any delivery or destruction thereof, an
affidavit signed by an officer of the non-terminating Party certifying to the best of his or her
knowledge, which materials were delivered or destroyed hereunder, or remain in the non-terminating
Party’s archives.

          13.6.2 In the event that (a) Yahoo! or Google provides the other Party with a notice of
termination pursuant to subsection (a) of Section 13.4.1 as a result of a pending or consummated
Change in Control with respect to Yahoo! Inc. and (b) (x) such termination becomes effective within
24 months of the Effective Date, and (y) solely with respect to a termination by Google as a result
of a Change in Control of Yahoo! as defined in subsection (ii) of Section 13.4.2(e), had the
Agreement not been so terminated, Google would have within 24 months of the Effective Date been
able to provide Yahoo! with a notice of termination as a result of a Change in Control as defined
in Section 13.4.2(e)(i) and such termination would have become effective within 24 months of the
Effective Date, then Yahoo! shall pay to Google, by wire transfer of immediately available funds to
an account or accounts designated in writing by Google, within two Business Days after demand by
Google, an amount equal to (but in no event less than zero): (a) $250,000,000 less (b) one-half of
an amount equal to (i) all Gross Revenues

38

 

through the date of termination less (ii) the amount equal to Yahoo!’s share of such Gross
Revenues as determined and paid or payable to Yahoo! pursuant to Sections 4.1 (AFS Services) and
4.2 (AFC Services) during the same period. The following provisions shall apply to this Section
13.6.2:

          (a) Governing Law for Section 13.6.2:. Section 13.6.2 shall be governed by,
enforced in accordance with, and interpreted under, the laws of the State of Delaware,
without reference to applicable principles of conflicts of laws.

          (b) Consent to Jurisdiction for Section 13.6.2. The Parties hereby
irrevocably submit to the jurisdiction of the courts of the State of Delaware and, if
jurisdiction is not available in such state court, the Federal Courts of the United States
of America located in the State of Delaware over any dispute arising out of or relating to
Section 13.6.2 and each Party hereby irrevocably agrees that all claims in respect of such
dispute or proceeding may be heard and determined in such courts. The Parties hereby
irrevocably waive, to the fullest extent permitted by Law, any objection which they may now
or hereafter have to the laying of venue of any dispute arising out of or relating to
Section 13.6.2 brought in such court or any defense of inconvenient forum for the
maintenance of such dispute. Each Party agrees that a judgment in any such dispute may be
enforced in other jurisdictions by suit on the judgment or in any other manner provided by
Law. This consent to jurisdiction is being given solely for purposes of Section 13.6.2 and
is not intended to, and shall not, confer consent to jurisdiction with respect to any other
dispute in which a Party may become involved. Each Party consents to process being served
by the other Party in any proceeding of the nature specified in this subsection (b) by the
mailing of a copy thereof in the manner specified by the provisions of Section 18.5
(Notices).

          (c) No Arbitration. For purposes of clarification, Section 17 (Dispute
Resolution; Arbitration) shall not apply to any dispute arising out of or relating
to Section 13.6.2; any other claims or disputes arising out of or relating to this
Agreement shall be governed by Section 17 (Dispute Resolution; Arbitration).

          (d) Integral to Agreement. Yahoo! acknowledges that the agreements contained
in Section 13.6.2 are reasonable and an integral part of the transactions contemplated by
this Agreement and that, without these agreements, Google would not have entered into this
Agreement.

14. CONFIDENTIALITY

     14.1 Confidentiality. Each Party (a “Receiving Party”) understands that the
other Party (the “Disclosing Party”) may disclose to the Receiving Party information under
this Agreement of a confidential nature including, without limitation, product information,
pricing, financial information, end user information, software, specifications, research and
development and proprietary algorithms or other materials that is (a) clearly and conspicuously
marked as “confidential” or with a similar designation; (b) is identified by the Disclosing Party
as confidential and/or proprietary before, during, or promptly after presentation or communication;
or (c) is disclosed to Receiving Party in a manner in which the Disclosing Party reasonably
communicated, or the Receiving Party should reasonably have understood under the circumstances,
that the disclosure should be treated as confidential, whether or not the specific designation
“confidential” or any similar designation is used (“Confidential Information”).
Confidential Information shall not include information (i) previously known to the Receiving

39

 

Party without an obligation of confidence owed to the Disclosing Party, (ii) independently
developed by or for the Receiving Party without use of or access to the Disclosing Party’s
Confidential Information, (iii) acquired by the Receiving Party from a third-party which is not
known by the Receiving Party to be under an obligation of confidence owed to the Disclosing Party
with respect to such information, or (iv) which is or becomes publicly available through no breach
of this Agreement by the Receiving Party.

     14.2 Disclosure and Use. Except with the prior written consent of the Disclosing
Party, neither Party shall (a) disclose any Confidential Information of the Disclosing Party other
than to (i) its own officers, directors, employees, attorneys, accountants, financial advisors and
contractors who are actively involved in fulfilling the obligations and/or exercising the rights of
the Receiving Party under this Agreement, (ii) its Officers and members of its Board of Directors
or (iii) on a need to know basis, those who are actively involved in analyzing and advising the
Receiving Party for legal, accounting or financial purposes (including preparing or reviewing a
Party’s financial reports) and with respect to (i), (ii) and (iii) who have signed a non-disclosure
agreement or are otherwise subject to confidentiality obligations; (b) use Confidential
Information, except for fulfilling the obligations or, on a need to know basis, exercising the
rights of the Receiving Party under this Agreement or analyzing and advising the Receiving Party on
legal or financial matters; (c) make copies or allow others to make copies of such Confidential
Information except in connection with disclosures pursuant to Section 14.2 (a) or (b) or as is
reasonably necessary to fulfill the Receiving Party’s obligations or exercise its rights under this
Agreement; or (d) remove or export any such Confidential Information from the country of the
Receiving Party in violation of Laws. This Section 14.2 (or the rest of the Agreement) shall not
prevent a Party from using Confidential Information, Data or Services Information as is necessary
to support or defend a Dispute within the meaning of Section 17 (Dispute Resolution; Arbitration),
including any Disputes that arise pursuant to Section 13.6.2, and then only to the extent that the
arbitrators, or a court for Disputes governed by Section 13.6.2, enters an appropriate protective
order regarding Confidential Information (or Services Information) and the Party complies with
Section 17.2.5 (Confidentiality of Proceedings), with such provisions applying mutatis mutandis to
Disputes arising under Section 13.6.2. The Receiving Party shall treat the Confidential
Information with at least the same degree of care and protection as it would use with respect to
its own confidential information of a similar nature, but in no event less than a reasonable
standard of care. The foregoing obligations shall survive for a period of five years following the
termination or expiration of this Agreement, except in the case of source code, in which case the
foregoing obligations shall be perpetual.

     14.3 Agents and Contractors.

          14.3.1 Agents and Contractors. Neither Party will retain or utilize any of the
Specified Parties (or any of their then-current employees) as its agent, contractor or advisor for
any purposes under Section 14.2 (Disclosure and Use). The foregoing does not limit Yahoo!’s
ability to obtain Comparable Ads from any of such entities. Confidential Information disclosed by
a Party to contractors under 14.2 will be disclosed only to the extent that such contractors (x)
have a need to know such Confidential Information in connection with the purpose of the permitted
disclosure, (y) have signed a non-disclosure and non-use agreement with such Party that protects
the confidentiality of Data with provisions at least as protective as this Agreement, and (z) have
a contract with such Party that requires them to use Confidential Information only to fulfill such
Party’s obligations under this Agreement.

     14.4 Required Disclosures. A Receiving Party or its officers, directors, employees,
attorneys, accountants, financial advisors or contractors may make a disclosure of Confidential

40

 

Information if required either by Law or legal process (as a result of legal compulsion or in
order to advance a defense to a claim), in response to a request by a governmental or regulatory
agency, including but not limited to, a national stock market or exchange, or the Securities and
Exchange Commission or other regulatory agency, or in connection with a proceeding before a court,
adversary proceeding, administrative proceeding, governmental or regulatory proceeding, including
but not limited to, the rules and regulations of a national stock market or exchange, or the
Securities and Exchange Commission or other regulatory agency if (a) the Receiving Party only
discloses that portion of the Confidential Information reasonably required to be disclosed (on
advice by Receiving Party’s counsel); and (b) the Receiving Party provides reasonable written
notice to the Disclosing Party pursuant to Section 18.5 (Notices) in advance of the disclosure so
that the Disclosing Party may, at its election, seek confidential treatment for the Confidential
Information, a protective order or other appropriate remedy, relief or assurances, and the
Receiving Party shall cooperate with the Disclosing Party to obtain such confidential treatment,
orders or other remedies, relief or reliable assurances that confidential treatment will be
afforded the Confidential Information so disclosed; or (c) the Disclosing Party consents in writing
to having the Confidential Information produced or disclosed. Disclosure under this Section 14.4
shall not relieve the Receiving Party of its obligations of confidentiality generally under this
Agreement. In no event shall the Receiving Party or its officers, directors, employees, attorneys,
accountants, financial advisors or contractors oppose an action by the Disclosing Party to obtain a
protective order or other relief requiring that Confidential Information to be disclosed under this
Section 14.4 be treated confidentially. In the event that the Receiving Party or its officers,
directors, employees, attorneys, accountants, financial advisors or contractors, as the case may
be, shall have complied fully with the provisions of this paragraph, such disclosure may be made by
the Receiving Party or its officers, directors, employees, attorneys, accountants, financial
advisors or contractors, as the case may be, without any liability hereunder. 

     14.5 Confidentiality of Agreement. Each Party agrees that the terms and conditions of
this Agreement shall be deemed Confidential Information of the other Party and will be disclosed
only as set forth in this Section 14 or as otherwise provided in Section 16 (Public Relations and
Communications). For avoidance of doubt, if a Party enters into negotiations for a corporate
transaction, where the consummation of such transaction would result in a Change in Control of such
Party, prior to closing such corporate transaction the Party may not disclose the terms of this
Agreement (except to the extent such terms have already been publicly disclosed in compliance with
this Section 14 or Section 16 (Public Relations and Communications)) or the other Party’s
Confidential Information.

     14.6 Filings. Notwithstanding anything in this Agreement to the contrary, either
Party may disclose the existence and material terms of this Agreement as required by applicable
securities laws and regulations (including, without limitation, Regulation FD and the obligation to
file reports on Forms 10-K, 10-Q and 8-K under the Securities Exchange Act of 1934, as amended) or
the rules of any national stock market or exchange on which such party’s common stock is listed,
provided that such Party (a) provides written notice to the other Party pursuant to Section 18.5
(Notices) and solicits the other Party’s views as to which terms of this Agreement the other Party
desires confidential treatment for, including the justification for such confidential treatment, in
each case a reasonable time in advance of the disclosure, and (b) requests confidential treatment,
in accordance with the rules and regulations of the Securities and Exchange Commission, of those
terms of this Agreement so identified by the other Party, except to the extent that such Party
reasonably determines, with the advice of counsel and after soliciting the views of the other Party
pursuant to (a) above and discussing with the other Party the reasons for such determination
(including the advice of counsel), that any such terms are not appropriate

41

 

subjects for a request for confidential treatment under the rules and regulations of the
Securities and Exchange Commission.

     14.7 Injunctive Relief. The Parties acknowledge and agree that breach of this Section
14 may cause irreparable injury for which monetary damages are not an adequate remedy.
Accordingly, each Party may seek injunctive relief and any other available equitable remedies to
enforce the provisions of this Section 14, without posting a bond if otherwise required by Law.

15. ACCOUNT MANAGEMENT

     15.1 Account Managers.

          15.1.1 Appointment. Google and Yahoo! will each designate an appropriate number of
senior employees of their respective companies or of an Affiliate (the “Account Managers”).
Such number of Account Managers will be determined by the mutual agreement of the Parties and will
be appropriate in light of the potential complexity of and revenue generated under this Agreement.
The Account Manager together with other personnel as determined by the Account Managers will meet
telephonically or in person (a) from time to time (at a minimum on a monthly basis) to discuss the
various elements of this Agreement and Google’s proposed updates to the Services; or (b) as needed
to resolve any business or technical issues that may arise with respect to this Agreement. Each
Party will be responsible for all travel and any other costs and expenses for its representatives
to attend meetings of, or otherwise participate in, such meetings.

          15.1.2 Escalation. Any issue requiring resolution by the Account Managers that
remains unresolved will be resolved in accordance the dispute resolution procedures of Section 17.1
(Dispute Resolution).

          15.1.3 Ongoing Cooperation. Each Party agrees to devote appropriate resources in an
effort to achieve the purposes of this Agreement. Because of the scope of this Agreement and in
light of the rapid evolution of technologies underlying this Agreement and laws governing the
Services, the Parties agree to cooperate reasonably and in good faith to address unforeseen
circumstances, such as the evolution of technology or changes in Law.

          15.1.4 Affiliates. The Parties will cooperate to streamline and centralize
communications under this Agreement to avoid unnecessary communication involving Affiliates. Each
Party shall be primarily liable for performance by its Affiliates. Each Party shall be fully
responsible for compliance by its Affiliates with the terms and conditions of this Agreement.

16. PUBLIC RELATIONS AND COMMUNICATIONS

     16.1 Publicity. No Party may make any public announcement or issue any press release
about the existence or terms of this Agreement without the other Party’s prior written consent. Any
and all public announcements and press releases regarding the existence and terms of this Agreement
and the method of its release will be approved in advance of the release, in writing, by both
Yahoo! and Google and once released, either Party may repeat information released in accordance
with this Section 16.1 without further consent of the other Party. For purposes of clarification,
a Party does not need to seek approval from the other Party to disclose the existence and terms of
this Agreement if such Party is repeating a public statement that has been previously approved by
the other Party or publicly disclosed in accordance with this Section 16.1 or 14.6 (Filings).

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     16.2 Regulatory Cooperation.

          16.2.1 The Parties will implement the Services under this Agreement 105 days after the
Effective Date (or as extended upon agreement of the parties), or sooner if a Governmental
Authority provides notice that any regulatory issues, objections or concerns have been resolved.

          16.2.2 In connection with any regulatory proceedings relating to this Agreement, the Parties
will consult and cooperate reasonably with one another, consider in good faith the views of one
another, and provide to the other Party in advance any analyses, appearances, presentations,
memoranda, briefs, arguments, opinions and proposals they or their agents make or submit to a
Governmental Authority. Without limiting the foregoing, the parties hereto agree to (a) give each
other reasonable advance notice of all meetings with any Governmental Authority, (b) give each
other an opportunity to participate in each of such meetings, (c) to the extent practicable, give
each other reasonable advance notice of all substantive oral communications with any Governmental
Authority, (d) if any Governmental Authority initiates a substantive oral communication promptly
notify the other party of the substance of such communication, (e) provide each other with a
reasonable advance opportunity to review and comment upon all written communications (including any
analyses, presentations, memoranda, briefs, arguments, opinions and proposals) with a Governmental
Authority, (f) provide each other with copies of all written communications to or from any
Governmental Authority, (g) not advance arguments in connection with any regulatory review or
litigation proceeding related to this Agreement (other than litigation between the Parties) over
the objection of the other Party that would reasonably be likely to have a significant adverse
impact on that other Party, and (h) defend any lawsuits or similar actions filed on competition
grounds (whether initiated by a Governmental Authority or otherwise), unless doing so is not
commercially reasonable with respect to that party (taking all factors into account, including
without limitation effects on a party’s brand or business outside the scope of the Agreement),
provided however, that neither Party shall be required to comply with subsection (b) to the extent
that the Governmental Authority objects to the participation of the Party, or with subsections (e)
or (f) to the extent that such disclosure may raise regulatory concerns (in which case, the
disclosure may be made on an outside counsel basis).

          16.2.3 The Parties will cooperate reasonably in working with regulatory authorities to resolve
any issues, objections or concerns they may have, and, if necessary, will amend this Agreement to
resolve any such outstanding regulatory issues, objections or concerns, provided that any such
amendment is commercially reasonable for each Party (taking all factors into account, including
without limitation effects on a party’s brand or business outside the scope of the Agreement).

          16.2.4 Either Party may terminate the Agreement (a) 120 days after the Effective Date in order
to avoid or end a lawsuit or similar action filed on competition-law grounds if (i) such party has
taken all actions in compliance with this Section 16.2 including offering to make commercially
reasonable amendments to this Agreement, and (ii) defending such action is not commercially
reasonable with respect to that Party (taking all factors into account, including without
limitation effects on a party’s brand or business outside the scope of the Agreement); or (b) if a
court of competent jurisdiction has entered an order enjoining the implementation of the Agreement.

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17. DISPUTE RESOLUTION; ARBITRATION

     17.1 Dispute Resolution. Except with respect to a Party’s request for equitable or
provisional relief or to otherwise protect its Intellectual Property Rights or Confidential
Information provided under this Agreement, no civil action, proceeding as set forth below with
respect to any dispute, controversy or claim arising out of, or relating to, or in connection with,
this Agreement, or the breach, termination, or validity hereof, including the validity of this
dispute resolution provision (each of which dispute, controversy, or claim will be termed a
“Dispute”) between the Parties may be commenced, nor may a Party terminate any portion of
this Agreement for a material breach of a material warranty, representation, covenant or obligation
of this Agreement, until the Parties have first attempted in good faith to resolve the Dispute
amicably in accordance with this Section 17.1.

          17.1.1 Notice of Dispute. In the event of a Dispute, the Party raising the Dispute
shall give written notice to the other Party setting forth the details of the Dispute and any
proposed solution or compromise. The Parties shall cooperate in good faith to resolve the Dispute
within [*] days of receipt of the notice of Dispute.

          17.1.2 Escalation. In the event that the Parties are unable to resolve the Dispute
within [*] days, the Parties shall escalate the Dispute by referring the details of the Dispute,
the status of the negotiations and any proposed compromise in writing to the Parties’ respective
designated executive (who shall be at least at a “Senior Vice President” level). The Parties’
designated executives shall have [*] days from receipt of notice of the Dispute or such longer
period as the Parties may mutually agree to in writing, to resolve the Dispute in good faith. If
the Parties’ designated executives are unable to resolve the Dispute, the Dispute will be escalated
to an Officer of each Party, who shall have [*] days, or such longer period as the Parties may
mutually agree to in writing, to attempt to resolve the Dispute in good faith.

     17.2 Arbitration. If the Parties cannot resolve a Dispute pursuant to Section 17.1
above, and with the sole exception of Disputes governed by Section 13.6.2, any and all Disputes
(including, but not limited to, the validity of this agreement to arbitrate) will be settled
exclusively by final and binding arbitration joining all of the claims asserted by or against the
Parties in connection with such Dispute or claim. The arbitration will be conducted in Santa Clara
County, California and shall be administered by JAMS in accordance with its Comprehensive
Arbitration Rules and Procedures then in effect except as limited or expanded by this Agreement.
This clause shall not preclude Parties from seeking provisional remedies in aid of arbitration
(e.g., to compel arbitration) or from seeking equitable or provisional relief from a court
of competent jurisdiction.

          17.2.1 Smaller Claims. If the Dispute involves a claim for monetary damages only and
in an amount equal to or less than $[*], exclusive of legal fees and costs of the arbitration, then
the Parties will jointly select one independent arbitrator who is experienced and knowledgeable
about the Internet industry and about the particular products or services at issue and who is not
an employee, consultant or former employee or consultant of either Party. If the Parties do not
agree on the identity of the arbitrator within five Business Days of the commencement of the
arbitration, either Party may apply to JAMS for the appointment of an arbitrator who will have, to
the greatest extent possible, experience and knowledge about the

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

44

 

Internet industry and about the particular products or services at issue. If required to act
in accordance with this Section to appoint a single arbitrator in lieu of a Party, JAMS will
appoint an arbitrator within 15 days of such application.

          17.2.2 Larger Claims.

          (a) For all other Disputes governed by this Section 17.2, the Dispute will be
determined by a panel of three arbitrators. The Party initiating the arbitration (the
“Claimant”) will appoint an arbitrator experienced and knowledgeable about the
Internet industry and about the particular products or services at issue and who is not an
employee, consultant or former employee or consultant of either Party in its request for
arbitration, demand for arbitration or notice of claim (the “Demand”). The Party
responding to the Demand (the “Respondent”) will within 15 days appoint one
arbitrator experienced and knowledgeable about the Internet industry and about the
particular products or services at issue and who is not an employee, consultant or former
employee or consultant of either Party and will notify the Claimant in writing of the
appointment. If within 30 days after receipt of the Demand by the Respondent, either Party
has not appointed an arbitrator, then that Arbitrator will be appointed by JAMS from its
then-current roster of arbitrators for Large, Complex Commercial Disputes, and in making
this appointment, JAMS will nominate an arbitrator who is (i) experienced and knowledgeable
about the Internet industry and about the particular products or services at issue and (ii)
not an employee, consultant or former employee or consultant of either Party. If required
to act in accordance with this Section to appoint an arbitrator in lieu of a Party, JAMS
will appoint an arbitrator within 15 days of such application.

          (b) Within 30 days of the appointment of the second arbitrator, JAMS shall appoint the
third arbitrator in accordance with Rule 15 of the JAMS Comprehensive Arbitration Rules and
Procedures. The third arbitrator must be (i) experienced and knowledgeable about the
Internet industry and about the particular products or services at issue and (ii) not an
employee, consultant or former employee or consultant of either Party. The third
arbitrator will act as the chair of the arbitration panel.

          (c) Prior to the commencement of an arbitration proceeding, either Party may
disqualify the appointment of an arbitrator for conflict of interest as established in good
faith by the Party. Additionally, each Party may in its sole discretion exercise one
peremptory disqualification of the third arbitrator.

          17.2.3 Choice of Law. This arbitration provision (including the validity and
applicability of the agreement to arbitrate, the conduct of any arbitration of a Dispute, the
enforcement of any arbitral award made hereunder and any other questions of arbitration law or
procedure arising hereunder) and its interpretation, and with the sole exception of Disputes
governed by Section 13.6.2, any and all disputes between the Parties arising out of or relating to
this Agreement in any manner, shall be governed by and construed in accordance with the internal
laws of the State of California, without giving effect to any choice or conflict of law provision
or rule (whether of the State of California or any other jurisdiction) that would cause the
application of laws of any jurisdictions other than those of the State of California or the United
States. The Parties specifically exclude from application to the Agreement the United Nations
Convention on Contracts for the International Sale of Goods and the Uniform Computer Information
Transactions Act.

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          17.2.4 Conduct of Arbitration.

          (a) Evidence. In addition to documentary and other evidentiary submissions
permitted under the JAMS Comprehensive Arbitration Rules and Procedures, the Parties each
express an intent to work in good faith to limit the number of live witnesses to that
reasonably required to permit just presentation of each side’s case. The arbitrators shall
consider the number of witnesses at the Preliminary Conference and shall have the
discretion to limit the number of witnesses necessary for just resolution of a Dispute. The
Parties express an intent to minimize formal discovery, if any, but the arbitrators may, in
their discretion, grant narrowly tailored discovery if required for just resolution of a
Dispute.

          (b) Decision. The arbitration award will be a reasoned decision, will be in
writing and will state with particularity the legal and factual bases for the decision and
will be final and binding upon the Parties.

          (c) Fees and Awards. The arbitrators’ fees and costs of the arbitration will
be borne by the Claimant and Respondent equally, unless the arbitration panel in its
discretion makes a different provision in the final award. The arbitration panel is
empowered in its discretion to include an award of costs, including reasonable attorneys’
fees and disbursements to the prevailing Party. In addition to monetary damages, the
arbitration panel will be empowered to award equitable relief, including, but not limited
to, an injunction and specific performance of any obligation under this Agreement. The
arbitrators’ award of damages shall be limited by Section 11 (Limitation of Liability) and
any other relief, including suspension or termination, will be consistent with the terms
and conditions of this Agreement. The arbitrators will have no jurisdiction to, and are
not empowered to, modify or amend the exclusions and limitations of liability set forth in
this Agreement. The arbitration panel will be authorized in its discretion to grant pre-
and post-award interest at commercial rates. Any costs, fees or taxes incident to
enforcing the award will, to the maximum extent permitted by law, be charged against the
Party resisting such enforcement. Judgment upon the award may be entered by any court in
the United States having jurisdiction over the relevant Party or any of its assets.

          17.2.5 Confidentiality of Proceedings. The Parties agree that any arbitration
proceedings hereunder will be treated as the Confidential Information of both Parties and that the
existence of the proceeding and any element of it (including, but not limited to, any pleadings,
briefs or other documents submitted or exchanged and any testimony or other oral submissions and
awards) will not be disclosed beyond the arbitration panel, except as may lawfully be required in
judicial proceedings relating to the arbitration or in accordance with the disclosure provisions of
Section 14.4 (Required Disclosures). In addition, if a Party’s Confidential Information is
required to be disclosed pursuant to an arbitration proceeding or other judicial proceeding, the
Receiving Party shall treat the Disclosing Party’s Confidential Information pursuant to the terms
of Section 14 (Confidentiality).

18. MISCELLANEOUS

     18.1 Rules of Construction. As used in this Agreement, all words used herein,
regardless of gender used, shall be deemed and construed to include any other gender, masculine,
feminine, or neuter, as the context requires. The words “hereof,” “herein” and “hereunder” and
other words of similar import refer to this Agreement in its entirety and not to any part hereof.
All references herein to Sections and Exhibits shall be deemed references to and Sections of, and

46

 

Exhibits to, this Agreement. All Exhibits are hereby incorporated by reference into the
Agreement. The word “including,” when used herein is not intended to be exclusive and means
“including, but not limited to.” The headings used in this Agreement are inserted for convenience
of reference only and do not constitute a part of and will not be utilized in interpreting this
Agreement. The use of the word “all” shall be construed as “any and all,” the word “any” shall be
construed as “any and all,” and the word “each” shall be construed as “all and each.” This
Agreement has been negotiated by the Parties and their respective counsel and will be fairly
interpreted in accordance with its terms and conditions pursuant to the governing Law selected by
the Parties without application of any rules of construction relating to which Party drafted the
Agreement in favor of, or against, either Party. Unless otherwise expressly provided herein, any
references to any agreement (including this Agreement) or other contract, instrument or document or
to any statute or regulation or any specific section or other provision thereof are to it as
amended and supplemented (and, in the case of a statute or regulation or specific section or other
provision thereof, to any successor of such statute, regulation, section or other provision). Any
reference in this Agreement to a “day” or number of “days” (without the explicit qualification of
“Business”) shall be interpreted as a reference to a calendar day or number of calendar days.
Unless otherwise expressly provided herein, any provision of this Agreement using a defined term
(by way of example and without limitation, such as “Affiliate”) which is based on a specified
characteristic, qualification, feature or status shall, as of any time, refer only to such persons
or entities who have the specified characteristic, qualification, feature or status as of that
particular time. This contract is written in American English and, if it is translated into any
other language, the English-language version controls.

     18.2 Force Majeure. No Party will be liable for any failure or delay in performance
of any of its obligations hereunder (except for the payment of amounts already owed) if such delay
is due to acts of God, fires, flood, storm, explosions, earthquakes, general Internet outages, acts
of war or terrorism, riots, insurrection or intervention of any government or authority; provided,
however, that any such delay or failure will be remedied by such Party as soon as reasonably
possible. Upon the occurrence of a force majeure event, the Party unable to perform will, if and
as soon as possible, provide written notice to the other Parties indicating that a force majeure
event occurred and detailing how such force majeure event impacts the performance of its
obligations. Each Party will maintain during the Term, appropriate business continuity and
disaster recovery plans, procedures, facilities and equipment to restore operation of their
respective properties and services within a reasonable period of time under the circumstances.

     18.3 Amendment or Modification. Any amendments or modifications to the Agreement must
(a) be in writing; (b) refer to the Agreement; and (c) be executed by an authorized representative
of each Party.

     18.4 Assignment; Delegation. This Agreement and the performance of any duties
hereunder may not be assigned, transferred, delegated (except as set forth below), sold or
otherwise disposed of by a Party other than (a) with the prior written consent of the other Party,
or (b) in connection with a Change in Control of the assigning Party, subject to the right to
terminate under Section 13.4 (Termination for Change in Control). This Agreement will be binding
upon and shall inure to the benefit of a Party’s permitted successors and assigns. Any purported
assignment, transfer, delegation, sale or other disposition in contravention of this Section 18.4
is null and void. Notwithstanding the foregoing, either Party may delegate its performance to, or
exercise its rights through, one or more Affiliates in the Territory; provided that in the event of
any such delegation or exercise, each Party will remain liable and fully responsible for its
Affiliates’ performance of and compliance with such Party’s obligations and duties under this
Agreement.

47

 

     18.5 Notices. All notices must be in writing, given in English and addressed to the
attention of the other Party’s legal department and primary point of contact. A list of contacts
for each Party (as of the Effective Date) is set forth in Exhibit Q, which may be updated
by the Parties from time to time. Notice will be deemed given (a) when received if delivered in
person, (b) when receipt is verified in writing if delivered by overnight courier or mail or (c)
when verified by receipt if delivered by facsimile.

     18.6 Waiver. Any of the provisions of this Agreement may be waived by the Party
entitled to the benefit thereof. No Party will be deemed, by any act or omission, to have waived
any of its rights or remedies hereunder unless such waiver is in writing and signed by the waiving
Party, and then only to the extent specifically set forth in such writing. A waiver with reference
to one event will not be construed as continuing or as a bar to, or waiver of, any right or remedy
as to a subsequent event.

     18.7 Remedies Cumulative. Except as expressly set forth herein, no remedy conferred
upon any of the Parties by this Agreement is intended to be exclusive of any other remedy, and each
and every such remedy will be cumulative and will be in addition to any other remedy given
hereunder or now or hereafter existing at Law or in equity.

     18.8 Severability. If the application of any provision or provisions of this
Agreement to any particular facts or circumstances is held to be invalid or unenforceable by any
arbitrator, arbitration panel or court of competent jurisdiction, the validity and enforceability
of such provision or provisions as applied to any other particular facts or circumstances and the
validity of other provisions of this Agreement will not in any way be affected or impaired thereby,
and the Parties agree that the arbitrator, arbitration panel or court of competent jurisdiction
making such determination will have the power to modify the provision in a manner consistent with
its objectives such that it is enforceable.

     18.9 Independent Contractors. The Parties acknowledge and agree that they are dealing
with each other as independent contractors. Neither this Agreement nor any terms and conditions
contained in this Agreement may be construed to: (a) give any Party the power to direct and
control the day-to-day activities of any of the other; (b) create or constitute a partnership,
joint venture, franchise, employment or agency relationship between or among the Parties; or (c)
allow any Party to create or assume any obligation on behalf of the other Party for any purpose
whatsoever. No Party owes the other Party or any third-party any compensation for performing the
actions contemplated by the Agreement except as expressly set forth in the Agreement.

     18.10 Equitable Relief. Nothing in this Agreement will limit either Party’s ability
to seek equitable relief.

     18.11 Entire Agreement. The Agreement supersedes any other prior or collateral
agreements, whether oral or written, with respect to the subject matter hereof, including that
certain Google Services Agreement dated as of April 1, 2008 and that certain Letter of Intent
executed by the Parties on or about April 8, 2008. For the avoidance of doubt, this Agreement does
not affect or supersede that certain [*]. This Agreement (including any exhibits thereto)
constitutes the entire agreement with respect to the subject matter hereof, and any terms contained

 

			
	[*]	 	Indicates that certain information in this exhibit has been
omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions

48

 

in any related purchase order(s) or other documents (including the terms of any purchase
order, invoice, “click-wrap,” “shrink-wrap” or other document accompanying any order, request or
materials) pertaining to the subject matter of the Agreement shall be null and void. The Parties
acknowledge that this Agreement does not affect the terms of any purchase order, invoice,
“click-wrap,” “shrink-wrap” or other document accompanying orders, requests or materials not
provided in connection with this Agreement.

     18.12 No Third-Party Beneficiaries. The Agreement is not intended to benefit, nor
shall it be deemed to give rise to, any rights in any third-party.

     18.13 Counterparts; Facsimiles. This Agreement may be executed in any number of
textually identical counterparts, each of which when so executed and delivered will be deemed an
original, and such textually identical counterparts together will constitute one and the same
instrument. Each Party will receive a duplicate original of the counterpart copy or copies
executed by it. For purposes hereof, a facsimile copy of this Agreement, including the signature
pages hereto, will be deemed to be an original. Notwithstanding the foregoing, the Parties will
each deliver original execution copies of this Agreement to one another as soon as practicable
following execution thereof.

49

 

     IN WITNESS WHEREOF, the Parties to this Agreement by their duly authorized representatives
have executed this Agreement as of the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	YAHOO! INC. on behalf of Yahoo!	 	 	 	GOOGLE INC. on behalf of Google	 
	 
	By:

	 	/s/ Jerry Yang
	 	 	 	By:
	 	/s/ Eric Schmidt
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:

Title:
	 	Jerry Yang

Chief Executive Officer
	 	 	 	 	 	Name:

Title:
	 	Eric Schmidt

Chief Executive Officer	 

50exv10w1

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT (the “Agreement”) made as of the 29th day of April,
2008 by and between Biolase Technology, Inc. (the “Company”) and David M. Mulder
(“Executive”).

     WHEREAS, the Company and Executive wish to enter into a formal employment contract which will
govern the terms and conditions applicable to Executive’s employment with the Company and will
provide certain severance benefits for Executive in exchange for the Executive’s agreement to abide
by the terms and conditions set forth in this Agreement.

     NOW, THEREFORE, the parties agree as follows:

PART ONE — TERMS AND CONDITIONS OF EMPLOYMENT

     1. Duties and Responsibilities.

          A. Executive shall serve as the Chief Financial Officer of the Company and shall report
directly to the Company’s Chief Executive Officer and the Company’s Board of Directors (the
“Board”). Executive shall perform the responsibilities of a chief financial officer of a
public company, including such duties and functions as may be reasonably assigned to Executive from
time to time by the Company’s Chief Executive Officer or the Board. Executive shall comply with
all proper and reasonable directives and instructions of the Board, any committee of the Board and
the Company’s Chief Executive Officer.

          B. Subject to the exceptions set forth in Paragraph 6, Executive agrees to devote his full
business time and attention to the Company, to use his best efforts to advance the business and
welfare of the Company, to render his services under this Agreement fully, faithfully, diligently,
competently and to the best of his ability, and not to engage in any other employment activities
while employed by the Company.

     2. Period of Employment. Executive’s employment with the Company shall be governed by
the provisions of this Agreement commencing April 30, 2008 (the “Effective Date”) and for
the duration of Executive’s employment with the Company. Executive’s employment shall be “at will”
and may be terminated by either the Company or Executive in accordance with the provisions of
Section 7. The period during which Executive’s employment continues in effect shall be referenced
as the “Employment Period.”

     3. Base Salary.

          A. Executive shall be paid a base salary at the annual rate of not less than TWO HUNDRED
THIRTY-FIVE THOUSAND dollars ($235,000) per annum (hereinafter “Base Salary”) during the
Employment Period. The Base Salary may be increased from time to time in the sole and absolute
discretion of the Board. The Base Salary may be decreased only in the event of a decrease of base
compensation of all officers of the Company, and then by no greater

1

 

percentage as the percentage decrease to the base compensation of all such officers. In the
event of any increase or decrease as permitted by this Section 3.A., the Base Salary for all
purposes shall be the increased or decreased amount in effect from time to time. Executive’s Base
Salary shall be paid at periodic intervals in accordance with the Company’s payroll practices for
salaried employees.

          B. The Company shall deduct and withhold from the compensation and benefits payable to
Executive, including but not limited to Executive’s Base Salary, any and all applicable Federal,
State and local income and employment withholding taxes and any other amounts required to be
deducted or withheld by the Company under applicable statutes, regulations, ordinances or orders
governing or requiring the withholding or deduction of amounts otherwise payable as compensation or
wages to employees. The Company shall also deduct such amounts as may be authorized by Executive
from time to time.

     4. Bonus; Stock Option Grant.

          A. For each full calendar year during the Employment Period, Executive may earn an annual
Performance Bonus of up to ONE HUNDRED THOUSAND dollars ($100,000) (the “Performance Bonus
Target”) based on achievement of Performance Bonus criteria. Said Performance Bonus criteria
shall be determined in good faith by the Board of Directors. For any partial year at the beginning
of the Employment Period, the Performance Bonus Target shall be prorated based on the number of
days in the calendar year during which Executive is employed by the Company divided by three
hundred sixty-five (365). The bonus shall be paid no later than March 15 of the year following the
year for which it is awarded. Executive must be employed by the Company as of December 31 of the
year for which the bonus is awarded in order to earn the bonus.

          B. The Company shall grant to Executive, effective as of the Effective Date, a nonqualified
stock option to purchase TWO HUNDRED THOUSAND (200,000) shares of the Company’s common stock at a
per share exercise price equal to the fair market value (determined based on the closing selling
price per share on the grant date, as such price is reported by the National Association of
Securities Dealers on the Nasdaq Stock Market and published in The Wall Street Journal) of the
Company’s common stock on the grant date. Except as otherwise provided in Section 8.C., such stock
option shall become exercisable for one-third (1/3) of the shares upon Executive’s completion of
one year of service measured from the grant date and shall become exercisable for the balance of
the shares in a series of eight successive three-month equal installments upon Executive’s
completion of each additional three months of service over the twenty-four (24) month period
measured from the first anniversary of the grant date. Such stock option shall have a term of ten
(10) years, shall be granted under the Company’s equity plan and shall be subject to the terms and
conditions of the Company’s equity plan and the notice of grant of stock option and the stock
option agreement for such stock option.

     5. Fringe Benefits.

          A. Executive shall, throughout the Employment Period, be eligible to participate in any and
all group term life insurance plans, group health plans, accidental death and dismemberment plans
and short-term disability programs and other executive perquisites which
are made available to the Company’s executives and for which Executive qualifies under the
terms of such plans, policies or programs.

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          B. Executive shall earn and accrue vacation time during the Employment Period at a rate of
four (4) weeks of vacation per year. Executive shall not be permitted to accrue more than six (6)
weeks vacation. Once this maximum has been reached, all further accruals will cease. Vacation
accruals will recommence after Executive has taken vacation and his accrued hours have dropped
below the accrual maximum. Executive will not earn vacation during any unpaid leaves. If a
recognized holiday falls during Executive’s vacation period, it will not be considered as a
vacation day.

          C. The Company shall reimburse Executive for any necessary and reasonable, out-of-pocket
Relocation Expenses (as defined below) that are actually incurred by Executive. For purposes of
this Section 5.C, “Relocation Expenses” shall mean (i) travel, lodging and meal expenses
for Executive and his spouse and children for house hunting trips or relocation to Executive’s new
principal residence, (ii) expenses for moving the household goods, personal effects and automobiles
of Executive and his spouse and children from Executive’s current principal residence to his new
principal residence, and (iii) brokerage commission expenses incurred by Executive in connection
with the sale of Executive’s current principal residence, provided the expenses described in clause
(i), (ii) or (iii) are directly related to the relocation of Executive’s principal residence in
connection with Executive’s commencement of employment with the Company. The total amount of
Relocation Expenses reimbursed by the Company shall not exceed FIFTY THOUSAND dollars ($50,000),
and such Relocation Expenses shall be reimbursed only if incurred by Executive not later than
October 30, 2008. To the extent any such expense reimbursement is includible in Executive’s gross
income for federal income tax purposes, the Company shall pay Executive an additional cash payment
equal to 67% of the amount of such taxable expense reimbursement. The Company shall pay such
reimbursements and other payments upon presentation of an itemized account and appropriate
supporting documentation in accordance with the Company’s expense reimbursement procedures.
Executive shall return to the Company any excess reimbursement or other payment within a reasonable
period of time.

          D. During the Employment Period, Executive shall be authorized to incur necessary and
reasonable travel, entertainment and other business expenses in connection with his duties
hereunder. The Company shall reimburse Executive for such expenses upon presentation of an
itemized account and appropriate supporting documentation.

          E. Executive and the Company shall enter into an Indemnification Agreement in the form
attached hereto as Exhibit D, which Indemnification Agreement shall be effective as of the
Effective Date.

     6. Restrictive Covenants.

          A. Exclusive Service. During the Employment Period, Executive shall devote
Executive’s full business time and energy solely and exclusively to the performance of Executive’s
duties, except during periods of illness or vacation periods. During the Employment Period,
Executive shall not directly or indirectly provide services to or through any person or

3

 

entity, except the Company, unless otherwise authorized by the Board in writing. However,
Executive may continue to serve during the Employment Period as a non-employee member of the board
of directors of the companies for which he so serves on the effective date of this Agreement (which
are listed on Exhibit A hereto) and may join the board of directors of other companies in
the future with the Board’s prior written consent. Executive shall have the right to perform such
incidental services as are necessary in connection with (i) Executive’s private investments, but
only if Executive is not obligated or required to (and shall not in fact) devote any significant
managerial efforts, and (ii) Executive’s charitable or community activities, or participation in
trade or professional organizations, but only if such incidental services do not materially
interfere with the performance of Executive’s services, or violate Section 6.B.

          B. No Competitive Activities. During the Employment Period, Executive shall not
directly or indirectly own, manage, operate, join, control or participate in the ownership,
management, operation or control of, provide services to, or be employed by or connected in any
manner with, any enterprise which is engaged in the Business; provided, however, that such
restriction shall not apply to any passive investment representing an interest of less than two
percent (2%) of an outstanding class of publicly-traded securities of any corporation or other
enterprise which is not, at the time of such investment, engaged in the Business. For purposes of
this Section 6, the “Business” shall refer to the design and manufacture of dental lasers,
ophthalmologic lasers for Presbyopia, and such other businesses as the Company may expand into
while Executive is employed by the Company, its parents, subsidiaries or affiliates.

          C. Confidential Information. As a condition of Executive’s receipt of the benefits
provided for in this Agreement, Executive will execute the Company’s Confidential Information and
Assignment of Inventions Agreement, a true and correct copy of which is attached to this Agreement
as Exhibit B. Executive’s obligations under this Paragraph 6.C. and Exhibit B shall continue in
effect after the termination of his employment with the Company, whatever the reason or reasons for
such termination, and Executive acknowledges and agrees that the Company shall have the right to
communicate with any future or prospective employer of Executive concerning Executive’s continuing
obligations under this Paragraph 6.C. and Exhibit B.

          D. Non Solicitation of Employees. Executive agrees that during his Employment Period
and for a period of twenty-four (24) months after termination of his employment with the Company,
he shall not, directly or indirectly, through any other individual or entity, solicit any employee
of the Company, to cease his or her employment with the Company, and Executive will not approach
any such employee for any such purpose or knowingly authorize the taking of any such action by any
other individual or entity.

          E. Non Solicitation of Customers. Executive agrees that during his employment by the
Company, and any of its parents, subsidiaries or affiliates and for a period of twenty-four (24)
months after termination of his employment with the Company, Executive shall not, without the prior
written approval of the Company, directly or, with knowledge, indirectly, through or on behalf or
any other individual or entity, solicit, entice or induce any business from any of the Company’s
customers (including actively sought prospective customers) or suppliers/vendors, the identity of
whom, or information concerning, rises to the level of a “trade secret” within the meaning of the
Uniform Trade Secrets Act (“UTSA”).

4

 

          F. Injunctive Relief. Executive acknowledges that monetary damages may not be
sufficient to compensate the Company for any economic loss which may be incurred by reason of his
breach of the foregoing restrictive covenants. Accordingly, in the event of any such breach, the
Company shall, in addition to the termination of this Agreement and any remedies available to the
Company under other provisions of this Agreement and/or at law, be entitled to obtain equitable
relief in the form of an injunction precluding Executive from continuing such breach.

     7. Termination of Employment.

          A. Executive’s employment may be terminated by either the Company or Executive at any time,
for any reason, with or without Cause, upon written notice specifying the Effective Date of
Termination, and without additional compensation, except as otherwise provided in Section 8.
Except as provided in Sections 7.B. and C., the Effective Date of Termination specified in the
written notice may be immediate.

          B. For purposes of this Agreement, termination for “Cause” shall mean the involuntary
termination of the Executive’s employment by the Company for any of the following reasons:

          (i) Executive’s conviction by, or entry of a plea of guilty in, a court of competent
jurisdiction for any felony;

          (ii) A substantial and continual refusal by Executive to perform his duties and
functions hereunder in accordance with the instructions of the Board as embodied in written
resolutions of the Board and communicated in writing to Executive (provided that such
instructions do not require Executive to take any actions that Executive reasonably believe
to be are unlawful after a reasonable inquiry);

          (iii) the willful and material breach of this Agreement by Executive which, if curable,
Executive fails to cure within thirty (30) business days following written notice from the
Company;

          (iv) Executive’s conviction by, or entry of a plea of guilty a nolo contendere, in a
court of competent jurisdiction, for any act of fraud, misappropriation or embezzlement in
connection with his employment by the Company;

          (v) Executive is unable to perform the essential functions of his job for ninety or
more consecutive days in any 12 month period; provided that such inability to perform is not
due to the Executive’s status as disabled under any short or long term disability provisions
of the Company’s Employee Benefit Plans; or

          (vi) Executive’s death.

     An involuntary termination of Executive’s employment by the Company in any other circumstances
or for any other reason will be a termination “Without Cause.”

5

 

          C. For purposes of this Agreement, Executive’s resignation for “Good Reason” shall
mean the resignation of employment by Executive following the occurrence of:

               (i) a material diminution in Executive’s Base Salary;

               (ii) a material diminution in Executive’s authority, duties or responsibilities (other
than a temporary suspension of authority, duties or responsibilities due to Executive’s
illness or disability, or an investigation of misconduct), or the assignment to Executive of
any duties materially inconsistent with the Executive’s position, authority, duties or
responsibilities without the consent of Executive;

               (iii) a material change in the geographic location of Executive’s regular office
location (for purposes of this Section 7.C(iii), a relocation of Executive’s regular office
by more than fifty (50) miles shall be deemed to be a material change in the geographic
location); or

               (iv) The Company’s material breach of this Agreement.

In order for Executive to resign for Good Reason, Executive must provide advance written notice of
such resignation to the Company within sixty (60) days following the initial existence of the
action or event giving rise to Good Reason. The notice must specifying an Effective Date of
Termination that is not less than thirty (30) days, nor more than forty-five (45) days, after the
date of the written notice, and Executive agrees that should the Company remedy the basis for such
resignation prior to the Effective Date of Termination specified in the written notice, then
Executive may not resign for Good Reason. The Company may relieve Executive of some or all of his
duties, responsibilities and authority during any notice period, and such relief shall not serve as
a basis for Executive to claim “Good Reason” under Section 7.C.(ii), provided, that the Company
reinstates such duties, responsibilities and authority not later the last of such notice period.

          D. The “Effective Date of Termination” shall be: (i) in the case of termination due
to death, the date of Executive’s death, or (ii) in the case of any other termination, the date of
Executive’s separation from service, within the meaning of Section 409A(a)(2)(A)(i) of the Internal
Revenue Code of 1986, as amended (the “Code”), and the Treasury regulations thereunder,
from the Company and its subsidiaries or affiliates (the “Separation from Service”)
specified in the written notice required by this Section.

          E. On the Effective Date of Termination of Executive’s employment for any reason during the
Employment Period, Executive shall be paid all Base Salary earned through the end of the Employment
Period, any unpaid business expenses, and any unused vacation earned through the Effective Date of
Termination. Unless Executive is entitled to severance benefits under Section 8, he shall not be
entitled to any compensation or benefits following the Effective Date of Termination, except as
required by law or as provided under a retirement or welfare benefit plan of the Company.

          F. Executive shall resign from Executive’s position as the Chief Financial Officer of the
Company, and shall resign from all other positions with the Company or any of its subsidiaries,
effective as of the Effective Date of Termination.

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PART TWO — SEVERANCE BENEFITS

     8. Benefit Entitlement.

          A. Executive shall be entitled to receive the severance benefits specified in Section 8.B. or
Section 8.C., as the case may be, in the event that: (i) the Company terminates Executive’s
employment Without Cause, or (ii) Executive resigns for Good Reason (providing the notice and
allowing the Company to cure as provided in Section 7.C.). Such severance benefits shall be
conditioned upon Executive properly executing on or after the Effective Date of Termination, and
not revoking or attempting to revoke within the permitted timeframe, a general release of claims
against the Company, its Board, its affiliates, and their employees and agents substantially in the
form of Exhibit C or, in the event of a change in the law that would limit the effect of the
release attached as Exhibit C, a general release that would have the same scope and effect as the
release attached as Exhibit C (such release, the “Release”) and the Release becoming
irrevocable within fifty-two (52) days following the Effective Date of Termination. Executive
shall not be entitled to receive the severance benefits specified in Section 8 in the event
Executive fails to timely execute the Release or Executive timely revokes the Release.

     All severance payments made to Executive pursuant to Section 8 shall be subject to all
applicable withholding requirements. In no event shall Executive be entitled to severance benefits
under both Sections 8.B and 8.C and under no circumstances shall any severance payments or benefits
be payable if Executive’s employment is terminated for Cause or Executive resigns for other than
Good Reason (as such terms are defined in Sections 7.B. and C., respectively). The severance
benefits shall be paid to Executive not later than the last day of Executive’s second taxable year
following Executive’s taxable year in which the Effective Date of Termination occurs.

          B. Subject to Section 8.C., in the event Executive’s employment terminates, and the Release
becomes irrevocable, under the conditions described in Section 8.A, Executive shall be entitled to
severance benefits of:

               (i) One year of Executive’s annual Base Salary in effect under Section 3.A as of the
Effective Date of Termination, payable in twenty-four (24) equal semi-monthly installments,
during the twelve (12) months commencing on the first day of the calendar month next
following sixty (60) days after the Effective Date of Termination, coinciding with the
Company’s regular payroll cycle; and

               (ii) Company paid COBRA premiums for Executive (and his eligible dependents) under the
Company’s medical and dental benefit plans, as in effect from time to time, for the twelve
(12) month period following the Effective Date of Termination. The benefits under such
plans shall be provided through insurance maintained by the Company.

7

 

          C. In the event Executive’s employment terminates, and the Release becomes irrevocable, under
the conditions described in Section 8.A, and the Effective Date of Termination is during the twelve
(12) months following a Change of Control, Executive shall be entitled to
the following severance benefits (which shall be in lieu of the severance benefit under
Section 8.B.):

               (i) Executive’s nonqualified stock option granted pursuant to Section 4.B. shall become
fully vested and exercisable on the first business day that is at least sixty (60) days
after the Effective Date of Termination;

               (ii) One year of Executive’s annual Base Salary in effect under Section 3.A as of the
Effective Date of Termination, payable in a lump sum in cash. The Company shall pay such
lump sum payment on the first business day that is at least sixty (60) days after the
Effective Date of Termination; and

               (iii) Company paid COBRA premiums for Executive (and his eligible dependents) under the
Company’s medical and dental benefit plans, as in effect from time to time, for the twelve
(12) month period following the Effective Date of Termination. The benefits under such
plans shall be provided through insurance maintained by the Company.

For purposes of the this Agreement, a “Change of Control” shall mean the occurrence of any
of the following events following the Effective Date: (i) an acquisition of any voting securities
of the Company by any “person” (as the term “person” is used for purposes of Section 13(d) or
Section 14(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”))
immediately after which such person has “beneficial ownership” (within the meaning of Rule 13d-3
promulgated under the 1934 Act) of 50% or more of the combined voting power of the Company’s then
outstanding voting securities; or (ii) the consummation of: (x) a merger, consolidation, share
exchange or reorganization involving the Company, unless the stockholders of the Company,
immediately before such merger, consolidation, share exchange or reorganization, own, directly or
indirectly immediately following such merger, consolidation, share exchange or reorganization, at
least 50% of the combined voting power of the outstanding voting securities of the corporation that
is the successor in such merger, consolidation, share exchange or reorganization in substantially
the same proportion as their ownership of the voting securities immediately before such merger,
consolidation, share exchange or reorganization; (y) a complete liquidation or dissolution of the
Company; or (z) the sale or other disposition of all or substantially all of the assets of the
Company; or (iii) the majority of members of the Board are replaced during any twelve (12) month
period by directors whose appointment or election is not endorsed by a majority of the Board prior
to the date of such appointment or election.

          D. Parachute Payment. If any payment or benefit the Executive would receive pursuant
to a Change of Control or otherwise (“Payment”) would (i) constitute a “parachute payment”
within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the
excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall
be reduced to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of
the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y)
the largest portion, up to and including the total, of the Payment, whichever amount, after taking
into account all applicable federal, state and local employment taxes, income taxes, and the Excise
Tax (all computed at the highest applicable marginal rate), results in the Executive’s receipt, on
an after-tax basis, of the greater amount of the Payment

8

 

notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If
a reduction in payments or benefits constituting “parachute payments” is necessary so that the
Payment equals the Reduced Amount, reduction shall occur in the following order unless the
Executive elects in writing a different order (provided, however, that such election shall be
subject to Company approval if made on or after the effective date of the event that triggers the
Payment): (1) reduction of cash payments, (2) cancellation of accelerated vesting of equity
awards, and (3) reduction of employee benefits. In the event that acceleration of vesting of
equity award compensation is to be reduced, such acceleration of vesting shall be cancelled in the
reverse order of the date of grant of the Executive’s equity awards unless the Executive elects in
writing a different order for cancellation.

     The accounting firm engaged by the Company for general audit purposes as of the day prior to
the effective date of the Change of Control shall perform the foregoing calculations. If the
accounting firm so engaged by the Company is serving as accountant or auditor for the individual,
entity or group effecting the Change of Control, or is unwilling to perform this function, then the
Company shall appoint a nationally recognized accounting firm to make the determinations required
hereunder. The Company shall bear all expenses with respect to the determinations by such
accounting or law firm required to be made hereunder.

     The accounting firm engaged to make the determinations hereunder shall provide its
calculations, together with detailed supporting documentation, to the Executive and the Company
within fifteen (15) calendar days after the date on which the Executive’s right to a Payment is
triggered (if requested at that time by the Executive or the Company) or such other time as
requested by the Executive or the Company. If the accounting or law firm determines that no Excise
Tax is payable with respect to a Payment, either before or after the application of the Reduced
Amount, it shall furnish the Executive and the Company with an opinion reasonably acceptable to the
Executive that no Excise Tax will be imposed with respect to such Payment. Any good faith
determinations of the accounting or law firm made hereunder shall be final, binding and conclusive
upon the Executive and the Company.

          E. The severance benefits provided Executive under this Paragraph 8 are the only severance
benefits to which Executive is entitled upon the termination of his employment with the Company,
and no other benefits shall be provided to Executive by the Company pursuant to any other severance
plan or program of the Company, except as required by applicable law. Executive acknowledges and
agrees that but for his execution of this Agreement, he would not be entitled to the severance
benefits provided under this Paragraph 8.

          F. Notwithstanding the foregoing, if the Executive is a specified employee, as defined under
Section 409A(a)(2)(B)(i) of the Code, on the date of Executive’s Separation from Service, to the
extent that the payments or benefits under this Section 8 are subject to Section 409A of the Code
and the delayed payment or distribution of all or any portion of such amounts to which Executive is
entitled under Section 8 is required in order to avoid a prohibited distribution under Section
409A(a)(2)(B)(i) of the Code, then such payment or portion thereof shall be paid or distributed to
Executive during the thirty (30) day period commencing on the earlier of (a) the expiration of the
six-month period commencing on the date of Executive’s Separation from Service or (b) the date of
Executive’s death.

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PART THREE — MISCELLANEOUS PROVISIONS

     9. Successors and Assigns. The provisions of this Agreement shall inure to the
benefit of, and shall be binding upon, the Company, its successors and assigns. This Agreement
shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributes, devisees and legatees.

     10. Creditor Status. The benefits to which Executive may become entitled under Part
Two of this Agreement shall be paid, when due, from the Company’s general assets, and no trust
fund, escrow arrangement or other segregated account shall be established as a funding vehicle for
such payments. Executive is not waiving any rights he may have to collect any monies due to
Executive under this Agreement in the same manner as any other employee of the Company would have.

     11. Notices.

          A. Any and all notices, demands or other communications required or desired to be given by any
party shall be in writing and shall be validly given or made to another party if served either
personally or if deposited in the United States mail, certified or registered, postage prepaid,
return receipt requested. If such notice, demand or other communication shall be served personally,
service shall be conclusively deemed made at the time of such personal service. If such notice,
demand or other communication is given by overnight delivery, it shall be conclusively deemed given
the day after it was sent addressed to the party to whom such notice, demand or other communication
is to be given. If such notice, demand or other communication is given by mail, it shall be
conclusively deemed given two (2) days after it was deposited in the United States mail addressed
to the party to whom such notice, demand or other communication is to be given. The address for
notice for each of the parties shall be as follows:

To the Company:

Biolase Technology, Inc.

Attn: Chairman of the Board of Directors

4 Cromwell

Irvine, California 92618

To Executive:

To the address listed as Executive’s principal residence in the Company’s human
resources records and to his principal place of employment with the Company.

          B. Both parties agree that if notice is by mail, then in good faith, the party giving notice
will attempt to contact the other by their last known phone number and email address, to ensure
notice was received.

10

 

          C. Any party may change its address for the purpose of receiving notices, demands and other
communications by a written notice given in the described manner to the other party.

     12. Governing Document. Except as otherwise provided or referenced herein, this
Agreement constitutes the entire agreement and understanding of the Company and Executive with
respect to the terms and conditions of Executive’s employment with the Company and the payment of
severance benefits and supersedes all prior and contemporaneous written or verbal agreements and
understandings between Executive and the Company relating to such subject matter. This Agreement
may only be amended by written instrument signed by Executive and an officer of the Company
specifically authorized by the Board for such purpose. Any and all prior agreements, understandings
or representations relating to the Executive’s employment with the Company are terminated and
cancelled in their entirety and are of no further force or effect.

     13. Governing Law. The provisions of this Agreement will be construed and interpreted
under the laws of the State of California applicable to agreements executed and to be wholly
performed within the State of California. If any provision of this Agreement as applied to any
party or to any circumstance should be adjudged by a court of competent jurisdiction to be void or
unenforceable for any reason, the invalidity of that provision shall in no way affect (to the
maximum extent permissible by law) the application of such provision under circumstances different
from those adjudicated by the court, the application of any other provision of this Agreement, or
the enforceability or invalidity of this Agreement as a whole. Should any provision of this
Agreement become or be deemed invalid, illegal or unenforceable in any jurisdiction by reason of
the scope, extent or duration of its coverage, then such provision shall be deemed amended to the
extent necessary to conform to applicable law so as to be valid and enforceable or, if such
provision cannot be so amended without materially altering the intention of the parties, then such
provision will be stricken and the remainder of this Agreement shall continue in full force and
effect.

     14. Arbitration. Any controversy, claim or dispute between the parties directly or
indirectly concerning this Agreement, or the breach or subject matter hereof, including, but not
limited to, the granting, terms, vesting or exercisability of the Option Shares, shall be finally
settled by arbitration held in Orange County, California. The arbitration will be held under the
auspices of either the American Arbitration Association (“AAA”) or Judicial Arbitration & Mediation
Services, Inc. (“J•A•M•S”), with the designation of the sponsoring organization to be made by the
party who did not initiate the claim. The arbitration shall be in accordance with the AAA’s
then-current employment arbitration procedures (if AAA is designated) or the then-current J•A•M•S
employment arbitration rules (if J•A•M•S is designated). The arbitrator shall be either a retired
judge, or an attorney licensed to practice law in the state in which the arbitration is convened
(the “Arbitrator”). The Arbitrator shall have jurisdiction to hear and rule on pre-hearing disputes
and is authorized to hold pre-hearing conferences by telephone or in person, as the Arbitrator
deems necessary. The Arbitrator shall have the authority to entertain a motion to dismiss,
demurrer, and/or a motion for summary judgment by any party and shall apply the standards governing
such motions under the federal rules of civil procedure applicable in the location of the
arbitration. The Arbitrator shall render a written award and opinion which reveals, however
briefly, the essential findings and conclusions on which the award is based. The arbitration shall
be final and binding upon the parties, except as otherwise provided for by the

11

 

law applicable to review of arbitration decisions/awards. Either party may bring an action in
any court of competent jurisdiction to compel arbitration under this Agreement and/or to enforce an
arbitration award. The Company will pay the Arbitrator’s fees and any other fees, costs or expenses
unique to arbitration, including the filing fee, the fees and costs of the Arbitrator, and rental
of a room to hold the arbitration hearing. However, if Executive is the party initiating the claim,
Executive shall be responsible for contributing an amount equal to the filing fee to initiate a
claim in the court of general jurisdiction in the state which Executive is (or was last) employed
by the Company. The Arbitrator may award reasonable legal fees and/or costs to the prevailing
party in any dispute subject to arbitration under this Agreement. Notwithstanding the foregoing
either party may seek temporary or preliminary injunction relief in any court of competent
jurisdiction if such relief is unavailable or cannot be timely obtained through Arbitration.

     15. Remedies. All rights and remedies provided pursuant to this Agreement or by law
shall be cumulative, and no such right or remedy shall be exclusive of any other. A party may
pursue any one or more rights or remedies provided by this Agreement or may seek damages or
specific performance in the event of another party’s breach or may pursue any other remedy by law
or equity, whether or not stated in this Agreement.

     16. Counterparts. This Agreement may be executed in more than one counterpart, each
of which shall be deemed an original, but all of which together shall constitute but one and the
same instrument.

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

	 	 	 	 	 
	 	BIOLASE TECHNOLOGY, INC.

 	 
	 	  	 	 
	 	By:  	 	 
	 	 	Title:  	 	 
	 	 	 	 
	 
	 	DAVID M. MULDER

 	 
	 	  	 	 

12

 

EXHIBIT A TO

DAVID M. MULDER EMPLOYMENT AGREEMENT

DATED AS OF APRIL 29, 2008

LIST OF APPROVED DIRECTORSHIPS

13

 

EXHIBIT B TO

DAVID M. MULDER EMPLOYMENT AGREEMENT

DATED AS OF APRIL 29, 2008

BIOLASE TECHNOLOGY, INC.

PROPRIETARY INFORMATION AGREEMENT

As an employee of BioLase Technology, Inc., its subsidiary or its affiliate (together, the
“Company”), and in consideration of the compensation now and hereafter paid to me, I agree to the
following:

1) Maintaining Confidential Information

     a) Company Information. I agree at all times during the term of my employment and
thereafter, except for the benefit of the Company, to hold in the strictest confidence, and not to
use or to disclose to any person, firm or corporation without written authorization of the Board of
Directors of the Company, any trade secrets, confidential knowledge, data or other proprietary
information relating to products, processes, know-how, designs, formulas, developmental or
experimental work, computer programs, data bases, other original works of authorship, customer
lists, business plans, financial information or other subject matter pertaining to any Business of
the Company or any of its clients, consultants or licensees.

     b) Former Employer Information. I agree that I will not, during my employment with
the Company, improperly use or disclose any proprietary information or trade secrets of my former
or concurrent employers or companies, if any, and that, to my knowledge, I will not bring onto the
premises of the Company any unpublished document or any property belonging to my former or
concurrent employers or companies, if any, unless consented to in writing by said employers or
companies.

     c) Third Party Information. I recognize that the Company has received and in the
future will receive from third parties their confidential or proprietary information subject to a
duty on the Company’s part to maintain the confidentiality of such information and to use it only
for certain limited purposes. I agree that I owe the Company and such third parties, during the
term of my employment and thereafter, a duty to hold all such confidential and proprietary
information in the strictest confidence and not to disclose it to any person, firm or corporation
(except as necessary in carrying out my work for the Company consistent with the Company’s
agreement with such third party) or to use it for the Company’s benefit of anyone other than for
the Company or such third party (consistent with Company’s agreement with such third party) without
the express written authorization of the Board of Directors of Biolase Technology, Inc.

14

 

2) Retaining and Assigning Inventions and Original Works

     a) Inventions and Original Works Assigned to the Company. I agree that I will
promptly make full written disclosure to the Company, will hold in trust for the sole right and
benefit of the Company, and will and hereby do assign to the Company all my right, title, and
interest in and to any and all inventions, original works of authorship, developments, improvements
or trade secrets which I may solely or jointly conceive or develop or reduce to practice, or cause
to be conceived or developed or reduced to practice, during the period of time I am in the employ
of the Company related to the Business of the Company. For purposes of this Agreement, the
“Business of the Company” is defined as the design and manufacture of dental lasers, ophthalmic
lasers for Presbyopia, and such other expansions related to the Business of the Company or entirely
new markets the Company may enter during the term of my employment. I recognize, however, that
Section 2870 of the California Labor Code (as set forth in Exhibit 1 attached hereto) exempts from
assignment under this provision any invention as to which I can prove the following:

	 	i)	 	It was developed entirely on my own time; and
	 
	 	ii)	 	No equipment, supplies, facilities or trade secrets of the Company were used in
its development; and
	 
	 	iii)	 	It did not relate, at the time of its conception or its reduction to practice,
to the Business of the Company or to the Company’s actual or demonstrably anticipated
research and development; and
	 
	 	iv)	 	It did not result from any work performed by me for the Company.

          I acknowledge that all original works of authorship which are made by me (solely or jointly
with others) within the scope of my employments and which are protectable by copyright are “works
made for hire,” as that term is defined in the United States Copyright Act (17 USCA, Section 101).

     b) Inventions Assigned to the United States. I agree to assign to the United States
government all my right, title, and interest in and to any and all inventions, original works of
authorship, developments, improvements or trade secrets whenever such full title is required to be
in the United States by a contract between the Company and the United States or any of its
agencies.

     c) Obtaining Letters Patent, Copyrights and Mask Work Rights. I agree that my
obligation to assist the Company to obtain United States or foreign letters patent, copyrights, or
mask work rights covering inventions, works of authorship, and mask works, respectively, assigned
hereunder to the Company shall continue beyond the termination of my employment, but the Company
shall compensate me at a reasonable rate for time actually spent by me at the Company’s request on
such assistance. If the Company is unable because of my mental or physical incapacity or for any
other reason to secure my signature to apply for or to pursue any application for any United States
or foreign letters patent, copyright, or mask rights covering inventions or other rights assigned
to the Company as above, then I hereby irrevocably designate and appoint the Company and its duly
authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and
stead to execute and file any such applications and to do all other lawfully permitted acts to
further the prosecution and issuance of letters patent, copyrights,

15

 

and mask work rights with the same legal force and effect as if executed by me. I hereby waive
and quitclaim to the Company any and all claims, of any nature whatsoever, which I now or may
hereafter have for infringement of any patents, copyrights, or mask work rights resulting from such
application assigned hereunder to the Company.

     d) Exception to Assignments. I understand that the provisions of this Agreements
requiring assignment to the Company do not apply to any invention which qualifies fully under the
provisions of Section 2870 of the California Labor Code, a copy of which is attached hereto as
Exhibit 1. I understand that the Company will keep in confidence and will not disclose to third
parties without my consent any confidential information disclosed in writing to the Company
relating to inventions that qualify fully under the provisions of Section 2870 of the California
Labor Code.

3) Returning Company Documents. I agree that to my best efforts, at the time of leaving
the employ of the Company, I will deliver to the Company (and will not keep in my possession or
deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists,
correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other
documents or property, or reproductions of any aforementioned items belonging to the Company, its
successors or assigns, which constitutes a trade secret(s) and/or proprietary information of the
Company. In the event of the termination of my employment, I agree to sign and deliver the
“Termination Certification” attached hereto as Exhibit 2.

4) Representations. I agree to execute any proper oath or verify any proper document
required to carry out the terms of this Agreement. I represent that my performance of all the terms
of this Agreement will not breach any agreement to keep in confidence proprietary information
acquired by me in confidence or in trust prior to my employment by the Company. I have not entered
into, and I agree I will not enter into, any oral or written agreement in conflict herewith.

5) General Provisions

     a) Governing Law. This Agreement will be governed by the laws of the State of
California.

     b) Entire Agreement. This Agreement sets forth the entire agreement and understanding
between the Company and me relating to the subject matter herein and merges all prior discussions
between us. No modification of or amendment to this Agreement, nor any waiver of any rights under
this agreement, will be effective unless in writing signed by the party to be charged. Any
subsequent change or changes in my duties, salary or compensation will not affect the validity or
scope of this Agreement.

     c) Severability. If one or more of the provisions in this Agreement are deemed void
by law, then the remaining provisions will continue in full force and effect.

     d) Successors and Assigns. This Agreement will be binding upon my heirs, executors,
administrators and other legal representatives and will be for the benefit of the Company, its
successors, its assigns, and any third parties for which the company has developed proprietary
technology.

16

 

     e) At-Will Employment. I acknowledge that this agreement is not intended and does not
constitute a contract between me and the Company limiting the rights of either of us to terminate
my employment by the Company at any time for any reason with or without cause.

     f) Notification to New Employer. In the event that I leave the employ of the Company,
I hereby grant consent to notification by the Company to my new employer about my rights and
obligations under this agreement.

Dated as of April 29, 2008

	 	 	 
	 

	 	 
	 

	 	
Signature
	 
	 	 
	 

	 	 
	 

	 	Name of Employee (typed or printed)
	 
	 	 
	 
	 	 
	Witness
	 	 

17

 

EXHIBIT 1

TO PROPRIETARY INFORMATION AGREEMENT

CALIFORNIA LABOR CODE SECTION 2870

EMPLOYMENT AGREEMENTS; ASSIGNMENT OF RIGHTS

     “(a) Any provision in an employment agreement which provides that an employee shall assign, or
offer to assign, any of his or her rights in an invention to his or her employer shall not apply to
an invention that the employee developed entirely on his or her own time without using the
employer’s equipment, supplies, facilities, or trade secret information except for those inventions
that either:

	 	1)	 	Relate at the time of conception or reduction to practice of the invention to
the employer’s business, or actual demonstrably anticipated research or development of
the employee.
	 
	 	2)	 	Result from any work performed by the employee for the employer.

     (b) To the extent a provision in an employment agreement purports to require an employee to
assign an invention otherwise excluded from being required to be assigned under subdivision (a),
the provision is against the public policy of this state and is unenforceable.”

18

 

EXHIBIT 2

TO PROPRIETARY INFORMATION AGREEMENT

BIOLASE TECHNOLOGY, INC.

TERMINATION CERTIFICATION

This is to certify that based on a reasonably diligent search by me, and to the best of my
knowledge, I do not have in my possession, nor have I failed to return, any devices, records, data,
notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches,
materials, equipment, other documents or property, or reproductions of any aforementioned items
which is a trade secret and/or proprietary information belonging to BioLase Technology, Inc., its
subsidiaries, affiliates, successors or assigns (together, the “Company”).

I further certify that, to the best of my knowledge, I have complied with all the terms of the
Company’s Employee Proprietary Information Agreement signed by me.

I further agree that, in compliance with the Employee Proprietary Information Agreement, I will
preserve as confidential all trade secrets, confidential knowledge, data or other proprietary
information relating to products, processes, know-how, designs, formulas, developmental or
experimental work, computer programs, data bases, other original works of authorship, customer
lists, business plans, financial information or other subject matter pertaining to any Business of
the Company or any of its clients, consultants or licensees which is proprietary and/or
confidential information to the Company.

Date:                                         

	 	 	 	 	 
	 	 	 
	 	 	 
	 	(Employee’s Signature) 	 
	 
	 	 	 
	 	(Type/Print Employee’s Name) 	 
	 	 	 

19

 

	 	 	 	 	 

EXHIBIT C TO

DAVID M. MULDER EMPLOYMENT AGREEMENT

DATED AS OF APRIL 29, 2008

GENERAL RELEASE AND WAIVER OF CLAIMS

     In consideration of the payments and other benefits set forth in the Employment Agreement
dated April 29, 2008 (the “Agreement”), to which this form shall be deemed to be attached, David M.
Mulder (“Executive”) hereby agrees to the following general release and waiver of claims (“General
Release”).

     In exchange for the consideration provided to Executive by the Agreement that Executive is not
otherwise entitled to receive, Executive hereby generally and completely releases Biolase
Technology, Inc. (the “Company”) and its directors, officers, employees, shareholders, partners,
agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates,
and assigns from any and all claims, liabilities and obligations, both known and unknown, that
arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my
signing this General Release. This general release includes, but is not limited to: (1) all claims
arising out of or in any way related to Executive’s employment with the Company or the termination
of that employment; (2) all claims related to Executive’s compensation or benefits from the
Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance
pay, fringe benefits, stock, or any other ownership interests in the Company; (3) all claims for
breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair
dealing; (4) all tort claims, including claims for fraud, defamation, emotional distress, and
discharge in violation of public policy; and (5) all federal, state, and local statutory claims,
including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims
arising under Title VII of the 1964 Civil Rights Act, as amended, the Age Discrimination in
Employment Act, the California Fair Employment and Housing Act, the Equal Pay Act of 1963, as
amended, the provisions of the California Labor Code, the Americans with Disabilities Act, the Fair
Labor Standards Act, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the
Sarbanes-Oxley Act of 2002, and any other state, federal, or local laws and regulations relating to
employment and/or employment discrimination. The only exceptions are claims Executive may have for
unemployment compensation and worker’s compensation, Base Salary (through the date of termination),
outstanding business expenses, unused vacation earned through the date of termination of Executive,
claims to accrued and vested benefits under the Company’s employee benefit plans, and claims to the
severance benefits which are the consideration for this General Release.

     Executive expressly waives and relinquishes any and all rights and benefits Executive now has
or may have in the future under the terms of Section 1542 of the Civil Code of the State of
California, which sections reads in full as follows:

A general release does not extend to claims which the creditor does not know or suspect to
exist in his or her favor at the time of executing the release, which if
known by him or her must have materially affected his or her settlement with the debtor.

20

 

Notwithstanding said Code Section, Executive knowingly and voluntarily waives the provisions of
Section 1542 as well as any other statutory or common law provisions of similar effect and
acknowledges and agrees that this waiver is an essential part of this Agreement.

     Executive acknowledges that, among other rights, Executive is waiving and releasing any rights
Executive may have under ADEA, that this General Release is knowing and voluntary, and that the
consideration given for this General Release is in addition to anything of value to which Executive
was already entitled as an executive of the Company. Executive further acknowledge that Executive
has been advised, as required by the Older Workers Benefit Protection Act, that: (a) the General
Release granted herein does not relate to claims under the ADEA which may arise after this General
Release is executed; (b) Executive has the right to consult with an attorney prior to executing
this General Release (although Executive may choose voluntarily not to do so); and (c) Executive
has twenty-one (21) days from the date of termination of Executive’s employment with the Company in
which to consider this General Release (although Executive may choose voluntarily to execute this
General Release earlier, in which case he voluntarily waives the remainder of the twenty-one (21)
day period); (d) Executive has seven (7) days following the execution of this General Release to
revoke his consent to this General Release; and (e) this General Release shall not be effective
until the seven (7) day revocation period has expired.

     Executive acknowledges his continuing obligations under the Proprietary Information and
Inventions Agreement and the non-solicitation provisions set forth in Section 6 of the Agreement.
Nothing contained in this General Release shall be deemed to modify, amend or supersede the
obligations set forth in that agreement.

     By signing this General Release, Executive hereby represents that he is not aware of any
affirmative conduct or the failure to act on the part of the Company, its officers, directors,
and/or employees concerning the Company’s business practices, its reporting obligations, its
customers and/or prospective customers, its products, and/or any other any other aspect of the
Company’s business, which Executive has any reason to believe rises to the level of unfair,
improper and/or unlawful conduct pursuant to any state or federal law, rule, regulation or order,
including, but not limited to, any rule, regulation or decision promulgated or enforced by the
Securities and Exchange Commission, or which has been promulgated or enforced by any other state or
federal office or administrative body pursuant to the Sarbanes-Oxley Act of 2002.

     With the exception of the terms set forth in the Proprietary Information Agreement and the
non-solicitation provisions set forth in Section 6 of the Agreement, this General Release
constitutes the complete, final and exclusive embodiment of the entire agreement between the
Company and Executive with regard to the subject matter hereof. Executive is not relying on any
promise or representation by the Company that is not expressly stated herein and the Company is not
relying on any promise or representation by Executive that is not expressly stated herein. This
General Release may only be modified by a writing signed by both Executive and a duly authorized
officer of the Company.

21

 

     The Company and Executive agree that for a period of ten (10) years after Executive’s
employment with the Company ceases, they will not, in any communication with any person or entity,
including any actual or potential customer, client, investor, vendor, or business partner of the
Company, or any third party media outlet, make any derogatory or disparaging or critical negative
statements — orally, written or otherwise — against the other, or against the Executive’s estate
or affiliates, any of the Company’s directors, officers or employees. The parties acknowledge and
agree that the obligation on the part of the Company not to make any derogatory statements as set
forth in this paragraph shall only apply to the Company’s officers and directors.

     The parties agree that this General Release does not in any way compromise or lessen
Executive’s rights to be indemnified by the Company pursuant to that certain Indemnification
Agreement dated April 29, 2008, pursuant to the Company’s by-laws or certificate of incorporation,
or otherwise be covered under any applicable insurance policies that Executive would otherwise be
entitled to receive and/or be covered by.

     The parties agree that in no way does this General Release preclude Executive from enforcing
his ownership rights pertaining to any stock or stock options which may have been purchased by
Executive or granted to Executive by the Company pursuant to a written stock option grant and/or as
memorialized in a written Board Resolution (and as reported periodically in the Company’s proxy
statements).

	 	 	 	 	 
	 	BIOLASE TECHNOLOGY, INC.

 	 
	 	By:  	 	 
	 	Title: 	 	 
	 	Dated: 	 	 
	 	Dated: 	 	 
	 	 	 	 
	 	 	 	 
	 	DAVID M. MULDER 	 

22

 

	 	 	 	 	 

EXHIBIT D TO

DAVID M. MULDER EMPLOYMENT AGREEMENT

DATED AS OF APRIL 29, 2008

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (this “Agreement”) is entered into as of April 29, 2008
(the “Effective Date”), by and between BIOLASE TECHNOLOGY, INC., a Delaware corporation
(the “Company”), and David M. Mulder (“Indemnitee”).

RECITALS

     A. Indemnitee is either a member of the board of directors of the Company (the “Board of
Directors”) or an officer of the Company, or both, and in such capacity or capacities, or
otherwise as an Agent (as hereinafter defined) of the Company, is performing a valuable service for
the Company.

     B. Indemnitee is willing to serve, continue to serve and to take on additional service for or
on behalf of the Company on the condition that he or she be indemnified as herein provided.

     C. It is intended that Indemnitee shall be paid promptly by the Company all amounts necessary
to effectuate in full the indemnity provided herein.

     NOW, THEREFORE, in consideration of the premises and the covenants in this Agreement, and of
Indemnitee continuing to serve the Company as an Agent and intending to be legally bound hereby,
the parties hereto agree as follows:

          1. Services by Indemnitee. Indemnitee agrees to serve as an Agent of the Company.
Indemnitee may from time to time also perform other services at the request or for the convenience
of, or otherwise benefiting, the Company. Indemnitee may at any time and for any reason resign or
be removed from such position (subject to any other contractual obligation or other obligation
imposed by operation of law), in which event the Company shall have no obligation under this
Agreement to continue Indemnitee in any such position.

          2. Indemnification. Subject to the limitations set forth herein and in Section 7
hereof, the Company hereby agrees to indemnify Indemnitee as follows:

          The Company shall, with respect to any Proceeding (as hereinafter defined) associated with
Indemnitee’s being an Agent of the Company, indemnify Indemnitee to the fullest extent permitted by
applicable law and the Certificate of Incorporation of the Company in effect on the date hereof or
as such law or Certificate of Incorporation may from time to time be amended (but, in the case of
any such amendment, only to the extent such amendment permits the Company to provide broader
indemnification rights than the law or Certificate of Incorporation permitted the Company to
provide before such amendment). The right to

23

 

indemnification conferred herein and in the Certificate of Incorporation shall be presumed to
have been relied upon by Indemnitee in serving or continuing to serve the Company as an Agent and
shall be enforceable as a contract right. Without in any way diminishing the scope of the
indemnification provided by this Section 2, the Company will indemnify Indemnitee to the full
extent permitted by law if and wherever Indemnitee is or was a party or is threatened to be made a
party to any Proceeding, including any Proceeding brought by or in the right of the Company, by
reason of the fact that Indemnitee is or was an Agent or by reason of anything done or not done by
Indemnitee in such capacity, against Expenses (as hereinafter defined) and Liabilities (as
hereinafter defined) actually and reasonably incurred by Indemnitee or on his or her behalf in
connection with the investigation, defense, settlement or appeal of such Proceeding. In addition
to, and not as a limitation of, the foregoing, the rights of indemnification of Indemnitee provided
under this Agreement shall include those rights set forth in Sections 3 and 9 below.
Notwithstanding the foregoing, the Company shall be required to indemnify Indemnitee in connection
with a Proceeding commenced by Indemnitee (other than a Proceeding commenced by Indemnitee to
enforce Indemnitee’s rights under this Agreement) only if the commencement of such Proceeding was
authorized by the Board of Directors.

          3. Advancement of Expenses. All reasonable Expenses incurred by or on behalf of
Indemnitee (including costs of enforcement of this Agreement) shall be advanced from time to time
by the Company to Indemnitee within thirty (30) days after the receipt by the Company of a written
request for an advance of Expenses, whether prior to or after final disposition of a Proceeding
(except to the extent that there has been a Final Adverse Determination (as hereinafter defined)
that Indemnitee is not entitled to be indemnified for such Expenses), including, without
limitation, any Proceeding brought by or in the right of the Company. The written request for an
advancement of any and all Expenses under this paragraph shall contain reasonable detail of the
Expenses incurred by Indemnitee. In the event that such written request shall be accompanied by an
affidavit of counsel to Indemnitee to the effect that such counsel has reviewed such Expenses and
that such Expenses are reasonable in such counsel’s view, then such expenses shall be deemed
reasonable in the absence of clear and convincing evidence to the contrary. By execution of this
Agreement, Indemnitee shall be deemed to have made whatever undertaking as may be required by law
at the time of any advancement of Expenses with respect to repayment to the Company of such
Expenses. In the event that the Company shall breach its obligation to advance Expenses under this
Section 3, the parties hereto agree that Indemnitee’s remedies available at law would not be
adequate and that Indemnitee would be entitled to specific performance.

          4. Surety Bond.

               (a) In order to secure the obligations of the Company to indemnify and advance Expenses to
Indemnitee pursuant to this Agreement, the Company shall obtain at the time of any Change in
Control (as hereinafter defined) a surety bond (the “Bond”). The Bond shall be in an
appropriate amount not less than one million dollars ($1,000,000), shall be issued by a commercial
insurance company or other financial institution headquartered in the United States having assets
in excess of $10 billion and capital according to its most recent published reports equal to or
greater than the then applicable minimum capital standards promulgated by such entity’s primary
federal regulator and shall contain terms and conditions reasonably

24

 

acceptable to Indemnitee. The Bond shall provide that Indemnitee may from time to time file a
claim for payment under the Bond, upon written certification by Indemnitee to the issuer of the
Bond that (i) Indemnitee has made written request upon the Company for an amount not less than the
amount Indemnitee is drawing under the Bond and that the Company has failed or refused to provide
Indemnitee with such amount in full within thirty (30) days after receipt of the request, and (ii)
Indemnitee believes that he or she is entitled under the terms of this Agreement to the amount that
Indemnitee is drawing upon under the Bond. The issuance of the Bond shall not in any way diminish
the Company’s obligation to indemnify Indemnitee against Expenses and Liabilities to the full
extent required by this Agreement.

               (b) Once the Company has obtained the Bond, the Company shall maintain and renew the Bond or a
substitute Bond meeting the criteria of Section 4(a) during the term of this Agreement so that the
Bond shall have an initial term of five (5) years, be renewed for successive five-year terms, and
always have at least one (1) year of its term remaining.

          5. Presumptions and Effect of Certain Proceedings. Upon making a request for
indemnification, Indemnitee shall be presumed to be entitled to indemnification under this
Agreement and the Company shall have the burden of proof to overcome that presumption in reaching
any contrary determination. The termination of any Proceeding by judgment, order, settlement,
arbitration award or conviction, or upon a plea of nolo contendere or its equivalent shall not
affect this presumption or, except as determined by a judgment or other final adjudication adverse
to Indemnitee, establish a presumption with regard to any factual matter relevant to determining
Indemnitee’s rights to indemnification hereunder. If the person or persons so empowered to make a
determination pursuant to Section 6 hereof shall have failed to make the requested determination
within ninety (90) days after any judgment, order, settlement, dismissal, arbitration award,
conviction, acceptance of a plea of nolo contendere or its equivalent, or other disposition or
partial disposition of any Proceeding or any other event that could enable the Company to determine
Indemnitee’s entitlement to indemnification, the requisite determination that Indemnitee is
entitled to indemnification shall be deemed to have been made.

          6. Procedure for Determination of Entitlement to Indemnification.

               (a) Whenever Indemnitee believes that Indemnitee is entitled to indemnification pursuant to
this Agreement, Indemnitee shall submit a written request for indemnification to the Company. Any
request for indemnification shall include sufficient documentation or information reasonably
available to Indemnitee for the determination of entitlement to indemnification. In any event,
Indemnitee shall submit Indemnitee’s claim for indemnification within a reasonable time, not to
exceed five (5) years after any judgment, order, settlement, dismissal, arbitration award,
conviction, acceptance of a plea of nolo contendere or its equivalent, or final determination,
whichever is the later date for which Indemnitee requests indemnification. The Secretary or other
appropriate officer shall, promptly upon receipt of Indemnitee’s request for indemnification,
advise the Board of Directors in writing that Indemnitee has made such request. Determination of
Indemnitee’s entitlement to indemnification shall be made not later than ninety (90) days after the
Company’s receipt of Indemnitee’s written request for such indemnification, provided that any
request for indemnification for Liabilities, other than amounts paid in settlement, shall have been made
after a determination thereof in a Proceeding.

25

 

               (b) The Company shall be entitled to select the forum in which Indemnitee’s entitlement to
indemnification will be heard; provided, however, that if there is a Change in Control of the
Company, Independent Legal Counsel (as hereinafter defined) shall determine whether Indemnitee is
entitled to indemnification. The forum shall be any one of the following:

                    (i) a majority vote of Disinterested Directors (as hereinafter defined), even though
less than a quorum;

                    (ii) Independent Legal Counsel, whose determination shall be made in a written opinion; or

                    (iii) a panel of three (3) arbitrators, one selected by the Company, another by
Indemnitee and the third by the first two arbitrators; or if for any reason three (3)
arbitrators are not selected within thirty (30) days after the appointment of the first
arbitrator, then selection of additional arbitrators shall be made by the American
Arbitration Association. If any arbitrator resigns or is unable to serve in such capacity
for any reason, the American Arbitration Association shall select such arbitrator’s
replacement. The arbitration shall be conducted pursuant to the commercial arbitration
rules of the American Arbitration Association now in effect.

          7. Specific Limitations on Indemnification. Notwithstanding anything in this
Agreement to the contrary, the Company shall not be obligated under this Agreement to make any
payment to Indemnitee with respect to any Proceeding:

               (a) To the extent that payment is actually made to Indemnitee under any insurance policy, or
is made to Indemnitee by the Company or an affiliate otherwise than pursuant to this Agreement.
Notwithstanding the availability of such insurance, Indemnitee also may claim indemnification from
the Company pursuant to this Agreement by assigning to the Company any claims under such insurance
to the extent Indemnitee is paid by the Company;

               (b) Provided there has been no Change in Control, for Liabilities in connection with
Proceedings settled without the Company’s consent, which consent, however, shall not be
unreasonably withheld;

               (c) For an accounting of profits made from the purchase or sale by Indemnitee of securities of
the Company within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), or similar provisions of any state statutory or common law; or

               (d) To the extent it would be otherwise prohibited by law, if so established by a judgment or
other final adjudication adverse to Indemnitee.

26

 

          8. Fees and Expenses of Independent Legal Counsel or Arbitrators. The Company agrees
to pay the reasonable fees and expenses of Independent Legal Counsel or a panel of three
arbitrators should such Independent Legal Counsel or such arbitrators be retained to make a
determination of Indemnitee’s entitlement to indemnification pursuant to Section 6(b) of this
Agreement, and to fully indemnify such Independent Legal Counsel or arbitrators against any and all
expenses and losses incurred by any of them arising out of or relating to this Agreement or their
engagement pursuant hereto.

          9. Remedies of Indemnitee.

               (a) In the event that (i) a determination pursuant to Section 6 hereof is made that Indemnitee
is not entitled to indemnification, (ii) advances of Expenses are not made pursuant to this
Agreement, (iii) payment has not been timely made following a determination of entitlement to
indemnification pursuant to this Agreement or (iv) Indemnitee otherwise seeks enforcement of this
Agreement, Indemnitee shall be entitled to a final adjudication in the Court of Chancery of the
State of Delaware of the remedy sought. Alternatively, unless (x) the determination was made by a
panel of arbitrators pursuant to Section 6(b)(iv) hereof, or (y) court approval is required by law
for the indemnification sought by Indemnitee, Indemnitee at Indemnitee’s option may seek an award
in arbitration to be conducted by a single arbitrator pursuant to the commercial arbitration rules
of the American Arbitration Association now in effect, which award is to be made within ninety (90)
days following the filing of the demand for arbitration. The Company shall not oppose Indemnitee’s
right to seek any such adjudication or arbitration award. In any such proceeding or arbitration,
Indemnitee shall be presumed to be entitled to indemnification and advancement of Expenses under
this Agreement and the Company shall have the burden of proof to overcome that presumption.

               (b) In the event that a determination that Indemnitee is not entitled to indemnification, in
whole or in part, has been made pursuant to Section 6 hereof, the decision in the judicial
proceeding or arbitration provided in paragraph (a) of this Section 9 shall be made de novo and
Indemnitee shall not be prejudiced by reason of a determination that Indemnitee is not entitled to
indemnification.

               (c) If a determination that Indemnitee is entitled to indemnification has been made pursuant
to Section 6 hereof, or is deemed to have been made pursuant to Section 5 hereof or otherwise
pursuant to the terms of this Agreement, the Company shall be bound by such determination in the
absence of a misrepresentation or omission of a material fact by Indemnitee in connection with such
determination.

               (d) The Company shall be precluded from asserting that the procedures and presumptions of this
Agreement are not valid, binding and enforceable. The Company shall stipulate in any such court or
before any such arbitrator that the Company is bound by all of the provisions of this Agreement and
is precluded from making any assertion to the contrary.

               (e) Expenses reasonably incurred by Indemnitee in connection with Indemnitee’s request for
indemnification under, seeking enforcement of or to recover damages
for breach of this Agreement shall be borne by the Company when and as incurred by Indemnitee
irrespective of any Final Adverse Determination that Indemnitee is not entitled to indemnification.

27

 

          10. Contribution. To the fullest extent permissible under applicable law, if the
indemnification provided for in this Agreement is unavailable to Indemnitee for any reason
whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount
incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to
be paid in settlement and/or for Expenses, in connection with any claim relating to an
indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in
light of all of the circumstances of such Proceeding in order to reflect (a) the relative benefits
received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving
cause to such Proceeding; and/or (b) the relative fault of the Company (and its directors,
officers, employees and agents) and Indemnitee in connection with such event(s) and/or
transaction(s).

          11. Maintenance of Insurance. Upon the Company’s purchase of directors’ and officers’
liability insurance policies covering its directors and officers, then, subject only to the
provisions within this Section 11, the Company agrees that so long as Indemnitee shall have
consented to serve or shall continue to serve as a director or officer of the Company, or both, or
as an Agent of the Company, and thereafter so long as Indemnitee shall be subject to any possible
Proceeding (such periods being hereinafter sometimes referred to as the “Indemnification
Period”), the Company will use all reasonable efforts to maintain in effect for the benefit of
Indemnitee one or more valid, binding and enforceable policies of directors’ and officers’
liability insurance from established and reputable insurers, providing, in all respects, coverage
both in scope and amount which is no less favorable than that provided by such preexisting
policies. Notwithstanding the foregoing, the Company shall not be required to maintain said
policies of directors’ and officers’ liability insurance during any time period if during such
period such insurance is not reasonably available or if it is determined in good faith by the then
directors of the Company either that:

               (a) The premium cost of maintaining such insurance is substantially disproportionate to the
amount of coverage provided thereunder; or

               (b) The protection provided by such insurance is so limited by exclusions, deductions or
otherwise that there is insufficient benefit to warrant the cost of maintaining such insurance.

Anything in this Agreement to the contrary notwithstanding, to the extent that and for so long as
the Company shall choose to continue to maintain any policies of directors’ and officers’ liability
insurance during the Indemnification Period, the Company shall maintain similar and equivalent
insurance for the benefit of Indemnitee during the Indemnification Period (unless such insurance
shall be less favorable to Indemnitee than the Company’s existing policies).

          12. Modification, Waiver, Termination and Cancellation. No supplement, modification,
termination, cancellation or amendment of this Agreement shall be binding unless executed in
writing by both of the parties hereto. No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether
or not similar), nor shall such waiver constitute a continuing waiver.

28

 

          13. Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all papers required and shall do everything that may be necessary to secure such rights,
including the execution of such documents necessary to enable the Company effectively to bring suit
to enforce such rights.

          14. Notice by Indemnitee and Defense of Claim. Indemnitee shall promptly notify the
Company in writing upon being served with any summons, citation, subpoena, complaint, indictment,
information or other document relating to any matter, whether civil, criminal, administrative or
investigative, but the omission so to notify the Company will not relieve it from any liability
that it may have to Indemnitee if such omission does not prejudice the Company’s rights. If such
omission does prejudice the Company’s rights, the Company will be relieved from liability only to
the extent of such prejudice. Notwithstanding the foregoing, such omission will not relieve the
Company from any liability that it may have to Indemnitee otherwise than under this Agreement.
With respect to any Proceeding as to which Indemnitee notifies the Company of the commencement
thereof:

               (a) The Company will be entitled to participate therein at its own expense; and

               (b) The Company jointly with any other indemnifying party similarly notified will be entitled
to assume the defense thereof, with counsel reasonably satisfactory to Indemnitee; provided,
however, that the Company shall not be entitled to assume the defense of any Proceeding if there
has been a Change in Control or if Indemnitee shall have reasonably concluded that there may be a
conflict of interest between the Company and Indemnitee with respect to such Proceeding. After
notice from the Company to Indemnitee of its election to assume the defense thereof, the Company
will not be liable to Indemnitee under this Agreement for any Expenses subsequently incurred by
Indemnitee in connection with the defense thereof, other than reasonable costs of investigation or
as otherwise provided below. Indemnitee shall have the right to employ Indemnitee’s own counsel in
such Proceeding, but the fees and expenses of such counsel incurred after notice from the Company
of its assumption of the defense thereof shall be at the expense of Indemnitee unless:

                    (i) the employment of counsel by Indemnitee has been authorized by the Company;

                    (ii) Indemnitee shall have reasonably concluded that counsel engaged by the Company may
not adequately represent Indemnitee due to, among other things, actual or potential
differing interests; or

                    (iii) the Company shall not in fact have employed counsel to assume the defense in such
Proceeding or shall not in fact have assumed such defense
and be acting in connection therewith with reasonable diligence; in each of which cases
the fees and expenses of such counsel shall be at the expense of the Company.

29

 

               (c) The Company shall not settle any Proceeding in any manner that would impose any penalty or
limitation on Indemnitee without Indemnitee’s written consent; provided, however, that Indemnitee
will not unreasonably withhold his or her consent to any proposed settlement.

          15. Notices. All notices, requests, demands and other communications hereunder shall
be in writing and shall be deemed to have been duly given if (a) delivered by hand and receipted
for by the party to whom said notice or other communication shall have been directed, (b) delivered
by facsimile with telephone confirmation of receipt or (c) mailed by certified or registered mail
with postage prepaid, on the third business day after the date on which it is so mailed:

	 	(i)	 	If to Indemnitee, to the address or facsimile number set forth
on the signature page hereto.
	 
	 	(ii)	 	If to the Company, to:

Biolase Technology, Inc.

981 Calle Amanecer

San Clemente, California 92673

Attn: Corporate Secretary

or to such other address as may have been furnished to Indemnitee by the Company or to the Company
by Indemnitee, as the case may be.

          16. Nonexclusivity. The rights of Indemnitee hereunder shall not be deemed exclusive
of any other rights to which Indemnitee may be entitled under applicable law, the Company’s
Certificate of Incorporation or bylaws, or any agreements, vote of stockholders, resolution of the
Board of Directors or otherwise, and to the extent that during the Indemnification Period the
rights of the then existing directors and officers are more favorable to such directors or officers
than the rights currently provided to Indemnitee thereunder or under this Agreement, Indemnitee
shall be entitled to the full benefits of such more favorable rights.

          17. Certain Definitions.

               (a) “Agent” shall mean any person who is or was, or who has consented to serve as, a
director, officer, employee, agent, fiduciary, joint venturer, partner, manager or other official
of the Company or a subsidiary or an affiliate of the Company, or any other entity (including
without limitation, an employee benefit plan) either at the request of, for the convenience of, or
otherwise to benefit the Company or a subsidiary of the Company.

30

 

               (b) “Change in Control” shall mean the occurrence of any of the following:

                    (i) Both (A) any “person” (as defined below) is or becomes the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing at least twenty percent (20%) of the total voting power represented by
the Company’s then outstanding voting securities and (B) the beneficial ownership by such
person of securities representing such percentage has not been approved by a majority of the
“continuing directors” (as defined below);

                    (ii) Any “person” is or becomes the “beneficial owner” (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company representing at
least fifty percent (50%) of the total voting power represented by the Company’s then
outstanding voting securities;

                    (iii) A change in the composition of the Board of Directors occurs, as a result of
which fewer than two-thirds of the incumbent directors are directors who either (A) had been
directors of the Company on the “look-back date” (as defined below) (the “Original
Directors”) or (B) were elected, or nominated for election, to the Board of Directors
with the affirmative votes of at least a majority in the aggregate of the Original Directors
who were still in office at the time of the election or nomination and directors whose
election or nomination was previously so approved (the “continuing directors”);

                    (iv) The stockholders of the Company approve a merger or consolidation of the Company
with any other corporation, if such merger or consolidation would result in the voting
securities of the Company outstanding immediately prior thereto representing (either by
remaining outstanding or by being converted into voting securities of the surviving entity)
fifty percent (50%) or less of the total voting power represented by the voting securities
of the Company or such surviving entity outstanding immediately after such merger or
consolidation; or

                    (v) The stockholders of the Company approve (A) a plan of complete liquidation of the
Company or (B) an agreement for the sale or disposition by the Company of all or
substantially all of the Company’s assets.

          For purposes of Subsection (i) above, the term “person” shall have the same meaning as when
used in Sections 13(d) and 14(d) of the Exchange Act, but shall exclude (x) a trustee or other
fiduciary holding securities under an employee benefit plan of the Company or of a parent or
subsidiary of the Company or (y) a corporation owned directly or indirectly by the stockholders of
the Company in substantially the same proportions as their ownership of the common stock of the
Company.

          For purposes of Subsection (iii) above, the term “look-back date” shall mean the later of (x)
the Effective Date and (y) the date twenty-four (24) months prior to the date of the event that may
constitute a “Change in Control.”

31

 

     Any other provision of this Section 17(b) notwithstanding, the term “Change in Control” shall
not include a transaction, if undertaken at the election of the Company, the result of which is to
sell all or substantially all of the assets of the Company to another corporation (the
“surviving corporation”); provided that the surviving corporation is owned directly or
indirectly by the stockholders of the Company immediately following such transaction in
substantially the same proportions as their ownership of the Company’s common stock immediately
preceding such transaction; and provided, further, that the surviving corporation expressly assumes
this Agreement.

               (c) “Disinterested Director” shall mean a director of the Company who is not or was
not a party to or otherwise involved in the Proceeding in respect of which indemnification is being
sought by Indemnitee.

               (d) “Expenses” shall include all direct and indirect costs (including, without
limitation, attorneys’ fees, retainers, court costs, transcripts, fees of experts, witness fees,
travel expenses, duplicating costs, printing and binding costs, telephone charges, postage,
delivery service fees, all other disbursements or out-of-pocket expenses and reasonable
compensation for time spent by Indemnitee for which Indemnitee is otherwise not compensated by the
Company or any third party) actually and reasonably incurred in connection with either the
investigation, defense, settlement or appeal of a Proceeding or establishing or enforcing a right
to indemnification under this Agreement, applicable law or otherwise; provided, however, that
“Expenses” shall not include any Liabilities.

               (e) “Final Adverse Determination” shall mean that a determination that Indemnitee is
not entitled to indemnification shall have been made pursuant to Section 6 hereof and either (1) a
final adjudication in the Court of Chancery of the State of Delaware or decision of an arbitrator
pursuant to Section 9(a) hereof shall have denied Indemnitee’s right to indemnification hereunder,
or (2) Indemnitee shall have failed to file a complaint in a Delaware court or seek an arbitrator’s
award pursuant to Section 9(a) for a period of one hundred twenty (120) days after the
determination made pursuant to Section 5 hereof.

               (f) “Independent Legal Counsel” shall mean a law firm or a member of a firm selected
by the Company and approved by Indemnitee (which approval shall not be unreasonably withheld) or,
if there has been a Change in Control, selected by Indemnitee and approved by the Company (which
approval shall not be unreasonably withheld), that neither is presently nor in the past five (5)
years has been retained to represent: (i) the Company or any of its subsidiaries or affiliates, or
Indemnitee or any corporation of which Indemnitee was or is a director, officer, employee or agent,
or any subsidiary or affiliate of such a corporation, in any material matter, or (ii) any other
party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term “Independent Legal Counsel” shall not include any person who, under the
applicable standards of professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in an action to determine Indemnitee’s right to
indemnification under this Agreement.

32

 

               (g) “Liabilities” shall mean liabilities of any type whatsoever including, but not
limited to, any judgments, fines, ERISA excise taxes and penalties, penalties and amounts paid in
settlement (including all interest assessments and other charges paid or payable in connection with
or in respect of such judgments, fines, penalties or amounts paid in settlement) of any Proceeding.

               (h) “Proceeding” shall mean any threatened, pending or completed action, claim, suit,
arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any
other proceeding whether civil, criminal, administrative or investigative, that is associated with
Indemnitee’s being an Agent of the Company.

          18. Binding Effect; Duration and Scope of Agreement. This Agreement shall be binding
upon and inure to the benefit of and be enforceable by the parties hereto and their respective
successors and assigns (including any direct or indirect successor by purchase, merger,
consolidation or otherwise to all or substantially all of the business or assets of the Company),
spouses, heirs and personal and legal representatives. This Agreement shall continue in effect
during the Indemnification Period, regardless of whether Indemnitee continues to serve as an Agent.

          19. Severability. If any provision or provisions of this Agreement (or any portion
thereof) shall be held to be invalid, illegal or unenforceable for any reason whatsoever:

               (a) the validity, legality and enforceability of the remaining provisions of this Agreement
shall not in any way be affected or impaired thereby; and

               (b) to the fullest extent legally possible, the provisions of this Agreement shall be
construed so as to give effect to the intent of any provision held invalid, illegal or
unenforceable.

          20. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware, as applied to contracts between Delaware
residents entered into and to be performed entirely within the State of Delaware, without regard to
conflict of laws rules.

          21. Consent to Jurisdiction. The Company and Indemnitee each irrevocably consent to
the jurisdiction of the courts of the State of Delaware for all purposes in connection with any
action or proceeding that arises out of or relates to this Agreement and agree that any action
instituted under this Agreement shall be brought only in the state courts of the State of Delaware.

          22. Entire Agreement. This Agreement represents the entire agreement between the
parties hereto, and there are no other agreements, contracts or understandings between the parties
hereto with respect to the subject matter of this Agreement, except as specifically referred to
herein or as provided in Section 16 hereof.

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          23. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall for all purposes be deemed to be an original but all of which together shall constitute
one and the same Agreement.

          IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized
officer and Indemnitee has executed this Agreement as of the date first above written.

	 	 	 	 	 
	 	BIOLASE TECHNOLOGY, INC.,

a Delaware corporation

 	 
	 	By:  	 	 
	 	  	 	 
	 	 	 
	 	Print Name 	 
	 	Title 	 	 
	 
	 	INDEMNITEE

	 
	 	Signature: 
 	 
	 	Print Name: 
 	 
	 	Address:  
 	 	 
	 	 
 	 	 
	 
	 
	 	Telephone:  
 	 	 
	 	Facsimile:  
 	 	 
	 	E-mail:  
 	 	 

34

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