Document:

Exhibit

EXHIBIT 10o

	
			
	 
	AOL INC. LONG-TERM INCENTIVE PLAN
	 

	Contents
	Page

	Article 1.
	Establishment, Objectives, and Duration
	2

	Article 2.
	Definitions
	2

	Article 3.
	Administration
	4

	Article 4.
	Units Subject to the Plan
	4

	Article 5.
	Eligibility and Participation
	4

	Article 6.
	Grant and Payment of Units
	4

	Article 7.
	Award Agreements
	5

	Article 8.
	Beneficiary Designation
	5

	Article 9.
	Deferrals
	5

	Article 10.
	No Right to Employment or Participation
	5

	Article 11.
	Change in Control
	6

	Article 12.
	Amendment, Modification, and Termination
	6

	Article 13.
	Withholding
	6

	Article 14.
	Successors
	6

	Article 15.
	Legal Construction
	6

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Article 1.  Establishment, Objectives, and Duration

1.1    Establishment of the Plan. AOL Inc., a Delaware corporation (hereinafter referred to as the “Company”) has adopted the “AOL Inc. Long-Term Incentive Plan” (hereinafter referred to as the “Plan”), as set forth in this document and as it may be amended from time to time. The Plan was effective on June 23, 2015 (the “Effective Date”), which was the date the Company’s Board of Directors first approved the Plan, and shall remain in effect as provided in Section 1.3 hereof.

The Plan permits the grant of Units on the terms described below.

1.2    Objectives of the Plan. The objectives of the Plan are to optimize the profitability and growth of the Company through long-term incentives that are consistent with the Company’s goals and that link the interests of Participants to those of the Company’s shareholders; to provide Participants with incentives for excellence in individual performance; to provide flexibility to the Company in its ability to motivate, attract, and retain the services of Participants who make significant contributions to the Company’s success; and to allow Participants to share in the success of the Company.

1.3    Duration of the Plan. The Plan shall commence on the Effective Date and shall remain in effect, subject to the right of the Administrator to amend or terminate the Plan at any time pursuant to Article 12 hereof, until all Awards shall have been paid or forfeited, pursuant to the Plan’s provisions. In no event, however, may an Award be granted more than ten (10) years after the Effective Date.

Article 2. Definitions

Whenever the following terms are used in the Plan, with their initial letter(s) capitalized, they shall have the meanings set forth below:

		
	2.1
	“Administrator” shall have the meaning ascribed to such term in Section 3.1 hereof.

		
	2.2
	“Award” means, individually or collectively, a grant under the Plan of Units.

		
	2.3
	“Award Agreement” means an agreement entered into by the Company and a Participant, or another instrument prepared by the Company in lieu of such an agreement, setting forth the terms and conditions applicable to an Award pursuant to Article 7 hereof.

		
	2.5
	“Board” or “Board of Directors” means the Board of Directors of the Company, or a committee of the Board to the extent that the Board designates a committee to perform its functions under the Plan.

		
	2.6
	“Change in Control” means the occurrence of any of the following events at any time after the closing of the acquisition of the Company by Verizon effective June 23, 2015:

		
	(a)
	any “Person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (other than the Company, Verizon or any company owned, directly or indirectly, by the stockholders of the Company or Verizon in substantially the same proportions as their ownership of stock of the Company or Verizon, as the case may be) becomes the “Beneficial Owner” within the meaning of Rule 13d-3 promulgated under the Exchange Act of 30% or more of the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors; excluding, however, any circumstance in which such beneficial ownership resulted from any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or by any corporation controlling, controlled by, or under common control with, the Company;

		
	(b)
	a change in the composition of the Board after such time as Verizon is no longer a Parent (such time that Verizon is no longer a Parent, the “Separation Time”), such that the individuals who, as of the Separation Time, constituted the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of such Board; provided that any individual who becomes a director of the Company subsequent to the Separation Time whose election, or nomination for election by the Company’s stockholders, was approved by the vote of at least a majority of the directors then comprising the Incumbent Board shall be deemed a member of the Incumbent Board; and provided further, that any individual who was initially elected as a director of the Company after the Separation Time as a result of an actual or threatened election contest, as such terms are used in Rule 14a-12 of Regulation 14A promulgated under the Exchange Act, or any other actual or threatened solicitation of proxies or consents by or on behalf of any person or entity other than the Board shall not be deemed a member of the Incumbent Board;

		
	(c)
	a reorganization, recapitalization, merger or consolidation (a “Corporate Transaction”) involving the Company, unless securities representing 60% or more of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the Company or the corporation resulting from such Corporate Transaction (or a parent of the Company or such corporation) are held subsequent to such transaction by the person or persons who were the beneficial holders of the outstanding voting securities entitled to vote generally in the election of directors of the 

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Company or a Parent immediately prior to such Corporate Transaction, in substantially the same proportions as their ownership in the Company or a Parent, as the case may be, immediately prior to such Corporate Transaction; or

		
	(d)
	the sale, transfer or other disposition of all or substantially all of the assets of the Company.

Notwithstanding the foregoing, a Change in Control shall not occur if Verizon continues to be a Parent following the event or transaction in question, and a transaction shall not constitute a Change in Control if it is in connection with the underwritten public offering of the Company’s or a Parent’s securities.

		
	2.7
	“Code” means the Internal Revenue Code of 1986, as amended from time to time.

2.8    “Company” means AOL Inc., a Delaware corporation, and any successor thereto as provided in Article 14 hereof.

2.9    “Company Value” means the aggregate Fair Market Value of the Company’s issued and outstanding Shares on the relevant date.

		
	2.10
	“Director” means any individual who is a member of the Board.

		
	2.11
	“Effective Date” shall have the meaning ascribed to such term in Section 1.1 hereof.

2.12    “Employee” means any employee of the Company, Verizon or any of their respective Subsidiaries. Directors who are employed by the Company or by a Subsidiary shall be considered Employees under the Plan.

2.13    “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor statute.

2.14    “Fair Market Value” means (a) if the Shares are not listed or admitted to trade on a national securities exchange on the relevant date, the Fair Market Value shall be the value of a Share as of the relevant date as reasonably determined by the Administrator for purposes of the Award, which determination may be based on a valuation report obtained from an independent appraisal firm, or (b) if the Shares are listed or admitted to trade on a national securities exchange on the relevant date, the closing price of a Share on that date on the principal securities exchange on which the Shares are then traded or, if there are no such sales on the relevant date, then the closing price of Shares on the date or dates that the Administrator determines, in its sole discretion, to be appropriate for purposes of valuation.

		
	2.15
	“Non-Employee Director” means a Director who is not an Employee.

2.16    “Parent” means any corporation, partnership, joint venture or other entity that has a direct or indirect ownership interest of at least fifty percent (50%) in the Company.

2.17    “Participant” means an Employee or Non-Employee Director who has been selected to receive an Award or who holds an outstanding Award.

2.18    “Payment Date” means, as to a particular Unit, the date on which such Unit is to be paid as set forth in the applicable Award Agreement (subject to any vesting requirements applicable to such Unit).

2.19    “Plan” means the AOL Inc. Long-Term Incentive Plan as set forth herein and as it may be amended from time to time.

2.20    “Performance Share Unit” means a Unit the vesting of which may be based in whole or in part on the attainment of performance criteria with respect to the Company.

2.10    “Restricted Share Unit” means a Unit the vesting of which may be based in whole or in part based on the passage of time.

2.21    “Share” means a share of common stock of the Company.

2.22    “Subsidiary” means (a) a corporation, partnership, joint venture, or other entity in which the Company (or Verizon, as the context may require) has a direct or indirect ownership interest of at least fifty percent (50%), and (b) any corporation, partnership, joint venture, or other entity in which the Company (or Verizon, as the context may require) holds a direct or indirect ownership interest of less than fifty percent (50%) but which, in the discretion of the Administrator, is treated as a Subsidiary for purposes of the Plan.

2.22    “Total Indicative Units” means the number of units of economic interest into which the Company Value is divided for purposes of determining the value of a Unit under the Plan. The Total Indicative Units shall be Two Hundred Seven Million Forty Thousand (207,040,000) at the Effective Date and shall be adjusted thereafter to the extent and as contemplated in Section 6.3.

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2.23    “Unit” means a contingent right to receive a payment in an amount determined under Section 6 below and includes Performance Share Units and Restricted Share Units.

2.24    “Unit Pool” means the number of Units available for grant under the Plan under Section 4.1 hereof, as adjusted pursuant to Section 4.2 hereof.

		
	2.25
	“Verizon” means Verizon Communications, Inc.

2.26    “Vesting Date” shall have the meaning ascribed to such term in the applicable Award Agreement.

Article 3. Administration

3.1    General. The Plan shall be administered by and all Awards under this Plan shall be authorized by the Administrator.  Unless otherwise expressly provided by the Board, the “Administrator” means the Executive Vice President and Chief Administrative Officer of Verizon.
3.2    Authority of the Administrator. Subject to the provisions hereof, the Administrator shall have full power in its discretion to select Employees who shall participate in the Plan; determine the sizes and types of Awards; determine the terms and conditions of Awards in a manner consistent with the Plan; construe and interpret the Plan and any Award Agreement or other agreement or instrument entered into or issued under the Plan; establish, amend, or waive rules and regulations for the Plan’s administration; and (subject to the provisions of Article 12 hereof) amend the terms and conditions of any outstanding Award as provided in the Plan. Further, the Administrator shall make all other determinations that may be necessary or advisable for the administration of the Plan. With respect to the Non-Employee Directors, the authority conferred by this Section 3.2 shall rest with the Board. The Administrator may delegate ministerial, non-discretionary functions to individuals who are officers or employees of the Company or any of its affiliates or to third parties.

3.3    Decisions Binding. All determinations and decisions made by the Administrator pursuant to the provisions of the Plan and all related orders and resolutions of the Administrator shall be final, conclusive, and binding on all persons, including the Company, its shareholders, Directors, Non-Employee Directors, Employees, Participants, and their estates and beneficiaries.

Article 4.  Units Subject to the Plan

4.1    Number of Units Available for Grants. Subject to Section 4.2, the maximum number of Units that may be granted under the Plan is Twenty Million Seven Hundred Four Thousand (20,704,000) Units. No Award may be granted if it would cause the Unit limit of this Section 4.1 to be exceeded.

		
	4.2
	Unit Pool Adjustments.

		
	(a)
	Each Unit subject to the portion of an Award that is paid in the form Shares shall be charged against the Unit Pool.

		
	(b)
	If all or any portion of an Award is paid in cash or expires or is cancelled, terminated or forfeited for any reason without payment in Shares, the Units subject to such portion of the Award shall restore, on a one-for-one basis, the number of Units available for grant under the Unit Pool.

Article 5.  Eligibility and Participation

5.1    Eligibility. All Employees and Non-Employee Directors are eligible to participate in the Plan.

5.2    Actual Participation. Subject to the provisions of the Plan, the Administrator may, from time to time, select from all Employees those to whom Awards shall be granted and shall determine the nature and size of each Award. The Board shall determine the Awards to be granted to the Non-Employee Directors in accordance with the Company’s compensation program for Non-Employee Directors.

Article 6.  Grant and Payment of Units

6.1    Grants. Subject to the terms and conditions of the Plan, Awards of Units may be granted to Participants at any time and from time to time as shall be determined by the Administrator. The Administrator will determine the vesting of each such Award (which may be based on performance criteria, passage of time or other factors or any combination thereof) and the other terms and conditions of such Award, including designating such Award of Units as Restricted Share Units or Performance Share Units, which provisions will be set forth in the applicable Award Agreement.

6.2    Amount of Payment. Each Unit shall represent the right to receive, subject to any vesting requirements applicable to such Unit, an amount equal to (a) the Company Value as of the applicable Vesting Date, divided by (b) the Total Indicative Units as of the applicable Vesting Date.

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6.3    Adjustments. In the event of (1) any contribution to the Company’s capital by Verizon or any of its Subsidiaries (other than the Company); (2) any sale of additional equity interests by the Company; (3) any merger, combination, acquisition, consolidation, sale of a portion of the business or other reorganization of the Company; (4) any split-up, spin-off or dividend distribution in respect of the Company’s securities in the form of property; or (5) any similar, unusual or extraordinary corporate transaction, the Administrator shall, to such extent (if any) and at such time as it reasonably deems appropriate and equitable in the circumstances, make such adjustments as may be necessary or appropriate to preserve (and not enlarge or dilute) the intended level of benefits under the Plan, including without limitation by adjusting the Total Indicative Units in connection with such event. For example, and without limitation, if Verizon contributed assets valued at $1 Billion to the Company at a time when the value of a Unit (as determined pursuant to Section 6.2 immediately before giving effect to such contribution) was $25, the Administrator could increase the Total Indicative Units by an additional Forty Million (e.g., if the then-existing amount was 207,040,000, the increase would be from 207,040,000 to247,040,000; $1 Billion divided by $25 is Forty Million) effective at the time and to account for such contribution. Any adjustment made pursuant to this Section 6.3 may apply as to any Unit (including Awards then outstanding) to the extent the Payment Date for such Unit had not occurred prior to the effective time of such adjustment.

6.4    Timing and Form of Payment. Any payment of a vested Unit as provided in this Article 6 shall be made on or following the applicable Payment Date of such Unit as provided in the Award Agreement. Such payment shall be made in cash; provided, however, that if the Shares are listed or admitted to trade on a national securities exchange as of the applicable payment date, such payment may be made in the sole discretion of the Administrator, by the Company delivering a number of Shares determined by dividing (a) the amount of such payment as determined under Section 6.2, by (b) the Fair Market Value of a Share at the time such payment is made.

Article 7.  Award Agreements
7.1    In General. Each Award shall be evidenced by an Award Agreement that shall include such provisions as the Administrator shall determine and that shall specify the number of Restricted Stock Units granted and the applicable vesting and payment terms.

7.2    Severance from Service. Each Award Agreement shall set forth the extent to which the Participant shall have rights, if any, under the Award following the Participant’s severance from service with the Company and its Subsidiaries. The Award Agreement may make distinctions based on the reason for the Participant’s severance from service and may contain obligations that apply beyond the term of the Award Agreement.

7.3    Restrictions on Transferability. Unless otherwise expressly approved by the Administrator, a Participant’s Award may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution, and shall be exercisable during the Participant’s lifetime only by the Participant.

7.4    Uniformity Not Required. The provisions of the Award Agreements need not be uniform among all Awards, among all Awards of the same type, among all Awards granted to the same Participant, or among all Awards granted at the same time.

Article 8.  Beneficiary Designation

Each Participant may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under the Plan is to be paid in case of the Participant’s death before the Participant receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Participant with respect to such benefit, shall be in a form prescribed by the Company, and shall be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. In the absence of any such designation, any benefits remaining unpaid under the Plan at the Participant’s death shall be paid to the Participant’s estate unless otherwise provided in the Award Agreement.

Article 9. Deferrals

Pursuant to the applicable requirements of Section 409A of the Code, the Administrator may permit or require a Participant to defer receipt of the payment of cash or the delivery of Shares that would otherwise be due in connection with any Awards. If any such deferral is required or permitted, the Administrator shall establish rules and procedures for such deferrals in compliance with the requirements of Section 409A of the Code.

Article 10.  No Right to Employment or Participation

10.1    Employment. The Plan shall not interfere with or limit in any way the right of the Company or Verizon or any Subsidiary of the Company or Verizon to terminate any Employee’s employment at any time, and the Plan shall not confer upon any Employee the right to continue in the employ of the Company or Verizon or any of their respective Subsidiaries.

10.2    Participation. No Employee or Non-Employee Director shall have the right to be selected to receive an Award or, having been so selected, to be selected to receive a future Award.

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Article 11.  Change in Control.

No outstanding Awards shall vest or become immediately payable or exercisable merely upon the occurrence of a Change in Control. However, if within twelve (12) months following the occurrence of a Change in Control, a Participant is involuntarily terminated without “Cause” or is deemed to have separated from service as the result of a “Good Reason”, then any restriction periods and other restrictions imposed on the Participant’s then-outstanding Awards shall lapse. Notwithstanding the foregoing, such Awards shall not become payable until their regularly scheduled time as specified under the terms and conditions of the applicable Award Agreement, except that, to the extent an Award is exempt from Section 409A of the Code under the “short-term deferral rule,” payment shall not be later than 2-1/2 months after the year in which it is no longer subject to a substantial risk of forfeiture. Both “Cause” and “Good Reason” shall be as defined in the applicable Award Agreement.

Article 12. Amendment, Modification, and Termination

12.1    Amendment, Modification, and Termination. Subject to the terms of the Plan, the Administrator may at any time and from time to time, alter, amend, suspend, or terminate the Plan in whole or in part; provided that unless the Administrator specifically provides otherwise, any revision or amendment that would cause the Plan to fail to comply with any requirement of applicable law, regulation, or rule if such amendment were not approved by the shareholders of the Company shall not be effective unless and until shareholder approval is obtained.

12.2    Awards Previously Granted. After the termination of the Plan, any previously granted Award shall remain in effect and shall continue to be governed by the terms of the Plan, the Award, and any applicable Award Agreement. All Awards previously granted under the Plan prior to the Effective Date specified herein shall be governed by the terms and conditions of the Plan as in effect at such time, provided that all Plan provisions referencing Section 409A of the Code shall apply to all Awards subject to 409A of the Code.

Article 13. Withholding

13.1    Tax Withholding. The Company and its Subsidiaries shall have the power and the right to deduct or withhold, or to require a Participant to remit to the Company or to Verizon, or any Subsidiary of the Company or Verizon, an amount that the Company or Verizon, or any Subsidiary of the Company or Verizon, reasonably determines to be required to comply with federal, state, local, or foreign tax withholding requirements.

13.2    Share Withholding. With respect to withholding required in connection with any issuance of Shares pursuant to an Award granted hereunder, the Administrator may elect to satisfy the withholding requirement, in whole or in part, by having the Company withhold Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory withholding tax that could be imposed on the transaction.

Article 14. Successors

All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether or not the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

Article 15.  Legal Construction

15.1    Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; any feminine term used herein also shall include the masculine; and the plural shall include the singular and the singular shall include the plural.

15.2    Severability. If any provision of the Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

15.3    Requirements of Law.  The granting and payment of Awards under the Plan (including the issuance of any Shares under the Plan) shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. In addition, the Plan and all Awards will be interpreted and construed to avoid any tax, penalty or interest under Code Section 409A. The Administrator, in its reasonable discretion, may amend the Plan (including retroactively) in any manner to conform with Section 409A of the Code. Except for the Company’s obligations to withhold taxes, the Company will have no obligation relating to any tax or penalty applicable to any person as a result of participation in the Plan.

15.4    Governing Law. The Plan shall be construed in accordance with and governed by the laws of the State of New York (without regard to the legislative or judicial conflict of laws rules of any state), except to the extent superseded by federal law.

6Exhibit

EXHIBIT 10o(i)

AOL INC. LONG-TERM INCENTIVE PLAN 
FOUNDERS’ GRANT UNIT AGREEMENT

AGREEMENT between AOL Inc. (the “Company”) and you (the “Participant”) and your heirs and beneficiaries.
1. Purpose of Agreement. The purpose of this Agreement is to provide a grant of Restricted Share Units (“Units”) to the Participant.  This award satisfies in full the Participant’s right to receive a “Founders Incentive Award” with respect to the Company pursuant to the Participant’s offer letter with Verizon Communications Inc. dated May 12, 2015.
2. Agreement. This Agreement is entered into pursuant to the AOL Inc. Long-Term Incentive Plan (the “Plan”), and evidences the grant of Units pursuant to the Plan.  In consideration of the benefits described in this Agreement, which Participant acknowledges are good, valuable and sufficient consideration, the Participant agrees to comply with the terms and conditions of this Agreement, including the Participant’s obligations and restrictions set forth in Exhibit A to this Agreement (the “Participant’s Obligations”) which are incorporated into and are a part of the Agreement.  The Units and this Agreement are subject to the terms and provisions of the Plan.  By executing this Agreement, the Participant agrees to be bound by the terms and provisions of the Plan and this Agreement, including but not limited to the Participant’s Obligations.  In addition, the Participant agrees to be bound by the actions of the Administrator (to the extent that such actions are exercised in accordance with the terms of the Plan and this Agreement).  If there is a conflict between the terms of the Plan and the terms of this Agreement, the terms of this Agreement shall control.
3.  Contingency. The grant of Units is contingent on the Participant’s timely acceptance of this Agreement and satisfaction of the other conditions contained in it.  Acceptance shall be through execution of the Agreement as set forth in paragraph 21.  If the Participant does not accept this Agreement by the close of business on September 30, 2015, the Participant shall not be entitled to this grant of Units regardless of the extent to which the requirements in paragraph 5 (“Vesting”) are satisfied.  In addition, to the extent a Participant is on a Company approved leave of absence, including but not limited to short-term disability leave, he or she will not be entitled to this grant of Units until such time as he or she returns to active employment with the Company or a Related Company (as defined in paragraph 13) and accepts this Agreement within the time period established by the Company.   
4.  Number of Units. Effective on the date the Units are granted (the “Grant Date”), the Participant is granted the number of Units as specified in the Participant’s account under the “Founders’ 15” grant administered by Fidelity Investments, or any other record keeper appointed by the Company with respect to the Plan or any successor to either of them (“Fidelity”).  A “Unit” is a contingent right to receive a payment as determined under Section 6 of the Plan and the provisions of this Agreement.  To the extent that Fidelity or the Company makes an error, including but not limited to an administrative error with respect to the number of Units granted to the Participant under this Agreement, the Company or Fidelity specifically reserves the right to correct such error at any time and the Participant agrees that he or she shall be legally bound by any corrective action taken by the Company or Fidelity.
5.  Vesting.
(a) General.  The Units shall vest as to one-half (1/2) of the Units on June 22, 2018, and as to one-half (1/2) of the Units on June 22, 2019 (each such anniversary date, a “Vesting Date”).  Vesting of the Units is subject in each case to the Participant’s continuous employment by the Company or a Related Company (as defined in paragraph 13) from the Grant Date through the applicable Vesting Date, except as otherwise provided in paragraph 7 (“Early Cancellation/Accelerated Vesting of Units”) or as otherwise provided by the Administrator. 
(b)  Transfer.  Transfer of employment from the Company to a Related Company, from a Related Company to the Company, or from one Related Company to another Related Company shall not constitute a separation from employment hereunder, and service with a Related Company shall be treated as service with the Company for purposes of the continuous employment requirement in paragraph 5(a).  If the Participant transfers employment pursuant to this paragraph 5(b), the Participant will still be required to satisfy the definition of “Retire” under paragraph 7 of this Agreement in order to be eligible for the accelerated vesting provisions in connection with a retirement.
6.  Payment.  Any Units that vest pursuant to the terms hereof shall be paid in the amount and manner provided in Section 6 of the Plan.  Such payment shall be made as soon as practicable after the Vesting Date for such Units (but in no event later than two and one-half months after the Vesting Date).  Such payment shall be subject to all applicable tax withholding.  If the Participant dies before any payment due hereunder is made, such payment shall be made to the Participant’s beneficiary, as designated under paragraph 11.  Once a payment has been made with respect to a Unit, the Unit shall be canceled; however, all other terms of the Agreement, including but not limited to the Participant’s Obligations, shall remain in effect.
7.  Early Cancellation/Accelerated Vesting of Units.  Notwithstanding the provisions of paragraph 5, Units may vest or be forfeited before the Vesting Date as follows: 

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(a) Termination for Cause.  If the Participant’s employment by the Company or a Related Company is terminated by the Company or a Related Company for Cause at any time prior to the date that the Units are paid pursuant to paragraph 6, the Units (whether vested or not) shall automatically terminate and be cancelled as of the applicable termination date without payment of any consideration by the Company and without any other action by the Participant. 
(b)  Retirement More Than Six Months After Grant Date, Termination Due to Death or Disability, Involuntary Termination without Cause or Termination for Good Reason On or Before Vesting Date.
(1) This paragraph 7(b) shall apply if the Participant:
(i) Retires (as defined below) on or after the date that is six months after the Grant Date and on or before a Vesting Date,
(ii) Separates from employment by reason of the Participant’s death, or Disability (as defined below) on or before a Vesting Date, or
(iii) Separates from employment by reason of a termination by the Company or a Related Company without Cause (as defined below) or a termination by the Participant for Good Reason (as defined below), in each case on or before a Vesting Date.  

(2) Subject to the conditions set forth in paragraph 7(g), if the Participant separates from employment on or before the Vesting Date under circumstances described in paragraph 7(b)(1), the continuous employment requirement set forth in paragraph 5(a) shall be deemed satisfied  
in full as if the Participant’s employment with the Company had continued through the Vesting Date. 
(3) Any Units that vest pursuant to paragraph 7(b)(2) shall be payable at their regularly scheduled time as specified in paragraph 6.
(c)    Retirement Within Six Months of Grant Date, Voluntary Termination or Other Separation Not Described in Paragraph 7(a), 7(b) or 7(d). If the Participant (i) Retires (as defined in paragraph 7(e)(4)) before the date that is six months after the Grant Date, or (ii) otherwise separates from employment on or before a Vesting Date under any circumstances not described in paragraph 7(a), 7(b) or 7(d), all the Units shall automatically terminate and be cancelled as of the applicable termination date without payment of any consideration by the Company and without any other action by the Participant.     
(d) Change in Control.  If a Participant’s employment with the Company or a Related Company is involuntarily terminated without Cause or the Participant voluntarily terminates employment for Good Reason within twelve (12) months following the occurrence of a Change in Control and before  a Vesting Date, then, subject to the conditions set forth in paragraph 7(g), the Units shall vest and become payable (without prorating the award) and the continuous employment requirement set forth in paragraph 5(a) shall be deemed satisfied in full as if the Participant’s employment with the Company had continued through the Vesting Date; provided, however, that all other terms of the Agreement, including but not limited to the Participant’s Obligations, shall remain in effect.  A Change in Control or an involuntary termination without Cause or a voluntary termination for Good Reason that occurs after a particular Vesting Date shall have no effect on whether any Units scheduled to vest on the Vesting Date vest or become payable under this paragraph 7.  If both paragraph 7(b) and this paragraph 7(d) would otherwise apply in the circumstances, this paragraph 7(d) shall control.  Any Units that vest pursuant to this paragraph 7(d) shall be payable at their regularly scheduled time as specified in paragraph 6.
(e) Defined Terms.  For purposes of this Agreement, the following definitions shall apply:
(1) “Disability” has the meaning given to such term in an employment agreement between the Company or Related Company and the Participant or, if not defined therein or if there is no such agreement, “Disability” shall mean the total and permanent disability of the Participant as defined by, or determined under, the Company’s long-term disability benefit plan.
(2) “Cause” has the meaning given to such term in an employment agreement between the Company or any Related Company and the Participant or, if not defined therein or if there is no such agreement, “Cause” means (i) incompetence or negligence in the discharge of, or inattention to or neglect of or failure to perform, the duties and responsibilities assigned to the Participant; fraud, misappropriation or embezzlement; or a material breach of the Company’s Code of Conduct (as in effect at the relevant time) or any of the Participant’s Obligations, all as determined by the Administrator (or his or her designee) in his or her discretion, or (ii) commission of any felony of which the Participant is finally adjudged guilty by a court of competent jurisdiction.
(3)  “Good Reason” has the meaning given to such term in an employment agreement between the Company or Related Company and the Participant, if any.  If there is no such agreement or if there is such an agreement but such term is not defined therein, the provisions of this Agreement that refer to “Good Reason” shall not apply, and the Participant shall not be entitled to any accelerated vesting hereunder in connection with any voluntary termination of the Participant’s employment.  
 (4) “Retire” and “Retirement” means:  (i) to retire after having attained at least 15 years of vesting service (as defined under the applicable Company or Related Company tax-qualified 401(k) savings plan) and a combination of age and years of vesting service that equals or exceeds 75 points, or (ii) retirement under any other circumstances determined in writing by the Administrator (or his 

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or her designee), provided that, in the case of either (i) or (ii) in this paragraph, the retirement was not occasioned by a discharge for Cause. 
(f) Vesting Schedule.  Except and to the extent provided in paragraphs 7(b), 7(c) and 7(d), nothing in this paragraph 7 shall alter the vesting schedule prescribed by paragraph 5.
(g) Conditions on Accelerated Vesting.  Notwithstanding any other provision herein or in the Plan, the Participant’s right to receive any accelerated vesting of the Units pursuant to paragraph 7(b) or paragraph 7(d) is subject to the conditions that (i) the Participant has not and does not commit a material breach of any of the Participant’s Obligations, and (ii) the Participant executes, within the time prescribed by the Company, a release satisfactory to the Company waiving any claims he or she may have against the Company and any Related Company and does not revoke such release within any revocation period provided by applicable law.  If such conditions are not met, paragraph 7(c) shall apply to the Units.
8.  Shareholder Rights.  The Participant shall have no rights as a shareholder with respect to the Units until the date (if any) on which the Participant becomes the holder of record with respect to any Shares that may be issued in payment of the Units as provided in Section 6 of the Plan.  Except as provided in the Plan or in this Agreement, no adjustment shall be made for dividends or other rights for which the record date occurs while the Units are outstanding.
9.  Amendment of Agreement.  Except to the extent required by law or specifically contemplated under this Agreement, neither the Administrator (or his or her designee) may, without the written consent of the Participant, change any term, condition or provision affecting the Units if the change would have a material adverse effect upon the Units or the Participant’s rights thereto.  Nothing in the preceding sentence shall preclude the Administrator (or his or her designee) from exercising administrative discretion with respect to the Plan or this Agreement, and the exercise of such discretion shall be final, conclusive and binding.  This discretion includes, but is not limited to, corrections of any errors, including but not limited to any administrative errors, and determining whether the Participant has been discharged for Cause, has a Disability, has Retired, has breached any of the Participant’s Obligations or has satisfied the requirements for vesting and payment under paragraphs 5 and 7 of this Agreement.
10.  Assignment.  The Units shall not be assigned, pledged or transferred except by will or by the laws of descent and distribution.
11.  Beneficiary.  The Participant shall designate a beneficiary in writing and in such manner as is acceptable to the Administrator (or his or her designee).  Each such designation shall revoke all prior designations by the Participant with respect to the Participant’s benefits under the Plan and shall be effective only when filed by the Participant with the Company during the Participant’s lifetime.  If the Participant fails to so designate a beneficiary, or if no such designated beneficiary survives the Participant, the Participant’s beneficiary shall be the Participant’s estate.
12.  Other Plans and Agreements.  Any payment received by the Participant pursuant to this Agreement shall not be taken into account as compensation in the determination of the Participant’s benefits under any pension, savings, life insurance, severance or other benefit plan maintained by the Company or a Related Company.  The Participant acknowledges that this Agreement or any prior award agreement shall not entitle the Participant to any other benefits under the Plan or any other plans maintained by the Company or a Related Company.
13.  Company and Related Company.  For purposes of this Agreement, “Company” means AOL Inc.  “Related Company” means (a) Verizon, (b) any Subsidiary of the Company or Verizon, or (c) any corporation, partnership, joint venture, or other entity in which the Company or Verizon holds a direct or indirect ownership or other proprietary interest of less than 50 percent at any time during the term of this Agreement but which, in the discretion of the Administrator, is treated as a Related Company for purposes of this Agreement.
14.  Employment Status.  The grant of the Units shall not be deemed to constitute a contract of employment for a particular term between the Company or a Related Company and the Participant, nor shall it constitute a right to remain in the employ of any such Company or Related Company.
15.  Tax Matters.
(a) Tax Withholding.  The Participant acknowledges that he shall be responsible for any taxes that arise in connection with this grant of Units, and the Company shall make such arrangements as it deems necessary for withholding of any taxes it determines are required to be withheld pursuant to any applicable law or regulation.  In the event the Units are paid in Shares as provided in Section 6 of the Plan, the Administrator may elect to satisfy the withholding requirement, in whole or in part, by having the Company withhold Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory withholding tax that could be imposed on the transaction in accordance with Section 13.2 of the Plan.
 (b) Limitation on Acceleration.   Notwithstanding any provision to the contrary in the Plan or this Agreement, subject to the terms of any employment agreement between the Company or any Related Company and the Participant that provides for the treatment of Units that is more favorable to the Participant than this paragraph 15(b), if the Payment (as hereinafter defined) due to the Participant hereunder as a result of any acceleration of vesting of the Units pursuant to paragraph 7 of this Agreement, either alone or together with all other Payments received or to be received by the Participant from the Company or any Related Company (collectively, the 

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“Aggregate Payments”), or any portion thereof, would be subject to the excise tax imposed by Section 4999 of the Code (or any successor thereto), the following provisions shall apply:
(i)  If the net amount that would be retained by the Participant after all taxes on the Aggregate Payments are paid would be greater than the net amount that would be retained by the Participant after all taxes are paid if the Aggregate Payments were limited to the largest amount that would result in no portion of the Aggregate Payments being subject to such excise tax, the Participant shall be entitled to receive the Aggregate Payments.
(ii) If, however, the net amount that would be retained by the Participant after all taxes were paid would be greater if the Aggregate Payments were limited to the largest amount that would result in no portion of the Aggregate Payments being subject to such excise tax, the Aggregate Payments to which the Participant is entitled shall be reduced to such largest amount.
As used herein, the term “Payment” shall mean any transfer of property within the meaning of Section 280G of the Code.
The determination of whether any reduction of Aggregate Payments is required and the timing and method of any such required reduction in Payments under this Agreement or in any such other Payments otherwise payable by the Company or any Related Company consistent with any such required reduction, shall be made by the Participant, including whether any portion of such reduction shall be applied against any cash or any shares of stock of the Company or any other securities or property to which the Participant would otherwise have been entitled under this Agreement or under any such other Payments, and whether to waive the right to the acceleration of the Payment due under this Agreement or any portion thereof or under any such other Payments or portions thereof, and all such determinations shall be conclusive and binding on the Company and the Related Companies.  To the extent that Payments hereunder or any such other Payments are not paid as a consequence of the limitation contained in this paragraph 15(b), then the Units (to the extent not so accelerated) and such other Payments (to the extent not vested) shall be deemed to remain outstanding and shall be subject to the provisions hereof and of the Plan as if no acceleration or vesting had occurred.  
The Company shall promptly pay, upon demand by the Participant, all legal fees, court costs, fees of experts and other costs and expenses which the Participant incurred in any actual, threatened or contemplated contest of the Participant’s interpretation of, or determination under, the provisions of this paragraph 15(b). 
16.  Compliance with Laws.  The granting and payment of the Units hereunder is subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.
17.  Administrator Authority.  The Administrator shall have complete discretion in the exercise of its rights, powers, and duties under this Agreement.  Any interpretation or construction of any provision of, and the determination of any question arising under, this Agreement shall be made by the Administrator in its discretion, as described in paragraph 9.  The Administrator may delegate ministerial, non-discretionary functions to individuals who are officers or employees of the Company or a Related Company or to third parties.
18.  Successors.  This Agreement shall be binding upon, and inure to the benefit of, any successor or successors of the Company and the person or entity to whom the Units may have been transferred by will, the laws of descent and distribution, or beneficiary designation.  All terms and conditions of this Agreement imposed upon the Participant shall, unless the context clearly indicates otherwise, be deemed, in the event of the Participant’s death, to refer to and be binding upon the Participant’s heirs and beneficiaries.  
19.  Construction.  In the event that any provision of this Agreement is held invalid or unenforceable, such provision shall be considered separate and apart from the remainder of this Agreement, which shall remain in full force and effect.  In the event that any provision, including any of the Participant’s Obligations, is held to be unenforceable for being unduly broad as written, such provision shall be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to applicable law and shall be enforced as amended.  The Units are intended not to be subject to any tax, interest or penalty under Section 409A of the Code, and this Agreement shall be construed and interpreted consistent with such intent.
20.  Defined Terms.  Except where the context clearly indicates otherwise, all capitalized terms used herein shall have the definitions ascribed to them by the Plan, and the terms of the Plan shall apply where appropriate.
21.  Execution of Agreement.  The Participant shall indicate his consent and acknowledgment to the terms of this Agreement (including the Participant’s Obligations) and the Plan by executing this Agreement pursuant to the instructions provided and otherwise shall comply with the requirements of paragraph 3.  In addition, by consenting to the terms of this Agreement and the Participant’s Obligations, the Participant expressly agrees and acknowledges that Fidelity or the Company may deliver all documents, statements and notices associated with the Plan and this Agreement to the Participant in electronic form.  The Participant and the Company hereby expressly agree that the use of electronic media to indicate confirmation, consent, signature, acceptance, agreement and delivery shall be legally valid and have the same legal force and effect as if the Participant and the Company executed this Agreement (including the Participant’s Obligations) in paper form.
22.    Applicable Law.  The validity, construction, interpretation and effect of this Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to the conflicts of laws provisions thereof.

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23.    Waiver of Jury Trial.  To the extent not prohibited by applicable law which cannot be waived, each party hereto hereby waives, and covenants that it will not assert (whether as plaintiff, defendant or otherwise), any right to trial by jury in any forum in respect of any suit, action, or other proceeding arising out of or based upon this Agreement.
24.    Submission to Jurisdiction; Service of Process.   Any and all disputes between a Participant and the Company or any Related Company relating to the award of Units granted hereunder or this Agreement (including any exhibits hereto) shall be brought only in a state or federal court of competent jurisdiction sitting in Manhattan, New York and each of the parties hereto hereby irrevocably submits to the jurisdiction of such courts for the purposes of any suit, action or other proceeding arising out of or based upon this Agreement.  Each of the parties hereto to the extent permitted by applicable law hereby waives, and agrees not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding brought in such courts, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that such suit, action or proceeding in the above-referenced courts is brought in an inconvenient forum, that the venue of such suit, action or proceedings, is improper or that this Agreement may not be enforced in or by such court.  Each of the parties hereto hereby consents to service of process by mail at its address to which notices are to be given pursuant to paragraph 25 hereof.
25.    Notice.  Any notice to the Company provided for in this Agreement shall be addressed to the Company in care of the Executive Vice President and Chief Administrative Officer of Verizon at 1095 Avenue of the Americas, New York, New York 10036, and any notice to the Participant shall be addressed to the Participant at the current address shown on the payroll of the Company, or to such other address as the Participant may designate to the Company in writing.  Any notice shall be delivered by hand, sent by telecopy, sent by overnight carrier, or enclosed in a properly sealed envelope as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service.
26.  Additional Remedies.  Notwithstanding the foregoing provisions of this Agreement, and in addition to any other rights or remedies, whether legal, equitable, or otherwise, that each of the parties to this Agreement may have (including the right of the Company to terminate the Participant for Cause or to involuntarily terminate the Participant without Cause), the Participant acknowledges that—
(a) The Participant’s Obligations are essential to the continued goodwill and profitability of the Company and any Related Company;
(b) The Participant has broad-based skills that will serve as the basis for other employment opportunities that are not prohibited by the Participant’s Obligations;
(c) When the Participant’s employment with the Company or any Related Company terminates, the Participant shall be able to earn a livelihood without violating any of the Participant’s Obligations;
(d) Irreparable damage to the Company or any Related Company shall result in the event that the Participant’s Obligations are not specifically enforced and that monetary damages will not adequately protect the Company and any Related Company from a breach of these Participant’s Obligations;
(e) If any dispute arises concerning the violation or anticipated or threatened violation by the Participant of any of the Participant’s Obligations, an injunction may be issued restraining such violation pending the determination of such controversy, and no bond or other security shall be required in connection therewith;
(f) The Participant’s Obligations shall continue to apply after any expiration, termination, or cancellation of this Agreement; and
(g) The Participant’s breach of any of the Participant’s Obligations shall result in the Participant’s immediate forfeiture of all rights and benefits, including all Units, under this Agreement. 

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Exhibit A – Participant’s Obligations

As part of the Agreement to which this Exhibit A is attached, you, the Participant, agree to the following obligations:

1. Effect of a Material Restatement of Financial Results; Recoupment; Company Policies Regarding Securities Transactions

(a)  General.  Notwithstanding anything in this Agreement to the contrary, you agree that, with respect to all Units granted to you on or after June 23, 2015 and all short-term incentive awards made to you on or after June 23, 2015, to the extent the Company or any Related Company is required to materially restate any financial results based upon your willful misconduct or gross negligence while employed by the Company or any Related Company (and where such restatement would have resulted in a lower payment being made to you), you will be required to repay all previously paid (i) Units and (ii) short-term incentive awards that were provided to you during the performance periods that are the subject of the restated financial results, plus a reasonable rate of interest.  For purposes of this paragraph, “willful misconduct” and “gross negligence” shall be as determined by the Administrator.  The Board (or, in the case of the financial results of Verizon, the Audit Committee of the Verizon Board of Directors) shall determine whether a material restatement of financial results has occurred.  If you do not repay the entire amount required under this paragraph, the Company may, to the extent permitted by applicable law, offset your obligation to repay against any source of income available to it, including but not limited to any money you may have in your nonqualified deferral accounts (if any).  

(b)  Requirements of Recoupment Policy or Applicable Law.  The repayment rights contained in paragraph 1(a) of Exhibit A shall be in addition to, and shall not limit, any other rights or remedies that the Company may have under law or in equity, including, without limitation, (i) any right that the Company or any Related Company may have under any Company or Related Company recoupment policy that may apply to you, or (ii) any right or obligation that the Company or any Related Company may have regarding the clawback of “incentive-based compensation” under Section 10D of the Securities Exchange Act of 1934, as amended (as determined by the applicable rules and regulations promulgated thereunder from time to time by the U.S. Securities and Exchange Commission) or under any other applicable law.  By accepting this award of Units, you agree and consent to the application, implementation and enforcement by the Company or any Related Company of any such recoupment policy (as it may be in effect from time to time) that may apply to you and any provision of applicable law relating to cancellation, rescission, payback or recoupment of compensation and expressly agree that the Company and any Related Company may take such actions as are permitted under any such policy (as applicable to you) or applicable law, such as the cancellation of Units and repayment of amounts previously paid with respect to any previously granted Units or short-term incentive awards, without further consent or action being required by you.

(c) Company Policies Regarding Securities Transactions.  By accepting this award of Units, you agree to comply with all Company and Related Company policies regarding trading in securities or derivative securities (including, without limitation, any such policies prohibiting trading on material inside information regarding the Company or a Related Company or any business with which the Company or a Related Company does business, any such policies prohibiting engaging in financial transactions that would allow you to benefit from a devaluation of the securities of the Company or a Related Company, and any additional policy that the Company or a Related Company may adopt prohibiting you from hedging your economic exposure to the securities of the Company or a Related Company), as such policies are in effect from time to time and for as long as such policies are applicable to you.

2. Noncompetition and Other Restrictive Covenants.  You and the Company are parties to an Employment Agreement dated March 29, 2012 (the “Employment Agreement”) that contains noncompetition and other restrictive covenants and a Confidentiality and Inventions Assignment Agreement dated March 29, 2012 (the “Confidentiality Agreement”) that contains non-solicitation and other restrictive covenants.  You hereby acknowledge and agree that the Employment Agreement and the Confidentiality Agreement and your obligations under each such agreement continue in effect and that such obligations constitute part of these Participant’s Obligations for all purposes under the Agreement.

3. Definitions. Except where clearly provided to the contrary or as otherwise defined in this Exhibit A, all capitalized terms used in this Exhibit A shall have the definitions given to those terms in the Agreement to which this Exhibit A is attached.

4. Agreement to Participant’s Obligations. You shall indicate your agreement to these Participant’s Obligations in accordance with the instructions provided in the Agreement, and your acceptance of the Agreement shall include your acceptance of these Participant’s Obligations.  As stated in paragraph 21 of the Agreement, you and the Company hereby expressly agree that the use of electronic media to indicate confirmation, consent, signature, acceptance, agreement and delivery shall be legally valid and have the same legal force and effect as if you and the Company executed these Participant’s Obligations in paper form.

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