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Exhibit 10.2

 
YAHOO! INC.
   1995 STOCK PLAN
   (MAY 1999 AMENDMENT)  

    1.  Purposes of the Plan.  The purposes of this 1995 Stock Plan are to attract and retain the best
available personnel for positions of substantial responsibility, to provide additional incentive to Employees and Consultants of the Company and its Subsidiaries and to promote the success of the
Company's business. Options granted under the Plan may be incentive stock options (as defined under Section 422 of the Code) or nonstatutory stock options, as determined by the Administrator at
the time of grant of an option and subject to the applicable provisions of Section 422 of the Code, as amended, and the regulations promulgated thereunder. Stock purchase rights may also be granted
under the Plan.

    2.  Definitions.  As used herein, the following definitions shall apply:

    (a) "Administrator" means the Board or any of its Committees appointed pursuant to Section 4 of the Plan.

    (b) "Affiliate" shall mean an entity (including a partnership or limited liability company) in which the Company,
directly or indirectly through any subsidiary, owns an equity interest, but which entity is not a Subsidiary.

    (c) "Applicable Laws" has the meaning set forth in Section 4(a) below.

    (d) "Board" means the Board of Directors of the Company.

    (e) "Code" means the Internal Revenue Code of 1986, as amended.

    (f)  "Committee" means the Committee appointed by the Board of Directors in accordance with Section 4(a) of the
Plan.

    (g) "Common Stock" means the Common Stock of the Company.

    (h) "Company" means Yahoo! Inc., a California corporation.

    (i)  "Consultant" means any person, including a Director, who is engaged by the Company or any Parent, Subsidiary or
Affiliate to render services and is compensated for such services.

    (j)  "Continuous Status as an Employee or Consultant" means the absence of any interruption or termination of service as
an Employee or Consultant. Continuous Status as an Employee or Consultant shall not be considered interrupted in the case of: (i) sick leave; (ii) military leave; (iii) any other
leave of absence approved by the Administrator, provided that such leave is for a period of not more than ninety (90) days, unless reemployment upon the expiration of such leave is guaranteed by
contract or statute, or unless provided otherwise pursuant to Company policy adopted from time to time; or (iv) in the case of transfers between locations of the Company or between the Company,
its Subsidiaries or their respective successors. For purposes of this Plan, a change in status from an Employee to a Consultant or from a Consultant to an Employee will not constitute an interruption
of Continuous Status as an Employee or Consultant.

    (k) "Director" means a member of the Board.

    (l)  "Employee" means any person, including Named Executives, Officers and Directors, employed by the Company or any
Parent, Subsidiary or Affiliate of the Company, with the status of employment determined based upon such minimum number of hours or periods worked as shall be determined by the Administrator in its
discretion, subject to any requirements of the Code. The payment of a director's fee by the Company to a Director shall not be sufficient to constitute "employment" of the Director by the Company.

    (m) "Exchange Act" means the Securities Exchange Act of 1934, as amended.

    (n) "Fair Market Value" means, as of any date, the fair market value of Common Stock determined as follows:

     (i) If
the Common Stock is listed on any established stock exchange or a national market system including without limitation the National Market of the National
Association of Securities Dealers, Inc. Automated Quotation ("Nasdaq") System, its Fair Market Value shall be the closing sales price for such stock as quoted on such system on the date of
determination (if for a given day no sales were reported, the closing bid on that day shall be used), as such price is reported in The Wall Street Journal or such other source as the Administrator
deems reliable;

    (ii) If
the Common Stock is quoted on the Nasdaq System (but not on the National Market thereof) or regularly quoted by a recognized securities dealer but selling
prices are not reported, its Fair Market Value shall be the mean between the bid and asked prices for the Common Stock on the date of determination, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable; or

    (iii) In
the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Administrator.

    (o) "Incentive Stock Option" means an Option intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code, as designated in the applicable written option agreement.

    (p) "Named Executive" means any individual who, on the last day of the Company's fiscal year, is the chief executive
officer of the Company (or is acting in such capacity) or among the four highest compensated officers of the Company (other than the chief executive officer). Such officer status shall be determined
pursuant to the executive compensation disclosure rules under the Exchange Act.

    (q) "Nonstatutory Stock Option" means an Option not intended to qualify as an Incentive Stock Option, as designated in
the applicable written option agreement.

    (r) "Option" means a stock option granted pursuant to the Plan.

    (s) "Optioned Stock" means the Common Stock subject to an Option or a Stock Purchase Right.

    (t)  "Optionee" means an Employee or Consultant who receives an Option or a Stock Purchase Right.

    (u) "Parent" means a "parent corporation", whether now or hereafter existing, as defined in Section 424(e) of the
Code, or any successor provision.

    (v) "Plan" means this 1995 Stock Plan.

    (w) "Reporting Person" means an Officer, Director, or greater than ten percent shareholder of the Company within the
meaning of Rule 16a-2 under the Exchange Act, who is required to file reports pursuant to Rule 16a-3 under the Exchange Act.

    (x) "Restricted Stock" means shares of Common Stock acquired pursuant to a grant of a Stock Purchase Right under Section
11 below.

    (y) "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange Act, as the same may be amended from time to
time, or any successor provision.

    (z) "Share" means a share of the Common Stock, as adjusted in accordance with Section 13 of the Plan.

    (aa) "Stock Exchange" means any stock exchange or consolidated stock price reporting system on which prices for the
Common Stock are quoted at any given time.

    (bb) "Stock Purchase Right" means the right to purchase Common Stock pursuant to Section 11 below.

    (cc) "Subsidiary" means a "subsidiary corporation," whether now or hereafter existing, as defined in
Section 424(f) of the Code, or any successor provision.

    3.  Stock Subject to the Plan.  Subject to the provisions of Section 13 of the Plan, the maximum
aggregate number of Shares that may be optioned and sold under the Plan is 126,000,000 shares of Common Stock. The Shares may be authorized, but unissued, or reacquired Common Stock. If an Option
should expire or become unexercisable for any reason without having been exercised in full, the unpurchased Shares that were subject thereto shall, unless the Plan shall have been terminated, become
available for future grant under the Plan. In addition, any Shares of Common Stock which are retained by the Company upon exercise of an Option or Stock Purchase Right in order to satisfy the exercise
or purchase price for such Option or Stock Purchase Right or any withholding taxes due with respect to such exercise shall be treated as not issued and shall continue to be available under the Plan.

    4.  Administration of the Plan.  

    (a)  Multiple Administrative Bodies.  If permitted by Rule 16b-3 and by the legal requirements
relating to the administration of incentive stock option plans, if any, of applicable securities laws and the Code (collectively the "Applicable Laws"), grants under the Plan may be made by different
bodies with respect to Directors, Officers who are not Directors and Employees or Consultants who are not Reporting Persons.

    (b)  Administration With Respect to Reporting Persons.  With respect to grants of Options or Stock
Purchase Rights to Employees or Consultants who are Reporting Persons, grants under the Plan shall be made by (A) the Board, if the Board may make grants under the Plan in compliance with
Rule 16b-3, or (B) a Committee designated by the Board to make grants under the Plan, which committee shall be constituted in such a manner as to permit grants under the Plan to comply
with Rule 16b-3, to qualify grants of Options to Named Executives as performance-based compensation under Section 162(m) of the Code and otherwise so as to satisfy the Applicable Laws.

    (c)  Administration With Respect to Other Persons.  With respect to grants of Options or Stock Purchase
Rights to Employees or Consultants who are not Reporting Persons, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which committee shall be
constituted in such a manner as to satisfy the Applicable Laws.

    (d)  General.  If a Committee has been appointed pursuant to subsection (ii) or (iii) of
this Section 4(a), such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. From time to time the Board may increase the size of the Committee
and appoint additional members thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies, however caused, and remove all members of the Committee
and thereafter directly
administer the Plan, all to the extent permitted by the Applicable Laws, and, in the case of a Committee appointed under subsection (ii), to the extent permitted by Rule 16b-3, and to
the extent required under Section 162(m) of the Code to qualify grants of Options to Named Executives as performance-based compensation.

    (e)  Powers of the Administrator.  Subject to the provisions of the Plan and in the case of a Committee,
the specific duties delegated by the Board to such Committee, and subject to the approval of any relevant authorities, including the approval, if required, of any Stock Exchange, the Administrator
shall have the authority, in its discretion:

     (i) to
determine the Fair Market Value of the Common Stock, in accordance with Section 2(m) of the Plan;

    (ii) to
select the Consultants and Employees to whom Options and Stock Purchase Rights may from time to time be granted hereunder;

    (iii) to
determine whether and to what extent Options and Stock Purchase Rights or any combination thereof are granted hereunder;

    (iv) to
determine the number of shares of Common Stock to be covered by each such award granted hereunder;

    (v) to
approve forms of agreement for use under the Plan;

    (vi) to
determine the terms and conditions, not inconsistent with the terms of the Plan, of any award granted hereunder, including, but not limited to, the share price
and any restriction or limitation, the vesting of any Option or the acceleration of vesting or waiver of a forfeiture restructure, based in each case on such factors as the Administrator shall
determine, in its sole discretion;

   (vii) to
determine whether and under what circumstances an Option may be settled in cash under Section 10(g) instead of Common Stock;

   (viii) to
reduce the exercise price of any Option to the then current Fair Market Value if the Fair Market Value of the Common Stock covered by such Option shall have
declined since the date the Option was granted;

    (ix) to
determine the terms and restrictions applicable to Stock Purchase Rights and the Restricted Stock purchased by exercising such Stock Purchase Rights; and

    (x) to
construe and interpret the terms of the Plan and awards granted pursuant to the Plan;

    (xi) in
order to fulfill the purposes of the Plan and without amending the Plan, to modify grants of Options or Stock Purchase Rights to participants who are foreign
nationals or employed outside of the United States in order to recognize differences in local law, tax policies or customs.

    (f)  Effect of Administrator's Decision.  All decisions, determinations and interpretations of the
Administrator shall be final and binding on all holders of Options or Stock Purchase Rights.

    5.  Eligibility.  

    (a)  Recipients of Grants.  Nonstatutory Stock Options and Stock Purchase Rights may be granted to
Employees and Consultants; provided, however, that no person subject to the reporting requirements of Section 16 of the Exchange Act may receive an option or stock purchase right unless such
person is
employed by or a consultant to the Company or any Parent or Subsidiary. Incentive Stock Options may be granted only to Employees, provided, however, that Employees of an Affiliate shall be not be
eligible to receive Incentive Stock Options. An Employee or Consultant who has been granted an Option or Stock Purchase Right may, if he or she is otherwise eligible, be granted additional Options or
Stock Purchase Rights.

    (b)  Type of Option.  Each Option shall be designated in the written option agreement as either an
Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designations, to the extent that the aggregate Fair Market Value of Shares with respect to which Options designated
as Incentive Stock Options are exercisable for the first time by any Optionee during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess
Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 5(b), Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair
Market Value of the Shares subject to an Incentive Stock Option shall be determined as of the date of the grant of such Option.

    (c)  No Employment Rights.  The Plan shall not confer upon any Optionee any right with respect to
continuation of employment or consulting relationship with the Company, nor shall it interfere in any way with such Optionee's right or the Company's right to terminate his or her employment or
consulting relationship at any time, with or without cause.

    6.  Term of Plan.  The Plan shall become effective upon the earlier to occur of its adoption by the Board
of Directors or its approval by the shareholders of the Company as described in Section 20 of the

Plan.
It shall continue in effect for a term of ten (10) years unless sooner terminated under Section 16 of the Plan.

    7.  Term of Option.  The term of each Option shall be the term stated in the Option Agreement; provided,
however, that the term shall be no more than ten (10) years from the date of grant thereof or such shorter term as may be provided in the Option Agreement and provided further that, in the case
of an Incentive Stock Option granted to an Optionee who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the
Company or any Parent or Subsidiary, the term of the Option shall be five (5) years from the date of grant thereof or such shorter term as may be provided in the written option agreement.

    8.  Limitation on Grants to Employees.  Subject to adjustment as provided in this Plan, the maximum
number of Shares which may be subject to Options granted to any one Employee under this Plan for any fiscal year of the Company shall be 1,500,000.

    9.  Option Exercise Price and Consideration.  

    (a)  Exercise Price.  The per share exercise price for the Shares to be issued pursuant to exercise of an
Option shall be such price as is determined by the Board and set forth in the applicable agreement, but shall be subject to the following:

     (i) In
the case of an Incentive Stock Option that is:

    (A) granted
to an Employee who, at the time of the grant of such Incentive Stock Option, owns stock representing more than ten percent (10%) of the voting power of all
classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant.

    (B) granted
to any other Employee, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.

    (ii) In
the case of a Nonstatutory Stock Option that is:

    (A) granted
to a person who, at the time of grant of such Option, is a Named Executive of the Company, the per Share exercise price shall be no less than 100% of the
Fair Market Value per Share on the date of grant; and

    (B) granted
to any person other than a Named Executive, the per Share exercise price shall be no less than 85% of the Fair Market Value per Share on the date of grant.

    (b)  Permissible Consideration.  The consideration to be paid for the Shares to be issued upon exercise
of an Option, including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant) and may consist
entirely of (1) cash, (2) check, (3) promissory note, (4) other Shares that (x) in the case of Shares acquired upon exercise of an Option, have been owned by the Optionee
for more than six months on the date of surrender or such other period as may be required to avoid a charge to the Company's earnings, and (y) have a Fair Market Value on the date of surrender equal
to the aggregate exercise price of the Shares as to which such Option shall be exercised, (5) authorization for the Company to retain from the total number of Shares as to which the Option is
exercised that number of Shares having a Fair Market Value on the date of exercise equal to the exercise price for the total number of Shares as to which the Option is exercised, (6) delivery
of a properly executed exercise notice together with such other documentation as the Administrator and the broker, if applicable, shall require to effect an exercise of the Option and delivery to the
Company of the sale or loan proceeds required to pay the exercise price and any applicable income or employment taxes, (7) any combination of the foregoing methods of payment, or
(9) such other consideration and method of payment for the issuance of Shares to the extent permitted under Applicable Laws. In making its determination as to the type of consideration to
accept, the Administrator shall consider if acceptance of such consideration may be reasonably expected to benefit the Company.

    10.  Exercise of Option.  

    (a)  Procedure for Exercise; Rights as a Shareholder.  Any Option granted hereunder shall be exercisable
at such times and under such conditions as determined by the Administrator, and reflected in the written option agreement, which may include vesting requirements and/or performance criteria with
respect to the Company and/or the Optionee.

    An
Option may not be exercised for a fraction of a Share.

    An
Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option by the person entitled to
exercise the Option and the Company has received full payment for the Shares with respect to which the Option is exercised. Full payment may, as authorized by the Board, consist of any consideration
and method of payment allowable under Section 9(b) of the Plan. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of
the Company) of the stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, not
withstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly upon exercise of the Option. No adjustment will be made for a dividend or other
right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 13 of the Plan.

    Exercise
of an Option in any manner shall result in a decrease in the number of Shares that thereafter may be available, both for purposes of the Plan and for sale under the Option,
by the number of Shares as to which the Option is exercised.

    (b)  Termination of Employment or Consulting Relationship.  Subject to Section 10(c), in the event
of termination of an Optionee's Continuous Status as an Employee or Consultant with the Company, such Optionee may, but only within three (3) months (or such other period of time not less than
thirty (30) days and not more than twelve (12) months as is determined by the Administrator, with such determination in the case of an Incentive Stock Option being made at the time of grant of the
Option and not exceeding three (3) months) after the date of such termination (but in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), exercise
his or her Option to the extent that the Optionee was entitled to exercise it at the date of such termination. To the extent that Optionee was not entitled to exercise the Option at the date of such
termination, or if Optionee does not exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate. No termination shall be deemed to occur and this
Section 10(b) shall not apply if (I) the Optionee is a Consultant who becomes an Employee; or (ii) the Optionee is an Employee who becomes a Consultant.

    (c)  Disability of Optionee.  Notwithstanding Section 10(b) above, in the event of termination of
an Optionee's Continuous Status as an Employee or Consultant as a result of his or her total and permanent disability (within the meaning of Section 22(e)(3) of the Code), Optionee may, but
only within twelve (12) months from the date of such termination (but in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), exercise the Option
to the extent otherwise entitled to exercise it at the date of such termination. To the extent that Optionee was not entitled to exercise the Option at the date of termination, or if Optionee does not
exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate.

    (d)  Death of Optionee.  In the event of the death of an Optionee during the period of Continuous Status
as an Employee or Consultant, or within thirty (30) days following the termination of the Optionee's Continuous Status as an Employee or Consultant, the Option may be exercised, at any time within
twelve (12) months following the date of death (but in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), by the Optionee's estate or by a person
who acquired the right to exercise the Option by bequest or inheritance, but only to the extent the Optionee was entitled to exercise the Option at the date of death or, if earlier, the date of
termination of the Continuous Status as an Employee or Consultant. To the extent that Optionee was not entitled to exercise the Option at the date of death or termination, as the case may be, or if
Optionee does not exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate.

    (e)  Extension of Exercise Period.  Notwithstanding the limitations set forth in Sections 10(b),
(c) and (d) above, the Administrator has full power and authority to extend the period of time for which any Option granted under the Plan is to remain exercisable following termination
of an Optionee's Continuous Status as an Employee or Consultant from the limited period set forth in the written option agreement to such greater period of time as the Administrator shall deem
appropriate; provided, however, that in no event shall such Option be exercisable after the specified expiration date of the Option term.

    (f)  Rule 16b-3.  Options granted to Reporting Persons shall comply with Rule 16b-3 and shall
contain such additional conditions or restrictions as may be required thereunder to qualify for the maximum exemption for Plan transactions.

    (g)  Buyout Provisions.  The Administrator may at any time offer to buy out for a payment in cash or
Shares, an Option previously granted, based on such terms and conditions as the Administrator shall establish and communicate to the Optionee at the time that such offer is made.

    11.  Stock Purchase Rights.  

    (a)  Rights to Purchase.  Stock Purchase Rights may be issued either alone, in addition to, or in tandem
with other awards granted under the Plan and/or cash awards made outside of the Plan. After the Administrator determines that it will offer Stock Purchase Rights under the Plan, it shall advise the
offeree in writing of the terms, conditions and restrictions related to the offer, including the number of Shares that such person shall be entitled to purchase, the price to be paid (which price
shall not be less than 85% of the Fair Market Value of the Shares as of the date of the offer), and the time within which such person must accept such offer, which shall in no event exceed thirty (30)
days from the date upon which the Administrator made the determination to grant the Stock Purchase Right. The offer shall be accepted by execution of a Restricted Stock purchase agreement in the form
determined by the Administrator. Shares purchased pursuant to the grant of a Stock Purchase Right shall be referred to herein as "Restricted Stock."

    (b)  Repurchase Option.  Unless the Administrator determines otherwise, the Restricted Stock purchase
agreement shall grant the Company a repurchase option exercisable upon the voluntary or involuntary termination of the purchaser's employment with the Company for any reason (including death or
disability). The purchase price for Shares repurchased pursuant to the Restricted Stock purchase agreement shall be the original purchase price paid the purchaser and may be paid by cancellation of
any indebtedness of the Purchaser to the Company. The repurchase option shall lapse at such rate as the Administrator may determine.

    (c)  Other Provisions.  The Restricted Stock purchase agreement shall contain such other terms,
provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion. In addition, the provisions of Restricted Stock purchase agreements need not
be the same with respect to each purchaser.

    (d)  Rights as a Shareholder.  Once the Stock Purchase Right is exercised, the purchaser shall have the
rights equivalent to those of a shareholder, and shall be a shareholder when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company. No adjustment will be
made for a dividend or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 13 of the Plan.

    12.  Stock Withholding to Satisfy Withholding Tax Obligations.  At the discretion of the Administrator,
Optionees may satisfy withholding obligations as provided in this paragraph. When an Optionee incurs tax liability in connection with an Option or Stock Purchase Right, which tax liability is subject
to tax withholding under applicable tax laws, and the Optionee is obligated to pay the Company an amount
required to be withheld under applicable tax laws, the Optionee may satisfy the withholding tax obligation by one or some combination of the following methods: (a) by cash payment, or
(b) out of Optionee's current compensation, (c) if permitted by the Administrator, in its discretion, by surrendering to the Company Shares that (I) in the case of Shares previously
acquired from the Company, have been owned by the Optionee for more than six months on the date of surrender, and (ii) have a fair market value on the date of surrender equal to or less than
Optionee's marginal tax rate times the ordinary income recognized,

or
(d) by electing to have the Company withhold from the Shares to be issued upon exercise of the Option, or the Shares to be issued in connection with the Stock Purchase Right, if any, that
number of Shares having a fair market value equal to the amount required to be withheld. For this purpose, the fair market value of the Shares to be withheld shall be determined on the date that the
amount of tax to be withheld is to be determined (the "Tax Date").

    Any
surrender by a Reporting Person of previously owned Shares to satisfy tax withholding obligations arising upon exercise of this Option must comply with the applicable provisions
of Rule 16b-3.

    All
elections by an Optionee to have Shares withheld to satisfy tax withholding obligations shall be made in writing in a form acceptable to the Administrator and shall be subject to
the following restrictions:

    (a) the
election must be made on or prior to the applicable Tax Date;

    (b) once
made, the election shall be irrevocable as to the particular Shares of the Option or Stock Purchase Right as to which the election is made; and

    (c) all
elections shall be subject to the consent or disapproval of the Administrator.

    In
the event the election to have Shares withheld is made by an Optionee and the Tax Date is deferred under Section 83 of the Code because no election is filed under Section
83(b) of the Code, the Optionee shall receive the full number of Shares with respect to which the Option or Stock Purchase Right is exercised but such Optionee shall be unconditionally
obligated to tender back to the Company the proper number of Shares on the Tax Date.

    13.  Adjustments Upon Changes in Capitalization, Corporate Transactions.  

    (a)  Changes in Capitalization.  Subject to any required action by the shareholders of the Company, the
number of shares of Common Stock covered by each outstanding Option or Stock Purchase Right, and the number of shares of Common Stock that have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or that have been returned to the Plan upon cancellation or expiration of an Option or Stock Purchase Right, the maximum number of
Shares of Common Stock for which Options may be granted to any Employee under Section 8 of the Plan and the price per share of Common Stock covered by each such outstanding Option or Stock Purchase
Right, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination,
recapitalization or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration by the Company;
provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Such adjustment shall be made by the
Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option or
Stock Purchase Right.

    (b)  Corporate Transactions.  In the event of the proposed dissolution or liquidation of the Company, the
Option will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Administrator. The Administrator may, in the exercise of its sole discretion in
such instances, declare that any Option shall terminate as of a date fixed by the Administrator and give each Optionee the right to exercise his or her Option as to all or any part of the Optioned
Stock, including Shares as to which the Option would not otherwise be exercisable. In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the
Company with or into another corporation, the Option shall be assumed or an equivalent option shall be substituted by such successor corporation or a parent or subsidiary of such successor
corporation, unless the Administrator determines, in the exercise of its sole discretion and in lieu of such assumption or substitution, that the Optionee shall have the right to exercise the Option
as to some or all of the Optioned Stock, including Shares as to which the Option would not otherwise be

exercisable.
If the Administrator makes an Option exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Administrator shall notify the Optionee that the
Option shall be exercisable for a period of thirty (30) days from the date of such notice, and the Option will terminate upon the expiration of such period.

    14.  Non-transferability of Options and Stock Purchase Rights.  Options and Stock Purchase Rights may not
be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution; provided, however, that the Administrator may in its
discretion grant transferable Nonstatutory Stock Options pursuant to option agreements specifying (i) the manner in which such Nonstatutory Stock Options are transferable and (ii) that
any such transfer shall be subject to the Applicable Laws. Options and Stock Purchase Rights may be exercised or purchased during the lifetime of the Optionee or Stock Purchase Rights Holder only by
the Optionee, Stock Purchase Rights Holder or a transferee permitted by this Section 14.

    15.  Time of Granting Options and Stock Purchase Rights.  The date of grant of an Option or Stock
Purchase Right shall, for all purposes, be the date on which the Administrator makes the determination granting such Option or Stock Purchase Right, or such other date as is determined by the Board.
Notice of the determination shall be given to each Employee or Consultant to whom an Option or Stock Purchase Right is so granted within a reasonable time after the date of such grant.

    16.  Amendment and Termination of the Plan.  

    (a)  Amendment and Termination.  The Board may amend or terminate the Plan from time to time in such
respects as the Board may deem advisable; provided that, the following revisions or amendments shall require approval of the shareholders of the Company in the manner described in Section 20 of
the Plan:

     (i) any
increase in the number of Shares subject to the Plan, other than an adjustment under Section 14 of the Plan;

    (ii) any
change in the designation of the class of persons eligible to be granted Options; or

    (iii) any
change in the limitation on grants to employees as described in Section 8 of the Plan or other changes which would require shareholder approval to
qualify options granted hereunder as performance-based compensation under Section 162(m) of the Code.

    (b)  Shareholder Approval.  If any amendment requiring shareholder approval under Section 16(a) of
the Plan is made subsequent to the first registration of any class of equity securities by the Company under Section 12 of the Exchange Act, such shareholder approval shall be solicited as described
in Section 20 of the Plan.

    (c)  Effect of Amendment or Termination.  Any such amendment or termination of the Plan shall not affect
Options already granted and such Options shall remain in full force and effect as if this Plan had not been amended or terminated, unless mutually agreed otherwise between the Optionee and the Board,
which agreement must be in writing and signed by the Optionee and the Company.

    17.  Conditions Upon Issuance of Shares.  Shares shall not be issued pursuant to the exercise of an
Option or Stock Purchase Right unless the exercise of such Option or Stock Purchase Right and the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of
law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, and the requirements of any Stock Exchange. As a
condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for
investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by law.

    18.  Reservation of Shares.  The Company, during the term of this Plan, will at all times reserve and
keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. The inability of the Company to obtain authority from any regulatory body having jurisdiction,
which authority

is
deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such
Shares as to which such requisite authority shall not have been obtained.

    19.  Agreements.  Options and Stock Purchase Rights shall be evidenced by written agreements in such form
as the Administrator shall approve from time to time.

    20.  Shareholder Approval.  

    (a) Continuance
of the Plan shall be subject to approval by the shareholders of the Company within twelve (12) months before or after the date the Plan is adopted. Such
shareholder approval shall be obtained in the manner and to the degree required under applicable federal and state law and the rules of any stock exchange upon which the Shares are listed.

    (b) In
the event that the Company registers any class of equity securities pursuant to Section 12 of the Exchange Act, any required approval of the shareholders
of the Company obtained after such registration shall be solicited substantially in accordance with Section 14(a) of the Exchange Act and the rules and regulations promulgated
thereunder.

    (c) If
any required approval by the shareholders of the Plan itself or of any amendment thereto is solicited at any time otherwise than in the manner described in
Section 20(b) hereof, then the Company shall, at or prior to the first annual meeting of shareholders held subsequent to the later of (1) the first registration of any class of equity
securities of the Com-pany under Section 12 of the Exchange Act or (2) the granting of an Option hereunder to an officer or director after such registration, do the following:

     (i) furnish
in writing to the holders entitled to vote for the Plan substantially the same information that would be required (if proxies to be voted with respect to
approval or disapproval of the Plan or amendment were then being solicited) by the rules and regulations in effect under Section 14(a) of the Exchange Act at the time such information is
furnished; and

    (ii) file
with, or mail for filing to, the Securities and Exchange Commission four copies of the written information referred to in subsection (i) hereof not
later than the date on which such information is first sent or given to shareholders.

    21.  Information to Optionees.  The Company shall provide to each Optionee, during the period for which
such Optionee has one or more Options outstanding, copies of all annual reports and other information which are provided to all shareholders of the Company.

 

Exhibit 10.16

 
YAHOO! INC.
   1996 DIRECTORS' STOCK OPTION PLAN
   (MAY 1999 AMENDMENT)  

    1.  Purposes of the Plan.  The purposes of this Directors' Stock Option Plan are to attract and retain
the best available personnel for service as Directors of the Company, to provide additional incentive to the Outside Directors of the Company to serve as Directors, and to encourage their continued
service on the Board.

    All
options granted hereunder shall be "nonstatutory stock options".

    2.  Definitions.  As used herein, the following definitions shall apply:

    (a) "Board" shall mean the Board of Directors of the Company.

    (b) "Code" shall mean the Internal Revenue Code of 1986, as amended.

    (c) "Common Stock" shall mean the Common Stock of the Company.

    (d) "Company" shall mean Yahoo! Inc., a California corporation.

    (e) "Continuous Status as a Director" shall mean the absence of any interruption or termination of service as a
Director.

    (f)  "Director" shall mean a member of the Board.

    (g) "Employee" shall mean any person, including officers and directors, employed by the Company or any Parent or
Subsidiary of the Company. The payment of a director's fee by the Company shall not be sufficient in and of itself to constitute "employment" by the Company.

    (h) "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

    (i)  "Option" shall mean a stock option granted pursuant to the Plan. All options shall be nonstatutory stock options
(i.e., options that are not intended to qualify as incentive stock options under Section 422 of the Code).

    (j)  "Optioned Stock" shall mean the Common Stock subject to an Option.

    (k) "Optionee" shall mean an Outside Director who receives an Option.

    (l)  "Outside Director" shall mean a Director who is not an Employee.

    (m) "Parent" shall mean a "parent corporation", whether now or hereafter existing, as defined in Section 424(e)
of the Code.

    (n) "Plan" shall mean this 1996 Directors' Stock Option Plan.

    (o) "Share" shall mean a share of the Common Stock, as adjusted in accordance with Section 11 of the Plan.

    (p) "Subsidiary" shall mean a "subsidiary corporation", whether now or hereafter existing, as defined in
Section 424(f) of the Code.

    3.  Stock Subject to the Plan.  Subject to the provisions of Section 11 of the Plan, the maximum
aggregate number of Shares which may be optioned and sold under the Plan is 1,200,000 Shares (the "Pool") of Common Stock. The Shares may be authorized, but unissued, or reacquired Common Stock.

    If
an Option should expire or become unexercisable for any reason without having been exercised in full, the unpurchased Shares which were subject thereto shall, unless the Plan shall
have been terminated, become available for future grant under the Plan. If Shares which were acquired upon exercise of an

Option
are subsequently repurchased by the Company, such Shares shall not in any event be returned to the Plan and shall not become available for future grant under the Plan.

    4.  Administration of and Grants of Options Under the Plan.  

    (a)  Administrator.  Except as otherwise required herein, the Plan shall be administered by the Board.

    (b)  Procedure for Grants.  All grants of Options hereunder shall be automatic and nondiscretionary and
shall be made strictly in accordance with the following provisions:

     (i) No
person shall have any discretion to select which Outside Directors shall be granted Options or to determine the number of Shares to be covered by Options granted
to Outside Directors.

    (ii) Each
Outside Director shall be automatically granted an Option to purchase 50,000 Shares (the "First Option") on the date on which such person first becomes an
Outside Director, whether through election by the shareholders of the Company or appointment by the Board of Directors to fill a vacancy.

    (iii) Each
Outside Director shall be automatically granted an Option to purchase 30,000 Shares (a "Subsequent Option") on the date of each Annual Meeting of the
Company's Shareholders (which Subsequent Option shall be decreased to 20,000 Shares commencing with the grants made on the date of the Company's 2000 Annual Meeting) immediately following which such
Outside Director is serving on the Board, with the first such grant being made at the 1997 Annual Meeting, provided that, on such date, he or she shall have served on the Board for at least six
(6) months prior to the date of such Annual Meeting.

    (iv) Notwithstanding
the provisions of subsections (ii) and (iii) hereof, in the event that a grant would cause the number of Shares subject to outstanding
Options plus the number of Shares previously purchased upon exercise of Options to exceed the Pool, then each such automatic grant shall be for that number of Shares determined by dividing the total
number of Shares remaining available for grant by the number of Outside Directors receiving an Option on such date on the automatic grant date. Any further grants shall then be deferred until such
time, if any, as additional Shares become available for grant under the Plan through action of the shareholders to increase the number of Shares which may be issued under the Plan or through
cancellation or expiration of Options previously granted hereunder.

    (v) Notwithstanding
the provisions of subsections (ii) and (iii) hereof, any grant of an Option made before the Company has obtained shareholder approval
of the Plan in accordance with Section 17
hereof shall be conditioned upon obtaining such shareholder approval of the Plan in accordance with Section 17 hereof.

    (vi) The
terms of each First Option granted hereunder shall be as follows:

    (1) the
First Option shall be exercisable only while the Outside Director remains a Director of the Company, except as set forth in Section 9 hereof.

    (2) the
exercise price per Share shall be 100% of the fair market value per Share on the date of grant of the First Option, determined in accordance with
Section 8 hereof.

    (3) the
First Option shall become exercisable in installments cumulatively as to 1/48 of the Shares subject to the First Option at the end of each month
following the date of grant of the Option.

   (vii) The
terms of each Subsequent Option granted hereunder shall be as follows:

2

    (1) the
Subsequent Option shall be exercisable only while the Outside Director remains a Director of the Company, except as set forth in Section 9 hereof.

    (2) the
exercise price per Share shall be 100% of the fair market value per Share on the date of grant of the Subsequent Option, determined in accordance with Section 8
hereof.

    (3) the
Subsequent Option shall become exercisable as to twenty five percent (25%) of the Shares subject to the Subsequent Option on the first anniversary of the date
of grant of the Subsequent Option and shall thereafter become exercisable in installments cumulatively as to 1/48 of the Shares subject to the Subsequent Option at the end of each month
following such first anniversary; provided, however, that Subsequent Options granted prior to the date of the Company's 2000 Annual Meeting of Shareholders shall become exercisable as to 100% of the
Shares subject to the Subsequent Option on the four-year anniversary of the date of grant of the Subsequent Option.

    (c)  Powers of the Board.  Subject to the provisions and restrictions of the Plan, the Board shall have
the authority, in its discretion: (i) to determine, upon review of relevant information and in accordance with Section 8(b) of the Plan, the fair market value of the Common Stock;
(ii) to determine the exercise price per share of Options to be granted, which exercise price shall be determined in accordance with Section 8(a) of the Plan; (iii) to interpret
the Plan; (iv) to prescribe, amend and rescind rules and regulations relating to the Plan; (v) to authorize any person to execute on behalf of the Company any instrument required
to effectuate the grant of an Option previously granted hereunder; and (vi) to make all other determinations deemed necessary or advisable for the administration of the Plan.

    (d)  Effect of Board's Decision.  All decisions, determinations and interpretations of the Board shall be
final and binding on all Optionees and any other holders of any Options granted under the Plan.

    (e)  Suspension or Termination of Option.  If the President or his or her designee reasonably believes
that an Optionee has committed an act of misconduct, the President may suspend the Optionee's right to exercise any option pending a determination by the Board of Directors (excluding the Outside
Director accused of such misconduct). If the Board of Directors (excluding the Outside Director accused of such misconduct) determines an Optionee has committed an act of embezzlement, fraud,
dishonesty, nonpayment of an obligation owed to the Company, breach of fiduciary duty or deliberate disregard of the Company rules resulting in loss, damage or injury to the Company, or if an
Optionee makes an unauthorized disclosure of any Company trade secret or confidential information, engages in any conduct
constituting unfair competition, induces any Company customer to breach a contract with the Company or induces any principal for whom the Company acts as agent to terminate such agency relationship,
neither the Optionee nor his or her estate shall be entitled to exercise any option whatsoever. In making such determination, the Board of Directors (excluding the Outside Director accused of such
misconduct) shall act fairly and shall give the Optionee an opportunity to appear and present evidence on Optionee's behalf at a hearing before the Board or a committee of the Board.

    5.  Eligibility.  Options may be granted only to Outside Directors. All Options shall be automatically
granted in accordance with the terms set forth in Section 4(b) hereof. An Outside Director who has been granted an Option may, if he or she is otherwise eligible, be granted an additional
Option or Options in accordance with such provisions.

    The
Plan shall not confer upon any Optionee any right with respect to continuation of service as a Director or nomination to serve as a Director, nor shall it interfere in any way
with any rights which the Director or the Company may have to terminate his or her directorship at any time.

3

    6.  Term of Plan; Effective Date.  The Plan shall become effective on the effectiveness of the
registration statement under the Securities Act of 1933 relating to the Company's initial public offering of securities. It shall continue in effect for a term of ten (10) years unless sooner
terminated under Section 13 of the Plan.

    7.  Term of Options.  The term of each Option shall be ten (10) years from the date of grant
thereof.

    8.  Exercise Price and Consideration.  

    (a)  Exercise Price.  The per Share exercise price for the Shares to be issued pursuant to exercise of an
Option shall be 100% of the fair market value per Share on the date of grant of the Option.

    (b)  Fair Market Value.  The fair market value shall be determined by the Board; provided, however, that
where there is a public market for the Common Stock, the fair market value per Share shall be the mean of the bid and asked prices of the Common Stock in the over-the-counter market on the date of
grant, as reported in The Wall Street Journal (or, if not so reported, as otherwise reported by the National Association of Securities Dealers Automated Quotation ("Nasdaq") System) or, in the event
the Common Stock is traded on the Nasdaq National Market or listed on a stock exchange, the fair market value per Share shall be the closing price on such system or exchange on the date of grant of
the Option, as reported in The Wall Street Journal. With respect to any Options granted hereunder concurrently with the initial effectiveness of the Plan, the fair market value shall be the Price to
Public as set forth in the final prospectus relating to such initial public offering.

    (c)  Form of Consideration.  The consideration to be paid for the Shares to be issued upon exercise of an
Option shall consist entirely of cash, check, other Shares of Common Stock having a fair market value on the date of surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised (which, if acquired from the Company, shall have been held for at least six months), or any combination of such methods of payment and/or any other consideration or method of
payment as shall be permitted under applicable corporate law.

    9.  Exercise of Option.  

    (a)  Procedure for Exercise; Rights as a Shareholder.  Any Option granted hereunder shall be exercisable
at such times as are set forth in Section 4(b) hereof; provided, however, that no Options shall be exercisable prior to shareholder approval of the Plan in accordance with Section 17
hereof has been obtained.

    An
Option may not be exercised for a fraction of a Share.

    An
Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option by the person entitled to
exercise the Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company. Full payment may consist of any consideration and method of payment
allowable under Section 8(c) of the Plan. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the
stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the
Option. A share certificate for the number of Shares so acquired shall be issued to the Optionee as soon as practicable after exercise of the Option. No adjustment will be made for a dividend or other
right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 11 of the Plan.

    Exercise
of an Option in any manner shall result in a decrease in the number of Shares which thereafter may be available, both for purposes of the Plan and for sale under the Option,
by the number of Shares as to which the Option is exercised.

4

    (b)  Termination of Status as a Director.  If an Outside Director ceases to serve as a Director, he or
she may, but only within ninety (90) days after the date he or she ceases to be a Director of the Company, exercise his or her Option to the extent that he or she was entitled to exercise it at the
date of such termination. Notwithstanding the foregoing, in no event may the Option be exercised after its term set forth in Section 7 has expired. To the extent that such Outside Director was not
entitled to exercise an Option at the date of such termination, or does not exercise such Option (which he or she was entitled to exercise) within the time specified herein, the Option shall
terminate.

    (c)  Disability of Optionee.  Notwithstanding Section 9(b) above, in the event a Director is
unable to continue his or her service as a Director with the Company as a result of his or her total and permanent disability (as defined in Section 22(e)(3) of the Internal Revenue Code), he
or she may, but only within six (6) months (or such other period of time not exceeding twelve (12) months as is determined by the Board) from the date of such termination, exercise his or her
Option to the extent he or she was entitled to exercise it at the date of such termination. Notwithstanding the foregoing, in no event may the Option be exercised after its term set forth in
Section 7 has expired. To the extent that he or she was not entitled to exercise the Option at the date of termination, or if he or she does not exercise such Option (which he or she was
entitled to exercise) within the time specified herein, the Option shall terminate.

    (d)  Death of Optionee.  In the event of the death of an Optionee:

     (i) During
the term of the Option who is, at the time of his or her death, a Director of the Company and who shall have been in Continuous Status as a Director since
the date of grant of the Option, the Option may be exercised, at any time within six (6) months following the date of death, by the Optionee's estate or by a person who acquired the right to
exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that would have accrued had the Optionee continued living and remained in Continuous Status as Director
for six (6) months (or such lesser
period of time as is determined by the Board) after the date of death. Notwithstanding the foregoing, in no event may the Option be exercised after its term set forth in Section 7 has expired.

    (ii) Within
three (3) months after the termination of Continuous Status as a Director, the Option may be exercised, at any time within six (6) months
following the date of death, by the Optionee's estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that had
accrued at the date of termination. Notwithstanding the foregoing, in no event may the option be exercised after its term set forth in Section 7 has expired.

    10.  Nontransferability of Options.  The Option may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of descent or distribution or pursuant to a qualified domestic relations order (as defined by the Code or the rules
thereunder). The designation of a beneficiary by an Optionee does not constitute a transfer. An Option may be exercised during the lifetime of an Optionee only by the Optionee or a transferee
permitted by this Section.

    11.  Adjustments Upon Changes in Capitalization; Corporate Transactions.  

    (a)  Adjustment.  Subject to any required action by the shareholders of the Company, the number of shares
of Common Stock covered by each outstanding Option, and the number of shares of Common Stock which have been authorized for issuance under the Plan but as to which no Options have yet been granted or
which have been returned to the Plan upon cancellation or expiration of an Option, as well as the price per share of Common Stock covered by each such outstanding Option, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common
Stock, or any other increase or decrease in the number of issued

5

shares
of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been
"effected without receipt of consideration." Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided
herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to an Option.

    (b)  Corporate Transactions.  In the event of (i) a dissolution or liquidation of the Company,
(ii) a sale of all or substantially all of the Company's assets, (iii) a merger or consolidation in which the Company is not the surviving corporation, or (iv) any other capital
reorganization in which more than fifty percent (50%) of the shares of the Company entitled to vote are exchanged, the Company shall give to the Eligible Director, at the time of adoption of the plan
for liquidation, dissolution, sale, merger, consolidation or reorganization, either a reasonable time thereafter within which to exercise the Option, including Shares as to which the Option would not
be otherwise exercisable, prior to the effectiveness of such liquidation, dissolution, sale, merger, consolidation or reorganization, at the end of which time the Option shall terminate, or the right
to exercise the Option, including Shares as to which the Option would not be otherwise exercisable (or receive a substitute option with comparable terms), as to an equivalent number of shares of stock
of the corporation succeeding the Company or acquiring its business by reason of such liquidation, dissolution, sale, merger, consolidation or reorganization.

    12.  Time of Granting Options.  The date of grant of an Option shall, for all purposes, be the date
determined in accordance with Section 4(b) hereof. Notice of the determination shall be given to each Outside Director to whom an Option is so granted within a reasonable time after the date of
such grant.

    13.  Amendment and Termination of the Plan.  

    (a)  Amendment and Termination.  The Board may amend or terminate the Plan from time to time in such
respects as the Board may deem advisable; provided that, to the extent necessary and desirable to comply with Rule 16b-3 under the Exchange Act (or any other applicable law or regulation), the
Company shall obtain approval of the shareholders of the Company to Plan amendments to the extent and in the manner required by such law or regulation. Notwithstanding the foregoing, the provisions
set forth in Section 4 of this Plan (and any other Sections of this Plan that affect the formula award terms required to be specified in this Plan by Rule 16b-3) shall not be amended more than
once every six months, other than to comport with changes in the Code, the Employee Retirement Income Security Act of 1974, as amended, or the rules thereunder.

    (b)  Effect of Amendment or Termination.  Any such amendment or termination of the Plan that would impair
the rights of any Optionee shall not affect Options already granted to such Optionee and such Options shall remain in full force and effect as if this Plan had not been amended or terminated, unless
mutually agreed otherwise between the Optionee and the Board, which agreement must be in writing and signed by the Optionee and the Company.

    14.  Conditions Upon Issuance of Shares.  Shares shall not be issued pursuant to the exercise of an
Option unless the exercise of such Option and the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities
Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, state securities laws, and the requirements of any stock exchange upon which the Shares may then be
listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. As a condition to the exercise of an Option, the Company may require the person
exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such
Shares, if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned relevant provisions of law.

6

    15.  Reservation of Shares.  The Company, during the term of this Plan, will at all times reserve and
keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. Inability of the Company to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or
sell such Shares as to which such requisite authority shall not have been obtained.

    16.  Option Agreement.  Options shall be evidenced by written option agreements in such form as the Board
shall approve.

    17.  Shareholder Approval.  Continuance of the Plan shall be subject to approval by the shareholders of
the Company at or prior to the first annual meeting of shareholders held subsequent to the granting of an Option hereunder. If such shareholder approval is obtained at a duly held shareholders'
meeting, it may be obtained by the affirmative vote of the holders of a majority of the outstanding shares of the Company present or represented and entitled to vote thereon. If such shareholder
approval is obtained by written consent, it may be obtained by the written consent of the holders of a majority of the outstanding shares of the Company. Options may be granted, but not exercised,
before such shareholder approval.

7

QuickLinks

YAHOO! INC. 1995 STOCK PLAN (MAY 1999 AMENDMENT)

YAHOO! INC. 1996 DIRECTORS' STOCK OPTION PLAN (MAY 1999 AMENDMENT)<PAGE>

                                                                  EXHIBIT 10.12

                                  AMENDMENT NO. 1

          AMENDMENT NO. 1 dated as of May 6, 1999 among HEFTEL BROADCASTING
CORPORATION (the "BORROWER"); the SUBSIDIARY GUARANTORS listed on the
signature pages hereto; the LENDERS listed on the signature pages hereto (the
"LENDERS"); and THE CHASE MANHATTAN BANK, as administrative agent for the
Lenders (in such capacity, together with its successors in such capacity, the
"ADMINISTRATIVE AGENT").

          The Borrower, the Subsidiary Guarantors, the Lenders and the
Administrative Agent are parties to a Credit Agreement dated as of February
14, 1997 (as heretofore modified and supplemented and in effect on the date
hereof, the "CREDIT AGREEMENT") providing, subject to the terms and conditions
thereof, for extensions of credit to be made by said Lenders to the Borrower.
The Borrower, the Subsidiary Guarantors, the Lenders and the Administrative
Agent wish to amend the Credit Agreement in certain respects, and accordingly,
the parties hereto hereby agree as follows:

          Section 1.  DEFINITIONS.  Except as otherwise defined in this
Amendment No. 1, terms defined in the Credit Agreement (as amended hereby) are
used herein as defined therein.

          Section 2.  AMENDMENTS.  Subject to the satisfaction of the
conditions precedent specified in Section 4 below, but effective as of the
date hereof, the Credit Agreement shall be amended as follows:

          2.01.  References in the Credit Agreement (including references to
the Credit Agreement as amended hereby) to "this Agreement" (and indirect
references such as "hereunder", "hereby", "herein" and "hereof") shall be
deemed to be references to the Credit Agreement as amended hereby.

          2.02.  Section 2.17(b) of the Credit Agreement shall be amended by
replacing the dollar amount of "$30,000,000" therein in clause (i) of the last
sentence thereof with "$75,000,000".

          2.03.  Section 7.03(i) of the Credit Agreement is hereby amended by
replacing the dollar amount of "$30,000,000" therein with the dollar amount
"$75,000,000".

          Section 3.  REPRESENTATIONS AND WARRANTIES.  The Borrower represents
and warrants to the Lenders that the representations and warranties set forth
in Article IV of the Credit Agreement are true and complete on the date hereof
as if made on and as of the date hereof and as if each reference in said
Article IV to the Credit Agreement included reference to the Credit Agreement
as amended by this Amendment No. 1.

          Section 4.  CONDITIONS PRECEDENT.  As provided in Section 2 above,
the amendments to the Credit Agreement set forth in said Section 2 shall
become effective, as of the

<PAGE>

                                      -2-

date hereof, upon the execution and delivery by each of the Borrower, the
Subsidiary Guarantors, and Lenders representing Required Lenders.

          Section 5.  MISCELLANEOUS.  Except as herein provided, the Credit
Agreement shall remain unchanged and in full force and effect.  This Amendment
No. 1 may be executed in any number of counterparts, all of which taken
together shall constitute one and the same amendatory instrument and any of
the parties hereto may execute this Amendment No. 1 by signing any such
counterpart.  This Amendment No. 1 shall be governed by, and construed in
accordance with, the law of the State of New York.

<PAGE>

                                      -3-

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment
No. 1 to be duly executed and delivered as of the day and year first above
written.

                              HEFTEL BROADCASTING CORPORATION

                              By:      /s/ Jeffrey T. Hinson
                                  -------------------------------
                               Title:  Senior Vice President

                   SUBSIDIARY GUARANTORS
                   ---------------------

                              HEFTEL BROADCASTING TEXAS, L.P.
                                By Heftel GP Texas, Inc.,
                                 its general partner
                              HBC BROADCASTING TEXAS, INC.
                              HBC CHICAGO, INC.
                              HBC FLORIDA, INC.
                              HBC-LAS VEGAS, INC.
                              HBC NEW YORK, INC.
                              HBC TEXAS, INC.
                              KCYT-FM LICENSE CORP.
                              KECS-FM LICENSE CORP.
                              KESS-AM LICENSE CORP.
                              KESS-TV LICENSE CORP.
                              KHCK-FM LICENSE CORP.
                              KICI-AM LICENSE CORP.
                              KICI-FM LICENSE CORP.
                              KLSQ-AM LICENSE CORP.
                              KLVE-FM LICENSE CORP.
                              KMRT-AM LICENSE CORP.
                              KTNQ-AM LICENSE CORP.
                              KTNQ/KLVE, INC.
                              LA OFERTA, INC.
                              LICENSE CORP. NO. 1
                              LICENSE CORP. NO. 2
                              MI CASA PUBLICATIONS, INC.
                              SPANISH COAST-TO-COAST, LTD.
                              WADO-AM LICENSE CORP.
                              WGLI-AM LICENSE CORP.
                              WLXX-AM LICENSE CORP.
                              WPAT-AM LICENSE CORP.
                              WQBA-AM LICENSE CORP.
                              WQBA-FM LICENSE CORP.
                              WADO RADIO, INC.
                              TC TELEVISION, INC.
                              TICHENOR LICENSE CORPORATION
                              TMS ASSETS CALIFORNIA, INC.
                              TMS LICENSE CALIFORNIA, INC.

                              By:      /s/ Jeffrey T. Hinson
                                  -------------------------------
                               Title:  Senior Vice President

<PAGE>

                                      -4-

                   SUBSIDIARY GUARANTORS (continued)
                   ---------------------------------

                              HBC HOUSTON LICENSE CORP.
                              HBC HOUSTON, INC.
                              HBC SAN DIEGO LICENSE CORP.
                              HBC SAN DIEGO, INC.
                              TICHENOR MEDIA SYSTEM, INC.
                              HEFTEL GP TEXAS, INC.
                              HBC TOWER COMPANY, INC.
                              MOMENTUM RESEARCH, INC.
                              HBC PHOENIX, INC.
                              HBC NETWORK, INC.

                              By:      /s/ Jeffrey T. Hinson
                                  --------------------------------
                               Title:  Senior Vice President

                            LENDERS
                            -------

                              THE CHASE MANHATTAN BANK
                               for itself, as Administrative Agent, and as
                               Issuing Bank

                              By:      /s/ Tracey Navin Ewing
                                  -------------------------------
                               Title:  Vice President

                              BANK OF MONTREAL

                              By:      /s/ Ola Anderssen
                                  --------------------------
                               Title:   Director

                               THE BANK OF NOVA SCOTIA

                              By:      /s/ P. A. Weissenberger
                                  -------------------------------
                               Title:  Authorized Signatory

                               UNION BANK OF CALIFORNIA, N.A.

                              By:       /s/ Jenny Dongo
                                   -----------------------------
                                Title:  Assistant Vice President

                               CIBC, INC.

                              By:      /s/ Harold Birk
                                  --------------------------------------
                               Title:  Executive Director
                                       CIBC World Markets Corp. as Agent

                               FLEET BANK, N.A.

                              By:      /s/ Tanya M. Crossley
                                  -------------------------------
                               Title:  Vice President

                               TORONTO DOMINION (TEXAS), INC.

                              By:      /s/ Carol Brandt
                                  ----------------------------
                               Title:  Vice President

                               ABN AMRO BANK N.V.

                              By:      /s/ Eric R. Hollingsworth
                                  ------------------------------------
                               Title:  Vice President

                              By:      /s/ Diego Puiggari
                                  ------------------------------------
                               Title:  Group Vice President

                               CREDIT AGRICOLE INDOSUEZ

                              By:      /s/ Craig Welch
                                  ---------------------------------
                               Title:  First Vice President

                              By:      /s/ Michael G. Haggarty
                                  ---------------------------------
                               Title:  Vice President

                               THE BANK OF NEW YORK

                              By:      /s/ John R. Ciulla
                                  --------------------------------
                               Title:  Senior Vice President

                               SUNTRUST BANK, CENTRAL
                                 FLORIDA, N.A.

                              By:      /s/ David J. Edge
                                  --------------------------------
                               Title:  Vice President

                               MELLON BANK, N.A.

                              By:      /s/ Jennifer Livengood
                                  ---------------------------------
                               Title:  Officer

                               BANK OF HAWAII

                              By:      /s/ Bernadine M. Havertine
                                  -------------------------------------
                               Title:  Assistant Vice President

                               MICHIGAN NATIONAL BANK

                              By:      /s/ Draga B. Palincas
                                  -------------------------------------
                               Title:  Relationship Manager

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