Document:

EX-10.3

 Exhibit 10.3 

FINAL 
 AOL Inc. 2014
Annual Bonus Plan – U.S. 
 Amended and Restated Effective as of January 1, 2014 

 1. Objective 

The success of AOL Inc. (“AOL”), along with its subsidiaries and affiliates (together the “Company”), is to a great extent
dependent on the caliber of its employees. The AOL Inc. Annual Bonus Plan is a critical tool in rewarding outstanding Company performance, segment/brand/group performance, individual performance and behaviors that contribute to the achievement of
corporate objectives. 
 The AOL Inc. Annual Bonus Plan provides eligible employees (other than employees whose participation is governed by the AOL Inc.
Annual Incentive Plan for Executive Officers (the “Executive AIP”) and Section 6 herein) with the opportunity to receive cash incentives based on the financial and operational performance of the Company, their
segment/brand/group (where applicable) as well as their own individual performance. 
 The guidelines provided in the AOL Inc. Annual Bonus Plan – U.S.
are applicable generally to eligible employees of entities formed within the United States. The terms “ABP” and “this plan” as used herein refer to this plan document, and includes any addenda attached hereto. A
separate plan document governs the participation of eligible employees of entities formed outside the United States (the “International ABP”). 

2. Eligibility 
 Employees of AOL, or a direct or indirect
wholly-owned AOL subsidiary formed within the United States, with employee job levels A through J are eligible to participate in the ABP, subject to the terms of the ABP and the following conditions (each such employee, a
“Participant”). 
  

	a.	Employees must be scheduled to work a minimum of 25 hours or more per week to be eligible to participate. 

  

	b.	Employees eligible to participate in any other Company cash incentive plan, including but not limited to the International ABP, sales incentive plans and bonus plans, are not eligible to participate in the ABP. To avoid
doubt, the preceding sentence does not apply to the AOL Inc. Stock Incentive Plan. 

  

	c.	New employees who are hired on or after October 1 of a plan year are not eligible to participate in the ABP for such plan year. 

	d.	Certain individuals, including but not limited to any individuals classified by the Company as interns, fellows, fixed term employees, contractors, freelancers, bloggers or temporary workers, and any individuals who are
not considered employees of the Company, are not eligible to participate in the ABP, unless required by state or local law. This list is not intended to be all inclusive and may be updated without prior notice. Additionally, any individual who is
subject to the terms of or is a signatory to any contract, letter agreement, or other document that acknowledges his or her status as an independent contractor or who is not otherwise classified by the Company for U.S. federal payroll tax purposes
as a common law employee is not eligible to participate in the ABP, even if such individual is later determined to be a common law employee. 

  

	e.	The eligibility of a Participant who is a participant in the Executive AIP will be determined pursuant to the Executive AIP and Section 6 of this plan. 

 

	f.	Notwithstanding anything to the contrary herein, an employee who meets the eligibility requirements set forth in this Section 2 shall, if so designated by the Company in its sole discretion, participate in the
International ABP in lieu of this plan (notwithstanding the eligibility requirements set forth in the International ABP). 

 3. Target
Incentive 
 A Participant’s ABP target incentive is expressed as a percentage of such Participant’s annual base salary and calculated based on
the Participant’s level for internal purposes (and not the Participant’s business title). If a Participant is a participant in the Executive AIP, then the applicable ABP target incentive for such Participant will be a component in the
criteria used by the Compensation Committee of AOL Inc.’s Board of Directors (and any successor thereto) (the “Committee”) to apply negative discretion in determining the actual annual incentive payable to such Participant
pursuant to the terms of the Executive AIP. No annual incentive payment will be made to a participant in the Executive AIP unless and until the performance goal specified in Section 3.2 of the Executive AIP is achieved. 

Subject to Sections 7(e), (f) and (h), actual annual incentive payouts, if granted, with respect to a plan year will be calculated based on a
Participant’s annual base salary rate as of December 31 of the plan year, in accordance with the administrative guidelines of the ABP. 

  
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 4. Performance Measures & Weighting 

The following components of performance will be assessed in determining a Participant’s incentive payout and will be weighted as follows (expressed as a
percentage of the Participant’s target incentive): 
  

													
	 	  	Performance Components	 
	Internal Level	  	Company	 	 	Brand/Segment/Group	 	 	Individual	 
	 Corporate/Brand Central EVPs and CEO
	  	 	70	% 	 	 	n/a	  	 	 	30	% 
	 Corporate/Brand Central Group - all SVPs and below
	  	 	50	% 	 	 	n/a	  	 	 	50	% 
	 All other eligible Participants not listed above
	  	 	20	% 	 	 	50	% 	 	 	30	% 

  

	a.	With respect to individual performance, Participants are rated on a performance scale, and employees in the lowest individual performance category (as determined by management in its sole discretion) will not be
eligible to earn a bonus under this plan. 

  

	b.	The portion of a Participant’s incentive payout attributable to a Participant’s Brand/Segment/Group, if any, shall be based on the performance of the operating segment, brand or group of the Company for which
the Participant provides substantial services. With respect to a Participant who provides substantial services to one or more operating segments, brands and/or groups of the Company, the Brand/Segment/Group portion of the Participant’s
incentive payout (if any) may be based on the performance of one or more of such operating segments, brands or groups, as determined and weighted at the beginning of the plan year (or as may be adjusted from time to time) by management in its sole
discretion. 

  

	c.	With respect to a Participant who is a participant in the Executive AIP, the foregoing performance measures may be used by the Committee to apply negative discretion to determine the actual bonus payable to such
Participant (as set forth in Section 3.4 of the Executive AIP); provided, however, that the Company has satisfied the performance goal specified in Section 3.2 of the Executive AIP. 

  
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 5. Funding 

The Company’s performance, and total ABP funding, are based on the following measures of performance in the plan year (each a “Company Metric”):

  

	 	i.	Adjusted OIBDA — the Company’s operating income before depreciation and amortization excluding the impact of restructuring costs, non-cash equity-based compensation, gains and losses on all disposals of
assets, non-cash asset impairments and write-offs and special items; 

  

	 	ii.	Free Cash Flow — cash provided by continuing operations, less capital expenditures, product development costs and principal payments on capital leases;

 

	 	iii.	Revenue Net of TAC – the Company’s revenue for fiscal year 2014, minus traffic acquisition costs for the same period, as reported in the Company’s trending schedules for the period ending
December 31, 2014; and 

  

	 	iv.	Adjusted Earnings Per Share – net income attributable to the Company excluding the impact of restructuring costs, gains and losses on all disposals of assets, non-cash asset impairments and write-offs and
special items (e.g., interest expense on a revolving credit facility) divided by diluted weighted average common shares outstanding normalized for the impact of any stock splits, reverse stock splits or other such transactions executed by the
Company that materially change the number of shares outstanding. Income tax expense for purposes of Adjusted EPS is calculated based on the Company’s marginal tax rate. 

The thresholds and goals for each of the Company Metrics and the financial measures for the operating segments, brands and/or groups of the Company, as
applicable, are determined at the beginning of the plan year by the Company, and are approved by the Committee. 
 The ABP funding levels at various levels
of the Company’s achievement of the Company Metrics are determined at the beginning of the plan year (but may be subsequently adjusted in the sole discretion of the Company). The ABP funding level for achievement of the performance goals of the
Company’s brand, segments and/or groups (if applicable) will be determined by the Company in its sole discretion. 
 In general, each of the four
identified Company Metrics operate independently. The plan will be funded if the minimum threshold of a Company Metric is achieved, but only as to the portion of the total approved ABP funding that has been allocated to the achievement of such
Company Metric (e.g., if only Adjusted OIBDA and Revenue Net of TAC thresholds are met, the ABP will be funded only as to the portion of the total approved ABP funding allocable to these two Company Metrics). There will be no payout under the plan
if none of the Company Metric thresholds are met. 

  
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 For purposes of determining the ABP funding level attributable to Company performance, the Company Metrics will
be weighted as follows: Adjusted OIBDA –50%; Free Cash Flow –20 %; Revenue Net of TAC –20%; AEPS –10%. 
 Generally, final ABP funding
is at the discretion of the CEO, with the approval of the Committee; however, final ABP funding as to the CEO, the CFO and any employee subject to the Committee’s purview is also subject to approval of the Committee. 

6. Participation In The Executive AIP 
 This
Section 6 will apply only to those Participants who are also participants in the Executive AIP, which determination will be made by the Committee. Only with respect to annual incentives payable to such Participants should the ABP be considered
a sub-plan of the Executive AIP. The eligibility of such Participants to participate in the Executive AIP will be determined pursuant to Section 5 of the Executive AIP and the second paragraph of this Section 6. The performance goals for
such Participants will be determined pursuant to Section 3 of the Executive AIP. In addition, this sub-plan for Participants who are participants in the Executive AIP will be administered in accordance with Section 4 of the Executive AIP.
The method, timing and/or form of any annual incentive payouts to such Participants will be as set forth in the Executive AIP. Once the Committee determines in writing that performance goals have been achieved under the Executive AIP (pursuant to
Section 3 of the Executive AIP), the Committee may use negative discretion to finalize the annual incentive payouts to such Participants, pursuant to the guidelines established under the ABP. Any capitalized terms used in this section (and
throughout the ABP with respect to a Participant who is a participant in the Executive AIP) but not otherwise defined herein, in connection with determining the annual incentive payouts for such Participant only, will have the meaning set forth in
the Executive AIP. In the event of a conflict between any term or provision contained in the ABP and a term or provision of the Executive AIP, with respect to a Participant who is a participant in the Executive AIP, the terms and provisions of the
Executive AIP will govern and prevail. 
 Notwithstanding anything to the contrary in this plan or in the Executive AIP, any individual designated by the
Committee to participate in the Executive AIP who is subsequently determined not to be a “covered employee” within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), for the fiscal
year of the Company in which the Company allocates its federal income tax deduction for payments under the Executive AIP based upon performance in the plan year, shall not be eligible to receive a bonus under the Executive AIP, but shall instead be
eligible to receive a bonus under the ABP, with such individual’s bonus eligibility and award opportunity determined solely under the terms of the ABP. 

  
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 7. Administrative Guidelines 
  

	a.	The ABP is an annual bonus plan based on Company, Brand/Segment/Group (if applicable) and individual performance from January 1, 2014 through December 31, 2014 (the “plan year”).

  

	b.	Any payout to a Participant with respect to a plan year will be distributed once a year in a lump sum, no later than March 15th of the year immediately following
the end of such plan year. 

  

	c.	Bonus payouts, if any, under the ABP will be made to a Participant by his or her employer. Subject to Section 7(h) herein, Participants must be continuously employed by the Company through the date of payout in
order to be eligible to earn a payout. A Participant whose employment with the Company has terminated, or who has received a notice of termination from the Company or provided notice of resignation to the Company, in each case prior to the date of
payout, is not eligible to receive a payout, unless otherwise required by state or local law. 

  

	d.	Subject to Section 2, employees promoted or transferred into an ABP eligible position may participate in the ABP effective as of the first day they were employed in an ABP eligible position. The ABP payment will be
prorated daily based on the length of time such employee works in the ABP eligible position during the plan year. 

  

	e.	A Participant transferring from an ABP eligible position to a non-ABP eligible position will be eligible to receive an ABP payout, prorated on a daily basis based on the portion of the plan year in which the Participant
was employed in an ABP eligible position and the Participant’s annual rate of base salary immediately before such transfer, provided that the Company pays a bonus under the ABP to other Participants for that plan year. 

 

	f.	Participants who are promoted or transferred from one ABP bonus target level to another during the plan year will be eligible to receive an ABP payout, prorated on a daily basis based on the length of time at each ABP
bonus target level during the plan year and the Participant’s annual rate of base salary as in effect on the last day employed at each such ABP bonus target level. 

 

	g.	A bonus payable under the ABP may not exceed 200% of a Participant’s bonus target. 

  

	h.	In the event a Participant dies during the plan year, the Participant’s beneficiaries will receive a prorated ABP payout at the Participant’s target level based on the number of days the Participant was
employed in an ABP eligible position during such plan year, provided an ABP payout is approved for such plan year. In addition, if a Participant dies after the end of the plan year, but before payout, the Participant’s beneficiaries will
receive the full ABP payout, at the Participant’s target incentive level, if an ABP payout is approved for such plan year. Any such ABP payouts will be made at the same time as other payouts would otherwise be payable to Participants under the
terms of the ABP and, except as provided in Sections 7(e) and (f), will be calculated based on the Participant’s rate of annual base salary immediately prior to his or her death. 

  
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	i.	Notwithstanding anything to the contrary in Section 7(b) or any other provision herein, a Participant may, in the sole discretion of the Company, receive his or her ABP payout for the plan year in more than one
installment, provided that (i) all such installments will be paid no later than March 15th of the year immediately following the end of such plan year, (ii) as to any installment
payable prior to the end of the plan year, performance is then determined to be trending to meet or exceed the applicable performance thresholds described in Sections 4 and 5 for the plan year, and (iii) except as provided in Section 7(h),
a Participant must be continuously employed by the Company through the date that any installment payment provided under this paragraph is payable in order to be eligible to earn such payment. Installments may be in equal or unequal amounts as
determined by the Company in its sole discretion. 

  

	j.	There is no guaranteed ABP payout. Notwithstanding anything to the contrary herein, the Company may reduce any amounts payable to a Participant hereunder. Any payments under the ABP are at the sole discretion of the
Company. 

  

	k.	The Company has the power to interpret the terms and conditions of the plan, subject to Committee approval when required. Any decisions made by the Company or the Committee regarding the plan is final and binding upon
all parties. Determinations made by the Company or Committee need not be uniform and may be made selectively among Participants in the plan. 

8. Miscellaneous 
  

	a.	Participation in the ABP does not constitute a contract of employment or a contractual agreement for payout, and does not guarantee employment for any duration of time. Participation in the ABP in any plan year does not
guarantee participation in any following plan year. All elements of the ABP are at the discretion of the Company. The Company reserves the right to modify, revoke, suspend, terminate, or disregard all plan practices, policies or procedures, in whole
or in part, published or unpublished, at any time, with or without notice, unless otherwise required by state or local law. The ABP may, or may not, be renewed on a yearly basis, whether in whole or in part. 

 

	b.	Subject to Committee approval when required, the Company reserves the right to exercise discretion in calculating the ABP payout, and in setting or adjusting any values or factors used in the calculation of the ABP
payout. Such discretion for Participants who are either participants in the Executive AIP and/or whose compensation must be reviewed and approved by the Committee resides solely with the Committee. 

 

	c.	Except with respect to any provision of the Executive AIP as it applies to a Participant in the Executive AIP, in the event of any inconsistency or conflict between the provisions of any other communications and the
terms of this plan, the terms outlined in this plan will prevail. 

  
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	d.	Participants will not have the right to assign, pledge, or otherwise transfer any payments to which they may be entitled under the ABP. 

 

	e.	The Company reserves the right to deduct any moneys owed to the Company by a Participant from any payout under the ABP prior to distribution, unless state or local laws require otherwise. 

 

	f.	The Company will be entitled to withhold from any payment due to a Participant any and all applicable income and employment taxes. 

  

	g.	The ABP is intended to be exempt from Code Section 409A and shall be administered and interpreted accordingly. Notwithstanding any other provision of the ABP, if any provision of the ABP conflicts with the
requirements of Code Section 409A, the requirements of Code Section 409A shall supersede any such provision. In no event will the Company be liable for any additional tax, interest or penalties that may be imposed on a Participant by Code
Section 409A or any damages for failing to comply with Code Section 409A. 

  

	h.	If any provision of the ABP shall be held to be void, invalid, illegal or unenforceable, in whole or in part, such provision shall be replaced with a provision that is as close as possible in effect to such invalid,
illegal or unenforceable provision, and still be valid, legal and enforceable, and the validity, legality and enforceability of the remaining provisions of the ABP shall not in any way be affected or impaired thereby. 

 

	i.	Any payments under this plan are to be paid from the Company’s general assets. No trust, account or other separate fund or segregation of assets will be established for payments pursuant to the plan.

  
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 ADDENDUM 

Beta ABP Program 
  

	1.	Participation 

 One or more Brands/Segments/Groups may be selected by the Company in its
sole discretion to participate in the Beta ABP Program (the “Beta Program”) on the terms set forth below. All employees in the selected Brand/Segment/Group shall participate in the Beta Program except to the extent determined otherwise by
the Company. Except as modified below, all other provisions, terms and conditions of the ABP shall apply. 
  

	2.	Definitions 

 For each Beta Program participant: 

 

	 	a.	“Mid-Year Performance Percentage” means his or her achievement, expressed as a percentage, of his or her prorated Brand/Segment/Group and individual goals under the ABP for the six-month period ending
June 30. 

  

	 	b.	“Mid-Year Target Incentive” means an amount equal to 40% of his or her ABP target incentive bonus (as determined under the ABP) for the plan year. 

 

	3.	Program 

 Each Beta Program Participant’s annual incentive bonus, if earned in accordance with the
terms of the ABP (including but not limited to the requirement of being employed on the date of payout), shall be guaranteed to be no less than the Minimum Amount. 

The “Minimum Amount” shall be determined as a percentage, equal to the Beta Program participant’s Mid-Year Performance Percentage, of his or
her Mid-Year Target Incentive. 
 A Beta Program participant’s annual incentive bonus (if earned) shall be payable at the same time that bonuses are
payable to other participants in the ABP.EX-10.4

 Exhibit 10.4 

AOL INC. 
 SPSU
AWARD AGREEMENT 
 WHEREAS, the Company has adopted the Plan and the SPSU Terms and Conditions (each as defined below), the terms of
which are hereby incorporated by reference and made a part of the Notice and this Agreement; and 
 WHEREAS, the Committee has determined
that it would be in the best interests of the Company and its stockholders to grant the segment performance share units (the “SPSUs”) provided for in the Notice to the Participant pursuant to the Plan, the Terms and
Conditions and the terms set forth in the Notice and herein. 
 NOW, THEREFORE, in consideration of the mutual covenants hereinafter set
forth, the parties agree as follows: 
  

	1.	Definitions. Whenever the following terms are used in this Agreement, they shall have the meanings set forth below. Capitalized terms not otherwise defined herein shall have the same meanings as in the
Plan, the Terms and Conditions or the Notice. 

  

	 	(a)	“Cause” means, “Cause” as defined in an employment agreement or offer letter between the Company or any of its Affiliates and the Participant or, if not defined therein or
if there is no such agreement, “Cause” means (i) Participant’s continued failure substantially to perform such Participant’s duties (other than as a result of total or partial incapacity due to physical or mental illness)
for a period of ten (10) days following written notice by the Company or any of its Affiliates to the Participant of such failure, (ii) dishonesty in the performance of the Participant’s duties, (iii) Participant’s
conviction of, or plea of nolo contendere to, a crime constituting (A) a felony under the laws of the United States or any state thereof or (B) a misdemeanor involving moral turpitude, (iv) Participant’s insubordination,
willful malfeasance or willful misconduct in connection with Participant’s duties or any act or omission which is injurious to the financial condition or business reputation of the Company or any of its Affiliates, or
(v) Participant’s breach of any non-competition, non-solicitation or confidentiality provisions to which the Participant is subject. The determination of the Committee as to the existence of “Cause” will be conclusive on the
Participant and the Company. 

  

	 	(b)	“Disability” means, “Disability” as defined in an employment agreement or offer letter between the Company or any of its Affiliates and the Participant or, if not defined
therein or if there shall be no such agreement, “disability” of the Participant shall have the meaning ascribed to such term in the Company’s long-term disability plan or policy, as in effect from time to time, to the extent that such
definition also constitutes such Participant being considered “disabled” under Section 409A(a)(2)(C) of the Code. 

	 	(c)	“Good Reason” means “Good Reason” as defined in an employment agreement or offer letter between the Company or any of its Affiliates and the Participant, if any. 

 

	 	(d)	“Notice” means the Notice of Grant of SPSU Award to which this Agreement is attached and made part of. 

 

	 	(e)	“Participant” means an individual to whom SPSUs have been awarded pursuant to the Plan and the Terms and Conditions and shall have the same meaning as may be assigned to the terms
“Holder” or “Participant” in the Plan. 

  

	 	(f)	“Performance Criteria” means the Performance Criteria set forth in the Notice. 

  

	 	(g)	“Plan” means the AOL Inc. 2010 Stock Incentive Plan, as the same may be amended, supplemented or modified from time to time. 

 

	 	(h)	“Shares” means shares of common stock of the Company, $0.01 par value per share. 

  

	 	(i)	“Terms and Conditions” means those SPSU Terms and Conditions governing SPSUs adopted by the Company, as the same may be amended, supplemented or modified from time to time. 

 

	 	(j)	“Vesting Date” means any Vesting Date set forth in the Notice or this Agreement. 

  

	2.	Grant of SPSUs. The Company grants to the Participant the number of SPSUs set forth in the Notice on the Date of Grant set forth in the Notice (the “SPSU Award”), subject to the
terms, conditions, and adjustments set forth in the Notice, this Agreement, the Terms and Conditions, and the Plan. Each SPSU represents the unfunded, unsecured, contingent right of the Participant to receive upon vesting either one Share for each
vested SPSU or an equivalent amount of cash, or a combination of cash and Shares, as determined in the sole discretion of the Committee. SPSUs do not constitute issued and outstanding Shares for any corporate purposes and do not confer on the
Participant any right to vote on matters that are submitted to a vote of holders of Shares. 

  

	3.	 Dividend Equivalents and Retained Distributions. If on any date while SPSUs are outstanding hereunder the Company shall
pay a cash dividend to the holders of its Shares, for each SPSU held by the Participant on the record date, the Participant shall be credited with a bookkeeping entry an amount of cash equal to the dividend paid on a Share (the “Dividend
Equivalents”). If on any date while SPSUs are outstanding hereunder the Company shall pay any dividend other than a regular cash dividend or make any other distribution on the Shares, the Participant shall be credited with a bookkeeping
entry equivalent to such dividend or distribution for each SPSU held by the Participant on the record date for such dividend or distribution, but the Company shall retain custody of all such dividends and distributions (the “Retained
Distributions”). Dividend Equivalents and Retained Distributions will not bear interest and will be subject to the same 

  
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performance and vesting conditions as the SPSU to which they relate. If any SPSU is forfeited for any reason, including as a result of the failure to attain the Performance Criteria, any Dividend
Equivalent or Retained Distributions attributable to such SPSU shall be forfeited on the date on which the underlying SPSU is forfeited. At the time the underlying SPSUs become vested, the Committee shall have discretion to pay any accrued Dividend
Equivalents or Retained Distributions either in cash or in Shares. Any Dividend Equivalents or Retained Distributions payable under this paragraph 3 shall be paid or settled on the settlement date for the underlying SPSU. Notwithstanding anything
else contained in this paragraph 3, no payment of Dividend Equivalents or Retained Distributions shall occur before the first date on which a payment could be made without subjecting the Participant to tax under the provisions of Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”). 

  

	4.	Determination of SPSUs Provisionally Earned, Vesting and Settlement of SPSUs. 

  

	 	(a)	By March 15 of the year following the end of the Performance Period, the Committee shall determine the extent to which SPSUs have been provisionally earned on the basis of the Company’s actual performance in
relation to the Performance Criteria for the Performance Period; provided, however, that the Committee or its delegate may exercise its discretion (reserved under the Terms and Conditions) to reduce the amount of SPSUs deemed provisionally earned to
the extent permitted under the Terms and Conditions. With respect to any SPSU Award granted to a Covered Employee, the Committee shall certify the results in writing in accordance with the Terms and Conditions and Section 9 of the Plan. Any
SPSUs that are not, based on the Committee’s determination, provisionally earned based upon performance shall be immediately canceled and forfeited. The number of SPSUs that are provisionally earned shall be rounded down to the nearest whole
SPSU. Only provisionally earned SPSUs may subsequently become vested and the Company shall have no obligation to settle or otherwise make any payment to the Participant with respect to SPSUs that are provisionally earned but do not subsequently
become vested. 

  

	 	(b)	Subject to the terms and provisions of the Plan, the Terms and Conditions, the Notice and this Agreement, no later than 60 days after any Vesting Date with respect to any portion of the SPSU Award, the Company shall
settle the provisionally earned and vested SPSUs in either one Share for each vested SPSU or the equivalent amount of cash for each vested SPSU, or a combination thereof. The amount of cash will be determined on the basis of the Fair Market Value of
a Share on the Vesting Date. The Company shall also settle at the same time Dividend Equivalents and Retained Distributions covered by that portion of the SPSU Award. In lieu of a fractional Share, the Participant shall receive a cash payment equal
to the Fair Market Value of such fractional Share. Except as otherwise provided in paragraphs 5, 6 and 7, the vesting of such SPSUs and any Dividend Equivalents or Retained Distributions relating thereto shall occur only upon the achievement of the
Performance Criteria set forth in the Notice of Grant and if the Participant has continued in Employment of the Company or any of its Affiliates on the applicable Vesting Date and has continuously been so employed since the Date of Grant (as defined
in the Notice). 

  
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	 	(c)	SPSUs Extinguished. Upon settlement of each vested SPSU in accordance with the Notice and this Agreement, a number of SPSUs equal to the number of SPSUs settled shall be extinguished and such number of SPSUs will
not be considered to be held by the Participant for any purpose. 

  

	 	(d)	Section 409A. Notwithstanding anything else contained in the Notice and this Agreement, no payment in settlement of any vested SPSU shall be paid, issued or transferred to a Participant before the first date
on which a payment could be made without subjecting the Participant to tax under the provisions of Section 409A of the Code. 

  

	5.	Termination of Employment. 

 Subject to the provisions of the Plan, the
Terms and Conditions, the Notice and this Agreement and the terms of any employment agreement or offer letter between the Company or any of its Affiliates and the Participant that provides for the treatment of SPSUs that is more favorable to the
Participant than this paragraph 5: 
  

	 	(a)	If the Participant’s Employment with the Company and its Affiliates is terminated by the Participant for any reason other than those described in clause (b) below prior to a Vesting Date with respect to the
Award, then any unvested SPSUs and all Dividend Equivalents and Retained Distributions relating thereto shall be cancelled and completely forfeited on the date of any such termination. 

 

	 	(b)	If the Participant’s Employment terminates as a result of his or her death or Disability and paragraph 6 below is not applicable, then the SPSUs for which a Vesting Date has not yet occurred and all Dividend
Equivalents and Retained Distributions relating thereto shall, to the extent the SPSUs were not extinguished prior to such termination of Employment, vest as follows: 

 

	 	(i)	If the Participant’s Employment terminates prior to the end of the Performance Period, such SPSUs will vest pro-rata (based on the number of completed months during the Performance Period compared to the total
number of months in the Performance Period) based on the Company’s actual performance in relation to the Performance Criteria for the Performance Period. For this purpose, the Determination Date shall be treated as the Vesting Date.

  

	 	(ii)	If the Participant’s employment terminates following the end of the Performance Period, any provisionally earned but unvested SPSUs shall vest as of the date of termination of Employment. For this purpose, the
Vesting Date shall be the later of (i) the Determination Date or (ii) the date of the Participant’s termination of Employment. 

  
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	 	(c)	SPSUs that vest pursuant to this paragraph 5 shall be settled, as soon as practicable, but in no event later than 60 days following such Vesting Date, along with the Dividend Equivalents and Retained Distributions
related thereto. 

  

	 	(d)	For purposes of this paragraph 5, a temporary leave of absence shall not constitute a termination of Employment or a failure to be continuously employed by the Company or any Affiliate regardless of the
Participant’s payroll status during such leave of absence if such leave of absence is approved in writing by the Company or any Affiliate; provided, that such leave of absence constitutes a bona fide leave of absence and not a Separation From
Service under Treas. Reg. 1.409A-1(h)(1)(i). Notice of any such approved leave of absence should be sent to the Company at 770 Broadway, New York, New York, 10003, attention: General Counsel, but such notice shall not be required for the leave of
absence to be considered approved. 

  

	 	(e)	In the event the Participant’s Employment with the Company or any of its Affiliates is terminated, and subject to paragraph 6 and the terms of any employment agreement or offer letter entered into by the
Participant and the Company that provides for the treatment of SPSUs upon the Participant’s termination of Employment that is more favorable to the Participant than this paragraph 5, the Participant shall have no claim against the Company with
respect to the SPSUs and related Dividend Equivalents and Retained Distributions, if any, other than as set forth in this paragraph 5, the provisions of this paragraph 5 being the sole remedy of the Participant with respect thereto.

  

	6.	Acceleration of Vesting Date. In the event a Change in Control, subject to paragraph 7, occurs, to the extent that any such occurrence also constitutes a change in ownership or effective control of the
Company, or in the ownership of a substantial portion of the assets of the Company, within the meaning of Section 409A(a)(2)(A)(v) of the Code (a “409A Change of Control Event”), and, provided the Award is outstanding upon or within
12 months following the date of such Change in Control, the Participant’s Employment with the Company and its Affiliates is terminated (i) by the Company other than for Cause (unless such termination is due to death or Disability),
(ii) by the Participant for Good Reason (if in an employment agreement or offer letter between the Company or any of its Affiliates and the Participant includes a right of the Participant to resign for Good Reason) or (iii) on account of
death or Disability, then the Award will vest as follows: 

  

	 	(i)	If the Participant’s Employment terminates prior to the end of the Performance Period, then the SPSUs will vest based on the actual performance level achieved as of the date of the Change in Control determined as
set forth in the Notice. For this purpose, the date of Participant’s termination of Employment shall be treated as the Vesting Date. 

  

	 	(ii)	 If the Participant’s employment terminates following the end of the Performance Period, any provisionally earned but unvested SPSUs shall

  
 5 

	 	
vest as of the date of termination of Employment. For this purpose, the Vesting Date shall be the later of (i) the Determination Date or (ii) the date of the Participant’s
termination of Employment. 

 SPSUs that vest pursuant to this paragraph 6 shall be settled, as soon as practicable, but in no
event later than 60 days following such Vesting Date, along with the Dividend Equivalents and Retained Distributions related thereto; provided, however, that notwithstanding the foregoing, to the extent that any such occurrence does not constitute a
409A Change of Control Event, the SPSUs shall vest as described under this paragraph 6, but the settlement of the vested SPSUs shall be made at the times otherwise provided hereunder as if no Change of Control had occurred. Nothing in this paragraph
6 shall limit, abridge or otherwise modify the authority of the Committee pursuant to Section 10 of the Plan. 
  

	7.	Limitation on Acceleration. 

  

	 	(a)	Calculation and Possible Benefit Reduction. If at any time or from time to time, it shall be determined by independent tax professionals selected by Company (“Tax Professional”) that any payment
or other benefit due to Participant pursuant to the Notice and this Agreement or otherwise (“Potential Parachute Payment”) is or will, but for the provisions of this paragraph 7, become subject to the excise tax imposed by
Section 4999 of the Code or any similar tax payable under any state, local, foreign or other law, but expressly excluding any income taxes and penalties or interest imposed pursuant to Section 409A of the Code (“Excise
Taxes”), then Participant’s Potential Parachute Payment shall be either (a) provided to Participant in full, or (b) provided to Participant as to such lesser extent which would result in no portion of such benefits being
subject to the Excise Taxes, whichever of the foregoing amounts, after taking into account applicable federal, state, local and foreign income and employment taxes, the Excise Tax, and any other applicable taxes, results in the receipt by
Participant, on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under the Excise Taxes (“Payments”). 

 

	 	(b)	Implementation of Calculations and Any Benefit Reduction Under Paragraph 7. In the event of a reduction of benefits pursuant to paragraph 7(a), the Tax Professional shall determine which benefits shall be reduced
so as to achieve the principle set forth in paragraph 7(a). For purposes of making the calculations required by paragraph 7(a), the Tax Professional may make reasonable assumptions and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of the Code and other applicable legal authority. Company and Participant shall furnish to the Tax Professional such information and documents as the Tax Professional may reasonably
request in order to make a determination under paragraph 7(a). Company shall bear all costs the Tax Professional may reasonably incur in connection with any calculations contemplated by paragraph 7(a). 

  
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	 	(c)	Potential Subsequent Adjustments. 

  

	 	(i)	If, notwithstanding any calculations performed or reduction in benefits imposed as described in paragraph 7(a), the IRS determines that Participant is liable for Excise Taxes as a result of the receipt of any payments
made pursuant to the Notice and this Agreement or otherwise, then Participant shall be obligated to pay back to Company, within thirty (30) days after a final IRS determination or in the event that Participant challenges the final IRS
determination, a final judicial determination, a portion of the Payments equal to the “Repayment Amount.” The Repayment Amount shall be the smallest such amount, if any, as shall be required to be paid to Company so that Participant’s
net after-tax proceeds with respect to the Payments (after taking into account the payment of the Excise Taxes and all other applicable taxes imposed on such benefits) shall be maximized. The Repayment Amount shall be zero if a Repayment Amount of
more than zero would not result in Participant’s net after-tax proceeds with respect to the Payments being maximized. If the Excise Taxes are not eliminated pursuant to this paragraph 7(c), Participant shall pay the Excise Taxes.

  

	 	(ii)	Notwithstanding any other provision of this paragraph 7, if (a) there is a reduction in the payments to Participant as described above in this paragraph 7, (b) the IRS later determines that Participant is
liable for Excise Taxes, the payment of which would result in the maximization of Participant’s net after-tax proceeds (calculated based on the full amount of the Potential Parachute Payment and as if Participant’s benefits had not
previously been reduced), and (c) Participant pays the Excise Tax, then Company shall pay to Participant those payments which were reduced pursuant to paragraph 7(a) or subparagraph 7(c)(i) as soon as administratively possible after Participant
pays the Excise Taxes to the extent that Participant’s net after-tax proceeds with respect to the payment of the Payments are maximized. 

  

	8.	Withholding Taxes. The Participant agrees that, 

  

	 	(a)	Obligation to Pay Withholding Taxes. Upon the vesting of any portion of the Award of SPSUs and the Dividend Equivalents and Retained Distributions relating thereto, the Participant will be required to pay
to the Company any applicable Federal, state, local or foreign withholding tax due as a result of such payment or vesting. The Company’s obligation to make payment or deliver Shares to settle the vested SPSUs or to pay any Dividend Equivalents
or Retained Distributions shall be subject to such payment. The Company and its Affiliates shall, to the extent permitted by law, have the right to deduct from the Dividend Equivalent, cash or Shares issued in connection with the vesting or Retained
Distribution, as applicable, or any payment of any kind otherwise due to the Participant any Federal, state, local or foreign withholding taxes due with respect to such vesting or payment. 

  
 7 

	 	(b)	Payment of Taxes with Stock. Subject to the Committee’s right to disapprove any such election and require the Participant to pay the required withholding tax in cash, the Participant shall have the
right to elect to pay the required withholding tax associated with a vesting with any Shares that may be received upon vesting. Unless the Company shall permit another valuation method to be elected by the Participant, Shares used to pay any
required withholding taxes shall be valued at the closing price of a Share as reported on the New York Stock Exchange Composite Tape on the date the withholding tax becomes due (hereinafter called the “Tax Date”). Notwithstanding anything
herein to the contrary, if a Participant who is required to pay the required withholding tax in cash fails to do so within the time period established by the Company, then the Participant shall be deemed to have elected to pay such withholding taxes
with Shares to be received upon vesting. Elections must be made in conformity with conditions established by the Committee from time to time. 

  

	 	(c)	Conditions to Payment of Taxes with Stock. Any election to pay withholding taxes with stock must be made on or prior to the Tax Date and will be irrevocable once made. 

 

	9.	Changes in Capitalization and Government and Other Regulations. The Award shall be subject to all of the terms and provisions as provided in the Notice, this Agreement, the Terms and Conditions and the
Plan, which are incorporated by reference herein and made a part hereof, including, without limitation, the provisions of Section 10 of the Plan (generally relating to adjustments to the number of Shares subject to the Award, upon certain
changes in capitalization and certain reorganizations and other transactions). 

  

	10.	Return of Value of SPSUs to the Company. A breach by the Participant of any restrictions set forth in the Participant’s Confidentiality and Invention Assignment Agreement or Confidentiality,
Non-Competition and Proprietary Rights Agreement, as applicable, or any confidentiality agreement, employment agreement or offer letter between the Company or any of its Affiliates and the Participant, a breach by the Participant of the
Company’s Standards of Business Conduct, or a breach by the Participant of any of the other restrictions, terms and conditions of the Plan, the Terms and Conditions, including Section 8 thereof, the Notice or this Agreement, with respect
to any of the SPSUs or any Dividend Equivalents and Retained Distributions relating thereto, except as waived by the Board or the Committee, will cause such SPSUs and any Dividend Equivalents or Retained Distributions relating thereto not to be
fully earned and unrestricted and will obligate the Participant to return immediately to the Company the gross proceeds received in settlement of any vested SPSUs. Except as the Committee may otherwise determine in its sole discretion, the
Participant shall return Company Shares equal to the number of Shares delivered in settlement of any vested SPSUs if such SPSUs were settled in Shares or Participant shall pay cash equal to the value of cash paid to Participant in settlement of any
vested SPSUs if such payment was made in cash. 

  

	11.	 Right of Company to Terminate Employment. Nothing contained in the Plan, the Terms and Conditions, the Notice or this Agreement shall
confer on any Participant any right to continue in the employ of the Company or any of its Affiliates and the Company 

  
 8 

	 	
and any such Affiliate shall have the right to terminate the Employment of the Participant at any such time, with or without cause, notwithstanding the fact that some or all of the SPSUs and
related Dividend Equivalents and Retained Distributions covered by the Notice and this Agreement may be forfeited as a result of such termination. The granting of the SPSUs under the Notice and this Agreement shall not confer on the Participant any
right to any future Awards under the Plan. 

  

	12.	Notices. Any notice which either party hereto may be required or permitted to give the other shall be in writing and may be delivered personally or by mail, postage prepaid, addressed to AOL Inc. at 770
Broadway, New York, New York, 1003, attention: General Counsel, and to the Participant at his or her address, as it is shown on the records of the Company or its Affiliate, or in either case to such other address as the Company or the Participant,
as the case may be, by notice to the other may designate in writing from time to time. 

  

	13.	Interpretation and Amendments. The Committee has plenary authority to interpret the Notice, this Agreement, the Plan and the Terms and Conditions, to prescribe, amend and rescind rules relating thereto and
to make all other determinations in connection with the administration of the Plan. The Committee may from time to time modify or amend the Notice and this Agreement in accordance with the provisions of the Plan and the Terms and Conditions,
provided that no such amendment shall adversely affect the rights of the Participant under the Notice or this Agreement without his or her consent. 

  

	14.	Successors and Assigns. The Notice and this Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and shall be binding upon and inure to the benefit of the
Participant and his or her legatees, distributees and personal representatives. 

  

	15.	Copy of the Plan, Terms and Conditions and Documents. The Participant agrees and acknowledges that he or she has received and read a copy of the Terms and Conditions and the Plan. The Participant
acknowledges and agrees that the Participant may be entitled from time to time to receive certain other documents related to the Company, including the Company’s annual report to stockholders and proxy statement related to its annual meeting of
stockholders (which become available each year approximately three months after the end of the calendar year), and the Participant consents to receive such documents electronically through the Internet or as the Company otherwise directs.

  

	16.	Governing Law. The Notice and this Agreement shall be governed by, and construed in accordance with, the laws of the State of New York without regard to any choice of law rules thereof which might apply
the laws of any other jurisdiction. The Participant consents to personal jurisdiction in the state and federal courts of the State of New York in any proceeding concerning the SPSU Award. Any and all disputes between the Participant and the Company
or any Affiliate relating to the SPSU Award shall be brought only in a state or federal court of competent jurisdiction sitting in Manhattan, New York. 

  
 9 

	17.	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 the Notice and this Agreement. 

 

	18.	Submission to Jurisdiction; Service of Process. Any and all disputes between a Participant and the Company or any Affiliate relating to the Award granted hereunder 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
the Notice and 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 the Notice and 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 12 hereof. 

  

	19.	 Personal Data. The Company, the Participant’s local employer and the local employer’s parent company or companies may hold,
collect, use, process and transfer, in electronic or other form, certain personal information about the Participant for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan. Participant
understands that the following personal information is required for the above named purposes: his/her name, home address and telephone number, office address (including department and employing entity) and telephone number, e-mail address, date of
birth, citizenship, country of residence at the time of grant, work location country, system employee ID, employee local ID, employment status (including international status code), supervisor (if applicable), job code, title, salary, bonus target
and bonuses paid (if applicable), termination date and reason, tax payer’s identification number, tax equalization code, US Green Card holder status, contract type (single/dual/multi), any shares of stock or directorships held in the Company,
details of all grants of SPSUs (including number of grants, grant dates, vesting type, vesting dates, and any other information regarding SPSUs that have been granted, canceled, vested, or forfeited) with respect to the Participant, estimated tax
withholding rate, brokerage account number (if applicable), and brokerage fees (the “Data”). Participant understands that Data may be collected from the Participant directly or, on Company’s request, from
Participant’s local employer. Participant understands that Data may be transferred to third parties assisting the Company in the implementation, administration and management of the Plan, including the brokers approved by the Company, the
broker selected by the Participant from among such Company-approved brokers (if applicable), tax consultants and the Company’s software providers (the “Data Recipients”). Participant understands that some of these Data
Recipients may be located outside the 

  
 10 

	 	
Participant’s country of residence, and that the Data Recipient’s country may have different data privacy laws and protections than the Participant’s country of residence.
Participant understands that the Data Recipients will receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Participant’s participation in the Plan,
including any requisite transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding of Shares on the Participant’s behalf by a broker or other third party with whom the Participant may elect to
deposit any Shares acquired pursuant to the Plan. Participant understands that Data will be held only as long as necessary to implement, administer and manage the Participant’s participation in the Plan. Participant understands that Data may
also be made available to public authorities as required by law, e.g., to the U.S. government. Participant understands that the Participant may, at any time, review Data and may provide updated Data or corrections to the Data by written notice to
the Company. Except to the extent the collection, use, processing or transfer of Data is required by law, Participant may object to the collection, use, processing or transfer of Data by contacting the Company in writing. Participant understands
that such objection may affect his/her ability to participate in the Plan. Participant understands that he/she may contact the Company’s Stock Plan Administration to obtain more information on the consequences of such objection.

  

	20.	Compliance With Securities Laws. Notwithstanding any other provision of the Plan, the Terms and Conditions, the Notice or this Agreement to the contrary, absent an available exemption to
registration or qualification, the Company shall not be required to issue or transfer Shares to the Participant in settlement of its obligations herein prior to the completion of any registration or qualification of the Shares under applicable state
and federal securities or other laws, or under any ruling or regulation of any governmental body or national securities exchange that the Committee shall in its sole reasonable discretion determine to be necessary or advisable. 

 

	21.	Legend on Certificates. The certificates representing the Shares issued or transferred to the Participant by the Company in settlement of its obligations herein shall be subject to such stop
transfer orders and other restrictions as the Committee may deem reasonably advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares are listed,
any applicable federal or state laws and the Company’s Articles of Incorporation and Bylaws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

  

	22.	Representations, Warranties and Agreements Relating to Securities Laws. As a condition to the Company’s issuance or transfer to the Participant of any Shares in settlement of its obligations
herein, the Participant will make or enter into such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws or with the Notice and this Agreement.

  
 11

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