Document:

Incentive Performance Restricted Stock Unit Award Agreement (OCF version)

 Exhibit 10.17(H) 
 [OCF Version] 
 YAHOO! INC. 
 1995 STOCK PLAN 
 (AS AMENDED AND
RESTATED APRIL 24, 2007) 
 PERFORMANCE RESTRICTED STOCK UNIT AWARD AGREEMENT 
 THIS PERFORMANCE RESTRICTED STOCK UNIT AWARD AGREEMENT (the “Agreement”), dated as of February 25, 2009 (the “Date of Grant”),
is made by and between Yahoo! Inc., a Delaware corporation (the “Company”), and Carol Bartz (the “Grantee”). 
 WHEREAS,
the Company has adopted the Yahoo! Inc. 1995 Stock Plan, as amended (the “Plan”), pursuant to which the Company may grant Restricted Stock Units that are subject to performance-based vesting conditions; 
 WHEREAS, the Company desires to grant to the Grantee the number of Restricted Stock Units provided for herein; 
 NOW, THEREFORE, in consideration of the recitals and the mutual agreements herein contained, the parties hereto agree as follows: 
 Section 1. Grant of Restricted Stock Unit Award 
 (a) Grant of Restricted Stock Units. The Company hereby grants to the Grantee 162,070 Restricted Stock Units (such total number, the “Target Number” of Restricted Stock Units; and one-third of Target Number being the
“Annual Target Number” of Restricted Stock Units for each of 2009, 2010 and 2011) on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan (the “Award”). 
 (b) Incorporation of Plan; Capitalized Terms. The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise
expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. The Administrator shall
have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations thereunder, and its decision shall be binding and conclusive upon the Grantee and his/her legal representative in respect of any
questions arising under the Plan or this Agreement. 
  

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 Section 2. Terms and Conditions of Award 
 The grant of Restricted Stock Units provided in Section 1(a) shall be subject to the following terms, conditions and restrictions: 
 (a) Limitations on Rights Associated with Units. The Restricted Stock Units are bookkeeping entries only. The Grantee shall have no rights as a
stockholder of the Company, no dividend rights and no voting rights with respect to the Restricted Stock Units. 
 (b) Restrictions.
Restricted Stock Units and any interest therein, may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, except by will or the laws of descent and distribution. Any attempt to dispose of any Restricted Stock Units in
contravention of the above restriction shall be null and void and without effect. 
 (c) Lapse of Restrictions. Subject to Sections
2(e) through 2(g) below, the Restricted Stock Units credited to the Grantee for each Performance Year (as defined in Exhibit A) pursuant to the performance-based vesting provisions set forth in Exhibit A attached hereto shall vest and
become non-forfeitable upon the third anniversary of the Date of Grant; provided, however, that if a Change in Control (as defined in Section 2(g)) occurs prior to the third anniversary of the Date of Grant, the performance-based vesting
requirements referred to in this Section 2(c) shall not apply with respect to the year in which such Change in Control occurs or any subsequent Performance Year, and the following provisions shall apply: the number of Restricted Stock Units
that shall vest upon the third anniversary of the Date of Grant shall equal the sum of (i) the number of Restricted Stock Units (if any) credited (or to be credited) to the Grantee in accordance with Exhibit A with respect to Performance
Year(s) ended prior to the year in which the Change in Control occurs (“Credited Restricted Stock Units”), plus (ii) the Annual Target Number of Restricted Stock Units for the Performance Year in which the Change in Control occurs and
any subsequent Performance Year(s) (the “Remaining Uncredited Restricted Stock Units”). Any Restricted Stock Units that do not vest in accordance with the foregoing provisions of this Section 2(c) or pursuant to the provisions of
Sections 2(e) through 2(g) below shall terminate as of the third anniversary of the Date of Grant. 
 (d) Timing and Manner of Payment of
Restricted Stock Units. As soon as practicable after (and in no case more than seventy-four days after) the date any Restricted Stock Units subject to the Award become non-forfeitable (the “Payment Date”), such Restricted
Stock Units shall be paid by the Company delivering to the Grantee, a number of Shares equal to the number of Restricted Stock Units that become non-forfeitable upon that Payment Date. The Company shall issue the Shares either (i) in
certificate form or (ii) in book entry form, registered in the name of the Grantee. Delivery of any certificates will be made to the Grantee’s last address reflected on the books of the Company and its Subsidiaries unless the Company is
otherwise instructed in writing. Neither the Grantee nor any of the Grantee’s successors, heirs, assigns or personal representatives shall have any further rights or interests in any Restricted Stock Units that are so paid. Notwithstanding
anything herein to the contrary, the Company shall have no obligation to issue Shares in payment of the Restricted Stock Units unless such issuance and such payment shall comply with all relevant provisions of law and the requirements of any Stock
Exchange. 
  

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 (e) Termination of Employment. The following provisions shall apply in the event of the
termination of the Grantee’s employment or service with the Company, Parent or any Subsidiary: 
 (i) Except as expressly
provided below in Sections 2(e)(ii) or Section 2(g), in the event of the termination of the Grantee’s employment or service with the Company, Parent or any Subsidiary for any reason prior to the lapsing of the restrictions in accordance
with Section 2(c) hereof with respect to any of the Restricted Stock Units granted hereunder, such portion of the Restricted Stock Units held by Grantee shall be automatically forfeited by the Grantee as of the date of termination. Neither the
Grantee nor any of the Grantee’s successors, heirs, assigns or personal representatives shall have any rights or interests in any Restricted Stock Units that are so forfeited. 
 (ii) Notwithstanding the foregoing clause (i) but subject to Section 2(g) below, in the event the Grantee’s employment or
service with the Company, Parent or any Subsidiary is terminated (A) as a result of the Grantee’s death or Disability, (B) by the Company, Parent or any Subsidiary without Cause or (C) by the Grantee with Good Reason (a
“Qualifying Termination”), the Restricted Stock Units shall vest as set forth below: 
 (A) If a Qualifying
Termination occurs prior to any Change in Control (as defined in Section 2(g)), upon the date of the Grantee’s termination, any Restricted Stock Units credited (or to be credited) to the Grantee in accordance with Exhibit A with
respect to Company performance for any Performance Year ended prior to the year in which such termination occurs, to the extent then not vested, shall vest and become non-forfeitable. In addition, (A) upon December 31 of the Performance
Year in which the Grantee’s Qualifying Termination occurs, any Restricted Stock Units credited (or to be credited) to the Grantee in accordance with Exhibit A with respect to Company performance for such Performance Year (assuming no
termination of employment had occurred), shall vest and become non-forfeitable and (B) upon December 31 of any Performance Year following the Performance Year in which the Grantee’s Qualifying Termination occurs, the Restricted Stock
Units shall be subject to pro-rata vesting such that the number of Restricted Stock Units that shall become vested and non-forfeitable shall equal (x) any Restricted Stock Units credited (or to be credited) to the Grantee in accordance with
Exhibit A with respect to Company performance for such Performance Year (assuming no termination of employment had occurred), multiplied by (y) a fraction (not greater than 1), the numerator of which is the number of full months the Grantee was
employed or rendering services in the Performance Year in which the Grantee’s Qualifying Termination occurs (such numerator, the “Number of Additional Months”) and the denominator of which is twelve (12). Any Restricted Stock Units
that do not vest in accordance with the two preceding sentences shall terminate and be forfeited effective as of December 31 of the applicable Performance Year. 
  

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 Notwithstanding the foregoing, if a Change in Control occurs after a Qualifying
Termination and prior to the third anniversary of the Date of Grant, upon the date of the Change in Control, the Restricted Stock Units that shall become vested and non-forfeitable shall equal the sum of: (i) the number of Credited Restricted
Stock Units, plus either (A) if the Change in Control occurs in the Performance Year in which the Grantee’s Qualifying Termination occurs, the number of Remaining Uncredited Restricted Stock Units multiplied by (x) a fraction (not
greater than 1), the numerator of which is twelve (12) plus the Number of Additional Months, and the denominator of which is the number of whole months between January 1 of the year in which the Change in Control occurs and
December 31 of the third Performance Year or (B) if the Change in Control occurs in any Performance Year following the Performance Year in which the Grantee’s Qualifying Termination occurs, the number of Remaining Uncredited
Restricted Stock Units multiplied by (y) a fraction (not greater than 1), the numerator of which is the Number of Additional Months, and the denominator of which is the number of whole months between January 1 of the year in which the
Change in Control occurs and December 31 of the third Performance Year. Any Restricted Stock Units that do not vest upon the date of the Change in Control shall terminate and be forfeited as of the date of the Change in Control. 
 (B) If a Change in Control occurs prior to the third anniversary of the Date of Grant and a Qualifying Termination occurs after such
Change in Control, then upon the date of the Grantee’s termination, the Restricted Stock Units that shall become vested and non-forfeitable shall equal the sum of: (i) the number of Credited Restricted Stock Units, plus (ii) the
number of Remaining Uncredited Restricted Stock Units multiplied by (y) a fraction (not greater than 1), the numerator of which is the number of whole months between January 1 of the year in which the Change in Control occurs and the date
of such termination of employment plus twelve (12), and the denominator of which is the number of whole months between January 1 of the year in which the Change in Control occurs and December 31 of the third Performance Year; and any
Restricted Stock Units that do not vest in accordance with the foregoing provisions of this clause (B) shall terminate and be forfeited as of the date of termination. 
 (iii) For purposes of this Agreement, “Disability,” “Cause,” and “Good Reason” shall have the same meanings
as in the Grantee’s employment agreement with the Company entered into on January 13, 2009 (the “Employment Agreement”). 
 (f) Corporate Transactions. Subject to any better treatment provided for in Section 2(g) below, the following provisions shall apply to the corporate transactions described below: 
 (i) In the event of a proposed dissolution or liquidation of the Company, the Award will terminate and be forfeited immediately prior to
the consummation of such proposed transaction, unless otherwise provided by the Administrator. 
  

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 (ii) 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 Award shall be assumed or substituted with an equivalent award by such successor corporation, parent or subsidiary of such successor corporation; provided that the
Administrator may determine, in the exercise of its sole discretion in connection with a transaction that constitutes a permissible distribution event under Section 409A(a)(2)(v) of the Code, that in lieu of such assumption or substitution, the
Award shall be vested and non-forfeitable and any conditions or restrictions on the Award shall lapse, as to all or any part of the Award, including Restricted Stock Units as to which the Award would not otherwise be non-forfeitable. 
 (g) Change in Control. The following provisions shall apply in the event of a Change in Control prior to the third anniversary of the Date of
Grant, and in the event the Grantee becomes entitled to accelerated vesting under this Section 2(g) and any other provision of Section 2 above, the Grantee shall be entitled to the accelerated vesting provided by all such sections (but the
Grantee shall in no event become vested and non-forfeitable in more than the Credited Restricted Stock Units and the Remaining Uncredited Restricted Stock Units): 
 (i) If a Change in Control occurs during the Term or thereafter and the Restricted Stock Units subject to the Award are not continued,
assumed or substituted, the Credited Restricted Stock Units and the Remaining Uncredited Restricted Stock Units, to the extent then outstanding and not vested, shall become fully vested and non-forfeitable as of the date of such Change in Control.

 (ii) In the event that, upon or within two (2) years after a Change in Control that occurs during the Term, the
Grantee’s employment or service with the Company, Parent or any Subsidiary is terminated by the Company, Parent or any Subsidiary without Cause or by the Grantee with Good Reason (as such terms are defined in the Employment Agreement), the
Credited Restricted Stock Units and the Remaining Uncredited Restricted Stock Units, to the extent then outstanding and not vested, shall become fully vested and non-forfeitable as of the date of such termination. 
 (iii) If after the execution of an agreement during the Term that would result in a Change in Control if such agreement were consummated
(a “CIC Agreement”) and prior to the occurrence of either a Change in Control or the termination of the obligations to close under the CIC Agreement, the Grantee’s employment or service with the Company, Parent or any Subsidiary is
terminated by the Company, Parent or any Subsidiary without Cause or by the Grantee with Good Reason (as such terms are defined in the Employment Agreement) and subsequent to such termination the Change in Control under the CIC Agreement is
consummated, the Credited Restricted Stock Units and the Remaining Uncredited Restricted Stock Units, to the extent then outstanding and not vested, shall become fully vested and non-forfeitable upon the consummation of such Change in Control.

  

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 (iv) For purposes of this Agreement, “Change in Control” shall mean the first
of the following events to occur after the Date of Grant: 
 (A) any person or group of persons (as defined in
Section 13(d) and 14(d) of the Exchange Act) together with its Affiliates (as defined below), but excluding (i) the Company or any of its subsidiaries, (ii) any employee benefit plans of the Company or (iii) a corporation owned,
directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company (individually a “Person” and collectively, “Persons”), is or becomes, directly or
indirectly, the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of securities of the Company representing forty percent (40%) or more of the combined voting power of the Company’s then outstanding securities;

 (B) the consummation of a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with
any other corporation or entity regardless of which entity is the survivor, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of the Company, such surviving entity or any parent thereof outstanding
immediately after such merger or consolidation; or 
 (C) the stockholders of the Company approve a plan of complete
liquidation or winding-up of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, provided, however, that a sale of the Company’s search business
shall not constitute a Change in Control, regardless of whether stockholders approve the transaction. 
 (v) For purposes of
this Agreement, “Affiliate” means, with respect to any individual or entity, any other individual or entity who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with, such
individual or entity. 
 (vi) For purposes of this Agreement, “Term” shall have the same meaning as in the
Employment Agreement. 
 If at the time of a Change in Control, the Company’s Change in Control Employee Severance Plan or similar plan
(to the extent such a plan exists and applies) applicable at the time of a Change in Control provides for better treatment for the Company’s Restricted Stock Units granted in 2009 that include operating cash flow-based performance vesting
provisions and are then held by the Company’s other senior executives generally than is provided under this Section 2(g), the Grantee shall be entitled to such better treatment with respect to the Restricted Stock Units subject to the
Award. 
  

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 (h) Income Taxes. Except as provided in the next sentence, the Company shall withhold and/or
reacquire a number of Shares issued in payment of (or otherwise issuable in payment of, as the case may be) the Restricted Stock Units having a Fair Market Value equal to the taxes that the Company determines it or the Employer is required to
withhold under applicable tax laws with respect to the Restricted Stock Units (with such withholding obligation determined based on any applicable minimum statutory withholding rates). In the event the Company cannot (under applicable legal,
regulatory, listing or other requirements, or otherwise) satisfy such tax withholding obligation in such method, the Company may satisfy such withholding by any one or combination of the following methods: (i) by requiring the Grantee to pay
such amount in cash or check; (ii) by deducting such amount out of any other compensation otherwise payable to the Grantee; and/or (iii) by allowing the Grantee to surrender shares of Common Stock of the Company which (a) in the case
of shares initially acquired from the Company (upon exercise of a stock option or otherwise), have been owned by the Grantee for such period (if any) as may be required to avoid a charge to the Company’s earnings, and (b) have a Fair
Market Value on the date of surrender equal to the amount required to be withheld. For these purposes, the Fair Market Value of the Shares to be withheld or repurchased, as applicable, shall be determined on the date that the amount of tax to be
withheld is to be determined. 
 (i) Release. The Grantee’s rights to receive any accelerated vesting of the Restricted Stock
Units subject to the Award in connection with a termination of the Grantee’s employment or service pursuant to Section 2 shall require the Grantee to execute and deliver to the Company (with the period to revoke expiring without the
Grantee’s revocation) within sixty (60) days of such termination (or, if earlier, the date the Company is required to make payment hereunder in connection with such termination) a release in the form annexed to the Employment Agreement.
The Grantee shall also be required to promptly resign from the Board and all officerships, directorships or fiduciary positions with the Company and its Affiliates upon a termination of the Grantee’s employment or service. 
 Section 3. Miscellaneous 
 (a) Notices.
Any and all notices, designations, consents, offers, acceptances and any other communications provided for herein shall be given in writing and shall be delivered either personally or by registered or certified mail, postage prepaid, which shall be
addressed, in the case of the Company to both the Chief Financial Officer and the General Counsel of the Company at the principal office of the Company and, in the case of the Grantee, to the Grantee’s address appearing on the books of the
Company or to the Grantee’s residence or to such other address as may be designated in writing by the Grantee. 
 (b) No Right to
Continued Employment. Nothing in the Plan or in this Agreement shall confer upon the Grantee any right to continue in the employ of the Company, a Parent or any Subsidiary or shall interfere with or restrict in any way the right of the Company,
Parent or any Subsidiary, which is hereby expressly reserved, to remove, terminate or discharge the Grantee at any time for any reason whatsoever, with or without Cause and with or without advance notice. 
  

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 (c) Bound by Plan. By signing this Agreement, the Grantee acknowledges that she has received a
copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan. 
 (d)
Successors. The terms of this Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns, and of the Grantee and the beneficiaries, executors, administrators, heirs and successors of the Grantee.

 (e) Invalid Provision. The invalidity or unenforceability of any particular provision thereof shall not affect the other provisions
hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision had been omitted. 
 (f)
Modifications. No change, modification or waiver of any provision of this Agreement shall be valid unless the same is in writing and signed by the parties hereto. 
 (g) Entire Agreement and Full Satisfaction. This Agreement, the Plan and the Employment Agreement contain the entire agreement and understanding of the parties hereto with respect to the subject matter
contained herein and therein and supersede all prior communications, representations and negotiations in respect thereto. The Restricted Stock Units subject to the Award, along with the other long-term incentive awards granted to the Grantee under
the Plan on or around the date hereof, shall be in complete satisfaction of any and all rights the Grantee may have, under the Employment Agreement or otherwise, to receive annual equity grants for 2009. 
 (h) Repayment Obligation. In the event of a restatement of financial results, the Restricted Stock Units subject to the Award shall be subject to
the repayment and other obligations contained in Section 10 of the Employment Agreement (the clawback provisions). 
 (i)
Adjustments. For purposes of the Restricted Stock Units subject to the Award, the term “stock dividend” under Section 16 of the Plan shall include dividends or other distributions of the stock of the subsidiaries of the
Company. 
 (j) Governing Law. This Agreement and the rights of the Grantee hereunder shall be construed and determined in accordance
with the laws of the State of Delaware. 
 (k) Headings. The headings of the Sections hereof are provided for convenience only and are
not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement. 
 (l) Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  

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 IN WITNESS WHEREOF, this Agreement has been
executed and delivered by the parties hereto as of the 25th day of February, 2009. 
  

			
	YAHOO! INC.
	
	 /s/ Blake Jorgensen

	By:	 	Blake Jorgensen
	Its:	 	Chief Financial Officer

			
	
	Carol Bartz
		
	Signature:	 	 /s/ Carol Bartz

	Printed Name:	 	Carol Bartz
	Address:	 	701 First Avenue
		 	Sunnyvale, CA 94089

  

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 EXHIBIT A 
 PERFORMANCE-BASED REQUIREMENTS 
 For each of 2009, 2010 and 2011 (each, a “Performance
Year”), the Grantee shall be credited with a number of Restricted Stock Units based on the Company’s actual Operating Cash Flow (as defined below) for that Performance Year in comparison with the Annual OCF Performance Target (as defined
below) established by the Administrator for that Performance Year. For each Performance Year, the percentage of the Annual Target Number of Restricted Stock Units that shall be credited for such Performance Year shall be determined based on the
percentage of the Annual OCF Performance Target achieved as set forth below 
  

				
	 Actual OCF as a Percentage of Annual OCF Performance Target
	  	Percentage of Annual
Target Number of
Restricted Stock Units
Credited	 
	 Less than 85%
	  	0	%
	 85%
	  	50	%
	 100%
	  	100	%
	 105%
	  	120	%
	 115%
	  	170	%
	 120% or greater
	  	200	%

 The Annual Target Number of Restricted Stock Units will be credited to the Grantee if the Company
achieves 100% of the OCF Performance Target for that Performance Year, with the maximum number of Restricted Stock Units that may be credited for any Performance Year being 200% of the Annual Target Number. If the Actual OCF as a Percentage of the
Annual OCF Performance Target is between 85% and 120% and falls between two of the performance levels identified in the table above, the Percentage of the Annual Target Number of Restricted Stock Units to be credited shall be determined by linear
interpolation between the levels stated in the chart above. 
 Any Restricted Stock Units credited to the Grantee pursuant to the foregoing
provisions shall continue to be subject to the vesting provisions set forth in Section 2 of this Agreement. The Annual OCF Performance Target for each year shall be established by the Administrator not later than ninety (90) days after the
start of such year and in all events at a time when it is substantially uncertain whether the Target will be achieved. The Administrator shall, following the end of each Performance Year, determine, whether and the extent to which the applicable OCF
Performance Target has been satisfied. Such determinations by the Administrator shall be final and binding. In no event shall the Grantee be credited more than 200% of the Annual Target Number of Restricted Stock Units for any one Performance Year;
and in no event shall the Grantee be entitled to payment of more than 200% of the Target Number of Restricted Stock Units subject to this Award. 
  

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 For purposes of the Award, the following definitions shall apply: 
  

	 	•	 	 “Annual OCF Performance Target” means, with respect to each Performance Year, the Operating Cash Flow target established by the Administrator for
such Performance Year for purposes of the Award. 

  

	 	•	 	 “Operating Cash Flow” means the Company’s operating income before depreciation, amortization and stock-based compensation expense as
determined by the Company on the basis of its annual financial statements; provided, however, Operating Cash Flow shall be adjusted by the Administrator as follows: 

  

	 	(a)	increased or decreased to eliminate the financial statement impact of acquisitions and costs associated with such acquisitions and the costs incurred in connection with potential
acquisitions that are required to be expensed under Statement of Financial Accounting Standards (“SFAS”) No. 141 (revised 2007), “Business Combinations” (“SFAS 141R”); 

  

	 	(b)	increased or decreased to eliminate the financial statement impact of divestitures and costs associated with such divestitures and the costs incurred in connection with potential
divestitures that are required to be expensed under SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” (“SFAS 144”); 

  

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

  

	 	(d)	increased or decreased to eliminate the financial statement impact of restructuring charges that are required to be expensed (or reversed) under SFAS No. 146,
“Accounting for Costs Associated With Exit or Disposal Activities” &/or SFAS No. 112, “Employers’ Accounting for Postemployment Benefits” &/or SFAS No. 144, resulting from a corporate
reorganization; 

  

	 	(e)	increased or decreased to eliminate the financial statement impact of impairment charges that are required to be recorded under SFAS No. 142, “Goodwill and Other
Intangible Assets”; and 

  

	 	(f)	increased or decreased to adjust the foreign exchange translation impact on Operating Cash Flow to reflect the foreign exchange rates in effect when the Company’s OCF
Performance Target is established. 

  

 2Yahoo! Inc. Executive Incentive Plan

 Exhibit 10.18 
  
 Yahoo! Executive Incentive Plan 
  
  
  
  
  
  
  

  
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 Yahoo! EIP 
  
  
 I. Introduction 
 A. Applicability 
  

	 	1.	Employees eligible to participate in the Yahoo! Inc. Executive Incentive Plan (the “EIP” or “this Plan”) are those employees of Yahoo! Inc. and its subsidiaries
(collectively, the “Company”) at job levels E3, E4, E5 and EX. The Compensation Committee of Yahoo!’s Board of Directors (the “Compensation Committee”) has the sole discretion to determine whether the EIP will be offered to
any executive for whom the Compensation Committee sets the executive’s compensation level (an “Executive Officer”). Yahoo!’s Chief Executive Officer (“CEO”) or his or her designee will determine whether any other
eligible person (other than an Executive Officer) is a participant. Participants will be notified in writing of their participation in this Plan and will be provided with a copy of the EIP, which they must sign and accept in order to participate
(any person so notified who timely accepts participation is referred to as a “Participant”). 

  

	 	2.	The Compensation Committee reserves the right to amend, modify or terminate the EIP, in whole or in part, at any time, in its sole discretion including, without limitation, to comply with
applicable local law, rules and regulations. 

 B. Objectives of the EIP 
  

	 	•	 	 To enhance the Company’s competitiveness and the Company’s ability to attract, motivate and retain top talent; 

  

	 	•	 	 To recognize the role of senior leadership in the success of the Company; 

  

	 	•	 	 To reward annual financial and individual performance that complements the Company’s longer-term strategic focus; and 

  

	 	•	 	 To encourage collaboration and teamwork across the Company. 

 II. EIP
Elements 
 A. Target Awards 
 A target
cash bonus award (“Target Award”) will be established for each Participant. Target Awards are determined by position level and will be typically expressed as a percentage of a Participant’s annual base salary rate as of the last day
of the applicable fiscal year, where such salary rate does not include other forms of compensation including without limitation expense reimbursements, superannuation, bonus payments, long-term incentives, overtime compensation, or other variable
compensation. Target Awards may also be a specified fixed dollar (or local currency) amount. 
 Target Awards for Executive Officers may be reviewed
and revised in the sole discretion of the Compensation Committee. Target Awards for other Participants may be reviewed and revised in the sole discretion of the CEO or his or her designee. 
 This EIP and Target Awards do not constitute a guarantee of or entitlement to a bonus payment. A Participant’s actual bonus payment may vary from his or her
Target Award. 
  
  

  
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 Yahoo! EIP 
  
  
 B. EIP Bonus Pool Funding 
 Individual Target Awards will be aggregated and multiplied by a factor of 100% to determine the Company’s target bonus pool (the “Target Bonus
Pool”) for the applicable fiscal year. The actual EIP bonus pool (the “EIP Bonus Pool”) for the applicable fiscal year may vary from 50% to 200% of the Target Bonus Pool based on the Company’s actual Operating Cash Flow
(“OCF”) (as defined below) for the applicable fiscal year. The Compensation Committee will establish prior to March 31 of the applicable fiscal year an OCF target for that fiscal year (the “Financial Target”). The EIP Bonus
Pool will be determined based on the percentage of the Financial Target achieved for the applicable fiscal year according to the following table: 
  

			
	Actual OCF
Performance
as percentage of
the
Financial Target	 	EIP Bonus Pool Funding
as percentage of the
Target Bonus Pool
	85% or Less	 	50%
	100%	 	100%
	105%	 	120%
	115%	 	170%
	120% or Greater	 	200%

 The EIP Bonus Pool will be funded according to the table above, and by way of example the maximum EIP Bonus
Pool (200% of the Target Bonus Pool) will be funded only if the Company’s OCF for the applicable fiscal year is at least 120% or more of the Financial Target. The EIP Bonus Pool funding percentage will be interpolated on a linear basis for
performance against the Financial Target between the levels stated in the table above. 
 “Operating Cash Flow” means the Company’s
operating income before depreciation, amortization, and stock-based compensation expense, as determined by the Company on the basis of its annual financial statements. For purposes of the EIP, and without limiting discretion of the Compensation
Committee hereunder, Operating Cash Flow shall be adjusted by the Compensation Committee as follows: 
  

	 	(a)	increased or decreased to eliminate the financial statement impact of acquisitions and costs associated with such acquisitions and the costs incurred in connection with potential acquisitions
that are required to be expensed under Statement of Financial Accounting Standards (“SFAS”) No. 141 (revised 2007), “Business Combinations” (“SFAS 141R”); 

  

	 	(b)	increased or decreased to eliminate the financial statement impact of divestitures and costs associated with such divestitures and the costs incurred in connection with potential divestitures
that are required to be expensed under SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” (“SFAS 144”); 

  

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

  

	 	(d)	increased or decreased to eliminate the financial statement impact of restructuring charges that are required to be expensed (or reversed) under SFAS No. 146, “Accounting for Costs
Associated With Exit or Disposal Activities” &/or SFAS No. 112, “Employers’ Accounting for Postemployment Benefits” &/or SFAS No. 144, resulting from a corporate reorganization; 

  

  
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 Yahoo! EIP 
  
  
  

	 	(e)	increased or decreased to eliminate the financial statement impact of impairment charges that are required to be recorded under SFAS No. 142, “Goodwill and Other Intangible
Assets”; and 

  

	 	(f)	increased or decreased to adjust the foreign exchange translation impact on Operating Cash flow to reflect the foreign exchange rates in effect when the performance goal is established.

 C. EIP Bonus Pool Allocation and Individual Awards 
 Allocation of the EIP Bonus Pool among the Participants will be determined based on a combination of Company performance and individual performance. Seventy
percent (70%) of each Participant’s EIP bonus will be directly linked to the Company’s actual OCF performance against the Financial Target. Thirty percent (30%) of each Participant’s bonus will be based on each
Participant’s individual performance and relative contribution as determined by the CEO or his or her designee (or by the Compensation Committee in the case of Executive Officers) in his/her or its sole discretion. 
 The calculation of a Participant’s EIP bonus will be made in conjunction with the Company’s Focal Review Process for the applicable fiscal year, which
shall occur in the first quarter of the following fiscal year and follow the process below. 
 Step 1: Multiply the Target Bonus Pool by the EIP
Bonus Pool funding percentage, determined as described above. This is the total EIP Bonus Pool. 
 Step 2: Determine the portion of the EIP
Bonus Pool payable to each Participant for Company performance: 
  

					
	  
 Individual Target Award (Dollars) X EIP Bonus Pool Funding % X 70%
	  	  
 =

	  	EIP Bonus for Company Performance

 Step 3: Determine the portion of the EIP Bonus Pool payable to each Participant for individual
performance. 
 The CEO or his or her designee shall determine the portion of the EIP bonus for the non-Executive Officer Participants based on
individual performance and relative contribution. The Compensation Committee shall determine the portion of the EIP bonus for Executive Officers based on individual performance and relative contribution. 
 Step 4: Calculate the total EIP bonus to be paid to each Participant: 
  
  

					
	a) Portion of EIP Bonus for Company Performance	  	=	  	Amount determined in Step 2
			
	 b) Portion of EIP Bonus for Individual Performance
  
	  	 =
  
	  	 Amount determined in Step 3
  

	  
 Total EIP Bonus
	  	  
 =
	  	  
 Sum of (a + b)

  
  

  
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 Yahoo! EIP 
  
  
 The aggregate total of bonuses payable to Participants
under this Plan shall not exceed the EIP Bonus Pool determined in Step 1 above. 
 Any EIP bonus payable to a Participant under this Plan shall not be
considered as “salary” in any circumstance and shall not be included in calculations for overtime pay, retirement benefits, or severance under any applicable severance plan or applicable law. 
 III. TERMS AND CONDITIONS 
 A. EIP Effective Period 
 The initial fiscal year covered by this Plan is the period from January 1 to December 31, 2009. This EIP supersedes all previous executive cash incentive
plans, management incentive plans (MIP), or leadership bonus plans and agreements and all other previous or contemporaneous oral or written statements by the Company on this subject. 
 B. Date for Incentive Payments 
 EIP bonuses paid under
this Plan are not earned until paid. It is a condition for EIP eligibility that Participants must be employed, and not under notice of termination given by the Company or the Participant (if applicable), on the payment date of the EIP bonuses
(except as otherwise provided in Section I – Terminations of Employment). Payment will not occur until after financial results for the applicable fiscal year are determined by the Company and the Focal Review process for the applicable year is
completed. 
 C. Form and Timing of Payment 
 If the conditions for payment described above are met, the EIP bonus will be payable in a lump sum cash payment (in local currency), subject to required payroll deductions and tax withholdings no later than March 15 of the year
following the end of the applicable fiscal year. 
 D. New Hires 
 If an employee is hired into a job that qualifies for the EIP on or before October 1 of the applicable fiscal year and is notified in writing that he or she is a Participant under the EIP, the employee’s Target Award
amount for the fiscal year may be prorated based on the date of hire. 
 Employees who are hired after October 1 of the applicable fiscal year
will not be considered Participants under the EIP for that fiscal year. 
 E. Transfers 
 If a Participant transfers from one EIP-eligible position to another during the applicable fiscal year, the following guidelines shall apply: 
  

	 	•	 	 If the participant has a different Target Award upon transfer, his/her annual Target Award amount may be prorated based on the Target Award percentages for the amount of time
spent in each position during the fiscal year. 

  
  
  

  
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 Yahoo! EIP 
  
  
  

	 	•	 	 If a Participant transfers mid-year from an EIP-eligible position to one that is not EIP eligible (for example, moving to a role that participates in the sales incentive plan
and therefore off EIP), the Compensation Committee with respect to Executive Officers (or the CEO or his or her designee with respect to non-Executive Officers), in its sole discretion, may award the employee an EIP bonus based on a prorated EIP
Target Award. Any such payment will be paid at the same time as other EIP payments are paid. 

  

	 	•	 	 EIP eligibility for employees participating in a global assignment during the applicable fiscal year will be handled on a case-by-case basis based on individual facts and
circumstances. 

 The Compensation Committee with respect to Executive Officers (and the CEO or his or her designee with respect to
non-Executive Officers) has the sole discretion to pro-rate, reduce, offset, or eliminate EIP bonuses to account for advances or payouts to employees under other bonus plans in effect during the same fiscal year, or for other reasons as it deems
appropriate. 
 F. Promotions into EIP-Eligible Positions 
 If a Participant is promoted from one EIP-eligible position to another, the payouts will be administered the same as Transfers. If an employee is not in a position that is eligible for the EIP and is promoted to a EIP
eligible position during the applicable fiscal year, the Compensation Committee or the CEO or his or her designee as applicable, may select the employee for participation in the EIP by notifying the employee that he or she is a Participant under the
EIP. The employee’s Target Award amount for the fiscal year shall be prorated based on the date of the promotion. 
 G. Adjustments to Target
Awards 
 The Compensation Committee in its sole discretion can approve adjustments to Target Awards for Executive Officers during the applicable
fiscal year. The CEO or his or her designee in his or her sole discretion may approve adjustments to Target Awards for other Participants during the applicable fiscal year. Any such changes will be communicated to the Participant in writing. Any
payout amount may be prorated based on the effective date of the change to the Target Award as determined by the Compensation Committee or the CEO or designee thereof, as applicable. Any adjustment to a Target Award will result in a corresponding
adjustment to the Target Bonus Pool. 
 H. Leaves of Absence and Part-Time Employees 
 To the extent permitted by applicable law, the amount of the EIP bonus may be prorated for Participants who have been on an approved leave of absence of more than
90 days during the fiscal year and for Participants who work less than full-time. 
 I. Terminations of Employment 
 To the extent permitted by applicable law, Participants whose employment is voluntarily or involuntarily terminated (with or without cause) by the Participant or
the Company or are under notice of termination given by either party (if applicable) prior to the payment date of the EIP bonus will not be eligible for and shall not receive any EIP bonus. 
 Participants whose employment terminates due to the employee’s total disability during the applicable year will be eligible for a prorated EIP bonus, based on
the date of termination, and paid at the time other EIP bonuses are paid under the EIP, to the extent permitted by local law. If a Participant dies during the applicable fiscal year, the EIP bonus will be prorated based on the date of death and paid
to the estate of the deceased participant, at the time other EIP bonuses are paid. 
  

  
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 Yahoo! EIP 
  
  
 J. EIP Interpretation 
 The EIP shall be interpreted by the Compensation Committee. The Compensation Committee has the sole discretion to interpret or construe ambiguous, unclear or
implied (but omitted) terms and shall resolve any and all questions regarding interpretation and/or administration. 
 Participants who have issues
regarding payments or the administration of the EIP may file a claim in writing to the Compensation Committee, c/o the Secretary of the Company, within 90 days of the date on which the Participant first knew (or should have known) of the facts on
which the claim is based. The Compensation Committee or its designee(s) shall consider the claim and notify the Participant in writing of the determination and resolution of the issue. Claims that are not pursued through this procedure shall be
treated as having been irrevocably waived. The determination of the Compensation Committee or its designee(s) as to any complaint or dispute will be final and binding and shall be upheld unless arbitrary or capricious or made in bad faith.

 The provisions of this EIP are severable and if any provision is held to be unenforceable by any court of competent jurisdiction then such
unenforceability shall not affect the enforceability of the remaining EIP provisions. 
 K. Exceptions and Modifications 
 All exceptions, adjustments, additions, or modifications to the EIP require the written approval of the Compensation Committee, or its designee(s). 
 All aspects of the EIP (including, but not limited to, financial targets, Target Awards, performance measures, and funding formulas) may be reviewed and revised at
any time without advance notice in the sole discretion of the Compensation Committee. 
 L. Employment At-Will (U.S. Employees only) 

The employment of all Participants in the United States is “at will” and is terminable by either the Participant or Yahoo! at any time, with or
without advance notice and with or without cause. This EIP shall not be construed to create a contract of employment for a specified period of time between Yahoo! and any U.S. Participant. 
 [signature page follows] 
  
  
  
  

  
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 Yahoo! EIP 
  
  
 M. EIP Acknowledgement 
 This will acknowledge that the Participant specified below has read comprehended, and agreed to this EIP and will abide by the guidelines outlined herein for all
bonus payments. The EIP sets forth the entire agreement and understanding between the Company and the Participant relating to the subject matter herein and supersedes and replaces any and all prior plans, agreements, discussions and understandings
whether oral or written regarding these subject matters including but not limited to any provision regarding cash incentive plan compensation contained in a Participant’s employment agreement, if any. 
 I have read and understood the provisions of this EIP and hereby agree to and accept its terms: 
  

	
	Participant (print name)
	
	  
	 Signature

	
	  
	 Title

	
	  
	 Date

  
  
 CC: Personnel File 
  
  
  
  

  
 8

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