Document:

Prepared by MerrillDirect

 

BIO-TECHNOLOGY GENERAL CORP.

2001 STOCK OPTION PLAN

             1.          Purpose.  The purpose of the Bio-Technology General
Corp. 2001 Stock Option Plan (the “Plan”) is to enable Bio-Technology General
Corp. (the “Company”) and its stock­holders to secure the benefits of common
stock ownership by key personnel of the Company and its affiliates.  The Board of Directors of the Company (the
“Board”) believes that the granting of options under the Plan will foster the
Company's ability to attract, retain and motivate those individuals who will be
largely responsible for the continued profitability and long-term future growth
of the Company.

             2.          Stock
subject to the Plan.  Subject
to adjustment as provided in Section 6 below, the Company may issue a total of
10,000,000 shares of its common stock, $.01 par value (the “Common Stock”),
pursuant to the Plan.  Such shares may
be either authorized and unissued or held by the Company in its treasury.  New options may be granted under the Plan
with respect to shares of Common Stock which are covered by the unexercised
portion of an option which has terminated or expired by its terms, by
cancellation or otherwise.

             3.          Administration.  The Plan will be administered by the Board
or by a committee (the Board in such capacity or such committee being referred
to as the “Committee”) consisting of at least three directors appointed by and
serving at the pleasure of the Board. 
Subject to the provisions of the Plan, the Committee, acting in its sole
and absolute discre­tion, will have full power and authority to grant options
under the Plan, to interpret the provisions of the Plan, to fix and interpret
the provisions of option agreements made under the Plan, to supervise the
administration of the Plan, and to take such other action as may be necessary
or desirable in order to carry out the provisions of the Plan.  A majority of the members of the Committee
will constitute a quorum.  The Committee
may act by the vote of a majority of its members present at a meeting at which
there is a quorum or by unanimous written consent.  The decision of the Committee as to any disputed question, includ­ing
questions of construction, interpretation and administra­tion, will be final
and conclusive on all persons.  The
Commit­tee will keep a record of its proceedings and acts and will keep or
cause to be kept such books and records as may be necessary in connection with
the proper administration of the Plan. The Company shall indemnify and hold
harmless each member of the Committee and the Board and any employee of the
Company who provides assistance with the administration of the Plan from and
against any loss, cost, liability (including any sum paid in settlement of a
claim with the approval of the Board), damage and expense (including the
advancement of reasonable legal and other expenses incident thereto) arising
out of or incurred in connection with the Plan, unless and except to the extent
attributable to such person’s fraud or willful misconduct.

             4.          Eligibility.  Options may be granted under the Plan to
present or future employees of the Company or an affiliate of the Company and
to directors of, or consultants to, the Company or an affiliate who are not
employees, provided that incentive stock options (“Incentive Stock Options”)
within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”), may only be granted to employees of the Company or a
subsidiary of the Company (a “Subsidiary”) within the meaning of Section 424(f)
of the Code.  Subject to the provisions
of the Plan, the Committee may from time to time select the persons to whom
options will be granted, and will fix the number of shares covered by each such
option and establish the terms and conditions thereof, including, without
limitation, the exercise price, restrictions on exercisability of the option or
on the disposition of the shares of Common Stock issued upon exercise of the
option, and whether or not the option is to be treated as an Incentive Stock
Option.  For purposes hereof, affiliate
of the Company means a person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with,
the Company.

             5.          Terms
and Conditions of Options. 
Each option granted under the Plan will be evidenced by a written agreement
in a form approved by the Committee. 
Each such option will be subject to the terms and conditions set forth
in this Section and such additional terms and conditions not inconsistent with
the Plan (and, in the case of an Incentive Stock Option, not inconsis­tent with
the provisions of the Code applicable thereto) as the Committee deems
appropriate.

             (a)         Option
Exercise Price.  In the case
of an option which is not treated as an Incentive Stock Option, the exercise
price per share may not be less than 85% of the Fair Market Value of a share of
Common Stock on the date the option is granted; and, in the case of an
Incentive Stock Option, the exercise price per share may not be less than 100%
of the Fair Market Value of a share of Common Stock on the date the option is
granted (110% in the case of an optionee who, at the time the option is
granted, owns stock possessing more than 10% of the total combined voting power
of all classes of stock of the Company or a Subsidiary (a “ten percent
stockholder”)).  For purposes hereof,
the Fair Market Value of a share of Common Stock on any date will be equal to
the closing sale price per share as published by a national securities exchange
on which shares of the Common Stock are traded on such date or, if there is no
sale of Common Stock on such date, the average of the bid and asked prices on
such exchange at the close of trading on such date or, if shares of the Common
Stock are not listed on a national securi­ties exchange on such date, the
closing price or, if none, the average of the bid and asked prices in the over
the counter market at the close of trading on such date, or if the Common Stock
is not traded on a national securities exchange or the over the counter market,
the fair market value of a share of the Common Stock on such date as determined
in good faith by the Committee.

             (b)        Option
Period.  The period during
which an option may be exercised will be fixed by the Committee and will not
exceed ten years from the date the option is granted (five years in the case of
an Incentive Stock Option granted to a ten percent stockholder).

             (c)         Exercise
of Options.  Subject to
earlier termination of the option as provided herein, unless the Committee
determines otherwise, options will be exercisable from and after the date of
grant.  Vesting or other restrictions on
the exercisability of an option will be set forth in the related option
agreement.  All or part of the
exercisable portion of an option may be exercised at any time during the option
period.  An option may be exercised by
transmitting to the Company (1) a written notice specifying the number of
shares to be purchased, and (2) payment of the exercise price, together with
the amount, if any, deemed necessary by the Committee to enable the Company to
satisfy its tax withholding obligations with respect to such exercise (unless
other arrangements acceptable to the Company are made with respect to the
satisfaction of such withholding obligations).

             (d)        Payment
of Exercise Price.  The
purchase price of shares of Common Stock acquired pursuant to the exercise of
an option granted under the Plan may be paid in cash, certified or bank check,
and/or such other form of payment as may be permitted by the Committee from
time to time, including, without limitation, shares of Common Stock which, if
acquired from the Company, have been owned by the optionee (free and clear of
any liens or encumbrances) for at least six months or, if the Common Stock is
publicly-traded, pursuant to a cashless exercise procedure established by the
Company in accordance with Regulation T of the Federal Reserve Board.

             (e)         Rights
as a Stockholder.  No shares
of Common Stock will be issued in respect of the exercise of an option granted
under the Plan until full payment therefor has been made and the applicable tax
withholding obligation has been satisfied or provided for, which withholding
obligation, if satisfied with shares of Common Stock subject to an option being
exercised, shall not exceed the statutory minimum rate. The holder of an option
will have no rights as a stockholder with respect to any shares covered by an
option until the date a stock certificate for such shares is issued to him or
her.  Except as otherwise provided
herein, no adjustments shall be made for dividends or distributions of other
rights for which the record date is prior to the date such stock certificate is
issued.

             (f)         Nontransferability
of Options.  No option
granted under the Plan may be assigned or transferred except by will or by the
applicable laws of descent and distribution; and each such option may be
exercised during the optionee's lifetime only by the optionee.  Notwithstanding the preceding sentence, the
Committee may, in its sole discretion, permit an optionee to transfer an option
(other than an Incentive Stock Option), in whole or in part, to such persons
and/or entities as are approved by the Committee from time to time and subject
to such terms and conditions as the Committee may determine from time to time.

             (g)        Termination
of Employment or Other Service. 
Except as otherwise provided herein or determined by the Committee, the
following rules will apply with regard to options held by an optionee at the
time of his or her termination of employment or other service with the Company
and its affiliates:

                           (1)         Termination
due to Death or Disability. 
If an optionee’s employment or other service terminates due to his or
her death or Disability (or if the optionee’s employment or other service is
terminated by reason of his or her Disability and the optionee dies within one
year of such termination of employment or other service), then: (A) that
portion of an option that is not exercisable on the date of termination will
immediately terminate, and (B) that portion of an option that is exercisable on
the date of termination will remain exercisable, to the extent exercisable on
the date of termination, by the optionee (or the optionee’s designated
beneficiary or representative) during the one year period following the date of
termination (or, during the one year period after the later death of a disabled
optionee) or, if sooner, until the expiration of the stated term thereof, and,
to the extent not exercised during such period, will thereupon terminate. For
purposes hereof, unless otherwise determined by the Committee, the term
“Disability” means the inability of an optionee to perform the customary duties
of his or her employment or other service for the Company or an affiliate by
reason of a physical or mental incapacity which is expected to result in death
or be of indefinite duration.

                           (2)         Termination
for Cause or at a Time when Cause Exists.  If an optionee’s employment or other service is terminated by the
Company or an affiliate for Cause or if, at the time of his or her termination,
grounds for a termination for Cause exist, then any option held by the optionee
(whether or not then exercisable) will immediately terminate and cease to be
exercisable.  For purposes hereof,
unless otherwise determined by the Committee, the term “Cause” means: (A) in
the case where there is no employment or consulting agreement between the
optionee and the Company or its affiliates at the time of grant or where such
an agreement exists but does not define “cause” (or words of like import), the
optionee’s dishonesty, fraud, insubordination, willful misconduct, refusal to
perform services, unsatisfactory performance of services or material breach of
any written agreement between the optionee and the Company or its affiliates,
or (B) in the case where there is an employment or consulting agreement between
the optionee and the Company or its affiliates at the time of grant which
defines “cause” (or words of like import), the meaning ascribed to such term
under such agreement.

                           (3)         Other
Termination.  Except as
provided in subsections (1) and (2) above, if an optionee’s employment or other
service terminates for any reason or no reason, then: (A) that portion of an
option held by the optionee that is not exercisable on the date of termination
will immediately terminate, and (B) that portion of an option that is
exercisable on the date of termination will remain exercisable, to the extent
exercisable on the date of termination, by the optionee during the ninety day
period following the date of termination or, if sooner, until the expiration of
the stated term thereof, and, to the extent not exercised during such period,
will thereupon terminate.

             (h)        Incentive
Stock Options.  In the case
of an Incentive Stock Option granted under the Plan, at the time the option is
granted, the aggregate fair market value (determined at the time of grant) of
the shares of Common Stock with respect to which Incentive Stock Options are
exercisable for the first time by the optionee during any calendar year may not
exceed $100,000 (or such other amount required by the Code from time to time).

             (i)          Other Provisions.  The Committee may impose such other
conditions with respect to the exercise of options, including, without
limitation, any conditions relating to the application of federal or state
securities laws, as it may deem necessary or advisable.

             (j)          Maximum
Option Grant.  The maximum
option grant which may be made to an employee of the Company or an affiliate in
any calendar year shall not cover more than 250,000 shares.

             6.          Capital
Changes, Reorganization, Sale.

             (a)         Adjustments
Upon Changes in Capitalization. 
The aggregate number and class of shares which may be issued under the
Plan, the maximum number of shares for which options may be granted to any
employee in any calendar year, the number and class of shares covered by each
outstanding option and the exercise price per share shall all be adjusted
proportionately for any increase or decrease in the number of issued shares of
Common Stock resulting from a split-up or consolidation of shares or any like capital
adjustment, or the payment of any stock dividend.

             (b)        Acceleration
of Vesting Upon Change of Control. 
If there is a change of control of the Company (as defined in subsection
(f) below), then all outstanding options shall become fully exercisable whether
or not the vesting conditions, if any, set forth in the related option
agreements have been satisfied, and each optionee shall have the right to
exercise his or her options prior to such change of control and for as long
thereafter as the option shall remain in effect in accor­dance with its terms
and the provisions hereof.

             (c)         Conversion
of Options on Stock for Stock Exchange.  If the stockholders of the Company receive capital stock of
another corporation (“Exchange Stock”) in exchange for their shares of Common
Stock in any transaction involving a merger (other than a merger of the Company
in which the holders of Common Stock immediately prior to the merger have the
same proportion­ate ownership of Common Stock in the surviving corporation
immedi­ately after the merger), consolidation, acquisition of property or
stock, separation or reorganization (other than a mere reincorporation or the
creation of a holding company), all options granted hereunder shall be
converted into options to purchase shares of Exchange Stock unless the Company
and the corporation issuing the Exchange Stock, in their sole discre­tion,
determine that any or all such options granted hereunder shall not be converted
into options to purchase shares of Exchange Stock but instead shall terminate,
in which case the Company shall notify the optionees in writing or
electronically, at least 15 days prior to the consummation of the transaction,
that the options shall become fully exercisable whether or not the vesting
conditions, if any, set forth in the related option agreements have been
satisfied for the period specified in the notice (but in any case not less than
15 days from the date of such notice). 
The amount and price of converted options shall be determined by
adjusting the amount and price of the options granted hereunder in the same
proportion as used for determining the number of shares of Exchange Stock the
holders of the Common Stock receive in such merger, consolida­tion, acquisition
of property or stock, separation or reorganization.  To the extent provided in subsection (b) above, the convert­ed
options shall be fully vested whether or not the vesting requirements set forth
in the option agreement have been satisfied.

             (d)        Fractional Shares.
In the event of any adjustment in the number of shares covered by any option
pursuant to the provi­sions hereof, any fractional shares resulting from such
adjust­ment will be disregarded and each such option will cover only the number
of full shares resulting from the adjustment.

             (e)         Determination
of Board to be Final.  All
adjustments under this Section 6 shall be made by the Board, and its determina­tion
as to what adjustments shall be made, and the extent thereof, shall be final,
binding and conclusive.  Unless an
optionee agrees otherwise, any change or adjustment to an Incentive Stock
Option shall be made in such a manner so as not to constitute a “modification”
as defined in Section 424(h) of the Code and so as not to cause the optionee's
Incentive Stock Option issued hereunder to fail to continue to qualify as an
Incentive Stock Option.

             (f)         Change
of Control Defined.  For
purposes hereof, a change in control of the Company is deemed to occur if (1)
there occurs (A) any consolidation or merger in which the Company is not the continuing
or surviving entity or pursuant to which shares of the Common Stock would be
converted into cash, securities or other property, other than (x) a
consolidation or merger of the Company in which the holders of the Common Stock
immediately prior to the consolidation or merger have the same proportionate
ownership of common stock of the surviving corporation immediately after the
consolidation or merger, or (y) a
consolidation or merger which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (by being
converted into voting securities of the continuing or surviving entity) more
than 50% of the combined voting power of the voting securities of the surviving
or continuing entity immediately after such consolidation or merger and which
would result in the members of the Board immediately prior to such
consolidation or merger (including, for this purpose, any individuals whose
election or nomination for election was approved by a vote of at least
two-thirds of such members), constituting a majority of the board of directors
(or equivalent governing body) of the surviving or continuing entity
immediately after such consolidation or merger; or (B) any sale, lease,
exchange or other transfer (in one transaction or a series of related
transactions) of all or substantially all the Company's assets; (2) the
Company's stockholders approve any plan or proposal for the liquidation or
dissolution of the Company; (3) any person (as such term is used in Sections
13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended) shall
become the beneficial owner (within the meaning of Rule 13d-3 under said Act)
of 40% or more of the Common Stock other than pursuant to a plan or arrangement
entered into by such person and the Company; or (4) during any period of two
consecutive years, individuals who at the beginning of such period consti­tute
the entire Board of Directors shall cease for any reason to constitute a
majority of the Board unless the election or nomination for election by the
Company's stockholders of each new director was approved by a vote of at least
two-thirds of the directors then still in office who were directors at the
beginning of the period.

             7.          Amendment
and Termination of the Plan.  The Board may amend or terminate the Plan.  Except as otherwise provided in the Plan
with respect to equity changes, any amendment which would increase the
aggregate number of shares of Common Stock as to which options may be granted
under the Plan, or modify the class of employees eligible to receive options
under the Plan shall, to the extent required by applicable law or exchange
requirements, be subject to the approval of the holders of the Common
Stock.  No amendment or termina­tion may
affect adversely any outstanding option without the written consent of the
optionee.

             8.          No
Rights Conferred.  Nothing
contained herein will be deemed to give any individual any right to receive an
option under the Plan or to be retained in the employ or service of the Company
or any affiliate.

             9.          Governing
Law.  The Plan and each
option agreement shall be governed by the laws of the State of Delaware,
without regard to its principles of conflicts of law.

             10.        Decisions
and Determinations of Committee to be Final.  Except to the extent rights or powers under
this Plan are reserved specifically to the discretion of the Board, the
Committee shall have full power and authority to interpret the Plan and any
option agreement made under the Plan and to determine all issues which arise
thereunder or in connection therewith, and the decision of the Board or the
Committee, as the case may be, shall be binding and conclusive on all
interested persons.

             11.        Term
of the Plan.  The Plan shall
be effective as of April 30, 2001, the date on which it was adopted by the
Board, subject to the approval of the stockholders of the Company.  The Plan will terminate on April 30, 2011,
the date ten years after the date of its adoption by the Board, unless sooner
terminated by the Board.  The rights of
optionees under options outstanding at the time of the termination of the Plan
shall not be affected solely by reason of the termination and shall continue in
accordance with the terms of the option (as then in effect or thereafter
amended).Prepared by MerrillDirect

Exhibit 10.39

April 16, 2001

Mr. Terry Semel

c/o T.A.G. Partners LLC

9460 Wilshire Blvd.

Suite 600

Beverly Hills, CA 90212

Dear Mr. Semel:

             On
behalf of Yahoo! Inc. (“Yahoo”), I am pleased to offer you employment with
Yahoo commencing on April 16, 2001.  You
will become the Chief Executive Officer of Yahoo, effective May 1, 2001.  We will also recommend to the Board of
Directors of Yahoo (the “Board of Directors”) that you be appointed to serve as
a member of the Board of Directors and as the Chairman of the Board of
Directors, effective on May 1, 2001. 
The terms of your employment are set forth as follows:

1.          Salary.

             Your
starting salary will be $25,834 per month ($310,000 annually), paid
semi-monthly and subject to discretionary increases through annual reviews.

2.          Duties
and Responsibilities.

             Until
May 1, 2001 your duties will be to provide strategic planning and advice for
Yahoo.  Beginning May 1, 2001, as
Chief Executive Officer, you will be the most senior officer of Yahoo and, as
Chairman and Chief Executive Officer, you shall have the duties and
responsibilities that are customary to such offices and positions in a Delaware
corporation, including general supervision, direction, and control of the
business and officers of Yahoo, subject to the control of the Board of
Directors and its committees (to the extent the Board of Directors has
delegated authority to such committees). 
You shall have the right to appoint subordinate officers in accordance
with the bylaws of Yahoo and Delaware law. 
All other executive officers and employees of Yahoo and its subsidiaries
shall report directly to you or through such personnel as you shall designate.
You shall report directly and solely to the Board of Directors.  You agree to serve without additional
remuneration as Chairman and Chief Executive Officer or in such other executive
or director capacity as required by local law or statute for one or more direct
or indirect subsidiaries of Yahoo as the Board of Directors may from time to
time request and as to which you consent (which consent won’t be unreasonably
withheld), subject to appropriate authorization by the subsidiary or
subsidiaries involved and any limitations under applicable law.

 

3.          Obligations.

             During
the period of your employment under this letter agreement, you shall devote
your full business efforts and time to Yahoo. 
This obligation, however, shall not preclude you from engaging in
appropriate civic, charitable or religious activities or from devoting a reasonable
amount of time to private investments or from serving on the boards of
directors of companies, including closely held companies which are controlled
by you, all of which you have informed Yahoo in writing prior to the execution
of this letter agreement, and with respect to which Yahoo has agreed, as long
as these activities or services do not materially interfere or conflict with
your responsibilities to, or your ability to perform your duties of employment
by, Yahoo under this letter agreement. 
You agree not to accept a position on any other board of directors of a
for-profit entity unless approved in advance by the Board of Directors.

4.          Stock
Options.

             (a)         Initial Grants.  As part of your compensation, effective
immediately following and contingent upon the full execution and delivery of
this letter agreement and upon effectiveness of your employment with Yahoo, the
Compensation Committee of the Board of Directors has initially granted you a
total of four stock options to purchase an aggregate of 10 million shares of
Yahoo’s Common Stock under Yahoo’s 1995 Stock Option Plan, as amended, (the
“Plan”) and pursuant to the terms of the stock option agreement for such
options (“Stock Option Agreement”) as follows: 

	Option
  Number	 	Number of Shares	 	Exercise Price	 
	

	 	

	 	

	 
	1	 	5.0 million	 	Fair Market Value (as
  defined in the Plan) on date of grant	 
	2	 	2.5 million	 	$	30	 
	3	 	1.5 million	 	$	60	 
	4	 	1.0 million	 	$	75	 

The first option will become exercisable
as to 2.5 million shares on the first anniversary of the date of grant.  Thereafter, the options on the remaining 7.5
million shares will become exercisable in equal monthly installments (of
208,333 shares) in order of exercise price, beginning with the lowest exercise
price and continuing until all four options have become fully exercisable.  Accordingly, as of the second anniversary of
the date of grant, the first option will be fully exercisable; the second
option will become fully exercisable in equal monthly installments during the
third year; and the third and fourth options will become exercisable during the
fourth year.   The Stock Option Agreement for the options described above
will provide that such options (to the extent vested and exercisable) may be
exercised for a period of 3 years after the date of any termination of your
employment, but in no event later than the 10-year expiration dates of such
options.

             (b)        Subsequent Grants.  In addition to the initial grant of options
described above, you will be eligible for annual grants to purchase Yahoo
Common Stock as determined by the Compensation Committee of the Board of
Directors.

5.          Benefits.

             Additionally,
you will be eligible to participate in the regular Yahoo health insurance
benefits, vacation, and other employee benefit plans, programs and policies
established by Yahoo generally for its employees or senior management.

6.          Relocation
Expenses.

             You
will use all reasonable efforts to establish your principal residence in the
San Francisco Bay Area within 6 months after you have accepted this offer, but
in no event will you establish such principal residence later than 9 months
from the date of this letter agreement. 
Yahoo will pay or reimburse you for all expenses reasonably incurred by
you in connection with the relocation of your residence and your family to the
San Francisco Bay Area including, for example, the cost of packing and moving
household goods, traveling expenses, and interim living expenses during a
transition period in an amount not to exceed $50,000.

7.          Business
Expenses.

             You
are authorized to incur reasonable business expenses in carrying out your
duties and responsibilities in connection with your employment.  Yahoo will promptly reimburse you for such
expenses upon presentation of appropriate vouchers or receipts, in accordance
with its expense reimbursement policies.

8.          Termination.

             (a)         Notwithstanding the vesting
schedule  contained in the Stock Option
Agreement for the option grants described in Section 4(a) above, if your
employment is terminated by Yahoo without Cause prior to the first anniversary
of the date hereof, then immediately upon the date of such termination, the
first option (with an exercise price equal to a fair market value on the date
of grant) shall vest and become exercisable as to 2.5 million shares.

             (b)        For the purposes of this letter
agreement, “Cause” shall mean (i) your conviction of, or pleading guilty or
nolo contendere to, a felony involving moral turpitude, (ii) you fail to carry
out in any material respect the duties and responsibilities of your employment
due to willful gross neglect or willful gross misconduct which cannot be cured
or which, if curable, is not cured within 30 days after receipt of written
notice to you from Yahoo specifying with reasonable particularity such failure
and a reasonable opportunity to appeal to the Board of Directors (in person or
through a representative), or (iii) due to your death or your inability to
perform your job responsibilities as a result of a disability which lasts for
60 days or more.

             (c)          For purposes of this letter agreement,
“terminated by Yahoo without Cause” shall include your resignation as a result
of only the following (unless Yahoo’s otherwise triggering actions are prompted
by the occurrence of any event specified in Section 8(b)): (i) Yahoo requiring
you to be based at any office or location other than Yahoo’s principal offices
(currently located in Santa Clara or Sunnyvale, California), (ii) the failure
to obtain your appointment to serve as a member of the Board of Directors and
as the Chairman of the Board of Directors effective May 1, 2001,  (iii) the material reduction by the Board of
Directors of your duties, authority and responsibilities which are not agreed
to by you, excluding any action taken which is remedied within 30 days after
receipt of notice by Yahoo from you specifying with reasonable particularity
the reasons you consider this clause to have been violated, (iv) the failure of
the Board of Directors to appoint you to serve as Chairman of any executive
committee designated by the Board of Directors, (v) any reduction in your title
without your consent, and (vi) any changes in the reporting structure without
your consent which require that (A) you no longer report directly and solely to
the Board of Directors, or (B) the executive officers and employees of Yahoo
and its subsidiaries are no longer required to report directly to you or
through such personnel as you have designated.

             (d)    Notwithstanding the vesting schedule
contained in the Stock Option Agreement for the option grants described in
Section 4(a) above, if your employment with Yahoo is terminated prior to the
first anniversary of the date hereof pursuant to Section 8(b)(iii) due to your
inability to perform your job responsibilities as a result of a disability
which lasts for 60 days or more, then immediately upon the date of such
termination, the first option (with an exercise price equal to a fair market
value on the date of grant) shall vest and become exercisable as to that number
of shares determined by multiplying 2.5 million shares by a fraction, the
numerator of which is the number of months (with a partial month counting as a
whole month) from the date hereof through the date of such termination and the
denominator of which is 12.  Notwithstanding the vesting schedule
contained in the Stock Option Agreement for the option grants described in
Section 4(a) above, if your employment with Yahoo is terminated prior to six
months from the date hereof pursuant to Section 8(b)(iii) due to your death,
then immediately upon the date of such termination, the first option (with an
exercise price equal to a fair market value on the date of grant) shall vest
and become exercisable as to that number of shares determined by multiplying
2.5 million shares by a fraction, the numerator of which is the number of
months (with a partial month counting as a whole month) from the date hereof
through the date of your death and the denominator of which is 12, in lieu of
the vesting described in Section 8(i) of the Stock Option Agreement.

9.          No
Conflict with Prior Agreements; Due Authorization.

             You
represent and warrant to Yahoo that your execution and delivery of this letter
agreement between you and Yahoo and the performance of your duties hereunder
will not constitute a breach of, or otherwise contravene, the terms of any
employment or other agreement or policy to which you are a party or are
otherwise bound.  Yahoo represents to
you that it is fully authorized and empowered by action of the Board of
Directors to enter into this letter agreement and that performance of its
obligations under this letter agreement will not violate any agreement between
it and any other person, firm or other entity. 
Nothing contained in the Proprietary Information and Assignment of
Inventions Agreement or the Stock Option Agreement will modify the provisions
hereof and in the case of any conflict, the provisions of this letter agreement
shall prevail.

10.        Confidential
Information; Nondisclosure.

             As
an employee of Yahoo, it is likely that you will become knowledgeable about
confidential and or proprietary information related to the operations, products
and services of Yahoo and its clients. 
To protect the interests of both Yahoo and its clients, all employees
are required to read and sign a Proprietary Information and Assignment of Inventions
Agreement prior to beginning employment. 
A copy of this agreement is enclosed. 
Please sign it and return it along with your signed copy of this letter.

11.        Noncompetition.

             You
agree that, as long as you are employed by Yahoo pursuant to this letter
agreement, you will not engage in, or have any direct or indirect interest in
any person, firm, corporation or business (whether as an employee, officer,
director, agent, security holder, creditor, consultant, partner or otherwise)
that is competitive with the business of Yahoo, including, without limitation,
any then-current activities relating to providing Internet navigational
products or services and any then-current activities providing search, e-mail,
chat, e-commerce, instant messaging, content (e.g., music), ISP (e.g.,
connectivity, bandwith or storage) or other Internet-based delivery or
functionality.  Notwithstanding the
preceding sentence, you may own (a) not more than 3% of the securities of any
company whose securities are publicly traded, (b) not more than 5% of the
securities of any company whose securities are not publicly traded, and (c) the
securities of any company presently owned by you and disclosed in writing to
Yahoo and approved by Yahoo prior to the execution of this letter agreement
that engages in the activities described in the preceding sentence.

 
12.      At Will Employment.

             Please
understand that this agreement is for employment of an unspecific period of
time and creates an “employment at will” relationship that may be terminated at
any time by you or Yahoo, with or without Cause. Your signature at the end of
this letter agreement confirms that no promises or agreements that are contrary
to our at-will relationship have been committed to you during any of your
pre-employment discussions with Yahoo, and that this letter agreement contains
our complete agreement regarding the terms and conditions of your
employment.  This "at-will"
relationship may not be altered except as agreed by you and the Board of
Directors in writing.  You agree that
Section 8 shall provide your sole and exclusive remedy if you are “terminated
by Yahoo without Cause” as that phrase is defined herein.

13.        Arbitration.

             Our
signatures on this letter also confirm our mutual agreement to binding
arbitration by a retired judge of the Superior Court of the State of California
pursuant to the Employment Arbitration Rules and Procedures of the Judicial
Arbitration and Mediation Service (“JAMS”) , with full discovery, should there
be any dispute related to this letter agreement, the termination thereof, or
any other aspect of your employment relationship with Yahoo.  Nothing in this letter agreement shall
prejudice either party's ability to pursue provisional remedies under California
Code of Civil Procedure §1281.8.

14.       
Miscellaneous.

             (a)         Personal.  This letter agreement is personal to you and
therefore, you may not assign any of your rights and responsibilities
hereunder.

             (b)       Successors.  This letter agreement shall inure to the
benefit of and be binding upon Yahoo and its subsidiaries, successors and
assigns and any such successor or assignee shall be deemed substituted for
Yahoo under the terms of this letter agreement for all purposes.  As used herein, “successor” and “assignee”
includes any person, firm, corporation or other business entity which at any
time, whether by purchase, merger or otherwise, directly or indirectly acquires
Yahoo or substantially all of its assets.

             (c)         Waiver.  No delay or omission by you or Yahoo in
exercising any right under this letter agreement shall operate as a waiver of
that or any other rights.  A waiver or
consent given by you or Yahoo on any one occasion shall be effective only in
that instance and shall not be construed as a bar or waiver of any right on any
other occasion.  No waiver shall be
binding unless in writing, designated as a waiver, and signed by the party
waiving the breach.

             (d)        Modification.  This letter agreement may not be amended or
modified other than by a written agreement designated as an amendment and
executed by you and Yahoo, following approval of the Board of Directors.

             (e)         Savings Clause.  If any provision of this letter agreement or
the application thereof is held invalid, the invalidity shall not affect other
provisions or applications of this letter agreement that can be given effect
without the invalid provisions or applications and to this end the provisions
of this letter agreement are declared to be severable.

             (f)         Complete Agreement.  This letter agreement, the Indemnification
Agreement for Officers and Directors, the Stock Option Agreement and the
Proprietary Rights Agreement all dated of even date herewith (together referred
to as the “Agreements”) constitute and contain the entire agreement and
understanding concerning your employment with Yahoo and the other subject
matters addressed in the Agreements, and supersede and replace all prior
negotiations and all agreements proposed or otherwise, whether written or oral,
concerning the subject matters of the Agreements.  Any representations, promises or agreements not specifically
included in the Agreements shall not be binding or enforceable against either
you or Yahoo.  This is an integrated
document.

             (g)        Withholding.  Yahoo may withhold from any amounts payable to you under this
letter agreement such federal, state and local income, employment or other
taxes that may be required to be withheld pursuant to any applicable law or
regulation.

             (h)        Governing Law.  This letter agreement and the rights and
obligations of you and Yahoo under this letter agreement shall be governed by
and construed in accordance with the laws of the State of California without
regard to principles of conflict of laws.

             (i)          Survivorship.  The respective rights and obligations under
Sections 4, 8, 10 and 13 of you and Yahoo shall survive any termination of your
employment with Yahoo to the extent necessary to the intended preservation of
such rights and obligations.

To accept this offer, please sign this
letter agreement in the space provided below and return it together with a
signed Proprietary Rights Agreement, to me no later than April 16,
2001.  A second copy of each document
has been provided for you to keep for your records.

We look forward to your joining us and
hope that you find your employment with Yahoo enjoyable and professionally
rewarding.

Very
truly yours,

	/s/ Jerry Yang
	

	 	 
	Jerry Yang
	Director, Co-founder and Chief Yahoo

I
accept this offer of employment with Yahoo and agree to the terms and
conditions outlined in this letter.

	/s/
  Terry S. Semel	April
  16, 2001	 
	

	

	 
	Signature	Date

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