Document:

exv10w18

 

EXHIBIT 10.18

YAHOO! INC.

CHANGE IN CONTROL EMPLOYEE SEVERANCE PLAN

FOR

LEVEL I AND LEVEL II EMPLOYEES

               The Company hereby adopts the Yahoo! Inc. Change in Control Employee Severance Plan for Level
I and Level II Employees for the benefit of certain employees of the Company and its subsidiaries,
on the terms and conditions hereinafter stated. The Plan, as set forth herein, is intended to help
retain qualified employees, maintain a stable work environment and provide economic security to
eligible employees in the event of certain terminations of employment. The Plan, as a “severance
pay arrangement” within the meaning of Section 3(2)(B)(i) of ERISA, is intended to be excepted from
the definitions of “employee pension benefit plan” and “pension plan” set forth under section 3(2)
of ERISA, and is intended to meet the descriptive requirements of a plan constituting a “severance
pay plan” within the meaning of regulations published by the Secretary of Labor at Title 29, Code
of Federal Regulations §2510.3-2(b).

SECTION 1. DEFINITIONS. As hereinafter used:

               1.1 “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.

               1.2 “Board” means the Board of Directors of the Company.

               1.3 “Cause” shall mean that the Eligible Employee has: (a) willfully and continually
failed to substantially perform, or been willfully grossly negligent in the discharge of, his or
her duties to the Company or any of its subsidiaries (in any case, other than by reason of a
disability, physical or mental illness or analogous condition), which failure or negligence
continues for a period of 10 business days after a written demand for performance is delivered to
the Eligible Employee by the Board, which specifically identifies the manner in which the Board
believes that the Eligible Employee has not substantially performed, or been grossly negligent in
the discharge of, his or her duties; (b) been convicted of or pled nolo contendere to a felony; or
(c) materially and willfully breached any agreement with the Company, any of its subsidiaries or
any Affiliate of the Company or any of its subsidiaries. No act or failure to act on the part of
the Eligible Employee shall be deemed “willful” unless done, or omitted to be done, by the Eligible
Employee not in good faith or without reasonable belief that the Eligible Employee’s act or failure
to act was in the best interests of the Company.

               1.4 A “Change in Control” shall be deemed to mean the first of the following events to
occur after the Effective Date:

	 	(a)	 	any person or group of persons (as defined in Section 13(d) and 14(d) of the
Exchange Act) together with its affiliates, 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 40% or more of the combined voting power of the Company’s then
outstanding securities (not including in the securities beneficially owned by such
Person any securities acquired directly from the Company or its Affiliates); or
	 
	 	(b)	 	the following individuals cease for any reason to constitute a majority of
the number of directors then serving: individuals who, on the Effective Date,
constitute the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened election contest,
including but not limited to a consent solicitation, relating to the election of
directors of the Company) whose appointment or election by the Board or nomination for
election by the Company’s stockholders was approved or recommended by a vote of at
least two-thirds (2/3) of the directors then still in office who either were directors
on the Effective Date or whose appointment, election or nomination for election was
previously so approved or recommended; or
	 
	 	(c)	 	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 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;
	 
	 	(d)	 	the shareholders 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;
	 
	 	(e)	 	the occurrence of any transaction or series of transaction deemed by the
Board or the Plan Administrator to constitute a change in control of the Company under
this Section 1.4.

               1.5 “Change in Control Protection Period” shall mean the period
commencing on the date a Change in Control occurs and ending on the second
anniversary of such date.

               1.6 “Code” means the Internal Revenue Code of 1986, as it may be amended from time to
time.

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               1.7 “Company” means Yahoo! Inc., its subsidiaries or any successors thereto.

               1.8 “Disability” means a physical or mental condition entitling the Eligible Employee
to benefits under the applicable long-term disability plan of the Company or any its subsidiaries,
or if no such plan exists, a “permanent and total disability” (within the meaning of Section
22(e)(3) of the Code) or as determined by the Company in accordance with applicable laws.

               1.9 “Effective Date” shall mean February 12, 2008.

               
1.10 “Eligible Employee” means any Level I Employee or Level II Employee, who is
employed on the date of a Change in Control, other than: (i) an employee who has entered into a
separation agreement with the Company prior to a Change in Control; (ii) interns, casual or
temporary employees; and (iii) employees on a fixed-term employment agreement.

               1.11 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

               1.12 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

               1.13 “Good Reason” means (a) a substantial adverse alteration in the Eligible
Employee’s duties or responsibilities from those in effect immediately prior to the Change in
Control (including in the case of a Level I Employee who reports directly to the chief executive
officer of the Company immediately prior to a Change in Control, if, after such Change in Control,
such Level I Employee no longer reports directly to the chief executive officer of a public
company); (b) a reduction in the Eligible Employee’s annual base salary as of immediately prior to
the Change in Control (or as the same may be increased from time to time); (c) a material reduction
in the Eligible Employee’s annual target bonus opportunity as of immediately prior to the Change in
Control; or (d) the relocation of the Eligible Employee’s principal place of employment to a
location more than 35 miles from the Eligible Employee’s principal place of employment immediately
prior to the Change in Control, except for required travel on the Company’s business to an extent
substantially consistent with the Eligible Employee’s business travel obligations as of immediately
prior to the Change in Control. The Eligible Employee’s continued employment shall not constitute
consent to, or a waiver of rights with respect to, any act or failure to act constituting Good
Reason hereunder, provided that the Eligible Employee provides the Company with a written notice of
resignation within ninety (90) days following the occurrence of the event constituting Good Reason
and the Company shall have failed to remedy such act or omission within thirty (30) days following
its receipt of such notice.

               
1.14 “Level I Employee” means any full-time employee of the Company or its subsidiaries
with the job level immediately prior to a change in control of: E4, E5 or EX.

               
1.15 “Level II Employee” means any full-time employee of the Company or its
subsidiaries with the job level immediately prior to a change in control of E3.

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               1.16 “Plan” means the Yahoo! Inc. Change in Control Employee Severance Plan for Level
I and Level II Employees, as set forth herein, and as it may be amended from time to time.

               1.17 “Plan Administrator” means the Compensation Committee of the Board or such other
person or persons appointed from time to time by the Compensation Committee of the Board to
administer the Plan.

               1.18 “Potential Change in Control” shall be deemed to have occurred if the event set
forth in any one of the following paragraphs shall have occurred:

	 	(a)	 	the Company enters into an agreement, the consummation of which would result
in the occurrence of a Change in Control;
	 
	 	(b)	 	the Company or any Person publicly announces an intention to take or to
consider taking actions which, if consummated, would constitute a Change in Control;
	 
	 	(c)	 	any Person becomes the Beneficial Owner, directly or indirectly, of
securities of the Company representing 15% or more of either the then
outstanding shares of common stock of the Company or the combined voting power of the Company’s
then outstanding securities (not including in the securities beneficially owned by
such Person any securities acquired directly from the Company or its Affiliates); or
	 
	 	(d)	 	the Board adopts a resolution to the effect that, for purposes of this Plan,
a Potential Change in Control has occurred.

               1.19 “Potential Change in Control Period” means the period beginning upon the
occurrence of a Potential Change in Control and ending upon the earliest to occur of the: (i)
consummation of the Change in Control or (ii) one-month anniversary of the abandonment of the
transaction or series of transactions that constitute a Potential Change in Control (as determined
by the Plan Administrator in its sole discretion).

               1.20 “Severance” means (a) the involuntary termination of an Eligible Employee’s
employment by the Company or any subsidiary thereof, other than for Cause, death or Disability or
(b) a termination of an Eligible Employee’s employment by the Eligible Employee for Good Reason, in
each case, following a Change in Control and during the Change in Control Protection Period, other
than a termination of an Eligible Employee’s employment by the Company as part of a global
integration after a Change in Control when such Eligible Employee is rehired by the Company as part
of such integration.

               1.21 “Severance Date” means the date on which an Eligible Employee incurs a Severance.

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SECTION 2. CHANGE IN CONTROL SEVERANCE BENEFITS

               2.1 Generally. Subject to Sections 2.7, 2.8, 4 and 6.2 hereof, each Eligible Employee
shall be entitled to the greater of either the: (a) severance payments and benefits pursuant to
the applicable provisions of Section 2 of this Plan if such Eligible Employee incurs a Severance
during the Change in Control Protection Period or (b) severance benefits under any negotiated
severance agreement between such Eligible Employee and the Company (if applicable). With respect
to an Eligible Employee who is entitled to benefits under the Workers Adjustment Retraining
Notification Act of 1988, or any similar state or local statute or ordinance (collectively the
“WARN Act”), such benefits under this Plan shall be reduced dollar-for-dollar by any benefits
received pursuant to the WARN Act.

               2.2 Payment of Accrued Obligations. Subject to Sections 2.8, 4 and 6.2 hereof, the
Company shall pay to each Eligible Employee who incurs a Severance during the Change in Control
Protection Period a lump sum payment in cash, paid in accordance with applicable law, as soon as
practicable but no later than 10 days after the Severance Date, equal to the sum of (a) the
Eligible Employee’s accrued annual base salary and any accrued vacation pay through the Severance
Date, and (b) the Eligible Employee’s annual bonus earned for the fiscal year immediately preceding
the fiscal year in which the Severance Date occurs if such bonus has not been paid as of the
Severance Date.

               2.3 Level I Employees. Each Level I Employee who incurs a Severance during the Change
in Control Protection Period shall be entitled to (i) continuation of his or her annual base
salary, as in effect immediately prior to the Severance Date (or, if higher, as in effect on the
date on which the Change in Control occurs), for twenty-four (24) months following the Severance
and (ii) payment of up to $15,000 (payable in equivalent local currency with respect to Eligible
Employees outside the United States) for outplacement services utilized by the Eligible Employee
within twenty-four (24) months following the Severance Date, such reimbursement to be paid not
later than the end of the calendar year following the year in which the expense is incurred.

               2.4 Level II Employees. Each Level II Employee who incurs a Severance during the
Change in Control Protection Period shall be entitled to (i) continuation of his or her annual base
salary, as in effect immediately prior to the Severance Date (or, if higher, as in effect on the
date on which the Change in Control occurs), for eighteen (18) months following the Severance, and
(ii) payment of up to $15,000 (payable in equivalent local currency with respect to Eligible
Employees outside the United States) for outplacement services utilized by the Eligible Employee
within twenty-four (24) months following the Severance Date, such reimbursement to be paid not
later than the end of the calendar year following the year in which the expense is incurred.

               2.5 Acceleration of Vesting. In addition to the benefits provided pursuant to
Sections 2.3, 2.4 and 2.6 hereof (as applicable), each Level I and Level II Employee who incurs a
Severance during the Change in Control Protection Period shall be entitled to full vesting of all
stock options, restricted stock units and any other equity-

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based awards granted or assumed by the Company outstanding as of the Severance Date (whether
or not such award was outstanding as of the Effective Date); provided, however, that this Section
2.5 shall not apply with respect to a grant or award of stock options, restricted stock units or
any other equity-based compensation made after the Effective Date if the agreement granting or
awarding the applicable stock options, restricted stock units or any other equity-based
compensation provides that the grant shall not be subject to the provisions of this Section 2.5.

               2.6 Benefit Continuation. In the case of each Eligible Employee who incurs a
Severance during the Change in Control Protection Period, commencing on the date immediately
following such Eligible Employee’s Severance Date and continuing for the period set forth below
(the “Welfare Benefit Continuation Period”), the Company shall provide to each such Eligible
Employee (and anyone entitled to claim under or through such Eligible Employee) all Company-paid
benefits under any group health plan or dental plan of the Company (as in effect immediately prior
to such Eligible Employee’s Severance Date) for which Eligible Employees of the Company are
eligible, to the same extent as if such Eligible Employee had continued to be an Eligible Employee
of the Company during the Welfare Benefit Continuation Period. To the extent that such Eligible
Employee’s participation in Company benefit plans is not practicable, the Company shall arrange to
provide, at the Company’s sole expense, such Eligible Employee (and anyone entitled to claim under
or through such Eligible Employee) with equivalent health and dental benefits under an alternative
arrangement during the Welfare Benefit Continuation Period. The coverage period for purposes of
the group health continuation requirements of Section 4980B of the Code shall commence at the
Severance Date, and shall run concurrently with the Welfare Benefit Continuation Period. The
Welfare Benefit Continuation Period shall be for a number of months equal to the number of months
(including fractions thereof) during which the Eligible Employee receives base salary continuation
payments pursuant to this Section 2.

               2.7 Release; Restrictive Covenants; Benefit Commencement Date. No Eligible Employee
who incurs a Severance during the Change in Control Protection Period shall be eligible to receive
any payments or other benefits under the Plan (other than payments under Section 2.2 hereof)
unless, within forty-five (45) days following such Employee’s Severance Date, he or she first
executes a Release (substantially in the form of Exhibit A hereto, or in such other form as is
required to comply with applicable law) in favor of the Company and others set forth on said
Exhibit A, or in such other form as is required to comply with applicable law, relating to all
claims or liabilities of any kind relating to his or her employment with the Company or a
subsidiary thereof and the termination of the Employee’s employment, and such Release becomes
effective and has not been revoked by the employee by the fifty-fifth (55th) day
following the date of termination. Provided that the Eligible Employee executes the Release in
accordance with the requirements of this Section 2.7, any payments or other benefits under the Plan
shall commence (the “Benefit Commencement Date”) on or before the sixtieth (60th)
business day following the Severance Date; all payments or benefits accrued during the period
between the Severance Date and Benefit Commencement Date shall be provided in full on the Benefit
Commencement Date. If the Eligible Employee does not execute and return such Release such that it
does not become effective within the aforesaid period,

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the
Eligible Employee shall cease to be entitled to any payments or benefits under this Plan.
In addition, payment and other benefits under this Plan shall cease as of the date that the
Eligible Employee breaches any of the provisions of such Eligible Employee’s Confidentiality,
Proprietary Information and Assignment of Inventions Agreement, or other similar agreement.

               2.8 409A. Notwithstanding any provision to the contrary in this Plan, no payment or
distribution under this Plan which constitutes an item of deferred compensation under Section 409A
of the Code and becomes payable by reason of the Eligible Employee’s termination of employment with
the Company will be made to the Eligible Employee unless the Eligible Employee’s termination of
employment constitutes a “separation from service” (as such term is defined in Treasury Regulations
issued under Section 409A of the Code). In addition, no such payment or distribution will be made
to the Eligible Employee prior to the earlier of (i) the expiration of the six (6)-month period
measured from the date of the Eligible Employee’s “separation from service” (as such term is
defined in Treasury Regulations issued under Section 409A of the Code) or (ii) the date of the
Eligible Employee’s death, if the Eligible Employee is deemed at the time of such separation from
service to be a “key employee” within the meaning of that term under Section 416(i) of the Code and
to the extent such delayed commencement is otherwise required in order to avoid a prohibited
distribution under Section 409A(a)(2) of the Code. All payments and benefits which had been
delayed pursuant to the immediately preceding sentence shall be paid to the Eligible Employee in a
lump sum upon expiration of such six-month period (or if earlier upon the Eligible Employee’s
death). It is intended that this Plan shall comply with the provisions of Section 409A of the Code
and the Treasury Regulations relating thereto so as not to subject the Eligible Employee to the
payment of additional taxes and interest under Section 409A of the Code. In furtherance of this
intent, this Plan shall be interpreted, operated, and administered in a manner consistent with
these intentions.

SECTION 3. PLAN ADMINISTRATION.

               3.1 The Plan Administrator shall administer the Plan and may interpret the Plan, prescribe,
amend and rescind rules and regulations under the Plan and make all other determinations necessary
or advisable for the administration of the Plan, subject to all of the provisions of the Plan.

               3.2 The Plan Administrator may delegate any of its duties hereunder to such person or persons
from time to time as it may designate.

               3.3 The Plan Administrator is empowered, on behalf of the Plan, to engage accountants, legal
counsel and such other personnel as it deems necessary or advisable to assist it in the performance
of its duties under the Plan. The functions of any such persons engaged by the Plan Administrator
shall be limited to the specified services and duties for which they are engaged, and such persons
shall have no other duties, obligations or responsibilities under the Plan. Such persons shall
exercise no discretionary authority or discretionary control respecting the management of the Plan.
All reasonable expenses thereof shall be borne by the Company.

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               3.4 Following the occurrence of a Change in Control, the Company may not remove from office
the individual or individuals who served as Plan Administrator immediately prior to the Change in
Control; provided, however, if any such individual ceases to be affiliated with the Company, the
Company may appoint another individual or individuals as Plan Administrator so long as the
substitute Plan Administrator consists solely of an individual or individuals who (a) were officers
of the Company immediately prior to the Change in Control, (b) were directors of the Company
immediately prior to the Change in Control and are not affiliated with the acquiring entity in the
Change in Control or (c) were selected or approved by an officer or director described in clause
(a) or (b).

SECTION 4. LIMITATION ON BENEFITS. If any payment or benefit received or to be received by
an Eligible Employee (including any payment or benefit received pursuant to the Plan or otherwise)
would be (in whole or part) subject to the excise tax imposed by Section 4999 of the Code, or any
successor provision thereto, or any similar tax imposed by state or local law, or any interest or
penalties with respect to such excise tax (such tax or taxes, together with any such interest and
penalties, are hereafter collectively referred to as the “Excise Tax”), then, the salary
continuation payments provided under Section 2.3 or 2.4, as applicable, shall first be reduced (and
thereafter, if necessary, the accelerated vesting provided in Section 2.5 shall be reduced) to the
extent necessary to make such payments and benefits not subject to such Excise Tax, but only if
such reduction results in a higher after-tax payment to the Eligible Employee after taking into
account the Excise Tax and any additional taxes the Eligible Employee would pay if such payments
and benefits were not reduced.

SECTION 5. PLAN MODIFICATION OR TERMINATION. The Plan may not be terminated during the
Potential Change in Control Period or during the Change in Control Protection Period. The Plan may
be amended by the Board at any time; provided, however, that during the Potential Change in Control
Period and the Change in Control Protection Period, the Plan may not be amended if such amendment
would in any manner be adverse to the interests of any Eligible Employee, except that,
notwithstanding the foregoing, the Plan Administrator may amend the Plan at any time and in any
manner necessary to comply with applicable law, including, but not limited to Section 409A of the
Code. For the avoidance of doubt, (a) any action taken by the Company or the Plan Administrator
during the Change in Control Protection Period to cause an Eligible Employee to no longer be
designated as a Level I Employee or Level II Employee, or to decrease the payments or benefits for
which an Eligible Employee is eligible, and (b) any amendment to Section 3.4 or this Section 5
during the Change in Control Protection Period shall be treated as an amendment to the Plan which
is adverse to the interests of any Eligible Employee.

SECTION 6. GENERAL PROVISIONS.

               6.1 Except as otherwise provided herein or by law, no right or interest of any Eligible
Employee under the Plan shall be assignable or transferable, in whole or in part, either directly
or by operation of law or otherwise, including without limitation by execution, levy, garnishment,
attachment, pledge or in any manner; no attempted

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assignment or transfer thereof shall be effective; and no right or interest of any Eligible
Employee under the Plan shall be liable for, or subject to, any obligation or liability of such
Eligible Employee. When a payment is due under this Plan to a severed employee who is unable to
care for his or her affairs, payment may be made directly to his or her legal guardian or personal
representative.

               6.2 If the Company or any subsidiary thereof is obligated by law or by contract to pay
severance pay, a termination indemnity, notice pay, or the like, or if the Company or any
subsidiary thereof is obligated by law or by contract to provide advance notice of separation
(“Notice Period”), then any severance pay hereunder shall be reduced by the amount of any such
severance pay, termination indemnity, notice pay or the like, as applicable, and by the amount of
any compensation received during any Notice Period.

               6.3 Neither the establishment of the Plan, nor any modification thereof, nor the creation of
any fund, trust or account, nor the payment of any benefits shall be construed as giving any
Eligible Employee, or any person whomsoever, the right to be retained in the service of the Company
or any subsidiary thereof, and all Eligible Employees shall remain subject to discharge to the same
extent as if the Plan had never been adopted.

               6.4 If any provision of this Plan shall be held invalid or unenforceable, such invalidity or
unenforceability shall not affect any other provisions hereof, and this Plan shall be construed and
enforced as if such provisions had not been included.

               6.5 This Plan shall inure to the benefit of and be binding upon the heirs, executors,
administrators, successors and assigns of the parties, including each Eligible Employee, present
and future, and any successor to the Company. If a severed employee shall die, all accrued but
unpaid amounts, unless otherwise provided herein, shall be paid in accordance with the terms of
this Plan to the executor, personal representative or administrators of the severed employee’s
estate.

               6.6 The headings and captions herein are provided for reference and convenience only, shall
not be considered part of the Plan, and shall not be employed in the construction of the Plan.

               6.7 The Plan shall not be required to be funded unless such funding is authorized by the
Board. Regardless of whether the Plan is funded, no Eligible Employee shall have any right to, or
interest in, any assets of any Company which may be applied by the Company to the payment of
benefits or other rights under this Plan.

               6.8 Any notice or other communication required or permitted pursuant to the terms hereof shall
have been duly given when delivered or mailed by United States Mail, first class, postage prepaid
(or such local equivalent thereof), addressed to the intended recipient at his, her or its last
known address.

               6.9 This Plan shall be construed and enforced according to the laws of the State of Delaware
to the extent not preempted by federal law or other applicable local law, which shall otherwise
control.

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               6.10 All benefits hereunder shall be reduced by applicable withholding and shall be subject to
applicable tax reporting, as determined by the Plan Administrator, or as required by applicable
law.

SECTION 7. CLAIMS, INQUIRIES, APPEALS.

               7.1 Applications for Benefits and Inquiries. Any application for benefits, inquiries
about the Plan or inquiries about present or future rights under the Plan must be submitted to the
Plan Administrator in writing, as follows:

Plan Administrator

c/o Yahoo! Inc.

701 First Avenue

Sunnyvale, CA 94089

Attention: Head of Human Resources

               7.2 Denial of Claims. In the event that any application for benefits is denied in
whole or in part, the Plan Administrator must notify the applicant, in writing, of the denial of
the application, and of the applicant’s right to review the denial. The written notice of denial
will be set forth in a manner designed to be understood by the employee, and will include specific
reasons for the denial, specific references to the Plan provision upon which the denial is based, a
description of any information or material that the Plan Administrator needs to complete the review
and an explanation of the Plan’s review procedure.

This written notice will be given to the employee within ninety (90) days after the Plan
Administrator receives the application, unless special circumstances require an extension of time,
in which case, the Plan Administrator has up to an additional ninety (90) days for processing the
application. If an extension of time for processing is required, written notice of the extension
will be furnished to the applicant before the end of the initial ninety (90)-day period.

This notice of extension will describe the special circumstances necessitating the additional time
and the date by which the Plan Administrator is to render his or her decision on the application.
If written notice of denial of the application for benefits is not furnished within the specified
time, the application shall be deemed to be denied. The applicant will then be permitted to appeal
the denial in accordance with the Review Procedure described below.

               7.3 Request for a Review. Any person (or that person’s authorized representative) for
whom an application for benefits is denied (or deemed denied), in whole or in part, may appeal the
denial by submitting a request for a review to the Plan Administrator within 60 days after the
application is denied (or deemed denied). The Plan Administrator will give the applicant (or his
or her representative) an opportunity to review pertinent documents in preparing a request for a
review and submit written comments, documents, records and other information relating to the claim.
A request for a review shall be in writing and shall be addressed to:

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Plan Administrator

c/o Yahoo! Inc.

701 First Avenue

Sunnyvale, CA 94089

Attention: Head of Human Resources

A request for review must set forth all of the grounds on which it is based, all facts in support
of the request and any other matters that the applicant feels are pertinent. The Plan
Administrator may require the applicant to submit additional facts, documents or other material as
he or she may find necessary or appropriate in making his or her review.

               7.4 Decision on Review. The Plan Administrator will act on each request for review
within sixty (60) days after receipt of the request, unless special circumstances require an
extension of time (not to exceed an additional sixty (60) days), for processing the request for a
review. If an extension for review is required, written notice of the extension will be furnished
to the applicant within the initial sixty (60)-day period. The Plan Administrator will give
prompt, written notice of his or her decision to the applicant. In the event that the Plan
Administrator confirms the denial of the application for benefits in whole or in part, the notice
will outline, in a manner calculated to be understood by the applicant, the specific Plan
provisions upon which the decision is based. If written notice of the Plan Administrator’s
decision is not given to the applicant within the time prescribed in this Section 7.4 the
application will be deemed denied on review.

               7.5 Rules and Procedures. The Plan Administrator may establish rules and procedures,
consistent with the Plan and with ERISA, as necessary and appropriate in carrying out his or her
responsibilities in reviewing benefit claims. The Plan Administrator may require an applicant who
wishes to submit additional information in connection with an appeal from the denial (or deemed
denial) of benefits to do so at the applicant’s own expense.

               7.6 Exhaustion of Remedies. No legal action for benefits under the Plan may be
brought until the claimant (a) has submitted a written application for benefits in accordance with
the procedures described by Section 7.1 above, (b) has been notified by the Plan Administrator that
the application is denied (or the application is deemed denied due to the Plan Administrator’s
failure to act on it within the established time period), (c) has filed a written request for a
review of the application in accordance with the appeal procedure described in Section 7.3 above
and (d) has been notified in writing that the Plan Administrator has denied the appeal (or the
appeal is deemed to be denied due to the Plan Administrator’s failure to take any action on the
claim within the time prescribed by Section 7.4 above).

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EXHIBIT A

FORM OF RELEASE

(To be signed on or after the Separation Date)

     In return for payment of severance benefits pursuant to the Yahoo! Inc. Change in Control
Severance Plan for Level I and Level II Employees (the “Plan”), as amended, I hereby generally and
completely release the Yahoo, Inc. (the Company”) and its directors, officers, employees,
shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary
entities, insurers, affiliates, and assigns (collectively “Released Party”) from any and all
claims, liabilities and obligations, both known and unknown, that arise out of or are in any way
related to events, acts, conduct, or omissions occurring prior to my signing this Release. This
general release includes, but is not limited to: (1) all claims arising out of or in any way
related to my employment with the Company or the termination of that employment; (2) all claims
related to my compensation or benefits from the Company, including wages, salary, bonuses,
commissions, vacation pay, expense reimbursements (to the extent permitted by applicable law),
severance pay, fringe benefits, stock, stock options, or any other ownership interests in the
Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied
covenant of good faith and fair dealing; (4) all tort claims, including without limitation claims
for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all
federal, state, and local statutory claims, including without limitation claims for discrimination,
harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights
Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age
Discrimination in Employment Act of 1967 (as amended) (“ADEA”), the federal Worker Adjustment and
Retraining Notification Act (as amended) and similar laws in other jurisdictions, the Employee
Retirement Income Security Act of 1974 (as amended), the Family and Medical Leave Act of 1993, and
California Fair Employment and Housing Act (as amended), the California Family Rights Act (as
amended), California Labor Code section 1400 et. seq. and any similar laws in other jurisdictions;
provided, however, that this Release does not waive, release or otherwise discharge any claim or
cause of action arising after the date I sign this Agreement.

     This Agreement includes a release of claims of discrimination or retaliation on the basis of
workers’ compensation status, but does not include workers’ compensation claims. Excluded from
this Agreement are any claims which by law cannot be waived in a private agreement between employer
and employee, including but not limited to claims under California Labor Code section 2802 and the
right to file a charge with or participate in an investigation conducted by the Equal Employment
Opportunity Commission (“EEOC”) or any state or local fair employment practices agency. I waive,
however, any right to any monetary recovery or other relief should the EEOC or any other agency
pursue a claim on my behalf.

     I acknowledge and represent that I have not suffered any age or other discrimination,
harassment, retaliation, or wrongful treatment by any Released Party. I also

12

 

acknowledge and represent that I have not been denied any rights including, but not limited to,
rights to a leave or reinstatement from a leave under the Family and Medical Leave Act of 1993, the
California Family Rights Act, the Uniformed Services Employment and Reemployment Rights Act of
1994, or any similar law of any jurisdiction.

     I agree that I am voluntarily executing this Release. I acknowledge that I am knowingly and
voluntarily waiving and releasing any rights I may have under the ADEA and that the consideration
given for this Release is in addition to anything of value to which I was already entitled. I
further acknowledge that I have been advised by this writing, as required by the ADEA, that: (a)
my waiver and release specified in this paragraph does not apply to any rights or claims that may
arise after the date I sign this Release; (b) I have been advised to consult with an attorney prior
to signing this Release; (c) I have received a disclosure from the Company that includes a
description of the class, unit or group of individuals covered by this employment termination
program, the eligibility factors for such program, and any time limits applicable to such program
and a list of job titles and ages of all employees selected for this group termination and ages of
those individuals in the same job classification or organizational unit who were not selected for
termination (“Disclosures”); (d) I have at least forty-five (45) days from the date that I receive
the Disclosures to consider this Release (although I may choose to sign it any time on or after my
Separation Date); (e) I have seven (7) calendar days after I sign this Release to revoke it
(“Revocation Period”); and (f) this Release will not be effective until I have signed it and
returned it to the Company’s Human Resources Department and the Revocation Period has expired (the
“Effective Date”).

     I UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. In
giving this release, which includes claims which may be unknown to me at present, I acknowledge
that I have read and understand Section 1542 of the California Civil Code, which states: “A
general release does not extend to claims which the creditor does not know or suspect to exist in
his or her favor at the time of executing the release, which if known by him or her must have
materially affected his or her settlement with the debtor.” I hereby expressly waive and relinquish
all rights and benefits under that section and any law of any jurisdiction of similar effect with
respect to my release of any unknown or unsuspected claims I may have against the Company.

	 	 	 
	 
	 	 
	 

	 	 
	 

	 	[name]
	 
	 	 
	 
	 	 
	 

	 	 
	 

	 	Date

13exv4w1

 

Exhibit 4.1

MAVEN TECHNOLOGIES, INC.

2002 STOCK INCENTIVE PLAN

	1.	 	Purpose.

     The purpose of this 2002 Stock Incentive Plan (the “Plan”) of Maven Technologies, Inc., a
Delaware corporation (the “Company”), is to advance the interests of the Company’s stockholders by
enhancing the Company’s ability to attract, retain and motivate persons who make (or are expected
to make) important contributions to the Company by providing such persons with equity ownership
opportunities and performance-based incentives and thereby better aligning the interests of such
persons with those of the Company’s Stockholders. Except where the context otherwise requires, the
term “Company” shall include any of the Company’s present or future parent or subsidiary
corporations as defined in Section 424(e) or (f) of the Internal Revenue Code of 1986, as amended,
and any regulations promulgated thereunder (the “Code”) and any other business venture (including,
without limitation, joint venture or limited liability company) in which the Company has a
controlling interest, as determined by the Board of Directors of the Company (the “Board”).

	2.	 	Eligibility.

     All of the Company’s employees, officers, directors, consultants and advisors are eligible to
be granted options, restricted stock awards, or other stock-based awards (each, an “Award”) under
the Plan. Each person who has been granted in an Award under the Plan shall be deemed a
“Participant”.

	3.	 	Administration and Delegation.

     (a) Administration by Board of Directors. The Plan will be administered by the Board.
The Board shall have authority to grant Awards and to adopt, amend and repeal such administrative
rules, guidelines and practices relating to the Plan as it shall deem advisable. The Board may
correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in
the manner and to the extent it shall deem expedient to carry the Plan into effect and it shall be
the sole and final judge of such expediency. All decisions by the Board shall be made in the
Board’s sole discretion and shall be final and binding on all persons having or claiming any
interest in the Plan or in any Award. No director or person acting pursuant to the authority
delegated by the Board shall be liable for any action or determination relating to or under the
Plan made in good faith.

     (b) Appointment of Committee. To the extent permitted by applicable law, the Board
may delegate any or all of its powers under the Plan to one or more committees or subcommittees of
the Board (a “Committee”). All references in the Plan to the “Board” shall mean the Board or a
Committee of the Board or the executive officers referred to in Section 3(c)

 

 

to the extent that the
Board’s powers or authority under the Plan have been delegated to such Committee or executive
officers.

     (c) Delegation to Executive Officers. To the extent permitted by applicable law, the
Board may delegate to one or more executive officers of the Company the power to grant
Awards to employees or officers of the Company or any of its present or future subsidiary
corporations and to exercise such other powers under the Plan as the Board may determine, provided
that the Board shall fix the terms of the Awards to be granted by such executive officers
(including the exercise price of such Awards, which may include a formula by which the exercise
price will be determined) and the maximum number of shares subject to Awards that the executive
officers may grant; provided further, however, that no executive officer shall be authorized to
grant Awards to any “executive officer” of the Company (as defined by Rule 3b-7 under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) or to any “officer” of the
Company (as defined by Rule 16a-1 under the Exchange Act).

4. Stock Available for Awards. Subject adjustment under Section 8, Awards may be made
under the Plan for up to 2,062,500 shares of common stock, $0.001 par value per share, of the
Company (the “Common Stock”). If any Award expires or is terminated, surrendered or canceled
without having been fully exercised or is forfeited in whole or in part (including as the result of
shares of Common Stock subject to such Award being repurchased by the Company at the original
issuance price pursuant to a contractual repurchase right) or results in any Common Stock not being
issued, the unused Common Stock covered by such Award shall again be available for the grant of
Awards under the Plan, subject, however, in the case of Incentive Stock Options (as hereinafter
defined), to any limitations under the Code. Shares issued under the Plan may consist in whole or
in part of authorized but unissued shares or treasury shares. At no time while there is any Option
(as defined below) outstanding and held by a Participant who was a resident of the State of
California on the date of grant of such Option, shall the total number of shares of Common Stock
issuable upon exercise of all outstanding options and the total number of shares provided for under
any stock bonus or similar plan of the Company exceed the applicable percentage as calculated in
accordance with the conditions and exclusions of Section 260.140.45 of the California Code of
Regulations, based on the shares of the Company which are outstanding at the time the calculation
is made.

	5.	 	Stock Options.

     (a) General. The Board may grant options to purchase Common Stock (each, an “Option”)
and determine the number of shares of Common Stock to be covered by each Option, the exercise price
of each Option and the conditions and limitations applicable to the exercise of each Option,
including conditions relating to applicable federal or state securities laws, as it considers
necessary or advisable. An Option which is not intended to be an Incentive Stock Option (as
hereinafter defined) shall be designated a “Nonstatutory Stock Option”.

     (b) Incentive Stock Options. An Option that the Board intends to be an “incentive
stock option” as defined in Section 422 of the Code (an “Incentive Stock Option”) shall only be
granted to employees of the Company and shall be subject to and shall be construed consistently

2

 

with the requirements of Section 422 of the Code. The Company shall have no liability to a
Participant, or any other party, if an Option (or any part thereof) which is intended to be an
Incentive Stock Option is not an Incentive Stock Option.

     (c) Exercise Price. The Board shall establish the exercise price at the time each
Option is granted and specify it in the applicable option agreement.

     (d) Duration of Options. Each Option shall be exercisable at such times and subject
to such terms and conditions and the Board may specify in the applicable option agreement.

     (e) Exercise of Option. Options may be exercised by delivery to the Company of a
written notice of exercise signed by the proper person or by any other form of notice (including
electronic notice) approved by the Board together with payment in full as specified in Section 5(f)
for the number of shares for which the Option is exercised.

     (f) Payment Upon Exercise. Common Stock purchased upon the exercise of an Option
granted under the Plan shall be paid for as follows:

          (1) in cash or by check, payable to the order of the Company;

          (2) except as the Board may, in its sole discretion, otherwise provide in an option agreement,
by (i) delivery of an irrevocable and unconditional undertaking by a creditworthy brokers to
deliver promptly to the Company sufficient funds to pay the exercise price an any required tax
withholding or (ii) delivery by the Participant to the Company of a copy of irrevocable and
unconditional instructions to a creditworthy broker to deliver promptly to the Company cash or a
check sufficient to pay the exercise price and any required tax withholding;

          (3) when the Common Stock is registered under the Securities Exchange Act of 1934 (the
“Exchange Act”), by delivery of shares of Common Stock owned by the Participant valued at their
fair market value as determined by (or in a manner approved by) the Board in good faith (“Fair
Market Value”), provided (i) such method of payment is then permitted under applicable law and (ii)
such Common Stock, if acquired directly from the Company, was owned by the Participant at least six
months prior to such delivery;

          (4) to the extent permitted by the Board, in its sole discretion by (i) delivery of a
promissory note of the Participant to the Company on terms determined by the Board, or (ii) payment
of such other lawful consideration as the Board may determine; or

          (5) by any combination of the above permitted forms of payment.

     (g) Substitute Options. In connection with a merger or consolidation of an entity
with the Company or the acquisition by the Company of property or stock of an entity, the Board may
grant Options in the substitution for any options or other stock or stock-based awards granted by
such entity or an affiliate thereof. Substitute Options may be granted on such terms as the Board
deems appropriate in the circumstances, notwithstanding any limitations on Options contained in the
other sections of this Section 5 or in Section 2.

3

 

	6.	 	Restricted Stock.

     (a) Grants. The Board may grant Awards entitling recipients to acquire shares of
Common Stock, subject to the right of the Company to repurchase all or part of such shares at their
issue price of other stated or formula price (or to require forfeiture of such shares if issued at
no cost) from the recipient in the event that conditions specified by the Board in the applicable
Award are not satisfied prior to the end of the applicable restriction period or periods
established by the Board for such Award (each, a “Restricted Stock Award”).

     (b) Terms and Conditions. The Board shall determine the terms and conditions of any
such Restricted Stock Award, including the conditions for repurchase (or forfeiture) and the issue
price, if any.

     (c) Stock Certificates. Any stock certificates issued in respect of a Restricted
Stock Award shall be registered in the name of the Participant and, unless otherwise determined by
the Board, deposited by the Participant, together with a stock power endorsed in blank, with the
Company (or its designee). At the expiration of the applicable restriction periods, the Company
(or such designee) shall deliver the certificates no longer subject to such restrictions to the
Participant or if the Participant has died, to the beneficiary designated, in a manner determined
by the Board, by a Participant to receive amounts due or exercise rights of the Participant in the
event of the Participant’s death (the “Designated Beneficiary”). In the absence of an effective
designation by a Participant, Designated Beneficiary shall mean the Participant’s estate.

	7.	 	Other Stock-Based Awards.

     The board shall have the right to grant other Awards based upon the Common Stock having such
terms and conditions as the Board may determine, including the grant of shares based upon certain
conditions, the grant of securities convertible into Common Stock and the grant of stock
appreciation rights.

	8.	 	Adjustments for Changes in Common Stock and Certain Other Events.

     (a) Changes in Capitalization. In the event of any stock split, reverse, stock split,
stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or
other similar change in capitalization or event, or any distribution to holders of Common Stock
other than a normal cash dividend, (i) the number and class of securities available under this
Plan, (ii) the number and class of securities and exercise price per share subject to each
outstanding Option, (iii) the repurchase price per share subject to each outstanding Restricted
Stock Award, and (iv) the terms of each other outstanding Award shall be appropriately adjusted by
the Company (or submitted Awards may be made, if applicable) to the extent the Board shall
determine, in good faith, that such an adjustment (or substitution) is necessary and appropriate.
If this Section 8(a) applies and Section 8(c) also applies to any event, Section 8(c) shall be
applicable to such event, and this Section 8(a) shall not be applicable.

4

 

     (b) Liquidation or Dissolution. In the event of a proposed liquidation or dissolution
of the Company, the Board shall upon written notice to the Participants provide that all then
unexercised Options will (i) become exercisable in full as of a specified time at least 10 business
days prior to the effective date of such liquidation or dissolution and (ii) terminate effective
upon such liquidation or dissolution, except to the extent exercised before such effective date.
The Board may specify the effect of a liquidation or dissolution on any Restricted Stock Award or
other Award granted under the Plan at the time of the grant of such Award.

     (c) Reorganization Events.

          (1) Definition. A “Reorganization Event” shall mean: (a) any merger or consolidation of the
Company with or into another entity as a result of which all of the Common Stock of the Company is
converted into or exchanged for the right to receive cash, securities or other property or (b) any
exchange of all of the Common Stock of the Company for cash, securities or other property pursuant
to a share exchange transaction.

          (2) Consequences of a Reorganization Event on Options. Upon the occurrence of a
Reorganization Event, or the execution by the Company of any agreement with respect to a
Reorganization Event, the Board shall provide that all outstanding Options shall be assumed, or
equivalent options shall be substituted, by the acquiring or succeeding corporation (or an
affiliate thereof). For purposes hereof, an Option shall be considered to be assumed if, following
consummation of the Reorganization Event, the Option confers the right to purchase, for each share
of Common Stock subject to the Option immediately prior to the consummation of the Reorganization
Event, the consideration (whether cash, securities or other property) received as a result of the
Reorganization Event by holders of Common Stock for each share of Common Stock held immediately
prior to the consummation of the Reorganization Event (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of the outstanding
shares of Common Stock); provided, however, that if the consideration received as a result of the
Reorganization Event is not solely common stock of the acquiring or succeeding corporation (or an
affiliate thereof), the Company may, with the consent of the acquiring or succeeding corporation,
provide for the consideration to be receive upon the exercise of Options to consist solely of
common stock of the acquiring or succeeding corporation (or an affiliate thereof) equivalent in
fair market value to the per share consideration received by holders of outstanding shares of
Common Stock as a result of the Reorganization Event.

     Notwithstanding the foregoing, if the acquiring or succeeding corporation (or an affiliate
thereof) does not agree to assume, or substitute for, such Options, then the Board shall, upon
written notice to the Participants, provide that all then unexercised Options will become
exercisable in full as of a specified time prior to the Reorganization Event and will terminate
immediately prior to the consummation of such Reorganization Event, except to the extent exercised
by the Participants before the consummation of such Reorganization Event; provided, however, that
in the event of a Reorganization Event under the terms of which holders of Common Stock will
receive upon consummation thereof a cash payment for each share of Common Stock surrendered
pursuant to such Reorganization Event (the “Acquisition Price”), then the Board may instead provide
and all outstanding Options shall terminate upon consummation of such Reorganization Event and that
each Participant shall receive, in exchange

5

 

therefore, a cash payment equal to the amount (if any)
by which (A) the Acquisition Price multiplied by the number of shares of Common Stock subject to
such outstanding Options (whether or not then exercisable), exceeds (B) the aggregate exercise
Price of such Options. To the extent all or any portion of an Option becomes exercisable solely as
a result of the first sentence of this paragraph, upon exercise of such Option the Participant
shall receive shares subject to a right of repurchase by the Company or its successor at the Option
exercise price. Such repurchase right (1) shall lapse at the same rate as the Option would have
become exercisable under its terms and (2) shall not apply to any shares subject to the Option that
were exercisable under its terms without regard to the first sentence of this paragraph.

     If any Option provides that it may be exercised for shares of Common Stock which remain
subject to a repurchase right in favor of the Company, upon the occurrence of a Reorganization
Event, any shares of restricted stock received upon exercise of such Option shall be treated in
accordance with Section 8(c)(3) as if they were a Restricted Stock Award.

          (3) Consequences of a Reorganization Event on Restricted Stock Awards. Upon the occurrence of
a Reorganization Event, the repurchase and other rights of the Company under each outstanding
Restricted Stock Award shall inure to the benefit of the Company’s successor and shall apply to the
cash, securities or other property which the Common Stock was converted into or exchanged for
pursuant to such Reorganization Event in the same manner and to the same extent as they applied to
the Common Stock subject to such Restricted Stock Award.

          (4) Consequences of a Reorganization Event on Other Awards. The Board shall specify the
effect of a Reorganization Event on any other Award granted under the Plan at the time of the grant
of such Award.

	9.	 	General Provisions Applicable to Awards.

     (a) Transferability of Awards. Except as the Board may otherwise determine or provide
in an Award, Awards shall not be sold, assigned, transferred, pledged or otherwise encumbered by
the person to whom they are granted, either voluntarily or by operation of law, except by will or
the laws of descent and distribution, and, during the life of the Participant, shall be exercisable
only by the Participant. References to a Participant, to the extent relevant in the context, shall
include references to authorized transferees.

     (b) Documentation. Each Award shall be evidenced in such form (written, electronic or
otherwise) as the Board shall determine. Each Award may contain terms and conditions in addition
to those set forth in the Plan.

     (c) Board Discretion. Except as otherwise provided by the Plan, each Award may be
made alone or in addition or in relation to any other Award. The terms of each Award need not be
identical, and the Board need not treat Participants uniformly.

     (d) Termination of Status. The Board shall determine the effect on an Award of the
disability, death, retirement, authorized leave or absence or other change in the employment or
other status of a Participant and the extent to which, and the period during which, the
Participant,

6

 

the Participant’s legal representative, conservator, guardian or Designated
Beneficiary may exercise rights under the Award.

     (e) Withholding. Each Participant shall pay to the Company, or make provision
satisfactory to the Board for payment of, any taxes required by law to be withheld in connection
with Awards to such Participant no later than the date of the event creating the tax liability.
Except as the Board may otherwise provide in an Award, when the Common Stock is registered under
the Exchange Act, Participants may satisfy such tax obligations in whole or in part by deliver of
share of Common Stock, including shares retained from the Award creating the tax obligation, valued
at their Fair Market Value; provided, however, that the total tax withholding where stock is being
used to satisfy such tax obligations cannot exceed the Company’s minimum statutory withholding
obligations (based on a minimum statutory withholding rates for federal
and state tax purposes, including payroll taxes, that are applicable to such supplemental
taxable income). Company may, to the extent permitted by law, deduct an such tax obligations from
any payment of any kind otherwise due to a Participant.

     (f) Amendment of Award. The Board may amend, modify or terminate any outstanding
Award, including but not limited to, substituting therefore another Award of the same or a
different type, changing the date of exercise or realization, and converting an Incentive Stock
Option to a Nonstatutory Stock Option, provided that the Participant’s consent to such action shall
be required unless the Board determines that the action, taking into account any related action,
would not materially and adversely affect the Participant.

     (g) Conditions on Delivery of Stock. The Company will not be obligated to deliver any
shares of Common Stock pursuant to the Plan or to remove restrictions from shares previously
delivered under the Plan until (i) all conditions of the Award have been met or removed to the
satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all other legal matters
in connection with the issuance and delivery of such shares have been satisfied, including any
applicable securities laws and any applicable stock exchange or stock market rules and regulations,
and (iii) the Participant has executed and delivered to the Company such representations or
agreements as the Company may consider appropriate to satisfy the requirements of any applicable
laws, rules or regulations.

     (h) Acceleration. The Board may at any time provide that any Award shall become
immediately exercisable in full or in part, free of some or all restrictions or conditions, or
otherwise realizable in full or in part, as the case may be.

	10.	 	Miscellaneous.

     (a) No Right To Employment or Other Status. No person shall have any claim or right
to be granted an Award, and the grant of an Award shall not be construed as giving a Participant
the right to continued employment or any other relationship with the Company. The Company
expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a
Participant free from any liability or claim under the Plan, except as expressly provided in the
applicable Award.

7

 

     (b) No Rights As Stockholder. Subject to the provisions of the applicable Award, no
Participant or Designated Beneficiary shall have any rights as a stockholder with respect to any
shares of Common Stock to be distributed with respect to an Award until becoming the record holder
of such shares. Notwithstanding the foregoing, in the event the Company effects a split of the
Common Stock by means of a stock dividend and the exercise price of and the number of shares
subject to such Option are adjusted as of the date of the distribution of the dividend (rather than
as of the record date for such dividend), then an optionee who exercises Option between the record
date and the distribution date for such stock dividend shall be entitled to receive, on the
distribution date, the stock dividend with respect to the shares of Common Stock acquired upon such
Option exercise, notwithstanding the fact that such shares were not outstanding as of the close of
business on the record date for such stock dividend.

     (c) Effective Date and Term of Plan. The Plan shall become effective on the date on
which it is adopted by the Board. No Awards shall be granted under the Plan after the completion
of ten years from the earlier of (i) the date on which the plan was adopted by the Board or (ii)
the date the Plan was approved by the Company’s stockholders, but Awards previously granted may
extend beyond that date.

     (d) Amendment of Plan. The Board may amend, suspend or terminate the Plan or any
portion thereof at any time.

     (e) Authorization of Sub-Plans. The Board may from time to time establish one or more
sub-plans under the Plan for purposes of satisfying applicable blue sky, securities or tax laws of
various jurisdictions. The Board shall establish such sub-plans by adopting supplements to this
Plan containing (i) such limitations on the Board’s discretion under the Plan as the Board deems
necessary or desirable or (ii) such additional terms and conditions not otherwise inconsistent with
the Plan as the Board shall deem necessary or desirable. All supplements adopted by the Board
shall be deemed to be part of the Plan, but each supplement shall apply only to Participants within
the affected jurisdiction and the Company shall not be required to provide copies of any supplement
to Participants in any jurisdiction which is not the subject of such supplement.

     (f) Governing Law. The provisions of the Plan and all Awards made hereunder shall be
governed by and interpreted in accordance with the laws of the State of Delaware, without regard to
any applicable conflicts of law.

8

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