Document:

Exhibit
10.2

 

YAHOO!
INC.

 

1996
DIRECTORS’ STOCK PLAN

 

NOTICE OF
STOCK OPTION GRANT

 

C/o Yahoo! Inc.

701 First Avenue

Sunnyvale, CA 94089

 

You have been granted an
option to purchase Common Stock of Yahoo! Inc. (the “Company”) as
follows:

 

	
  Date of Grant:

  	
   

  
	
   

  	
   

  
	
  Exercise Price per
  Share:

  	
  $             

  
	
   

  	
   

  
	
  Total Number of Shares
  Granted:

  	
   

  
	
   

  	
   

  
	
  Expiration Date:

  	
   

  
	
   

  	
   

  
	
  Vesting
  Schedule:

  	
  [This Option may be exercised,
  in whole or in part, in accordance with the following schedule: 25% of the
  Shares subject to the Option shall vest and become exercisable at the end of
  each three-month period following the Date of Grant, such that the Option
  will be fully vested on the first anniversary of the Date of Grant.]

  
	
   

  	
   

  
	
   

  	
  [This Option shall be fully
  vested and exercisable as of the Date of Grant.]

  
	
   

  	
   

  
	
  Termination
  Period:

  	
  This Option may be exercised for one year after
  termination of your Continuous Status as a Director for any reason, but in no
  event later than the Expiration Date as provided above.

  

 

By your signature and the signature of the Company’s
representative below, you and the Company agree that this Option is granted
under and governed by the terms and conditions of the 1996 Directors’ Stock
Plan and the Director Nonstatutory Stock Option Agreement, both of which are attached
and made a part of this document.

 

	
  OPTIONEE:

  	
   

  	
  YAHOO! INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chairman & CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
   

  
						

 

 

YAHOO!
INC.

 

DIRECTOR
NONSTATUTORY STOCK OPTION AGREEMENT

 

1.             Grant of Option. The Board of
Directors of the Company hereby grants to the Optionee named in the Notice of
Stock Option Grant attached as Part I of this Agreement (the “Optionee”),
an option (the “Option”) to purchase a number of Shares, as set forth in
the Notice of Stock Option Grant, at the exercise price per share set forth in
the Notice of Stock Option Grant (the “Exercise Price”‘), subject to the
terms and conditions of the 1996 Directors’ Stock Plan, as amended (the “Plan”),
which is incorporated herein by reference. (Capitalized terms not defined
herein shall have the meanings ascribed to such terms in the Plan.)  In the event of a conflict between the terms
and conditions of the Plan and the terms and conditions of this Director Nonstatutory
Stock Option Agreement (this “Agreement”), the terms and conditions of
the Plan shall prevail.

 

2.             Exercise of Option.

 

(a)           Right to Exercise. This Option is
exercisable during its term in accordance with the Vesting Schedule set out in
the Notice of Stock Option Grant and the applicable provisions of the Plan and
this Agreement. In the event of the Optionee’s death, disability or other
termination of the Optionee’s Continuous Service as a Director, the
exercisability of the Option is governed by the applicable provisions of the
Plan and this Agreement.

 

(b)           Method of Exercise. This Option is
exercisable by delivery of an exercise notice, in the form attached as Exhibit A
(the “Exercise Notice”), which shall state the election to exercise the
Option, the number of Shares in respect of which the Option is being exercised
(the “Exercised Shares”), and such other representations and agreements
as may be required by the Company pursuant to the provisions of the Plan. The
Exercise Notice shall be signed by the Optionee and shall be delivered in
person or by certified mail to the Secretary of the Company. The Exercise
Notice shall be accompanied by payment of the aggregate Exercise Price as to
all Exercised Shares. This Option shall be deemed to be exercised upon receipt
by the Company of such fully executed Exercise Notice accompanied by such
aggregate Exercise Price.

 

No Shares shall be
issued pursuant to the exercise of this Option unless such issuance and
exercise complies with all relevant provisions of law and the requirements of
any stock exchange or quotation service upon which the Shares are then listed. Assuming
such compliance, for income tax purposes the Exercised Shares shall be
considered transferred to the Optionee on the date the Option is exercised with
respect to such Exercised Shares.

 

3.             Method of Payment. Payment of the
aggregate Exercise Price shall be by any of the following, or a combination
thereof, at the election of the Optionee:

 

(a)           cash;

 

 

(b)           check;

 

(c)           delivery
of a properly executed Exercise Notice together with irrevocable instructions
to a broker to deliver promptly to the Company the amount of sale or loan
proceeds required to pay the exercise price; provided that the Board may from
time to time limit the availability of any non-cash payment alternative; or

 

(d)           surrender
of other Shares which (a) either have been owned by the Optionee for more than
six (6) months on the date of surrender or were not acquired, directly or
indirectly, from the Company, and (b) have a Fair Market Value on the date of
surrender equal to the aggregate Exercise Price of the Exercised Shares.

 

4.             Non-Transferability of Option. This
Option may not be transferred in any manner otherwise than by will or by the
laws of descent or distribution or pursuant to a domestic relations order (as
defined by the Code or the rules thereunder) and may be exercised during the
lifetime of the Optionee only by the Optionee or a transferee permitted by
Section 12 of the Plan. The terms of the Plan and this Agreement shall be
binding upon the executors, administrators, heirs, successors and assigns of
the Optionee.

 

5.             Term of Option; Corporate Transaction. This
Option may be exercised only within the term set out in the Notice of Stock
Option Grant, and may be exercised during such term only in accordance with the
Plan and the terms of this Agreement. Notwithstanding any other provision
herein, in the event of a Corporate Transaction, this Option shall become fully
vested and may be subject to early termination as provided in Section 13(b) of
the Plan.

 

6.             Tax Consequences. Set forth below
is a brief summary of certain federal and California tax consequences relating
to this Option under the law in effect as of the date of grant. THIS SUMMARY IS
NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.
THE OPTIONEE SHOULD CONSULT HIS OR HER OWN TAX ADVISER BEFORE EXERCISING THIS
OPTION OR DISPOSING OF THE SHARES.

 

(a)           Exercising the Option. Since this
Option does not qualify as an incentive stock option under Section 422 of
the Code, the Optionee may incur ordinary federal and California income tax
liability upon exercise. The Optionee will be treated as having received
compensation income (taxable at ordinary income tax rates) equal to the excess,
if any, of the Fair Market Value of the Exercised Shares on the date of
exercise over their aggregate Exercise Price.

 

(b)           Disposition of Shares. If the
Optionee holds the Exercised Shares for more than one year, gain realized on
disposition of the Shares will be treated as long-term capital gain for federal
and California income tax purposes.

 

3

 

By your signature and the signature of the Company’s
representative below, you and the Company agree that this Option is granted
under and governed by the terms and conditions of the Plan and this Agreement. You
acknowledge and agree that you have reviewed the Plan and this Agreement in
their entirety, have had an opportunity to obtain the advice of counsel prior
to executing this Agreement and fully understand all provisions of the Plan and
this Agreement. You hereby agree to accept as binding, conclusive and final all
decisions or interpretations of the Board upon any questions relating to the
Plan and this Agreement.

 

	
  OPTIONEE:

  	
   

  	
  YAHOO! INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
   

  
						

 

4

 

CONSENT
OF SPOUSE

 

The
undersigned spouse of Optionee has read and hereby approves the terms and
conditions of the Plan and this Agreement. In consideration of the Company’s
granting his or her spouse the right to purchase Shares as set forth in the
Plan and this Agreement, the undersigned hereby agrees to be irrevocably bound
by the terms and conditions of the Plan and this Agreement and further agrees
that any community property interest shall be similarly bound. The undersigned
hereby appoints the undersigned’s spouse as attorney-in-fact for the
undersigned with respect to any amendment or exercise of rights under the Plan
or this Agreement.

 

 

	
   

  	
   

  
	
   

  	
  Spouse of Optionee

  

 

 

EXHIBIT A

 

NOTICE OF
EXERCISE

 

	
  To:

  	
  Yahoo! Inc.

  
	
   

  	
   

  
	
  Attn:

  	
  Stock Option
  Administrator

  
	
   

  	
   

  
	
  Subject:

  	
  Notice of Intention to
  Exercise Stock Option

  

 

This is official notice that the undersigned (“Optionee”)
intends to exercise Optionee’s option to purchase                    
shares of Yahoo! Inc. Common Stock, under and pursuant to the Company’s 1996
Directors’ Stock Plan and the Director Nonstatutory Stock Option Agreement
dated                    ,
as follows:

 

	
  Grant Number:

  	
   

  
	
   

  	
   

  
	
  Date of Purchase:

  	
   

  
	
   

  	
   

  
	
  Number of Shares:

  	
   

  
	
   

  	
   

  
	
  Purchase Price:

  	
   

  
	
   

  	
   

  
	
  Method of Payment of

  	
   

  
	
  Purchase Price:

  	
   

  
	
   

  	
   

  
	
  Social Security No.:

  	
   

  

 

The shares should be issued as follows:

 

	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:Exhibit
10.3

 

YAHOO!
INC.

 

1996
DIRECTORS’ STOCK PLAN

 

NOTICE OF
RESTRICTED STOCK UNIT GRANT

 

C/o Yahoo! Inc.

701 First Avenue

Sunnyvale, CA 94089

 

You have been granted an award
of Restricted Stock Units by Yahoo! Inc. (the “Company”) as follows:

 

	
  Date of Grant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total Number of
  Restricted

  	
   

  	
   

  
	
  Stock Units Granted:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vesting
  Schedule:

  	
   

  	
  [The Restricted Stock Units
  shall vest and become non-forfeitable in accordance with the following
  schedule: 25% of the Restricted Stock Units shall vest and become
  nonforfeitable at the end of each three-month period following the Date of
  Grant, such that the Restricted Stock Units will be fully vested on the first
  anniversary of the Date of Grant.]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [The Restricted Stock Units
  shall be fully vested as of the Date of Grant.]

  

 

By your signature and the signature of the Company’s
representative below, you and the Company agree that the Restricted Stock Units
are granted under and governed by the terms and conditions of the 1996
Directors’ Stock Plan and the Restricted Stock Unit Award Agreement, both of which
are attached and made a part of this document.

 

	
  GRANTEE:

  	
   

  	
  YAHOO! INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   Chairman & CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
   

  
						

 

 

YAHOO!
INC.

 

DIRECTOR RESTRICTED
STOCK UNIT AWARD AGREEMENT

 

 

1.             Grant of Restricted Stock Unit Award. The
Board of Directors of the Company hereby grants to the Grantee named in the
Notice of Restricted Stock Unit Grant attached as Part I of this Agreement (the
“Grantee”), an award (the “Award”) of Restricted Stock Units, as
set forth in the Notice of Restricted Stock Unit Grant, subject to the terms
and conditions of the 1996 Directors’ Stock Option Plan, as amended (the “Plan”),
which is incorporated herein by reference. (Capitalized terms not defined herein
shall have the meanings ascribed to such terms in the Plan.)  In the event of a conflict between the terms
and conditions of the Plan and the terms and conditions of this Restricted
Stock Unit Award Agreement (this “Agreement”), the terms and conditions
of the Plan shall prevail.

 

2.             Limitations on Rights Associated with Restricted
Stock Units; Dividend Equivalent Rights. The Restricted Stock
Units are bookkeeping entries only. The Grantee shall have no rights as a
stockholder of the Company, no dividend rights and no voting rights with
respect to the Restricted Stock Units. Notwithstanding the foregoing, as of any
date the Company pays an ordinary cash dividend on its Common Stock, the
Grantee shall automatically be granted a number of additional Restricted Stock
Units in respect of any then-outstanding and unpaid Restricted Stock Units
granted hereunder as provided in Section 10(c) of the Plan. Any such additional
Restricted Stock Units shall be subject to the same vesting, payment and other
terms, conditions and restrictions as the original Restricted Stock Units to
which they relate.

 

3.             Transfer Restrictions. Restricted
Stock Units and any interest therein, may not be sold, assigned, transferred,
pledged, hypothecated or otherwise disposed of, except by will or the laws of
descent and distribution. Any attempt to dispose of any Restricted Stock Units
in contravention of the above restriction shall be null and void and without
effect.

 

4.             Lapse of Restrictions. The Restricted Stock Units
shall vest and become nonforfeitable in accordance with the Vesting Schedule
set out in the Notice of Restricted Stock Unit Grant and the applicable
provisions of the Plan and this Agreement.

 

5.             Timing and Manner of Payment of Restricted
Stock Units. Subject to Sections 6 and 8 below, as
soon as practicable after the earlier of (i) the date the Grantee’s service as
a member of the Board terminates for any reason, or (ii) the third anniversary
of the Date of Grant set forth in the Notice of Restricted Stock Unit Grant (the
“Payment Date”), any Restricted Stock Units subject to the Award that
have vested and become non-forfeitable pursuant to Section 4 shall be paid by
the Company delivering to the Grantee, a number of Shares equal to the number
of such Restricted Stock Units being paid. The Company shall issue the Shares as
provided in Section 10(d) of the Plan. Notwithstanding the foregoing, the
Company shall have no obligation to issue Shares in payment of the Restricted
Stock Units unless such issuance and such payment shall comply with all
relevant provisions of law and the requirements of any Stock Exchange.

 

 

6.             Deferral of Payment of Restricted Stock Units.
Notwithstanding the first sentence of Section 5, the Grantee may
irrevocably elect, on the form attached hereto as Exhibit A (or such
other form as may be prescribed by the Board from time to time) (the “Deferral
Election Form”), that the Restricted Stock Units shall be paid on or as
soon as practicable after any date specified by the Grantee on the Deferral
Election Form; provided, however, that such election must be made at least
twelve (12) months before the original Payment Date and the date elected by the
Grantee must be at least five (5) years after the original Payment Date. In the
event of any such election, the new payment date timely elected by the Grantee
shall be the new “Payment Date” with respect to the Restricted Stock Units
covered by the election.

 

7.             Termination of Service. In the event of the termination
of the Grantee’s Continuous Service as a Director for any reason prior to the
lapsing of the restrictions in accordance with Section 4 hereof with respect to
any of the Restricted Stock Units granted hereunder, such portion of the
Restricted Stock Units held by Grantee shall be automatically forfeited by the
Grantee as of the date of termination. Neither the Grantee nor any of the
Grantee’s successors, heirs, assigns or personal representatives shall have any
rights or interests in any Restricted Stock Units that are so forfeited.

 

8.             Corporate Transaction. Notwithstanding
any other provision herein, in the event of a Corporate Transaction, any
Restricted Stock Units that are then outstanding shall become fully vested and
may be paid to the Grantee immediately prior to the effectiveness of the Corporate
Transaction as provided in Section 13(b) of the Plan.

 

9.             Tax Consequences. Set forth below
is a brief summary of certain federal and California tax consequences relating
to the Restricted Stock Units under the law in effect as of the date of grant. THIS
SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT
TO CHANGE. THE GRANTEE SHOULD CONSULT HIS OR HER OWN TAX ADVISER FOR MORE
INFORMATION ON THE TAX CONSEQUENCES OF THE RESTRICTED STOCK UNITS.

 

(a)           Payment of the Restricted Stock Units. Upon
any payment of the Restricted Stock Units (including any additional Restricted
Stock Units granted in respect of dividend equivalent rights), the Grantee may
incur ordinary federal and California income tax liability at the time of
payment. The Grantee will be treated as having received compensation income
(taxable at ordinary income tax rates) equal to the Fair Market Value of the
Shares received in payment of the Restricted Stock Units.

 

(b)           Disposition of Shares. If the Grantee
holds the Shares received in payment of the Restricted Stock Units for more
than one year, gain realized on disposition of the Shares will be treated as
long-term capital gain for federal and California income tax purposes.

 

[Remainder of page intentionally
left blank]

 

2

 

By your signature and the signature of the Company’s
representative below, you and the Company agree that this Award is granted
under and governed by the terms and conditions of the Plan and this Agreement. You
acknowledge and agree that you have reviewed the Plan and this Agreement in
their entirety, have had an opportunity to obtain the advice of counsel prior
to executing this Agreement and fully understand all provisions of the Plan and
this Agreement. You hereby agree to accept as binding, conclusive and final all
decisions or interpretations of the Board upon any questions relating to the
Plan and this Agreement.

 

	
  GRANTEE:

  	
   

  	
  YAHOO! INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
   

  
						

 

3

 

EXHIBIT A

 

DEFERRAL
ELECTION FORM

 

	
  To:

  	
  Yahoo! Inc.

  
	
   

  	
   

  
	
  Attn:

  	
  Stock Option
  Administrator

  
	
   

  	
   

  
	
  Subject:

  	
  Notice of Intention to
  Defer Payment of Restricted Stock Units

  

 

I, the undersigned, hereby make
the following irrevocable election with respect to the Restricted Stock Units
granted to me under the 1996 Directors’ Stock Plan on                     ,
200   .

 

o            I elect not to
defer the payment of my Restricted Stock Units. I understand that my Restricted
Stock Units will be paid to me on or as soon as practicable after the earlier
of (i) the date my services as a director terminate, or (ii) the third
anniversary of the date my Restricted Stock Units were granted.

 

o            I elect to defer the payment of my Restricted
Stock Units until                         ,
20     . [The date you select must
be at least eight years after the date the Restricted Stock Units were
granted.]

 

Authorization/Signature

 

My signature below certifies
that I wish to make the irrevocable deferral elections indicated above, and
that I authorize Yahoo! Inc. to defer payment of my Restricted Stock Units to
implement these elections. I understand that, notwithstanding my election, my
Restricted Stock Units may be paid to me early in the event of a Corporate
Transaction. I understand that I must complete a new election form to defer
payment of Restricted Stock Units granted in any subsequent year.

 

 

	
  Signature:

  	
   

  	
   

  	
  Date:

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