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Exhibit 10.22  

 
 

Amended and Restated 1996 Long-Term Incentive Plan    
    
    Sabre Holdings Corporation    
    
    As Amended May 14, 2002    

 
CONTENTS  

	 
	 	Page

	Section 1. Purpose; Definitions	 	1
	

Section 2. Administration	
 	

2
	

Section 3. Stock Subject to Plan	
 	

4
	

Section 4. Eligibility	
 	

4
	

Section 5. Stock Options	
 	

4
	

Section 6. Stock Appreciation Rights	
 	

7
	

Section 7. Restricted Stock	
 	

8
	

Section 8. Deferred Stock	
 	

9
	

Section 9. Stock Purchase Rights	
 	

10
	

Section 10. Other Stock-Based Awards	
 	

10
	

Section 11. Performance Related Awards	
 	

11
	

Section 12. Change in Control Provisions	
 	

12
	

Section 13. Amendments and Termination	
 	

15
	

Section 14. Unfunded Status of Plan	
 	

15
	

Section 15. General Provisions	
 	

15
	

Section 16. Term of Plan	
 	

16

i

Sabre Holdings Corporation

Amended and Restated 1996 Long-Term Incentive Plan  

Section 1. Purpose; Definitions  

        The purpose of the Sabre Holdings Corporation Amended and Restated 1996 Long-Term Incentive Plan (the "Plan") is to enable Sabre Holdings Corporation
(the "Company") to attract, retain, and reward non-employee directors, officers, managers, and key employees of the Company and its Subsidiaries and Affiliates, and strengthen the
mutuality of interests between such individuals and the Company's shareholders, by offering such individuals performance-based stock incentives and/or other equity interests or equity-based incentives
in the Company, as well as performance-based incentives payable in cash. The Plan is intended to replace and supersede the Company's 1996 Long-Term Incentive Plan (the "1996 Plan"). 

        For
purposes of the Plan, the following terms shall be defined as set forth below 

        (a)   "Affiliate" means any entity other than the Company and its Subsidiaries that is designated by the Board as a
participating employer under the Plan, provided that the Company directly or indirectly owns at least twenty percent (20%) of the combined voting power of all classes of stock of such entity or at
least twenty percent (20%) of the ownership interests in such entity. 

        (b)   "Board" means the Board of Directors of the Company. 

        (c)   "Book Value" means, as of any given date, on a per share basis (a) the Stockholders' Equity in the Company as of
the end of the immediately preceding fiscal year as reflected in the Company's consolidated balance sheet, subject to such adjustments as the Committee shall specify at or after grant, divided by
(b) the number of then outstanding shares of Stock as of such year-end date (as adjusted by the Committee for subsequent events). 

        (d)   "Cause" means, but is not limited to, any of the following actions: theft, dishonesty or fraud, insubordination,
persistent inattention to duties or excessive absenteeism, violation of the Company's work rules, code of conduct or policies or state or federal law, or any other conduct which would disqualify the
participant from entitlement to unemployment benefits. The determination of whether Cause exists shall be made in the Company's sole discretion. 

        (e)   "Code" means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto. 

        (f)    "Committee" means the Committee referred to in Section 2 of the Plan. If at any time no Committee shall be in
office, then the functions of the Committee specified in the Plan shall be exercised by the Board. 

        (g)   "Company" means Sabre Holdings Corporation, a corporation organized under the laws of the State of Delaware, or any
successor corporation. 

        (h)   "Deferred Stock" means an award made pursuant to Section 8 below of the right to receive Stock at the end of a
specified deferral period. 

        (i)    "Disability" means disability as determined under procedures established by the Committee for purposes of this Plan. 

        (j)    "Early Retirement" means retirement, with the express consent for purposes of this Plan of the Committee at or before the
time of such retirement, from active employment with the Company and any Subsidiary or Affiliate. For purposes of this plan, and unless otherwise defined in a specific equity grant the participant
will be deemed to have Early Retired if they voluntarily leave employment with the Company when their age is 55 or greater and their years of service are equal to 10 or more. 

        (k)   "Effective Date" means May 14, 2002. 

        (l)    "Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time, and any successor thereto. 

 

        (m)  "Fair Market Value" means, as of any given date, unless otherwise determined by the Committee in good faith, the mean
between the highest and lowest quoted selling price, regular was, of the Stock on the New York Stock Exchange or, if no such sale of Stock occurs on the New York Stock Exchange on such date, the fair
market value of the Stock as determined by the Committee in good faith. 

        (n)   "Incentive Stock Option" means any Stock Option intended to be and designated as and incentive Stock Option" within the
meaning of Section 422 of the Code. 

        (o)   "Nonqualified Stock Option" means any Stock Option that is not an Incentive Stock Option. 

        (p)   "Normal Retirement" means, unless otherwise determined by the Committee, retirement from active employment by or service
with the Company and any Subsidiary or Affiliate on or after age 65. 

        (q)   "Other Stock-Based Award" means an award under Section 10 below that is valued in whole or in part by reference
to, or is otherwise based on, Stock. 

        (r)   "Performance Award" means an award under Section 11 below that is valued based on the level of attainment of
performance objectives related to the performance measures set forth in Section 11. 

        (s)   "Person" means "person" as defined in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d) and 14(d)
thereof, including a "group" as defined in Section 13(d) of the Exchange Act but excluding the Company and Subsidiary and any employee benefit plan sponsored or maintained by the Company or any
Subsidiary (including any trustee of such plan acting as trustee). 

        (t)    "Phantom Award" means an award issued prior to the Effective Date by the Company pursuant to a stock appreciation right
agreement or a phantom stock appreciation right agreement. 

        (u)   "Plan" means Sabre Holdings Corporation's Amended and Restated 1996 Long-Term Incentive Plan, as hereinafter
amended from time to time. 

        (v)   "Restricted Stock" means an award of shares of Stock that is subject to restrictions under Section 7 below. 

        (w)  "Retirement" means Normal or Early Retirement. 

        (x)   "Stock" means the Class A Common Stock, $.01 par value per share, of the Company. 

        (y)   "Stock Appreciation Right" means the right to participate in an increase in the value of a share of Stock pursuant to an
award granted under Section 6. 

        (z)   "Stock Option" or "Option" means any option to purchase shares of Stock
(including Restricted Stock and Deferred Stock, if the Committee so determines) granted pursuant to Section 5 below. 

        (aa) "Stock Purchase Right" means the right to purchase Stock pursuant to Section 9. 

        (bb) "Subsidiary" means a corporation (other than the Company) in an unbroken chain of corporations beginning with the
Company if each of the corporations (other than the last corporation in the unbroken chain) owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock
in one of the other corporations in the chain. 

        In
addition, the terms "Change in Control," "Potential Change in Control," "Change in Control Price," "Good Reason," and "Notice of Termination" shall have the meanings set forth,
respectively, in Sections 12(b), (c), (d), (e), and (f) below. 

Section 2. Administration  

        The Plan shall be administered by a committee of not less than two members of the Board, who shall be appointed by, and serve at the pleasure of, the Board. In
selecting the members of the Committee, the Board shall take into account the requirements for the members of the Committee to be treated as 

2

 

"Outside
Directors" within the meaning of Section 162(m) of the Code and "Non-Employee Directors" for purposes of Rule 16b-3, as promulgated under
Section 16 of the Exchange Act. The functions of the Committee specified in the Plan shall be exercised by the Board, if and to the extent that no Committee exists which has the authority to so
administer the Plan or to the extent that the Committee is not comprised solely of Non-Employee Directors for purposes of Rule 16b-3, as promulgated under
Section 16 of the Exchange Act. 

        The
Committee shall have full authority to grant, pursuant to the terms of the Plan, to non-employee directors, officers, managers, and key Employees, eligible under
Section 4: (i) Stock Options and Incentive Stock Options: (ii) Stock Appreciation Rights: (iii) Restricted Stock: (iv) Deferred Stock: (v) Stock Purchase
Rights: (vi) Other Stock-Based Awards: and/or (vii) Performance Awards. 

        In
particular the Committee shall have the authority: 

	(i)
	To
select the non-employee directors, officers, managers, and key employees of the Company and its Subsidiaries and Affiliates to whom Stock Options,
Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Deferred Stock, Stock Purchase Rights, Other Stock-Based Awards, and/or Performance Awards may from time to time be granted
hereunder;

	(ii)
	To
determine whether and to what extent Incentive Stock Options, Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock, Deferred Stock, Stock Purchase
Rights, Other Stock Based Awards, and/or Performance Awards or any combination thereof, are to be granted hereunder to one or more eligible employees and non-employee directors;

	(iii)
	Subject
to the provisions of Sections 3, 5 and 11, to determine the number of shares to be covered by each such award granted hereunder;

	(iv)
	To
determine the terms and conditions, not inconsistent with the terms of the Plan, of any award granted hereunder (including, but not limited to, the share price and
any restriction or limitation, or any vesting acceleration or waiver of forfeiture restrictions regarding any Stock Option or other award and or the shares of Stock relating thereto, based in each
case on such factors as the Committee shall determine in its sole discretion);

	(v)
	To
determine whether and under what circumstances a Stock Option may be settled in cash, Restricted Stock and/or Deferred Stock under Section 5(l) or (m), as
applicable, instead of Stock;

	(vi)
	To
determine whether and under what circumstances an award of Restricted Stock or Deferred Stock may be settled in cash;

	(vii)
	To
determine whether, to what extent and under what circumstances Option grants and/or other awards under the Plan and/or other cash awards made by the Company are to
be made, and operate, on a tandem basis vis-à-vis other awards under the Plan and/or cash awards made outside of the Plan, or on an additive basis;

	(viii)
	To
determine whether, to what extent and under what circumstances Stock and other amounts payable with respect to an award under this Plan shall be deferred either
automatically or at the election of the participant (including providing for and determining the amount (if any) of any deemed earnings on any deferred amount during any deferral period);

	(ix)
	To
determine the terms and restrictions applicable to Stock Purchase Rights and the Stock purchased by exercising such Rights; and

	(x)
	To
designate the Corporate Secretary of the Company, other officers or employees of the Company or competent professional advisors to assist the Committee in the
administration of the Plan, and to grant authority to such persons to execute agreements or other documents on its behalf. 

3

 

        The
Committee shall have the authority to adopt, alter, and repeal such rules, guidelines and practices governing the Plan as it shall, from time to time, deem advisable: to interpret
the terms and provisions of the Plan and any award issued under the Plan (and any agreements relating thereto): and to otherwise supervise the administration of the Plan. 

        All
decisions made by the Committee pursuant to the provisions of the Plan shall be made in the Committee's sole discretion and shall be final and binding on all persons, including the
Company and Plan participants. 

Section 3. Stock Subject to Plan  

        Effective May 14, 2002, the total number of shares of Stock reserved and available for distribution under the Plan shall be increased by 14,000,000 shares.
Along with the 13,000,000 shares previously reserved (which have grown to be 13,635,410 as a result of the adjustment for the dividend preceding the Company's spin-off from AMR
Corporation) the total number of shares reserved under the plan is 27,635,410 shares. However, no more than two million (2,000,000) shares of Stock shall be granted on or after May 14, 2002 in
the form of Restricted Stock; the 2 million (2,000,000) share limit is inclusive of the approximately one hundred and ninety-two thousand (192,000) shares remaining of the previous
one million (1,000,000) share Restricted Stock limit. In addition, no more than one million (1,000,000) shares of Stock shall be granted on or after May 14, 2002 in the form of Deferred Stock,
Stock Purchase Rights, Other Stock Based Awards, Performance Awards or Phantom Awards. 

        Subject
to Section 6(b)(iv) below, if any shares of Stock that have been optioned cease to be subject to a Stock Option or an Incentive Stock Option, or if any such shares
of Stock that are subject to any Restricted Stock or Deferred Stock award, Stock Purchase Right, Performance Awards, or Other Stock-Based Award granted hereunder are forfeited or any such award
otherwise terminates without a payment being made to the participant in the form of Stock, such shares shall not be counted against the share limits set forth in this Section 3 and shall again
be available for distribution in connection with future awards under the Plan. 

        In
the event of any merger, reorganization, consolidation, recapitalization, Stock dividend, large non-recurring cash dividend (as determined by the Committee), Stock split
or other change in corporate structure affecting the Stock, such substitution or adjustment shall be made in the aggregate number of shares reserved for issuance under the Plan, in the number and
option price of shares subject to outstanding Options granted under the Plan, in the number and purchase price of shares subject to outstanding Stock Purchase Rights under the Plan, and in the number
of shares subject to other outstanding awards granted under the Plan as may be determined to be appropriate by the Committee, in its sole discretion, provided that the number of shares subject to any
award shall always be a whole number. Such adjusted option price shall also be used to determine the amount payable by the Company upon the exercise of any Stock Appreciation Right. 

Section 4. Eligibility  

        Non-employee directors, officers, managers, and other key employees of the Company and its Subsidiaries and Affiliates who are responsible for or
contribute to the management, growth and/or profitability of the business of the Company and/or its Subsidiaries and Affiliates are eligible to be granted awards under the Plan. 

Section 5. Stock Options  

        Stock Options may be granted alone, in addition to or in tandem with other awards granted under the Plan. Any Stock Option granted under the Plan shall be in such
form as the Committee may from time to time approve. 

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        Stock
Options granted under the Plan may be of two types: (i) Incentive Stock Options and (ii) Nonqualified Stock Options. 

        The
Committee shall have the authority to grant to any optionee Incentive Stock Options, Nonqualified Stock Options, or both types of Stock Options (in each case with or without Stock
Appreciation Rights); provided that, in no event shall the number of shares of Stock subject to any Stock Options granted to any employee during any twelve (12) month period (determined without
regard to whether any option is cancelled) exceed one million (1,000,000) shares, as such number may be adjusted pursuant to Section 3. 

        Options
granted under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan,
as the Committee shall deem desirable: 

        (a)    Option Price.    The Option price per share of Stock purchasable under a Stock Option
shall be determined by the Committee at the time of grant but shall be not less than one hundred percent (100%) of the Fair Market Value of the Stock at grant, provided however, that (i) the
Option price per share of Stock purchasable under a Stock Option that is granted to an optionee in replacement of a Phantom Award may be less than one hundred percent (100%) of the Fair Market Value
of the Stock at the time of grant, subject to an overall limit of fifty thousand (50,000) shares of Stock purchasable under
such Stock Options replacing Phantom Awards; and (ii) the Option price per share of Stock purchasable under a Stock Option that is granted in connection with a merger, stock exchange, or other
acquisition as a substitute or replacement award for options held by optionees of the acquired entity may be less than one hundred percent (100%) of the Fair Market Value of the Stock at the time of
grant. 

        (b)    Option Term.    The term of each Stock Option shall be fixed by the Committee, but no
Stock Option shall be exercisable more than ten (10) years after the date the Option is granted. 

        (c)    Exercisability.    Stock Options shall be exercisable at such time or times and subject
to such terms and conditions as shall be determined by the Committee at or after grant: provided, however, that, except as provided in Section 12, or unless otherwise determined by the
Committee at or after grant, no Stock Option shall be exercisable prior to the first anniversary date of the granting of the Option. If the Committee provides, in its sole discretion, that any Stock
Option is exercisable only in installments, the Committee may waive such installment exercise provisions at any time at or after grant in whole or in part, based on such factors as the Committee shall
determine, in its sole discretion. 

        (d)    Method of Exercise.    Subject to whatever installment exercise provisions apply under
Section 5(c), Stock Options may be exercised in whole or in part at any time during the option period, by giving written notice of exercise to the Company, or its designated representative,
specifying the number of shares to be purchased. 

        Such
notice shall be accompanied by payment in full of the purchase price, either by check, note or such other instrument as the Committee may accept. As determined by the Committee, in
its sole discretion, at or after grant, payment in full or in part may also be made in the form of unrestricted Stock already owned by the optionee or, in the case of the exercise of a Nonqualified
Stock Option, in the form of Restricted Stock, or Deferred Stock subject to an award hereunder (based, in each case, on the Fair Market Value of the Stock on the date the Option is exercised). 

        If
payment of the option exercise price of a Nonqualified Stock Option is made in whole or in part in the form of Restricted Stock or Deferred Stock, such Restricted Stock or Deferred
Stock (and any replacement shares relating thereto) shall remain (or be) restricted or deferred, as the case may be, in accordance with the original terms of the Restricted Stock award or Deferred
Stock award in question, and any additional Stock received upon the exercise shall be subject to the same forfeiture restrictions or deferral limitations, unless otherwise determined by the Committee,
in its sole discretion, at or after grant. 

5

   
        No shares of Stock shall be issued until full payment therefore has been made. An optionee shall generally have the rights to dividends or other rights of a shareholder with respect to
the shares subject to the Option when the optionee has given written notice of exercise, has paid in full for such shares, and, if requested, has given the representation described in
Section 15(a). 

        (e)    Transferability of Options.    Unless the Committee shall permit (on such terms and
conditions as it shall establish) an Option to be transferred to a member of the participant's immediate family or to a trust or similar vehicle for the benefit of such immediate family members, no
Option shall be assignable or transferable except by will or the laws of descent and distribution, and except to the extent required by law, no right or interest of any participants shall be subject
to any lien, obligation or liability of the participant. 

        (f)    Termination by Death.    Subject to Section 5(k), if an optionee's employment by
or service with the Company and any Subsidiary or Affiliate terminates by reason of death, any Stock Option held by such optionee may thereafter be exercised in accordance with the terms and
conditions established by the Committee. 

        (g)    Termination by Reason of Disability.    Subject to Section 5(k), if an
optionee's employment by or service with the Company and any Subsidiary or Affiliate terminates by reason of Disability, any Stock Option held by such optionee may thereafter be exercised by the
optionee in accordance with the terms and conditions established by the Committee. In the event of termination of employment or service by reason of Disability, if an Incentive Stock Option is
exercised after the expiration of the exercise periods that apply for purposes of Section 422 of the Code, such Stock Option will thereafter be treated as a Nonqualified Stock Option. 

        (h)    Termination by Reason of Retirement.    Subject to Section 5(k), if an
optionee's employment by or service with the Company and any Subsidiary or Affiliate terminates by reason of Normal or Early Retirement, any Stock Option held by such optionee may thereafter be
exercised by the optionee, in accordance with the terms and conditions established by the Committee. In the event of termination of employment by reason of Retirement, if an Incentive Stock Option is
exercised after the expiration of the exercise periods that apply for purposes of Section 422 of the Code, such Stock Option will thereafter be treated as Nonqualified Stock Option. 

        (i)    Termination for Cause.    Subject to Section 5(k), if an optionee's employment
by the Company and any Subsidiary or Affiliate is terminated for Cause, the Stock Option shall thereupon terminate, whether or not exercisable at that time. 

        (j)    Other Termination.    Unless otherwise determined by the Committee, if an optionee's
employment by or service with the Company and any Subsidiary or Affiliate terminates for any reason other than death, Disability or Normal or Early Retirement, the Stock Option shall thereupon
terminate. 

        (k)    Incentive Stock Options.    Anything in the Plan to the contrary notwithstanding, no
term of this Plan relating to Incentive Stock Options shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be so exercised, so as to disqualify the
Plan under Section 422 of the Code, or, without the consent of the optionee(s) affected, to disqualify any Incentive Stock Option under such Section 422. 

        (l)    Buyout Provisions.    The Committee may at any time offer to buy out for payment in
cash, Stock, Deferred Stock or Restricted Stock, an Option previously granted, based on such terms and conditions as the Committee shall establish and communicate to the participant at the time that
such offer is made. 

        (m)    Settlement Provisions.    If the option agreement so provides at grant or is amended
after grant but prior to the exercise to so provide (with the optionee's consent), the Committee may require that all or part of the shares to be issued with respect to the spread value of an
exercised Option take the form of Deferred or Restricted Stock, which shall be valued on the date of exercise on the basis of the Fair Market 

6

 

Value
(as determined by the Committee) of such Deferred or Restricted Stock determined without regard to the deferral limitations and/or forfeiture restrictions involved. 

        (n)    Repricing.    The price payable for any Share issued under the Plan may not be
decreased after the date of grant, nor may an Option or Stock Appreciation Right granted under the Plan be surrendered to the Company as consideration for the grant of a new Option or Stock
Appreciation Right with a lower price payable per Share; except that the Committee may make adjustments pursuant to Section 3. 

Section 6. Stock Appreciation Rights  

        (a)    Grant and Exercise.    Stock Appreciation Rights may be granted alone or in conjunction
with all or part of any Stock Option granted under the Plan: provided that, in no event shall the number of shares of Stock Appreciation Rights granted to any employee during any twelve
(12) month period exceed one million (1,000,000) shares, as such number may be adjusted pursuant to Section 3. In the case of a Nonqualified Stock Option, such rights may be granted
either at or after the time of the grant of such Stock Option. In the case of an Incentive Stock Option, such rights may be granted only at the time of grant of such Stock Option. 

        The
term of each Stock Appreciation Right granted independent of a Stock Option shall be fixed by the Committee, but no Stock Appreciation Right shall be exercisable more than ten
(10) years after the date the Stock Appreciation Right is granted. A Stock Appreciation Right or applicable portion thereof granted with respect to a given Stock Option shall terminate and no
longer be exercisable upon the termination or exercise of the related Stock Option, subject to such provisions as the Committee may specify at grant where a Stock Appreciation Right is granted with
respect to less than the full number of shares covered by a related Stock Option. 

        A
Stock Appreciation Right may be exercised by an optionee, subject to Section 6(b), in accordance with the procedures established by the Committee for such purposes. Upon such
exercise, the optionee shall be entitled to receive an amount determined in the manner prescribed in Section 6(b). Stock Options relating to exercised Stock Appreciation Rights shall no longer
be exercisable to the extent that the related Stock Appreciation Rights have been exercised. 

        (b)    Terms and Conditions.    Stock Appreciation Rights shall be subject to such terms and
conditions, not inconsistent with the provisions of the Plan, as shall be determined from time to time by the Committee, including the following: 

	(i)
	Stock
Appreciation Rights shall be exercisable at such time or times as shall be determined by the Committee at or after grant: provided, however, that Stock
Appreciation Rights granted in conjunction with Stock Options shall be exercisable only at such time or times and to the extent that the Stock Options to which they relate shall be exercisable in
accordance with the provisions of Section 5 and this Section 6 of the Plan.

	(ii)
	Upon
the exercise of a Stock Appreciation Right, an optionee shall be entitled to receive an amount in cash and/or shares of Stock equal in value to the excess of the
Fair Market Value on the date of exercise of one share of Stock over the exercise price per share determined by the Committee at the time of grant multiplied by the number of shares in respect of
which the Stock Appreciation Right shall have been exercised, with the Committee having the right to determine the form of payment. When payment is to be made, the amount and/or number of shares (when
payment is to be made in shares) to be paid shall be calculated on the basis of the Fair Market Value of the shares on the date of exercise.

	(iii)
	Except
to the extent the Committee may authorize or permit Stock Appreciation Rights to be transferred to, or for the benefit of, members of the participant's family,
no Stock Appreciation Right shall be transferable by the participant otherwise than by will or by the 

7

 

law's
of descent and distribution, and all Stock Appreciation Rights shall be exercisable, during the participant's lifetime only by the participant. 

	(iv)
	Upon
the exercise of a Stock Appreciation Right granted in conjunction with a Stock Option under the Plan, the number of shares issued under such Stock Appreciation
Right based on the value of the Stock Appreciation Right at the time of exercise shall be deemed to be issued for purposes of the share authorization set forth in Section 3 of the Plan. 

Section 7. Restricted Stock  

        (a)    Administration.    Subject to the limitations set forth in Section 3, shares of
Restricted Stock may be issued either alone or, in addition to, or in tandem with, other awards granted under the Plan and or cash awards made outside of the Plan. The Committee shall determine the
eligible persons to whom, and the time or times at which, grants of Restricted Stock will be made, the number of shares to be awarded, the price (if any) to be paid by the recipient of Restricted
Stock (subject to Section 7(b)), the time or times within which such awards may be subject to forfeiture, and all other terms and conditions of the awards. 

        The
Committee may condition the grant of Restricted Stock upon the attainment of specified performance goals or such other factors as the Committee may determine, in its sole discretion. 

        The
provisions of Restricted Stock awards need not be the same with respect to each recipient. 

        (b)    Awards and Certificates.    The prospective recipient of a Restricted Stock award shall
not have any rights with respect to such award, unless and until such recipient has executed an agreement evidencing
the award and has delivered a fully executed copy thereof to the Company, and has otherwise complied with the applicable terms and conditions of such award. 

	(i)
	The
purchase price for shares of Restricted Stock shall be equal to or less than their par value and may be zero.

	(ii)
	Awards
of Restricted Stock must be accepted within a reasonable period (or such specific period as the Committee may specify at grant) after the award date, by
executing an award agreement and paying whatever price (if any) is required under Section 7(b)(i). 

        (c)    Terms and Conditions.    The shares of Restricted Stock awarded pursuant to this
Section 7 shall he subject to the following restrictions and conditions: 

	(i)
	Subject
to the provisions of this Plan and the award agreement, during a period set by the Committee commencing with the date of such award (the "Restriction Period"),
the participant shall not be permitted to sell, transfer, pledge or assign shares of Restricted Stock awarded under the Plan. Within these limits, the Committee, in its sole discretion, may provide
for the lapse of such restrictions in installments and may accelerate or waive such restrictions in whole or in part, based on service, performance and or such other factors or criteria as the
Committee may determine, in its sole discretion.

	(ii)
	Except
as provided in this paragraph (ii) and Section 7(c)(i), the Committee, in its sole discretion, as determined at the time of the award, may permit
the participant to have, with respect to the shares of Restricted Stock, all of the rights of a shareholder of the Company, including the right to vote the shares, and the right to receive any cash
dividends. The Committee, in its sole discretion, as determined at the time of award, may permit or require the payment of cash dividends and may permit or require such cash dividends to be deferred
and, if the Committee so determines, reinvested, subject to Section 15(e), in additional Restricted Stock to the extent shares are available under Section 3, or otherwise reinvested.
Pursuant to Section 3 above, Stock dividends issued with respect to Restricted Stock shall be treated as additional shares of Restricted Stock that are subject to the same restrictions and 

8

 

other
terms and conditions that apply to the shares with respect to which such dividends are issued, 

	(iii)
	Subject
to the applicable provisions of the award agreement and this Section 7, upon termination of a participant's employment or service with the Company and
any Subsidiary or Affiliate for any reason during the Restriction Period, all shares still subject to restriction will vest, or be forfeited, in accordance with the terms and conditions established by
the Committee at or after grant.

	(iv)
	If
and when the Restriction Period expires without a prior forfeiture of the Restricted Stock subject to such Restriction Period, certificates for an appropriate number
of unrestricted shares shall be delivered to the participant promptly (unless the Committee decides pursuant to Section 2(vi) to settle the award in cash). 

        (d)    Minimum Value Provisions.    In order to better ensure that award payments actually
reflect the performance of the Company, Subsidiaries, Affiliates and service of the participant, the Committee may provide, in its sole discretion, for a tandem performance-based or other award
designed to guarantee a minimum value, payable in cash or Stock to the recipient of a Restricted Stock award, subject to such performance, future service, deferral and other terms and conditions as
may be specified by the Committee. 

Section 8. Deferred Stock  

        (a)    Administration.    Deferred Stock may be awarded either alone, in addition to, or in
tandem with other awards granted under the Plan and/or cash awards made outside of the Plan. The Committee shall determine the eligible persons to whom and the time or times at which Deferred Stock
shall be awarded, the number of shares of Deferred Stock to be awarded to any person, the duration of the period (the "Deferral Period") during which, and the conditions under which, receipt of the
Stock will be deferred, and the other terms and conditions of the award in addition to those set forth in Section 8(b). 

        The
Committee may condition the grant of Deferred Stock upon the attainment of specified performance goals or such other factors or criteria as the Committee shall determine, in its sole
discretion. 

        The
provisions of Deferred Stock awards need not be the same with respect to each recipient. 

        (b)    Terms and Conditions.    The shares of Deferred Stock awarded pursuant to this
Section 8(b) shall be subject to the following terms and conditions: 

	(i)
	Subject
to the provision of this Plan and the award agreement referred to in Section 8(b)(vi) below, Deferred Stock awards may not be sold, assigned,
transferred, pledged or otherwise encumbered during the Deferral Period. At the expiration of the Deferral Period (or the Elective Deferral Period referred to in Section 8(b)(v), where
applicable), share certificates shall be delivered to the participant, or his legal representative, in a number equal to the shares covered by the Deferred Stock award (unless the Committee decides
pursuant to Section 2(vi) to settle the award in cash).

	(ii)
	Unless
otherwise determined by the Committee at grant, amounts equal to any dividends declared during the Deferral Period with respect to the number of shares covered
by a Deferred Stock award will be paid to the participant currently, or deferred and deemed to be reinvested in additional Deferred Stock, or otherwise reinvested, all as determined at or after the
time of the award by the Committee, in its sole discretion.

	(iii)
	Subject
to the provisions of the award agreement and this Section 8, upon termination of a participant's employment or service with the Company and any
Subsidiary or Affiliate for any reason during the Deferral Period for a given award, the Deferred Stock in question will 

9

 

vest,
or be forfeited, in accordance with the terms and conditions established by the Committee at or after grant. 

	(iv)
	Based
on service, performance, and/or such other factors or criteria as the Committee may determine, the Committee may, at or after grant, accelerate the vesting of all
or any part of any Deferred Stock award and/or waive the deferral limitations for all or any part of such award.

	(v)
	A
participant may elect to further defer receipt of an award (or an installment of an award) for a specified period or until a specified event (the "Elective Deferral
Period"), subject to the Committee's approval and to such terms as are determined by the Committee, all in its sole discretion. Subject to any exceptions adopted by the Committee, such election must
generally be made at least twelve (12) months prior to completion of the Deferral Period of such Deferred Stock award (or such installment).

	(vi)
	Each
award shall be confirmed by, and subject to the terms of, a Deferred Stock agreement executed by the Company and the participant. 

        (c)    Minimum Value Provisions.    In order to better ensure that award payments actually
reflect the performance of the Company, Subsidiaries, Affiliates and service of the participant, the Committee may provide, in its sole discretion, for a tandem performance-based or other award
designed to guarantee a minimum value, payable in cash or Stock to the recipient of a Deferred Stock award, subject to such performance, future service, deferral and other terms and conditions as may
be specified by the Committee. 

Section 9. Stock Purchase Rights  

        (a)    Awards and Administration.    The Committee may grant eligible participants Stock
Purchase Rights which shall enable such participants to purchase Stock (including Deferred Stock and Restricted Stock) at price(s) determined by the Committee at or after grant. 

        The
Committee shall also impose such deferral, forfeiture, and/or other terms and conditions as it shall determine, in its sole discretion, on such Stock Purchase Rights or the exercise
thereof. 

        The
terms of Stock Purchase Rights awards need not be the same with respect to each participant. 

        Each
Stock Purchase Right award shall be confirmed by, and be subject to the terms of, a Stock Purchase Rights agreement. 

        (b)    Exercisability.    Stock Purchase Rights shall be exercisable for such period after
grant as is determined by the Committee. 

Section 10. Other Stock-Based Awards  

        (a)    Administration.    Other awards of Stock and other awards that are valued in whole or
in part by reference to, or are otherwise based on, Stock ("Other Stock-Based Awards"), including, without limitation, stock purchase rights, performance shares, convertible preferred stock,
convertible debentures, exchangeable securities and Stock awards or options valued by reference to Book Value or subsidiary performance, may be granted either along with, or in addition to, or in
tandem with, Stock Options, Stock Appreciation Rights, Restricted Stock, Deferred Stock, or Stock Purchase Rights granted under the Plan and/or cash awards made outside of the Plan. 

        Subject
to the provisions of the Plan, the Committee shall have authority to determine the persons to whom and the time or times at which such awards shall be made, the number of shares
of Stock to be awarded pursuant to such awards, and all other conditions of the awards. The Committee may also provide for the grant of Stock upon the completion of a specified performance period. 

10

 

        The
provision of Other Stock-Based Awards need not be the same in respect to each recipient. 

        (b)    Terms and Conditions.    Other Stock-Based Awards made pursuant to this
Section 10 shall be subject to the following terms and conditions: 

	(i)
	Subject
to the provisions of this Plan and the award agreement referred to in Section 10(b)(v) below, shares subject to awards made under this
Section 10 may not be sold, assigned, transferred, pledged, or otherwise encumbered prior to the date on which the shares are issued, or, if later, the date on which any applicable restriction,
performance, or deferral period lapses.

	(ii)
	Subject
to the provision of this Plan and the award agreement and unless otherwise determined by the Committee at grant, the recipient of an award under this
Section 10 shall be entitled to receive, currently, or on a deferred basis, interest or dividends or interest or dividend equivalents with respect to the number of shares covered by the award,
as determined at the time of the award by the Committee, in its sole discretion, and the Committee may provide that such amounts (if any) shall be deemed to have been reinvested in additional Stock or
otherwise reinvested.

	(iii)
	Any
award under Section 10 and any Stock covered by any such award shall vest or be forfeited to the extent so provided in the award agreement as determined by
the Committee, in its sole discretion.

	(iv)
	In
the event of the participant's Retirement, Disability or death, or in cases of special circumstances, the Committee may, in its sole discretion, waive in whole or in
part any or all of the remaining limitations imposed hereunder (if any) with respect to any or all of an award under this Section 10.

	(v)
	Each
award under this Section 10 shall be confirmed by, and subject to the terms of, an agreement or other instrument by the Company and by the participant.

	(vi)
	Stock
(including securities convertible into Stock) issued on a bonus basis under this Section 10 may be issued for no cash consideration. Stock (including
securities convertible into Stock) purchased pursuant to a purchase right awarded under this Section 10 shall be priced at least fifty percent (50%) of the Fair Market Value of the Stock on the
date of grant. 

Section 11. Performance Related Awards  

        (a)    Performance Objectives.    Notwithstanding anything else contained in the Plan to the
contrary, unless the Committee otherwise determines at the time of grant, a cash-based award or any award of Restricted Stock, Deferred Stock, or Other Stock-Based Awards to an officer who
is subject to the reporting requirements of Section 16(a) of the Exchange Act, as amended, other than an award which will vest solely on the basis of the passage of time, shall become vested,
if at all, upon the determination by the Committee that performance objectives established by the Committee have been attained, in whole or in part (a "Performance Award"). Such performance objectives
shall be determined over a measurement period or periods established by the Committee and related to at least one of the following criteria, which may be determined solely by reference to the
performance of (i) the Company, (ii) a Subsidiary, (iii) an Affiliate, (iv) a division or unit of any of the foregoing, or based on comparison performance of any of the
foregoing relative to other companies: (A) return on assets: (B) return on equity; (C) total shareholder return: (D) revenues: (E) cash flows, revenues, and/or
earnings relative to other parameters: (F) operating income: (G) return on investment: (H) changes in the value of the Company's common stock: and (I) operating margin (the
"Performance Criteria"). Excluding Stock Options and/or Stock Appreciation Rights granted hereunder, the maximum number of shares of Stock that may be awarded to any one participant and that may be
subject to any such Performance Award in any twelve (12) month period shall not exceed 100,000 shares, as such number may be adjusted pursuant to Section 3. 

11

 

        (b)    Annual Incentive Compensation.    The Committee may, in addition to the Performance
Awards described above, pay cash amounts under the Plan to any officer of the Company and any Subsidiary or Affiliate who is subject to the reporting requirements of Section 16(a) of the
Exchange Act upon the achievement, in whole or in part, of performance goals or objectives established in writing by the Committee with respect to such performance periods as the Committee shall
determine. Any such goals or objectives shall be based on one or more of the Performance Criteria. Notwithstanding anything else contained herein to the contrary, the maximum amount of any such cash
payment to any single officer with respect to any calendar year shall not exceed the lesser of (A) $2,000,000 and (B) twice the officer's annual base salary as in effect on the last day
of the preceding fiscal year. 

        (c)    Interpretation.    Notwithstanding anything else in the Plan to the contrary, to the
extent a Performance Related Award is intended to qualify as performance-based compensation within the meaning of Section 162(m)(4)(C) of the Code, the Committee shall not be entitled to
exercise any discretion if the exercise of such discretion would cause such award to fail to qualify as performance-based compensation. 

Section 12. Change in Control Provisions  

        (a)    Impact of Event.    In the event of either: 

	(1)
	a
"Change in Control" as defined in Section 12(b), or

	(2)
	a
"Potential Change in Control" as defined in Section 12(c), but only if and to the extent so determined by the Committee or the Board at or after grant subject to any right of
approval expressly reserved by the Committee or the Board at the time of such determination, 

the
following shall occur: 

	(i)
	Any
issued and outstanding Stock Options, Stock Appreciation Rights, Restricted Stock, Performance Shares, Stock Equivalent Units, Deferred Stock, Stock Purchase Rights,
Other Stock-Based Awards, Performance Awards, or any other equity-based compensation (collectively, "Equity Awards") shall continue in effect or, if such continuation is not possible, shall be
equitably converted to equivalent Equity Awards of any successor entity.

	(ii)
	If
such continuation or conversion is not possible (but only if it is not possible), all such Equity Awards shall become fully vested and exercisable in accordance with
the following:

	(A)
	Any
Stock Appreciation Rights and any Stock Options awarded under the Plan not previously exercisable and vested shall become fully exercisable and vested.

	(B)
	The
restrictions or deferral limitations applicable to any Restricted Stock, Deferred Stock, Stock Purchase Rights. Other Stock-Based Awards, and Performance Awards in each case to
the extent not already vested under the Plan, shall lapse and such shares and awards shall be deemed fully vested and any Performance Criteria shall be deemed met at target.

	(iii)
	If
any Equity Awards are not vested in accordance with (ii) above, but rather are continued or converted as provided in (i) above, then they shall become
vested if the participant is involuntarily terminated without Cause or voluntarily terminates for Good Reason (as defined herein) within one (1) year after a Change in Control, and, if subject
to an exercise right, shall remain fully exercisable for at least three (3) months following such termination (or, if longer, pursuant to the terms of such Equity Awards).

	(iv)
	If
any Equity Awards are not continued or converted, but rather become fully vested and exercisable as provided in paragraph (ii) above, then the value of all
outstanding Stock Options, Stock Appreciation Rights, Restricted Stock, Deferred Stock, Stock Purchase 

12

 

Rights,
Other Stock-Based Awards, and Performance Awards in each case to the extent vested, shall, unless determined otherwise by the Committee in its sole discretion at or after grant but prior to
any Change in Control, be cashed out on the basis of the "Change in Control Price" as defined in Section 12(d) as of the date such Change in Control or such Potential Change in Control is
determined to have occurred or such other date as the Committee may determine prior to the Change in Control. 

        (b)    Definition of "Change in Control".    For purposes of Section 12(a), a "Change
in Control" means the happening of any of the following: 

	(i)
	When
any Person, directly or indirectly, becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act, as amended from time to
time) of securities of the Company representing twenty-five percent (25%) or more of the combined voting power of the Company's then outstanding securities:

	(ii)
	The
individuals who, as of the Effective Date of this Plan, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a director subsequent to the Effective Date of the Plan whose election, or nomination for election by the Company's shareholders, was approved by
a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose,
any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the Board; or

	(iii)
	Consummation
of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or the acquisition of
assets of another corporation (a "Business Combination"), in each case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the then outstanding share of stock of the Company (the "Outstanding Company Stock") and the combined voting power of the then outstanding voting securities of the
Company entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities") immediately prior to such Business Combination beneficially own, directly or indirectly,
more than sixty percent (60%) of, respectively, the then Outstanding Company Stock and the combined voting power of the then Outstanding Company Voting Securities entitled to vote generally in the
election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the
Company or all or substantially all of the Company's assets either directly or throughout one or more subsidiaries), (B) no Person (excluding any employee benefit plan (or related trust) of the
Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, twenty-five percent (25%) or more of respectively, the then Outstanding
Company Stock resulting from such Business Combination or the combined voting power of the then Outstanding Company Voting Securities except to the extent that such ownership existed prior to the
Business Combination, and (C) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the
time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or

	(iv)
	Approval
by the shareholders of the Company of a complete liquidation or dissolution of the Company. 

13

 

        (c)    Definition of Potential Change in Control.    For purposes of Section 12(a), a
"Potential Change in Control" means the happening of any one of the following: 

	(i)
	The
approval by shareholders of an agreement by the Company, the consummation of which would result in a Change in Control of the Company as defined in
Section 12(b); or

	(ii)
	The
acquisition of beneficial ownership, directly or indirectly, by any entity, person or group (other than the Company or a Subsidiary or any Company employee benefit
plan (including any trustee of such plan acting as such trustee)) of securities of the Company representing five percent (5%) or more of the combined voting power of the Company's outstanding
securities and the adoption by the Board of Directors of a resolution to the effect that a Potential Change in Control of the Company has occurred for purposes of this Plan. 

        (d)    Change in Control Price.    For the purposes of the Section 12, "Change in
Control Price" means the highest price per share paid in any transaction reported on the New York Stock Exchange Composite Index, or paid or offered in any bona fide transaction related to a potential
or actual Change in Control of the Company at any time during the sixty (60) day period immediately preceding the occurrence of the Change in Control (or, where applicable, the occurrence of
the Potential Change in Control event), in each case as determined by the Committee except that, in the case of Incentive Stock Options and Stock Appreciation Rights relating to Incentive Stock
Options, such price shall be based only on transactions reported for the date on which the optionee exercises such Stock Appreciation Rights or, where applicable, the date on which a cashout occurs
under Section 12(a)(iv). 

        (e)    Definition of Good Reason.    For purposes of Section 12(a) above, the
participant will be entitled to terminate employment with the Company and its Subsidiaries for "Good Reason" after a Change in Control if: 

	(i)
	without
the participant's written consent, one or more of the following events occurs at any time during the first twelve (12) months after such Change in
Control:

	(1)
	the
participant's base salary rate or annual incentive compensation target is reduced below that in effect immediately prior to the Change in Control for any reason other than for
Cause;

	(2)
	the
participant's principal office is moved, without the participant's consent, to a location that is more than fifty (50) statute miles from its location immediately prior to
the Change in Control;

	(3)
	for
any reason other than for Cause, the participant suffers a significant adverse change in the nature or scope of the authorities, powers, functions, responsibilities or duties
attached to the position with the Company which the participant held immediately prior to the Change in Control;

	(5)
	a
successor where applicable, does not assume and agree to the terms of this Plan; or

	(6)
	the
Company purports to terminate participant's employment other than in accordance with a Notice of Termination, as described below.

	(ii)
	the
participant notifies the Company in writing (addressed in care of the Chairman of the Board of the Company) of the occurrence of such event;

	(iii)
	within
thirty (30) days following receipt of such written notice, the Company does not cure such event to the reasonable satisfaction of the participant and
deliver to the participant a written statement that it has done so; and

	(iv)
	within
sixty (60) days following the expiration of the period specified in Section (12)(e)(iii) above (without the occurrence of a cure and written
notice thereof as 

14

 

described
in Section (12)(e)(iii) above), the participant voluntarily terminates employment with the Company. 

	(v)
	Notwithstanding
anything to the contrary in Section 12(e), no accelerated vesting will occur by reason of this Plan in the event of:

	(A)
	Termination
of the participant's employment with the Company by reason of the participant's death or Disability, so long as neither the participant nor the Company previously received
a Notice of Termination for the participant;

	(B)
	Termination
by the participant of the participant's employment with the Company at or after age sixty-five (65) if the participant is then eligible for retirement;
or

	(C)
	Termination
of the participant's employment with the Company for Cause. 

        (f)    Notice of Termination.    Any termination of the participant's employment, by the
Participant, as contemplated by Section 12(e) above will be communicated by written notice to the Company delivered in person or by certified mail. Any "Notice of Termination" will:
(i) state the effective date of termination, which will not be less than thirty (30) days or more than sixty (60) days after the date the Notice of Termination is delivered (the
"Termination Date"), (ii) state the specific provision in this Plan being relied upon for termination; (iii) state the facts and circumstances claimed to provide a basis for such
termination in reasonable detail. 

Section 13. Amendments and Termination  

        The Board may amend, alter, or discontinue the Plan, but no amendment, alteration, or discontinuation shall be made which would impair the rights of an optionee
or participant under a Stock Option,
Incentive Stock Option, Stock Appreciation Right, Restricted or Deferred Stock award, Stock Purchase Right, Other Stock-Based Award, or Performance Award theretofore granted, without the optionee's or
participant's consent. 

        The
Committee may amend the terms of any Stock Option or other award theretofore granted, prospectively or retroactively, except that, unless otherwise permitted by Section 3
above, (i) no such amendment shall impair the rights of any holder without the holder's consent; (ii) no such amendment may decrease the minimum Stock Option Exercise Price set forth in
subsection 5(a), unless any such amendment is approved by the Company's shareholders; and (iii) the provisions of subsection 5(n) may not be amended, unless any such amendment is approved by
the Company's shareholders. 

        Subject
to the above provisions, the Board shall have broad authority to amend the Plan to take in to account changes in applicable securities and tax laws and accounting rules, as well
as other developments. 

Section 14. Unfunded Status of Plan  

        The Plan is intended to constitute an "unfunded" plan for incentive and deferred compensation. With respect to any payments not yet made to a participant or
optionee by the Company, nothing contained herein shall give any such participant or optionee any rights that are greater than those of a general creditor of the Company. In its sole discretion, the
Committee may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Stock or payments in lieu of or with respect to awards hereunder:
provided, however, that unless the Committee otherwise determines with the consent of the affected participant, the existence of such trusts or other arrangements is consistent with the "unfunded"
status of the Plan. 

Section 15. General Provisions  

        (a)   The
Committee may require each person purchasing shares pursuant to a Stock Option or other award under the Plan to represent to and agree with the Company in writing
that the optionee or 

15

 

participant
is acquiring the shares without a view to distribution thereof. The certificates for such shares may include any legend, which the Committee deems appropriate to reflect any restrictions
on transfer. 

        All
certificates for shares of Stock or other securities delivered under the Plan shall be subject to such stock-transfer orders and other restrictions as the Committee may deem
advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Stock is then listed, and any applicable federal or state
securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 

        (b)   Nothing
contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to stockholder approval if such approval is
required, and such arrangements may be either generally applicable or applicable only in specific cases. 

        (c)   The
adoption of the Plan shall not confer upon any employee of the Company or any Subsidiary or Affiliate any right to continued employment or service as a director with
the Company or a Subsidiary or Affiliate, as the case may be, nor shall it interfere in any way with the right of the Company or a Subsidiary or Affiliate to terminate the employment of any of its
employees or service of a director at any time. 

        (d)   Except
as the participant and the Company may otherwise agree, no later than the date as of which an amount first becomes includable in the gross income of the
participant for federal income tax purposes with respect to any award under the Plan, the participant shall pay to the Company, or make arrangements satisfactory to the Committee regarding the payment
of any federal, state, or local taxes of any kind required by law to be withheld with respect to such amount. Unless otherwise determined by the Committee, withholding obligations may be settled with
Stock, including Stock that is part of the award that gives rise to the withholding requirement. The obligations of the Company under the Plan shall be conditional on such payment of arrangements and
the Company and its Subsidiaries or Affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the participant. 

        (e)   The
actual or deemed reinvestment of dividends or dividend equivalents in additional Restricted Stock (or in Deferred Stock or other types of Plan awards) at the time of
any dividend payment shall only be permissible if sufficient shares of Stock are available under Section 3 for such reinvestment (taking into account then outstanding Stock Options. Stock
Purchase Rights, and other Plan awards). 

        (f)    The
Plan and all awards made and actions taken thereunder shall be governed by and construed in accordance with the laws of the State of Delaware. 

Section 16. Term of Plan  

        No Stock Option, Incentive Stock Option, Stock Appreciation Right, Restricted Stock award, Deferred Stock award, Stock Purchase Right, Other Stock-Based Award, or
Performance Award shall be granted pursuant to the Plan on or after the tenth (10th) anniversary of the date of shareholder approval, but awards granted prior to such tenth (10th) anniversary may
extend beyond that date. 

16

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Amended and Restated 1996 Long-Term Incentive Plan Sabre Holdings Corporation As Amended May 14, 2002QuickLinks
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EXHIBIT 10.2  

YAHOO! INC.  

 
  1995 STOCK PLAN
  (AS AMENDED SEPTEMBER 1996, MAY 1999, APRIL 2002 AND APRIL 2003)    
    

        1.    Purposes of the Plan.    The purposes of this 1995 Stock Plan are to attract and retain the best available
personnel for positions of substantial responsibility, to provide additional incentive to Employees and Consultants of the Company and its Subsidiaries and to promote the success of the Company's
business. To accomplish the foregoing, the Plan provides that the Company may grant Options, Indexed Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units and Dividend
Equivalents (each as hereinafter defined). Options granted under the Plan may be incentive stock options (as defined under Section 422 of the Code) or nonstatutory stock options, as determined
by the Administrator at the time of grant of an Option and subject to the applicable provisions of Section 422 of the Code, as amended, and the regulations promulgated thereunder. 

        2.    Definitions.    As used herein, the following definitions shall apply: 

	(a)
	"Administrator"
means the Board or any of its Committees appointed pursuant to Section 4 of the Plan.

	(b)
	"Affiliate"
shall mean an entity (including a partnership or limited liability company) in which the Company, directly or indirectly through any subsidiary, owns an equity interest,
but which entity is not a Subsidiary.

	(c)
	"Applicable
Laws" has the meaning set forth in Section 4(a) of the Plan.

	(d)
	"Award"
means an award of Options, Indexed Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units or Dividend Equivalents (each as defined below).

	(e)
	"Board"
means the Board of Directors of the Company.

	(f)
	"Cause"
shall have such meaning as determined by the Administrator or as provided in the applicable award agreement. Determination of Cause shall be made by the Administrator in its
sole discretion.

	(g)
	"Code"
means the Internal Revenue Code of 1986, as amended.

	(h)
	"Committee"
means the Committee appointed by the Board of Directors in accordance with Section 4(a) of the Plan.

	(i)
	"Common
Stock" means the common stock of the Company.

	(j)
	"Company"
means Yahoo! Inc., a California corporation.

	(k)
	"Consultant"
means any person, but not including a Non-Employee Director, who is engaged by the Company or any Parent, Subsidiary or Affiliate to render services and is
compensated for such services.

	(l)
	"Continuous
Status as an Employee or Consultant" means the absence of any interruption or termination of service as an Employee or Consultant. Continuous Status as an Employee or
Consultant shall not be considered interrupted in the case of: (i) sick leave; (ii) military leave; (iii) any other leave of absence approved by the Administrator, provided that
such leave is for a period of not more than ninety (90) days, unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant
to Company policy adopted from time to time; or (iv) in the case of transfers between locations of the Company or between the Company, its Subsidiaries or their respective successors. For
purposes of this Plan, a 

1

 

change
in status from an Employee to a Consultant or from a Consultant to an Employee will not constitute an interruption of Continuous Status as an Employee or Consultant. 

	(m)
	"Director"
means a member of the Board.

	(n)
	"Dividend
Equivalent" means a right granted under Section 14 of the Plan to receive Shares as dividends paid with respect to a specified number of Shares.

	(o)
	"Employee"
means any person, including Named Executives, Officers and Directors, employed by the Company or any Parent, Subsidiary or Affiliate of the Company, with the status of
employment determined based upon such minimum number of hours or periods worked as shall be determined by the Administrator in its discretion, subject to any requirements of the Code. The payment of a
director's fee by the Company to a Director shall not be sufficient to constitute "employment" of the Director by the Company.

	(p)
	"Exchange
Act" means the Securities Exchange Act of 1934, as amended.

	(q)
	"Fair
Market Value" means, as of any date, the fair market value of Common Stock determined as follows:

	(i)
	If
the Common Stock is listed on any established stock exchange or a national market system including without limitation the National Market of the National Association
of Securities Dealers, Inc. Automated Quotation ("Nasdaq") System, its Fair Market Value shall be the closing sales price for such stock as quoted on such system on the date of determination
(if for a given day no sales were reported, the closing bid on that day shall be used), as such price is reported in The Wall Street Journal or such other source as the Administrator deems reliable;

	(ii)
	If
the Common Stock is quoted on the Nasdaq System (but not on the National Market thereof) or regularly quoted by a recognized securities dealer but selling prices are
not reported, its Fair Market Value shall be the mean between the bid and asked prices for the Common Stock on the date of determination, as reported in The Wall Street Journal or such other source as
the Administrator deems reliable; or

	(iii)
	In
the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Administrator.

	(r)
	"Five
Percent Limit" has the meaning set forth in Section 4(e)(viii) of the Plan.

	(s)
	"Incentive
Stock Option" means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code, as designated in the applicable written
option agreement.

	(t)
	"Indexed
Option" means an Option with an exercise price which either increases by a fixed percentage over time or changes by reference to a published index, as determined by the
Administrator and set forth in the applicable written option agreement.

	(u)
	"Named
Executive" means any individual who, on the last day of the Company's fiscal year, is the chief executive officer of the Company (or is acting in such capacity) or among the
four highest compensated officers of the Company (other than the chief executive officer). Such officer status shall be determined pursuant to the executive compensation disclosure rules under the
Exchange Act.

	(v)
	"Non-Employee
Director" shall mean a Director who is not an Employee.

	(w)
	"Non-Performance
Restricted Stock" has the meaning set forth in Section 11(b) of the Plan. 

2

 

	(x)
	"Nonstatutory
Stock Option" means an Option not intended to qualify as an Incentive Stock Option, as designated in the applicable written option agreement.

	(y)
	"Option"
means a stock option granted pursuant to the Plan and includes an Indexed Option.

	(z)
	"Optioned
Stock" means the Common Stock subject to an Option or Restricted Stock.

	(aa)
	"Optionee"
means an Employee or Consultant who receives an Option or Restricted Stock.

	(bb)
	"Parent"
means a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the Code, or any successor provision.

	(cc)
	"Plan"
means this 1995 Stock Plan.

	(dd)
	"Reporting
Person" means an Officer, Director, or greater than ten percent shareholder of the Company within the meaning of Rule 16a-2 under the Exchange Act, who
is required to file reports pursuant to Rule 16a-3 under the Exchange Act.

	(ee)
	"Restricted
Period" has the meaning set forth in Section 11(b) of the Plan.

	(ff)
	"Restricted
Stock" means shares of Common Stock acquired pursuant to Section 11 of the Plan.

	(gg)
	"Restricted
Stock Pool" has the meaning set forth in Section 3 of the Plan.

	(hh)
	"Restricted
Stock Unit" means the right to receive in cash or Shares the Fair Market Value of a Share of Common Stock granted pursuant to Section 12 of the Plan.

	(ii)
	"Rule 16b-3"
means Rule 16b-3 promulgated under the Exchange Act, as the same may be amended from time to time, or any successor provision.

	(jj)
	"Share"
means a share of the Common Stock, as adjusted in accordance with Section 16 of the Plan.

	(kk)
	"Stock
Appreciation Right" means any right granted under Section 13 of the Plan.

	(ll)
	"Stock
Exchange" means any stock exchange or consolidated stock price reporting system on which prices for the Common Stock are quoted at any given time.

	(mm)
	"Subsidiary"
means a "subsidiary corporation," whether now or hereafter existing, as defined in Section 424(f) of the Code, or any successor provision. 

        3.    Stock Subject to the Plan.    Subject to the provisions of Section 16 of the Plan, the maximum aggregate
number of Shares that may be issued under the Plan is 287,000,000 shares of Common Stock, of which twenty percent (20%) may be issued as Restricted Stock pursuant to grants under the Plan (the
"Restricted Stock Pool.") The Shares may be authorized, but unissued, or reacquired Common Stock. If an Award should expire, become forfeited or become unexercisable for any reason without having been
exercised or nonforfeitable in full, the unpurchased Shares that were subject thereto shall, unless the Plan shall have been terminated, become available for future grant under the Plan. In addition,
any Shares of Common Stock which are retained by the Company upon exercise of an Option or Restricted Stock in order to satisfy the exercise or purchase price for such Option or Restricted Stock or
any withholding taxes due with respect to such exercise shall be treated as not issued and shall continue to be available under the Plan. 

        4.    Administration of the Plan.    

	(a)
	Multiple Administrative Bodies. If permitted by Rule 16b-3 and by the legal requirements relating to the
administration of incentive stock option plans, if any, of applicable securities laws and the Code (collectively the "Applicable Laws"), grants under the Plan may be made by different bodies with
respect to Directors, Officers who are not Directors and Employees or Consultants who are not Reporting Persons. 

3

 

	(b)
	Administration With Respect to Reporting Persons. With respect to grants of Options or Restricted Stock to Employees or Consultants who
are Reporting Persons, grants under the Plan shall be made by (A) the Board, if the Board may make grants under the Plan in compliance with Rule 16b-3, or (B) a
Committee designated by the Board to make grants under the Plan, which committee shall be constituted in such a manner as to permit grants under the Plan to comply with Rule 16b-3,
to qualify grants of Options to Named Executives as performance-based compensation under Section 162(m) of the Code and otherwise so as to satisfy the Applicable Laws.

	(c)
	Administration With Respect to Other Persons. With respect to grants of Options or Restricted Stock to Employees or Consultants who are
not Reporting Persons, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which committee shall be constituted in such a manner as to satisfy the
Applicable Laws.

	(d)
	General. If a Committee has been appointed pursuant to this Section 4, such Committee shall continue to serve in its designated
capacity until otherwise directed by the Board. From time to time the Board may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause) and
appoint new members in substitution therefor, fill vacancies, however caused, and remove all members of the Committee and thereafter directly administer the Plan, all to the extent permitted by the
Applicable Laws, and, in the case of a Committee appointed under subsection (b), to the extent permitted by Rule 16b-3, and to the extent required under Section 162(m) of the
Code to qualify grants of Options to Named Executives as performance-based compensation.

	(e)
	Powers of the Administrator. Subject to the provisions of the Plan and in the case of a Committee, the specific duties delegated by the
Board to such Committee, and subject to the approval of any relevant authorities, including the approval, if required, of any Stock Exchange, the Administrator shall have the authority, in its
discretion:

	(i)
	to
determine the Fair Market Value of the Common Stock, in accordance with Section 2(q) of the Plan;

	(ii)
	to
select the Consultants and Employees to whom Awards may from time to time be granted hereunder;

	(iii)
	to
determine whether and to what extent Options, Indexed Options, Stock Appreciation Rights, Restricted Stock Units, Dividend Equivalents or Restricted Stock or any
combination thereof are granted hereunder;

	(iv)
	to
determine the number of Shares of Common Stock, if any, to be covered by each Award granted hereunder;

	(v)
	to
approve forms of agreement for use under the Plan;

	(vi)
	to
determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder, including, but not limited to, the share price and
any restriction or limitation, the vesting of any Option or the acceleration of vesting or waiver of a forfeiture restructure, based in each case on such factors as the Administrator shall determine,
in its sole discretion;

	(vii)
	to
determine whether and under what circumstances an Option may be settled in cash instead of Common Stock;

	(viii)
	to
reduce the exercise price of any Option to the then current Fair Market Value if the Fair Market Value of the Common Stock covered by such Option shall have
declined since the date the Option was granted; provided, however, that (A) this authority shall extend to no 

4

 

more
than five percent (5%) of the maximum aggregate number of Shares that may be issued under the Plan (the "Five Percent Limit"), which shall be reduced by the number of Shares underlying
outstanding Restricted Stock Awards granted under Section 11(b)(ii) of the Plan, as described therein, and (B) the Administrator may not exercise its authority under this
Section 4(e)(viii) in excess of the Five Percent Limit (as reduced pursuant to Section 11(b)(ii) of the Plan) without prior stockholder approval. 

	(ix)
	to
determine the terms and restrictions applicable to Restricted Stock and the Restricted Stock purchased by exercising such Restricted Stock; and

	(x)
	to
construe and interpret the terms of the Plan and awards granted pursuant to the Plan; and

	(xi)
	in
order to fulfill the purposes of the Plan and without amending the Plan, to modify Awards to participants who are foreign nationals or employed outside of the United
States in order to recognize differences in local law, tax policies or customs.

	(f)
	Effect of Administrator's Decision. All decisions, determinations and interpretations of the Administrator shall be final and binding
on all holders of any Award. 

        5.    Eligibility.    

	(a)
	Recipients of Grants. Awards may be granted to eligible Employees and Consultants; provided, however, that no person subject to the
reporting requirements of Section 16 of the Exchange Act may receive an Award unless such person is employed by or a consultant to the Company or any Parent or Subsidiary. Incentive Stock
Options may be granted only to Employees, provided, however, that Employees of an Affiliate shall be not be eligible to receive Incentive Stock Options. An Employee or Consultant who has been granted
an Option or Restricted Stock may, if he or she is otherwise eligible, be granted additional Options or Restricted Stock.

	(b)
	Type of Option. Each Option shall be designated in the written option agreement as either an Incentive Stock Option or a Nonstatutory
Stock Option. However, notwithstanding such designations, to the extent that the aggregate Fair Market Value of Shares with respect to which Options designated as Incentive Stock Options are
exercisable for the first time by any Optionee during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options shall be treated as
Nonstatutory Stock Options. For purposes of this Section 5(b), Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the
Shares subject to an Incentive Stock Option shall be determined as of the date of the grant of such Option.

	(c)
	No Employment Rights. The Plan shall not confer upon any Optionee any right with respect to continuation of employment or consulting
relationship with the Company, nor shall it interfere in any way with such Optionee's right or the Company's right to terminate his or her employment or consulting relationship at any time, with or
without cause. 

        6.    Term of Plan.    The Plan shall become effective upon the earlier to occur of its adoption by the Board of
Directors or its approval by the shareholders of the Company as described in Section 23 of the Plan. It shall continue in effect until May 16, 2013, unless sooner terminated under
Section 19 of the Plan. 

        7.    Term of Option.    The term of each Option shall be the term stated in the Option Agreement; provided, however,
that the term shall be no more than ten (10) years from the date of grant thereof or such shorter term as may be provided in the Option Agreement and provided further that, in the case of an
Incentive Stock Option granted to an Optionee who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or
any Parent or Subsidiary, the term of the Option shall be five (5) years from the date of grant thereof or such shorter term as may be provided in the written option agreement. 

5

 

        8.    Limitation on Grants to Employees.    Subject to adjustment as provided in this Plan, the maximum number of
Shares which may be subject to Options granted to any one Employee under this Plan for any fiscal year of the Company shall be 15,000,000. 

        9.    Option Exercise Price and Consideration.    

	(a)
	Exercise Price. The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be such price as is
determined by the Board and set forth in the applicable agreement, but shall be subject to the following:

	(i)
	In
the case of an Incentive Stock Option that is:

	(A)
	granted
to an Employee who, at the time of the grant of such Incentive Stock Option, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of
the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant.

	(B)
	granted
to any other Employee, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.

	(ii)
	In
the case of a Nonstatutory Stock Option, other than an Option that is designated as an Indexed Option, the per Share exercise price shall be no less than 100% of the
Fair Market Value per Share on the date of grant. In the case of an Indexed Option, the Administrator shall determine the exercise price of such Indexed Option and the terms and conditions that
affect, if any, any adjustments to the exercise price of such Indexed Option.

	(b)
	Permissible Consideration. The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of
payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant) and may consist entirely of (1) cash,
(2) check, (3) promissory note, (4) other Shares that (x) in the case of Shares acquired upon exercise of an Option, have been owned by the Optionee for more than six
months on the date of surrender or such other period as may be required to avoid a charge to the Company's earnings, and (y) have a Fair Market Value on the date of surrender equal to the
aggregate exercise price of the Shares as to which such Option shall be exercised, (5) to the extent permitted under Applicable Laws, authorization for the Company to retain from the total
number of Shares as to which the Option is exercised that number of Shares having a Fair Market Value on the date of exercise equal to the exercise price for the total number of Shares as to which the
Option is exercised, (6) to the extent permitted under Applicable Laws, delivery of a properly executed exercise notice together with such other documentation as the Administrator and the
broker, if applicable, shall require to effect an exercise of the Option and delivery to the Company of the sale or loan proceeds required to pay the exercise price and any applicable income or
employment taxes, (7) any combination of the foregoing methods of payment, or (9) such other consideration and method of payment for the issuance of Shares to the extent permitted under
Applicable Laws. In making its determination as to the type of consideration to accept, the Administrator shall consider if acceptance of such consideration may be reasonably expected to benefit the
Company. 

        10.    Exercise of Option.    

	(a)
	Procedure for Exercise; Rights as a Shareholder. Any Option granted hereunder shall be exercisable at such times and under such
conditions as determined by the Administrator, and reflected in the written option agreement, which may include vesting requirements and/or performance criteria with respect to the Company and/or the
Optionee. 

        An
Option may not be exercised for a fraction of a Share. 

6

 

        An
Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option by the person entitled to exercise
the Option and the Company has received full payment for the Shares with respect to which the Option is exercised. Full payment may, as authorized by the Board, consist of any consideration and method
of payment allowable under Section 9(b) of the Plan. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company)
of the stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, not withstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly upon exercise of the Option. No adjustment will be made for a dividend or other right for which
the record date is prior to the date the stock certificate is issued, except as provided in Section 16 of the Plan. 

        Exercise
of an Option in any manner shall result in a decrease in the number of Shares that thereafter may be available, both for purposes of the Plan and for sale under the Option, by
the number of Shares as to which the Option is exercised. 

	(b)
	Termination of Employment or Consulting Relationship. Subject to Section 10(c), in the event of termination of an Optionee's
Continuous Status as an Employee or Consultant with the Company, such Optionee may, but only within three (3) months after the date of such termination (or such other period of time as is
determined by the Administrator, but not less than thirty (30) days after the date of such termination and not later than the expiration date of the term of such Option as set forth in the
Option Agreement, with such determination in the case of an Incentive Stock Option being made at the time of grant of the Option and not exceeding three (3) months after the date of such
termination), exercise his or her Option to the extent that the Optionee was entitled to exercise it at the date of such termination. To the extent that Optionee was not entitled to exercise the
Option at the date of such termination, or if Optionee does not exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate. No termination shall be
deemed to occur and this Section 10(b) shall not apply if (I) the Optionee is a Consultant who becomes an Employee; or (ii) the Optionee is an Employee who becomes a Consultant.

	(c)
	Disability of Optionee. Notwithstanding Section 10(b) above, in the event of termination of an Optionee's Continuous Status as
an Employee or Consultant as a result of his or her total and permanent disability (within the meaning of Section 22(e)(3) of the Code), Optionee may, but only within twelve (12) months
from the date of such termination (but in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), exercise the Option to the extent otherwise entitled
to exercise it at the date of such termination. To the extent that Optionee was not entitled to exercise the Option at the date of termination, or if Optionee does not exercise such Option to the
extent so entitled within the time specified herein, the Option shall terminate.

	(d)
	Death of Optionee. In the event of the death of an Optionee during the period of Continuous Status as an Employee or Consultant, or
within thirty (30) days following the termination of the Optionee's Continuous Status as an Employee or Consultant, the Option may be exercised, at any time within twelve (12) months
following the date of death (but in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), by the Optionee's estate or by a person who acquired the
right to exercise the Option by bequest or inheritance, but only to the extent the Optionee was entitled to exercise the Option at the date of death or, if earlier, the date of termination of the
Continuous Status as an Employee or Consultant. To the extent that Optionee was not entitled to exercise the Option at the date of death or termination, as the case may be, or if Optionee does not
exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate. 

7

 

	(e)
	Extension of Exercise Period. Notwithstanding the limitations set forth in Sections 10(b), (c) and (d) above, the
Administrator has full power and authority to extend the period of time for which any Option granted under the Plan is to remain exercisable following termination of an Optionee's Continuous Status as
an Employee or Consultant from the limited period set forth in the written option agreement to such greater period of time as the Administrator shall deem appropriate; provided, however, that in no
event shall such Option be exercisable after the specified expiration date of the Option term.

	(f)
	Rule 16b-3. Options granted to Reporting Persons shall comply with Rule 16b-3 and shall contain
such additional conditions or restrictions as may be required thereunder to qualify for the maximum exemption for Plan transactions.

	(g)
	Buyout Provisions. The Administrator may at any time offer to buy out for a payment in cash or Shares, an Option previously granted,
based on such terms and conditions as the Administrator shall establish and communicate to the Optionee at the time that such offer is made. 

        11.    Restricted Stock.    

	(a)
	Grant of Restricted Stock. Restricted Stock may be issued either alone, in addition to, or in tandem with other Awards granted under
the Plan and/or cash awards made outside of the Plan. After the Administrator determines that it will grant an award of Restricted Stock under the Plan, it shall advise the offeree in writing of the
terms, conditions and restrictions related to the offer, including the Restricted Period (as defined in Section 11(b) below) applicable to such award, the imposition, if any, of any
performance-based condition or other restriction on an award of Restricted Stock, the number of Shares that such person shall be entitled to purchase, the price to be paid, if any, and the time within
which such person must accept such offer, which shall in no event exceed thirty (30) days from the date upon which the Administrator made the determination to grant the Restricted Stock. The
prospective recipient of an Award of Restricted Stock shall not have any rights with respect to any such Award, unless and until such recipient has executed an award agreement, in the form determined
by the Administrator, evidencing the Award. Shares purchased pursuant to the grant of a Restricted Stock shall be referred to herein as "Restricted Stock."

	(b)
	Lapse of Restrictions. With respect to an Award of Restricted Stock, the Administrator shall prescribe in the award agreement, the
period in which such Restricted Stock becomes nonforfeitable (the "Restricted Period").

	(i)
	Subject
to Section 11(b)(ii) below, with respect to an Award of Restricted Stock that becomes non-forfeitable due to the lapse of time
("Non-Performance Restricted Stock"), any such Award shall have a Restricted Period that is at least three (3) years from the date of the award; provided, however, that the
Administrator may provide, in its sole discretion, that upon the termination of such recipient's employment with the Company, any Parent or any Subsidiary, by the Company (or any Parent or any
Subsidiary) without Cause, such Restricted Period shall be deemed to have lapsed and such award of Restricted Stock shall be non-forfeitable on the recipient's termination date. With
respect to an award of Restricted Stock that becomes non-forfeitable due to the satisfaction of certain pre-established performance-based objectives or any condition imposed by
the Administrator other than the lapse of time, the measurement date of whether such performance-based objectives or other conditions have been satisfied shall be a date no earlier than the first
anniversary of the date of the award.

	(ii)
	Notwithstanding
any provision to the contrary, twenty five percent (25%) of the Shares underlying Awards in the Restricted Stock Pool shall be subject to such terms and
conditions, including provisions regarding non-forfeitability, as the Administrator shall, in its 

8

 

sole
discretion, determine. These Awards shall not be subject to the provisions of Section 11(b)(i) above. Notwithstanding the foregoing, the number of Shares underlying outstanding
Awards under this Section 11(b)(ii) plus the number of Shares pursuant to which the Administrator has exercised its authority pursuant to Section 4(e)(viii) of the Plan, without
obtaining prior stockholder approval, may not, in the aggregate exceed the Five Percent Limit. 

	(c)
	Certificates. Each recipient who is granted an Award of Restricted Stock shall be issued a stock certificate in respect of such shares
of Restricted Stock, which certificate shall be registered in the name of the recipient and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to any such
Award; provided that the Company may require that the stock certificates evidencing Restricted Stock granted hereunder be held in the custody of the Company until the restrictions thereon shall have
lapsed, and that, as a condition of any Award of Restricted Stock, the participant shall have delivered a stock power, endorsed in blank, relating to the Shares covered by such Award.

	(d)
	Rights as a Shareholder. Except as otherwise provided in an Award Agreement, the participant shall possess all incidents of ownership
with respect to Shares of Restricted Stock during the Restricted Period, including the right to receive or reinvest dividends with respect to such Shares and to vote such Shares. Certificates for
unrestricted Shares shall be delivered to the participant promptly after, and only after, the Restricted Period shall expire without forfeiture in respect of such Awards of Restricted Stock except as
the Administrator, in its sole discretion, shall otherwise determine.

	(e)
	Nontransferability. During the Restricted Period, the recipient of such award shall not be permitted to sell, transfer, pledge,
hypothecate or assign shares of Restricted Stock awarded under the Plan except by will or the laws of descent and distribution. Any attempt to dispose of any Restricted Stock in contravention of any
such restrictions shall be null and void and without effect.

	(f)
	Other Provisions. The Restricted Stock purchase agreement shall contain such other terms, provisions and conditions not inconsistent
with the Plan as may be determined by the Administrator in its sole discretion. In addition, the provisions of Restricted Stock purchase agreements need not be the same with respect to each purchaser. 

        12.    Restricted Stock Units.    

	(a)
	General. Restricted Stock Units may be issued either alone, in addition to, or in tandem with other Awards granted under the Plan
and/or cash awards made outside of the Plan. After the Administrator determines that it will grant Restricted Stock Units under the Plan, it shall advise the offeree in writing of the terms,
conditions and restrictions related to the offer, including the Restricted Unit Period (as defined in Section 12(b) below) applicable to an award, the imposition, if any, of any
performance-based condition or other restriction on an award, the number of Restricted Stock Units that such person shall be entitled to and the time within which such person must accept such offer,
which shall in no event exceed thirty (30) days from the date upon which the Administrator made the determination to grant the Restricted Stock Units. The offer shall be accepted by execution
of a Restricted Stock Units award agreement in the form determined by the Administrator. 

9

  

	(b)
	Lapse of Restrictions. With respect to an award of Restricted Stock Units, which becomes non-forfeitable due to the lapse
of time, the Administrator shall prescribe in the award agreement, the period in which such Restricted Stock becomes nonforeitable (the "Restricted Unit Period"). Notwithstanding any provision to the
contrary, the Restricted Unit Period shall be a period which is at least three (3) years from the date of the award. With respect to an award of Restricted Stock Unit, which becomes
non-forfeitable due to the satisfaction of certain pre-established performance-based objectives or any other conditions imposed by the Administrator, the measurement date of
whether such performance-based objectives or other conditions have been satisfied shall be a date no earlier than the first anniversary of the date of the award.

	(c)
	Rights as a Stockholder. A recipient who is awarded Restricted Stock Units shall possess no incidents of ownership with respect to such
Units; provided that the award agreement may provide for payments in lieu of dividends to such recipient.

	(d)
	Other Provisions. The Restricted Stock Units award agreement shall contain such other terms, provisions and conditions not inconsistent
with the Plan as may be determined by the Administrator in its sole discretion. In addition, the provisions of Restricted Stock Units award agreements need not be the same with respect to each
purchaser. 

        13.    Stock Appreciation Rights.    

	(a)
	Grant. Subject to the provisions of the Plan, the Administrator shall have sole and complete authority to determine the recipients to
whom Stock Appreciation Rights shall be granted, the number of Shares to be covered by each Stock Appreciation Right award, the grant price thereof and the conditions and limitations applicable to the
exercise thereof. Stock Appreciation Rights may be granted in tandem with another Award, in addition to another Award, or freestanding and unrelated to another Award. Stock Appreciation Rights granted
in tandem with or in addition to an Award may be granted either at the same time as the Award or at a later time. Stock Appreciation Rights shall not be exercisable earlier than six months after the
date of grant.

	(b)
	Exercise and Payment. A Stock Appreciation Right shall entitle the recipient to receive an amount equal to the excess of the Fair
Market Value of a Share on the date of exercise of the Stock Appreciation Right over the grant price thereof. The Administrator shall determine whether a Stock Appreciation Right shall be settled in
cash, Shares or a combination of cash and Shares.

	(c)
	Other Terms and Conditions. Subject to the terms of the Plan and any applicable award agreement, the Administrator shall determine, at
or after the grant of a Stock Appreciation Right, the term, methods of exercise, methods and form of settlement, and any other terms and conditions of any Stock Appreciation Right. Any such
determination by the Administrator may be changed by the Administrator from time-to-time and may govern the exercise of Stock Appreciation Rights granted or exercised prior to
such determination as well as Stock Appreciation Rights granted or exercised thereafter. The Administrator may impose such conditions or restrictions on the exercise of any Stock Appreciation Right as
it shall deem appropriate. 

        14.    Dividend Equivalents.    The Administrator is authorized to grant to eligible Employees and Consultants
Dividend Equivalents, which enable such Employees and Consultants the right to receive Shares as dividends paid with respect to a specified number of Shares. The Administrator may provide, at the date
of grant or thereafter, that Dividend Equivalents shall be paid or distributed when accrued; provided, however, that Dividend Equivalents (other than freestanding Dividend Equivalents) shall be
subject to all conditions and restrictions of the underlying awards to which they relate. Dividend Equivalents may be awarded on a free-standing basis or in connection with another Award,
and may be paid currently or on a deferred basis. 

10

 

        15.    Stock Withholding to Satisfy Withholding Tax Obligations.    At the discretion of the Administrator, Optionees
may satisfy withholding obligations as provided in this paragraph. When an Optionee incurs tax liability in connection with an Option or Restricted Stock, which tax liability is subject to tax
withholding under applicable tax laws, and the Optionee is obligated to pay the Company an amount required to be withheld under applicable tax laws, the Optionee may satisfy the withholding tax
obligation by one or some combination of the following methods: (a) by cash payment, or (b) out of Optionee's current compensation, (c) if permitted by the Administrator, in its
discretion, by surrendering to the Company Shares that (I) in the case of Shares previously acquired from the Company, have been owned by the Optionee for more than six months on the date of
surrender, and (ii) have a fair market value on the date of surrender equal to or less than Optionee's marginal tax rate times the ordinary income recognized, or (d) by electing to have
the Company withhold from the Shares to be issued upon exercise of the Option, or the Shares to be issued in connection with Restricted Stock, if any, that number of Shares having a fair market value
equal to the amount required to be withheld. For this purpose, the fair market value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be
determined (the "Tax Date"). 

        Any
surrender by a Reporting Person of previously owned Shares to satisfy tax withholding obligations arising upon exercise of this Option must comply with the applicable provisions of
Rule 16b-3. 

        All
elections by an Optionee to have Shares withheld to satisfy tax withholding obligations shall be made in writing in a form acceptable to the Administrator and shall be subject to the
following restrictions: 

	(a)
	the
election must be made on or prior to the applicable Tax Date;

	(b)
	once
made, the election shall be irrevocable as to the particular Shares of the Option or Restricted Stock as to which the election is made; and

	(c)
	all
elections shall be subject to the consent or disapproval of the Administrator. 

        In
the event the election to have Shares withheld is made by an Optionee and the Tax Date is deferred under Section 83 of the Code because no election is filed under
Section 83(b) of the Code, the Optionee shall receive the full number of Shares with respect to which the Option or Restricted Stock is exercised but such Optionee shall be unconditionally
obligated to tender back to the Company the proper number of Shares on the Tax Date. 

        16.    Adjustments Upon Changes in Capitalization, Corporate Transactions.    

	(a)
	Changes in Capitalization. Subject to any required action by the shareholders of the Company, (i) the number of shares of Common
Stock covered by each outstanding Award, (ii) the number of shares of Common Stock that have been authorized for issuance under the Plan but as to which no Awards have yet been granted or that
have been returned to the Plan upon cancellation or expiration of an Award or otherwise, (iii) the maximum number of shares of Common Stock for which Awards may be granted to any Employee under
the Plan, (iv) the price per share of Common Stock covered by each such outstanding Award, (v) the number of shares of Common Stock that may be granted in the form of Restricted Stock,
including the number that may be granted that are not subject to Section 11(b)(i) of the Plan, and (vi) the number of shares of Common Stock subject to Options with respect to which the
Administrator may reduce the exercise price, as provided in Section 4(e)(viii) of the Plan, shall be proportionately adjusted for any increase or decrease in the number of issued shares of
Common Stock resulting from a stock split, reverse stock split, stock dividend, combination, recapitalization or reclassification of the Common Stock, or any other increase or decrease in the number
of issued shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have
been "effected without receipt of consideration." Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided 

11

 

herein,
no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to an Award. 

	(b)
	Corporate Transactions. In the event of the proposed dissolution or liquidation of the Company, each Award will terminate immediately
prior to the consummation of such proposed action, unless otherwise provided by the Administrator. Additionally, the Administrator may, in the exercise of its sole discretion in such instances,
declare that any Award shall terminate as of a date fixed by the Administrator and that each Award shall be vested and non-forfeitable and any conditions on each such Award shall lapse, as
to all or any part of such Award, including Shares as to which the Award would not otherwise be exercisable or non-forfeitable. In the event of a proposed sale of all or substantially all
of the assets of the Company, or the merger of the Company with or into another corporation, each Award shall be assumed or an equivalent Award shall be substituted by such successor corporation or a
parent or subsidiary of such successor corporation, unless the Administrator determines, in the exercise of its sole discretion and in lieu of such assumption or substitution, that the Award shall be
vested and non-forfeitable and any conditions on each such Award shall lapse, as to all or any part of such Award, including Shares as to which the Award would not otherwise be exercisable
or non-forfeitable. If the Administrator makes an Award exercisable or non-forfeitable in lieu of assumption or substitution in the event of a merger or sale of assets, the
Administrator shall notify the recipient that such Award shall be exercisable for a period of thirty (30) days from the date of such notice, and thereafter will terminate upon the expiration of
such period. 

        17.    Non-transferability of Awards.    An Award may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of descent or distribution; provided, however, that the Administrator may, in its discretion, grant transferable
Nonstatutory Stock Options pursuant to option agreements specifying (i) the manner in which such Nonstatutory Stock Options are transferable and (ii) that any such transfer shall be
subject to the Applicable Laws. Except as otherwise provided by the Administrator, an Award may only be exercised or purchased during the lifetime of the recipient of the Award or a transferee of a
Nonstatutory Stock Option as permitted by this Section 17. 

        18.    Time of Granting of an Award.    The date of grant of an Award shall, for all purposes, be the date on which
the Administrator makes the determination granting such Award, or such other date as is determined by the Board. Notice of the determination shall be given to each Employee or Consultant to whom an
Award is so granted within a reasonable time after the date of such grant. 

        19.    Amendment and Termination of the Plan.    

	(a)
	Amendment and Termination. The Board may amend, alter, suspend, discontinue, or terminate the Plan or any portion thereof at any time;
provided, that no such amendment, alteration, suspension, discontinuation or termination shall be made without stockholder approval if such approval is necessary to comply with any tax, securities or
regulatory law or requirement with which the Board intends the Plan to comply or if such amendment constitutes a "material amendment." For purposes of the Plan, a "material amendment" shall mean an
amendment that (i) materially increases the benefits accruing to participants under the Plan, (ii) materially increases the number of securities that may be issued under the Plan, or
(iii) materially modifies the requirements for participation in the Plan.

	(b)
	Effect of Amendment or Termination. Notwithstanding the foregoing, any such amendment or termination of the Plan shall not affect
Options already granted and such Options shall remain in full force and effect as if this Plan had not been amended or terminated, unless mutually agreed otherwise between the Optionee and the Board,
which agreement must be in writing and signed by the Optionee and the Company. 

12

 

        20.    Conditions Upon Issuance of Shares.    Shares shall not be issued pursuant to the exercise of an Award unless
the exercise of such Award and the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as
amended, the Exchange Act, the rules and regulations promulgated thereunder, and the requirements of any Stock Exchange. 

        21.    Reservation of Shares.    The Company, during the term of this Plan, will at all times reserve and keep
available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or
sell such Shares as to which such requisite authority shall not have been obtained. 

        22.    Agreements.    Awards shall be evidenced by written agreements in such form as the Administrator shall approve
from time to time. 

        23.    Shareholder Approval.    

        Continuance
of the Plan shall be subject to approval by the shareholders of the Company within twelve (12) months before or after the date the Plan is adopted. Such shareholder
approval shall be obtained in the manner and to the degree required under applicable federal and state law and the rules of any stock exchange upon which the Shares are listed. 

        24.    Unfunded Status of Plan.    

        The
Plan is intended to constitute an "unfunded" plan for incentive compensation. With respect to any payments not yet made to a participant by the Company, nothing contained herein
shall give any such participant any rights that are greater than those of a general creditor of the Company. 

        25.    Governing Law.    

        The
Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of Delaware, without giving effect to the conflict of laws principles
thereof. 

13

 
 

YAHOO! INC.
  STOCK OPTION AGREEMENT    
    

        1.    Grant of Option.    Yahoo! Inc., a Delaware corporation (the "Company"), hereby grants to the Optionee
named in the Notice of Grant (the "Optionee"), an option (the "Option") to purchase the total number of shares of Common Stock (the "Shares") set forth in the Notice of Grant, at the exercise price
per share set forth in the Notice of Grant (the "Exercise Price") subject to the terms, definitions and provisions of the 1995 Stock Plan (the "Plan") adopted by the Company, which is incorporated in
this Agreement by reference. In the event of a conflict between the terms of the Plan and the terms of this Agreement, the terms of the Plan shall govern. Unless otherwise defined in this Agreement,
the terms used in this Agreement shall have the meanings defined in the Plan. 

        If
designated an Incentive Stock Option in the Notice of Grant, this Option is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code. 

        2.    Exercise of Option.    This Option shall be exercisable during its term in accordance with the Exercise Schedule
set out in the Notice of Grant and with the provisions of Sections 9 and 10 of the Plan as follows: 

	(i)
	Right to Exercise.

        (a)   This
Option may not be exercised for a fraction of a share. 

        (b)   In
the event of Optionee's death, disability or other termination of employment, the exercisability of the Option is governed by Sections 6, 7 and 8 below, subject to
the limitation contained in Section 2(i)(c) and (d). 

        (c)   In
no event may this Option be exercised after the date of expiration of the term of this Option as set forth in the Notice of Grant. 

        (d)   If
designated an Incentive Stock in the Notice of Grant, in the event that this Option becomes exercisable at a time or times which, when this Option is aggregated with
all other incentive stock options granted to Optionee by the Company or any Parent or Subsidiary, would result in Shares having an aggregate fair market value (determined for each Share as of the Date
of Grant of the option covering such Share) in excess of $100,000 becoming first available for purchase upon exercise of one or more incentive stock options during any calendar year, the amount in
excess of $100,000 shall be treated as a Nonstatutory Stock Option, pursuant to Section 5 of the Plan. 

	(ii)
	Method of Exercise.

        (a)   This
Option shall be exercisable by delivering notice to the Company or a broker designated by the Company in such form and through such delivery method as shall be
acceptable to the Company (including in the form attached as Exhibit A or such other form as may from time to time be approved by the Administrator) or the designated broker, as appropriate.
The notice shall specify the election to exercise the Option and the number of Shares in respect of which the Option is being exercised, shall include such other representations and agreements as to
the holder's investment intent with respect to such shares of Common Stock as may be required by the Company pursuant to the provisions of the Plan and applicable law, and shall be accompanied by
payment of the Exercise Price. This Option shall be deemed to be exercised upon receipt by the Company or the designated broker of such notice accompanied by the Exercise Price. 

        (b)   As
a condition to the exercise of this Option, the Optionee agrees to make adequate provision for federal, state or other tax withholding obligations, if any, which
arise upon the exercise of the Option or disposition of Shares, whether by withholding, direct payment to the Company, or otherwise. 

        (c)   No
Shares will be issued pursuant to the exercise of an Option unless such issuance and such exercise shall comply with all relevant provisions of law and the
requirements of any stock 

 

exchange
upon which the Shares may then be listed. Assuming such compliance, for income tax purposes the Shares shall be considered transferred to the Optionee on the date on which the Option is
exercised with respect to such Shares. 

        3.    Optionee's Representations.    In the event the Shares purchasable pursuant to the exercise of this Option have
not been registered under the Securities Act of 1933, as amended, at the time this Option is exercised, Optionee shall, if required by the Company, concurrently with the exercise of all or any portion
of this Option, deliver to the Company an investment representation statement in customary form, a copy of which is available for Optionee's review from the Company upon request. 

        4.    Method of Payment.    Payment of the Exercise Price shall be by any of the following, or a combination of the
following, at the election of the Optionee: (i) cash; (ii) check; (iii) surrender of other shares of Common Stock of the Company 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 Shares as to which said Option shall be exercised; or (iv) if there is a public market for the Shares and they are registered under the Securities
Act of 1933, as amended, 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. 

        5.    Restrictions on Exercise.    This Option may not be exercised until such time as the Plan has been approved by
the shareholders of the Company, or if the issuance of such Shares upon such exercise or the method of payment of consideration for such shares would constitute a violation of any applicable federal
or state securities or other law or regulation, including any rule under Part 207 of Title 12 of the Code of Federal Regulations ("Regulation G") as promulgated by the Federal Reserve Board. As
a condition to the exercise of this Option, the Company may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation. 

        6.    Termination of Relationship.    In the event of termination of Optionee's Continuous Status as an Employee or
Consultant, Optionee may, to the extent otherwise so entitled at the date of such termination (the "Termination Date"), exercise this Option during the Termination Period set out in the Notice of
Grant. To the extent that Optionee was not entitled to exercise this Option at the date of such termination, or if Optionee does not exercise this Option within the time specified in the Notice of
Grant, the Option shall terminate. Further, to the extent allowed by applicable law, if Optionee is indebted to the Company on the date of termination, Optionee's right to exercise this Option shall
be suspended until such time as Optionee satisfies in full any such indebtedness. 

        7.    Disability of Optionee.    Notwithstanding the provisions of Section 6 above, in the event of termination
of Optionee's Continuous Status as an Employee or Consultant as a result of total and permanent disability (as defined in Section 22(e)(3) of the Code), Optionee may, but only within twelve
(12) months from the date of termination of employment (but in no event later than the date of expiration of the term of this Option as set forth in Section 10 below), exercise the
Option to the extent otherwise so entitled at the date of such termination. To the extent that Optionee was not entitled to exercise the Option at the date of termination, or if Optionee does not
exercise such Option (to the extent otherwise so entitled) within the time specified in this Agreement, the Option shall terminate. 

        8.    Death of Optionee.    In the event of the death of Optionee: 

	(i)
	during
the term of this Option and while an Employee or Consultant of the Company and having been in Continuous Status as
an Employee or Consultant since the date of grant of the Option, the Option may be exercised, at any time within six (6) months following the date of death (but in no event later than the date
of expiration of the term of this Option as set forth in Section 10 below), by Optionee's estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only
to the extent of the right to exercise 

2

 

that
would have accrued had Optionee continued living and remained in Continuous Status as an Employee or Consultant six (6) months after the date of death, subject to the limitation contained
in Section 2(i)(d) above in the case of an Incentive Stock Option; or 

	(ii)
	within
thirty (30) days after the termination of Optionee's Continuous Status as an Employee or Consultant, the Option may be exercised, at any time within six
(6) months following the date of death but in no event later than the date of expiration of the term of this Option as set forth in Section 10 below), by Optionee's estate or by a person
who acquired the right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that had accrued at the date of termination. 

        9.    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. The designation of a beneficiary does not constitute a transfer. An Option may be exercised during the lifetime of Optionee only by the Optionee or a
transferee permitted by this section. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee. 

        10.    Term of Option.    This Option may be exercised only within the term set out in the Notice of Grant, and may be
exercised during such term only in accordance with the Plan and the terms of this Option. 

        11.    No Additional Employment Rights.    Optionee understands and agrees that the vesting of Shares pursuant to the
Exercise Schedule is earned only by continuing as an Employee or Consultant at the will of the Company (not through the act of being hired, being granted this Option or acquiring Shares under this
Agreement). Optionee further acknowledges and agrees that nothing in this Agreement, nor in the Plan which is incorporated in this Agreement by reference, shall confer upon Optionee any right with
respect to continuation as an Employee or Consultant with the Company, nor shall it interfere in any way with his or her right or the Company's right to terminate his or her employment or consulting
relationship at any time, with or without cause. 

        12.    Tax Consequences.    Set forth below is a brief summary as of the date of this Option of some of the federal
tax consequences of exercise of this Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX
ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES. 

        (i)    Exercise of Incentive Stock Option.    If this Option qualifies as an incentive stock option, there will be no
regular federal income tax liability upon the exercise of the Option, although the excess, if any, of the fair market value of the Shares on the date of exercise over the Exercise Price will be an
item of alternative minimum taxable income which could result in the Optionee being subject to the alternative minimum tax in the year of exercise. 

        (ii)    Exercise of Nonstatutory Stock Option.    If this Option does not qualify as an incentive stock option, it
will be treated for tax purposes as a nonstatutory stock option. As a result, there may be a regular federal income tax liability upon the exercise of the Option. 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 Shares on the date of exercise over the Exercise Price. In
addition, the Company will be required to withhold from Optionee's compensation or collect from Optionee and pay to the applicable taxing authorities an amount equal to a percentage of this
compensation income at the time of exercise. 

        (iii)    Disposition of Shares.    In the case of an nonstatutory stock option, if Shares are held for at least one
year, any gain realized on disposition of the Shares will be treated as long-term capital gain for federal income tax purposes. In the case of an incentive stock option, if Shares
transferred pursuant to the Option are held for at least one year after exercise and are disposed 

3

 

of
at least two years after the Date of Grant, any gain realized on disposition of the Shares will also be treated as long-term capital gain for federal income tax purposes. If Shares
purchased under an incentive stock option are disposed of within either of such periods, any gain realized on such disposition will be treated as compensation income (taxable at ordinary income rates)
to the extent of the excess, if any, of the lesser of (a) fair market value of the Shares on the date of exercise, or (b) the sales proceeds, over the Exercise Price. 

        (iv)    Notice of Disqualifying Disposition of Incentive Stock Option Shares.    If the Option granted to Optionee in
this Agreement is an incentive stock option, and if Optionee sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (a) the date two years after
the Date of Grant, or (b) the date one year after transfer of such Shares to the Optionee upon exercise of the incentive stock option, the Optionee shall notify the Company in writing within
thirty (30) days after the date of any such disposition. Optionee agrees that Optionee may be subject to income tax
withholding by the Company on the compensation income recognized by the Optionee from the early disposition by payment in cash or out of the current earnings paid to the Optionee. 

        13.    Tax Withholding.    Optionee understands that, upon exercising a Nonstatutory Stock Option, he or she will
recognize income for tax purposes in an amount equal to the excess of the then fair market value of the Shares over the exercise price. However, the timing of this income recognition may be deferred
for up to six months if Optionee is subject to Section 16 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). If the Optionee is an employee, the Company will be required
to withhold from Optionee's compensation, or collect from Optionee and pay to the applicable taxing authorities, an amount equal to a percentage of this compensation income. Additionally, the Optionee
may at some point be required to satisfy tax withholding obligations with respect to the disqualifying disposition of an Incentive Stock Option. The Optionee shall satisfy his or her tax withholding
obligation arising upon the exercise of this Option by one or some combination of the following methods: (i) by cash payment, or (ii) out of Optionee's current compensation, or
(iii) if permitted by the Administrator, in its discretion, by surrendering to the Company Shares which (a) in the case of Shares previously acquired from the Company, have been owned by
the Optionee for more than six months on the date of surrender, and (b) have a fair market value on the date of surrender equal to the amount required to be withheld, or (iv) by electing
to have the Company withhold from the Shares to be issued upon exercise of the Option that number of Shares having a fair market value equal to the amount required to be withheld. For this purpose,
the fair market value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined (the "Tax Date"). 

        If
the Optionee is subject to Section 16 of the Exchange Act (an "Insider"), any surrender of previously owned Shares to satisfy tax withholding obligations arising upon exercise
of this Option must comply with the applicable provisions of Rule 16b-3 promulgated under the Exchange Act ("Rule 16b-3") and shall be subject to such additional
conditions or restrictions as may be required thereunder to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions. 

        All
elections by an Optionee to have Shares withheld to satisfy tax withholding obligations shall be made in writing in a form acceptable to the Administrator and shall be subject to the
following restrictions: 

	(i)
	the
election must be made on or prior to the applicable Tax Date;

	(ii)
	once
made, the election shall be irrevocable as to the particular Shares of the Option as to which the election is made;

	(iii)
	all
elections shall be subject to the consent or disapproval of the Administrator,

	(iv)
	if
the Optionee is an Insider, the election must comply with the applicable provisions of Rule 16b-3 and shall be subject to such additional
conditions or restrictions as may be 

4

 

required
thereunder to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions. 

        14.    Signature.    This Stock Option Agreement shall be deemed executed by the Company and the Optionee upon
execution by such parties of the Notice of Grant attached to this Stock Option Agreement. 

5

  

 
 

EXHIBIT A
  NOTICE OF EXERCISE    
    

	To:	 	Yahoo! Inc.
	Attn:	 	Chief Financial Officer
	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 1995 Stock Plan, as amended, and the Stock Option Agreement attached, as follows: 

	

 	

 
	

Number of Shares:	

 
	 	

	

Vesting Commencement Date:	

 
	 	

	

Date of Purchase:	

 
	 	

	

Purchase Price:	

 
	 	

	

Social Security No:	

 
	 	

	

 	

 	

 
	 	 The shares should be issued as follows:	 
	 	 	 	
 Name:	

 	

 
	 	
	 
	 	 	 	
 Address:	

 	

 
	 	
	 

	

 	
 	

Signed:	

 
	 	 	 	

	

 	
 	

Date:	

 
	 	 	 	

6

  

 
 

YAHOO! INC.
  1995 STOCK PLAN
  (AS AMENDED SEPTEMBER 1996, MAY 1999, APRIL 2002 AND APRIL 2003)
  RESTRICTED STOCK AWARD AGREEMENT    
    

        THIS RESTRICTED STOCK AWARD AGREEMENT, (the "Agreement"), dated as
of                        , 200    (the "Date of Grant"), is made by and between
Yahoo! Inc., a Delaware corporation (the "Company"), and                        , an employee of the Company, a Parent, a
Subsidiary or an Affiliate (the "Grantee"). 

        WHEREAS,
the Company has adopted the Yahoo! Inc. 1995 Stock Plan, as amended (the "Plan"), pursuant to which the Company may grant Restricted Stock; 

        WHEREAS,
the Company desires to grant to the Grantee the number of shares of Restricted Stock provided for herein; 

        NOW,
THEREFORE, in consideration of the recitals and the mutual agreements herein contained, the parties hereto agree as follows: 

Section 1.  Grant of Restricted Stock Award

        (a)    Grant of Restricted Stock.    The Company hereby grants to the
Grantee                        shares of Restricted
Stock (the "Award") on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan. 

        (b)    Incorporation of Plan; Capitalized Terms.    The provisions of the Plan are hereby incorporated herein by
reference. Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any capitalized terms not otherwise defined in this
Agreement shall have the definitions set forth in the Plan. The Administrator shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations
thereunder, and its decision shall be binding and conclusive upon the Grantee and his/her legal representative in respect of any questions arising under the Plan or this Agreement. 

Section 2.  Terms and Conditions of Award

        The
grant of Restricted Stock provided in Section 1(a) shall be subject to the following terms, conditions and restrictions: 

        (a)    Ownership of Shares.    Subject to the restrictions set forth in the Plan and this Agreement, the Grantee shall
possess all incidents of ownership of the Restricted Stock granted hereunder, including the right to receive or reinvest dividends with respect to such Restricted Stock and the right to vote such
Restricted Stock. 

        (b)    Restrictions.    Restricted Stock 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, during the Restricted Period. Any attempt to dispose of any Restricted Stock in contravention of the
above restriction shall be null and void and without effect. 

        (c)    Certificate; Restrictive Legend.    The Grantee agrees that any certificate issued for Restricted Stock prior
to the lapse of any outstanding restrictions relating thereto shall be inscribed with the following legend: 

This
certificate and the shares of stock represented hereby are subject to the terms and conditions, including forfeiture provisions and restrictions against transfer (the "Restrictions"), contained
in the Yahoo! Inc. 1995 Stock Plan, as amended (the "Plan") and an agreement entered into between the registered owner and the Company (the "Agreement"). Any attempt to 

1

 

dispose
of these shares in contravention of the Restrictions, including by way of sale, assignment, transfer, pledge, hypothecation or otherwise, shall be null and void and without effect. 

        (d)    Lapse of Restrictions.    Except as may otherwise be provided herein: 

	(i)
	[the
restrictions on transfer set forth in Section 2(b) shall lapse with respect to                        shares of Restricted
Stock subject to the Award on
the            anniversary of the Date of Grant; and]

	

	[(ii) the
restrictions on transfer set forth in Section 2(b) shall lapse with respect to the remaining                        shares of
Restricted Stock
subject to the Award (the "Performance Based Restricted Stock Award") upon the satisfaction of the performance based objectives and conditions set forth on Exhibit A hereto. Notwithstanding
anything to the contrary in this Section 2(d)(ii), in no event shall any such restrictions lapse prior to the first anniversary of the Date of Grant.] 

        Upon
the lapse of restrictions relating to Restricted Stock, the Company shall issue to the Grantee or the Grantee's personal representative a stock certificate representing a number of
shares of Common Stock, free of the restrictive legend described in Section 2(c), equal to the number of shares of Restricted Stock with respect to which such restrictions have lapsed. If
certificates representing such Restricted Stock shall have theretofore been delivered to the Grantee, such certificates shall be returned to the Company, complete with any necessary signatures or
instruments of transfer prior to the issuance by the Company of such unlegended shares of Common Stock. 

        (e)    Termination of Employment.    Notwithstanding Section 2(b), in the event of the termination of the
Grantee's employment or service with the Company, Parent, Subsidiary or any Affiliate for any reason prior to the lapsing of restrictions in accordance with Section 2(d) with respect to any
portion of the Restricted Stock granted hereunder, such portion of the Restricted Stock held by the Grantee shall be automatically forfeited by the Grantee as of the date of termination. 

        Restricted
Stock forfeited pursuant to this Section 2(e) shall be transferred to, and reacquired by, the Company without payment of any consideration by the Company, and neither
the Grantee nor any of the Grantee's successors, heirs, assigns or personal representatives shall thereafter have any further rights or interests in such shares or certificates. If certificates
containing restrictive legends shall have theretofore been delivered to the Grantee (or his/her legatees or personal representative), such certificates shall be returned to the Company, complete with
any necessary signatures or instruments of transfer. 

        (f)    Corporate Transactions.    The following provisions shall apply to the corporate transactions described below: 

	(i)
	In
the event of a proposed dissolution or liquidation of the Company, the Award will terminate and be forfeited immediately prior to the consummation of such proposed
transaction, unless otherwise provided by the Administrator.

	(ii)
	In
the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation, the Award shall
be assumed or substituted with an equivalent award by such successor corporation, parent or subsidiary of such successor corporation. 

        The
Administrator may determine, in the exercise of its sole discretion, that in lieu of such assumption or substitution, the Award shall be vested and non-forfeitable and
any conditions or restrictions on the Award shall lapse, as to all or any part of the Award, including Shares as to which the Award would not otherwise be non-forfeitable. 

        (g)    Income Taxes.    The Grantee shall pay to the Company promptly upon request, and in any event at the time the
Grantee recognizes taxable income in respect of the Restricted Stock (or, if the Grantee makes an election under Section 83(b) of the Code, in connection with such grant), an amount equal to
the 

2

 

taxes
the Company determines it is required to withhold under applicable tax laws with respect to the Restricted Stock. Such payment may be made by one or some combination of the following methods:
(i) a cash payment, or (ii) out of the Grantee's current compensation. 

Section 3.
Miscellaneous

        (a)    Notices.    Any and all notices, designations, consents, offers, acceptances and any other communications
provided for herein shall be given in writing and shall be delivered either personally or by registered or certified mail, postage prepaid, which shall be addressed, in the case of the Company to both
the Chief Financial Officer and the General Counsel of the Company at the principal office of the Company and, in the case of the Grantee, to the Grantee's address appearing on the books of the
Company or to the Grantee's residence or to such other address as may be designated in writing by the Grantee. 

        (b)    No Right to Continued Employment.    Nothing in the Plan or in this Agreement shall confer upon the Grantee any
right to continue in the employ of the Company, a Parent, a Subsidiary or any Affiliate or shall interfere with or restrict in any way the right of the Company, Parent, Subsidiary or any Affiliate,
which is hereby expressly reserved, to remove, terminate or discharge the Grantee at any time for any reason whatsoever, with or without Cause. 

        (c)    Bound by Plan.    By signing this Agreement, the Grantee acknowledges that he/she has received a copy of the
Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan. 

        (d)    Successors.    The terms of this Agreement shall be binding upon and inure to the benefit of the Company, its
successors and assigns, and of the Grantee and the beneficiaries, executors, administrators, heirs and successors of the Grantee. 

        (e)    Invalid Provision.    The invalidity or unenforceability of any particular provision thereof shall not affect
the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision had been omitted. 

        (f)    Modifications.    No change, modification or waiver of any provision of this Agreement shall be valid unless
the same be in writing and signed by the parties hereto. 

        (g)    Entire Agreement.    This Agreement and the Plan contain the entire agreement and understanding of the parties
hereto with respect to the subject matter contained herein and therein and supersede all prior communications, representations and negotiations in respect thereto. 

        (h)    Governing Law.    This Agreement and the rights of the Grantee hereunder shall be construed and determined in
accordance with the laws of the State of Delaware. 

        (i)    Headings.    The headings of the Sections hereof are provided for convenience only and are not to serve as a
basis for interpretation or construction, and shall not constitute a part, of this Agreement. 

        (j)    Counterparts.    This Agreement may be executed in counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument. 

3

 

        IN
WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of the            day
of                        , 20    . 

	 	 	YAHOO! INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Its:	 	 
	 	 	 	 	

	

 	
 	

Signature:	
 	

 
	 	 	 	 	

	

 	
 	

Printed Name:	
 	

 
	 	 	 	 	

	

 	
 	

Address:	
 	

 
	 	 	 	 	

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1995 STOCK PLAN (AS AMENDED SEPTEMBER 1996, MAY 1999, APRIL 2002 AND APRIL 2003)

YAHOO! INC. STOCK OPTION AGREEMENT

EXHIBIT A NOTICE OF EXERCISE

YAHOO! INC. 1995 STOCK PLAN (AS AMENDED SEPTEMBER 1996, MAY 1999, APRIL 2002 AND APRIL 2003) RESTRICTED STOCK AWARD AGREEMENT

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