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EXHIBIT 10.3(A)

YAHOO! INC.

AMENDED AND RESTATED

1996 EMPLOYEE STOCK PURCHASE PLAN

(as amended and restated on February 1, 2008)

The following constitute the provisions of the Amended and Restated 1996 Employee Stock Purchase
Plan of Yahoo! Inc., as amended and restated February 1, 2008. This version of the Plan is
effective on and after May 11, 2008. For Offering Periods (as defined below) under the Plan ending
on or before May 10, 2008, refer to the version of the Plan as in effect for the applicable
Offering Period.

	1.	 	Purpose. The purpose of the Plan is to provide employees of the Company and its
Designated Subsidiaries with an opportunity to purchase Common Stock of the Company. It is
the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan”
under Section 423 of the Internal Revenue Code of 1986, as amended. The provisions of the
Plan shall, accordingly, be construed so as to extend and limit participation in a manner
consistent with the requirements of that section of the Code.
	 
	2.	 	Definitions.

	 	(a)	 	“Board” shall mean the Board of Directors of the Company.
	 
	 	(b)	 	“Code” shall mean the Internal Revenue Code of 1986, as amended.
	 
	 	(c)	 	“Common Stock” shall mean the Common Stock of the Company.
	 
	 	(d)	 	“Company” shall mean Yahoo! Inc., a Delaware corporation.
	 
	 	(e)	 	“Compensation” shall mean the total compensation paid to an Employee,
including all salary, wages (including amounts elected to be deferred by the Employee,
that would otherwise have been paid, under any cash or deferred arrangement or other
deferred compensation program established by the Company or the Employer), overtime
pay, commissions, bonuses, and other remuneration paid directly to the Employee, but
excluding referral and hiring bonuses, profit sharing, the cost of employee benefits
paid for by the Company or the Employer, education, tuition or other similar
reimbursements, imputed income arising under any Company group insurance or benefit
program, traveling expenses, business and moving expense reimbursements, income
received in connection with stock options, restricted stock grants, or other equity
based awards, contributions made by the Company or the Employer under any employee
benefit plan, and similar items of compensation.
	 
	 	(f)	 	“Continuous Status as an Employee” shall mean the absence of any
interruption or termination of service as an Employee. Continuous Status as an
Employee shall not be considered interrupted in the case of a leave of absence agreed
to in writing by the Company or the Employer, provided that such leave is for a period

 

 

	 	 	 	of not more than 90 days or reemployment upon the expiration of such leave is
guaranteed by contract, statute or as a matter of local law.

	 	(g)	 	“Contributions” shall mean all amounts credited to the account of a
participant pursuant to the Plan.
	 
	 	(h)	 	“Designated Subsidiaries” shall mean the Subsidiaries which have been
designated by the Board, or a committee named by the Board, from time to time in its
sole discretion as eligible to participate in the Plan.
	 
	 	(i)	 	“Employee” shall mean any person, including an Officer, who is
customarily employed for at least twenty (20) hours per week and more than five (5)
months in a calendar year by the Company or one of its Designated Subsidiaries,
provided that, in certain jurisdictions outside the United States, the term “Employee”
may, if so provided by the Company in writing, also include a person employed for less
than twenty (20) hours per week or less than five (5) months in a calendar year if
such person must be permitted to participate in the Plan pursuant to local laws (as
determined by the Company).
	 
	 	(j)	 	“Employer” shall mean the Designated Subsidiary that employs a
participant, if the employer is not the Company.
	 
	 	(k)	 	“Exchange Act” shall mean the U.S. Securities Exchange Act of 1934,
as amended.
	 
	 	(l)	 	“Fair Market Value” shall have the meaning set forth in Section 7(b).
	 
	 	(m)	 	“Offering Date” shall mean the first business day of each Offering
Period of the Plan, except that in the case of an individual who becomes an eligible
Employee or who begins to participate in an Offering Period after the first business
day of an Offering Period, the term “Offering Date” with respect to such individual
means the first business day of the first Purchase Period in which such individual
participates within the Offering Period. Options granted after the first business day
of an Offering Period will be subject to the same terms and conditions as the options
granted on the first business day of such Offering Period except that they will have a
different grant date (and thus, potentially, a different Purchase Price) and, because
they expire at the same time as the options granted on the first business day of such
Offering Period, a shorter term.
	 
	 	(n)	 	“Offering Period” shall have the meaning set forth in Section 4(a).
	 
	 	(o)	 	“Officer” shall mean a person who is an officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.
	 
	 	(p)	 	“Parent” shall mean any corporation (other than the Company),
domestic or foreign, in an unbroken chain of corporations ending with the Company if,
on an Offering Date, each corporation (other than the Company) owns stock possessing
50% or more of the total combined voting power or all classes of stock in one or more
of the other corporations in the chain, as described in Section 424(e) of the Code.

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	 	(q)	 	“Plan” shall mean this Employee Stock Purchase Plan, as amended from
time to time.
	 
	 	(r)	 	“Purchase Date” shall mean the last business day of each Purchase
Period.
	 
	 	(s)	 	“Purchase Period” shall have the meaning set forth in Section 4(b).
	 
	 	(t)	 	“Purchase Price” shall mean, with respect to any Purchase Period, an
amount equal to 85% of the Fair Market Value of a Share of Common Stock on the
Offering Date of the Offering Period in which such Purchase Period occurs or on the
Purchase Date, whichever is lower; provided however that in the event (i) of any
increase in the number of Shares available for issuance under the Plan as a result of
a stockholder-approved amendment to the Plan, and (ii) all or a portion of such
additional Shares are to be issued with respect to an Offering Period that is underway
at the time of such increase (“Additional Shares”), and (iii) the Fair Market
Value of a Share of Common Stock on the date of such stockholder approval (the
“Approval Date Fair Market Value”) is higher than the Fair Market Value on the
Offering Date for any such Offering Period, then in such instance the Purchase Price
with respect to Additional Shares shall be 85% of the Approval Date Fair Market Value
or the Fair Market Value of a Share of Common Stock on the Purchase Date, whichever is
lower.
	 
	 	(u)	 	“Share” shall mean a share of Common Stock, as adjusted in accordance
with Section 19 of the Plan.
	 
	 	(v)	 	“Subsidiary” shall mean any corporation (other than the Company),
domestic or foreign, that is in an unbroken chain of corporations beginning with the
Company if, on an Offering Date, each of the corporations other than the last
corporation in the unbroken chain owns stock possessing 50% or more of the total
combined voting power of all classes of stock in one of the other corporations in the
chain, as described in Section 424(f) of the Code.

	3.	 	Eligibility.

	 	(a)	 	Any person who is an Employee as of the beginning of any Purchase Period of a
given Offering Period shall be eligible to participate in such Offering Period under
the Plan, subject to the requirements of Section 5(a) and the limitations imposed by
Section 423(b) of the Code.
	 
	 	(b)	 	Any provisions of the Plan to the contrary notwithstanding, no Employee shall
be granted an option under the Plan (i) if, immediately after the grant, such Employee
(or any other person whose stock would be attributed to such Employee pursuant to
Section 424(d) of the Code) would own stock and/or hold outstanding options to
purchase stock possessing five percent (5%) or more of the total combined voting power
or value of all classes of stock of the Company, any Subsidiary or any Parent, or (ii)
if such option would permit his or her rights to purchase stock under all employee
stock purchase plans (described in Section 423 of the Code) of the Company, any
Subsidiary or any Parent to accrue at a rate which exceeds Twenty-Five Thousand
Dollars ($25,000) of Fair Market Value of such stock (determined at the time such
option is granted) for each calendar year in which such option is outstanding at any
time.

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	4.	 	Offering Periods and Purchase Periods.

	 	(a)	 	Offering Periods.

	 	(i)	 	Effective November 1, 2007, the Plan shall be implemented by
a series of Offering Periods of approximately twenty-four (24) months
duration, with the first such Offering Period to commence on November 11,
2007; provided, however, that if the Fair Market Value of the Common Stock on
a Purchase Date is lower than the Fair Market Value of the Common Stock on the
first business day of the Offering Period, the Offering Period then in
progress will terminate and a new Offering Period would commence on the next
May 11 or November 11, as applicable, and extend for a twenty-four (24) month
period ending on May 10 or November 10, as applicable.
	 
	 	(ii)	 	The Plan shall continue until terminated in accordance with
Section 19 hereof. The Board shall have the power to change the duration
and/or the frequency of Offering Periods with respect to future offerings
without shareholder approval if such change is announced prior to the
scheduled beginning of the first Offering Period to be affected; provided,
however, that in no event shall any Offering Period exceed twenty-seven (27)
months in duration.

	 	(b)	 	Purchase Periods. With respect to each Offering Period that
commences on and after November 1, 2007, the Purchase Periods for each such Offering
Period shall commence on November 11 and May 11 of each year. The last business day
of each Purchase Period shall be the Purchase Date for such Purchase Period. A
Purchase Period commencing on May 11 shall end on the next November 10 and a Purchase
Period commencing on November 11 shall end on the next May 10. The Board shall have
the power to change the duration and/or frequency of Purchase Periods with respect to
future purchases without stockholder approval if such change is announced prior to the
scheduled beginning of the first Purchase Period to be affected.

	5.	 	Participation.

	 	(a)	 	An eligible Employee may become a participant in the Plan by completing a
enrollment agreement on the form provided by the Company and filing it with the
Company’s payroll office prior to the applicable Offering Date, unless a later time
for filing the enrollment agreement is set by the Board for all eligible Employees
with respect to a given offering. The enrollment agreement shall set forth the
percentage of the participant’s Compensation (subject to Section 6(a) below) to be
paid as Contributions pursuant to the Plan.
	 
	 	(b)	 	An eligible Employee may contribute to the Plan by means of payroll
deductions, unless payroll deductions are not permitted under local law, as determined
by the Company, in which case eligible Employees may be permitted to contribute to the
Plan by an alternative method, as determined by the Company. Payroll deductions, or,
if payroll deductions are not permitted under local law, payments made under an
alternative method, shall commence as of the first payday following the Offering Date
and shall end on the last payday paid on or prior to

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	 	 	 	the Purchase Date of the Offering Period to which the enrollment agreement is
applicable, unless the Employee’s participation is sooner terminated as provided in
Section 10.

	6.	 	Method of Payment of Contributions.

	 	(a)	 	Where permitted under local law, the participant shall elect to have payroll
deductions made on each payday during the Offering Period in an amount not less than
one percent (1%) and not more than fifteen percent (15%) of such participant’s
Compensation on each such payday (or such other maximum percentage as the Board may
establish from time to time before an Offering Date). Where payroll deductions are
not permitted under local law, the participant may be permitted to contribute to the
Plan by an alternative method, as determined by the Company. All payroll deductions
or other payments made by a participant shall be credited to his or her account under
the Plan. A participant may not make any additional payments into such account.
	 
	 	(b)	 	A participant may discontinue his or her participation in the Plan as
provided in Section 10, or, on one occasion only during a Purchase Period, may
decrease the rate of his or her Contributions during the applicable Period by
completing and filing with the Company a new enrollment agreement. The change in rate
shall be effective as soon as administratively practicable following the date of
filing of the new enrollment agreement; provided that any change elected on a new
enrollment agreement filed within 21 days of the end of any Purchase Period shall not
take effect earlier than the beginning of the first new Purchase Period to commence
after the date of that filing. A participant may change the rate of his or her
Contributions effective as of the beginning of any Purchase Period within an Offering
Period by filing a new enrollment agreement prior to the beginning of such Purchase
Period; provided that any change elected within 21 days prior to the beginning of that
Purchase Period shall be given effect as soon as administratively practicable on or
after the first day of that Purchase Period.
	 
	 	(c)	 	Notwithstanding the foregoing, to the extent necessary to comply with Section
423(b)(8) of the Code and Section 3(b) herein, a participant’s payroll deductions or
other payments may be decreased to 0% at any time during an Offering or Purchase
Period, as applicable. Payroll deductions or other payments shall re-commence at the
rate provided in such participant’s enrollment agreement at the beginning of the first
Offering or Purchase Period, as applicable, which is scheduled to end in the following
calendar year, unless the participant’s participation is terminated as provided in
Section 10. In addition, a participant’s payroll deductions or other payments may be
decreased by the Company to 0% at any time during a Purchase Period in order to avoid
unnecessary contributions as a result of application of the maximum Share limit set
forth in Section 7(a), or as a result of the limitations set forth in Section 3(b), in
which case payroll deductions or payments shall re-commence at the rate provided in
such participant’s enrollment agreement at the beginning of the next Purchase Period,
unless terminated by the participant as provided in Section 10.
	 
	 	(d)	 	As may be further specified in the enrollment agreement, at the time the
option is exercised, in whole or in part, or at the time some or all of the Company’s
Common Stock issued under the Plan is disposed of, the participant must make

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	 	 	 	adequate provision for the Company’s and/or the Employer’s federal, state, or other
tax and social insurance withholding obligations, if any, which arise upon the
exercise of the option or the disposition of the Common Stock. At any time, the
Company and the Employer may, but shall not be obligated to, withhold from the
participant’s compensation the amount necessary for the Company and/or the Employer
to meet applicable withholding obligations, including any withholding required to
make available to the Company or the Employer any tax deductions or benefits
attributable to sale or early disposition of Common Stock by the participant.

	7.	 	Grant of Option.

	 	(a)	 	On the Offering Date of each Offering Period, each eligible Employee
participating in such Offering Period shall be granted an option to purchase on each
Purchase Date occurring within the Offering Period a number of Shares determined by
dividing such Employee’s Contributions accumulated prior to such Purchase Date and
retained in the participant’s account as of the Purchase Date by the applicable
Purchase Price; provided however, that the maximum number of Shares an Employee may
purchase during any one Purchase Period shall be 10,000 Shares, subject to adjustment
as provided in Section 18, and provided further that such purchase shall be subject to
the limitations set forth in Sections 3(b) and 12.
	 
	 	(b)	 	The fair market value of the Company’s Common Stock on a given date (the
“Fair Market Value”) means, as of any date, the value of Common Stock
determined by the Board in its discretion provided that, to the extent the Common
Stock is trading on The Nasdaq Stock Market, (A) the Fair Market Value as of an
Offering Date shall be the closing sales price of the Common Stock as reported by The
Nasdaq Stock Market, for the last business day immediately preceding the Offering
Date, and (B) the Fair Market Value of the Common Stock as of a Purchase Date shall be
the closing sales price of the Common Stock as reported on The Nasdaq Stock Market for
the Purchase Date, in each case as reported in The Wall Street Journal. For purposes
of the Offering Date under the first Offering Period under the Plan, the Fair Market
Value of a Share shall be the Price to the public as set forth in the final prospectus
filed with the U.S. Securities and Exchange Commission pursuant to Rule 424 under the
U.S. Securities Act of 1933, as amended.

	8.	 	Exercise of Option.

	 	(a)	 	Unless a participant’s participation is terminated as provided in Section 10,
his or her option for the purchase of Shares will be exercised automatically on each
applicable Purchase Date of an Offering Period, and the maximum number of full Shares
subject to the option will be purchased at the applicable Purchase Price with the
accumulated Contributions in his or her account (subject to such limitations as are
specified in the Plan). The Shares purchased upon exercise of an option hereunder
shall be deemed to be transferred to the participant on the Purchase Date. During his
or her lifetime, a participant’s option to purchase Shares hereunder is exercisable
only by him or her.

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	 	(b)	 	No fractional Shares shall be purchased. Any payroll deductions or other
payments accumulated in a participant’s account which are not sufficient to purchase a
full Share shall be retained in the participant’s account for the subsequent Purchase
Period or Offering Period, subject to earlier withdrawal by the participant or
termination of such participant’s participation as provided in Section 10 below. Any
other amounts left over in a participant’s account after a Purchase Date shall be
returned to the participant.

	9.	 	Delivery. As promptly as practicable after each Purchase Date of each Offering
Period, the Company shall arrange the delivery to each participant (by electronic or other
means), as appropriate, of a certificate representing the Shares purchased upon exercise of
his or her option. Notwithstanding the foregoing, the Board may require that all Shares
purchased under the Plan be held in an account (the participant’s “ESPP Stock
Account”) established in the name of the participant (or in the name of the participant
and his or her spouse, as designated by the participant on his or her enrollment agreement),
subject to such rules as determined by the Board and uniformly applied to all participants,
including designation of a brokerage or other financial services firm (an “ESPP
Broker”) to hold such Shares for the participant’s ESPP Stock Account with registration of
such Shares in the name of such ESPP Broker for the benefit of the participant (or for the
benefit of the participant and his or her spouse, as designated by the participant on his or
her enrollment agreement).
	 
	10.	 	Voluntary Withdrawal: Termination of Employment.

	 	(a)	 	A participant may withdraw all but not less than all the Contributions
credited to his or her account under the Plan, by giving notice of withdrawal from the
Plan in accordance with the withdrawal procedures then in effect, not less than 21
days prior to the last day of the Purchase Period for which such election is to be
given effect. All of the participant’s Contributions credited to his or her account
will be paid to him or her promptly after receipt of his or her notice of withdrawal
and his or her option for that Offering Period will be automatically terminated, and
no further Contributions for the purchase of Shares may be made by the participant for
that Offering Period.
	 
	 	(b)	 	Upon termination of the participant’s Continuous Status as an Employee prior
to the last day of an Offering Period for any reason, including retirement or death,
the Contributions credited to his or her account will be promptly returned to him or
her or, in the case of his or her death, to the person or persons entitled thereto
under Section 14, if any, his or her option for that Offering Period will be
automatically terminated, and no further Contributions for the purchase of Shares may
be made by the participant for that Offering Period. If a Subsidiary ceases to be a
Subsidiary, each person employed by that Subsidiary will be deemed to have terminated
employment for purposes of the Plan, unless the person continues as an employee of the
Company or another Subsidiary.
	 
	 	(c)	 	In the event an Employee fails to remain in Continuous Status as an Employee
for at least twenty (20) hours per week during an Offering Period in which the
Employee is a participant, unless such Employee is on an approved leave of absence or
a temporary reduction of hours, or unless otherwise required by local law, he or she
will be deemed to have elected to withdraw from the Plan, the Contributions credited
to his or her account will be returned to him or her, his or

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	 	 	 	her option for that Offering Period will be automatically terminated, and no
further Contributions for the purchase of Shares may be made by the participant for
that Offering Period.

	 	(d)	 	A participant’s withdrawal from an Offering Period will not have any effect
upon his or her eligibility to participate in a succeeding Offering Period or in any
similar plan which may hereafter be adopted by the Company.
	 
	 	(e)	 	Automatic Withdrawal. To the extent permitted by any applicable
laws, regulations or stock exchange rules, if the Fair Market Value of the Shares on a
Purchase Date within an Offering Period then in progress is lower than was the Fair
Market Value of the Shares on the first business day of such Offering Period, then
every participant in such Offering Period shall automatically be deemed (i) to have
withdrawn from such Offering Period at the close of the Purchase Period ending on such
Purchase Date, and (ii) to have enrolled in a new Offering Period commencing on the
next November 11 or May 11, as applicable, in accordance with Section 4(a). In
addition, if the Fair Market Value of the Shares on a Purchase Date within an Offering
Period then in progress is lower than the Fair Market Value of the Shares on the
Offering Date with respect to an individual who began participation in an Offering
Period after the first business day of an Offering Period, such individual shall be
automatically deemed (x) to have withdrawn from such Offering Period at the close of
the Purchase Period ending on such Purchase Date, and (y) to have enrolled in the Plan
as of the beginning of the next Purchase Period to commence within such Offering
Period, with such individual having a new Offering Date in accordance with Section
2(1).

	11.	 	Interest. No interest shall accrue on the Contributions of a participant in the
Plan, unless required by local law.
	 
	12.	 	Stock.

	 	(a)	 	Subject to adjustment as provided in Section 18, the maximum number of Shares
of the Company’s Common Stock which shall be made available for sale under the Plan
shall be 45,000,000 Shares.
	 
	 	(b)	 	If the Board determines that, on a given Purchase Date, the number of Shares
with respect to which options are to be exercised may exceed (i) the number of Shares
that were available for sale under the Plan on the Offering Date of the applicable
Offering Period, or (ii) the number of Shares available for sale under the Plan on
such Purchase Date, the Board may in its sole discretion provide (x) that the Company
shall make a pro rata allocation of the Shares of Common Stock available for purchase
on such Offering Date or Purchase Date, as applicable, in as uniform a manner as shall
be practicable and as it shall determine in its sole discretion to be equitable among
all participants exercising options to purchase Common Stock on such Purchase Date,
and continue the Offering Period then in effect, or (y) that the Company shall make a
pro rata allocation of the Shares available for purchase on such Offering Date or
Purchase Date, as applicable, in as uniform a manner as shall be practicable and as it
shall determine in its sole discretion to be equitable among all participants
exercising options to purchase Common Stock on such Purchase Date, and terminate the

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	 	 	 	Offering Period then in effect pursuant to Section 19 below. The Company may make
pro rata allocation of the Shares available on the Offering Date of any applicable
Offering Period pursuant to the preceding sentence, notwithstanding any
authorization of additional Shares for issuance under the Plan by the Company’s
stockholders subsequent to such Offering Date.

	 	(c)	 	The participant will have no interest or voting right in Shares covered by
his or her option until such option has been exercised and such Shares have actually
been delivered to and held of record by the participant. No adjustment will be made
for dividends or other rights as a stockholder for which a record date is prior to
such date of delivery.
	 
	 	(d)	 	Shares to be delivered (by electronic or other means) to a participant under
the Plan will be registered in the name of the participant or in the name of the
participant and his or her spouse, as designated by the participant in his or her
enrollment agreement; provided that if the Board has determined that Shares shall be
held in an ESPP Stock Account held by an ESPP Broker in accordance with Section 9.
Shares shall be registered in the name of such ESPP Broker for the benefit of the
participant or the participant and his or her spouse, as designated by the participant
in his or her enrollment agreement.

	13.	 	Administration.

	 	(a)	 	The Board, or a committee named by the Board, shall supervise and administer
the Plan and shall have full power to adopt, amend and rescind any rules deemed
desirable and appropriate for the administration of the Plan and not inconsistent with
the Plan, to construe and interpret the Plan, and to make all other determinations
necessary or advisable for the administration of the Plan. Any action taken by, or
inaction of, the Company, any Subsidiary, the Board or a Board committee relating or
pursuant to the Plan and within its authority hereunder or under applicable law shall
be within the absolute discretion of that entity or body and shall be conclusive and
binding upon all persons.
	 
	 	(b)	 	The Board or Board committee has discretion to adopt any rules regarding
administration of the Plan to conform to local laws. Without limiting the generality
of the foregoing, the Board or a Board committee is specifically authorized to adopt
rules and procedures regarding handling of payroll deductions, payment of interest and
handling of stock certificates which vary according to local requirements. The Board
or a Board committee has the authority to suspend or limit participation in the Plan
by employees of any particular Subsidiary for any reason, including administrative or
economic reasons. The Board or a Board committee may also adopt rules, procedures or
sub-plans applicable to particular Subsidiaries or locations, which sub-plans may be
designed to be outside the scope of Section 423 of the Code.
	 
	 	(c)	 	In making any determination or in taking or not taking any action under the
Plan, the Board or a Board committee may obtain and may rely upon the advice of
experts, including professional advisors to the Company. No director, officer or
agent of the Company or any Subsidiary shall be liable for any such action or
determination taken or made or omitted in good faith. The Board or a Board committee
may delegate ministerial, non-discretionary functions relating to the

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	 	 	 	Plan to individuals who are officers or employees of the Company or a Subsidiary.

	 	(d)	 	Neither the Board nor any Board committee, nor any member thereof or person
acting at the direction thereof, shall be liable for any act, omission,
interpretation, construction or determination made in good faith in connection with
the Plan, and all such persons shall be entitled to indemnification and reimbursement
by the Company in respect of any claim, loss, damage or expense (including, without
limitation, attorneys’ fees) arising or resulting therefrom to the fullest extent
permitted by law and/or under any directors and officers liability insurance coverage
that may be in effect from time to time.

	14.	 	Designation of Beneficiary.

	 	(a)	 	Unless otherwise determined by the Company, a participant may file a written
designation of a beneficiary who is to receive any Shares and cash, if any, from the
participant’s account under the Plan in the event of such participant’s death
subsequent to the end of an Offering or Purchase Period, as applicable, but prior to
delivery to him or her of such Shares and/or cash. In addition, unless otherwise
determined by the Company, a participant may file a written designation of a
beneficiary who is to receive any cash from the participant’s account under the Plan
in the event of such participant’s death prior to the Purchase Date of an Offering
Period. If a participant is married and the designated beneficiary is not the spouse,
spousal consent shall be required for such designation to be effective.
	 
	 	(b)	 	Unless otherwise determined by the Company, such designation of beneficiary
may be changed by the participant (and his or her spouse, if any) at any time by
written notice to the Company in a manner acceptable to the Company. In the event of
the death of a participant and in the absence of a beneficiary validly designated
under the Plan who is living at the time of such participant’s death, the Company
shall deliver such Shares and/or cash to the executor or administrator of the estate
of the participant, or if no such executor or administrator has been appointed (to the
knowledge of the Company), the Company, in its discretion, may deliver such Shares
and/or cash to the spouse or to any one or more dependents or relatives of the
participant, or if no spouse, dependent or relative is known to the Company, then to
such other person as the Company may designate or determine to be the appropriate
recipient of the Shares and/or cash under applicable local law.

	15.	 	Transferability. Neither Contributions credited to a participant’s account nor any
rights with regard to the exercise of an option or to receive Shares under the Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the
laws of descent and distribution, or as provided in Section 14) by the participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be without effect, except
that the Company may treat such act as an election to withdraw funds in accordance with
Section 10.
	 
	16.	 	Use of Funds. All Contributions received or held by the Company under the Plan may
be used by the Company for any corporate purpose, and the Company shall not be obligated to
segregate such Contributions, unless required by local law.

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	17.	 	Reports. Individual accounts will be maintained for each participant in the Plan.
Statements of account will be given to participating Employees as promptly as practically
feasible following the Purchase Date, which statements will set forth the amounts of
Contributions, the per Share Purchase Price, the number of Shares purchased and the remaining
cash balance, if any.
	 
	18.	 	Adjustments Upon Changes in Capitalization: Corporate Transactions.

	 	(a)	 	Adjustment. Subject to any required action by the stockholders of
the Company, the number of Shares covered by each option under the Plan which has not
yet been exercised and the number of Shares which have been authorized for issuance
under the Plan but have not yet been placed under option (collectively, the
“Reserves”), the maximum number of Shares an Employee may purchase during each
Offering Period or each Purchase Period, as well as the price per Share covered by
each option under the Plan which has not yet been exercised, shall be proportionately
adjusted for any increase or decrease in the number of issued Shares resulting from a
stock split, reverse stock split, stock dividend, combination or reclassification of
the Common Stock, or any other increase or decrease in the number of Shares 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 herein, no issue 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 subject to an option.
	 
	 	(b)	 	Corporate Transactions. In the event of the proposed dissolution or
liquidation of the Company, the Plan, any Offering Period and Purchase Period then in
progress, and any outstanding option granted with respect to such Offering Period will
terminate immediately prior to the consummation of such proposed action, unless
otherwise provided by the Board. If a participant’s option is terminated pursuant to
the preceding sentence, the Contributions then credited to such participant’s account
will be paid to him or her in cash without interest. 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, unless otherwise determined by the Board, each
option under the Plan shall be assumed or an equivalent option shall be substituted by
such successor corporation or a parent or subsidiary of such successor corporation,
or, if not so assumed or substituted, the Offering Period then in progress shall be
shortened and the Board shall set a new Purchase Date (the “New Purchase Date”). The
New Purchase Date shall be on or before the date of consummation of the transaction
and the Board shall notify each participant in writing, at least ten (10) days prior
to the New Purchase Date, that the Purchase Date for his or her option (including for
purposes of determining the Purchase Price of such option) has been changed to the New
Purchase Date and that his or her option will be exercised automatically on the New
Purchase Date, unless prior to such date he or she has withdrawn from the Offering
Period as provided in Section 10. For purposes of this paragraph, an option granted
under the Plan shall be deemed to be assumed if, following the sale of assets or
merger, the option confers the right to purchase,

11

 

	 	 	 	for each Share subject to the option immediately prior to the sale of assets or
merger, the consideration (whether stock, cash or other securities or property)
received in the sale of assets or merger by holders of Common Stock for each Share
held on the effective date of the transaction (and if such holders were offered a
choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding Shares of Common Stock); provided, however, that if
such consideration received in the sale of assets or merger was not solely common
stock of the successor corporation or its parent (as defined in Section 424(e) of
the Code), the Board may, with the consent of the successor corporation and the
participant, provide for the consideration to be received upon exercise of the
option to be solely common stock of the successor corporation or its parent equal
in Fair Market Value to the per Share consideration received by holders of Common
Stock and the sale of assets or merger.

	 	(c)	 	The Board may, if it so determines in the exercise of its sole discretion,
also make provision for adjusting the Reserves, as well as the price per Share covered
by each outstanding option, in the event that the Company effects one or more
reorganizations, recapitalizations, rights offerings or other increases or reductions
of shares of its outstanding Common Stock, and in the event of the Company being
consolidated with or merged into any other corporation.

	19.	 	Amendment or Termination.

	 	(a)	 	The Board may at any time and for any reason terminate or amend the Plan.
Except as provided in Sections 13(b) and 18, no such termination of the Plan may
affect options previously granted, provided that the Plan or an Offering Period may be
terminated by the Board on a Purchase Date or by the Board’s setting a new Purchase
Date with respect to an Offering Period and Purchase Period then in progress if the
Board determines that termination of the Plan and/or the Offering Period is in the
best interests of the Company and the stockholders or if continuation of the Plan
and/or the Offering Period would cause the Company to incur adverse accounting charges
as a result of a change after the effective date of the Plan in the generally accepted
accounting rules applicable to the Plan. Except as provided in Section 18 and in this
Section 19, no amendment to the Plan shal1 make any change in any option previously
granted which adversely affects the rights of any participant without such
participant’s written consent. In addition, to the extent necessary to comply with
the requirements of Rule 16b-3 under the Exchange Act, Section 423 of the Code (or any
successor rule or provision or any applicable law or regulation) or any stock exchange
on which the Shares are then listed, the Company shall obtain stockholder approval in
such a manner and to such a degree as so required.
	 
	 	(b)	 	Without stockholder consent and without regard to whether any participant
rights may be considered to have been adversely affected, the Board shall be entitled
to change the Offering Periods and Purchase Periods, limit the frequency and/or number
of changes in the amount withheld during an Offering Period, establish the exchange
ratio applicable to amounts withheld in a currency other than U.S. dollars, permit
payroll withholding in excess of the amount designated by a participant in order to
adjust for delays or mistakes in the Company’s processing of properly completed
withholding elections, establish reasonable waiting and adjustment periods and/or
accounting and crediting procedures to ensure that

12

 

	 	 	 	amounts applied toward the purchase of Shares for each participant properly
correspond with amounts withheld from the participant’s Compensation, and establish
such other limitations or procedures as the Board determines in its sole discretion
advisable which are consistent with the Plan.

	20.	 	Notices. All notices or other communications by a participant to the Company under
or in connection with the Plan shall be deemed to have been duly given when received in the
form specified by the Company at the location, or by the person, designated by the Company for
the receipt thereof.
	 
	21.	 	Conditions Upon Issuance of Shares. The Company shall have no obligation to issue
Shares with respect to an option unless the exercise of such option and the issuance and
delivery of such Shares pursuant thereto shall comply with all applicable provisions of law,
domestic or foreign, including, without limitation, the U.S. Securities Act of 1933, as
amended, the Exchange Act, the rules and regulations promulgated thereunder, and the
requirements of any stock exchange upon which the Shares may then be listed, and shall be
further subject to the approval of counsel for the Company with respect to such compliance.
	 
	 	 	As a condition to the exercise of an option, the Company may require the person exercising
such option to represent and warrant at the time of any such exercise that the Shares are
being purchased only for investment and without any present intention to sell or distribute
such Shares if, in the opinion of counsel for the Company, such a representation is
required by any of the aforementioned applicable provisions of law.
	 
	22.	 	Term of Plan; Effective Date. The Plan shall become effective upon the earlier to
occur of its adoption by the Board or its approval by the stockholders of the Company. It
shall continue in effect for a term of twenty (20) years unless sooner terminated under
Section 19.
	 
	23.	 	Additional Restrictions of Rule 16b-3. The terms and conditions of options granted
hereunder to, and the purchase of Shares by, persons subject to Section 16 of the Exchange Act
shall comply with the applicable provisions of Rule 16b-3. This Plan shall be deemed to
contain, and such options shall contain, and the Shares issued upon exercise thereof shall be
subject to, such additional conditions and restrictions as may be required by Rule 16b-3 to
qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan
transactions.
	 
	24.	 	No Employment Rights. Nothing in the Plan (or in any enrollment agreement or other
document related to this Plan) will confer upon any Employee or participant any right to
continue in the employ or other service of the Company or any Subsidiary, constitute any
contract or agreement of employment or other service or effect an employee’s status as an
employee at will, nor shall interfere in any way with the right of the Company or any
Subsidiary to change such person’s compensation or other benefits or to terminate his or her
employment or other service, with or without cause. Nothing contained in this Section 24,
however, is intended to adversely affect any express independent right of any such person
under a separate employment or service contract other than an enrollment agreement.
	 
	25.	 	No Right to Assets of the Company. No participant or other person will have any
right, title or interest in any fund or in any specific asset (including Shares) of the
Company or

13

 

	 	 	any Subsidiary by reason of any option hereunder. Neither the provisions of the Plan (or
of any enrollment agreement or other document related to the Plan), nor the creation or
adoption of the Plan, nor any action taken pursuant to the provisions of the Plan will
create, or be construed to create, a trust of any kind or a fiduciary relationship between
the Company or any Subsidiary and any participant, beneficiary or other person. To the
extent that a participant, beneficiary or other person acquires a right to receive payment
pursuant to the Plan, such right will be no greater than the right of any unsecured general
creditor of the Company.

	26.	 	Miscellaneous.

	 	(a)	 	The Plan, the options, enrollment agreements and other documents related to
the Plan shall be governed by, and construed in accordance with, the laws of the State
of Delaware. If any provision of the Plan shall be held by a court of competent
jurisdiction to be invalid and unenforceable, the remaining provisions of the Plan
shall continue in effect.
	 
	 	(b)	 	Captions and headings are given to the sections of the Plan solely as a
convenience to facilitate reference. Such captions and headings shall not be deemed
in any way material or relevant to the construction of interpretation of the Plan or
any provision hereof.
	 
	 	(c)	 	The adoption of the Plan shall not affect any other Company or Subsidiary
compensation or incentive plans in effect. Nothing in the Plan will limit or be
deemed to limit the authority of the Board or a Board committee (1) to establish any
other forms of incentives or compensation for employees of the Company or any
Subsidiary (with or without reference to the Common Stock), or (2) to grant or assume
options (outside the scope of and in addition to those contemplated by the Plan) in
connection with any proper corporate purpose, to the extent consistent with any other
plan or authority. Benefits received by a participant under an option granted
pursuant to the Plan shall not be deemed a part of the participant’s compensation for
purposes of the determination of benefits under any other employee welfare or benefit
plans or arrangements, if any, provided by the Company or any Subsidiary, except where
the Board or Board committee (or the Board of Directors of the Subsidiary that
sponsors such plan or arrangement, as applicable) expressly otherwise provides or
authorizes in writing.

14exv10w3xby

 

EXHIBIT 10.3(B)

YAHOO! INC.

AMENDED AND RESTATED

1996 EMPLOYEE STOCK PURCHASE PLAN

ENROLLMENT AGREEMENT

	1.	 	I hereby elect to participate in the Yahoo! Inc. Amended and Restated 1996 Employee Stock
Purchase Plan (the “Plan”) and subscribe to purchase Shares of the Company’s Common Stock
subject to the terms of this Enrollment Agreement and the Plan. Capitalized terms not defined
herein shall have the meaning ascribed to them in the Plan. I understand that my
participation in the Plan will commence with the Purchase Period beginning on November 12,
2007 and ending on May 9, 2008.
	 
	2.	 	By enrolling in the Plan and making my online enrollment elections, I agree to have
Contributions in the amount of the elected percentage of my Compensation applied to this
purchase. I understand that this amount must not be less than 1% and not more than 15% of my
Compensation during an Offering Period. (Please note that no fractional percentages are
permitted).
	 
	3.	 	By enrolling in the Plan and making my online enrollment elections, I authorize payroll
deductions from each paycheck during the Offering Periods in the amount of the elected
percentage of my Compensation. I understand that all payroll deductions authorized by me
shall be credited to my account under the Plan and that I may not make any additional payments
into such account. I understand that all payments made by me shall be accumulated for the
purchase of Shares at the applicable Purchase Price determined in accordance with the Plan. I
further understand that, except as otherwise set forth in the Plan, Shares will be purchased
for me automatically on each Purchase Date during the Offering Period unless I otherwise
withdraw from the Plan in accordance with the withdrawal procedures in effect at the time of
withdrawal.
	 
	4.	 	I understand that I may discontinue during a Purchase Period only as provided in Section 10
of the Plan. I also understand that I can decrease the rate of my Contributions on one
occasion only during any Purchase Period, or increase the rate of my Contributions for the
subsequent Purchase Period, by making a new online deduction election. Any such change will
be effective as soon as administratively practicable after the date of my new online election;
provided that any such election made within 21 days of the end of any Purchase Period shall
not take effect earlier than the beginning of the first new Purchase Period to commence after
the date of such election. In addition, I acknowledge that, unless I discontinue my
participation in the Plan in accordance with the withdrawal procedures in effect at such time,
my election will continue to be effective for each successive Offering Period.
	 
	5.	 	In addition to this Enrollment Agreement and the Plan (which is attached to this Enrollment
Agreement and is also located at http://backyard.yahoo.com/resources/forms/stock/ESPPUSEnrollment.html on Backyard, I
acknowledge that I have reviewed and understand the Company’s most recent prospectus (located
at http://backyard.yahoo.com/resources/forms/stock/2007esppprospectus.html on
Backyard). I understand that my participation in the Plan is in all respects subject to the
terms of the Plan and this Enrollment Agreement.

 

 

	6.	 	Shares purchased for me under the Plan should be issued in my name.
	 
	7.	 	I understand that if I dispose of any Shares received by me pursuant to the Plan within 2
years after the Offering Date (the first day of the Offering Period during which I purchased
such Shares or, if I joined the Plan after such date, the first business day of the Purchase
Period with respect to which I joined the Plan during such Offering Period) or within 1 year
after the Purchase Date, I will be treated for federal income tax purposes as having received
ordinary compensation income at the time of such disposition in an amount equal to the excess
of the Fair Market Value of the Shares on the Purchase Date over the price which I paid for
the Shares, regardless of whether I disposed of the Shares at a price less than their Fair
Market Value at the Purchase Date. The remainder of the gain or loss, if any, recognized on
such disposition will be treated as capital gain or loss.
	 
	 	 	By enrolling in the Plan and making my online enrollment elections, I agree to notify
the Company in writing within 30 days after the date of any such disposition, and I will
make adequate provision for federal, state or other tax withholding obligations, if any,
which arise upon the such disposition of the Shares. The Company may, but will not be
obligated to, withhold from my compensation the amount necessary to meet any applicable
withholding obligation including any withholding necessary to make available to the Company
any tax deductions or benefits attributable to the sale or early disposition of Shares by
me.
	 
	9.	 	If I dispose of such Shares at any time after expiration of the 2-year and 1-year holding
periods, I understand that I will be treated for federal income tax purposes as having
received compensation income only to the extent of an amount equal to the lesser of (1) the
excess of the Fair Market Value of the Shares at the time of such disposition over the
purchase price which I paid for the Shares under the option, or (2) 15% of the Fair Market
Value of the Shares on the Offering Date. The remainder of the gain or loss, if any,
recognized on such disposition will be treated as capital gain or loss.
	 
	 	 	I understand that this tax summary is only a summary and is subject to change. I
further understand that I should consult a tax advisor concerning the tax implications of
the purchase and sale of stock under the Plan.
	 
	10.	 	The Company may, in its sole discretion, decide to deliver any documents related to the
purchase rights and participation in the Plan or future purchase rights that may be granted
under the Plan by electronic means or to request my consent to participate in the Plan by
electronic means. I hereby consent to receive such documents by electronic delivery and, if
requested, to agree to participate in the Plan through an on-line or electronic system
established and maintained by the Company or another third party designated by the Company.
	 
	11.	 	The provisions of this Enrollment Agreement are severable and if any one or more provisions
are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining
provisions shall nevertheless be binding and enforceable.
	 
	12.	 	By enrolling in the Plan and making my online enrollment elections, I agree to be bound by
the terms of the Plan and this Enrollment Agreement. The effectiveness of this Enrollment
Agreement and my participation in the Plan is dependent upon my eligibility to participate in
the Plan.

2

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