Document:

EX-10.3

 Exhibit 10.3 
 AOL INC. 
 SEGMENT PERFORMANCE SHARE UNITS (“SPSUs”)

 UNDER THE AOL INC. 2010 STOCK INCENTIVE PLAN 

SPSU TERMS AND CONDITIONS 
 These Segment Performance Share Unit Terms and Conditions, as amended from time to time (“Terms and Conditions”), apply to the award of SPSUs (each an “SPSU Award”) granted under the
AOL Inc. 2010 Stock Incentive Plan, as amended from time to time (the “Plan”). An SPSU Award shall be deemed to be an “Other Stock-Based Award” granted pursuant to Section 9 of the Plan. An SPSU Award is intended to satisfy
the applicable provisions of Section 162(m) of the Code with respect to an SPSU Award granted to a Covered Employee. Each SPSU Award is subject to these Terms and Conditions and the terms, definitions and provisions of the Plan and applicable
Notice of Grant and SPSU Award Agreement. Capitalized terms that are used in these Terms and Conditions, but are not defined, shall have the meanings ascribed to them in the Plan or the applicable SPSU Award Agreement. 

 

	1.	Certain Defined Terms.  

 (a) “ABP” means the AOL Inc. Annual Bonus Plan established annually that provides participants with the opportunity to receive cash incentives based upon annual performance, as such plan may be
amended from time to time. 
 (b) “Covered Employee” means any Participant who is (or who may be reasonably be
expected to become) a “covered employee” within the meaning of Section 162(m). 
 (c) “Employee” means
any employee of the Company or one of its Affiliates, whether such employee is so employed at the time these Terms and Conditions are adopted or becomes so employed subsequent to their adoption. 

(d) “Participant” means an Employee who has been granted an SPSU Award under the Plan which remains outstanding. 

(e) “Plan” means the AOL Inc. 2010 Stock Incentive Plan, as amended from time to time. 

(f) “Section 162(m)” shall mean Section 162(m) of the Code, or any successor provision, and applicable Treasury
Regulations and other applicable guidance thereunder. 
 (g) “SPSU” means one notional unit equal in value to one
Share, payable in cash or Shares in accordance with the provisions of these Terms and Conditions, the Plan and the applicable Notice of Grant and SPSU Award Agreement. 

 (h) “SPSU Award” means an award of SPSUs in respect of a performance period
awarded to a Participant in accordance with the Plan, these Terms and Conditions and the terms of the Notice of Grant and SPSU Award Agreement relating to such SPSU Award. 
 (i) “SPSU Award Agreement” means the written agreement evidencing an SPSU Award granted under the Plan pursuant to these Terms and Conditions. Each SPSU Award Agreement shall be subject to these
Terms and Conditions and the Plan and any other terms and conditions (not inconsistent with the Plan) determined by the Committee. 
  

	2.	Eligibility and Participation 

 (a) Any Employee of the Company or one of its Affiliates shall be eligible to be granted SPSU Awards under the Plan. The Committee in its sole discretion shall select Employees eligible to receive SPSU
Awards. 
 (b) A Participant shall not be entitled to participate and shall cease participation in any other cash incentive plan
or program of the Company or an Affiliate with respect to any performance period beginning on or after January 1, 2013 (other than the ABP, the Company’s Annual Incentive Plan for Executive Officers and the Plan), including but not limited
to sales incentive bonus plans, performance programs, and revenue or other performance plans, except as the Committee may otherwise provide in the terms of a Participant’s SPSU Award. In the event of a conflict between these Terms and
Conditions and any plan or program of the Company or an Affiliate or a Participant’s employment agreement or offer letter with the Company, these Terms and Conditions will control. 

 

	3.	Administration 

(a) The Committee shall have the full power and authority to make, and establish the terms and conditions of, any SPSU Award, consistent
with the provisions of the Plan and these Terms and Conditions. The Committee is authorized to interpret these Terms and Conditions, to establish, amend and rescind any rules and regulations relating to these Terms and Conditions, and to make any
other determinations that it deems necessary or desirable for the administration of the SPSU Awards, and may delegate such authority, as it deems appropriate, consistent with the provisions of the Plan. The Committee may correct any defect, supply
any omission or reconcile any inconsistency in the Plan, these Terms and Conditions or in any SPSU Award Agreement or Notice of Grant in the manner and to the extent it shall deem necessary or appropriate, consistent with the terms of the Plan. Any
decision of the Committee in the interpretation and administration of these Terms and Conditions, as described herein, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned (including,
but not limited to, Participants and their beneficiaries or successors). 
 (b) Pursuant to the Plan, the Committee has
delegated its administrative authority with respect to SPSU Awards granted to Participants other than Covered Employees concurrently to the Company’s Chief Executive Officer, subject to the terms, conditions, limitations and guidelines as the
Committee may establish in its sole discretion from time to time. References to the Committee shall mean the Chief Executive Officer if he is working within the scope of such delegated authority. Such delegation of authority shall not restrict the

  
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Committee from taking action regarding any matter within the scope of such delegation. Any SPSU Awards to Covered Employees will be granted, administered, and interpreted exclusively by the
Committee. The Committee may not delegate its powers and duties with respect to the SPSU Awards in a manner as would cause the Plan or these Terms and Conditions not to comply with the requirements of Section 162(m). 

 

	4.	SPSU Awards 

 (a)
The Committee is hereby authorized to grant SPSU Awards subject to the terms of these Terms and Conditions and the Plan. The Committee shall determine, in its sole discretion, the number of SPSUs subject to any SPSU Award and may impose such
conditions on the grant of SPSU Awards as it deems appropriate. Each SPSU Award will be evidenced by a Notice of Grant and an SPSU Award Agreement. The Notice of Grant shall specify the number of SPSUs subject to the SPSU Award. 

(b) An SPSU Award shall confer on the holder thereof the right to receive payments, in whole or in part, upon the achievement of one or
more performance goals during such performance periods as the Committee may establish. The performance goals to be achieved during any performance period, the length of any performance period and any other terms and conditions of any SPSU Award
shall be determined by the Committee. Except as provided in Section 4(c) below, the Committee, or its delegate, may, in its discretion, reduce or increase the amount of a payout achieved and otherwise to be paid in connection with an SPSU
Award. The Committee may establish different performance periods or different performance goals for each Participant. 
 (c)
SPSU Awards that are granted to Covered Employees and that are intended to be “qualified performance-based compensation” within the meaning of Section 162(m), to the extent required by Section 162(m), shall be conditioned solely
on the achievement of one or more objective performance goals established by the Committee within the time prescribed by Section 162(m), and shall otherwise comply with the requirements of Section 162(m), as described below. 

(i) Timing of Designations; Setting of Performance Goals. For each SPSU Award intended to be “qualified
performance-based compensation,” the Committee shall, not later than 90 days after the beginning of each performance period, (i) designate all Participants that are Covered Employees for such performance period and (ii) establish in
writing the objective performance goals based on one or more of the performance criteria listed in Section 9(b) of the Plan; provided, however, that, with respect to such performance goals, the outcome is substantially uncertain at the time the
Committee actually establishes each performance goal. 
 (ii) Certification. Following the close of each
performance period and prior to the vesting or payment of any amount to a Participant with respect to an SPSU Award, the Committee shall certify in writing as to the attainment of all factors upon which any payments to a Participant for that
performance period are to be based. 

  
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 (iii) Payment of SPSU Awards. The Committee may, in its discretion,
reduce the amount of a payout achieved and otherwise to be paid in connection with an SPSU Award intended to be “qualified performance-based compensation” under Section 162(m), but may not exercise discretion to increase such amount.

  

	5.	Adjustments to Performance Goals 

 The Committee may adjust the performance goals following the grant of an SPSU Award for any reason, including to reflect a change in corporate capitalization (such as a stock split or stock dividend) or a
corporate transaction (such as a merger, consolidation, separation, reorganization or partial or complete liquidation), or to reflect equitably the occurrence of any extraordinary event, any change in applicable accounting rules or principles, any
change in the Company’s method of accounting, any change in applicable law, or change due to any merger, consolidation, acquisition, reorganization, stock split, stock dividend, combination of shares or other changes in the Company’s
corporate structure or shares, or any other change of a similar nature. The Committee shall make the foregoing adjustments with respect to a Covered Employee’s SPSU Awards in a manner that the Committee deems appropriate on account of the
occurrence of one of the events listed in this Section 5 in order to avoid the dilution or enlargement of a Participant’s rights under such SPSU Award, provided that the adjustment(s) otherwise conform to the requirements of
Section 162(m) to preserve the treatment of such SPSU Award as “performance-based compensation” within the meaning of Section 162(m). 
  

	6.	Acknowledgement of Award 

 A Participant will not be entitled to any SPSU Award or any benefit of the Plan unless the Participant acknowledges and agrees to be bound by these Terms and Conditions, the Plan and the terms of the
Notice of Grant and SPSU Award Agreement. By executing the Notice of Grant, each Participant shall be deemed conclusively to have agreed with and consented to these Terms and Conditions and the terms of the Plan, the Notice of Grant and the SPSU
Award Agreement. 
  

	7.	Settlement of SPSU Awards 

 (a) The SPSU Award Agreement relating to an SPSU Award (i) shall specify whether such award may be settled in Shares or cash, or a combination thereof and (ii) may specify whether the holder
thereof shall be entitled to receive dividend equivalents and/or share in other distributions to the Company’s stockholders with respect to the number of SPSUs subject to such SPSU Award. 

(b) If an SPSU Award is settled in Shares, such Shares shall be issued in accordance with the Plan and shall reduce the Share
Authorization as provided in Section 3 of the Plan. SPSU Awards settled in cash shall not reduce the Share Authorization. No fractional Shares may be issued in whole or partial settlement of an SPSU Award. 

 

	8.	Restrictions on Benefits. 

 (a) Each Participant acknowledges that a Participant’s continued employment with the Company and its Affiliates and a grant of an SPSU Award are sufficient consideration for the restrictions imposed
upon a Participant by this Section 8 and provide benefits to which the Participant would not otherwise be entitled to enjoy. 

  
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 (b) In consideration of benefits described in these Terms and Conditions and in the Notice
of Grant and SPSU Award Agreement evidencing an SPSU Award, and in recognition that a Participant, as a result of employment with the Company, has had or will have access to and gain knowledge of highly confidential or proprietary information or
trade secrets pertaining to the Company, each Participant agrees, as a material condition to the receipt of benefits described in these Terms and Conditions and in the Notice of Grant and SPSU Award Agreement evidencing an SPSU Award and for
purposes of satisfying all the conditions for becoming entitled to enjoy the benefits described herein, to abide by the Participant’s Confidentiality and Invention Assignment Agreement or Confidentiality, Non-Competition and Proprietary Rights
Agreement, as applicable, the Company’s Standards of Business Conduct, and any confidentiality agreement, employment agreement or offer letter between the Company or any of its Affiliates and the Participant. In addition, each Participant
agrees that while a Participant is employed by the Company and for twelve (12) months following termination of his/her employment for any reason, a Participant shall not, directly or indirectly, except as a shareholder holding less than a one
percent (1%) interest in a corporation whose shares are traded on a national securities exchange, participate in the ownership, control, or management of, or perform any services for or be employed by (i) Time Warner, Inc., Yahoo!, Inc.,
Google, Inc., including its YouTube subsidiary, Microsoft Corporation, IAC/Interactive Corp., News Corp, Facebook, Inc., LinkedIn Corporation, Yelp Inc. and Twitter Inc., or (ii) without the written consent of the Chief Executive Officer or the
General Counsel of the Company, any entity that engages in any line of business that is substantially the same as any line of business which the Company engages in, conducts or, to Participant’s knowledge, has definitive plans to engage in or
conduct, and has not ceased to engage in or conduct, or any of their respective subsidiaries, affiliates or successors (any such entity identified by Section 8(a)(ii) is a “Competitive Entity”). Notwithstanding the preceding, in order
to be considered a Competitive Entity, the entity must derive fifty percent (50%) or more of its total annual revenues from substantially similar products and services offered by the Company. 

(c) Remedies for Breach of These Covenants. 

(i) Each Participant agrees that if the Company determines a Participant has violated any provisions of Section 8(b),
then the Participant’s right to the payment under the terms of the SPSU Award shall not have been earned since the Participant will not have satisfied all of the conditions for becoming entitled to enjoy the benefits provided under the SPSU
Award and the SPSU Award, whether or not characterized as otherwise “earned” and/or “vested” or not, will be immediately terminated and cancelled, and the Participant shall immediately return to the Company the Company Shares
equal to the number of Shares delivered in settlement of such vested SPSUs if such SPSUs were settled in Shares or Participant shall pay cash equal to the value of cash paid to Participant in settlement of such vested SPSUs if such payment was made
in cash. 
 (ii) Each Participant acknowledges and agrees that any breach of a Participant’s obligations in
Section 8(b) will cause irreparable harm to the Company and that in the event of such breach, the Company shall have, in additional to monetary 

  
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damages and other remedies at law, the right to an injunction, specific performance and other equitable relief to prevent violations of a Participant’s obligations hereunder to the fullest
extent not prohibited by law. 
 (d) Enforceability of These Covenants. 

(i) Each Participant acknowledges that the services to be performed by the Participant pursuant to their employment with
the Company are of a special, unique, unusual, extraordinary and intellectual character. Each Participant further acknowledges that the business of the Company is international in scope, that its products and services are marketed throughout the
world, that the Company competes in nearly all of its business activities with other entities that are or could be located in nearly any part of the world and that the nature of a Participant’s services, position and expertise are such that a
Participant is capable of competing with the Company from nearly any location in the world. 
 (ii) Each
Participant acknowledges that the geographic boundaries, scope of prohibited activities, and time duration of the preceding paragraphs are reasonable in nature and are no broader than are necessary to maintain the confidential information, trade
secrets and the goodwill of the Company and to protect the other legitimate business interests of the Company and are not unduly restrictive on a Participant. Each Participant acknowledges that the covenants contained in this Section 8 shall be
deemed to be a series of separate covenants and agreements, one for each and every county or political subdivision of each applicable state of the United States and each country of the world. 

(iii) It is the desire and intent of each Participant and the Company that the provisions of this Section 8 be
enforced to the fullest extent permissible under the governing laws and public policies of the State of New York, and to the extent applicable, each jurisdiction in which enforcement is sought. Accordingly, if any provision of these Terms and
Conditions or any provision deemed to be included herein shall be adjudicated to be invalid or unenforceable, such provision, without any action on the part of a Participant or the Company, shall be deemed amended to delete or to modify (including,
without limitation, a reduction in duration, geographical area or prohibited business activities) the portion adjudicated to be invalid or unenforceable, such deletion or modification to apply only with respect to the operation of such provision in
the particular jurisdiction in which such adjudication is made, and such deletion or modification to be made only to the extent necessary to cause the provision as amended to be valid and enforceable. 

 

	9.	Rights with Respect to SPSUs 

 The SPSU Award and the SPSUs granted thereunder do not and shall not give a Participant any of the rights and privileges of a stockholder. A Participant’s rights with respect to the SPSU Award or the
SPSUs granted thereunder remain forfeitable at all times prior to the date on which such rights become vested and fully earned and unrestricted in accordance with these Terms and Conditions, the Plan and the terms of the applicable Notice of Grant
and SPSU Award Agreement. 

  
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	10.	Forfeiture of SPSU Awards and Recoupment of Gains  

 All SPSU Awards shall be subject to forfeiture or other penalties pursuant to the Company’s Clawback Policy, as amended from time to time, and such forfeiture and/or penalty conditions or provisions
as determined by the Committee and set forth in the applicable Award Agreement. 
  

	11.	Successors and Assigns 

 The Terms and Conditions shall be binding on all successors and assigns of the Company and a Participant, including without limitation, the estate of such Participant and the executor, administrator or
trustee of such estate, or any receiver or trustee in bankruptcy or representative of the Participant’s creditors. 
  

	12.	Amendment or Termination 

 The Committee may amend, alter, suspend, discontinue or terminate these Terms and Conditions at any time, consistent with the provisions of the Plan. The Committee may amend, alter, suspend, discontinue
or terminate any outstanding SPSU Award, prospectively or retroactively, but no such action may materially adversely affect the rights of the holder of such Award without the consent of the Participant or holder or beneficiary thereof. 

 

	13.	Interpretations 

These Terms and Conditions are subject in all respects to the terms of the Plan. In the event that any provision of these Terms and
Conditions is inconsistent with the terms of the Plan, the terms of the Plan shall govern. Any question concerning administration or interpretation arising under these Terms and Conditions shall be determined by the Committee or its delegate, and
such determination shall be final and conclusive upon all parties in interest. 
  

	14.	Choice of Law 

These Terms and Conditions and any Notice of Grant and SPSU Award Agreement evidencing an SPSU Award shall be governed by and construed
and enforced in accordance with the laws of the State of New York applicable to agreements made and to be performed entirely in New York without regard to the principles of conflicts of law. Each Participant consents to personal jurisdiction in the
state and federal courts of the State of New York in any proceeding concerning an SPSU Award. Any and all disputes between a Participant and the Company or any Affiliate relating to an SPSU Award shall be brought only in a state or federal court of
competent jurisdiction sitting in Manhattan, New York. 

  
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	15.	Section 409A Compliance 

 The payments hereunder in settlement of the SPSU Awards are intended to be exempt from the provisions of Section 409A of the Code, as all such payments will be made no later than the 15th day of the third month after the later of (i) the first
calendar year in which the Participant’s right to the payment is no longer subject to a substantial risk of forfeiture or (ii) the first taxable year of the Company in which the Participant’s right to payment is no longer subject to a
substantial risk of forfeiture. Notwithstanding the foregoing, none of the Company, its Affiliates, or any of their officers, directors, employees or representatives shall be liable to the Participant for any interest, taxes or penalties resulting
from non-compliance with Section 409A of the Code. 

  
 8EX-10.4

 Exhibit 10.4 
 AOL INC. 
 SPSU AWARD AGREEMENT 

WHEREAS, the Company has adopted the Plan and the SPSU Terms and Conditions (each as defined below), the terms of which are hereby
incorporated by reference and made a part of the Notice and this Agreement; and 
 WHEREAS, the Committee has determined
that it would be in the best interests of the Company and its stockholders to grant the segment performance share units (the “SPSUs”) provided for in the Notice to the Participant pursuant to the Plan, the Terms and
Conditions and the terms set forth in the Notice and herein. 
 NOW, THEREFORE, in consideration of the mutual covenants
hereinafter set forth, the parties agree as follows: 
  

	1.	Definitions. Whenever the following terms are used in this Agreement, they shall have the meanings set forth below. Capitalized terms not otherwise
defined herein shall have the same meanings as in the Plan, the Terms and Conditions or the Notice. 

  

	 	(a)	“Cause” means, “Cause” as defined in an employment agreement or offer letter between the Company or any of its Affiliates and the
Participant or, if not defined therein or if there is no such agreement, “Cause” means (i) Participant’s continued failure substantially to perform such Participant’s duties (other than as a result of total or partial
incapacity due to physical or mental illness) for a period of ten (10) days following written notice by the Company or any of its Affiliates to the Participant of such failure, (ii) dishonesty in the performance of the Participant’s
duties, (iii) Participant’s conviction of, or plea of nolo contendere to, a crime constituting (A) a felony under the laws of the United States or any state thereof or (B) a misdemeanor involving moral turpitude,
(iv) Participant’s insubordination, willful malfeasance or willful misconduct in connection with Participant’s duties or any act or omission which is injurious to the financial condition or business reputation of the Company or any of
its Affiliates, or (v) Participant’s breach of any non-competition, non-solicitation or confidentiality provisions to which the Participant is subject. The determination of the Committee as to the existence of “Cause” will be
conclusive on the Participant and the Company. 

  

	 	(b)	“Disability” means, “Disability” as defined in an employment agreement or offer letter between the Company or any of its Affiliates
and the Participant or, if not defined therein or if there shall be no such agreement, “disability” of the Participant shall have the meaning ascribed to such term in the Company’s long-term disability plan or policy, as in effect
from time to time, to the extent that such definition also constitutes such Participant being considered “disabled” under Section 409A(a)(2)(C) of the Code. 	 

	 	(c)	“Good Reason” means “Good Reason” as defined in an employment agreement or offer letter between the Company or any of its Affiliates
and the Participant, if any. 

  

	 	(d)	“Notice” means the Notice of Grant of SPSU Award to which this Agreement is attached and made part of. 

 

	 	(e)	“Participant” means an individual to whom SPSUs have been awarded pursuant to the Plan and the Terms and Conditions and shall have the same
meaning as may be assigned to the terms “Holder” or “Participant” in the Plan. 

  

	 	(f)	“Performance Criteria” means the Performance Criteria set forth in the Notice. 

 

	 	(g)	“Plan” means the AOL Inc. 2010 Stock Incentive Plan, as the same may be amended, supplemented or modified from time to time.

  

	 	(h)	“Shares” means shares of common stock of the Company, $0.01 par value per share. 

 

	 	(i)	“Terms and Conditions” means those SPSU Terms and Conditions governing SPSUs adopted by the Company, as the same may be amended, supplemented or
modified from time to time. 

  

	 	(j)	“Vesting Date” means any Vesting Date set forth in the Notice or this Agreement. 

 

	2.	Grant of SPSUs. The Company grants to the Participant the number of SPSUs set forth in the Notice on the Date of Grant set forth in the Notice (the
“SPSU Award”), subject to the terms, conditions, and adjustments set forth in the Notice, this Agreement, the Terms and Conditions, and the Plan. Each SPSU represents the unfunded, unsecured, contingent right of the Participant to receive
upon vesting either one Share for each vested SPSU or an equivalent amount of cash, or a combination of cash and Shares, as determined in the sole discretion of the Committee. SPSUs do not constitute issued and outstanding Shares for any corporate
purposes and do not confer on the Participant any right to vote on matters that are submitted to a vote of holders of Shares. 

  

	3.	 Dividend Equivalents and Retained Distributions. If on any date while SPSUs are outstanding hereunder the Company shall pay a cash
dividend to the holders of its Shares, for each SPSU held by the Participant on the record date, the Participant shall be credited with a bookkeeping entry an amount of cash equal to the dividend paid on a Share (the “Dividend
Equivalents”). If on any date while SPSUs are outstanding hereunder the Company shall pay any dividend other than a regular cash dividend or make any other distribution on the Shares, the Participant shall be credited with a bookkeeping
entry equivalent to such dividend or distribution for each SPSU held by the Participant on the record date for such dividend or distribution, but the Company shall retain custody of all such dividends and distributions (the “Retained
Distributions”). Dividend Equivalents and Retained Distributions will not bear interest and will be subject to the same performance and vesting conditions as the SPSU to which they relate. If any SPSU is

  
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forfeited for any reason, including as a result of the failure to attain the Performance Criteria, any Dividend Equivalent or Retained Distributions attributable to such SPSU shall be forfeited
on the date on which the underlying SPSU is forfeited. At the time the underlying SPSUs become vested, the Committee shall have discretion to pay any accrued Dividend Equivalents or Retained Distributions either in cash or in Shares. Any Dividend
Equivalents or Retained Distributions payable under this paragraph 3 shall be paid or settled on the settlement date for the underlying SPSU. Notwithstanding anything else contained in this paragraph 3, no payment of Dividend Equivalents or Retained
Distributions shall occur before the first date on which a payment could be made without subjecting the Participant to tax under the provisions of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).

  

	4.	Determination of SPSUs Provisionally Earned, Vesting and Settlement of SPSUs. 

 

	 	(a)	By March 15 of the year following the end of the Performance Period, the Committee shall determine the extent to which SPSUs have been provisionally earned on the
basis of the Company’s actual performance in relation to the Performance Criteria for the Performance Period; provided, however, that the Committee or its delegate may exercise its discretion (reserved under the Terms and Conditions) to reduce
the amount of SPSUs deemed provisionally earned to the extent permitted under the Terms and Conditions. With respect to any SPSU Award granted to a Covered Employee, the Committee shall certify the results in writing in accordance with the Terms and
Conditions and Section 9 of the Plan. Any SPSUs that are not, based on the Committee’s determination, provisionally earned based upon performance shall be immediately canceled and forfeited. The number of SPSUs that are provisionally
earned shall be rounded down to the nearest whole SPSU. Only provisionally earned SPSUs may subsequently become vested and the Company shall have no obligation to settle or otherwise make any payment to the Participant with respect to SPSUs that are
provisionally earned but do not subsequently become vested. 

  

	 	(b)	Subject to the terms and provisions of the Plan, the Terms and Conditions, the Notice and this Agreement, no later than 60 days after any Vesting Date with respect to
any portion of the SPSU Award, the Company shall settle the provisionally earned and vested SPSUs in either one Share for each vested SPSU or the equivalent amount of cash for each vested SPSU, or a combination thereof. The amount of cash will be
determined on the basis of the Fair Market Value of a Share on the Vesting Date. The Company shall also settle at the same time Dividend Equivalents and Retained Distributions covered by that portion of the SPSU Award. In lieu of a fractional Share,
the Participant shall receive a cash payment equal to the Fair Market Value of such fractional Share. Except as otherwise provided in paragraphs 5, 6 and 7, the vesting of such SPSUs and any Dividend Equivalents or Retained Distributions relating
thereto shall occur only upon the achievement of the Performance Criteria set forth in the Notice of Grant and if the Participant has continued in Employment of the Company or any of its Affiliates on the applicable Vesting Date and has continuously
been so employed since the Date of Grant (as defined in the Notice). 

  
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	 	(c)	SPSUs Extinguished. Upon settlement of each vested SPSU in accordance with the Notice and this Agreement, a number of SPSUs equal to the number of SPSUs settled
shall be extinguished and such number of SPSUs will not be considered to be held by the Participant for any purpose. 

  

	 	(d)	Section 409A. Notwithstanding anything else contained in the Notice and this Agreement, no payment in settlement of any vested SPSU shall be paid, issued or
transferred to a Participant before the first date on which a payment could be made without subjecting the Participant to tax under the provisions of Section 409A of the Code. 

 

	5.	Termination of Employment. 

 Subject to the provisions of the Plan, the Terms and Conditions, the Notice and this Agreement and the terms of any employment agreement or offer letter between the Company or any of its Affiliates and
the Participant that provides for the treatment of SPSUs that is more favorable to the Participant than this paragraph 5: 
  

	 	(a)	If the Participant’s Employment with the Company and its Affiliates is terminated by the Participant for any reason other than those described in clause
(b) below prior to a Vesting Date with respect to the Award, then any unvested SPSUs and all Dividend Equivalents and Retained Distributions relating thereto shall be cancelled and completely forfeited on the date of any such termination.

  

	 	(b)	If the Participant’s Employment terminates as a result of his or her death or Disability and paragraph 6 below is not applicable, then the SPSUs for which a
Vesting Date has not yet occurred and all Dividend Equivalents and Retained Distributions relating thereto shall, to the extent the SPSUs were not extinguished prior to such termination of Employment, vest as follows: 

 

	 	(i)	If the Participant’s Employment terminates prior to the end of the Performance Period, such SPSUs will vest pro-rata (based on the number of completed months
during the Performance Period compared to the total number of months in the Performance Period) based on the Company’s actual performance in relation to the Performance Criteria for the Performance Period. For this purpose, the Determination
Date shall be treated as the Vesting Date. 

  

	 	(ii)	If the Participant’s employment terminates following the end of the Performance Period, any provisionally earned but unvested SPSUs shall vest as of the date of
termination of Employment. For this purpose, the Vesting Date shall be the later of (i) the Determination Date or (ii) the date of the Participant’s termination of Employment. 

 

	 	(c)	SPSUs that vest pursuant to this paragraph 5 shall be settled, as soon as practicable, but in no event later than 60 days following such Vesting Date, along with the
Dividend Equivalents and Retained Distributions related thereto. 

  
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	 	(d)	For purposes of this paragraph 5, a temporary leave of absence shall not constitute a termination of Employment or a failure to be continuously employed by the Company
or any Affiliate regardless of the Participant’s payroll status during such leave of absence if such leave of absence is approved in writing by the Company or any Affiliate; provided, that such leave of absence constitutes a bona fide leave of
absence and not a Separation From Service under Treas. Reg. 1.409A-1(h)(1)(i). Notice of any such approved leave of absence should be sent to the Company at 770 Broadway, New York, New York, 10003, attention: General Counsel, but such notice shall
not be required for the leave of absence to be considered approved. 

  

	 	(e)	In the event the Participant’s Employment with the Company or any of its Affiliates is terminated, and subject to paragraph 6 and the terms of any employment
agreement or offer letter entered into by the Participant and the Company that provides for the treatment of SPSUs upon the Participant’s termination of Employment that is more favorable to the Participant than this paragraph 5, the Participant
shall have no claim against the Company with respect to the SPSUs and related Dividend Equivalents and Retained Distributions, if any, other than as set forth in this paragraph 5, the provisions of this paragraph 5 being the sole remedy of the
Participant with respect thereto. 

  

	6.	Acceleration of Vesting Date. In the event a Change in Control, subject to paragraph 7, occurs, to the extent that any such occurrence also constitutes a
change in ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company, within the meaning of Section 409A(a)(2)(A)(v) of the Code (a “409A Change of Control Event”), and the
Award is outstanding upon or within 12 months following the date of such Change in Control, the Participant’s Employment with the Company and its Affiliates is terminated (i) by the Company other than for Cause (unless such termination is
due to death or Disability), (ii) by the Participant for Good Reason (if in an employment agreement or offer letter between the Company or any of its Affiliates and the Participant includes a right of the Participant to resign for Good Reason)
or (iii) on account of death or Disability, then the Award will vest as follows: 

  

	 	(i)	If the Participant’s Employment terminates prior to the end of the Performance Period, then the SPSUs will vest based on the actual performance level achieved as
of the date of the Change in Control determined as set forth in the Notice. For this purpose, the date of Participant’s termination of Employment shall be treated as the Vesting Date. 

 

	 	(ii)	If the Participant’s employment terminates following the end of the Performance Period, any provisionally earned but unvested SPSUs shall vest as of the date of
termination of Employment. For this purpose, the Vesting Date shall be the later of (i) the Determination Date or (ii) the date of the Participant’s termination of Employment. 

  
 5 

 SPSUs that vest pursuant to this paragraph 6 shall be settled, as soon as practicable, but
in no event later than 60 days following such Vesting Date, along with the Dividend Equivalents and Retained Distributions related thereto; provided, however, that notwithstanding the foregoing, to the extent that any such occurrence does not
constitute a 409A Change of Control Event, the SPSUs shall vest as described under this paragraph 6, but the settlement of the vested SPSUs shall be made at the times otherwise provided hereunder as if no Change of Control had occurred. Nothing in
this paragraph 6 shall limit, abridge or otherwise modify the authority of the Committee pursuant to Section 10 of the Plan. 
  

	7.	Limitation on Acceleration. 

  

	 	(a)	Calculation and Possible Benefit Reduction. If at any time or from time to time, it shall be determined by independent tax professionals selected by Company
(“Tax Professional”) that any payment or other benefit due to Participant pursuant to the Notice and this Agreement or otherwise (“Potential Parachute Payment”) is or will, but for the provisions of this paragraph
7, become subject to the excise tax imposed by Section 4999 of the Code or any similar tax payable under any state, local, foreign or other law, but expressly excluding any income taxes and penalties or interest imposed pursuant to
Section 409A of the Code (“Excise Taxes”), then Participant’s Potential Parachute Payment shall be either (a) provided to Participant in full, or (b) provided to Participant as to such lesser extent which would
result in no portion of such benefits being subject to the Excise Taxes, whichever of the foregoing amounts, after taking into account applicable federal, state, local and foreign income and employment taxes, the Excise Tax, and any other applicable
taxes, results in the receipt by Participant, on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under the Excise Taxes (“Payments”).

  

	 	(b)	Implementation of Calculations and Any Benefit Reduction Under Paragraph 7. In the event of a reduction of benefits pursuant to paragraph 7(a), the Tax
Professional shall determine which benefits shall be reduced so as to achieve the principle set forth in paragraph 7(a). For purposes of making the calculations required by paragraph 7(a), the Tax Professional may make reasonable assumptions and
approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of the Code and other applicable legal authority. Company and Participant shall furnish to the Tax Professional such
information and documents as the Tax Professional may reasonably request in order to make a determination under paragraph 7(a). Company shall bear all costs the Tax Professional may reasonably incur in connection with any calculations contemplated
by paragraph 7(a). 

  
 6 

	 	(c)	Potential Subsequent Adjustments. 

  

	 	(i)	If, notwithstanding any calculations performed or reduction in benefits imposed as described in paragraph 7(a), the IRS determines that Participant is liable for Excise
Taxes as a result of the receipt of any payments made pursuant to the Notice and this Agreement or otherwise, then Participant shall be obligated to pay back to Company, within thirty (30) days after a final IRS determination or in the event
that Participant challenges the final IRS determination, a final judicial determination, a portion of the Payments equal to the “Repayment Amount.” The Repayment Amount shall be the smallest such amount, if any, as shall be required to be
paid to Company so that Participant’s net after-tax proceeds with respect to the Payments (after taking into account the payment of the Excise Taxes and all other applicable taxes imposed on such benefits) shall be maximized. The Repayment
Amount shall be zero if a Repayment Amount of more than zero would not result in Participant’s net after-tax proceeds with respect to the Payments being maximized. If the Excise Taxes are not eliminated pursuant to this paragraph 7(c),
Participant shall pay the Excise Taxes. 

  

	 	(ii)	Notwithstanding any other provision of this paragraph 7, if (a) there is a reduction in the payments to Participant as described above in this paragraph 7,
(b) the IRS later determines that Participant is liable for Excise Taxes, the payment of which would result in the maximization of Participant’s net after-tax proceeds (calculated based on the full amount of the Potential Parachute Payment
and as if Participant’s benefits had not previously been reduced), and (c) Participant pays the Excise Tax, then Company shall pay to Participant those payments which were reduced pursuant to paragraph 7(a) or subparagraph 7(c)(i) as soon
as administratively possible after Participant pays the Excise Taxes to the extent that Participant’s net after-tax proceeds with respect to the payment of the Payments are maximized. 

 

	8.	Withholding Taxes. The Participant agrees that, 

  

	 	(a)	Obligation to Pay Withholding Taxes. Upon the vesting of any portion of the Award of SPSUs and the Dividend Equivalents and Retained Distributions
relating thereto, the Participant will be required to pay to the Company any applicable Federal, state, local or foreign withholding tax due as a result of such payment or vesting. The Company’s obligation to make payment or deliver Shares to
settle the vested SPSUs or to pay any Dividend Equivalents or Retained Distributions shall be subject to such payment. The Company and its Affiliates shall, to the extent permitted by law, have the right to deduct from the Dividend Equivalent, cash
or Shares issued in connection with the vesting or Retained Distribution, as applicable, or any payment of any kind otherwise due to the Participant any Federal, state, local or foreign withholding taxes due with respect to such vesting or payment.

  

	 	(b)	 Payment of Taxes with Stock. Subject to the Committee’s right to disapprove any such election and require the Participant to pay the
required withholding tax in cash, the Participant shall have the right to elect to pay the required 

  
 7 

	 	
withholding tax associated with a vesting with any Shares that may be received upon vesting. Unless the Company shall permit another valuation method to be elected by the Participant, Shares used
to pay any required withholding taxes shall be valued at the closing price of a Share as reported on the New York Stock Exchange Composite Tape on the date the withholding tax becomes due (hereinafter called the “Tax Date”).
Notwithstanding anything herein to the contrary, if a Participant who is required to pay the required withholding tax in cash fails to do so within the time period established by the Company, then the Participant shall be deemed to have elected to
pay such withholding taxes with Shares to be received upon vesting. Elections must be made in conformity with conditions established by the Committee from time to time. 

 

	 	(c)	Conditions to Payment of Taxes with Stock. Any election to pay withholding taxes with stock must be made on or prior to the Tax Date and will be
irrevocable once made. 

  

	9.	Changes in Capitalization and Government and Other Regulations. The Award shall be subject to all of the terms and provisions as provided in the Notice,
this Agreement, the Terms and Conditions and the Plan, which are incorporated by reference herein and made a part hereof, including, without limitation, the provisions of Section 10 of the Plan (generally relating to adjustments to the number
of Shares subject to the Award, upon certain changes in capitalization and certain reorganizations and other transactions). 

  

	10.	Return of Value of SPSUs to the Company. A breach by the Participant of any restrictions set forth in the Participant’s Confidentiality and
Invention Assignment Agreement or Confidentiality, Non-Competition and Proprietary Rights Agreement, as applicable, or any confidentiality agreement, employment agreement or offer letter between the Company or any of its Affiliates and the
Participant, a breach by the Participant of the Company’s Standards of Business Conduct, or a breach by the Participant of any of the other restrictions, terms and conditions of the Plan, the Terms and Conditions, including Section 8
thereof, the Notice or this Agreement, with respect to any of the SPSUs or any Dividend Equivalents and Retained Distributions relating thereto, except as waived by the Board or the Committee, will cause such SPSUs and any Dividend Equivalents or
Retained Distributions relating thereto not to be fully earned and unrestricted and will obligate the Participant to return immediately to the Company the gross proceeds received in settlement of any vested SPSUs. Except as the Committee may
otherwise determine in its sole discretion, the Participant shall return Company Shares equal to the number of Shares delivered in settlement of any vested SPSUs if such SPSUs were settled in Shares or Participant shall pay cash equal to the value
of cash paid to Participant in settlement of any vested SPSUs if such payment was made in cash. 

  

	11.	 Right of Company to Terminate Employment. Nothing contained in the Plan, the Terms and Conditions, the Notice or this Agreement shall
confer on any Participant any right to continue in the employ of the Company or any of its Affiliates and the Company and any such Affiliate shall have the right to terminate the Employment of the Participant at any such time, with or without cause,
notwithstanding the fact that some or all of the SPSUs and related Dividend Equivalents and Retained Distributions covered by the 

  
 8 

	 	
Notice and this Agreement may be forfeited as a result of such termination. The granting of the SPSUs under the Notice and this Agreement shall not confer on the Participant any right to any
future Awards under the Plan. 

  

	12.	Notices. Any notice which either party hereto may be required or permitted to give the other shall be in writing and may be delivered personally or by
mail, postage prepaid, addressed to AOL Inc. at 770 Broadway, New York, New York, 1003, attention: General Counsel, and to the Participant at his or her address, as it is shown on the records of the Company or its Affiliate, or in either case to
such other address as the Company or the Participant, as the case may be, by notice to the other may designate in writing from time to time. 

  

	13.	Interpretation and Amendments. The Committee has plenary authority to interpret the Notice, this Agreement, the Plan and the Terms and Conditions, to
prescribe, amend and rescind rules relating thereto and to make all other determinations in connection with the administration of the Plan. The Committee may from time to time modify or amend the Notice and this Agreement in accordance with the
provisions of the Plan and the Terms and Conditions, provided that no such amendment shall adversely affect the rights of the Participant under the Notice or this Agreement without his or her consent. 

 

	14.	Successors and Assigns. The Notice and this Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and
shall be binding upon and inure to the benefit of the Participant and his or her legatees, distributees and personal representatives. 

  

	15.	Copy of the Plan, Terms and Conditions and Documents. The Participant agrees and acknowledges that he or she has received and read a copy of the Terms and
Conditions and the Plan. The Participant acknowledges and agrees that the Participant may be entitled from time to time to receive certain other documents related to the Company, including the Company’s annual report to stockholders and proxy
statement related to its annual meeting of stockholders (which become available each year approximately three months after the end of the calendar year), and the Participant consents to receive such documents electronically through the Internet or
as the Company otherwise directs. 

  

	16.	Governing Law. The Notice and this Agreement shall be governed by, and construed in accordance with, the laws of the State of New York without regard to
any choice of law rules thereof which might apply the laws of any other jurisdiction. The Participant consents to personal jurisdiction in the state and federal courts of the State of New York in any proceeding concerning the SPSU Award. Any and all
disputes between the Participant and the Company or any Affiliate relating to the SPSU Award shall be brought only in a state or federal court of competent jurisdiction sitting in Manhattan, New York. 

 

	17.	Waiver of Jury Trial. To the extent not prohibited by applicable law which cannot be waived, each party hereto hereby waives, and covenants that it will
not assert (whether as plaintiff, defendant or otherwise), any right to trial by jury in any forum in respect of any suit, action, or other proceeding arising out of or based upon the Notice and this Agreement. 

  
 9 

	18.	Submission to Jurisdiction; Service of Process. Any and all disputes between a Participant and the Company or any Affiliate relating to the Award granted
hereunder shall be brought only in a state or federal court of competent jurisdiction sitting in Manhattan, New York and each of the parties hereto hereby irrevocably submits to the jurisdiction of such courts for the purposes of any suit, action or
other proceeding arising out of or based upon the Notice and this Agreement. Each of the parties hereto to the extent permitted by applicable law hereby waives, and agrees not to assert, by way of motion, as a defense, or otherwise, in any such
suit, action or proceeding brought in such courts, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that such suit, action or proceeding in
the above-referenced courts is brought in an inconvenient forum, that the venue of such suit, action or proceedings, is improper or that the Notice and this Agreement may not be enforced in or by such court. Each of the parties hereto hereby
consents to service of process by mail at its address to which notices are to be given pursuant to paragraph 12 hereof. 

  

	19.	 Personal Data. The Company, the Participant’s local employer and the local employer’s parent company or companies may hold,
collect, use, process and transfer, in electronic or other form, certain personal information about the Participant for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan. Participant
understands that the following personal information is required for the above named purposes: his/her name, home address and telephone number, office address (including department and employing entity) and telephone number, e-mail address, date of
birth, citizenship, country of residence at the time of grant, work location country, system employee ID, employee local ID, employment status (including international status code), supervisor (if applicable), job code, title, salary, bonus target
and bonuses paid (if applicable), termination date and reason, tax payer’s identification number, tax equalization code, US Green Card holder status, contract type (single/dual/multi), any shares of stock or directorships held in the Company,
details of all grants of SPSUs (including number of grants, grant dates, vesting type, vesting dates, and any other information regarding SPSUs that have been granted, canceled, vested, or forfeited) with respect to the Participant, estimated tax
withholding rate, brokerage account number (if applicable), and brokerage fees (the “Data”). Participant understands that Data may be collected from the Participant directly or, on Company’s request, from
Participant’s local employer. Participant understands that Data may be transferred to third parties assisting the Company in the implementation, administration and management of the Plan, including the brokers approved by the Company, the
broker selected by the Participant from among such Company-approved brokers (if applicable), tax consultants and the Company’s software providers (the “Data Recipients”). Participant understands that some of these Data
Recipients may be located outside the Participant’s country of residence, and that the Data Recipient’s country may have different data privacy laws and protections than the Participant’s country of residence. Participant understands
that the Data Recipients will receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, 

  
 10 

	 	
administering and managing the Participant’s participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and/or the
subsequent holding of Shares on the Participant’s behalf by a broker or other third party with whom the Participant may elect to deposit any Shares acquired pursuant to the Plan. Participant understands that Data will be held only as long as
necessary to implement, administer and manage the Participant’s participation in the Plan. Participant understands that Data may also be made available to public authorities as required by law, e.g., to the U.S. government. Participant
understands that the Participant may, at any time, review Data and may provide updated Data or corrections to the Data by written notice to the Company. Except to the extent the collection, use, processing or transfer of Data is required by law,
Participant may object to the collection, use, processing or transfer of Data by contacting the Company in writing. Participant understands that such objection may affect his/her ability to participate in the Plan. Participant understands that
he/she may contact the Company’s Stock Plan Administration to obtain more information on the consequences of such objection. 

  

	20.	Compliance With Securities Laws. Notwithstanding any other provision of the Plan, the Terms and Conditions, the Notice or this Agreement to the contrary,
absent an available exemption to registration or qualification, the Company shall not be required to issue or transfer Shares to the Participant in settlement of its obligations herein prior to the completion of any registration or qualification of
the Shares under applicable state and federal securities or other laws, or under any ruling or regulation of any governmental body or national securities exchange that the Committee shall in its sole reasonable discretion determine to be necessary
or advisable. 

  

	21.	Legend on Certificates. The certificates representing the Shares issued or transferred to the Participant by the Company in settlement of its obligations
herein shall be subject to such stop transfer orders and other restrictions as the Committee may deem reasonably advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange
upon which such Shares are listed, any applicable federal or state laws and the Company’s Articles of Incorporation and Bylaws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to
such restrictions. 

  

	22.	Representations, Warranties and Agreements Relating to Securities Laws. As a condition to the Company’s issuance or transfer to the Participant of
any Shares in settlement of its obligations herein, the Participant will make or enter into such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws or with
the Notice and this Agreement. 

  
 11

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