Document:

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                    SEPARATION AGREEMENT AND GENERAL RELEASE

         The parties to this Separation Agreement and General Release
("AGREEMENT") are Robert McNeill ("MCNEILL") and DAOU Systems, Inc. ("DAOU" or
the "COMPANY").

                                    RECITALS

         This Agreement is made with reference to the following facts:

         A. McNeill intends to resign his position as Vice President, Strategic
Initiatives and as an employee with the Company effective immediately (the
"SEPARATION DATE"). As of the Separation Date, McNeill's rights and obligations
as an employee will cease, except as set forth in this Agreement.

         B. McNeill and the Company agree that from the Separation Date through
December 15, 1999 ("CONSULTING PERIOD"), McNeill will provide services to the
Company as a consultant according to the terms and conditions set forth in
Exhibit A to this Agreement (the "CONSULTING AGREEMENT").

         C. The Company and McNeill desire to settle and dispose of, fully and
completely, all claims, demands, and causes of action, known or unknown, which
McNeill may have against the Company or its subsidiaries or affiliates,
including, those rights, claims, demands and causes of action arising out of the
employment relationship, McNeill's Employment Agreement dated January 17, 1997
("EMPLOYMENT AGREEMENT") and the termination of the employment relationship.

         D. In connection with the Employment Agreement McNeill received options
to purchase 140,300 shares of DAOU Common Stock ("COMMON STOCK") (the "1996
OPTIONS") of which, as of the date of this Agreement (i) options to purchase
28,060 shares of Common Stock have been exercised, (ii) options to purchase
28,060 shares of common stock are vested and unexercised (the "VESTED 1996
OPTIONS") and (iii) options to purchase 84,180 shares of Common Stock are
unvested (the "UNVESTED 1996 OPTIONS") of which 28,060 options will vest on
November 11, 1999 (the "NOVEMBER 11, 1999 OPTIONS") assuming the vesting
conditions are otherwise satisfied. The Vested 1996 Options and the Unvested
1996 Options, are collectively referred to below as the "REMAINING 1996
OPTIONS." In addition, McNeill received options to purchase 60,000 shares of the
Company's Common Stock on October 16, 1997 (the "1997 STOCK OPTIONS").

                                    AGREEMENT

         1. CONSIDERATION TO MCNEILL.

                  1.1 SIGNING BONUS. DAOU releases McNeill from his obligation
to repay a pro-rata portion of the Signing Bonus described in Section 4(b) of
the Employment Agreement.

                  1.2 BONUS PAYMENT. DAOU agrees to pay McNeill the bonus for
the third quarter, if any, to which he otherwise would have been entitled under
his existing bonus plan. McNeill will not be entitled to any additional bonus
payment.

<PAGE>

                  1.3 SHORTFALL PAYMENT. DAOU agrees that if, as of November 11,
1999, the Remaining 1996 Options do not have a Net Value (as defined below) of
at least $719,197 (representing the difference between $1,550,000 and the profit
that McNeill has realized as of the date of this Agreement on prior sale of
option shares), DAOU will pay to McNeill an amount equal to the difference
between the Net Value of the Remaining 1996 Options and $719,197 (the "SHORTFALL
PAYMENT "). "NET VALUE" is defined as (i) the aggregate value of the shares of
Common Stock underlying the Remaining 1996 Options (based on the average closing
price of DAOU Common Stock for the seven (7) trading days preceding the date on
which Net Value is determined) less (ii) the aggregate exercise price of the
Remaining 1996 Options. DAOU will have no other payment obligations with respect
to Section 4(d)(4) of the Employment Agreement or otherwise with respect to the
Remaining 1996 Options. McNeill agrees not to exercise any of his Vested 1996
Options or November 11, 1999 Options before November 12, 1999.

                  1.4 PAYMENT DATE. The Shortfall Payment will be made by wire
transfer on or before November 15, 1999.

                  1.5 VESTING OF NOVEMBER 11, 1999 OPTIONS; NO EXTENSION OF
PERIOD TO EXERCISE. The November 11, 1999 Options will vest on November 11, 1999
pursuant to the terms of the Consulting Agreement. The 1996 Vested Options and
the November 11, 1999 Options will terminate if not exercised by December 15,
1999. The 1996 Unvested Options (except for the November 11, 1999 Options) will
terminate as of the Separation Date and the 1997 Stock Options will terminate as
of November 4, 1999.

                  1.6 NO OTHER OBLIGATIONS. Except as specified above, the
Company shall have no other payment obligations of whatever kind to McNeill
pursuant to the Employment Agreement or otherwise.

                  1.7 TAX CONSEQUENCES. The Company has made no representations
to McNeill as to his tax liability on any payment. McNeill acknowledges that he
has consulted with his own professional advisors with respect to all tax
matters, and is not relying on any representation by the Company on any tax
matter. McNeill will be solely responsible for any and all tax responsibility
for the payment by the Company, and for any additional tax responsibility which
may be assessed either against his or against the Company, including any
penalties assessed by any agency against any party, which may arise as a result
of his characterization of any payment. The Company may withhold any payroll and
related taxes required by applicable law.

         2. GENERAL RELEASE. In exchange for the consideration set forth in
Section 1 above, McNeill releases and forever discharges the Company, its
present and former agents, employees, officers, directors, shareholders,
principals, predecessors, alter egos, partners, parents, subsidiaries,
affiliates, attorneys, insurers, successors and assigns, from any and all
claims, demands, grievances, causes of action or suit of any kind arising out
of, or in any way connected with, the dealings between the parties to date,
including the employment relationship and its termination. McNeill also releases
and waives any and all legal or administrative claims arising under any express
or implied contract, law, rule, regulation, or ordinance, including, but not
limited to, Title VII of the Civil Rights Act of 1964, the Fair Labor Standards
Act, the Americans with Disabilities Act, the California Fair Employment and
Housing Act, the Family Rights' Act, the Employee Retirement Income Security Act
of 1974, as amended ("ERISA") or the Age Discrimination in Employment Act of
1967, as amended ("ADEA"). McNeill agrees that, except

<PAGE>

as described in this Agreement, as of the Separation Date and the execution of
this Agreement McNeill is not entitled to any benefits, consideration or sums
from DAOU.

         3. INDEMNIFICATION. Nothing in this Agreement or this General Release
Section may be construed as a waiver by McNeill of any rights he may have for
indemnification under any DAOU insurance policy or written indemnification
agreement for acts by McNeill in his capacity as an officer or director of DAOU.

         4. ACKNOWLEDGMENTS. McNeill acknowledges that with this document he has
been advised in writing of his right to consult with an attorney prior to
executing this Agreement and release. McNeill expressly waives any rights and
benefits he otherwise might have under California Civil Code Section 1542, which
provides:

                  A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
                  DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
                  EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
                  MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

         5. SETTLEMENT. Nothing in this Agreement shall be construed as an
admission by the Company of any liability of any kind to McNeill.

         6. CONFIDENTIALITY AND OTHER AGREEMENTS.

                  6.1 McNeill acknowledges and agrees that he has a continuing
obligation to protect the Company's Confidential Information according to the
terms and conditions of the Company's Confidentiality and Invention Agreement
("CONFIDENTIALITY AGREEMENT") which he signed on November 11, 1996. A copy of
the Confidentiality Agreement is attached as Exhibit B.

                  6.2 McNeill agrees to keep confidential the terms of this
Agreement and agrees to refrain from disclosing any information regarding this
Agreement to any third party unless required to do so (a) by a regulatory body
(e.g. filings with the Securities Exchange Commission ("SEC"); (b) in financial
disclosures to auditors or in audited financial statements; (c) under oath, if
properly ordered, in a court of competent jurisdiction; (d) to his wife; or (e)
previously disclosed publicly by the Company to the extent so disclosed.
Employee agrees to notify the Company in writing upon first notification that he
may be required by law to disclose any information deemed confidential by this
Agreement. Notice must be provided in sufficient time for the party receiving
notice to oppose or otherwise respond to the request.

                  6.3 McNeill agrees that he will not interfere with or
otherwise act adverse to the business affairs of the Company, including, without
limitation, making disparaging remarks, either orally or in writing, to any
person concerning the Company or the Company's business.

         7. REPRESENTATIONS AND WARRANTIES. The parties represent and warrant as
follows:

                  7.1 McNeill has read this Agreement, understands its contents,
and understands its legal effect and binding nature. McNeill further
acknowledges that he is acting voluntarily and of his own free will in executing
this Agreement.

                  7.2 McNeill is not relying upon any statement, representation
or promise of the Company, or any of its officers, directors, agents, partners,
employees, consultants,

<PAGE>

representatives or attorneys in executing this Agreement or in making this
settlement except as expressly stated in this Agreement.

                  7.3 McNeill acknowledges that with this document he has been
given a twenty-one (21) day period in which to consider entering into the
release of the ADEA claims, if any. In addition, McNeill acknowledges that he
has been informed that he may revoke a signed waiver of the ADEA claims for up
to seven days after executing this Agreement.

         8. CLAIMS ARISING OUT OF THIS AGREEMENT.

                  8.1 McNeill agrees that should he allege a violation of the
terms of this Agreement, any such dispute and the arbitrability of such dispute
shall be settled exclusively by arbitration in San Diego, California by one or
more experienced labor and employment law arbitrators licensed to practice law
in California and selected in accordance with the Employment Arbitration Rules
of the American Arbitration Association. The arbitrator(s) shall not have the
power to modify any of the provisions of this Agreement. The arbitrator(s)'
decision shall be final and binding upon the parties and judgment upon the award
rendered by the arbitrator(s) may be entered in any court having jurisdiction.
The arbitrator will decide how the costs of arbitration should be split.

                  8.2 In the event of any arbitration arising out of or relating
to this Agreement, its breach or enforcement, including an action for
declaratory relief, the prevailing party in such action or proceedings shall be
entitled to receive his or its damages, court costs, and reasonable
out-of-pocket expenses including reasonable attorneys' fees. Such recovery shall
include court costs, reasonable out-of-pocket expenses, and attorneys' fees on
appeal, if any. The arbitrator(s) or court shall determine who is the prevailing
party, whether or not the dispute or controversy proceeds to final judgment.
Both McNeill and the Company expressly acknowledge this paragraph is not
intended to in any way alter the parties' agreement that arbitration shall be
the exclusive method of resolving any dispute related to this Agreement or
McNeill's employment with the Company.

         9. MISCELLANEOUS.

                  9.1 This Agreement shall be deemed to have been executed and
delivered within the State of California, and its rights and obligations shall
be construed and enforced in accordance with and governed by, the laws of
California.

                  9.2 McNeill and the Company understand and agree that this
Agreement shall bind and benefit their heirs, employees, parent corporation,
subsidiaries, affiliates, controlled corporations, sister corporations, agents,
representatives, predecessors, successors and assigns. The Company's successors
shall include (without limitation) any person, corporation or other entity who
or which enters into a Corporate Transaction with the Company (hereinafter
"Company Successor"). For purposes of this Agreement, a "Corporate Transaction"
is defined to mean a transaction in which any person, corporation or other
entity acquires, directly or indirectly, all or substantially all of the stock,
business or assets of the Company, whether by way of merger, consolidation,
sale, transfer or otherwise.

                  9.3 This Agreement may be amended only by an agreement in
writing designated as an amendment to this Agreement and signed by the parties
hereto.

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                  9.4 This Agreement may be executed in counterparts, and when
each party has signed and delivered at least one such counterpart, each
counterpart shall be deemed an original, and, when taken together with the other
executed counterparts, shall constitute one Agreement, which shall be binding
upon and effective as to all parties.

DATED:  October 4, 1999                    /s/ ROBERT MCNEILL
                                           -------------------------------
                                           ROBERT MCNEILL

                                           DAOU SYSTEMS, INC.

DATED:  October 4, 1999                By: /s/ LARRY GRANDIA
                                           -------------------------------
                                           LARRY GRANDIA
                                           CHIEF EXECUTIVE OFFICER

<PAGE>

                                    EXHIBIT A

                              CONSULTING AGREEMENT

         This Consulting Agreement ("CONSULTING AGREEMENT") is made as of
October 4, 1999 ("EFFECTIVE DATE") by and between DAOU Systems, Inc., a Delaware
corporation (the "COMPANY"), and Robert McNeill ("MCNEILL").

                                    RECITALS

         Mr. Daou and the Company agree that from October 4, 1999 through
December 15, 1999 ("CONSULTING PERIOD"), McNeill will provide services to the
Company as a consultant according to the terms and conditions set forth below.

                                    AGREEMENT

         The parties to this Agreement, intending to be legally bound, agree as
follows:

         1. CONSULTING PERIOD AND DUTIES.

                  1.1 ENGAGEMENT. During the Consulting Period, the Company will
retain McNeill to provide the Company such consulting services by telephone as
shall be reasonably requested by the Chief Executive Officer of the Company (the
"CONSULTING SERVICES"), and Consultant hereby agrees to provide the Consulting
Services to the Company in an amount not to exceed twenty (20) hours for that
time period.

                  1.2 TERM. Consultant hereby agrees to provide the Consulting
Services to the Company for a period commencing October 4, 1999 and ending
December 15, 1999 (the "CONSULTING PERIOD"). The Consulting Period may be
terminated prior to December 15, 1999 (a) by McNeill for any reason or (b) by
the Company for failure by McNeill to provide Consulting Services or for
violation of this Section or Section 3 below, upon ten (10) days written notice
by either party. If the Agreement is so terminated prior to completion of the
Consulting Period, McNeill no longer is eligible for the Consideration described
in Section 1.5 of the Severance and Release Agreement between McNeill and the
Company (the "AGREEMENT").

                  1.3 CONSIDERATION. As compensation in full for the Consulting
Services to be rendered by McNeill (a) McNeill's vesting schedule with respect
to the November 11, 1999 Options (as described in the Agreement) will be
extended through November 11, 1999 and the November 11, 1999 Options will vest
on that date, and (b) the exercise period for the Vested Options (as defined in
the Agreement) and the November 11, 1999 Options will be terminated on December
15, 1999.

                  1.4 RELATIONSHIP. During the Consulting Period, it is
understood and agreed that McNeill's services will be performed as an
independent contractor, and he is not authorized to act, and will not act as
an employee or agent of the Company. McNeill is in no way authorized by this
Agreement to make any contract, agreement, warranty or representation, or to
create any obligation, express or implied, on behalf of the Company, and
agrees not to do so. During the Consulting Period, McNeill is solely
responsible for all taxes, withholdings, and other statutory obligations
arising from his receipt of the Consideration described in Section 1.3 above.
McNeill agrees to defend, indemnify and hold the Company harmless from any
and all claims

<PAGE>

made by any entity due to an alleged failure by McNeill to satisfy any such
tax or withholding obligations.

         2. OTHER EMPLOYMENT DURING THE CONSULTING PERIOD. McNeill otherwise may
obtain employment with another employer or may provide consulting services to
another company so long as he abides by the terms and conditions of this
Agreement and the Company's Confidentiality and Proprietary Information
Agreement (Exhibit B to the Agreement).

         3. GENERAL PROVISIONS.

                  3.1 WAIVER. The rights and remedies of the parties to this
Agreement are cumulative and not alternative. Neither the failure nor any delay
by either party in exercising any right, power, or privilege under this
Agreement will operate as a waiver of such right, power, or privilege, and no
single or partial exercise of any such right, power, or privilege will preclude
any other or further exercise of such right, power, or privilege or the exercise
of any other right, power, or privilege. To the maximum extent permitted by
applicable law, (a) no claim or right arising out of this Agreement can be
discharged by one party, in whole or in part, by a waiver or renunciation of the
claim or right unless in writing signed by the other party; (b) no waiver that
may be given by a party will be applicable except in the specific instance for
which it is given; and (c) no notice to or demand on one party will be deemed to
be a waiver of any obligation of such party or of the right of the party giving
such notice or demand to take further action without notice or demand as
provided in this Agreement.

                  3.2 BINDING EFFECT; DELEGATION OF DUTIES PROHIBITED. This
Agreement shall inure to the benefit of, and shall be binding upon, the parties
hereto and their respective successors, assigns, heirs, and legal
representatives, including any entity with which the Company may merge or
consolidate or to which all or substantially all of its assets may be
transferred. The duties and covenants of Consultant under this Agreement, being
personal, may not be delegated.

                  3.3 NOTICES. All notices, consents, waivers, and other
communications under this Agreement must be in writing and will be deemed to
have been duly given when (a) delivered by hand (with written confirmation of
receipt), (b) sent by facsimile (with written confirmation of receipt), provided
that a copy is mailed by registered mail, return receipt requested or (c) when
received by the addressee, if sent by a nationally recognized overnight delivery
service (receipt requested), in each case to the appropriate addresses and
facsimile numbers set forth in the Agreement.

                  3.4 ENTIRE AGREEMENT; AMENDMENTS. This Agreement contains the
entire agreement between the parties with respect to the subject matter hereof
and supersede all prior agreements and understandings, oral or written, between
the parties hereto with respect to the subject matter hereof. This Agreement may
not be amended orally, but only by an agreement in writing signed by the parties
hereto.

                  3.5 GOVERNING LAW. This Agreement shall be interpreted and
enforced in accordance with the laws of the State of California.

                  3.6 BINDING ARBITRATION. Any dispute or claim arising out of
this agreement shall be subject to final and binding arbitration. The
arbitration will be conducted by one

<PAGE>

arbitrator who is a member of the American Arbitration Association ("AAA") or of
the Judicial Arbitration and Mediation Services ("JAMS") and will be governed by
the Model Employment Arbitration rules of AAA. The arbitration shall be held in
San Diego, California. The arbitrator shall have all authority to determine the
arbitrability of any claim and enter a final and binding judgment at the
conclusion of any proceedings in respect of the arbitration. Any final judgment
only may be appealed on the grounds of improper bias or improper conduct of the
arbitrator. Notwithstanding any rule of AAA to the contrary, the parties will be
entitled to conduct discovery (i.e. investigation of facts through depositions
and other means) which shall be governed by the Code of Civil Procedure section
1283.05. The arbitrator shall have all power and authority to enter orders
relating to such discovery as are allowed under the Code. The arbitrator will
apply California substantive law in all respects. The party prevailing in the
resolution of any such claim will be entitled, in addition to such other relief
as may be granted, to an award of all actual attorneys fees and costs incurred
in pursuit of the claim, without regard to any statute, schedule, or rule of
court purported to restrict such award.

                  3.7 ATTORNEYS' FEES. Unless otherwise specifically provided in
this Agreement, in the event of any controversy, claim or dispute between any of
the parties arising out of or relating to this Agreement, or the breach thereof,
the prevailing party shall be entitled to recover, from the losing party,
reasonable attorneys' fees, expenses and costs actually incurred in the case of
arbitration of any such controversy, claim or dispute, or by the court in which
any such controversy, claim or dispute is resolved.

                  3.8 SECTION HEADINGS, CONSTRUCTION. The section headings in
this Agreement are provided for convenience only and will not affect its
construction or interpretation. All references to "section" or "sections" refer
to the corresponding section or sections of this Agreement unless otherwise
specified. All words used in this Agreement will be construed to be of such
gender or number as the circumstances require. Unless otherwise expressly
provided, the word "including" does not limit the preceding words or terms.

                  3.9 SEVERABILITY. If any provision of this Agreement is held
invalid or unenforceable by any court of competent jurisdiction, the other
provisions of this Agreement will remain in full force and effect. Any provision
of this Agreement held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or unenforceable.

<PAGE>

                  3.10 COUNTERPARTS. This Agreement may be executed in one or
more counterparts, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute
one and the same agreement.

         IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first above written.

DAOU SYSTEMS, INC.:

By  /s/ Larry D. Grandia                     /s/ Robert McNeill
    ---------------------------              -------------------------
    Larry D. Grandia, President              Robert McNeillPrepared by MERRILL CORPORATION www.edgaradvantage.com

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Exhibit 10.1

 
INDEMNIFICATION AGREEMENT  

    This Indemnification Agreement ("Agreement") is made as of                        , by and
between Yahoo! Inc., a Delaware corporation (the
"Company"), and                        ("Indemnitee").

  RECITALS  

    The Company and Indemnitee recognize the increasing difficulty in obtaining directors' and officers' liability insurance, the increases in the cost of such
insurance and the general reductions in the coverage of such insurance.

    The
Company and Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting officers and directors to expensive litigation risks at the same
time as the availability and coverage of liability insurance has been severely limited.

    Indemnitee
does not regard the current protection available as adequate under the present circumstances, and Indemnitee and other officers and directors of the Company may not be
willing to continue to serve as officers and directors without additional protection.

    The
Company desires to attract and retain the services of highly qualified individuals, such as Indemnitee, to serve as officers and directors of the Company and to indemnify its
officers and directors so as to provide them with the maximum protection permitted by law.

  AGREEMENT  

    In consideration of the mutual promises made in this Agreement, and for other good and valuable consideration, receipt of which is hereby acknowledged, the
Company and Indemnitee hereby agree as follows:

    1.  Indemnification.  

    (a)  General Agreement.  The Company shall indemnify Indemnitee if Indemnitee is or was a party to or
witness or other participant in, or is threatened to be made a party to or witness or other participant to any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (including an action by or in the right of the Company) by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company, or any
subsidiary of the Company, by reason of any action or inaction on the part of Indemnitee while an officer or director or by reason of the fact that Indemnitee is or was serving at the request of the
Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees and costs), judgments,
fines, any interest, assessments, and other charges and amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld)
actually and reasonably incurred by Indemnitee in connection with such action, suit or proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not
opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe Indemnitee's conduct was unlawful. The termination of any
action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself,
create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to
any criminal action or proceeding, had reasonable cause to believe that Indemnitee's conduct was unlawful.

1

    (b)  Mandatory Payment of Expenses.  To the extent that Indemnitee has been successful on the merits or
otherwise in defense of any action, suit or proceeding referred to in Subsection (a) of this Section 1 or the defense of any claim, issue or matter therein, Indemnitee shall be
indemnified against expenses (including attorneys' fees) actually and reasonably incurred by Indemnitee in connection therewith.

    2.  No Employment Rights.  Nothing contained in this Agreement is intended to create in Indemnitee any
right to continued employment.

    3.  Expenses; Indemnification Procedure.  

    (a)  Advancement of Expenses.  Subject to the terms and conditions of this Agreement, the Company shall
advance all expenses incurred by Indemnitee in connection with the investigation, defense, settlement or appeal of any civil or criminal action, suit or proceeding referenced in Section
1(a) hereof (including amounts actually paid in settlement of any such action, suit or proceeding). Indemnitee hereby undertakes to repay such amounts advanced only if, and to the extent that,
it shall ultimately be determined that Indemnitee is not entitled to be indemnified by the Company as authorized hereby. Any advances made hereunder shall be paid by the Company to Indemnitee within
twenty (20) days following delivery of a written request therefor by Indemnitee to the Company.

    (b)  Notice/Cooperation by Indemnitee.  Indemnitee shall, as a condition precedent to his or her right to
be indemnified under this Agreement, give the Company notice in writing as soon as practicable of any claim made against Indemnitee for which indemnification will or could be sought under this
Agreement. Notice to the Company shall be directed to the Chief Executive Officer of the Company at the address shown on the signature page of this Agreement (or such other address as the Company
shall designate in writing to Indemnitee). Notice shall be deemed received three (3) business days after the date postmarked if sent by domestic certified or registered mail, properly
addressed, otherwise notice shall be deemed received when such notice shall actually be received by the Company. In addition, Indemnitee shall give the Company such information and cooperation as it
may reasonably require and as shall be within Indemnitee's power.

    (c)  Procedure.  Any indemnification and advances provided for in Section 1 shall be made no later than
forty-five (45) days after receipt of the written request of Indemnitee. If a claim under this Agreement, under any statute, or under any provision of the Company's Certificate of Incorporation or
Bylaws providing for indemnification, is not paid in full by the Company within forty-five (45) days after a written request for payment thereof has first been received by the Company, Indemnitee may,
but need not, at any time thereafter bring an action against the Company to recover the unpaid amount of the claim and, subject to Section 13 of this Agreement, Indemnitee shall also be entitled to be
paid for the expenses (including attorneys' fees and interest, at the Bank of America prime rate in effect on the date of Indemnitee's written request, on the unpaid amount of the claim) of bringing
such action. It shall be a defense to any such action (other than an action brought to enforce a claim for expenses incurred in connection with any action, suit or proceeding in advance of its final
disposition) that Indemnitee has not met the standards of conduct which make it permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed. Indemnitee shall be
entitled to receive interim payments of expenses pursuant to Subsection 3(a) unless and until such defense may be finally adjudicated by court order or judgment from which no further right of
appeal exists. It is the parties'
intention that if the Company contests Indemnitee's right to indemnification, the question of Indemnitee's right to indemnification shall be for the court to decide, and neither the failure of the
Company (including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel, or its stockholders) to have made a determination that indemnification of
Indemnitee is proper in the circumstances because Indemnitee has met the applicable standard of conduct required by applicable law, nor an actual determination by the Company (including its Board of
Directors, any committee or subgroup of the Board of Directors, independent

2

legal
counsel, or its stockholders) that Indemnitee has not met such applicable standard of conduct, shall create a presumption that Indemnitee has or has not met the applicable standard of conduct.

    (d)  Notice to Insurers.  If, at the time of the receipt of a notice of a claim pursuant to
Section 3(b) hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in
accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all
amounts payable as a result of such proceeding in accordance with the terms of such policies.

    (e)  Selection of Counsel.  In the event the Company shall be obligated under Section 3(a) hereof
to pay the expenses of any proceeding against Indemnitee, the Company, if appropriate, shall be entitled to assume the defense of such proceeding, with counsel approved by Indemnitee, upon the
delivery to Indemnitee of written notice of its election so to do. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company
will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the same proceeding, provided that (i) Indemnitee shall have
the right to employ his or her counsel in any such proceeding at Indemnitee's expense; and (ii) if (A) the employment of counsel by Indemnitee has been previously authorized by the
Company, (B) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the conduct of any such defense, or (C) the Company shall
not, in fact, have employed counsel to assume the defense of such proceeding, then the fees and expenses of Indemnitee's counsel shall be at the expense of the Company.

    (f)  (i) A
Change in Control shall be deemed to have occurred if (A) any "person" (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act")), is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities
of the Company representing 30% or more of the total voting power represented by the Company's then outstanding voting securities or (B) during any period of two (2) consecutive years,
individuals who at the beginning of such period constitute the Board and any new director whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of
at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease
for any reason to constitute a majority of the Board, or (C) the stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other than a merger or
consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least 80% of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or
consolidation, or (D) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company (in one transaction or a series
of transactions) of all or substantially all of the Company's assets.

    (ii) With
respect to all matters arising after a Change in Control (other than a Change in Control approved by a majority of the directors on the Board who were
directors immediately prior to such Change in Control) concerning the rights of Indemnitee to indemnity payments and advancement of expenses under this Agreement, the Company shall seek legal advice
only from independent counsel selected by Indemnitee and approved by the Company (which approval shall not be unreasonably withheld) (the "Independent Counsel"), and who has not otherwise performed
services for the Company or the Indemnitee (other than in connection with indemnification matters) within the last five years. The Independent Counsel shall not include any person who, under the
applicable standards of professional conduct then prevailing, would have a

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conflict
of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement. Such counsel, among other things, shall render its written
opinion to the Company and Indemnitee as to whether and to what extent the Indemnitee should be permitted to be indemnified under applicable law. The Company agrees to pay the reasonable fees of the
Independent Counsel and to indemnify fully such counsel against any and all expenses (including attorneys' fees), claims, liabilities, loss, and damages arising out of or relating to this Agreement or
the engagement of Independent Counsel pursuant hereto.

    (g)  Establishment of Trust.  In the event of a Change in Control (other than a Change in Control
approved by a majority of the directors on the Board who were directors immediately prior to such Change in Control) the Company shall, upon written request by Indemnitee, create a trust for the
benefit of the Indemnitee and from time to time upon written request of Indemnitee shall fund the trust in an amount sufficient to satisfy any and all expenses reasonably anticipated at the time of
each such request to be incurred in connection with investigating, preparing for, participating in, and/or defending any proceeding relating to any indemnifiable event covered herein. The amount or
amounts to be deposited in the trust pursuant to the foregoing funding obligation shall be determined by the Independent Counsel. The terms of the trust shall provide that (i) the trust shall
not be revoked or the principal thereof invaded without the written consent of the Indemnitee, (ii) the trustee shall advance, within ten business days of a request by the Indemnitee, any and
all expenses to the Indemnitee (and the Indemnitee hereby agrees to reimburse the trust under the same circumstances for which the Indemnitee would be required to reimburse the Company under Section
3(a) of this Agreement), (iii) the trust shall continue to be funded by the Company in accordance with the funding obligation set forth above, (iv) the trustee shall promptly pay
to the Indemnitee all amounts for which the Indemnitee shall be entitled to indemnification pursuant to this Agreement or otherwise, and (v) all unexpended funds in the trust shall revert to
the Company upon a final determination by the Independent Counsel or a court of competent jurisdiction, as the case may be, that the Indemnitee has been fully indemnified under the terms of this
Agreement. The trustee shall be chosen by the Indemnitee. Nothing in this Section 3(g) shall relieve the Company of any of its obligations under this Agreement. All income earned on the assets
held in the trust shall be reported as income by the Company for federal, state, local, and foreign tax purposes. The Company shall pay all costs of establishing and maintaining the trust and shall
indemnify the trustee against any and all expenses (including attorneys' fees), claims, liabilities, loss, and damages arising out of or relating to this Agreement or the establishment and maintenance
of the trust.

    4.  Additional Indemnification Rights; Nonexclusivity.  

    (a)  Scope.  Notwithstanding any other provision of this Agreement, the Company hereby agrees to
indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification is not specifically authorized by the other provisions of this Agreement, the Company's
Certificate of Incorporation, the Company's Bylaws or by statute. In the event of any change in any applicable law, statute or rule which narrows the right of a Delaware corporation to
indemnify a member of its board
of directors or an officer, such changes, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement shall have no effect on this Agreement or the
parties' rights and obligations hereunder.

    (b)  Nonexclusivity.  The indemnification provided by this Agreement shall not be deemed exclusive of any
rights to which Indemnitee may be entitled under the Company's Certificate of Incorporation, its Bylaws, any agreement, any vote of stockholders or disinterested members of the Company's Board of
Directors, the General Corporation Law of the State of Delaware, or otherwise, both as to action in Indemnitee's official capacity and as to action in another capacity while holding such office. The
indemnification provided under this Agreement shall continue as to Indemnitee for any action taken or not taken while serving in an indemnified capacity even though he or she may have ceased to serve
in such capacity at the time of any action, suit or other covered proceeding.

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    5.  Partial Indemnification.  If Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for some or a portion of the expenses, judgments, fines or penalties actually or reasonably incurred by him or her in the investigation, defense, appeal or settlement of
any civil or criminal action, suit or proceeding, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such expenses, judgments, fines
or penalties to which Indemnitee is entitled.

    6.  Mutual Acknowledgment.  Both the Company and Indemnitee acknowledge that in certain instances,
Federal law or applicable public policy may prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise. Indemnitee understands and acknowledges that the
Company has undertaken or may be required in the future to undertake with the Securities and Exchange Commission to submit the question of indemnification to a court in certain circumstances for a
determination of the Company's right under public policy to indemnify Indemnitee.

    7.  Officer and Director Liability Insurance.  The Company shall, from time to time, make the good faith
determination whether or not it is practicable for the Company to obtain and maintain a policy or policies of insurance with reputable insurance companies providing the officers and directors of the
Company with coverage for losses from wrongful acts, or to ensure the Company's performance of its indemnification obligations under this Agreement. Among other considerations, the Company will weigh
the costs of obtaining such insurance coverage against the protection afforded by such coverage. Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain such
insurance if the Company determines in good faith that such insurance is not necessary or is not reasonably available, if the premium costs for such insurance are disproportionate to the amount of
coverage provided, if the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by similar insurance maintained by a
subsidiary or parent of the Company. However, the Company's decision whether or not to adopt and maintain such insurance shall not affect in any way its obligations to indemnify its officers and
directors under this Agreement or otherwise. In all policies of director and officer liability insurance, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same
rights and benefits as are accorded to the most favorably insured of the Company's directors, if Indemnitee is a director; or of the Company's officers, if Indemnitee is not a director of the Company,
but is an officer; or of the Company's key employees, if Indemnitee is not an officer or director, but is a key employee.

    8.  Severability.  Nothing in this Agreement is intended to require or shall be construed as requiring
the Company to do or fail to do any act in violation of applicable law. The Company's inability, pursuant to court order, to perform its obligations under this Agreement shall not constitute a breach
of this Agreement. The provisions of this Agreement shall be severable as provided in this Section 8. If this
Agreement or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify Indemnitee to the full extent permitted by any
applicable portion of this Agreement that shall not have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable in accordance with its terms.

    9.  Exceptions.  Any other provision herein to the contrary notwithstanding, the Company shall not be
obligated pursuant to the terms of this Agreement:

    (a)  Claims Initiated By Indemnitee.  To indemnify or advance expenses to Indemnitee with respect to
proceedings or claims initiated or brought voluntarily by Indemnitee and not by way of defense, except with respect to proceedings brought to establish or enforce a right to indemnification under this
Agreement or any other statute or law or otherwise as required under Section 145 of the Delaware General Corporation Law, but such indemnification or advancement of expenses may be provided by the
Company in specific cases if the Board of Directors has approved the initiation or bringing of such suit.

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    (b)  Lack of Good Faith.  To indemnify Indemnitee for any expenses incurred by the Indemnitee with
respect to any proceeding instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction determines that each of the material assertions made by the Indemnitee
in such proceeding was not made in good faith or was frivolous.

    (c)  Insured Claims.  To indemnify Indemnitee for expenses or liabilities of any type whatsoever
(including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and amounts paid in settlement) to the extent such expenses or liabilities have been paid directly to Indemnitee by
an insurance carrier under a policy of officers' and directors' liability insurance maintained by the Company.

    (d)  Claims Under Section 16(b).  To indemnify Indemnitee for expenses and the payment of profits arising
from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

    10.  Construction of Certain Phrases.  

    (a) For
purposes of this Agreement, references to the "Company" shall include any constituent corporation (including any
constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, and
employees or agents, so that if Indemnitee is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a
director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement
with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence had continued.

    (b) For
purposes of this Agreement, references to "Other Enterprises", shall include employee benefit plans; references
to "Fines" shall include any excise taxes assessed on Indemnitee with respect to an employee benefit plan; and references to
"Serving at the Request of the Company" shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or
involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants, or beneficiaries; and if Indemnitee acted in good faith and in a manner
Indemnitee reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner
"Not opposed to the Best Interests of the Company" as referred to in this Agreement.

    11.  Successors and Assigns.  This Agreement shall be binding upon the Company and its successors and
assigns, and shall inure to the benefit of Indemnitee and Indemnitee's estate, heirs, legal representatives and assigns.

    12.  Attorneys' Fees.  In the event that any action is instituted by Indemnitee under this Agreement to
enforce or interpret any of the terms hereof, Indemnitee shall be entitled to be paid all court costs and expense, including reasonable attorneys' fees, incurred by Indemnitee with respect to such
action. The Company hereby consents to service of process and to appear in any such action. In the event of an action instituted by or in the name of the Company under this Agreement or to enforce or
interpret any of the terms of this Agreement, Indemnitee shall be entitled to be paid all court costs and expenses, including attorneys' fees and costs, incurred by Indemnitee in defense of such
action (including with respect to Indemnitee's counterclaims and cross-claims made in such action).

    13.  Notice.  All notices, requests, demands and other communications under this Agreement shall be in
writing and shall be deemed duly given (i) if delivered by hand and receipted for by the party addressee, on the date of such receipt, or (ii) if mailed by domestic certified or
registered mail with postage prepaid, on the third business day after the date postmarked. Addresses for notice to either party are as shown on the signature page of this Agreement, or as subsequently
modified by written notice.

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    14.  Consent to Jurisdiction.  The Company and Indemnitee each hereby irrevocably consent to the
jurisdiction of the courts of the State of California for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement and agree that any action instituted
under this Agreement shall be brought only in the state courts of the State of California.

    15.  Choice of Law.  This Agreement shall be governed by and its provisions construed in accordance with
the laws of the State of Delaware, as applied to contracts between Delaware residents entered into and to be performed entirely within Delaware.

    16.  Modification.  This Agreement constitutes the entire agreement between the parties hereto with
respect to the subject matter hereof. All prior negotiations, agreements and understandings between parties with respect thereto are superseded hereby. This Agreement may not be modified or amended
except by an instrument in writing signed by or on behalf of the parties hereto.

    The
parties hereto have executed this Agreement as of the day and year set forth on the first page of this Agreement.

	 	 	 	 	YAHOO! INC.
	 

 	 
 	 

 	 
 	 

By:	 
 	 

	 

 	 
 	 

 	 
 	 

Title:	 
 	 

	 

 	 
 	 

 	 
 	 

Address:	 
 	 

3420 Central Expressway
	 	 	 	 	 	 	Santa Clara, CA 95051
	 

Agreed to and Accepted:

INDEMNITEE:	 
 	 

 	 
 	 

 
	 

 (Signature)	 
 	 

 	 
 	 

 
	 

Address:	 
 	 

	 
 	 

 	 
 	 

 
	 

	 
 	 

 	 
 	 

 

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INDEMNIFICATION AGREEMENT

RECITALS

AGREEMENT

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