Employment Offer Letter pot

7/19/12 Employment Offer Letter 1/12www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm EX-10.1 2 d384719dex101.htm EMPLOYMENT OFFER LETTER Exhibit10.1 ExecutionCopy Yahoo!Inc. 701FirstAvenue Sunnyvale,California July16,2012 MarissaMayer DearMarissa: OnbehalfofYahoo!Inc.(“Yahoo!”orthe“Company”),IampleasedtoofferyouthepositionofPresidentandChief ExecutiveOfficer,reportingtotheCompany’sBoardofDirectors(the“Board”),workingattheCompany’sheadquartersat 701FirstAvenueinSunnyvale,California.YouwillbeappointedtotheBoarduponyourcommencementof employment.YourappointmentsaresubjecttoapprovalbytheBoardandyourcompensationpackageasoutlinedhereinis subjecttoapprovaloftheCompensationCommitteeoftheBoard(“CompensationCommittee”).Forpurposesofthisletter, yourfirstdayofworkatYahoo!willbeconsideredyour“EmploymentStartDate.”YourEmploymentStartDatewillbe July17,2012. BaseSalary.Yourstartingannualbasesalarywillbe$83,333.33permonth($1,000,000.00annually),lessapplicabletaxes, deductionsandwithholdings,paidsemimonthlyandsubjecttoannualreview.Yahoo!’sregularlyscheduledpaydaysare currentlyonthe10 and25 ofeverymonth. IncentiveCompensation.YoualsowillbeeligibletoparticipateintheannualExecutiveIncentivePlan(“EIP”),withatarget incentiveof200%ofyourannualbasesalary(the“TargetAward”),anda2012maximumof400%ofyourannualbasesalary ifyouexceedyourtargets,proratedbasedontheperiodoftimeyouareemployedatYahoo!inanEIPeligibleposition duringtherelevantCompanyfiscalyear,lessapplicabletaxes,deductions,andwithholdings.Targetincentivesdonot constituteapromiseofpayment.ToqualifyfortheEIP th th 7/19/12 Employment Offer Letter 2/12www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm incentivebonus,youmustremainemployedwiththeCompanythroughthedatethattheincentivebonusispaid(asspecified intheEIP).YouractualEIPpayoutwilldependonYahoo!financialperformanceand,totheextentapplicable,the CompensationCommittee’sassessmentofyourindividualperformance,andanyEIPpayoutissubjectto,andgovernedby, thetermsandrequirementsoftheEIPdocument.EIPbonusesareusuallypaidinMarchorApriloftheyearafterthefiscal yearforwhichtheyareearned. AnnualEquityAwards.SubjecttoapprovalbytheCompensationCommittee,asaseniorleaderofYahoo!,withrespectto the2012performanceyear,youwillbeentitledtoreceiveequityawardsundertheYahoo!Inc.1995StockPlan(the“Stock Plan”)withanaggregateawardvalueof$12million(the“2012AnnualGrant”),withfiftypercent(50%)ofsuch2012Annual GrantintheformofRestrictedStockUnits(the“2012RSUs”)andtheremainingfiftypercent(50%)ofsuch2012Annual GrantintheformofoptionstopurchasetheCompany’scommonstock(the“2012StockOptions”).The2012RSUsshallbe awardedtoyouonYahoo!’sfirstregularlyscheduledgrantdateafteryourEmploymentStartDate,whichisJuly26,2012(the “NextGrantDate”).Thenumberof2012StockOptionsshallbecalculatedontheNextGrantDateinaccordancewiththe Company’soptionvaluationpractices,andsubjecttoapplicableadjustmentsintheeventofstocksplits,stockdividendsor othersimilarcapitaltransactionsbetweencalculationandgrant.The2012StockOptionsshallbegrantedononeofthe Company’sregularlyscheduledgrantdatesin2012,currentlycontemplatedtobeinNovember,2012.The2012RSUsshall vestequallyonthefirst,secondandthirdanniversariesoftheNextGrantDate,andthe2012StockOptionsshallvestinthree equaltranchesonthetwelvemonth,eighteenmonthandthirtymonthanniversariesoftheNextGrantDate,providedthat,in eachcase,youareemployedbytheCompanyontheapplicablevestingdateorasotherwiseprovidedherein,andprovided thatyousatisfythefinancialandotherperformancecriteriaestablishedatthetimeofgrantbytheCompensationCommittee afterconsultationwithyou.Intheeventyour 2 7/19/12 Employment Offer Letter 3/12www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm employmentisterminatedbytheCompanywithoutCause,duetodisability(asdefinedundertheCompany’sapplicablelong termdisabilityplan),byyouwithGoodReasonorasaresultofyourdeath,any2012RSUswhichwouldhavevestedwithin thesixmonthsaftersuchterminationshallimmediatelyvest,andany2012StockOptionsthatwouldhavevestedinthesix monthsfollowingterminationofemploymentiftheapplicableperformancecriteriawassatisfied,shallremainsubjectto satisfactionofsuchperformancecriteriaand,ifsuchcriteriaissatisfied,vestasifyouwereemployedonsuchvestingdate.All other2012RSUsand2012StockOptionsshallbeimmediatelyforfeited,asshallallunvested2012RSUsand2012Stock OptionsinthecaseofaCauseterminationbytheCompanyoravoluntaryresignationbyyouwithoutGoodReason.The 2012RSUswillprovideforautomaticuseofaportionofthe2012RSUstocoverminimumtaxwithholdingsothatyouwill notneedtomakeanycashpaymentstocoversuchtaxwithholding. MakeWholeRestrictedStockUnits.YouwillalsoreceiveamakewholegrantofrestrictedstockunitsundertheStockPlan withanaggregateawardvalueof$14million(“MakeWholeRSUs”),suchgranttobemadetoyouontheNextGrantDate. TheMakeWholeRSUswillvestasfollows:(a)onefifthoffourmilliondollarsofMakeWholeRSUswillvestonthe17 dayofeachmonthof2012startinginAugustandbepaidoutbytheendofsuchmonth;(b)onetwelfthofsevenmillion dollarsofMakeWholeRSUswillvestonthe17 dayofeachmonthin2013andbepaidoutbytheendofthemonthin whichtheyvest;and(c)onetwelfthofthreemilliondollarsofMakeWholeRSUswillvestonthe17 dayofeachmonthin 2014andbepaidoutbytheendofthemonthinwhichtheyvest;providedineachcasethatyouareemployedbythe Companyontheapplicablevestingdateor,ifearlier,willvest(andbepaidout)(i)upontheterminationofyouremployment bytheCompanywithoutCause, (ii)duetoyourresignationfor  ForpurposesoftheMakeWholeRSUs,theOneTimeRetentionAward(asprovidedhereinwithregardtoseverance benefits)andthe2012AnnualGrant,“Cause”shallmeanterminationofyouremploymentwiththeCompanybasedupon theoccurrenceofoneormoreofthefollowingwhich,withrespecttoclauses(1),(2)and(3)below,ifcurable,andclause (5)below(butonlyifcureispermittedunderitsproviso),youhavenotcuredwithinfourteen(14)daysafteryoureceive writtennoticefromtheCompanyspecifyingwithreasonableparticularitysuchoccurrence:(1)yourrefusalormaterial failuretoperformyourjobdutiesandresponsibilities(otherthanbyreasonofyourseriousphysicalormentalillness, injury,ormedicalcondition),(2)yourfailureorrefusaltocomplyinanymaterialrespectwithmaterialCompanypolicies orlawfuldirectivesoftheBoard,(3)yourmaterialbreachofanycontractoragreementbetweenyouandtheCompany (includingbutnotlimitedtothisletteragreementandanyEmployeeConfidentialityandAssignmentofInventions AgreementorsimilaragreementbetweenyouandtheCompany),oryourmaterialbreachofanystatutoryduty,fiduciary dutyoranyotherobligationthatyouowetotheCompany,(4)yourcommissionofanactoffraud,theft,embezzlementor otherunlawfulactagainsttheCompanyorinvolvingitspropertyorassets,(5)yourengaginginunprofessional,unethical orotherintentionalactsthatmateriallydiscredittheCompanyoraremateriallydetrimentaltothereputation,characteror standingoftheCompany,providedthat,ifsuchactorengagementisnotwillfulmisconductandcurable(asdeterminedin thegoodfaithdiscretionoftheBoard),youwillbegiventheopportunitytocureasprovidedabove,or(6)yourindictment orconvictionorpleaofnolocontendreorguiltypleawithrespecttoanyfelonyorcrimeofmoralturpitude. 3 th th th 1 1 7/19/12 Employment Offer Letter 4/12www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm GoodReason, (iii)uponyourdeathwhileemployedwiththeCompanyor(iv)upontheterminationofyouremploymentby theCompanyduetodisability(asdefinedundertheCompany’slongtermdisabilityplan).Followingthevestingofthe MakeWholeRSUs,youwillreceiveoneshareofYahoo!Inc.commonstockforeachvestedRSU(subjecttoanyapplicable taxwithholdingsordeductions).ThegrantwillprovideforautomaticuseofaportionoftheMakeWholeRSUstocover minimumtaxwithholdingsothatyouwillnotneedtomakeanycashpaymentstocoversuchminimumtaxwithholding.The Companyreservestherighttoutilizerestrictedstockinsteadofrestrictedstockunitsforthisgrant. OneTimeRetentionEquityAward.YouwillalsoreceivearetentionequityawardundertheStockPlanwithanaggregate awardvalueof$30million(the“RetentionEquityAward”),suchgranttobemadetoyouatthesametime,inthesameforms (includingtheutilizationofperformancecriteria),inthesamemanner,inthesameproportionsasthe2012AnnualGrantand subjecttothesameconditions,exceptthattheRetentionEquityAwardrestrictedstockunitswillvest1/5 onthe anniversaryoftheNextGrantDateineachyearfrom2013to2017,andtheRetentionEquityAwardoptionswillbe1/5 (ratherthan1/3 )vestinginequalinstallmentsat  ForpurposesoftheMakeWholeRSUs,theOneTimeRetentionAward,the2012AnnualGrantandasprovidedherein withregardtoseverance,“GoodReason”shallbedeemedtoexistonlyiftheCompanyshallfailtocorrectwithin30days afterreceiptofwrittennoticefromyouspecifyinginreasonabledetailthereasonsyoubelieveoneofthefollowingevents orconditionshasoccurred(providedsuchnoticeisdeliveredbyyounolaterthan30daysaftertheinitialexistenceofthe occurrence):(1)amaterialdiminutionofyourthencurrentaggregatebasesalaryandtargetbonusamount(otherthanpro ratareductionsthatalsoaffectsubstantiallyallothersimilarlysituatedemployees)withoutyourpriorwrittenagreement; (2)thematerialdiminutionofyourauthority,dutiesorresponsibilitiesasanemployeeoftheCompanywithoutyourprior writtenagreement;or(3)therelocationofyourpositionwiththeCompanytoalocationthatisgreaterthan50milesfrom Sunnyvale,Californiaandthatisalsofurtherfromyourprincipalplaceofresidence,withoutyourpriorwrittenagreement, providedthatinalleventstheterminationofyourservicewiththeCompanyshallnotbetreatedasaterminationfor“Good Reason”unlesssuchterminationoccursnotmorethansix(6)monthsfollowingtheinitialexistenceoftheoccurrenceof theeventorconditionclaimedtoconstitute“GoodReason”. 4 2 th th rd 2 7/19/12 Employment Offer Letter 5/12www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm the12month,18month,30month,42monthand54monthanniversariesoftheNextGrantDate.TheRSUsgrantedunder theRetentionEquityAwardwillprovideforautomaticuseofaportionoftheRetentionEquityAwardtocoverminimumtax withholdingsothatyouwillnotneedtomakeanycashpaymentstocoversuchtaxwithholding. SubsequentLongTermEquityGrants.Commencingin2013,duringyouremploymentwiththeCompany,youwillbe eligibletobegrantedannualequityawardsundertheStockPlan(“AnnualGrants”).Theactualgrantdatevalueofallsuch AnnualGrantsmadeduringyouremploymentwithYahoo!shallbedeterminedinthediscretionoftheCompensation CommitteeaftertakingintoaccounttheCompany’sandyourperformanceandotherrelevantfactors.Whileanygrantandthe sizeofitareinthediscretionoftheCompensationCommittee,itiscontemplatedthattheannuallongtermequitygrantsin 2013andsubsequentyearswillbeinthesameamountorgreaterthanthe2012AnnualGrant(i.e.,$12,000,000),subjectto theBoard’sevaluationofyourperformanceandthencurrentmarketcompensatorylevelsandpractices.Itisfurther contemplatedthatthetermsandconditionsofyour2013andfutureAnnualGrants(including,withoutlimitation,theformof award(s),vestingschedule,performanceobjectives,restrictiveprovisions,etc.)grantedtoyoushallbethesameassuchterms andconditionsapplicabletotheannuallongtermincentiveawardsgrantedtootherseniorexecutiveofficersoftheCompany atthetimeofsuchgrants.AllofsuchAnnualGrantsshallbesubjecttoanyapplicabletaxwithholdingordeductions. GeneralTerms.Subjecttoanyspecificprovisionsherein,allgrantswillbeonsuchtermsandconditionsasdeterminedby theCompensationCommittee.AllgrantshereundershallbemadepursuanttotheStockPlanandshallbesubjecttotheterms andconditionsoftheStockPlan,including,withoutlimitation,Section8thereof(whichprovidesthatthenumberofshares underlyinganoptionawardgrantedtoanyonepersonduringacalendaryearshallnotexceed15,000,000). 5 7/19/12 Employment Offer Letter 6/12www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm StockOwnership.YourecognizethatyouaresubjecttotheYahoo!requirementsforstockownershipbyofficers. Benefits.Yahoo!providesaverycompetitivebenefitspackageforitseligiblefullandparttimeemployees.EligibleYahoos mayparticipateinYahoo!’shealthinsurancebenefits(medical,dentalandvision),lifeinsurance,shorttermandlongterm disability,theEmployeeStockPurchasePlan,401(k)Plan,andYahoo!’sFlexibleSpendingPlan(HealthcareReimbursement Accountand/orDependentCareReimbursementAccount).Pleaserefertobenefitplandocumentsforeligibility.Ofcourse, Yahoo!maychangeitsbenefitsatanytime. TheCompanywillreimburseyouforreasonablelegalfeesincurredinconnectionwithnegotiatingandreviewingthisletter uptoamaximumoftwentyfivethousanddollars($25,000)(basedonyourattorney’snormalchargesanduponproviding Yahoo!withdocumentationofthecharges).Thiswillbeataxablebenefittoyou.Additionally,theCompanywillreimburse youforupto$50,000ofsecurityexpensesperyearintheeventthatsituationsarisewhereyou,inyourgoodfaithestimation, determinethatsuchsecuritymeasuresarerequiredorprudent,uponpresentationofappropriatedocumentationof expendituresinaccordancewiththeCompany’sexpensereimbursementpolicies. Youwillbeexpectedtotravelinconnectionwithyouremployment.Yahoo!willreimburseyouforreasonablebusiness expensesincurredinconnectionwithyouremployment,uponpresentationofappropriatedocumentationinaccordancewith theCompany’sexpensereimbursementpoliciesandyouwillbeeligibletoparticipateinthetravelpolicyestablishedbythe Companygenerallyforitsseniormanagement. Clawbacks.AllbonusesandequitygrantsaresubjecttoYahoo!“clawback”policiesasineffectfromtimetotime,including anyestablishedundertheDoddFrankWallStreetReformandConsumerProtectionAct. 6 7/19/12 Employment Offer Letter 7/12www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm PaidTimeOff.Youwillaccruevacationatarateoftwenty(20)days(uptothemaximumvacationaccrualcapforothers accruingatthatsamerateasspecifiedintheVacationPolicy)forthefirstfour(4)yearsofyouremploymentatYahoo!. Thereafter,youwillaccruevacationattheregularYahoo!vacationaccrualrate(uptoamaximumasspecifiedinourVacation Policy).Vacationisaccruedbasedonhoursworked,thereforeYahooswhoworklessthan40hoursperweekaccruevacation onaproratabasis.Inaddition,Yahoo!currentlyprovideseligibleemployeeswithdesignatedcompanypaidholidayseach year. ProprietaryAgreementandNoConflictwithPriorAgreements.AsanemployeeofYahoo!,itislikelythatyouwill becomeknowledgeableaboutconfidentialand/orproprietaryinformationrelatedtotheoperations,productsandservicesof Yahoo!anditsclients.Similarly,youmayhaveconfidentialorproprietaryinformationfromprioremployersthatshouldnot beusedordisclosedtoanyoneatYahoo!.Therefore,youwillberequiredtoread,completeandsignYahoo!’sstandard EmployeeConfidentialityandAssignmentofInventionsAgreement(“ProprietaryAgreement”)andtheProprietary InformationObligationsChecklistandreturnittoYahoo!onorpriortoyourEmploymentStartDate.Inaddition,Yahoo! requeststhatyoucomplywithanyexistingand/orcontinuingcontractualobligationsthatyoumayhavewithyourformer employers.Bysigningthisofferletter,yourepresentthatyouremploymentwithYahoo!shallnotbreachanyagreementyou havewithanythirdparty. Obligations.Duringyouremployment,youshalldevoteyourfullbusinesseffortsandtimetoYahoo!.Thisobligation, however,shallnotprecludeyoufromengaginginappropriatecivic,charitableorreligiousactivitiesor,withtheconsentof theBoard,fromservingontheboardsofdirectorsofcompaniesthatarenotcompetitorstoYahoo!,aslongastheactivitiesdo notmateriallyinterfereorconflictwithyourresponsibilitiestooryourabilitytoperformyourdutiesofemploymentat Yahoo!.Nevertheless,yourcurrentstatusasamemberoftheBoardofDirectorsofWalMart,Inc.isexpresslypermittedby thisAgreementsolongasitdoesnotcreatecompetitiveorfiduciaryconflicts.Anyoutsideactivitiesmustbeincompliance withandapprovedifrequiredbyYahoo!’sCodeofEthicsorCorporateGovernanceGuidelines. 7 7/19/12 Employment Offer Letter 8/12www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm Noncompetition.InadditiontotheobligationsspecifiedintheProprietaryAgreement,youagreethat,duringyour employmentwithYahoo!youwillnotengagein,orhaveanydirectorindirectinterestinanyperson,firm,corporationor business(whetherasanemployee,officer,director,agent,securityholder,creditor,consultant,partnerorotherwise)thatis competitivewiththebusinessofYahoo!,including,withoutlimitation,anythencurrentactivitiesrelatingtoproviding Internetnavigationalproductsorservicesandanythencurrentactivitiesprovidingsearch,email,chat,ecommerce,instant messaging,content(e.g.,music,video),ISP(e.g.,connectivity,bandwidthorstorage)orotherInternetbaseddeliveryor functionality.Notwithstandingtheprecedingsentence,youmayownnotmorethan1%ofthesecuritiesofanycompany whosesecuritiesarepubliclytraded. EmploymentAtWill.Pleaseunderstandthatthisletterdoesnotconstituteacontractofemploymentforanyspecificperiod oftime,butwillcreateanemploymentatwillrelationshipthatmaybeterminatedatanytimebyyouorYahoo!,withor withoutcauseandwithorwithoutadvancenotice.Theatwillnatureoftheemploymentrelationshipmaynotbemodifiedor amendedexceptbywrittenagreementsignedbyYahoo!’sChiefHumanResourcesOfficerandyou.Notwithstandingthe foregoing,ifyouremploymentisterminatedbyYahoo!withoutCauseoryouresignforGoodReason,then,inadditionto anyspecificterminationbenefitssetforthhereinwithregardtotheequitygrants(otherthantotheextentduplicative), Yahoo!willofferyouseverancebenefitspursuanttoitsnormalpracticeatthetimeofyourterminationandsimilartowhatis offeredtootherseniorexecutives.CauseandGoodReasonwillbeasdefinedherein.Allseverancebenefitsareconditioned onyousigningafullreleaseofanyandallclaimsagainstYahoo!inareleaseformacceptabletoYahoo!(withintheperiod specifiedinitbytheCompany)aftertheterminationofyouremploymentandyournotrevokingsuchreleasepursuanttoany 8 7/19/12 Employment Offer Letter 9/12www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm revocationrightsaffordedbyapplicablelaw.Uponaterminationofyouremployment,youherebyresignasofthedateof suchterminationasadirectorandofficerofYahoo!anditsaffiliatesandsubsidiariesandasafiduciaryofanyofitsortheir benefitplans,andyouagreetopromptlyexecuteanddeliveruponsuchterminationanydocumentreasonablyrequiredby Yahoo!toevidencetheforegoing. CodeofEthicsandYahoo!Policies.Yahoo!iscommittedtocreatingapositiveworkenvironmentandconductingbusiness ethically.AsanemployeeofYahoo!,youwillbeexpectedtoabidebytheCompany’spoliciesandproceduresincluding,but notlimitedto,Yahoo!’sGuide2Working@Y!,Yahoo!’sCodeofEthicsandYahoo!’sCorporateGovernanceGuidelines. Yahoo!requeststhatyoureview,signandbringwithyouonyourEmploymentStartDate,theenclosedCodeofEthics AcknowledgmentForm. NonDisparagement.Youagree,otherthanwithregardtoemployeesinthegoodfaithperformanceofyourdutieswiththe CompanywhileemployedbytheCompany,bothduringandforfive(5)yearsafteryouremploymentwiththeCompany terminates,nottoknowinglydisparagetheCompanyoritsofficers,directors,employeesoragentsinanymannerlikelytobe harmfultoitorthemoritsortheirbusiness,businessreputationorpersonalreputation.TheCompanywillinstructits Chairman,theChiefYahoosandthenamedexecutiveofficersoftheCompany,otherthaninthegoodfaithperformanceof theirdutiestotheCompanyorinconnectionwiththeirfiduciarydutiestotheCompanyandapplicablelaw,bothduringand forfive(5)yearsafteryouremploymentwiththeCompanyterminates,nottoknowinglydisparageyouinanymannerlikely tobeharmfultoyouoryourbusinessreputationorpersonalreputation.Thisparagraphshallnotbeviolatedbystatements fromeitherpartywhicharetruthful,completeandmadeingoodfaithinrequiredresponsetolegalprocessorgovernmental inquiry.Youalsoagreethatanybreachofthisnondisparagementprovisionbyyoushallbedeemedamaterialbreachofthis offerletter. 9 7/19/12 Employment Offer Letter 10/12www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm EntireAgreement.Thisofferletterandthereferenceddocumentsandagreementsconstitutetheentireagreementbetween youandYahoo!withrespecttothesubjectmatterhereofandsupersedeanyandallpriororcontemporaneousoralorwritten representations,understandings,agreementsorcommunicationsbetweenyouandYahoo!concerningthosesubjectmatters. EligibilitytoWorkintheUnitedStates.InorderforYahoo!tocomplywithUnitedStateslaw,weaskthatonyour EmploymentStartDateyoubringtoYahoo!appropriatedocumentationtoverifyyourauthorizationtoworkintheUnited States.Yahoo!maynotemployanyonewhocannotprovidedocumentationshowingthattheyarelegallyauthorizedtowork intheUnitedStates. IRC409A.ThisletteragreementisintendedtocomplywiththeshorttermdeferralruleunderTreasuryRegulation Section1.409A1(b)(4)andbeexemptfromSection409AoftheCode,andshallbeconstruedandinterpretedinaccordance withsuchintent,providedthat,ifanyseveranceprovidedatanytimehereunderinvolvesnonqualifieddeferred compensationwithinthemeaningofSection409AoftheCode,itisintendedtocomplywiththeapplicableruleswithregard theretoandshallbeinterpretedaccordingly.Aterminationofemploymentshallnotbedeemedtohaveoccurredforpurposes ofanyprovisionofthisletteragreementprovidingforthepaymentofanyamountsorbenefitsuponorfollowinga terminationofemploymentthatareconsidered“nonqualifieddeferredcompensation”underSection409AoftheCodeunless suchterminationisalsoa“separationfromservice”withinthemeaningofSection409AoftheCodeand,forpurposesofany suchprovisionofthisletteragreement,referencestoa“termination,”“terminationofemployment”orliketermsshallmean “separationfromservice.”Ifyouaredeemedonthedateofterminationtobea“specifiedemployee”withinthemeaningof thattermunderSection409A(a)(2)(B)oftheCode,thenwithregardtoanypaymentthatisconsiderednonqualifieddeferred compensationunderSection409AoftheCodepayableonaccountofa“separationfromservice,”suchpaymentorbenefit shallbemadeorprovidedatthedatewhichis 10 [...]... www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm 11/12 7/19/12 Employment Offer Letter We look forward to you joining Yahoo!. Please indicate your acceptance of this offer by signing where indicated below and returning an executed copy of this offer to me at your earliest convenience Sincerely, /s/ Alfred J. Amoroso Alfred J. Amoroso Chairman of the Board I accept this offer of employment with Yahoo! Inc. and agree to the terms and conditions outlined in this letter. ..7/19/12 Employment Offer Letter the earlier of (A) the date that is immediately following the expiration of the six (6)­month period measured from the date of such “separation from service” of you, and (B) the date of your death (the “Delay Period”). Upon the expiration of the Delay... before the last day of your taxable year following the taxable year in which the expense occurred. For purposes of Section 409A of the Code, your right to receive any installment payments pursuant to this letter agreement shall be treated as a right to receive a series of separate and distinct payments. In no event may you, directly or indirectly, designate the calendar year of any payment to be made under the letter agreement that is considered non­qualified deferred compensation. In the event the time period for considering any release and it becoming effective as a condition of receiving severance shall overlap... /s/ Alfred J. Amoroso Alfred J. Amoroso Chairman of the Board I accept this offer of employment with Yahoo! Inc. and agree to the terms and conditions outlined in this letter /s/ Marissa A. Mayer Marissa Mayer July 16, 2012 Date July 17, 2012 Planned Employment Start Date Enclosures Cc: HR file 12 www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm 12/12 ... Period, all payments and benefits delayed pursuant to this paragraph (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to you in a lump sum, and any remaining payments and benefits due under this letter agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. With regard to any provision herein that provides for reimbursement of costs and expenses or in­kind benefits, except as permitted by Section 409A of the Code, (i) the right to reimbursement or in­kind . Letter 9/12www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm revocationrightsaffordedbyapplicablelaw.Uponaterminationofyour employment, youherebyresignasofthedateof suchterminationasadirectorandofficerofYahoo!anditsaffiliatesandsubsidiariesandasafiduciaryofanyofitsortheir benefitplans,andyouagreetopromptlyexecuteanddeliveruponsuchterminationanydocumentreasonablyrequiredby Yahoo!toevidencetheforegoing. CodeofEthicsandYahoo!Policies.Yahoo!iscommittedtocreatingapositiveworkenvironmentandconductingbusiness ethically.AsanemployeeofYahoo!,youwillbeexpectedtoabidebytheCompany’spoliciesandproceduresincluding,but notlimitedto,Yahoo!’sGuide2Working@Y!,Yahoo!’sCodeofEthicsandYahoo!’sCorporateGovernanceGuidelines. Yahoo!requeststhatyoureview,signandbringwithyouonyour Employment StartDate,theenclosedCodeofEthics AcknowledgmentForm. NonDisparagement.Youagree,otherthanwithregardtoemployeesinthegoodfaithperformanceofyourdutieswiththe CompanywhileemployedbytheCompany,bothduringandforfive(5)yearsafteryour employment withtheCompany terminates,nottoknowinglydisparagetheCompanyoritsofficers,directors,employeesoragentsinanymannerlikelytobe harmfultoitorthemoritsortheirbusiness,businessreputationorpersonalreputation.TheCompanywillinstructits Chairman,theChiefYahoosandthenamedexecutiveofficersoftheCompany,otherthaninthegoodfaithperformanceof theirdutiestotheCompanyorinconnectionwiththeirfiduciarydutiestotheCompanyandapplicablelaw,bothduringand forfive(5)yearsafteryour employment withtheCompanyterminates,nottoknowinglydisparageyouinanymannerlikely tobeharmfultoyouoryourbusinessreputationorpersonalreputation.Thisparagraphshallnotbeviolatedbystatements fromeitherpartywhicharetruthful,completeandmadeingoodfaithinrequiredresponsetolegalprocessorgovernmental inquiry.Youalsoagreethatanybreachofthisnondisparagementprovisionbyyoushallbedeemedamaterialbreachofthis offer letter. 9 7/19/12 Employment Offer Letter 10/12www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm EntireAgreement.This offer letter andthereferenceddocumentsandagreementsconstitutetheentireagreementbetween youandYahoo!withrespecttothesubjectmatterhereofandsupersedeanyandallpriororcontemporaneousoralorwritten representations,understandings,agreementsorcommunicationsbetweenyouandYahoo!concerningthosesubjectmatters. EligibilitytoWorkintheUnitedStates.InorderforYahoo!tocomplywithUnitedStateslaw,weaskthatonyour Employment StartDateyoubringtoYahoo!appropriatedocumentationtoverifyyourauthorizationtoworkintheUnited States.Yahoo!maynotemployanyonewhocannotprovidedocumentationshowingthattheyarelegallyauthorizedtowork intheUnitedStates. IRC409A.This letter agreementisintendedtocomplywiththeshorttermdeferralruleunderTreasuryRegulation Section1.409A1(b)(4)andbeexemptfromSection409AoftheCode,andshallbeconstruedandinterpretedinaccordance withsuchintent,providedthat,ifanyseveranceprovidedatanytimehereunderinvolvesnonqualifieddeferred compensationwithinthemeaningofSection409AoftheCode,itisintendedtocomplywiththeapplicableruleswithregard theretoandshallbeinterpretedaccordingly.Aterminationof employment shallnotbedeemedtohaveoccurredforpurposes ofanyprovisionofthis letter agreementprovidingforthepaymentofanyamountsorbenefitsuponorfollowinga terminationof employment thatareconsidered“nonqualifieddeferredcompensation”underSection409AoftheCodeunless suchterminationisalsoa“separationfromservice”withinthemeaningofSection409AoftheCodeand,forpurposesofany suchprovisionofthis letter agreement,referencestoa“termination,”“terminationof employment orliketermsshallmean “separationfromservice.”Ifyouaredeemedonthedateofterminationtobea“specifiedemployee”withinthemeaningof thattermunderSection409A(a)(2)(B)oftheCode,thenwithregardtoanypaymentthatisconsiderednonqualifieddeferred compensationunderSection409AoftheCodepayableonaccountofa“separationfromservice,”suchpaymentorbenefit shallbemadeorprovidedatthedatewhichis . 7/19/12 Employment Offer Letter 1/12www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm EX-10.1 2 d384719dex101.htm EMPLOYMENT OFFER LETTER Exhibit10.1 ExecutionCopy Yahoo!Inc. 701FirstAvenue Sunnyvale,California July16,2012 MarissaMayer DearMarissa: OnbehalfofYahoo!Inc.(“Yahoo!”orthe“Company”),Iampleasedto offer youthepositionofPresidentandChief ExecutiveOfficer,reportingtotheCompany’sBoardofDirectors(the“Board”),workingattheCompany’sheadquartersat 701FirstAvenueinSunnyvale,California.YouwillbeappointedtotheBoarduponyourcommencementof employment. YourappointmentsaresubjecttoapprovalbytheBoardandyourcompensationpackageasoutlinedhereinis subjecttoapprovaloftheCompensationCommitteeoftheBoard(“CompensationCommittee”).Forpurposesofthis letter, yourfirstdayofworkatYahoo!willbeconsideredyour Employment StartDate.”Your Employment StartDatewillbe July17,2012. BaseSalary.Yourstartingannualbasesalarywillbe$83,333.33permonth($1,000,000.00annually),lessapplicabletaxes, deductionsandwithholdings,paidsemimonthlyandsubjecttoannualreview.Yahoo!’sregularlyscheduledpaydaysare currentlyonthe10. Letter 8/12www.sec.gov/Archives/edgar/data/1011006/000119312512307595/d384719dex101.htm Noncompetition.InadditiontotheobligationsspecifiedintheProprietaryAgreement,youagreethat,duringyour employment withYahoo!youwillnotengagein,orhaveanydirectorindirectinterestinanyperson,firm,corporationor business(whetherasanemployee,officer,director,agent,securityholder,creditor,consultant,partnerorotherwise)thatis competitivewiththebusinessofYahoo!,including,withoutlimitation,anythencurrentactivitiesrelatingtoproviding Internetnavigationalproductsorservicesandanythencurrentactivitiesprovidingsearch,email,chat,ecommerce,instant messaging,content(e.g.,music,video),ISP(e.g.,connectivity,bandwidthorstorage)orotherInternetbaseddeliveryor functionality.Notwithstandingtheprecedingsentence,youmayownnotmorethan1%ofthesecuritiesofanycompany whosesecuritiesarepubliclytraded. Employment AtWill.Pleaseunderstandthatthis letter doesnotconstituteacontractof employment foranyspecificperiod oftime,butwillcreatean employment atwillrelationshipthatmaybeterminatedatanytimebyyouorYahoo!,withor withoutcauseandwithorwithoutadvancenotice.Theatwillnatureofthe employment relationshipmaynotbemodifiedor amendedexceptbywrittenagreementsignedbyYahoo!’sChiefHumanResourcesOfficerandyou.Notwithstandingthe foregoing,ifyour employment isterminatedbyYahoo!withoutCauseoryouresignforGoodReason,then,inadditionto anyspecificterminationbenefitssetforthhereinwithregardtotheequitygrants(otherthantotheextentduplicative), Yahoo!will offer youseverancebenefitspursuanttoitsnormalpracticeatthetimeofyourterminationandsimilartowhatis offeredtootherseniorexecutives.CauseandGoodReasonwillbeasdefinedherein.Allseverancebenefitsareconditioned onyousigningafullreleaseofanyandallclaimsagainstYahoo!inareleaseformacceptabletoYahoo!(withintheperiod specifiedinitbytheCompany)aftertheterminationofyour employment andyournotrevokingsuchreleasepursuanttoany