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Entry into a Material Definitive Agreement

On October19, 2015, Yahoo! Inc., a Delaware corporation (Yahoo), and Google Inc., a Delaware corporation (Google), entered into a Google Services Agreement (the Services Agreement). The Services Agreement is effective as of October1, 2015 and expires on December31, 2018. Pursuant to the Services Agreement, Google will provide Yahoo with search advertisements through Googles AdSense for Search service (AFS), web algorithmic search services through Googles Websearch Service, and image search services. The results provided by Google for these services will be available to Yahoo for display on both desktop and mobile platforms. Yahoo may use Googles services on Yahoos owned and operated properties (Yahoo Properties) and on certain syndication partner properties (Affiliate Sites) in the United States (U.S.), Canada, Hong Kong, Taiwan, Singapore, Thailand, Vietnam, Philippines, Indonesia, Malaysia, India, Middle East, Africa, Mexico, Argentina, Brazil, Colombia, Chile, Venezuela, Peru, Australia and New Zealand.

Under the Services Agreement, Yahoo has discretion to select which search queries to send to Google and is not obligated to send any minimum number of search queries. The Services Agreement is non-exclusive and expressly permits Yahoo to use any other search advertising services, including its own service, the services of Microsoft Corporation or other third parties.

Google will pay Yahoo a percentage of the gross revenues from AFS ads displayed...


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