YHOO Yahoo! Inc. (MM)

PROPOSAL FIVE: APPROVAL OF LONG-TERM DEFERRED COMPENSATION INCENTIVE PLAN

Purposes

The Plan is intended to attract, retain and appropriately incentivize the Fund’s executive officers and other key employees by providing them with grants of incentive cash awards and the non-employee members of the Board (each, an “independent director”) by providing them with the opportunity to defer director fees into a deferral account under the Plan. The value of these incentive awards and deferral accounts under the Plan will be determined based on measurement of the change in the Fund’s trading discount relative to the pre-tax value of the Fund’s net assets, as adjusted to eliminate any impact from share price movements of ordinary shares of Alibaba Group Holding Limited (the “Alibaba Shares”) and shares of common stock of Yahoo Japan Corporation (“Yahoo Japan Shares”) (referred to herein as the “trading discount”), against a baseline level with resulting payout multipliers to be established by the Fund’s Compensation Committee.

By way of background, the Fund’s common stock is principally valued on the basis of a trading discount relative to the pre-tax value of the Fund’s net assets. Because a significant portion of the Fund’s assets consist of the Alibaba Shares and the Yahoo Japan Shares, it is expected that the market price of the Fund’s common stock will be significantly affected by the market price of the Alibaba Shares and the Yahoo Japan Shares. The Board does not believe that the Plan should reward or penalize participants simply based on the market price of the Fund’s common stock because such a result would be largely based on changes in the market price of the Alibaba Shares and the Yahoo Japan Shares, factors over which participants will have no direct influence. Therefore, the Plan is designed to permit participants to defer compensation in the form of grants of incentive awards for employees or deferral accounts for independent directors, the value of which will increase or decrease based on changes in the Fund’s trading discount relative to the pre-tax value of its net assets, as adjusted to eliminate any impact from price movements of the Alibaba Shares and Yahoo Japan Shares. The Board believes that this design will incentivize management to reduce the Fund’s trading discount and therefore align the interests of management and independent directors with those of the Fund’s stockholders.

Effective Date

The effective date of the Plan is August 9, 2017, the date on which the Board approved the Plan, subject to approval by the Fund’s stockholders (the “Effective Date”).

Administration

The Plan may be administered by the Compensation Committee or such other person or persons appointed from time to time by the Compensation Committee. The plan administrator may delegate any of its duties from time to time to such other person as it may designate. However, to the extent that awards granted under the Plan are intended to satisfy the requirements of Section 162(m), the Plan will be administered by the Compensation Committee and consist of not fewer than two members who are “outside directors” within the meaning of Section 162(m). It is currently contemplated that the Plan will be administered by the Compensation Committee.

The Compensation Committee, as the plan administrator, has the power to take all action necessary or appropriate in connection with the general administration of the Plan, including, without limitation, interpreting or construing the Plan, determining all facts and resolving any questions relevant to the Plan’s administration; prescribing, amending and rescinding administrative rules and regulations under the Plan; resolving any dispute which may arise under the Plan involving participants or beneficiaries; and making all other administrative determinations necessary or advisable for the administration of the Plan, including, without limitation, amending or terminating the Plan. Any such actions taken by the Compensation Committee will be conclusive and binding on all persons.

PROPOSAL FIVE: APPROVAL OF LONG-TERM DEFERRED COMPENSATION INCENTIVE PLAN

Eligibility

The Compensation Committee may designate those employees and independent directors of the Fund who are eligible to participate in the Plan. As of August 18, 2017, there were six (6) employees, including the Fund’s officers, and three (3) independent directors eligible to participate in the Plan. As discussed above, Mr. Kauffman is not currently eligible to participate in the Plan.

Incentive Awards Granted to Employees

Vesting of Incentive Awards . Subject to the terms of the Plan, each participant who is an employee of the Fund may be granted a cash incentive award with an initial value as set forth in the applicable award agreement that will vest based on the extent to which the Fund’s trading discount has been reduced in relation to a baseline level established by the Compensation Committee and measured as of certain vesting dates so long as the participant remains continuously employed with the Fund through such vesting date, subject to fully accelerated vesting upon either (x) a “change in control” of the Fund or (y) a termination of the Participant’s employment with the Fund by the Fund without “cause” or by the participant for “good reason” (each as defined in the Plan) or due to the participant’s disability or death (any such termination referred to herein as a “qualifying termination”) pursuant to the Plan. Upon a termination of the participant’s employment with the Fund for any reason, the incentive award, to the extent vested as of the date of termination, will become payable to the participant pursuant to the Plan and the participant will forfeit any then-unvested portion of the incentive award.

Measurement of Incentive Awards . The amount of an incentive award that may become payable to a participant is subject to the achievement of a reduction in the Fund’s trading discount (if any) as compared to the baseline level established by the Compensation Committee and resulting payout multipliers (as set forth in the award agreement underlying the award) and which will be measured on the applicable vesting date, the date of the occurrence of a change in control or, in the case of a qualifying termination, the greater of the amount measured as of the date of termination or the first anniversary of such date of termination (such applicable date, the “measurement date”). With respect to any incentive award that is intended to qualify for the performance-based exception to Section 162(m), the Compensation Committee will establish the performance goals and payout multipliers in respect of the Fund’s trading discount reduction, applicable to such awards in writing not later than ninety (90) days after the commencement of the applicable performance period; provided, that the outcome is substantially uncertain at the time the Compensation Committee actually establishes such performance goals (or at such earlier time as may be required or such later time as may be permissible under Section 162(m)).

As of the applicable measurement date, the amount of the incentive award payable to the participant will be calculated in accordance with the terms of the Plan and the applicable award agreement based on the initial amount of the incentive award granted to the participant and the applicable payout multiplier determined based on the reduction in the Fund’s trading discount measured as of the measurement date. The Compensation Committee will measure the reduction of the Fund’s trading discount on an objective basis and consistently; provided, that the Compensation Committee reserves the right to modify such methodology in accordance with the terms of the Plan. With respect to any incentive award that is intended to qualify for the performance-based exception to Section 162(m), the Compensation Committee shall not take any action in respect of such award that would constitute an impermissible exercise of discretion within the meaning of Section 162(m), or would otherwise cause such award to not be deductible under Section 162(m).

Certification of Incentive Awards . Before any incentive awards intended to qualify for the performance-based exception to Section 162(m) may be paid to participants, the Compensation Committee will certify, in writing, whether and to what extent the performance goals referred to in the Plan have been satisfied for the applicable performance period.

Payment of Incentive Awards. Incentive awards, to the extent vested, will generally be paid to the participant within thirty (30) days following the earlier to occur of the first anniversary of each applicable vesting date or a change in control of the Fund, unless otherwise deferred in accordance with the Plan (as described below). If the participant’s employment with the Fund is terminated for any reason, payout of the award, to the extent vested, will occur within thirty (30) days following the date of

PROPOSAL FIVE: APPROVAL OF LONG-TERM DEFERRED COMPENSATION INCENTIVE PLAN

termination; provided, that if the participant’s employment with the Fund is terminated due to a qualifying termination and the Fund’s trading discount reduction measured as of the first anniversary of the date of termination exceeds the Fund’s trading discount reduction measured as of the date of termination, then the participant will receive an additional payment in an amount equal to the difference between (x) the value of the award calculated based on the payout multiplier as in effect on the first anniversary of the date of termination and (y) the value of the award calculated based on the payout multiplier as in effect on the date of termination, payable within thirty (30) days following such first anniversary of the date of termination.

Subject to the terms of the Plan, participants may elect to defer payments of incentive awards, to the extent vested, to the occurrence of the participant’s separation from service with the Fund in lieu of receiving payment on the first anniversary of each vesting date.

Any incentive award, to the extent vested, that is paid to the participant more than thirty (30) days after the applicable vesting date will be credited with a rate of interest, based on the prime rate of interest as reported in the Wall Street Journal for the applicable vesting date (or most recent rate of interest available immediately prior to the vesting date), compounded monthly from the applicable vesting date through the date of payment, pursuant to the terms of the Plan.

In addition, the Plan provides for a “catch-up” payment in respect of an incentive award that may become payable to a participant in an amount equal to the difference in the value of the then-current payout of the incentive award and the payout of any previously vested amounts under the following circumstances:

Any catch-up payments will be paid in cash to the participant on or within thirty (30) days following (i) the occurrence of a change in control or the respective catch-up payment date, as applicable, or (ii) if the participant has elected to defer payments pursuant to the terms of the Plan, the date of the participant’s separation from service.

Maximum Incentive Award Amounts. The aggregate maximum amount that may become payable with respect to all incentive awards granted to participants under the Plan from time to time, assuming the maximum level of performance and payout multiplier applicable to such incentive awards, is $60,000,000, and the maximum amount that may become payable to any individual participant in any fiscal year of the Fund with respect to any incentive award granted under the Plan is $24,000,000.

Impact of Federal Tax Reform. Notwithstanding anything in the Plan or any award agreement to the contrary, if (i) Federal tax reform is enacted at any time prior to the first applicable vesting date and (ii) the participant has vested in any portion of the incentive award on or prior to the first applicable vesting date, then the amount payable with respect to any such portion of the incentive award that has so vested on or prior to the first applicable vesting date may, in the sole discretion of the Compensation Committee, be reduced based on an assessment by the Compensation Committee in good-faith of the impact that such tax reform had on the trading discount reduction that resulted in such portion of the incentive award becoming so vested, subject to a maximum reduction of fifty percent of the payout multiplier applicable to such Incentive Award.

PROPOSAL FIVE: APPROVAL OF LONG-TERM DEFERRED COMPENSATION INCENTIVE PLAN

Director Deferrals

Deferral of Director Fees. Pursuant to the terms of the Plan, each participant who is an independent director shall be required to defer a portion of not less than fifty percent and up to one hundred percent of his or her director fees payable in cash for services rendered by such director during the period commencing as of the date of deferral and ending on the date of the third anniversary of the first regularly scheduled annual meeting of the Fund’s stockholders. The amount of director fees so deferred will be credited to the participant’s deferral account under the Plan as of the regularly scheduled payment date of such fees. The participant will be fully vested in his or her deferral account.

Measurement of Deferral Account. The value of the participant’s deferral account will be subject to increase or decrease based on the achievement of a reduction (if any) in the Fund’s trading discount compared to a pre-established baseline level and resulting payout multipliers as set forth in the deferral agreement entered into between the director and the Fund and which will be measured on the applicable payment date (as described below).

Payment of Deferral Account. Distribution of the participant’s deferral account, as adjusted pursuant to the terms of the Plan, will be made to the participant in a single lump sum cash payment upon the earlier to occur of (i) the participant’s separation from service for any reason or (ii) a change in control of the Fund (each, a “payment date”).

Other Provisions of the Plan

Equitable Adjustments. In the event of a reorganization, recapitalization, stock dividend or stock split, or combination or other change in the Fund’s common stock, the Compensation Committee shall, in order to prevent the dilution or enlargement of rights in respect of an incentive award granted to a participant or a participant’s deferral account, make such adjustments to the incentive award or the deferral account, respectively, as the Compensation Committee in its sole discretion may determine.

Unfunded Status of Plan. The obligations of the Fund under the Plan will be unfunded and unsecured. The interest of any participant or any other person under the Plan will be limited to the right to receive the benefits under the Plan and any such right to receive benefits under the Plan will be no greater than the rights of an unsecured general creditor of the Fund.

No Right to Employment or Service. Neither the action of the Fund in establishing the Plan, nor any action taken by the Fund, the Board or any member of the Compensation Committee, nor any provision of the Plan will give any participant any right to be retained as an employee or director.

No Transfer or Assignment. The rights of the Participant or any other person to the payment of deferred compensation or other benefits under the Plan shall not be assigned, transferred, pledged or encumbered, except by will or the laws of descent and distribution or as otherwise provided under the Plan.

Tax Withholding. The Fund will deduct from the amount of any payment made pursuant to the Plan or from any other amounts payable by the Fund to or with respect to a participant any income, employment or other taxes required to be paid or withheld by the federal government or any state or local government by virtue of participation in the Plan. In addition, a participant may be required to tender the amount of any such taxes to the Fund prior to payment of amounts due under the Plan. In no event will the Fund be liable for any of a participant’s income tax obligations.

Amendment and Termination of the Incentive Plan

The Plan may be amended, suspended, discontinued or terminated at any time, in whole or in part, by the Compensation Committee; provided, that no such action shall reduce or in any manner adversely affect the rights of any participant with respect to payments which have accrued under the Plan prior to the date of such action, as determined by the Compensation Committee in its sole discretion.

PROPOSAL FIVE: APPROVAL OF LONG-TERM DEFERRED COMPENSATION INCENTIVE PLAN

Federal Income Tax Consequences

This section discusses certain U.S. federal income tax consequences of incentive awards and deferred compensation payable under the Plan based on current U.S. federal laws and regulations and does not purport to be a complete discussion. Moreover, as mentioned above, existing law is subject to change by new legislation, new regulations, administrative pronouncements and court decisions or new or clarified interpretations or applications of existing laws, regulations, administrative pronouncements and court decisions. Any such change may affect the U.S. federal tax income consequences described herein.

Generally, a participant will recognize ordinary income equal to the amount of the award received under the Plan in the year of receipt. That income will be subject to applicable income and employment tax withholding by the Fund. If and to the extent that the Plan payments satisfy the requirements of Section 162(m) and otherwise satisfy the requirements for deductibility under federal income tax law, the Fund may deduct the amounts paid to participants who are “covered employees” (within the meaning of Section 162(m)) under the Plan.

New Plan Benefits

On August 9, 2017, the Compensation Committee approved the grant of incentive awards to certain executive officers and other key employees designated as participants under the Plan, subject to stockholder approval of the Plan. The amount of the incentive awards that may be earned by participants under the Plan for fiscal year 2017 cannot be determined at this time because the value is subject to change based on the payout multiplier that applies after measuring the reduction in the Fund’s trading discount at the applicable measurement date against the baseline level established by the Compensation Committee pursuant to the Plan and the underlying award agreement. Similarly, the amounts that directors may elect to defer under the Plan and the value of any corresponding deferral account that may be paid to such directors cannot be determined at this time because the value is subject to change based on the payout multiplier that applies after measuring the reduction in the Fund’s trading discount at the applicable payment date against the baseline level established by the Compensation Committee pursuant to the Plan and the underlying deferral agreement. In particular, the amounts payable to recipients of initial incentive awards and directors who elect to defer their payments under the Plan will be calculated by reference to the table below:

PROPOSAL FIVE: APPROVAL OF LONG-TERM DEFERRED COMPENSATION INCENTIVE PLAN

The following table sets forth information with respect to the initial value of incentive awards granted to participants under the Plan as of August 18, 2017, all of which are subject to stockholder approval of the Plan.

Future participation under the Plan is in the discretion of the Compensation Committee. Moreover, future incentive awards granted to employees and deferrals by directors under the Plan are subject to the baseline level trading discount and payout multipliers that apply to the amount of reduction in the Fund’s trading discount as established by the Compensation Committee in accordance with the terms of the Plan and the applicable award agreement or deferral agreement. Accordingly, it is not possible to determine the actual amounts that will be paid to particular participants in the future under the Plan.

Voting Standard

The affirmative vote of the holders of a majority of the Shares present in person or represented by proxy and entitled to vote on the matter at the Annual Meeting at which a quorum is present is necessary to approve the Altaba Inc. Long-Term Deferred Compensation Incentive Plan. For purposes of determining the approval of the Altaba Inc. Long-Term Deferred Compensation Incentive Plan, abstentions will have the same effect as shares voted against the Proposal and broker non-votes, if any, will have no effect on the outcome of the vote.

Board Recommendation

The Board of the Fund unanimously recommends that stockholders of the Fund vote “ FOR ” the approval of the Altaba Inc. Long-Term Deferred Compensation Incentive Plan.

Proposal Six: Stockholder Proposal

Mr. John Chevedden, 2215 Nelson Avenue, No. 205, Redondo Beach, California 90278, has represented that he owns no fewer than 260 Shares and has given notice of his intention to present a proposal at the Annual Meeting. The proposal appears below in italics.

The Board opposes adoption of the Proposal and asks stockholders to review the Board’s response, which follows the proponent’s Proposal.

PROPOSAL SIX: STOCKHOLDER PROPOSAL

The Board believes that stockholders of the Fund are better served by holding stockholder meetings for which all stockholders receive notice, and at which all stockholders have an opportunity to consider and discuss the proposed actions and vote Shares held by such stockholders. Consistent with this view, the Fund’s Bylaws give stockholders owning at least 25% of the Fund’s outstanding common stock the right to call a special meeting. With this special meeting right, stockholders of the Fund already have the opportunity to raise important matters both on an annual basis at the Fund’s annual meeting of stockholders as well as at special meetings held outside the annual meeting process.

Additionally, stockholder meetings offer important protections and advantages that are absent from the written consent process, including the following:

In contrast to stockholder meetings, the written consent process, as proposed, undermines the important deliberative process in which the informed views of all stockholders, management and the Board are considered. Stockholder action by written consent would make it possible for the holders of a bare majority of the Fund’s outstanding common shares to take significant corporate action without any prior notice to the Fund or other stockholders, and without giving all stockholders an ample opportunity to consider, discuss and vote on stockholder actions that may have important ramifications for both the Fund and its stockholders. Further, because stockholder action by written consent can be effected without soliciting the consents of all stockholders, this approach could be used to disenfranchise selected and smaller stockholders by denying them the opportunity to participate in the written consent. The Board believes that these possible outcomes are contrary to principles of stockholder democracy and good corporate governance.

The written consent process also has the potential to create confusion since multiple groups of stockholders would be able to solicit written consents at any time and as frequently as they choose on a range of issues, some of which may be duplicative or conflicting. Addressing such actions could impose significant administrative and financial burdens on the Fund with no corresponding benefit to stockholders. Additionally, stockholder action by written consent could be used by a group of stockholders – no matter how small of an ownership position they represent – to pursue personal agendas or significant corporate actions that are not in the best interests of all stockholders.

The Board believes the Fund’s existing strong corporate governance practices make adoption of this Proposal unnecessary. In addition to the right of stockholders to call special meetings at a 25% threshold as mentioned above, the following Fund corporate governance provisions empower stockholders to express their views or take action and promote Board accountability:

PROPOSAL SIX: STOCKHOLDER PROPOSAL

The Board notes that the Proposal contains assertions regarding the Fund’s executive compensation and related party transactions that the Board believes are incorrect and are not relevant in evaluating the Proposal’s advisability.

For the reasons outlined above, the Board believes the adoption of this Proposal is not in the best interests of the Fund and its stockholders.

Voting Standard

The affirmative vote of the holders of a majority of the Shares present in person or represented by proxy and entitled to vote on the matter at the Annual Meeting at which a quorum is present is necessary to approve this Proposal. Abstentions will have the same effect as shares voted against the proposal and broker non-votes will have no effect on the outcome of the vote.

Board Recommendation

The Board of the Fund unanimously recommends that stockholders of the Fund vote “ AGAINST ” the stockholder proposal.

Proposal Seven: Stockholder Proposal

Dr. Jing Zhao, 1745 Copperleaf Court, Concord, California 94519, has represented that he owns 100 Shares and has given notice of his intention to present a proposal at the Annual Meeting. The proposal appears below in italics.

The Board opposes adoption of the Proposal and asks stockholders to review the Board’s response, which follows the proponent’s Proposal.

Stockholder Proposal – Yahoo Human Rights Fund’s Transparency

Resolved: shareholders request that our company prepare a report of our company’s human rights policy and practice, especially related to the Yahoo Human Rights Fund (YHRF), to disclose: 1. The claimed purpose and advertisement of the YHRF, including those were reported to the Congress, the SEC, shareholders and the general public. 2. Why and how the YHRF was handed to one person Harry Wu without any accountability? 3. How much of the YHRF has been used for the claimed purpose? How much of the YHRF was abused against the Chinese human rights community? 4. How many complaints, including law suits, have been submitted against the YHRF and Harry Wu in related to the abuse of the YHRF? 5. Recommendations to the board of directors to take necessary actions to remedy victims of our company and the YHRF to improve our company’s human rights policy and practices.

Supporting Statement

“Whoever wants to hold back relevant material information should show cause why it should not be revealed.” (Irving S. Shapiro, former Chairman of E.I. DuPont de Nemours & Company) As shareholders, we encourage transparency and accountability in the use of our corporate fund, especially since the YHRF has long been abused enormously. For example, 1) “the Statement by Seven Former Chinese Political Prisoners Regarding the Death of Harry Wu and the Abuses of the Yahoo Human Rights Fund” (April 28, 2016 https://chinachange.org/2016/04/28/statement-by-seven-former-chinese-political-prisoners-regarding-the-death-of-harry-wu-and-the-abuses-of-the-vahoo-human-rights-fund/) stated that “of the approximately $14-15 million of the YHRF that has been spent from 2008 to 2015, only about $700,000 was used to provide humanitarian aid to Chinese dissidents.” 2) New York Times article “Champion of Human Rights in China Leaves a Tarnished Legacy” (August 13, 2016 http://www.nytimes.com/2016/08/14/us/champion-of-human-rights-in-china-leaves-a-tarnished-legacy.html ) reported Harry Wu “spending more than $13 million of the Yahoo money to operate his own foundation”; “In some years, financial disclosure forms show that the foundation spent less than 2 percent of annual disbursements on direct assistance to Chinese dissidents or their families; in recent years, such grants all but dried up.” 3) More information of the YHRF abuses since 2007, including my proposal “HUMAN RIGHTS IMPACTS OF YAHOO BUSINESS” at 2011 shareholders meeting requesting that “Yahoo will review, report to shareholders and improve all policies and actions (including supervising the abused Yahoo Human Rights Fund) that might affect human rights observance in countries where it does business”, can be found from the links at “Corporate Social Responsibility & Governance Accountability Review” (http://cpri.tripod.com/cpr2017/csrgar6.pdf) which rated our company the lowest rating “F”.

Board Statement Opposing Stockholder Proposal

The Board has carefully considered the Proposal and has determined that the Fund is not the proper addressee of the Proposal because the Yahoo Human Rights Fund in question is now being administered by Verizon as a result of the Sale Transaction. Accordingly, the Fund does not have any control or influence over the administration of the Yahoo Human Rights Fund nor is it in a position to provide the requested information regarding the historic administration of the Yahoo

PROPOSAL SEVEN: STOCKHOLDER PROPOSAL

Human Rights Fund. Further, even if the Fund were in a position to access such information, the Board believes it would be an inappropriate use of Fund resources to prepare the report requested by the Proposal. The Board additionally notes that stockholders of the Fund overwhelmingly rejected, by more than 95% of the votes cast, a human rights-related proposal at the 2015 annual meeting of stockholders of Yahoo.

Voting Standard

The affirmative vote of the holders of a majority of the Shares present in person or represented by proxy and entitled to vote on the matter at the Annual Meeting at which a quorum is present is necessary to approve this Proposal. Abstentions will have the same effect as shares voted against the Proposal and broker non-votes will have no effect on the outcome of the vote.

Board Recommendation

The Board of the Fund unanimously recommends that stockholders of the Fund vote “ AGAINST ” the stockholder proposal.

Additional Information

Further Information About Voting and the Annual Meeting

Quorum. With respect to the Fund, the holders of a majority of the Shares issued and outstanding and entitled to vote on any matter at a meeting present in person or by proxy shall constitute a quorum at such meeting of the stockholders for purposes of conducting business on such matter. Votes withheld, abstentions and broker non-votes (i.e., Shares held by brokers or nominees as to which (i) instructions have not been received from the stockholder or the persons entitled to vote and (ii) the broker does not have discretionary voting power on a particular matter) will be counted as Shares present at the Annual Meeting for quorum purposes.

Record Date. The Board has fixed the close of business on September 6, 2017, as the Record Date for the determination of stockholders of the Fund entitled to notice of, and to vote at, the Annual Meeting. Stockholders of the Fund as of the close of business on the Record Date will be entitled to one vote on each matter to be voted on by the Fund for each Share held and a fractional vote with respect to fractional Shares with no cumulative voting rights.

How to Vote Your Shares. Whether or not you plan to attend the Annual Meeting, we urge you to complete, sign, date, and return the enclosed proxy card in the postage-paid envelope provided or vote via telephone or the Internet so your Shares will be represented at the Annual Meeting. Instructions regarding how to vote via telephone or the Internet are included on the enclosed proxy card. The required control number for Internet and telephone voting is printed on the enclosed proxy card. The control number is used to match proxy cards with stockholders’ respective accounts and to ensure that, if multiple proxy cards are executed, Shares are voted in accordance with the proxy card bearing the latest date.

All Shares represented by properly executed proxies received prior to the Annual Meeting will be voted at the Annual Meeting in accordance with the instructions marked thereon or otherwise as provided therein. If you sign the proxy card, but don’t fill in a vote, your Shares will be voted in accordance with the Board’s recommendation. If any other business is brought before the Annual Meeting, your Shares will be voted at the proxies’ discretion.

Stockholders who execute proxy cards or record voting instructions via telephone or the Internet may revoke them at any time before they are voted by filing with the Secretary of the Fund a written notice of revocation, by delivering (including via telephone or the Internet) a duly executed proxy bearing a later date or by attending the Annual Meeting and voting in person. Merely attending the Annual Meeting, however, will not revoke any previously submitted proxy.

Attending the Annual Meeting. If you wish to attend the Annual Meeting and vote in person, you will be able to do so. If you intend to attend the Annual Meeting in person and you are a record holder of the Fund’s Shares, in order to gain admission you must show photographic identification, such as your driver’s license. If you intend to attend the Annual Meeting in person and you hold your Shares through a bank, broker or other custodian, in order to gain admission you must show photographic identification, such as your driver’s license, and satisfactory proof of ownership of Shares of the Fund, such as your voting instruction form (or a copy thereof) or broker’s statement indicating ownership as of a recent date. If you hold your Shares in a brokerage account or through a bank or other nominee, you will not be able to vote in person at the annual meeting unless you have previously requested and obtained a “legal proxy” from your broker, bank or other nominee and present it at the Annual Meeting. You may contact Abernathy MacGreger at (212) 371-5999 to obtain directions to the site of the Annual Meeting.

Additional Information Regarding Voting. Broker-dealer firms holding Shares of the Fund in “street name” for the benefit of their customers and clients will request the instructions of such customers and clients on how to vote their shares on the Proposal before the Annual Meeting. The Fund understands that, under the rules of the NYSE, such broker-dealer firms may for certain “routine” matters, without instructions from their customers and clients, grant discretionary authority to the

ADDITIONAL INFORMATION

proxies designated by the Board to vote if no instructions have been received prior to the date specified in the broker-dealer firm’s request for voting instructions. The Proposal to ratify the selection of PricewaterhouseCoopers LLP as the Fund’s independent registered public accounting firm is deemed a “routine” matter and stockholders who do not provide proxy instructions or who do not return a proxy card may have their Shares voted by broker-dealer firms in favor of the Proposal. The other Proposals are not deemed “routine” matters under the rules of the NYSE. A properly executed proxy card or other authorization by a stockholder that does not specify how the stockholder’s Shares should be voted on the Proposal may be deemed an instruction to vote such Shares in favor of the Proposal. Broker-dealers who are not members of the NYSE may be subject to other rules, which may or may not permit them to vote your Shares without instruction. We urge you to provide instructions to your bank, broker or other nominee so that your votes may be counted.

The Fund will update certain data regarding the Fund, including performance data, on a monthly basis on its website at www.altaba.com. Investors and others are advised to periodically check the website for updated performance information and the release of other material information about the Fund.

Administrator

U.S. Bancorp Fund Services, LLC, serves as the Fund’s administrator pursuant to an administration agreement. U.S. Bancorp Fund Services, LLC is located at 615 East Michigan Street, Milwaukee, Wisconsin 53202.

Principal Stockholders

As of the Record Date, to the knowledge of the Fund, no person beneficially owned more than 5% of the voting securities of any class of securities of the Fund, except as set forth below:*

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934, and Section 30(h) of the 1940 Act require the Fund’s officers and Directors, certain officers of the Fund’s investment advisers, affiliated persons of the investment adviser, and persons who beneficially own more than ten percent of the Fund’s shares to file certain reports of ownership (“Section 16 filings”) with the SEC and Nasdaq. Based upon the Fund’s review of the copies of such forms effecting the Section 16 filings received by it, the Fund believes that for its most recently completed fiscal year, all filings applicable to such persons were completed and filed in a timely manner.

ADDITIONAL INFORMATION

Privacy Principles of the Fund

The Fund is committed to maintaining the privacy of stockholders and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information the Fund collects, how the Fund protects that information and why, in certain cases, the Fund may share information with select other parties.

Generally, the Fund does not receive any non-public personal information relating to its stockholders, although certain non-public personal information may become available to the Funds. The Fund does not disclose any non-public personal information about its stockholders or former stockholders to anyone, except as permitted by law or as is necessary in order to service stockholder accounts (for example, to a transfer agent or third party administrator).

The Fund restricts access to non-public personal information about its stockholders to only those employees with a legitimate business need for the information. The Fund maintains physical, electronic and procedural safeguards designed to protect the non-public personal information of its stockholders.

Deadline for Stockholder Proposals

The Fund’s Amended and Restated Bylaws (the “Bylaws”) require compliance with certain procedures for a stockholder to properly make a nomination for election as a Director or to propose other business for the Fund. If a stockholder who is entitled to do so under the Fund’s Bylaws wishes to nominate a person or persons for election as a Director or propose other business for the Fund, that stockholder must provide a written notice to the Secretary of the Fund at the Fund’s principal executive offices. Such notice must include certain information about the proponent and the proposal, or in the case of a nomination, the nominee. A copy of the Fund’s Bylaws, which include the provisions regarding the requirements for stockholder nominations and proposals, may be obtained by writing to the Secretary of the Fund at 140 East 45 ^th Street, 15 ^th Floor, New York, New York 10017. Any stockholder considering making a nomination or other proposal should carefully review and comply with those provisions of the Fund’s Bylaws.

Expenses of Proxy Solicitation

The cost of the Annual Meeting, including the costs of preparing and mailing the notice, proxy statement and proxy, and the solicitation of proxies, including reimbursement to broker-dealers and others who forwarded proxy materials to their clients, will be borne by the Fund. Certain officers of the Fund or its respective affiliates (none of whom will receive additional compensation therefore) may solicit proxies by telephone, mail, e-mail and/or personal interviews. Brokerage houses, banks and other fiduciaries may be requested to forward proxy solicitation materials to their principals to obtain authorization for the execution of proxies, and will be reimbursed by the Fund for such out-of-pocket expenses.

ADDITIONAL INFORMATION

Please vote promptly by signing and dating each enclosed proxy card and returning it in the accompanying postage-paid return envelope or by following the enclosed instructions to vote by telephone or over the Internet.

Important Notice Regarding the Availability of Proxy Materials for the Stockholder Meeting to be Held on October 24, 2017

This Proxy Statement is available on the Internet at www.envisionreports.com/AABA.

TABLE OF CONTENTS

ALTABA INC.

LONG-TERM DEFERRED COMPENSATION INCENTIVE PLAN

Altaba Inc., a Delaware corporation, (the “ Company ”) hereby adopts and establishes this Altaba Inc. Long-Term Deferred Compensation Incentive Plan (the “ Plan ”) in order to permit the deferral of certain compensation to which eligible directors, executive officers and other key employees of the Company may become entitled, which deferred amounts will be subject to vesting, measurement and payout based on the Company’s achievement of certain performance criteria relating to the change in the trading discount of the Company’s common stock pursuant to the terms and conditions set forth herein.

ARTICLE 1

DEFINITIONS

1.1 General . The following terms used in the Plan shall have the meanings specified below unless the context clearly indicates to the contrary.

1.2 “Affiliate ” shall mean, at any time, and with respect to any person, any other person that, at such time, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such first person. The term “ control ” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person through the ownership of voting securities and the terms “ controlled ” and “ controlling ” have meanings correlative thereto.”

1.3 “ Alibaba Share ” shall mean an ordinary share, par value $0.000025 per share, of Alibaba Group Limited.

1.4 “ Award Agreement ” shall mean any written notice, agreement or other document evidencing an Award granted under the Plan.

1.5 “ Beneficiary ” shall mean the person or persons designated by a Participant, on a form provided by the Plan Administrator, to receive payments under the Plan in the event of his or her death. A Participant may change the designation of a Beneficiary at any time by completing a new designation form which shall revoke and supersede all earlier forms.

1.6 “ Board ” shall mean the Board of Directors of the Company.

1.7 “ Cause ” shall have the meaning given to such term in the employment, severance or similar agreement between the Company and the Participant or, if no such agreement exists or if “Cause” is not defined therein, then “Cause” shall mean the occurrence of one or more of the following: (1) the Participant’s willful refusal or material failure to perform the Participant’s job duties and responsibilities (other than by reason of the Participant’s serious physical or mental illness, injury or medical condition), (2) the Participant’s willful failure or refusal to comply in any material respect with material Company policies or lawful directives, (3) the Participant’s material breach of any contract or agreement between the Participant and the Company (including but not limited to any employment agreement or restrictive covenant agreement between the Participant and the Company), or the Participant’s material breach of any statutory duty, fiduciary duty or any other obligation that the Participant owes to the Company, (4) the Participant’s commission of an act of fraud, theft, embezzlement or other unlawful act against the Company or involving its property or assets or the Participant engaging in intentional acts that are materially detrimental to the reputation of the Company and which cause the Company material economic harm, or (5) the Participant’s indictment or conviction or nolo contendre or guilty plea with respect to any felony or crime of moral turpitude. For purposes of this provision, no act or failure to act on the Participant’s part shall be considered “willful” unless it is done, or omitted to be done, by the Participant in bad faith or without reasonable belief that the Participant’s action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, in good faith and in the best interests of the Company. Except for a failure, breach or refusal which, by its nature, cannot reasonably be expected to be cured, the Participant shall have ten (10) days from the delivery of written notice by the Company within which to cure any acts constituting Cause; provided , that, if the Company reasonably expects irreparable injury from a delay of ten (10) days, the Company may give the Participant notice of such shorter period within which to cure as is reasonable under the circumstances.

1.8 “ Change in Control ” shall mean the occurrence of any of the following after the Effective Date:

(a) one person (or more than one person acting in concert as a group), other than the Company, acquires ownership of stock of the Company that, together with the stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company;

(b) a majority of the members of the Board are replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the Board before the date of appointment or election; or

(c) the sale of all or substantially all of the Company’s assets;

(d) a merger or consolidation of the Company with any other entity in which the Company’s voting securities immediately prior to the merger or consolidation do not represent, or are not converted into securities that represent, a majority of the voting power of all voting securities of the surviving entity immediately after the merger or consolidation.

Notwithstanding the foregoing, a Change in Control shall not occur unless such transaction constitutes a change in the ownership of the Company, a change in effective control of the Company, or a change in the ownership of a substantial portion of the Company’s assets under Section 409A of the Code. In the event of an amendment that materially changes Section 409A of the Code’s definition of change in control, the Plan Administrator may amend the definition of “Change in Control” under the Plan to be consistent with such amendment.

1.9 “ Code ” shall mean the Internal Revenue Code of 1986, as amended from time to time.

1.10 “ Committee ” shall mean the Compensation Committee of the Board or such other person or persons appointed from time to time by the Compensation Committee of the Board to administer the Plan.

1.11 “ Company ” shall mean Altaba Inc., a Delaware corporation (formerly known as Yahoo! Inc., a Delaware corporation).

1.12 “ Company Common Stock ” shall mean the common shares, $0.001 par value per share, of the Company.

1.13 “ Deferral Account ” shall mean the bookkeeping entry that is utilized solely as a device for the measurement and determination of the amount to be paid to a Participant in respect of the Participant’s Director Fees that are deferred pursuant to Article 4.

1.14 “ Deferral Agreement ” shall mean a written agreement evidencing a Participant’s election to defer his or her Director Fees under the Plan pursuant to Section 4.1.

1.15 “ Director ” shall mean a member of the Board.

1.16 “ Director Fees ” shall mean, with respect to an Independent Director who is a Participant, the fees payable in cash for services rendered as a Director during the period commencing on the Deferral Date and ending on the date of the third anniversary of the first regularly scheduled annual meeting of the Company’s stockholders.

1.17 “ Disability ” shall mean, with respect to a Participant, a total and permanent disability within the meaning of Section 22(e)(3) of the Code.

1.18 “ Effective Date ” shall mean August 9, 2017, subject to the approval of the Plan by the Company’s stockholders.

1.19 “ Employee ” shall mean any individual who is a common-law employee of the Company or its Affiliates.

1.20 “ ERISA ” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time.

1.21 “ Exchange Act ” shall mean the Securities Exchange Act of 1934, as amended.

1.22 “ Good Reason ” shall have the meaning given to such term in the employment, severance or similar agreement between the Company and the Participant or, if no such agreement exists or if “Good Reason” is not defined therein, then “Good Reason” shall be deemed to exist only if the Company shall fail to correct within thirty (30) days after receipt of written notice from the Participant specifying in reasonable detail the reasons the Participant believes one of the following events or conditions has occurred (provided such notice is delivered by the Participant no later than sixty (60) days after the initial existence of the occurrence): (1) a material diminution of the Participant’s then current aggregate base salary and target annual incentive award amount without the Participant’s prior written agreement; (2) a material adverse change in the Participant’s title, authority, duties or responsibilities without the Participant’s prior written agreement; (3) a material change in the geographic location at which the Participant is required to perform services for the Company, without the Participant’s prior written agreement; (4) any material breach of the Participant’s employment or similar agreement with the Company; or (5) a material adverse change in the Participant’s reporting structure; provided , that in all events the termination of the Participant’s 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.”

1.23 “ Incentive Award ” shall mean an award granted to a Participant under the Plan pursuant to Section 3.1.

1.24 “ Independent Director ” shall mean a member of the Board who is not an Employee.

1.25 “ Participant ” shall mean an Employee who is designated by the Plan Administrator to participate in the Plan or, unless otherwise determined by the Plan Administrator, an Independent Director who elects to participate in the Plan, in each case, pursuant to Article 2.

1.26 “ Payout Multiplier ” means the payout multiplier in respect of an Incentive Award granted to a Participant or a Participant’s Deferral Account as specified in the applicable Award Agreement or Deferral Agreement, respectively.

1.27 “ Plan ” means this Altaba Inc. Long-Term Deferred Compensation Incentive Plan, as may be amended or restated from time to time.

1.28 “ Plan Administrator ” means the Compensation Committee of the Board or such other person or persons appointed from time to time by the Compensation Committee of the Board to administer the Plan. With respect to any payments hereunder intended to qualify as performance-based compensation under Section 162(m) of the Code, the Plan Administrator shall be the Compensation Committee of the Board and shall be comprised solely of two or more directors who are “outside directors” under Section 162(m) of the Code.

1.29 “ Qualifying Termination ” means a termination of the Participant’s employment with the Company and its Affiliates either by the Company without Cause or by the Participant for Good Reason or as a result of the Participant’s Disability or death.

1.30 “ Separation from Service ” means a Participant’s separation from service with the Company within the meaning of Section 409A(a)(2)(A)(i) of the Code and the Department of Treasury final regulations and other guidance promulgated thereunder.

1.31 “ Yahoo Japan Share ” shall mean a common share, no par value, of Yahoo Japan Corporation.

ARTICLE 2

ELIGIBILITY AND PARTICIPATION

2.1 Employees . The Plan Administrator may, from time to time, designate those Employees who may participate in the Plan and to whom an Incentive Award may be granted pursuant to Section 3.1.

2.2 Independent Directors . Each Independent Director may participate in the Plan by making a Deferral Election with respect to such Independent Director’s Director Fees pursuant to Section 4.1.

ARTICLE 3

INCENTIVE AWARDS

3.1 Grant of Incentive Awards . The Plan Administrator may, from time to time, grant an Incentive Award to any Participant who is an Employee, payable in cash, pursuant to the terms of the Plan and which shall be evidenced by an Award Agreement. The terms, conditions and limitations of each Incentive Award shall be set forth in the Award Agreement consistent with the terms of the Plan. Notwithstanding anything herein to the contrary, assuming the maximum level of performance and Payout Multiplier applicable to such Incentive Awards, the maximum amount that may become payable to any Participant in any fiscal year of the Company with respect to an Incentive Award shall be $24,000,000 and the maximum amount that may become payable with respect to all Incentive Awards granted to Participants under the Plan from time to time shall be $60,000,000.

3.2 Vesting of Incentive Awards . Subject to the terms and conditions set forth in the Award Agreement, a Participant’s Incentive Award shall vest upon the respective vesting dates set forth therein (each, a “ Vesting Date ”), or (ii) a Change in Control, so long as the Participant remains in continuous service with the Company or any of its Affiliates through such Vesting Date or Change in Control, respectively; provided , that the Incentive Award shall vest in full in the event that the Participant experiences a Qualifying Termination.

3.3 Effect of Termination of Employment . In the event of the termination of a Participant’s employment or service by the Company or its Affiliates for any reason, the Incentive Award, to the extent vested as of such date of termination (after taking into account any full vesting in connection with a Qualifying Termination), shall become payable to the Participant or the Participant’s Beneficiary, as applicable, pursuant to Section 3.5, and the then-unvested portion of the Incentive Award, if any, shall thereupon terminate without any payment therefor, and the Participant shall have no further rights with respect thereto.

3.4 Deferral Election . Each Participant may irrevocably elect to defer payment of his or her Incentive Award, to the extent vested, to the occurrence of the Participant’s Separation from Service ( in lieu of payment on the first anniversary of each Vesting Date ) by completing and executing an Award Agreement that specifies such election and returning such executed Award Agreement to the Plan Administrator within thirty (30) days following the date of the Participant’s receipt of such Award Agreement.

3.5 Payment of Incentive Awards .

(a) Except as provided in Sections 3.5(b) and 3.5(c), a Participant’s Incentive Award, to the extent vested, shall be paid to the Participant or the Participant’s Beneficiary, as applicable, on or within thirty (30) days following the earliest to occur of (i) the first anniversary of each Vesting Date, or, if the Participant has made a timely and valid deferral election pursuant to Section 3.4, the date of the Participant’s Separation from Service or (ii) immediately prior to (but subject to the consummation of) a Change in Control.

(b) If a Participant’s employment with the Company or its Affiliates is terminated for any reason other than a Qualifying Termination, then the Participant’s Incentive Award, to the extent vested, shall be paid to the Participant on or within thirty (30) days following the date of such termination.

(c) If a Participant’s employment with the Company or its Affiliates is terminated by reason of a Qualifying Termination, then the Participant’s Incentive Award shall be fully vested as of the date of such Qualifying Termination and shall be paid to the Participant on or within thirty (30) days following the date of such Qualifying Termination; provided , that if the Trading Discount Reduction (as defined below) measured as of the first anniversary of the date of termination (or a Change of Control if it occurs earlier than said first anniversary) exceeds the Trading Discount Reduction measured as of the date of termination, then the Participant shall be entitled to a payment in an amount equal to the difference between (x) the amount of the Incentive Award calculated based on the Payout Multiplier as in effect on the first anniversary of the date of termination (or a Change of Control if it occurs earlier than said first anniversary) and (y) the amount of the Incentive Award calculated based on the Payout Multiplier as in effect on the date of termination, with such amount paid to the Participant or the Participant’s Beneficiary, as applicable, on or within thirty (30) days following such first anniversary of the date of termination (or, in the event of a Change of Control if it occurs earlier than said first anniversary, immediately prior to (but subject to the consummation of) a Change in Control.

3.6 Calculation of Payment of Incentive Awards .

(a) Generally . The amount of an Incentive Award that may become payable to a Participant shall be subject to the Trading Discount Reduction achieved and Payout Multipliers as set forth in the Award Agreement that apply to the Trading Discount Reduction as determined on the applicable Vesting Date, the date of the occurrence of a Change in Control or, in the case of a Qualifying Termination, the date of termination or the one year anniversary of the date of termination if higher, as described in Section 3.5(c) above (such applicable date, the “ Measurement Date ”).

(b) Methodology .

As of the applicable Measurement Date, the amount of the Incentive Award payable to the Participant shall be calculated in accordance with the terms of the Award Agreement based on the initial amount of the Incentive Award granted to the Participant and the applicable Payout Multiplier determined based on the Trading Discount Reduction measured as of such Measurement Date, subject to the vesting terms set forth in the Award Agreement.

For purposes of measuring the Trading Discount Reduction, the following terms shall apply:

“ Base Trading Discount ” shall mean the percentage (rounded to the nearest tenth of a percentile) specified in a Participant’s Award Agreement or Deferral Agreement, as applicable.

“ Base Adjusted NAV ” and “Base Adjusted NAV Per Share” shall mean the initial net asset value adjusted for the exclusion of deferred taxes on unrealized appreciation and other adjustments. These amounts will be specified in a Participant’s Award Agreement or Deferral Agreement and utilized in the calculation of Base Trading Discount.

“ Revised Adjusted NAV ” and “Revised Adjusted NAV Per Share” shall mean the Base Adjusted NAV per share revised to reflect the impact of changes in the per share price of Alibaba Shares and Yahoo Japan Shares, respectively on the Base Adjusted NAV. The impact of these share price changes may be direct (e.g., the value of the Company’s holdings are increased or decreased) or indirect (e.g., the company bought back its own shares at a price that reflected higher or lower share prices for these holdings than subsequently in effect). For purposes of illustration, Revised Adjusted NAV and Revised Adjusted NAV Per Share shall be determined consistently with the example set forth on Appendix A hereto.

“ Current Trading Discount ” means, as of any Measurement Date, an amount (rounded to the nearest tenth of a percentile) equal to one less the quotient obtained by dividing (x) the average closing price per share of Common Stock on the Nasdaq Stock Market during the thirty (30) day trading period immediately prior to such measurement date (in each case adding back the per share amount of cumulative dividends paid by the Company from and after the Effective Date, by (y) the “Revised Adjusted NAV Per Share” on such measurement date.

“ Trading Discount Reduction ” means an amount (rounded to the nearest tenth of a percentile) equal to the difference obtained by subtracting (x) the Current Trading Discount from (y) the Base Trading Discount.

The measurement of the Trading Discount Reduction pursuant to this Section 3.6(b) shall be applied on an objective basis and consistently by the Plan Administrator from time to time; provided , that notwithstanding anything herein to the contrary, the Plan Administrator reserves the right to modify such methodology in such a manner that does not cause any amounts payable hereunder to cease to qualify as performance based compensation within the meaning of Code Section 162(m) and which does not adversely affect the rights of any Participant under his or her Incentive Award.

(c) Deferred Payment Interest Credit . The amount of an Incentive Award that becomes vested on an applicable Vesting Date and which is paid to such Participant more than 30 days after the applicable Vesting Date shall be credited with a rate of interest, based on the prime rate of interest as reported in the Wall Street Journal for the applicable Vesting Date (or immediately preceding date on which such rate is reported, if not reported in the Wall Street Journal on the applicable Vesting Date), compounded monthly from the applicable Vesting Date through the date of payment (the “ Interest Credit ”). The amount of the Incentive Award payable to any Participant on an applicable payment date described in Sections 3.5(a), (b) and (c) shall be increased by an amount equal to the Interest Credit through the date of payment of the Incentive Award, which additional Interest Credit amount shall be paid to the Participant at the same time and pursuant to the same terms as the underlying vested Incentive Award to which it relates.

(d) Catch-Up Payment . If (i) a Change in Control occurs while the Participant is in continuous service with the Company or any of its Affiliates or following a Participant’s Qualifying Termination that has occurred within the twelve months prior to such Change in Control and (ii) the Payout Multiplier determined based on the Trading Discount Reduction measured as of such Change in Control (the “ Liquidity Payout Multiplier ”) is greater than the Payout Multiplier that applied to any previously vested or paid out portion of an Incentive Award (such portion, the “ Prior Portion ”), then the Participant shall be entitled to a payment in an amount equal to the excess, if any, of the amount of the Prior Portion calculated as if the Liquidity Payout Multiplier had applied to such Prior Portion on each prior Vesting Date, over the amount of the Prior Portion calculated as of each prior Vesting Date. In the absence of a Change in Control, on the date of the fourth anniversary of the Effective Date and each six-month anniversary thereafter (each such date, a “ Catch-Up Measurement Date ”) so long as the Participant remains in continuous service with the Company or any of its Affiliates on, or has terminated employment within the prior twelve months by reason of a Qualifying Termination prior to, the applicable Catch-up Measurement Date, if the amount of the Trading Discount Reduction applicable to the Incentive Award as measured on each Catch-Up Measurement Date would otherwise result in a Payout Multiplier of at least three (3.0) (the “ Premium Payout Multiplier ”), then the Participant shall be entitled to a payment in an amount equal to the excess, if any, of the amount of the Prior Portion calculated as if the Premium Payout Multiplier had applied to such Prior Portion on each prior Vesting Date, over the amount of the Prior Portion calculated as of each prior Vesting Date. Any amounts that become payable pursuant to this Section 3.6(c) in respect of an Incentive Award shall be payable in cash to the Participant or the Participant’s Beneficiary, as applicable, and shall be paid on or within thirty (30) days following (i) the occurrence of a Change in Control or the respective Catch-Up Measurement Date, as applicable, or (ii) if the Participant has made a timely and valid deferral election pursuant to Section 3.4, the date of the Participant’s Separation from Service.

(e) Section 162(m) . To the extent required under Section 162(m) of the Code, the Plan Administrator shall make a certification in writing with respect to the calculation of the amount payable under any applicable Incentive Award that is intended to qualify as performance-based compensation under Section 162(m) of the Code prior to any such payment to a Participant hereunder.

(f) Impact of Tax Reform . Notwithstanding anything in this Plan or any Award Agreement to the contrary, if (i) Federal tax reform is enacted at any time prior to the first applicable Vesting Date and (ii) the Participant has vested in any portion of the Incentive Award on or prior to the first applicable Vesting Date, then the amount payable with respect to any such portion of the Incentive Award that has so vested on or prior to the first applicable Vesting Date may, in the sole discretion of the Plan Administrator be reduced based on an assessment by the Plan Administrator in good-faith of the impact that such tax reform had on the Trading Discount Reduction that resulted in such portion of the Incentive Award becoming so vested, subject to a maximum reduction of fifty percent (50%) of the Payout Multiplier applicable to such Incentive Award.

ARTICLE 4

DIRECTOR DEFERRALS

4.1 Deferral of Director Fees . Each Participant who is an Independent Director shall irrevocably elect to defer to an amount equal to any whole number percentage of not less than fifty percent (50%) and no more than one hundred percent (100%) of his or her Director Fees by completing and executing a Deferral Agreement and filing it with the Plan Administrator within thirty (30) days after the date the Participant first becomes eligible to participate in the Plan and which shall become effective on the first day following the filing thereof; provided , that the Participant’s Deferral Agreement shall only apply with respect to such Participant’s Director Fees attributable to services not yet performed. The Director Fees paid to such Participant shall be reduced by the amount deferred under this Section 4.1.

4.2 Deferral Account . A Participant’s Deferral Account shall be credited with an amount equal to the Director Fees deferred by such Participant pursuant to Section 4.1 as of the regularly scheduled date of payment of such Director Fees, which shall be fully vested and subject to measurement prior to payout pursuant to Section 4.3.

4.3 Calculation of Payout of Deferral Account .

(a) Generally . The amounts credited to a Participant’s Deferral Account hereunder shall be accumulated in such Deferral Account and subject to the Trading Discount Reduction achieved and payout multiplier as set forth in the Deferral Agreement that apply to the Trading Discount Reduction as determined on the applicable Payment Date (as defined below).

(b) Methodology .

As of the applicable Payment Date, the amount of the Deferral Account payable to the Participant or the Participant’s Beneficiary, as applicable, shall be equal to the product of (x) the amount of the Deferral Account as of such Payment Date and (y) the applicable Payout Multiplier determined based on the Trading Discount Reduction measured as of such Payment Date. The measurement of the Trading Discount Reduction pursuant to this Section 4.3(b) shall be applied on an objective basis and consistently by the Plan Administrator from time to time; provided, that notwithstanding anything herein to the contrary, the Plan Administrator reserves the right to modify such methodology. For the avoidance of doubt, in no event shall a Participant’s Deferral Account be subject to any catch-up payment.

4.4 Payment of Deferral Account . Payment of the Participant’s Deferral Account, as adjusted pursuant to Section 4.3, shall be made to the Participant or the Participant’s Beneficiary, as applicable, in a single lump sum upon the earlier to occur of the following: (i) the Participant’s Separation from Service for any reason or (ii) a Change in Control (each, a “ Payment Date ”).

ARTICLE 5

ADMINISTRATION

5.1 Plan Administrator Authority .

(a) The Plan Administrator shall administer the Plan and shall have the power to take all action necessary or appropriate in connection with the general administration of the Plan. Without limiting the generality of the foregoing, the Plan Administrator may (i) interpret or construe the Plan, (ii) determine any facts or resolve any questions relevant to the Plan’s administration, (iii) prescribe, amend and rescind administrative rules and regulations under the Plan, (iv) resolve any dispute which may arise under the Plan involving Participants or Beneficiaries and (v) make all other administrative determinations necessary or advisable for the administration of the Plan, in all cases subject to all of the provisions of the Plan, including without limitation Article 6 hereof.

(b) The Plan Administrator may delegate any of its duties hereunder to such person or persons from time to time as it may designate.

(c) The Plan Administrator is empowered, on behalf of the Plan, to engage accountants, legal counsel and such other personnel as it deems necessary or advisable to assist it in the performance of its duties under the Plan. The functions of any such persons engaged by the Plan Administrator shall be limited to the specified services and duties for which they are engaged, and such persons shall have no other duties, obligations or responsibilities under the Plan. Such persons shall exercise no discretionary authority or discretionary control respecting the management of the Plan. All reasonable expenses thereof shall be borne by the Company.

5.2 Indemnification of Committee . Each member of the Compensation Committee of the Board, the Board or any other person who may act to fulfill the responsibilities of the Plan Administrator shall be indemnified by the Company against any and all liabilities arising by reason of any act, or failure to act, pursuant to the provisions of the Plan, including expenses reasonably incurred in the defense of any claim relating to the Plan.

ARTICLE 6

AMENDMENT AND TERMINATION OF PLAN

The Plan may be amended, suspended, discontinued or terminated at any time, in whole or in part, by the Plan Administrator; provided, that no such action shall reduce or in any manner adversely affect the rights of any Participant with respect to payments under any Incentive Award issued under the Plan prior to the date of such action, as determined by the Plan Administrator in its sole discretion. Notice of any amendment, suspension, discontinuation or termination of the Plan shall be given in writing to each Participant.

ARTICLE 7

DETERMINATION OF BENEFITS

7.1 Benefit Claims . If a Participant believes that he or she is being denied a benefit to which he or she is entitled under the Plan (hereinafter referred to as a “ Claimant ”), he or she, or his or her representative, may file a written request for such benefit with the Company, setting forth his or her claim. The request must be addressed to the Secretary of the Company (the “ Secretary ”) at its then principal place of business.

7.2 Claim Review Process . Upon receipt of a claim, the Plan Administrator shall advise the Claimant that a reply will be forthcoming within ninety (90) days and shall, in fact, deliver such reply within such period. The Plan Administrator may, however, extend the reply period for an additional ninety (90) days for reasonable cause, provided that notice of the extended reply period is provided to Claimant prior to the expiration of the initial ninety (90) day period with a description of the special circumstances requiring the extended time for review and the expected date of the completion of such review.

If the Claim is denied in whole or in part, the Plan Administrator shall adopt a written opinion, using language calculated to be understood by the Claimant, setting forth:

(a) The specific reason or reasons for such denial;

(b) The specific reference to pertinent provisions of this Plan on which such denial is based;

(c) A description of any additional material or information necessary for the Claimant to perfect his or her claim and an explanation why such material or such information is necessary;

(d) Appropriate information as to the steps to be taken if the Claimant wishes to submit the claim for review;

(e) The time limits for requesting a review under Section 7.3 and for review under Section 7.4 hereof; and

(f) A statement of the Claimant’s right to bring a civil suit under Section 502(a) of ERISA.

7.3 Benefit Denial Review . Within sixty (60) days after the receipt by the Claimant of the written opinion described above, the Claimant may request in writing that the Secretary review the Plan Administrator’s determination. Such request must be addressed to the Secretary, at the Company’s then principal place of business. The Claimant or his or her duly authorized representative may, but need not, review the pertinent documents and submit issues and comments in writing, documents, records and other information for consideration by the Secretary. If the Claimant does not request a review of the Plan Administrator’s determination by the Secretary within such sixty (60) day period, he or she shall be barred and estopped from challenging the Plan Administrator’s determination. Claimant shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the Claimant’s claim for benefits under this Plan.

7.4 Process of Review . Within sixty (60) days after the Secretary’s receipt of a request for review, he or she will review the Plan Administrator’s determination. After considering all materials presented, whether or not included or reviewed in the initial claim determination, by the Claimant, the Secretary will render a written opinion, written in a manner calculated to be understood by the Claimant, setting forth the specific reasons for the decision, containing specific references to the pertinent provisions of this Plan on which the decision is based, containing a statement that Claimant is entitled to receive, upon request and free of change, reasonable access to, and copies of, all documents, records and other information relevant to the Claimant’s claim for benefits under this Plan and containing a statement of Claimant’s right to bring an action under Section 502(a) of ERISA, if applicable. If special circumstances require that sixty (60) day time period be extended, the Secretary will so notify the Claimant prior to the expiration of such sixty ( 60) day time period and will render the decision as soon as possible, but no later than one hundred twenty (120) days after receipt of the request for review.

ARTICLE 8

MISCELLANEOUS

8.1 Unfunded/Unsecured Plan . The Company shall be obligated to make all payments under the Plan. The obligations of the Company under the Plan shall be unfunded and unsecured, and nothing contained herein shall be construed as providing for assets to be held in trust or escrow or any other form of segregation of the assets of the Company for the benefit of any Participant or any other person or persons to whom benefits are to be paid pursuant to the terms of the Plan, provided , that the Plan Administrator may, at any time and in its discretion, adopt a grantor trust or escrow for the purpose of providing a source of funds to pay Plan benefits. The interest of any Participant or any other person hereunder shall be limited to the right to receive the benefits as set forth herein. To the extent that a Participant or any other person acquires a right to receive benefits under the Plan, such rights shall be no greater than the rights of an unsecured general creditor of the Company.

8.2 No Right to Employment or Service . Neither the action of the Company in establishing the Plan, nor any action taken by the Company, the Board or any individual or member of a committee duly appointed as Plan Administrator under the provisions hereof, nor any provision of the Plan shall give a Participant any right to be retained as an Employee or Director.

8.3 No Assignment . Except as provided herein, the right of the Participant or any other person to the payment of deferred compensation or other benefits under this Plan shall not be assigned, transferred, pledged or encumbered, except by will or the laws of descent and distribution.

8.4 Withholding of Taxes . The Company or any of its Affiliates shall deduct from the amount of any payment made pursuant to this Plan or from any other amounts payable by the Company or any of its Affiliates to or with respect to a Participant any income, employment or other taxes required to be paid or withheld by the federal government or any state or local government by virtue of participation in the Plan. In no event shall the Company or its Affiliates be liable for any of a Participant’s income tax obligations.

8.5 Adjustments . In the event of a reorganization, recapitalization, stock dividend or stock split, or combination or other change in the Common Stock, the Plan Administrator shall, in order to prevent the dilution or enlargement of rights in respect of an Incentive Award granted to a Participant or a Participant’s Deferral Account, make such adjustments as the Plan Administrator in its sole discretion may determine.

8.6 Waivers . Any waiver of any right granted pursuant to the Plan shall not be valid unless the same is in writing and signed by the party waiving such right. Any such waiver shall not be deemed to be a waiver of any other rights.

8.7 Severability . In the event any one or more provisions of this Plan are held to be invalid or unenforceable, such illegality or unenforceability shall not affect the validity or enforceability of the other provisions hereof and such other provisions shall remain in full force and effect unaffected by such invalidity or unenforceability.

8.8 Captions and Gender . The captions preceding the Sections and subsections of the Plan have been inserted solely as a matter of convenience and in no way define or limit the scope or intent of any provisions of the Plan. Where the context requires, words used in the masculine gender shall be construed to include the feminine, the plural shall include the singular and the singular shall include the plural.

8.9 Choice of Law . The Plan and all rights under this Plan shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to its principles of conflicts of law, except to the extent preempted by ERISA.

8.10 Section 409A .

(a) The Plan is intended to comply with the requirements of Section 409A of the Code, and shall in all respects be interpreted and administered in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder (“ Section 409A ”). Neither the Company nor the Plan Administrator shall be obligated to perform any obligation hereunder in any case where, in the opinion of the Company’s counsel, such performance would result in

the violation of any law or regulation or failure to comply with Section 409A. Should it be determined that any provision or feature of the Plan is not in compliance with Section 409A, that provision or feature shall be null and void to the extent required to avoid the noncompliance with Section 409A; provided, that in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Participant on account of noncompliance with Section 409A.

(b) Notwithstanding anything in the Plan to the contrary, (i) if at the time of a Participant’s termination of employment with the Company or its Affiliates the Participant is a “specified employee” as defined in Section 409A of the Code, and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section 409A of the Code, then the commencement of the payment of any such payments or benefits hereunder shall be deferred (without any reduction in such payments or benefits ultimately paid or provided to the Participant) until the first business day to occur following the date that is six (6) months following the Participant’s “separation from service” (within the meaning of such term under Section 409A of the Code) with the Company (or the earliest date as is permitted under Section 409A of the Code).

(c) Notwithstanding anything in the Plan to the contrary, a termination of employment shall not be deemed to have occurred for purposes of any provision of the Plan providing for the payment of amounts or benefits upon or following a termination of employment 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 the Plan, references to a “resignation,” “termination,” “termination of employment” or like terms shall mean separation from service.

(d) For purposes of Section 409A of the Code, each payment made under the Plan shall be designated as a “separate payment” within the meaning of the Section 409A of the Code.

[Signature page follows]

I hereby certify that the foregoing Plan was duly adopted by the Board of Directors of Altaba Inc. on August 9, 2017.

I hereby certify that the foregoing Plan was approved by the shareholders of Altaba Inc. on                    , 2017. Executed on this                     day of                     , 2017.

Appendix A

For illustrative purposes, Revised Adjusted NAV Per Share shall be calculated under the Plan as follows: