Aug. 9 (Bloomberg) -- Google Inc., owner of the world's most-used Internet search engine, will give AOL as much as $400 million over five years under an Internet advertising agreement.

Google will make as much as $100 million in co-marketing payments and give AOL up to $300 million in advertising credits over the life of the agreement, signed in March, Mountain View, California-based Google said today in a regulatory filing.

The deal shows how much Google is willing to pay to make its search engine part of some of the Internet's most popular sites. On Aug. 8, Google said it won rights to provide search and advertising services on News Corp.'s MySpace.com Web site, which has about 52.3 million young users, bumping Yahoo! Inc. News Corp. will receive at least $900 million over three years.

Under the agreement with AOL, which had 17.7 million U.S. members as of June 30, Google's marketing payments will not exceed $20 million a year, plus amounts not spent in previous years, Google said in the filing today. Advertising credits will not exceed $60 million a year plus any unredeemed from earlier periods, Google said.

Shares of Google fell $4.06 to $376.94 at 4 p.m. New York time in Nasdaq Stock Market composite trading before the filing was released. They have fallen 9.1 percent this year. Shares of New York-based Time Warner Inc., owner of AOL, fell 35 cents to $15.84 and have fallen 9.2 percent this year.

To contact the reporter on this story: Jonathan Thaw in San Francisco at jthaw@bloomberg.net

Last Updated: August 9, 2006 19:03 EDT