Hawaii Stock Option Agreement between America Online, Inc. and Mapquest.Com, Inc.

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-EG-9052
• Format: Word; Rich Text

Description

Stock-Option Agreement between America Online, Inc. and Mapquest.Com, Inc. dated December 21, 1999. 14 pages Hawaii Stock Option Agreement between America Online, Inc. and MapQuest. Com, Inc. is a legally binding contract that outlines the terms and conditions of stock options granted to MapQuest. Com, Inc. employees by America Online, Inc. In this agreement, specific details regarding the shares, exercise price, vesting period, and other pertinent provisions related to stock options are enumerated. A stock option serves as a financial incentive for employees, allowing them to purchase a specific number of shares at a predetermined price, typically lower than the market value. This agreement provides MapQuest. Com, Inc. employees with the opportunity to acquire a stake in America Online, Inc.'s stock, aligning their interests with the company's performance. The Hawaii Stock Option Agreement provides several types of stock options, including: 1. Non-Qualified Stock Options (Nests): These options offer employees flexibility in terms of exercising the options and tax implications. Nests are subject to income taxation at the time of exercise, based on the difference between the exercise price and the fair market value of the shares on that date. 2. Incentive Stock Options (SOS): SOS are often granted to key employees to incentivize long-term commitment and performance. These options have certain tax advantages as they are taxed at the time of sale rather than exercise. However, specific conditions, such as holding the shares for a predetermined period, must be met to maintain these benefits. 3. Restricted Stock Units (RSS): RSS represent a promise to deliver shares at a future date, subject to vesting requirements established by the agreement. Unlike stock options, RSS are not purchased; instead, they are granted to employees as part of their compensation package. Once the vesting period is complete, the employee will receive the stock equivalent or its cash value. The Hawaii Stock Option Agreement also addresses specific terms, including the number of shares offered, the exercise price (also known as the strike price), the vesting schedule, and any restrictions on transfer or sale of the shares. It may include clawback provisions, which allow the company to recoup the option gains under certain circumstances, such as an employee's termination for cause. This agreement aims to effectively align employee and shareholder interests while providing a means of rewarding and retaining valuable talent within MapQuest. Com, Inc. The terms outlined within the agreement, such as the stock options types, allow employees to participate in the growth and success of America Online, Inc. while maintaining a focus on enhancing their own financial well-being.

Hawaii Stock Option Agreement between America Online, Inc. and MapQuest. Com, Inc. is a legally binding contract that outlines the terms and conditions of stock options granted to MapQuest. Com, Inc. employees by America Online, Inc. In this agreement, specific details regarding the shares, exercise price, vesting period, and other pertinent provisions related to stock options are enumerated. A stock option serves as a financial incentive for employees, allowing them to purchase a specific number of shares at a predetermined price, typically lower than the market value. This agreement provides MapQuest. Com, Inc. employees with the opportunity to acquire a stake in America Online, Inc.'s stock, aligning their interests with the company's performance. The Hawaii Stock Option Agreement provides several types of stock options, including: 1. Non-Qualified Stock Options (Nests): These options offer employees flexibility in terms of exercising the options and tax implications. Nests are subject to income taxation at the time of exercise, based on the difference between the exercise price and the fair market value of the shares on that date. 2. Incentive Stock Options (SOS): SOS are often granted to key employees to incentivize long-term commitment and performance. These options have certain tax advantages as they are taxed at the time of sale rather than exercise. However, specific conditions, such as holding the shares for a predetermined period, must be met to maintain these benefits. 3. Restricted Stock Units (RSS): RSS represent a promise to deliver shares at a future date, subject to vesting requirements established by the agreement. Unlike stock options, RSS are not purchased; instead, they are granted to employees as part of their compensation package. Once the vesting period is complete, the employee will receive the stock equivalent or its cash value. The Hawaii Stock Option Agreement also addresses specific terms, including the number of shares offered, the exercise price (also known as the strike price), the vesting schedule, and any restrictions on transfer or sale of the shares. It may include clawback provisions, which allow the company to recoup the option gains under certain circumstances, such as an employee's termination for cause. This agreement aims to effectively align employee and shareholder interests while providing a means of rewarding and retaining valuable talent within MapQuest. Com, Inc. The terms outlined within the agreement, such as the stock options types, allow employees to participate in the growth and success of America Online, Inc. while maintaining a focus on enhancing their own financial well-being.