Maine Stock Option Agreement: A Comprehensive Overview of the Agreement Types between America Online, Inc. and MapQuest. Com, Inc. Introduction: The Maine Stock Option Agreement between America Online, Inc. (AOL) and MapQuest. Com, Inc. represents a legally binding contract that outlines the terms and conditions related to stock options granted by AOL to MapQuest. Com, Inc. This detailed description aims to provide an overview of the agreement types associated with this partnership. 1. Vesting Agreement: The Vesting Agreement is a crucial component of the Maine Stock Option Agreement. It specifies the time frame during which MapQuest. Com, Inc. employees can exercise their stock options. Typically, a vesting schedule is established, ensuring that stock options become gradually exercisable over a certain period. This incentivizes employees to remain with the company, fostering long-term commitment and alignment of interests. 2. Exercise Price: The Maine Stock Option Agreement defines the exercise price, which is the price at which MapQuest. Com, Inc. employees can purchase AOL's stock. This price is predetermined and can vary, depending on the specific agreement terms. Generally, the exercise price is set at a discount to the current market price, allowing employees to benefit from potential capital gains in the future. 3. Expiration and Termination: The agreement also highlights the expiration and termination dates associated with the stock options. Expiration typically occurs several years after the grant date, providing employees with a sufficient window to exercise their options. Termination clauses may be included to address scenarios such as employee departure or acquisition and outline the implications for vested and invested options. 4. Stock Option Types: Within the Maine Stock Option Agreement, various types of stock options may be specified, each with distinct characteristics: a. Non-Qualified Stock Options (SOS): SOS are often granted to employees, allowing them to purchase stock at a predetermined price. These options are subject to ordinary income tax upon exercise, based on the spread between the fair market value and the exercise price. b. Incentive Stock Options (SOS): SOS provide additional tax advantages as they are taxed at long-term capital gains rates instead of ordinary income tax rates. Certain eligibility criteria, set by the Internal Revenue Code, must be met to qualify for ISO status. c. Restricted Stock Units (RSS): RSS represent promises by AOL to deliver stock in the future, usually upon the satisfaction of certain performance or time-based conditions. RSS do not grant immediate ownership but rather convert into actual stock at a later date. Conclusion: The Maine Stock Option Agreement between America Online, Inc. and MapQuest. Com, Inc. encompasses various types of stock options agreements. These agreements govern the terms of employee stock option grants, including vesting, exercise prices, expiration, and termination. By offering stock options, AOL aims to incentivize and reward employees, aligning their interests with the long-term growth of the company.
Maine Stock Option Agreement between America Online, Inc. and Mapquest.Com, Inc.
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How to fill out Maine Stock Option Agreement Between America Online, Inc. And Mapquest.Com, Inc.?
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FAQ
A share vesting agreement (SVA) is a contract between a business and an employee, whereby the employee is provided with new shares that vest over time. These agreements lay out the terms and conditions regarding vested shares, as well as the options in relation to vesting.
Stock option grants are how your company awards stock options. This document usually includes details about: The type of stock options you'll receive (ISOs or NSOs) The number of shares you can purchase.
An example of this would be a company granting a new employee 50 shares of shock that are vested over a period of two years. This entails that the employee is going to gain this stock only once these two years of working at the company are completed.
Example of an Option. Suppose that Microsoft (MFST) shares trade at $108 per share and you believe they will increase in value. You decide to buy a call option to benefit from an increase in the stock's price. You purchase one call option with a strike price of $115 for one month in the future for 37 cents per contract ...
For example, you may be granted the right to buy 1,000 shares, with the options vesting 25% per year over four years with a term of 10 years. So 25% of the ESOs, conferring the right to buy 250 shares would vest in one year from the option grant date, another 25% would vest two years from the grant date, and so on.
When you're granted stock options, you're given the opportunity to purchase company shares in the future at the strike price. While you may be able to get the stock at a discounted price, you still have to pay for it. RSUs, on the other hand, are compensation in the form of stock.
A share option agreement is an agreement between the holder of shares and a third party giving one party the right (but not the obligation) to purchase or sell shares at a future date, at an agreed price. If the option is exercised, the other party is obliged to purchase or sell those shares.