Title: Understanding the New Jersey Stock Option Agreement between America Online, Inc. and MapQuest. Com, Inc. Introduction: The New Jersey Stock Option Agreement between America Online, Inc. (AOL) and MapQuest. Com, Inc. is a legally binding contract that outlines the terms and conditions related to stock options granted by AOL to MapQuest. Com, Inc. This agreement enables MapQuest. Com, Inc. employees to purchase company shares at a predetermined price, thereby creating potential long-term incentives and aligning their interests with the success of the organization. Let's delve into the essential aspects of this agreement, including its types if applicable, to gain a comprehensive understanding. Key components of the New Jersey Stock Option Agreement: 1. Parties Involved: The agreement involves two parties: America Online, Inc. (the "Granter") and MapQuest. Com, Inc. (the "Grantee"). America Online, Inc., now known as AOL, operates as a subsidiary of Verizon Communications and is the parent company. 2. Purpose: The primary objective of the agreement is to provide eligible employees of MapQuest. Com, Inc. with the opportunity to purchase company shares at a predetermined exercise price, usually lower than the market value. This aims to motivate employees, align their interests with long-term company performance, and encourage loyalty. 3. Granting of Options: The Stock Option Agreement specifies the number of stock options granted to MapQuest. Com, Inc. Employees. It outlines the vesting schedule, which determines when the stock options become exercisable and allows the employee to acquire shares. Vesting periods may vary and are typically measured based on the employee's tenure with the company. 4. Exercise Price and Timing: This agreement defines the exercise price, which is the price at which employees can purchase company shares. Typically, the exercise price is equal to or slightly higher than the prevailing market price at the time of grant. The expiration date is specified, determining the last date an employee can exercise their options. 5. Tax Implications: The New Jersey Stock Option Agreement may touch upon the tax implications associated with exercising stock options. It may provide guidance on the treatment of stock options under applicable local and federal tax laws, assisting employees in understanding their tax obligations. Types of New Jersey Stock Option Agreements (if applicable): 1. Non-Qualified Stock Options (SOS) Agreement: SOS are more flexible than their qualified counterparts, allowing companies to offer stock options to employees, directors, and consultants. The New Jersey Stock Option Agreement may outline terms and conditions specific to SOS while granting flexibility to AOL and MapQuest. Com, Inc. 2. Incentive Stock Options (SOS) Agreement: SOS are more strictly regulated and have certain eligibility criteria. Should AOL and MapQuest. Com, Inc. opt to offer SOS, a separate agreement may be formulated. SOS offer potentially favorable tax treatment as compared to SOS, subject to specific IRS requirements. Conclusion: The New Jersey Stock Option Agreement between America Online, Inc. and MapQuest. Com, Inc. holds paramount importance in rewarding and motivating employees by granting them the opportunity to purchase company shares. The agreement outlines essential elements such as grant details, vesting schedules, exercise prices, and tax implications. By aligning the employees' interests with the success of the company, this agreement fosters a sense of loyalty and commitment while promoting long-term growth.
New Jersey Stock Option Agreement between America Online, Inc. and Mapquest.Com, Inc.
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How to fill out New Jersey Stock Option Agreement Between America Online, Inc. And Mapquest.Com, Inc.?
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