Stock-Option Agreement between America Online, Inc. and Mapquest.Com, Inc. dated December 21, 1999. 14 pages
Title: Texas Stock Option Agreement between America Online, Inc. and MapQuest. Com, Inc.: A Comprehensive Overview Introduction: The Texas Stock Option Agreement between America Online, Inc. and MapQuest. Com, Inc. is a legally binding document that outlines the terms and conditions governing stock options granted by America Online, Inc., a renowned technology company, to MapQuest. Com, Inc., a leading mapping and navigation service. This agreement serves as an essential tool for incentivizing MapQuest. Com, Inc.'s employees and aligning their interests with the company's overall growth and success. Let's delve deeper into the intricacies of this agreement, taking into account different types that may exist. 1. Key Elements of a Texas Stock Option Agreement: A) Grant of Stock Options: This section defines the scope and nature of the stock options being granted, including the number of shares, exercise price, vesting schedule, and expiration date. B) Exercise Period: Specifies the timeframe during which the stock options can be exercised by the vested option holders. C) Stock Option Exercise Price: States the price at which the option holder can purchase the company's stock. D) Stock Option Vesting: Outlines the vesting schedule, which determines the gradual acquisition of the rights to exercise the stock options over a defined period. E) Termination Provisions: Establishes conditions under which the stock options may be terminated prematurely, such as employment termination, death, disability, or change of control events. F) Tax Implications: Discusses the tax obligations and potential consequences associated with exercising the stock options. 2. Different Types of Texas Stock Option Agreements: A) Incentive Stock Options (SOS): These options can receive favorable tax treatment if certain requirements, as laid out by the Internal Revenue Service (IRS), are met. SOS are typically offered to key employees and must meet specific criteria under the Internal Revenue Code. B) Non-Qualified Stock Options (SOS): Unlike SOS, SOS do not meet specific IRS criteria and are subject to ordinary income tax rates upon exercise. However, SOS offer greater flexibility in terms of eligibility and can be granted to employees, directors, consultants, and other individuals. C) Restricted Stock Units (RSS): Although not strictly categorized as stock options, RSS are a form of equity compensation that grants employees the right to receive actual shares of company stock at a future date, subject to vesting conditions. RSS are becoming increasingly popular due to their simplicity and flexibility. Conclusion: The Texas Stock Option Agreement between America Online, Inc. and MapQuest. Com, Inc. serves as a crucial agreement that outlines the terms, conditions, and benefits associated with the granting of stock options. By offering different types such as Incentive Stock Options (SOS), Non-Qualified Stock Options (SOS), and Restricted Stock Units (RSS), both companies can effectively align employee incentives, foster employee loyalty, and fuel growth for MapQuest. Com, Inc. This agreement represents a powerful tool within the realm of executive compensation strategies and reinforces the strong relationship between these two prominent organizations.
Title: Texas Stock Option Agreement between America Online, Inc. and MapQuest. Com, Inc.: A Comprehensive Overview Introduction: The Texas Stock Option Agreement between America Online, Inc. and MapQuest. Com, Inc. is a legally binding document that outlines the terms and conditions governing stock options granted by America Online, Inc., a renowned technology company, to MapQuest. Com, Inc., a leading mapping and navigation service. This agreement serves as an essential tool for incentivizing MapQuest. Com, Inc.'s employees and aligning their interests with the company's overall growth and success. Let's delve deeper into the intricacies of this agreement, taking into account different types that may exist. 1. Key Elements of a Texas Stock Option Agreement: A) Grant of Stock Options: This section defines the scope and nature of the stock options being granted, including the number of shares, exercise price, vesting schedule, and expiration date. B) Exercise Period: Specifies the timeframe during which the stock options can be exercised by the vested option holders. C) Stock Option Exercise Price: States the price at which the option holder can purchase the company's stock. D) Stock Option Vesting: Outlines the vesting schedule, which determines the gradual acquisition of the rights to exercise the stock options over a defined period. E) Termination Provisions: Establishes conditions under which the stock options may be terminated prematurely, such as employment termination, death, disability, or change of control events. F) Tax Implications: Discusses the tax obligations and potential consequences associated with exercising the stock options. 2. Different Types of Texas Stock Option Agreements: A) Incentive Stock Options (SOS): These options can receive favorable tax treatment if certain requirements, as laid out by the Internal Revenue Service (IRS), are met. SOS are typically offered to key employees and must meet specific criteria under the Internal Revenue Code. B) Non-Qualified Stock Options (SOS): Unlike SOS, SOS do not meet specific IRS criteria and are subject to ordinary income tax rates upon exercise. However, SOS offer greater flexibility in terms of eligibility and can be granted to employees, directors, consultants, and other individuals. C) Restricted Stock Units (RSS): Although not strictly categorized as stock options, RSS are a form of equity compensation that grants employees the right to receive actual shares of company stock at a future date, subject to vesting conditions. RSS are becoming increasingly popular due to their simplicity and flexibility. Conclusion: The Texas Stock Option Agreement between America Online, Inc. and MapQuest. Com, Inc. serves as a crucial agreement that outlines the terms, conditions, and benefits associated with the granting of stock options. By offering different types such as Incentive Stock Options (SOS), Non-Qualified Stock Options (SOS), and Restricted Stock Units (RSS), both companies can effectively align employee incentives, foster employee loyalty, and fuel growth for MapQuest. Com, Inc. This agreement represents a powerful tool within the realm of executive compensation strategies and reinforces the strong relationship between these two prominent organizations.