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

State:
Multi-State
County:
Maricopa
Control #:
US-EG-9052
Format:
Word; 
Rich Text
Instant download

Description

Stock-Option Agreement between America Online, Inc. and Mapquest.Com, Inc. dated December 21, 1999. 14 pages

Maricopa Arizona Stock Option Agreement is a legal document that outlines the terms and conditions of the stock options granted by America Online, Inc. (AOL) to MapQuest. Com, Inc. (MapQuest), both entities being involved in the technology industry. This agreement aims to provide MapQuest with the opportunity to purchase a specific number of shares of AOL's stock at a predetermined price, known as the exercise price, within a predetermined time period. This Stock Option Agreement establishes a contractual relationship between AOL and MapQuest, wherein MapQuest is granted the right to purchase AOL's stock options. The agreement includes various sections carefully outlining the rights and obligations of both parties involved. These sections generally cover topics such as the grant of options, exercise price, vesting period, termination, and change of control provisions. The agreement typically specifies the number of stock options allocated to MapQuest, indicating the quantity of shares that may be purchased at the exercise price. The exercise price is often set below the fair market value at the time of granting the options, allowing MapQuest to enjoy potential financial gains in the future. Furthermore, the agreement outlines the vesting period within which MapQuest must exercise its stock options. Vesting refers to the time-based progression imposed on the options, ensuring that MapQuest remains associated with AOL for a specific duration before being able to fully acquire the options. This provision is often established to incentivize MapQuest to stay with AOL and contribute to its success. In addition, the Maricopa Arizona Stock Option Agreement between AOL and MapQuest may include clauses related to termination. These clauses outline the circumstances under which the agreement may be terminated, such as the departure of MapQuest from AOL or certain changes in the corporate structure of either party. Different types of Maricopa Arizona Stock Option Agreements may exist between AOL and MapQuest, depending on their specific needs and objectives. These variations could include differing exercise prices, vesting schedules, or even unique provisions tailored to the specific agreement. In summary, the Maricopa Arizona Stock Option Agreement between America Online, Inc. and MapQuest. Com, Inc. is a legally binding document that outlines the terms and conditions surrounding the grant and exercise of stock options. It serves as a mechanism to incentivize MapQuest and foster a mutually beneficial relationship between the two companies in the fast-paced technology industry.

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FAQ

Overview of Three Types of ESOPs Nonleveraged ESOP. This first type of ESOP (Diagram 1) does not involve borrowed funds to acquire the sponsoring employer's stock.Leveraged Buyout ESOP.Issuance ESOP.

An ESOP is a financial buyer, not a strategic buyer, and so it can only pay fair market value to the current owner. A competitor, in contrast, may pay a premium to acquire the company and the current ownership can receive top dollar. Companies require strong management to succeed during an ESOP transition.

You have taxable income or deductible loss when you sell the stock you bought by exercising the option. You generally treat this amount as a capital gain or loss. However, if you don't meet special holding period requirements, you'll have to treat income from the sale as ordinary income.

The option gives the holder the right to acquire a share in certain circumstances and at a certain price (the exercise price). The exercise price might be the market value of the shares on the date of option grant, or be a fairly nominal amount. Share options can be a tax-efficient way of remunerating employees.

Employee Stock Option Plan (ESOP) is an option given to directors, officers or permanent employees of a company or of its subsidiary, in India or outside India, or of a holding company or associate company of the company to purchase or subscribe the securities offered by the company at a future date, at a concessional

For example, a stock option is for 100 shares of the underlying stock. Assume a trader buys one call option contract on ABC stock with a strike price of $25. He pays $150 for the option. On the option's expiration date, ABC stock shares are selling for $35.

A stock option is a contract that gives its owner the right, but not the obligation, to buy or sell shares of a corporation's stock at a predetermined price by a specified date. Private company stock options are call options, giving the holder the right to purchase shares of the company's stock at a specified price.

An employee stock ownership plan (ESOP) is an IRC section 401(a) qualified defined contribution plan that is a stock bonus plan or a stock bonus/money purchase plan.

Stock options at private companies are often issued with a low strike price. This allows you a chance to buy shares for a low cost, which requires less cash up front. This is a good thing when you consider how your cash flow will be impacted by an exercise ? but this is only one thing to consider.

An employee stock ownership plan (ESOP) is an employee benefit plan that gives workers ownership interest in the company in the form of shares of stock. ESOPs encourage employees to give their all as the company's success translates into financial rewards.

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