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

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Tarrant
• 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 Title: Exploring the Tarrant Texas Stock Option Agreement between America Online, Inc. and MapQuest. Com, Inc. Introduction: The Tarrant Texas Stock Option Agreement holds crucial significance in defining the relationship between America Online, Inc. (AOL) and MapQuest. Com, Inc. (MapQuest) within the context of stock-based compensation. This comprehensive legal document outlines the terms and conditions related to stock options granted by AOL to its employees within the Tarrant County, Texas region. Let's delve into the various aspects of this agreement, exploring its purpose, key provisions, and potential variations. Overview of the Tarrant Texas Stock Option Agreement: The Tarrant Texas Stock Option Agreement represents a legally binding agreement between AOL and MapQuest, providing employees of the latter with the opportunity to purchase company shares at a specified price within a predefined time frame. This agreement aligns incentivization strategies, fostering employee loyalty, motivation, and substantial participation in the success of MapQuest. Key Components of the Agreement: 1. Stock Option Grant: Specifies the number of options granted to eligible employees, allowing them to purchase shares of MapQuest at a predetermined price set by the agreement. 2. Exercise Period: Outlines the duration during which employees can exercise their stock options and acquire company shares. 3. Vesting Schedule: Establishes the timeframe over which employees gradually gain ownership rights to their options, often based on the length of their employment or achievement of specific performance milestones. 4. Stock Option Price: Determines the price at which employees can purchase company shares during the exercise period, usually set at fair market value. 5. Terms and Conditions: Encompasses the various provisions governing the agreement, including forfeiture clauses, transfer restrictions, and potential adjustments due to corporate changes, mergers, acquisitions, or other events. 6. Termination and Change of Control: Defines circumstances under which stock options may be forfeited, such as termination of employment, resignation, retirement, or acquisition of MapQuest by another company. 7. Tax Implications: Highlights the tax considerations associated with stock options and the responsibility of the employees to comply with relevant tax laws. Potential Variations of Tarrant Texas Stock Option Agreement: While the precise details of the agreement between AOL and MapQuest may only be disclosed in these companies' confidential documents, here are potential variations or subcategories that might exist within the Tarrant Texas Stock Option Agreement: 1. Non-Qualified Stock Options: Provides employees with flexibility to exercise stock options, potentially requiring tax payments upon the exercise. 2. Incentive Stock Options: Offers tax advantages for employees, subject to various statutory limitations and requirements. 3. Restricted Stock Units (RSS) or Performance Stock Units (Plus): Alters the nature of equity grants by providing employees with a stake in company shares based on specific criteria, such as company performance goals or tenure-related milestones. 4. Early Exercise Provision: Allows employees to exercise their stock options before they fully vest, aiming to realize potential tax benefits and secure ownership of shares. 5. Reload Options or Stock Option Replenishment: Enables employees to receive additional stock options upon exercising initial options, ensuring continuous incentives and longevity in the company. Conclusion: The Tarrant Texas Stock Option Agreement between AOL and MapQuest illustrates a mutually beneficial arrangement, providing employees with the opportunity to participate in the company's growth and success. This comprehensive agreement represents a vital element in fostering employee engagement, loyalty, and aligning interests between AOL and MapQuest, while considering various tax regulations and corporate events occurring within the Tarrant County, Texas region.

Title: Exploring the Tarrant Texas Stock Option Agreement between America Online, Inc. and MapQuest. Com, Inc. Introduction: The Tarrant Texas Stock Option Agreement holds crucial significance in defining the relationship between America Online, Inc. (AOL) and MapQuest. Com, Inc. (MapQuest) within the context of stock-based compensation. This comprehensive legal document outlines the terms and conditions related to stock options granted by AOL to its employees within the Tarrant County, Texas region. Let's delve into the various aspects of this agreement, exploring its purpose, key provisions, and potential variations. Overview of the Tarrant Texas Stock Option Agreement: The Tarrant Texas Stock Option Agreement represents a legally binding agreement between AOL and MapQuest, providing employees of the latter with the opportunity to purchase company shares at a specified price within a predefined time frame. This agreement aligns incentivization strategies, fostering employee loyalty, motivation, and substantial participation in the success of MapQuest. Key Components of the Agreement: 1. Stock Option Grant: Specifies the number of options granted to eligible employees, allowing them to purchase shares of MapQuest at a predetermined price set by the agreement. 2. Exercise Period: Outlines the duration during which employees can exercise their stock options and acquire company shares. 3. Vesting Schedule: Establishes the timeframe over which employees gradually gain ownership rights to their options, often based on the length of their employment or achievement of specific performance milestones. 4. Stock Option Price: Determines the price at which employees can purchase company shares during the exercise period, usually set at fair market value. 5. Terms and Conditions: Encompasses the various provisions governing the agreement, including forfeiture clauses, transfer restrictions, and potential adjustments due to corporate changes, mergers, acquisitions, or other events. 6. Termination and Change of Control: Defines circumstances under which stock options may be forfeited, such as termination of employment, resignation, retirement, or acquisition of MapQuest by another company. 7. Tax Implications: Highlights the tax considerations associated with stock options and the responsibility of the employees to comply with relevant tax laws. Potential Variations of Tarrant Texas Stock Option Agreement: While the precise details of the agreement between AOL and MapQuest may only be disclosed in these companies' confidential documents, here are potential variations or subcategories that might exist within the Tarrant Texas Stock Option Agreement: 1. Non-Qualified Stock Options: Provides employees with flexibility to exercise stock options, potentially requiring tax payments upon the exercise. 2. Incentive Stock Options: Offers tax advantages for employees, subject to various statutory limitations and requirements. 3. Restricted Stock Units (RSS) or Performance Stock Units (Plus): Alters the nature of equity grants by providing employees with a stake in company shares based on specific criteria, such as company performance goals or tenure-related milestones. 4. Early Exercise Provision: Allows employees to exercise their stock options before they fully vest, aiming to realize potential tax benefits and secure ownership of shares. 5. Reload Options or Stock Option Replenishment: Enables employees to receive additional stock options upon exercising initial options, ensuring continuous incentives and longevity in the company. Conclusion: The Tarrant Texas Stock Option Agreement between AOL and MapQuest illustrates a mutually beneficial arrangement, providing employees with the opportunity to participate in the company's growth and success. This comprehensive agreement represents a vital element in fostering employee engagement, loyalty, and aligning interests between AOL and MapQuest, while considering various tax regulations and corporate events occurring within the Tarrant County, Texas region.