Treatment Agreement: Definition, Terms, Example
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What is a Treatment Agreement?
A treatment agreement is a contract between a company and an investor that outlines the current state of equity and other terms and conditions. The contract includes details about annual review options, LTI options, and vested options. It also includes an in-depth description about the treatment of unvested options. This contract is most commonly used when a shareholder desires to forfeit all or a portion of their owned shares.
The purpose of the treatment agreement is to ensure that all parties understand and acknowledge the terms and conditions of the business relationship.
Common Sections in Treatment Agreements
Below is a list of common sections included in Treatment Agreements. These sections are linked to the below sample agreement for you to explore.
Treatment Agreement Sample
Annual Review Options | |
o “Unvested 2014 ARO” § Option for 50,000 Shares § $78.52/Share exercise price § Vests February 26, 2018 § Expires February 26, 2021 | o “Unvested 2015 ARO” § Option for 125,000 Shares § $91.75/Share exercise price § 50% vests February 27, 2018 § 50% vests February 27, 2019 § Expires February 27, 2022 |
2015 LTI Options | |
o “2015 SBO” § Option for 1,600,000 Shares § $95.00/Share exercise price § 50% vests March 31, 2018 § 50% vests March 31, 2020 § Expires March 31, 2022 | o “2015 PBO” § Option for 1,100,000 Shares § $95.00/Share exercise price § Vests September 30, 2020 if price goal met § Expires March 31, 2022 |
o | Option for 72,383 Shares; $18.63/Share strike; expiring March 1, 2018 |
o | Option for 300,000 Shares; $56.99/Share strike; expiring July 31, 2019 |
o | Option for 200,000 Shares; $65.75/Share strike; expiring March 13, 2020 |
o | Option for 150,000 Shares; $78.52/Share strike; expiring February 26, 2021 |
o | Option for 125,000 Shares; $91.75/Share strike; expiring February 27, 2022 |
EXPEDIA, INC. | ||
By: /s/ Robert J. Dzielak | ||
Name: | Robert J. Dzielak | |
Title: | Executive Vice President, General Counsel and Secretary | |
By: /s/ Dara Khosrowshahi | ||
DARA KHOSROWSHAHI | ||
Reference:
Security Exchange Commission - Edgar Database, EX-10.4 5 ex104_dketafinal.htm EXHIBIT 10.4, Viewed October 27, 2022, View Source on SEC.
Who Helps With Treatment Agreements?
Lawyers with backgrounds working on treatment agreements work with clients to help. Do you need help with a treatment agreement?
Post a project in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate treatment agreements. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.
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Meet some of our Treatment Agreement Lawyers
Robert A.
Robert A.
Robert McMillan Arthur is a collaborative attorney and mediator practicing across Wisconsin, with offices in the Metro Milwaukee area and Northeastern Wisconsin. He is a general practitioner, concentrating in Small Business Law, Entertainment Law, Intellectual Property Law, Nonprofit Law, Divorce and Family Law. Robert’s business law practice focuses on the needs of small, closely-held businesses and startups. As a veteran of a family owned business, Robert applies his extensive experience to advise his clients in a broad spectrum of legal issues, including contracts, licensing, trademark, copyright, employment, and business formation. With multidisciplinary qualifications and experiences, Robert chose his career in law to help people caught up in difficult situations in their personal or professional lives. His core principle of law practice is based on empowering and informing clients, advocating for their interests when appropriate, and guiding them in difficult problem solving.
"Robert did a wonderful job with assisting us with our project!"
Kevin A.
With nearly 20 years’ experience as a seasoned commercial real estate attorney, I am highly proficient in property acquisitions, financing, sales and transfers (including renewable energy and telecommunications projects), commercial lease agreements (office, industrial, retail, and hospitality), construction and property management contracts, due diligence matters, title and survey analysis, strategic litigation oversight, and corporate and regulatory compliance (operating agreements, bylaws, shareholder agreements, NDAs, and indemnity agreements).
"I hired Kevin to review a business lease and purchase agreement - he was extremely helpful and knowledgeable. 10/10, highly recommend!"
March 29, 2024
Charles D.
I have practiced civil law for 13 years and have concentrated my practice serving the construction and real estate industries.
April 8, 2024
Steve H.
Steve has 20+ years of IP and litigation experience, including 10+ years of experience at two of the most prestigious large U.S. law firms, Greenberg Traurig LLP, (AMLAW 10) and Sheppard Mullin LLP (AMLAW 100). Steve has been a licensed U.S. Patent and Trademark Office registered attorney and litigator since 2002. Steve’s extensive experience and interpersonal skills have given him the skills that allow him to provide his clients with the very best quality and service. Steve has successfully represented clients achieve their goals in a variety of IP, patent, trademark and trade secret disputes. He has successfully obtained many hundreds, if not over a thousand, valid and enforceable U.S. and international patents and trademarks applications for his clients over the years. As a result, he has strong, longstanding relationships with many of the Examiners at the USPTO and works with an international team of foreign associates to secure foreign rights and litigate abroad whenever needed. Many of Steve’s clients have been a client of Partners Law Group for 5+ years. More than a few have been clients for 15+ years. Steve prides himself on providing accurate results and efficiency-driven advice on complicated IP, litigation, and real estate matters in a clear and concise way; helping his clients make the best decisions possible when dealing with complex and sensitive legal matters. Steve has successfully negotiated hundreds of complicated licensing and pre-litigation IP, patent, trademark, business, real estate cases and matters for various clients large and small. Steve’s IP practice focuses on all aspects of intellectual property and covers various technical disciplines. He has extensive experience in medical devices, pharmaceuticals, internet or business methods and processes, broadband and 5G technologies, data acquisition, migration, monitoring and protection, piracy, nutritional supplements, sports and nutrition products, herbal products, pharmaceuticals, orthodontics, and surgical procedures and devices, health-related products to computer hardware and software, music, and mobile device applications, hardware and software, business methods, industrial machinery, mechanical devices to other technologies he understands and believes he can help the client achieve his or her goals.
April 10, 2024
Gordon F.
30+ Years counseling clients in entertainment, media and the arts and representing them in transactional, structural and strategic matters.
April 17, 2024
Eugene S.
I have experience with the protection and monetization of intellectual property, negotiating license agreements that have earned several hundred thousand dollars in revenue, and I have negotiated multiple multi-million dollar agreements. Additionally, I have worked with various client to incorporate intellectual property strategies into their underlying business plans. I have been working remotely for over seven years and I have a home office dedicated to my work. I am available to travel to clients on an as needed basis. I enjoy working with clients in this manner because the costs are reduced, and I have the freedom to travel to my clients as needed.
April 11, 2024
Kelly C.
Hello! I'm an attorney who practices mainly landlord/tenant law (eviction, both plaintiff and defendant side); and criminal law (misdemeanor). I also work as appearance counsel to fill in at hearing when conflicts arise for other lawyers.
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