From the latest SEC filing:
Reaching Internet Service Provider ("ISP") Customers. We have entered into agreements with several ISPs giving us the ability to market USABancShares.com's services directly to the ISP customers. In July 1999, we entered into a two-year agreement with EarthLink, the seventh largest ISP, pursuant to which we will provide EarthLink's subscribers (currently 1.5 million) access to a USABancShares.com/ EarthLink co-branded Website that promotes and exclusively offers our on-line financial products and services. Under this agreement, we will pay EarthLink promotion fees and a set fee for each customer generated under the agreement. The per-customer fees will be credited against the promotion fees until the promotion fees are completely offset, at which time we will pay per-customer fees in cash. In connection with this agreement, we granted EarthLink 120,000 warrants to purchase our common stock at an exercise price of $12.00 per share which vest over a two-year period. This agreement allows us to provide interactive, on-line banking services to EarthLink members as the default on-line financial services provider in select areas, such as the EarthLink Personal Start Page and the EarthLink Finance Channel Jump Page, of the EarthLink network. On September 23, 1999, EarthLink entered into a merger agreement with MindSpring Enterprises, Inc. It is anticipated that when, and if, the merger is completed the combined company will be the second largest ISP with 3.0 million customers.
We have also established other customer incentive programs through our strategic alliances with certain ISPs. These agreements include an incentive program offering up to one year of free ISP dial-up service to customers who open qualified bank accounts with us through EarthLink, UltraStar, and Webcitizen.com.
EarthLink received warrants to purchase 120,000 shares of our common stock in connection with a strategic alliance we entered into with EarthLink on July 19, 1999. The exercise price of the warrants is $12.00 per share. Of the 120,000 warrants issued, 80,000 are exercisable on or after July 22, 2000, and 40,000 are exercisable on or after July 22, 2001. |
