The Alaska Stock Option Plan of Sunrise Assisted Living, Inc. is a comprehensive program designed to grant Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS) to eligible employees, consultants, and advisers. This plan aims to provide a competitive compensation package and incentivize long-term commitment and dedication to the company. Under the Alaska Stock Option Plan, the company rewards employees and other eligible individuals with the opportunity to purchase company stock at a predetermined price, known as the exercise price, within a specified period. This enables the participants to potentially benefit from any future increase in the stock price. Incentive Stock Options (SOS) are a type of stock option that offers various tax advantages to employees. These options are only available to employees of the company and are governed by strict rules and regulations set by the Internal Revenue Service (IRS). SOS typically have longer vesting periods and must be exercised within a specific timeframe to maintain their favorable tax treatment. Nonqualified Stock Options (SOS), on the other hand, are stock options that do not comply with the stringent requirements of SOS. SOS offer more flexibility in terms of eligibility, as they can be granted to employees, consultants, and advisers. Unlike SOS, SOS are subject to ordinary income tax rates upon exercise. The Alaska Stock Option Plan serves as a mechanism to attract, retain, and motivate talented individuals by providing them with a financial stake in the company's success. It aligns the interests of the employees, consultants, and advisers with the overall performance of Sunrise Assisted Living, Inc. and fosters a sense of ownership and loyalty. By participating in the Alaska Stock Option Plan, employees have the opportunity to share in the company's growth and success, allowing them to reap the benefits of their hard work and dedication. Consultants and advisers, who play a vital role in the company's operations and growth, also have a chance to align their interests with those of the company through the NO grants. Overall, the Alaska Stock Option Plan of Sunrise Assisted Living, Inc. aims to reward and incentivize employees, consultants, and advisers through the grant of Incentive Stock Options and Nonqualified Stock Options. It provides an avenue for individuals to become stakeholders in the company's success and offers potential financial rewards for their contributions.