The Arizona Directors and Distributors Stock Option Plan is a program designed to provide directors and distributors in Arizona with the opportunity to acquire stocks in a company as a form of compensation. This plan enables these individuals to purchase a specific number of company shares at a predetermined price within a specified time frame. Arizona Directors and Distributors Stock Option Plan is structured to incentivize these stakeholders by allowing them to benefit from the company's growth and performance. By offering stock options, the plan aligns the interests of directors and distributors with those of the company, fostering a sense of ownership and dedication to its success. There are several types of Arizona Directors and Distributors Stock Option Plans that companies may offer. These include: 1. Non-Qualified Stock Options (SOS): Non-Qualified Stock Options are the most common type of stock options offered under the Arizona Directors and Distributors Stock Option Plan. SOS provide flexibility in terms of taxation and generally do not meet the strict tax qualifications of Incentive Stock Options (SOS). SOS can be offered at a discount or at the current market price. 2. Incentive Stock Options (SOS): Incentive Stock Options provide favorable tax treatment for qualified employees or directors. These options are subject to certain requirements imposed by the Internal Revenue Code (IRC), including a limit on the exercise price, holding periods, and the maximum number of shares that can be granted. SOS are often used as a way to further incentivize top-performing directors and distributors. 3. Restricted Stock Units (RSS): While not technically options, Restricted Stock Units are another form of equity compensation offered under the Arizona Directors and Distributors Stock Option Plan. RSS represents a promise to deliver company shares at a future date, typically upon the achievement of certain performance goals or the passage of a predetermined vesting period. Companies that offer the Arizona Directors and Distributors Stock Option Plan aim to provide a competitive compensation package to attract and retain top talent. This plan serves as a valuable tool for aligning the interests of directors and distributors with the long-term success of the company, ultimately driving growth and shareholder value.