The District of Columbia Stock Option Plan for Nonemployee Directors is a comprehensive equity compensation program designed for non-employee directors of Cameo International, Inc. This plan provides an attractive incentive package to reward these directors for their contributions to the company's success. With a focus on stock options, the plan allows non-employee directors to participate in the company's future growth and financial performance. Under this plan, non-employee directors are granted stock options, which provide them with the right to purchase a specified number of shares of Cameo International, Inc. common stock at a predetermined price, typically referred to as the exercise price. These stock options are generally granted as part of the director's compensation package and form a significant portion of their overall remuneration. The District of Columbia Stock Option Plan for Nonemployee Directors aims to align the interests of directors with those of the company's shareholders. By tying a portion of their compensation to the company's stock price performance, non-employee directors are incentivized to act in the best interest of the shareholders, actively working towards maximizing shareholder value. The plan is structured in various types, depending on the specific needs and requirements of Cameo International, Inc. and its non-employee directors. These different types may include: 1. Standard Stock Option Plan: This is the most common type of stock option plan, wherein non-employee directors receive stock options with a fixed exercise price and predetermined vesting schedule. The vesting period might be spread over several years, incentivizing directors to remain involved with the company for an extended period. 2. Performance-based Stock Option Plan: This type of plan sets specific performance criteria that need to be met before the stock options can be exercised. The performance indicators could be financial targets, operational milestones, or other predetermined metrics. By linking the exercise of stock options to company performance, this type of plan encourages non-employee directors to actively contribute to the company's growth and profitability. 3. Restricted Stock Unit (RSU) Plan: In this type of plan, non-employee directors are granted RSS instead of stock options. RSS represents a promise to deliver a specified number of company shares at a future date, typically upon vesting. Unlike stock options, RSS do not have an exercise price and are subject to specific vesting conditions. RSU plans are an alternative to traditional stock option plans, which may be offered based on the company's discretion. The District of Columbia Stock Option Plan for Nonemployee Directors of Cameo International, Inc. ensures that non-employee directors have a stake in the company's performance and fosters a sense of ownership and loyalty. These directors are motivated to actively contribute their expertise and experience to drive the company's success, ultimately benefiting both themselves and the shareholders.