The Idaho Stock Option Plan is a comprehensive program that allows eligible employees or members of a company to receive stock options as a form of compensation. This plan specifically includes the grant of Incentive Stock Options (SOS), Nonqualified Stock Options (SOS), and Stock Appreciation Rights (SARS). Incentive Stock Options, as offered by the Idaho Stock Option Plan, are a type of stock option that provides certain tax advantages for employees. By granting SOS, companies can offer their employees the opportunity to purchase company stock at a specific price (known as the exercise price) within a specified time frame. SOS are subject to specific requirements set by the Internal Revenue Code and are typically granted with the intention of aligning employee incentives with the long-term success of the company. Nonqualified Stock Options, another type of stock option available through the Idaho Stock Option Plan, do not come with the same tax advantages as SOS. SOS are more flexible in their eligibility requirements and can be granted to both employees and non-employee directors or consultants. Unlike SOS, SOS do not have to comply with certain restrictions set by the Internal Revenue Code and can be granted at a discount or higher exercise price. Stock Appreciation Rights, also provided under the Idaho Stock Option Plan, are a form of equity-based compensation that grants employees the right to receive the appreciation in the company's stock value over a specified period. With SARS, employees do not purchase company stock directly but can receive a cash payment or company stock equivalent to the amount of the stock's appreciation. By incorporating these three types of stock options — Incentive Stock Options, Nonqualified Stock Options, and Stock Appreciation Rights — the Idaho Stock Option Plan provides a comprehensive structure for companies to offer equity-based compensation to their eligible employees and contributors. It allows businesses to align financial incentives with the overall growth and success of the company while providing employees with the opportunity to share in that growth.