The Indiana Stock Option Plan is a comprehensive program that offers various types of stock options and stock appreciation rights to eligible participants. This plan is designed to incentivize employees and executives by providing them with the opportunity to acquire company stocks and benefit from their value appreciation over time. The plan includes three main types of stock options and rights: 1. Incentive Stock Options (SOS): Indiana Stock Option Plan allows for the grant of SOS, which are specially structured stock options that offer certain tax advantages to the recipients. SOS typically have strict eligibility requirements, including being exclusively available to employees and offering specific exercise prices based on fair market value at the time of grant. 2. Nonqualified Stock Options (SOS): The plan also provides for the grant of SOS, which are stock options that do not meet the requirements for SOS. Unlike SOS, SOS do not have the same tax advantages but still offer valuable benefits to employees. SOS have more flexibility in terms of eligibility criteria and exercise price determination. 3. Stock Appreciation Rights (SARS): In addition to stock options, the Indiana Stock Option Plan incorporates Stock Appreciation Rights. SARS is a form of performance-based compensation that allows participants to receive cash or stock equivalent to the appreciation in the company's stock price over a specified period. SARS do not involve the purchase of stocks but provide an opportunity to share in the company's growth. By offering a variety of stock option types, the Indiana Stock Option Plan accommodates different employee needs and objectives. It enables companies to attract and retain top talent, motivate employees by aligning their interests with the company's success, and foster a sense of ownership and loyalty among participants. Overall, the Indiana Stock Option Plan is a well-rounded program that incorporates Incentive Stock Options, Nonqualified Stock Options, and Stock Appreciation Rights, allowing eligible individuals to participate in the company's growth and potentially reap financial rewards.