The Maryland Stock Option Plan of Star States Corporation is a comprehensive and legally binding program designed to provide employees of the corporation with the opportunity to purchase company stocks at a predetermined price. This employee benefit program is an effective tool for incentivizing and recognizing employee contributions while aligning their interests with the long-term success of the corporation. Under the Maryland Stock Option Plan, employees are granted the right to purchase a specific number of company stocks, known as stock options, at a predetermined price within a specified time frame. This price is known as the exercise price or strike price and is usually set at the fair market value of the stocks on the grant date. The grant date marks the date when the stock options are awarded to eligible employees. Star States Corporation offers various types of stock options to its employees under the Maryland Stock Option Plan. These options include: 1. Non-Qualified Stock Options (SOS): These stock options are the most common type and are available to all employees. SOS are subject to standard income tax treatment, where the difference between the exercise price and the fair market value of the stock at the time of exercise is considered taxable income. 2. Incentive Stock Options (SOS): SOS are granted to key employees and are eligible for special tax treatment. These options offer potential tax advantages as the employees are not required to pay taxes on the difference between the exercise price and the fair market value of the stock until they sell the shares. 3. Performance Stock Options: These stock options are granted based on specific performance criteria set by the corporation. Employees are eligible to exercise these options only if the predetermined performance goals are met. Performance stock options are aimed at rewarding exceptional performance and driving specific business objectives. The Maryland Stock Option Plan of Star States Corporation not only serves as a way to reward and retain employees, but it also provides them with a sense of ownership and a direct stake in the corporation's success. Employees who exercise their stock options can become shareholders and may benefit from any increase in the company's stock price over time. It is important to note that the specifics of the Maryland Stock Option Plan may vary based on individual circumstances, company policies, and legal requirements. Employees should refer to the official plan documents and seek professional guidance to understand the details and implications of their stock options under the Star States Corporation's plan.