Nebraska Stock Option Plan for Federal Savings Association is a program offered to employees of Federal Savings Associations (FSA's) in the state of Nebraska. This plan provides employees with the opportunity to purchase company stock at a predetermined price, known as the strike price, within a set time frame. The Nebraska Stock Option Plan for Federal Savings Association is designed to incentivize employees and align their interests with the performance of the FSA. This encourages employees to contribute to the overall success of the association and boosts their motivation and dedication towards achieving organizational goals. By participating in this stock option plan, employees have the potential to benefit from the increase in the value of the company's stock over time. If the stock price rises above the strike price, employees can exercise their options and purchase the stock at the lower strike price, enabling them to realize a profit when they sell the shares. There are different types of Nebraska Stock Option Plans for Federal Savings Associations, including: 1. Nonqualified Stock Options (SOS): These options do not comply with specific tax regulations and do not offer special tax benefits to the employees. SOS are often granted to employees at all levels and provide them with flexibility in terms of exercise and sale. 2. Incentive Stock Options (SOS): SOS are designed to provide tax advantages to employees. If the specific requirements are met, employees can benefit from preferential tax treatment when exercising SOS. 3. Restricted Stock Units (RSS): RSS are a type of stock option plan where employees are granted units instead of actual stock. These units convert into shares of stock over time, based on a predetermined vesting schedule or performance criteria. 4. Performance Stock Options: This type of stock option plan is tied to the performance of the FSA and specific performance metrics. Employees can only exercise their options if the predetermined performance criteria are met. Employees participating in the Nebraska Stock Option Plan for Federal Savings Association must carefully consider their financial goals, tax implications, and the potential risks associated with investing in company stock. It is advisable for employees to consult with a financial advisor or tax professional to make informed decisions regarding their stock options.