The New Hampshire Stock Option and Stock Award Plan of American Stores Company is a comprehensive employee compensation program designed to incentivize and reward employees' long-term commitment and performance. It offers employees the opportunity to acquire company stocks, providing them with a potential stake in the company's success. The plan comprises various types of stock-based awards, each serving different purposes and catering to different employee needs. These awards are granted at the discretion of the company and are subject to specific terms and conditions. 1. Stock Options: American Stores Company offers employees the opportunity to purchase company stocks at a predetermined price, known as the exercise or strike price. These options are typically granted for a specific number of shares and have an expiration date, after which they become void. By acquiring stock options, employees can share in the company's growth and profit by exercising their options and selling shares at a potentially higher market price. 2. Restricted Stock Units (RSS): RSS grant employees the right to receive a specific number of company shares at a future date, subject to vesting requirements. Unlike stock options, RSS do not require the employee to make any upfront investment. Instead, they receive the shares as a form of bonus or incentive. RSS typically vest over a defined period, encouraging employees to stay with the company and driving their long-term commitment. 3. Performance Shares: Performance shares are awarded based on the achievement of specific performance goals, such as financial targets or operational milestones. These shares align employee interests with company performance, motivating individuals to contribute to the company's success. Performance shares are often subject to a vesting schedule, ensuring that employees remain committed to the company's long-term objectives. 4. Stock Purchase Plans: American Stores Company may also offer a stock purchase plan, allowing employees to purchase company stocks directly from the company at a discounted price. By participating in the plan, employees can accumulate company shares over time, enhancing their sense of ownership and fostering a stronger connection with the company's performance. The New Hampshire Stock Option and Stock Award Plan of American Stores Company is designed to attract and retain talented employees by providing them with an opportunity to share in the company's success. These stock-based awards serve as powerful incentives, aligning employee goals with long-term company objectives and driving performance and dedication. It is essential for employees to review the plan's terms and conditions to understand the specific details and requirements associated with each type of award.