The New Mexico Stock Option and Stock Award Plan of American Stores Company is a comprehensive employee benefit program designed to incentivize and reward employees of the company. This plan provides employees with the opportunity to own a stake in the company and share in its success. The stock option plan allows eligible employees to purchase company stock at a predetermined price, known as the exercise price. Employees have the option to buy a specific number of shares within a specified time frame, typically referred to as the exercise period. By acquiring company stock through stock options, employees are given the chance to benefit from any increase in the stock price over time. Additionally, the New Mexico Stock Award Plan grants eligible employees a certain number of shares of company stock as a reward for their dedication, efforts, and contributions to the success of American Stores Company. These stock awards can serve as a valuable long-term incentive, aligning the interests of employees with those of the company's shareholders. The plan offers various types of stock options and stock awards to cater to different employee needs and circumstances. Some notable types may include: 1. Non-Qualified Stock Option (NO): This type of option is typically offered to all employees and provides flexibility in terms of exercise price and taxation. Nests do not qualify for preferential tax treatments and are often used as a way to supplement an employee's compensation package. 2. Incentive Stock Option (ISO): SOS are usually offered to key employees and provide preferential tax treatment. If certain holding and exercise requirements are met, the gains from SOS can be taxed at a lower rate than regular income. 3. Restricted Stock Units (RSS): RSS are stock awards that grant employees the right to receive company stock at a future date, subject to certain vesting requirements. These awards can be tied to an employee's tenure or performance metrics, ensuring continued commitment and dedication. 4. Performance Stock Units (Plus): Plus are stock awards linked to predetermined performance goals and metrics. Employees are granted a specified number of shares based on their achievement of these goals over a defined period. Plus provide a strong incentive for employees to strive for excellent performance and contribute to the company's growth. These are just a few examples of the various types of stock options and stock awards available under the New Mexico Stock Option and Stock Award Plan of American Stores Company. The plan is designed to attract, retain, and motivate employees by allowing them to directly participate in the company's success while fostering a sense of ownership and alignment with shareholders.