Pennsylvania Stock Option Plan (POP) of Hayes Wheels International, Inc. is a program designed to grant employees of the company the opportunity to purchase company stock at a discounted price. POP offers two types of stock options: Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS). Incentive Stock Options (SOS) are stock options that provide certain tax advantages to employees. These options are generally offered to key employees and have strict requirements for eligibility and exercise. SOS are subject to special tax treatment, allowing employees to potentially qualify for favorable long-term capital gains tax rates upon the sale of the stock. Nonqualified Stock Options (SOS), also known as nonstatutory stock options, are stock options that do not qualify for the same tax benefits as SOS. These options are typically offered to a broader range of employees and have more flexibility in terms of eligibility and exercise. SOS are subject to regular income tax rates upon exercise, and any subsequent gain upon the sale of the stock is also taxed as ordinary income. The Pennsylvania Stock Option Plan (POP) of Hayes Wheels International, Inc. aims to provide employees with a means to share in the company's success by allowing them to purchase company stock at a favorable price. The plan is designed to incentivize and align the interests of employees with the long-term growth and performance of the company. By offering both Incentive Stock Options and Nonqualified Stock Options, Hayes Wheels International, Inc. provides employees with options that suit their specific circumstances and goals.