The Puerto Rico Stock Option Plan of Star States Corporation is an employee benefit program that allows eligible employees to purchase company stock at a predetermined price. This plan is specifically designed for employees working in Puerto Rico and follows the guidelines and regulations set by Puerto Rican law. Under the Puerto Rico Stock Option Plan, employees are granted the right to purchase a specified number of shares of the company's stock within a given time frame. The predetermined price, also known as the exercise price, is usually set at a discount to the current market price of the stock, making it an attractive option for employees looking to invest in company shares. The purpose of the Puerto Rico Stock Option Plan is to align the interests of employees with those of the company's shareholders. By offering employees the opportunity to become shareholders themselves, the plan serves as a tangible incentive for them to contribute to the company's growth and success. There are various types of Puerto Rico Stock Option Plans that may be offered by Star States Corporation, depending on the specific needs and objectives of the company. These may include: 1. Non-Qualified Stock Options (NO): These stock options do not qualify for special tax treatment and are more flexible in terms of eligibility criteria and exercise price. Nests are often used to reward high-performing employees or executives and may offer greater potential financial gains. 2. Incentive Stock Options (ISO): SOS are qualified stock options that provide certain tax advantages to employees. To be eligible for SOS, employees must meet certain criteria, such as being employed by the company for a specified period of time. SOS typically have specific holding periods and other requirements to enjoy tax benefits upon exercise. 3. Restricted Stock Units (RSS): RSS are another form of equity compensation where employees are granted units that convert into company stock over a vesting period. RSS may have specific performance goals or time-based vesting requirements and are often used to incentivize or retain key employees. 4. Performance Share Units (Plus): Plus are similar to RSS but come with specific performance targets that employees must achieve in order to receive company stock. These performance targets can be based on individual, team, or company-wide metrics. Plus are often seen as a way to motivate employees to drive exceptional performance and achieve strategic goals. It is important to note that the specific details, terms, and conditions of the Puerto Rico Stock Option Plan may vary between companies and are subject to applicable laws and regulations. Eligible employees should carefully review the plan documents and consult with a financial advisor or tax professional to understand the potential benefits and implications of participating in the program.