Wisconsin Stock Option Plan of Star States Corporation is an employee benefit program designed to incentivize and retain talented individuals by offering them the opportunity to purchase company stocks at a discounted price. The plan is specifically tailored for employees of Star States Corporation who are employed in the state of Wisconsin. The primary objective of the Wisconsin Stock Option Plan is to reward employee loyalty and encourage long-term commitment to the company's growth and success. This plan serves as a powerful tool for attracting and retaining highly skilled professionals within the organization. The Wisconsin Stock Option Plan operates by granting eligible employees the right to purchase company stocks at a predetermined price known as the exercise price. The exercise price is generally set below the market value of the stock at the time of grant, making it an attractive benefit for employees. There are several types of Wisconsin Stock Option Plans available to employees of Star States Corporation: 1. Non-Qualified Stock Option (NO): This type of plan allows employees to purchase company stocks at a discounted price. However, the profits gained from the sale of these stocks are subject to standard tax treatment. 2. Incentive Stock Option (ISO): This plan enables employees to purchase company stocks at a discounted price while enjoying certain tax advantages. The profits from the sale of ISO stocks may be subject to long-term capital gains tax rates if certain conditions are met. 3. Restricted Stock Units (RSS): RSS are another form of equity compensation offered by the Wisconsin Stock Option Plan. Instead of granting the right to purchase stocks, RSS provide employees with the promise to receive a certain number of shares at a later date, typically upon meeting specific vesting requirements. Employees participating in the Wisconsin Stock Option Plan must carefully consider their personal financial goals and tax implications before exercising their options or selling the stocks acquired through the plan. Overall, the Wisconsin Stock Option Plan of Star States Corporation plays a significant role in motivating and retaining talented individuals while aligning their interests with the long-term success of the company.