The West Virginia Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program implemented by the company to offer Stock Options to its employees in West Virginia. This plan allows the granting of both Incentive Stock Options (SOS) and Nonqualified Stock Options (Nests) to eligible employees. SOS are a type of stock option granted exclusively to employees that provide certain tax advantages. These options are typically subject to specific requirements specified by the Internal Revenue Code, such as holding periods, exercise price limits, and maximum option terms. Employees who are granted SOS have the opportunity to purchase company stock at a predetermined exercise price, typically lower than the current market value. If certain conditions are met, the profits generated from exercising an ISO may be subject to favorable long-term capital gains tax treatment. On the other hand, Nests are stock options granted to employees that do not meet the requirements for SOS or are intentionally structured as nonqualified. Nests do not provide the same tax advantages as SOS. When employees exercise Nests, they may be subject to ordinary income taxes on the difference between the exercise price and fair market value of the stock. Nevertheless, Nests offer flexible terms and are an attractive option for companies and employees looking for more customizable stock option arrangements. Hayes Wheels International, Inc. offers both SOS and Nests under their West Virginia Stock Option Plan. By providing these options to their employees, the company aims to incentivize and reward their workforce while aligning employee interests with the company's long-term success. The establishment of such a plan demonstrates the company's commitment to fostering employee ownership and encouraging dedication to the company's growth. In conclusion, the West Virginia Stock Option Plan of Hayes Wheels International, Inc. encompasses the grant of Incentive Stock Options (SOS) and Nonqualified Stock Options (Nests). The plan aims to provide employees with the opportunity to purchase company stock at favorable terms, and align their interests with the success of the company.