The Hillsborough Florida Stock Option Plan of Sunrise Assisted Living, Inc. is a comprehensive program designed to incentivize and reward employees, consultants, and advisers of the company. This stock option plan aims to provide individuals with the opportunity to acquire shares of stock in Sunrise Assisted Living, Inc., thus enabling them to share in the success and growth of the company. Under this plan, there are two main types of stock options that can be granted: Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS). Both types of options have distinct qualities and may be granted to different individuals based on their roles and status within the company. Incentive Stock Options (SOS) are typically granted to employees and offer favorable tax treatment. These options entitle the holder to purchase a specified number of shares at a predetermined exercise price within a specified time frame. SOS are subject to certain conditions and limitations outlined by the Internal Revenue Code, and they must comply with the requirements of Section 422 of the Code. Nonqualified Stock Options (SOS), on the other hand, are more flexible and can be granted to employees, consultants, and advisers alike. SOS do not come with the same tax advantages as SOS, but they offer greater flexibility in terms of exercise price and vesting schedule. SOS are not subject to the same stringent requirements as SOS but are often subject to corporate policies and guidelines. The Hillsborough Florida Stock Option Plan of Sunrise Assisted Living, Inc. aims to attract and retain talented individuals by providing them with the opportunity to participate in the company's growth and success. Through the grant of Incentive Stock Options and Nonqualified Stock Options, employees, consultants, and advisers have the potential to benefit from the increase in the company's stock value. These stock options serve as valuable tools for aligning the interests of individuals and promoting their long-term commitment to Sunrise Assisted Living, Inc.