The Collin Texas Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program that allows the company to grant both Incentive Stock Options (SOS) and Nonqualified Stock Options (Nests) to its employees. This plan serves as a valuable tool to attract and retain talented individuals, as well as provide them with a financial incentive tied to the company's performance. Under the Collin Texas Stock Option Plan, employees have the opportunity to receive SOS and Nests as a form of additional compensation. SOS are particularly beneficial as they qualify for special tax treatment, potentially allowing employees to receive preferential tax treatment upon exercising their options. On the other hand, Nests do not qualify for preferential tax treatment but still provide employees with the opportunity to purchase company stocks at a predetermined price. The Collin Texas Stock Option Plan offers flexibility by granting various types of stock options. One type is the Standard Stock Option, which allows employees to purchase a specific number of company shares at a predetermined price, known as the exercise price. This option grants employees the right to exercise their options after a predefined vesting period, typically subject to certain conditions such as continuous employment. Another type of stock option under the plan is the Performance-Contingent Stock Option. This option sets specific performance goals that must be achieved by the company or the employee for the options to become exercisable. By linking the options to performance, this type of stock option plan further aligns the interests of employees with the success of the company. The Collin Texas Stock Option Plan also includes a Stock Appreciation Rights (SARS) component. SARS provide employees with the opportunity to receive the appreciation in the value of company stock without requiring an actual purchase. When exercised, the employee receives the difference between the market price of the stock and the exercise price in cash or in company stock. Overall, the Collin Texas Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive and flexible program that offers employees the opportunity to benefit from the growth and success of the company. By providing both SOS and Nests, as well as various types of stock options including Standard Stock Options and Performance-Contingent Stock Options, the company ensures that its employees are rewarded for their contributions while aligning their interests with the company's long-term success.