The Bexar Texas Stock Option and Stock Award Plan of American Stores Company is a comprehensive program designed to provide employees with the opportunity to acquire and own company stock, fostering a sense of ownership and encouraging their commitment to the organization's success. This plan offers various types of stock options and stock awards, ensuring flexibility and catering to different employee needs. The first type of stock option available under the Bexar Texas Stock Option and Stock Award Plan is the Non-Qualified Stock Option. This option grants employees the right to purchase company stock at a predetermined price, known as the exercise price, over a specified period. These options are not eligible for preferential tax treatment. Another option is the Incentive Stock Option (ISO), a type of stock option that offers tax advantages to employees. To qualify for SOS, participants must meet specific eligibility criteria and adhere to certain holding periods. These options provide employees with the opportunity to purchase company stock at a discounted price, potentially yielding considerable financial gains. The Stock Award component of the plan awards employees with shares of company stock outright, without the need for them to make any monetary contributions. These awards are granted based on predetermined performance metrics, and the number of shares awarded typically reflects an employee's level of achievement and contribution to the company's growth and success. Furthermore, the Bexar Texas Stock Option and Stock Award Plan may also include restricted stock units (RSS) as another type of stock award. RSS are granted to employees as a promise to deliver company stock at a specified future date, subject to certain conditions. RSS provides a form of ownership to employees, aligning their interests with the company's long-term performance. Participation in the Bexar Texas Stock Option and Stock Award Plan is subject to the terms and conditions outlined by American Stores Company. Eligible employees, such as executives or high-performing individuals, may have access to additional types of stock options or awards tailored to their roles and responsibilities. Overall, the Bexar Texas Stock Option and Stock Award Plan of American Stores Company serves as a vital tool in attracting, motivating, and retaining talented individuals by providing them with a tangible stake in the company's success.