Los Angeles California Nonemployee Director Stock Option Plan of Inner Laboratories, Inc. is a comprehensive and well-structured compensation program offered to nonemployee directors of Inner Laboratories, Inc. who are based in Los Angeles, California. This plan aims to attract and retain talented individuals who can provide valuable guidance and expertise to the company's board of directors. The Nonemployee Director Stock Option Plan allows nonemployee directors to receive stock options as part of their compensation. These stock options are an attractive incentive as they offer the right to purchase Inner Laboratories, Inc.'s common stock at a predetermined price, also known as the exercise price, for a specific period of time. Under this plan, nonemployee directors are granted stock options based on their service and contributions to the company. The number of stock options awarded may vary depending on factors such as director expertise, tenure, and committee participation. These stock options serve as a tool to align the interests of nonemployee directors with those of Inner Laboratories, Inc.'s shareholders, thus motivating directors to drive the long-term success of the company. The Los Angeles California Nonemployee Director Stock Option Plan provides flexibility by offering different types of stock options to suit individual director preferences and requirements. Some types of stock options that may be included in this plan are: 1. Incentive Stock Options (SOS): These stock options provide potential tax advantages to directors. In SOS, the exercise price is set at or above the fair market value of Inner Laboratories, Inc.'s common stock, and the options may qualify for preferential tax treatment when exercised under certain conditions. 2. Non-Qualified Stock Options (Nests): Nests are another type of stock option that does not qualify for preferential tax treatment. The exercise price for Nests can be set at any price, and the option holders may exercise them at their convenience. The Los Angeles California Nonemployee Director Stock Option Plan demonstrates Inner Laboratories, Inc.'s commitment to providing competitive compensation to its nonemployee directors. By offering stock options, the company allows directors to participate in the potential financial success and growth of the organization. This plan serves as a valuable tool for attracting, retaining, and motivating top talent to serve on the board of directors and contribute to the overall success of Inner Laboratories, Inc.