The Kings New York Nonqualified and Incentive Stock Option Plan is a comprehensive employee benefit program offered by Intercargo Corp. Based in New York, this plan aims to incentivize and reward eligible employees by providing them with stock options that can be exercised within specific terms and conditions. Under the Kings New York Nonqualified and Incentive Stock Option Plan, there are two types of stock options available: nonqualified stock options (Nests) and incentive stock options (SOS). Both options allow eligible employees to purchase company stock at a predetermined price, known as the exercise price, within a set period. However, there are certain distinctions between the two types of options. 1. Nonqualified Stock Options (Nests): Nests are more commonly offered under the Kings New York Nonqualified and Incentive Stock Option Plan. Employees who are granted Nests have the flexibility to exercise their options at any time during the stipulated exercise period. These options are subject to various regulations and tax implications, including income tax and potential withholding requirements. 2. Incentive Stock Options (SOS): SOS are considered a more tax-advantageous option under the Kings New York Nonqualified and Incentive Stock Option Plan. These options are available exclusively to employees and must meet specific criteria defined by the Internal Revenue Service (IRS). SOS offer potential tax benefits upon the exercise and sale of the acquired stock, but they also come with stricter rules and limitations compared to Nests. Overall, the Kings New York Nonqualified and Incentive Stock Option Plan of Intercargo Corp. provides eligible employees with the opportunity to participate in the ownership and success of the company. By offering stock options, Intercargo aims to align the interests of its employees with those of the shareholders while providing additional financial incentives. To take advantage of these options, employees must carefully understand and evaluate the terms and conditions outlined by the plan, considering their individual financial goals and tax implications.