Oregon Stock Option Plan is a comprehensive program designed specifically for executive officers, offering a range of stock options to incentivize and reward their contributions to the company's success. Through this plan, executives have the opportunity to receive Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS), allowing them to purchase company stock at a predetermined price, known as the exercise price, within a specified timeframe. Incentive Stock Options, often referred to as SOS, are a type of stock option that comes with certain tax advantages. These options can only be granted to key employees, including executive officers, and must conform to specific requirements set by the Internal Revenue Service (IRS). If certain holding periods and other conditions are met, the executive can enjoy favorable tax treatment upon exercising their SOS. This makes SOS an attractive incentive, as they not only align the executive's interests with the company's long-term performance but also offer potential tax savings. On the other hand, Nonqualified Stock Options, or SOS, provide executives with greater flexibility in comparison to SOS. SOS are not subject to the strict requirements set by the IRS for SOS, allowing for easier administration and customization of option terms. However, unlike SOS, SOS are subject to ordinary income tax rates upon exercise, based on the difference between the fair market value of the stock and the exercise price. Oregon Stock Option Plan recognizes the importance of offering both types of stock options to executive officers, allowing them to choose the option that best suits their financial goals and tax strategies. By providing a range of options, the plan ensures that executives have the opportunity to align their interests with the organization's growth while optimizing their financial gains. In summary, the Oregon Stock Option Plan provides executive officers with the opportunity to receive Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS) as part of their compensation package. SOS offer tax advantages if certain requirements are met, while SOS provide greater flexibility but are subject to ordinary income tax rates. Having different types of stock options under this plan enables executives to customize their compensation strategy and align their interests with the overall success of the company.