The District of Columbia Proposed Stock Option and Award Plan of Fresco, Inc. is a comprehensive compensation plan that aims to reward employees of the company with stock options and various awards. This plan is designed to attract and retain top talent, motivate employees to contribute to the company's success, and align their interests with the overall growth and value creation of the organization. Under this proposed plan, Fresco, Inc. offers different types of stock options and awards to its employees. These options and awards can include: 1. Stock Options: Fresco, Inc. may grant employees the right to purchase company shares at a predetermined price, known as the exercise price. These stock options typically have a vesting period, which means employees must remain with the company for a certain period of time before exercising their options. 2. Restricted Stock Units (RSS): RSS are a type of stock-based compensation where employees are granted a specified number of shares or equivalent value of company stock. However, these shares are subject to certain restrictions and vesting requirements before they can be fully owned by the employee. 3. Performance-Based Awards: The District of Columbia Proposed Stock Option and Award Plan may also include performance-based awards that are tied to specific performance goals or milestones. These awards could be in the form of cash bonuses, additional stock options, or RSS, and are designed to incentivize employees to achieve predetermined objectives. 4. Stock Appreciation Rights (SARS): SARS are similar to stock options, as they provide employees with the opportunity to receive compensation based on the increase in the company's stock price. Employees are granted the right to receive the appreciation in value between the grant price and the market price of a specified number of shares. The District of Columbia Proposed Stock Option and Award Plan of Fresco, Inc. is subject to regulatory approval and compliance with applicable laws and regulations. It is essential for the company to clearly define the terms and conditions of the plan, including the eligibility criteria, exercise periods, vesting schedules, and any limitations or restrictions associated with the stock options and awards. By implementing this comprehensive compensation plan, Fresco, Inc. aims to create a workplace environment that fosters employee growth and development while aligning their interests with the long-term success of the company. The plan provides employees with the opportunity to share in the company's financial achievements, further enhancing their commitment and dedication to the organization.