The Arizona Stock Option and Incentive Plan of Church Companies, Inc. is a comprehensive employee compensation program designed to reward and incentivize key personnel. This plan, specific to the state of Arizona, is tailored to meet the needs of the company and its employees within the region. Church Companies, Inc., a leading industrial technology company, offers various types of stock option and incentive plans under this program. These plans include: 1. Stock Option Plan: The Stock Option Plan allows eligible employees to purchase company stock at a predetermined price within a specified period. This enables employees to benefit from the appreciation of company shares over time, aligning their interests with shareholders. 2. Performance-Based Incentive Plan: The Performance-Based Incentive Plan focuses on rewarding employees based on their individual and collective performance against predefined goals and objectives. This plan encourages employees to excel in their roles and contribute to the overall success of the company. 3. Equity Participation Plan: The Equity Participation Plan is designed to offer employees the opportunity to acquire company shares, either through grants or purchase options. By becoming shareholders, employees have a vested interest in the company's performance and are motivated to drive growth and profitability. 4. Restricted Stock Units (RSS) Plan: The RSS Plan grants eligible employees a certain number of stock units, which convert into actual shares after a predetermined vesting period. This plan helps retain and incentivize key talent by tying their compensation to long-term results and company performance. 5. Cash Bonus Plan: In addition to stock options and equity-based incentives, Church Companies, Inc. may also include a Cash Bonus Plan within the Arizona Stock Option and Incentive Plan. This plan rewards employees with monetary bonuses based on meeting predetermined performance targets or achieving exceptional results. Church Companies, Inc. acknowledges the significance of attracting, retaining, and motivating talented employees in the highly competitive Arizona market. The Arizona Stock Option and Incentive Plan serves as an instrumental tool in accomplishing these objectives, providing employees with an opportunity to participate in the company's success and share in its future growth.