The District of Columbia Stock Option and Award Plan of Fresco, Inc. is a comprehensive program designed to provide incentives and rewards for employees of the company. This plan offers various options and awards to eligible participants in order to motivate and retain talented individuals within the organization. Under this stock option and award plan, employees are granted the opportunity to acquire shares of Fresco, Inc. stock at a predetermined price and within a specified time frame. This enables them to take part in the company's growth and success, as the value of the stock increases over time. The different types of stock options available under the District of Columbia Stock Option and Award Plan include non-qualified stock options (Nests) and incentive stock options (SOS). Nests are typically granted to employees at a specific exercise price, and the difference between the exercise price and the fair market value of the stock at the time of exercise is taxed as ordinary income. On the other hand, SOS have certain tax advantages but are subject to specific statutory requirements. In addition to stock options, the plan also provides for other types of awards such as restricted stock units (RSS) and performance-based stock units (Plus). RSS represents a promise to deliver shares of stock to the employee at a future date, subject to certain vesting conditions. Plus, however, are contingent on the achievement of performance goals set by the company, ensuring that awards are only granted if specific targets are met. Participants in the District of Columbia Stock Option and Award Plan have the opportunity to accumulate significant wealth over time as the value of the company's stock appreciates. This serves as a powerful motivator for employees to contribute to the growth and profitability of Fresco, Inc. Overall, the District of Columbia Stock Option and Award Plan of Fresco, Inc. is a robust program that offers a range of incentives and rewards to attract, retain, and motivate talented employees. Through different types of stock options and awards, participants are given the opportunity to benefit from the success of the company while fostering a culture of excellence and dedication within the organization.