The Iowa Proposed Stock Option and Award Plan of Fresco, Inc. is a comprehensive compensation program designed to attract and retain talented individuals by offering stock options and various awards. This plan allows employees to share in the company's success and align their interests with those of Fresco, Inc. Under the Iowa Proposed Stock Option and Award Plan, employees are granted the opportunity to purchase shares of Fresco, Inc.'s common stock at a predetermined price, known as the exercise price. These stock options give employees the right to buy shares in the future at the exercise price, providing a potential financial benefit if the stock price rises above the exercise price over time. The stock options granted through this plan are subject to specific vesting schedules, incentivizing employees to remain with the company for a certain period. Vesting typically occurs over a specified number of years, ensuring employees' commitment and dedication. By linking the exercise of stock options to a vesting schedule, the plan encourages a long-term perspective and loyalty among employees. In addition to stock options, the Iowa Proposed Stock Option and Award Plan of Fresco, Inc. may also include other types of awards, such as restricted stock units (RSS) or stock appreciation rights (SARS). RSS grant employees the right to receive shares of Fresco, Inc.'s common stock at a predetermined date without any purchase requirement. This allows employees to directly benefit from the value appreciation of the company's stock. On the other hand, SARS entitle employees to receive the amount of appreciation in the stock's value since the grant date. These rights are settled in cash or shares, depending on the terms of the plan. The availability of RSS and SARS alongside stock options provides employees with multiple forms of equity-based compensation within the Iowa Proposed Stock Option and Award Plan. Fresco, Inc. believes that the Iowa Proposed Stock Option and Award Plan is crucial to retaining top talent, enhancing employee motivation, and aligning individuals' interests with the long-term success of the company. By offering different types of awards and stock options, employees have the opportunity to benefit significantly from Fresco, Inc.'s growth and achievements. Overall, the Iowa Proposed Stock Option and Award Plan of Fresco, Inc. is a valuable tool for attracting and retaining talent, fostering employee loyalty, and ensuring alignment between employees and the company's objectives. It provides a comprehensive and multi-faceted compensation program that emphasizes long-term commitment and mutual success.