Maine Proposed Stock Option and Award Plan of Fresco, Inc. The Maine Proposed Stock Option and Award Plan of Fresco, Inc. is a comprehensive compensation program designed to incentivize and reward employees of the company. This plan outlines various types of stock options and awards that can be granted to eligible participants in order to align their interests with the company's long-term success. 1. Stock Options: One type of award under the Maine Proposed Stock Option and Award Plan is stock options. These options grant employees the right to purchase a specific number of company shares at a predetermined price, usually known as the exercise price. By offering stock options, Fresco, Inc. aims to motivate employees to contribute to the growth and enhancement of the company's value. 2. Restricted Stock Units (RSS): RSS are another significant component of the Maine Proposed Stock Option and Award Plan. RSS grant eligible employees the right to receive company shares in the future, often after a specific vesting period. Unlike stock options, RSS do not require employees to purchase shares. Instead, they are awarded shares directly based on their performance or the meeting of certain predetermined criteria. 3. Performance Stock Units (Plus): The Maine Proposed Stock Option and Award Plan also incorporates Performance Stock Units. These units are awarded to eligible employees based on the achievement of specific performance goals or metrics outlined in the plan. Plus align employee efforts with specific objectives, ensuring that rewards are linked to performance and the overall success of Fresco, Inc. 4. Stock Appreciation Rights (SARS): SARS are another type of award provided under the Maine Proposed Stock Option and Award Plan. These rights grant employees the opportunity to receive cash or company shares equivalent to the appreciation in the company stock's value over a specific period. SARS do not involve the purchase of shares upfront, making them a flexible and attractive option for employees. The Maine Proposed Stock Option and Award Plan of Fresco, Inc. aims to retain and attract top talent by offering various customizable options that meet the diverse needs and preferences of employees. This plan aligns the interests of employees and shareholders, as it encourages employees to contribute to the long-term growth and profitability of the company while providing them with potential financial gains through stock ownership.