The Oregon Proposed Stock Option and Award Plan of Fresco, Inc. is a comprehensive and innovative plan designed to incentivize and reward employees while aligning their interests with the company's long-term growth and success. This plan aims to provide attractive stock options and various awards to eligible participants, fostering a sense of ownership and encouraging individuals to contribute to the company's overall performance. Under the Oregon Proposed Stock Option and Award Plan, Fresco, Inc. offers different types of stock options and awards to its employees, each tailored to meet specific objectives. These options and awards include: 1. Stock Options: This type of award provides employees the right to buy a specific number of company shares at a predetermined price (the grant or exercise price) within a set time period. It allows employees to share in the company's growth by profiting if the stock price rises above the exercise price. 2. Restricted Stock Units (RSS): RSS grant employees the right to receive company shares at a future date, subject to certain conditions or vesting requirements. The shares are typically granted without any cost to the employee, and they only become fully owned if the employee satisfies the set conditions or stays with the company for a specific period. 3. Performance Awards: These awards are tied to predetermined performance goals or metrics set by Fresco, Inc. Employees must achieve these goals within a specified timeframe to become eligible for the reward. Performance awards can be in the form of cash, stock, or a combination of both. 4. Stock Appreciation Rights (SARS): SARS are similar to stock options, but instead of grants, they provide employees with the opportunity to receive the appreciation or increase in the company's stock price in cash or stock, depending on the plan's structure. SARS are typically exercised by selling the company's stock and receiving the difference in value between the exercise price and the current market price. 5. Employee Stock Purchase Plan (ESPN): Although it may not fall directly under the Oregon Proposed Stock Option and Award Plan, the ESPN allows eligible employees to purchase company stock at a discounted price using a payroll deduction. This plan encourages employees to invest in the company's stock and benefit from its potential growth. Fresco, Inc.'s Oregon Proposed Stock Option and Award Plan aims to attract and retain top talent, motivate employees to achieve growth targets, and promote a harmonious relationship between the company and its workforce. It provides employees with valuable opportunities to participate in the company's success, contribute to its strategic direction, and potentially build long-term wealth through stock ownership.