The South Dakota Proposed Stock Option and Award Plan of Fresco, Inc. is a comprehensive employee benefit program designed to reward and incentivize employees through the allocation of company stock options and awards. This plan aims to attract and retain talented individuals and align their interests with the long-term objectives of the organization. Under this proposed plan, employees of Fresco, Inc. will be eligible to receive stock options, which are the right to purchase company shares at a predetermined price, usually known as the exercise price. The grant of stock options allows employees the opportunity to participate in the company's future growth and success. This offers an additional financial incentive for employees to contribute to the company's overall performance and profitability. Awarding stock options through this plan signifies the company's commitment to promoting employee ownership and aligning the interests of its workforce with shareholder value. By tying a portion of an employee's compensation to the company's performance, the plan promotes a sense of ownership and encourages employees to work towards the company's long-term goals. It also provides a valuable tool for attracting top talent in an increasingly competitive job market. The South Dakota Proposed Stock Option and Award Plan of Fresco, Inc. may include different types of stock options, such as non-qualified stock options (SOS) or incentive stock options (SOS). Non-qualified stock options are typically available to all employees and may have more flexible terms and conditions. In contrast, incentive stock options are often granted to key employees and have specific tax advantages. The plan may also provide for the granting of restricted stock units (RSS) or performance stock units (Plus). Restricted stock units are actual shares of company stock that are subject to certain vesting requirements, while performance stock units are awarded based on predefined performance goals or metrics. Both RSS and Plus provide employees with an opportunity to earn company shares based on their performance and dedication to the organization. It is important to note that the South Dakota Proposed Stock Option and Award Plan of Fresco, Inc. will be subject to applicable laws and regulations, including those related to taxation, securities, and employee benefits. The plan will outline eligibility criteria, vesting schedules, exercise periods, and other relevant details to ensure fair and equitable distribution of stock options and awards. In summary, the South Dakota Proposed Stock Option and Award Plan of Fresco, Inc. is a comprehensive program designed to reward and engage employees by granting them stock options and awards. By participating in this plan, employees have the opportunity to benefit financially from the company's growth and success, fostering a sense of ownership and commitment towards the organization's long-term objectives.