The Maricopa Arizona Proposed Stock Option and Award Plan of Fresco, Inc. is a comprehensive employee compensation program designed to incentivize and reward the company's workforce. This plan offers employees the opportunity to purchase company stock options at a predetermined price, enabling them to benefit from any potential increase in the stock's value over time. The Proposed Stock Option and Award Plan includes various types of stock options and awards to cater to different employee needs and objectives. These options contain specific terms and conditions, allowing employees to exercise their rights gradually or all at once. The following are key types of stock options and awards featured in the plan: 1. Incentive Stock Options (SOS): These options provide employees with the right to purchase company stock at a pre-established price known as the exercise price. Qualifying SOS come with favorable tax treatment, as they may be taxed at a lower capital gains rate upon the sale of the stock. 2. Non-Qualified Stock Options (Nests): Unlike SOS, Nests do not offer special tax benefits. Employees who exercise non-qualified stock options may be subject to ordinary income tax rates on the difference between the exercise price and the fair market value of the stock at the time of exercise. 3. Restricted Stock Units (RSS): RSS grant employees the right to receive company stock in the future once specific vesting conditions are met. Typically, RSS have a vesting period tied to an employee's longevity with the company or the achievement of predetermined performance goals. 4. Performance Shares: Performance shares are awarded based on the achievement of certain performance metrics outlined in the plan. These metrics can include individual, team, or company-wide goals. If the targets are met, employees receive company stock as a reward. The Maricopa Arizona Proposed Stock Option and Award Plan of Fresco, Inc. aims to align employee interests with the company's success, fostering a sense of ownership and motivation. By offering a variety of stock options and awards, employees have the flexibility to choose the most suitable compensation structure that fits their financial goals and risk tolerance. Please note that the specific details and terms of the Maricopa Arizona Proposed Stock Option and Award Plan may be subject to change based on company decisions, market conditions, and applicable regulatory requirements. It is advisable for employees and stakeholders to review the official plan documentation and consult with financial professionals for accurate and up-to-date information.