The Orange California Proposed Stock Option and Award Plan of Fresco, Inc. is a comprehensive compensation program designed by the company to attract and retain talented employees while providing them with an opportunity to have a stake in the organization's success. This plan offers various types of stock options and awards to eligible participants, ensuring a robust and versatile framework for rewarding performance and promoting long-term loyalty. One important type of stock option available under the Orange California Proposed Stock Option and Award Plan is the Non-Qualified Stock Option (NO). This type of option grants eligible employees the right to purchase a specific number of company shares at a predetermined price within a defined timeframe. Nests offer flexibility and potential financial gain for employees as the company's stock value increases. Additionally, the plan introduces Restricted Stock Units (RSS) as another valuable award offering. RSS represents a promise to deliver company shares to eligible participants at a future date, typically contingent upon specific performance goals or the passage of a predetermined vesting period. To further enhance employee engagement, the Orange California Proposed Stock Option and Award Plan includes Performance-Based Awards. These awards are granted based on predetermined performance targets, such as revenue goals or share price appreciation, which incentivize employees to contribute their best efforts towards achieving organizational objectives. The plan also recognizes the importance of retaining key employees in the long run. As a result, it provides for Stock Appreciation Rights (SARS), which allow eligible participants to receive cash payments equal to the appreciation in the company's stock value over a specified period without requiring them to purchase the stock outright. Participants of the Orange California Proposed Stock Option and Award Plan will benefit from various tax advantages that comply with relevant regulations, ensuring a fair and well-structured compensation program. Overall, the Orange California Proposed Stock Option and Award Plan of Fresco, Inc. is a versatile compensation program that encompasses different types of options and awards, including Non-Qualified Stock Options, Restricted Stock Units, Performance-Based Awards, and Stock Appreciation Rights. By utilizing this plan, Fresco, Inc. aims to attract, motivate, and retain talented individuals who can contribute to the organization's long-term growth and success.