Lima Arizona Proposal to Approve Material Terms of Stock Appreciation Right Plan The Lima Arizona Proposal aims to seek approval for the material terms of a Stock Appreciation Right (SAR) Plan. The plan is designed to provide employees and executives with an opportunity to benefit from the company's growth in stock value. Under the proposed Lima Arizona SAR Plan, employees would be granted SARS, which represent the right to receive cash payment equal to the appreciation in the company's stock price over a specified period. This serves as an incentive for employees to contribute to the company's success, aligning their interests with shareholders. The SARS would be subject to certain vesting requirements, ensuring that employees remain motivated to contribute to the company's long-term value creation. It encourages employee retention and fosters a sense of ownership and commitment to the company's growth. The primary objective of the Lima Arizona Proposal is to enhance the company's ability to attract, motivate, and retain top talent. The SAR Plan acts as a performance-based compensation tool, directly linking employee compensation to the company's financial performance. This motivates employees to work towards the company's goals and creates a win-win situation for both employees and shareholders. Additionally, the Lima Arizona Proposal includes provisions for proper administration, specifically outlining the eligibility criteria, allocation of SARS, exercise periods, and the mechanisms for determining SAR settlement. These provisions ensure that the SAR Plan is implemented fairly and transparently, fostering trust and accountability among employees. Different Types of Lima Arizona Proposal to Approve Material Terms of Stock Appreciation Right Plan 1. Employee Stock Appreciation Right Plan: This type of proposal is focused on granting SARS exclusively to employees of Lima Arizona. It is designed to reward and retain employees based on their contribution to the company's growth. 2. Executive Stock Appreciation Right Plan: This proposal targets the company's top executives, granting them SARS as part of their compensation package. The aim is to align executive interests with long-term shareholder value and provide them with a higher stake in the company's success. 3. Broad-based Stock Appreciation Right Plan: This type of proposal seeks to include a wider group of employees beyond just executives. It aims to foster a sense of ownership and motivation across all levels of the organization. In conclusion, the Lima Arizona Proposal to approve the material terms of a Stock Appreciation Right Plan is a strategic move to incentivize and reward employees for their contribution to the company's success. By aligning their interests with shareholders, the plan fosters a sense of ownership, commitment, and motivation among employees.