Long Term Incentive Agreement

Performance Unit Plan Awards depend on the achievement of the company`s performance goals, which are usually measured over a period of three to five years. PUPAs are contractual agreements with predefined performance targets or targets, and dollar bonuses set are based on the percentage of achievement of the stated targets. Bonuses are paid in cash or in shares of the company without the manager investing. The PUPA loses an inability to reach the minimum percentage under the plan. Performance targets or targets are generally based on an increase in earnings per common share, which is average over a period of years, in accordance with the plan. Other objectives are return on equity, increased market share, competitive comparisons of group performance and internal performance of the division, subsidiary and unit. The Restricted Stock Awards are direct awards of shares in cash or nominal fees to management, with specific restrictions for sale, transfer and seizure. Restricted shares are intended to induce performance, given that the employee is a shareholder of the company. In the event of unshakability, obtaining the limited shares is considered compensatory income, i.e.

the difference between the market value at the time of the end of the restriction and a subsequent change in the value of the shares treated as a capital gain or loss. During the prohibition period, the holder is entitled to dividends and can vote on insolvent shares. Like stock options, all non-infested restricted shares expire at the end of the year. For tax purposes, restricted shares granted to achieve performance are generally not subject to federal income tax until the restriction is extinguished or the share is transferable. Long Term Cash Incentive Pay is a defined benefit price that pays compensation based on a three- to five-year benefit period and is calculated as a multiple of the base salary. Performance can be measured by a sector group of companies and the expected long-term growth of the company, to name a few. Rewards are based on a multiple of the base salary. The granting of stock options is the most frequently used form of incentives for long-term performance. The grants are intended to encourage managers to get involved in the future of the company by possibly holding shares. The majority of listed companies issue fixed-price stock options (underlying options determined at the time of grant).

Start-ups and other private companies often engage in the issuance of „in the money“ stock options, options that have an exercise price below fair market value. . . .