Alaska Stock Option Plan (ATOP) is a comprehensive and flexible compensation plan designed to incentivize and reward employees of Pacific Animated Imaging Corp. The purpose of this plan is to grant stock options to eligible employees, allowing them the opportunity to purchase company stocks at a predetermined price, usually below the market value. The Incentive Stock Option (ISO) is one of the types of stock option plans under the ATOP framework. SOS are specifically designed to provide tax advantages to the employees who exercise their options. By granting SOS, Pacific Animated Imaging Corp. aims to attract and retain talented individuals by aligning their financial interests with the long-term success and growth of the company. Under the ATOP, there are several key features and benefits for employees. Firstly, ATOP provides employees the right to purchase company stock within a specific time frame at a predetermined price, known as the exercise price. This incentivizes employees to contribute to the growth and profitability of the company, as the value of their stock options will increase with company performance. Secondly, ATOP offers employees the chance to potentially benefit from the appreciation of the company's stock value over time. In the case of SOS, if the stock value increases between the grant date and the exercise date, employees can enjoy a favorable tax treatment on the gains. Another notable aspect of ATOP is that it allows flexibility in terms of vesting schedules. Vesting refers to the period of time an employee must wait before being able to exercise their stock options. Pacific Animated Imaging Corp. can structure vesting schedules in a way that aligns with their specific business needs and employee retention goals. It is important to note that ATOP complies with the regulatory requirements of the state of Alaska and other relevant governing bodies. By implementing a clear and transparent stock option plan, Pacific Animated Imaging Corp. aims to promote fairness and equal opportunities among its employees. In summary, Alaska Stock Option Plan (ATOP) is an effective tool utilized by Pacific Animated Imaging Corp. to reward and incentivize employees. The Incentive Stock Option (ISO) is one of the types of stock option plans available under ATOP, offering tax advantages to employees. ATOP provides employees with the opportunity to purchase company stock, aligning their interests with the long-term success of the company. The plan also incorporates flexibility in terms of vesting schedules to cater to Pacific Animated Imaging Corp.'s specific needs. By approving the Incentive Stock Option Plan, the company aims to enhance employee motivation, retention, and overall company performance.