The Colorado Stock Option Plan is a program designed to provide incentive stock options for employees of Pacific Animated Imaging Corp. Incentive stock options are a form of compensation that allows employees to purchase company stock at a discounted price. These options typically have certain requirements and restrictions, which are outlined in the plan. The purpose of the Colorado Stock Option Plan is to attract and retain talented individuals by offering them an opportunity to share in the company's success. By granting employees the ability to purchase stock at a predetermined price, the plan aims to align the interests of employees with those of the company and its shareholders. Under the Colorado Stock Option Plan, there may be different types of options available to employees. Some common variations include non-qualified stock options (Nests) and incentive stock options (SOS). Nests are more flexible and can be granted to any employee, while SOS have additional tax advantages but are subject to specific criteria set by the Internal Revenue Service (IRS). To be eligible for the Incentive Stock Option Plan of Pacific Animated Imaging Corp., employees must meet certain requirements, such as being an employee of the company or its subsidiaries for a specified period of time. The plan will outline the number of options available to each employee, the exercise price (the price at which the shares can be purchased), and any vesting schedule that may apply. The approval of the Colorado Stock Option Plan is an important step for Pacific Animated Imaging Corp. It demonstrates the company's commitment to reward and motivate its employees, while also providing them with a unique opportunity to participate in the company's growth. By implementing this plan, Pacific Animated Imaging Corp. aims to foster a sense of ownership and loyalty among its workforce, ultimately contributing to its long-term success. Keywords: Colorado Stock Option Plan, Pacific Animated Imaging Corp., Incentive Stock Option Plan, incentive stock options, non-qualified stock options, SOS, Nests, employee compensation, employee incentives, employee ownership, employee loyalty, company success, share purchase.