The Kansas Stock Option Plan is a program implemented by Pacific Animated Imaging Corp. to approve its Incentive Stock Option Plan. This plan aims to incentivize and reward employees of the company by offering them the opportunity to purchase stock options at a favorable price. Under the Kansas Stock Option Plan, employees are given the right to purchase a specific number of company stocks at a predetermined price, known as the exercise price. These stock options typically have a vesting period, during which employees must remain with the company to be eligible for exercising their options. By granting stock options, Pacific Animated Imaging Corp. aims to align the interests of its employees with the success of the company. As the stock value increases over time, employees have the potential to benefit financially by exercising their options and selling the shares at a higher price. The Incentive Stock Option Plan of Pacific Animated Imaging Corp., approved under the Kansas Stock Option Plan, offers additional benefits to employees. Incentive stock options (SOS) can provide preferential tax treatment, as the gains from exercising these options may be subject to lower capital gains tax rates if certain conditions are met. It is important to note that the Kansas Stock Option Plan may have different types or variations. Some potential types of stock option plans commonly found in Kansas include: 1. Non-Qualified Stock Option Plan: This type of plan offers stock options that do not meet the requirements for preferential tax treatment under the Internal Revenue Code. The gains from exercising non-qualified options are usually considered ordinary income and subject to higher tax rates. 2. Restricted Stock Unit Plan (RSU): In addition to traditional stock options, Pacific Animated Imaging Corp. may also offer a Restricted Stock Unit Plan. RSS represents a promise to deliver company shares at a future date, contingent upon certain conditions such as the completion of a specific period of employment. 3. Employee Stock Purchase Plan (ESPN): An ESPN is a program that allows employees to purchase company stock at a discounted price, often through payroll deductions. This plan encourages broad employee participation and can provide long-term investment opportunities. In summary, the Kansas Stock Option Plan of Pacific Animated Imaging Corp. aims to reward and motivate employees by granting them the ability to purchase company stocks at a favorable price. This plan includes an Incentive Stock Option Plan and may offer various types or variations of stock options, such as non-qualified options, RSS, and ESPN. These programs align the interests of employees with the company's success and provide potential financial benefits.