The Missouri Stock Option Plan is a program designed to approve the Incentive Stock Option Plan (ISP) of Pacific Animated Imaging Corp. This plan offers incentives to employees of the company by providing them with stock options as a part of their compensation package. The stock options give employees the right to purchase company stock at a predetermined price, often at a discount, within a specified timeframe. The purpose of the Missouri Stock Option Plan is to promote employee loyalty, retention, and motivation, as well as to align the interests of employees with the success of Pacific Animated Imaging Corp. By granting stock options, the company aims to create a sense of ownership among employees, encouraging them to contribute to the company's growth and profitability. The approval of the ISP by the Missouri Stock Option Plan opens up various types of stock options available to employees. These options may include: 1. Non-Qualified Stock Options: These stock options do not meet the requirements for favorable tax treatment under the Internal Revenue Code. They allow employees to purchase company stock at a predetermined price, usually with no tax consequences of exercise. 2. Incentive Stock Options: These stock options are reserved for specific employees and meet the criteria outlined in the Internal Revenue Code. They may offer tax advantages for employees, such as the potential for long-term capital gains treatment upon the sale of the stock. 3. Restricted Stock Units: This type of stock option is similar to traditional stock options but comes with certain restrictions or conditions. Employees receive units that convert into company stock once the conditions are met. 4. Stock Appreciation Rights: Instead of granting actual stock options, this type of plan provides employees with the opportunity to receive cash or company stock equal to the appreciation in the stock value over a specific period. The Missouri Stock Option Plan is an essential tool for attracting and retaining talented employees, as it provides them with a chance to participate in the company's ownership and potential financial success. By offering various types of stock options, Pacific Animated Imaging Corp. can tailor the plan to suit the needs and objectives of different employees.