Nebraska Stock Option Plan is a program designed to approve the Incentive Stock Option Plan of Pacific Animated Imaging Corp., a leading company in the animation and imaging industry. This plan is an excellent way for the company to motivate and retain key employees by providing them with the opportunity to own a stake in the business. Under the Nebraska Stock Option Plan, Pacific Animated Imaging Corp. grants its employees the right to purchase a specified number of company stocks at a predetermined price within a certain timeframe. By offering these stock options, the company aims to align the interests of its employees with the long-term success and growth of the organization. The Incentive Stock Option Plan focuses on providing additional benefits and incentives to employees who meet certain performance criteria or contribute significantly to the company's objectives. This plan is an effective tool for attracting top talent and ensuring the company attracts and retains individuals who are vital to its continued success. The Nebraska Stock Option Plan may include various types of stock options such as: 1. Non-Qualified Stock Options (Nests): These options do not meet the requirements of the Internal Revenue Code (IRC) to be considered as incentive stock options. Nests are subject to ordinary income tax rates and are usually offered to all employees, regardless of their roles or performance. 2. Incentive Stock Options (SOS): These options come with certain tax advantages compared to non-qualified stock options. They are typically granted to key employees and are subject to specific IRC requirements. SOS have tax benefits upon exercise and potential capital gains treatment upon sale. 3. Restricted Stock Units (RSS): Although not technically a stock option, RSS are often considered within the scope of stock option plans. RSS provide employees with the right to receive company stock upon the achievement of specific performance goals or the passage of a certain period of time. RSS usually have vesting schedules to ensure employees remain with the company for a designated period to fully benefit from the grant. By implementing the Nebraska Stock Option Plan and approving the Incentive Stock Option Plan of Pacific Animated Imaging Corp., the company aims to create a sense of ownership among employees, align their interests with the company's success, and provide added incentives for exceptional performance.