The New York Stock Option Plan is a program implemented by Pacific Animated Imaging Corp. to approve the Incentive Stock Option Plan. This plan allows the company to offer stock options to its employees as a way to incentivize and reward their performance. Stock options are financial instruments that give employees the right to purchase company stock at a predetermined price, known as the strike price, within a specified period. By offering stock options, Pacific Animated Imaging Corp. aims to align the interests of its employees with those of the company's shareholders, as the value of the stock options increases with the company's success. The New York Stock Option Plan helps Pacific Animated Imaging Corp. comply with the regulations and guidelines set forth by the New York Stock Exchange (NYSE) and other relevant authorities. By obtaining approval for their Incentive Stock Option Plan, the company ensures that the stock options granted to employees adhere to accepted standards and guidelines. The Incentive Stock Option Plan may entail various types of stock options, each tailored to meet specific objectives and requirements. Some options commonly included in this plan are: 1. Non-Qualified Stock Options (SOS): These stock options do not meet certain criteria defined by the Internal Revenue Code and are subject to different tax treatment upon exercise. SOS offer flexibility in terms of vesting schedules and strike prices. 2. Restricted Stock Units (RSS): RSS are a form of equity compensation where employees receive units, which convert into company shares upon vesting. RSS have gained popularity due to their simplicity and potential to align the interests of employees with long-term company performance. 3. Performance Stock Options: These options are granted based on the achievement of predefined performance goals or key performance indicators. Once the goals are met, employees can exercise their stock options. Performance stock options provide a powerful incentive for employees to contribute to the company's success. 4. Stock Appreciation Rights (SARS): SARS are a type of stock option where employees receive the appreciation in the company's stock price without actually purchasing any shares. The employee receives the difference between the stock's fair market value at the time of exercise and the grant price. By approving the Incentive Stock Option Plan under the New York Stock Option Plan guidelines, Pacific Animated Imaging Corp. aims to attract and retain top talent, motivate employees towards achieving the company's goals, and foster a sense of ownership and commitment among its workforce.