The Hennepin Minnesota Stock Option Plan is a program designed to approve the Incentive Stock Option Plan of Pacific Animated Imaging Corp., a leading company in the animated imaging industry. This plan offers various stock option options to employees as a means of incentivizing and rewarding their contributions to the company's growth and success. The Hennepin Minnesota Stock Option Plan caters to different types of stock options, ensuring flexibility and optimal benefits for eligible employees. One type of stock option available under this plan is the Non-Qualified Stock Option. This option grants employees the right to purchase company stock at a predetermined price, typically the fair market value at the time of grant. Non-Qualified Stock Options provide employees with potential financial gains if the stock price increases over time. These options are subject to certain tax implications upon exercise. Another type of stock option offered is the Incentive Stock Option (ISO). The ISO plan aims to motivate and retain key employees by granting them the opportunity to purchase company stock at a preferential price. SOS have specific tax advantages, as the gains realized upon exercise may be subject to favorable long-term capital gains tax rates if certain holding period requirements are met. The Hennepin Minnesota Stock Option Plan is meticulously designed to adhere to all the rules and regulations of the jurisdiction and to align with the best interests of Pacific Animated Imaging Corp. and its employees. By offering stock options, the company can attract and retain top talent, fostering a motivated workforce focused on driving the company's growth and profitability. In conclusion, the Hennepin Minnesota Stock Option Plan approves the implementation of the Incentive Stock Option Plan of Pacific Animated Imaging Corp., providing eligible employees with the opportunity to acquire company stock through different types of stock options, including Non-Qualified Stock Options and Incentive Stock Options. This plan aims to reward and motivate employees while aligning with the company's long-term goals and objectives.