San Bernardino, California Stock Option Plan: The San Bernardino, California Stock Option Plan aims to approve the Incentive Stock Option Plan of Pacific Animated Imaging Corp. This stock option plan offers employees the opportunity to purchase company stock at a predetermined price, typically lower than the market value, within a specific timeframe. It acts as an incentive for employees to contribute to the company's growth and success. The Incentive Stock Option Plan of Pacific Animated Imaging Corp. in San Bernardino, California is designed to motivate and retain talented employees. It offers various types of stock options, including: 1. Non-Qualified Stock Option (NO): This type of stock option does not meet the Internal Revenue Code requirements for preferential tax treatment. When exercising these options, employees are subject to ordinary income tax on the difference between the option's exercise price and the fair market value of the stock at the time of exercise. 2. Incentive Stock Option (ISO): SOS are intended to provide employees with tax advantages. If certain requirements are met, employees do not need to pay regular income tax when exercising the options. However, they may be subject to alternative minimum tax (AMT) implications. 3. Performance Stock Option: This type of stock option offers rewards based on predetermined performance goals or milestones set by the company. Employees can receive stock options if they achieve specific individual or company-wide objectives. The San Bernardino, California Stock Option Plan is carefully structured to align the interests of the employees with those of Pacific Animated Imaging Corp. It serves as a tool to attract and retain talented individuals who contribute to the long-term success and growth of the company. By offering stock options, the plan creates an ownership mentality and fosters a sense of loyalty and dedication among employees. The approval of the Incentive Stock Option Plan within the San Bernardino, California Stock Option Plan is a critical step for Pacific Animated Imaging Corp. It underscores the company's commitment to rewarding and motivating its workforce while giving employees the opportunity to share in the company's financial success. Through this plan, the company aims to incentivize exceptional performance, drive innovation, and cultivate a culture of ownership and collaboration within the organization.