The Wake North Carolina Stock Option Plan aspires to approve the Incentive Stock Option Plan of Pacific Animated Imaging Corp., a leading company in the field of animated imaging technology. This plan seeks to incentivize and reward employees, directors, and consultants by granting them stock options in the company. The Incentive Stock Option Plan of Pacific Animated Imaging Corp. is designed to motivate and retain key personnel by granting them the opportunity to purchase company stock at a predetermined price, known as the exercise price. These stock options can be granted to employees at all levels, including executives and non-executives, who play a crucial role in driving the company's success. By providing employees with stock options, Pacific Animated Imaging Corp. aims to align their interests with those of the shareholders and foster a sense of ownership and dedication. This plan prompts employees to work towards enhancing the company's performance, as their financial gain increases with the company's success. The Wake North Carolina Stock Option Plan offers various types of stock options within the Incentive Stock Option Plan. These types include Non-Qualified Stock Options (Nests) and Incentive Stock Options (SOS). Nests provide employees with the opportunity to purchase company stock at a predetermined price, regardless of the stock's market value. These options are generally more flexible and common. Employees are taxed on the gain between the exercise price and the stock's current market value when they exercise these options. SOS, on the other hand, offer certain tax advantages by qualifying under specific guidelines outlined by the Internal Revenue Service (IRS). Employees who exercise SOS may be eligible for favorable tax treatment, as the gain on these options is subject to long-term capital gains tax rates instead of ordinary income tax rates. The Incentive Stock Option Plan under the Wake North Carolina Stock Option Plan is carefully designed to comply with relevant legal and regulatory requirements while providing attractive incentives to encourage exceptional performance and loyalty among the employees of Pacific Animated Imaging Corp. This plan aims to promote long-term growth, shareholder value, and overall success for the company and its stakeholders.