LONG TERM INCENTIVE PLAN 2024:
ARTICLE 1. PURPOSE OF THE PLAN
The purpose of the Pacific Ventures 2024 Long Term Incentive Plan (the "Plan") are to attract and retain the best available personnel, to provide additional incentives to Employees, Directors, and Consultants and to promote the success and enhance the value of the Company's business by linking personal interest of the Employees, Directors, and Consultants to those of the Company stockholders and by providing such individuals with an incentive for outstanding performance to generate superior returns.
ARTICLE 2. DEFINITION
Wherever the following terms are used in the Plan they shall have the meanings specified below, unless the context clearly indicates otherwise. The singular pronoun shall include the plural where the context so indicates.
2.1 "Affiliate” means (a) a Subsidiary, (b) any entity in which the Company has a significant equity interest, or (c) any entity that directly or through one or more intermediaries is controlled by the Company, in each case, as determined by the Committee.
2.2 “Award” means an Option, an award of Restricted Stock, a Stock Appreciation Right, an award of Performance Shares, an award of Performance Stock Units, a Dividend Equivalent Right, an award of Restricted Stock Units, a Performance Bonus Award, a Performance-Based Award or any other right or benefit, including any other Award under Article 8, granted to a Participant pursuant to the Plan.
2.3 “Award Agreement” means any written agreement, contract, or other instrument or document evidencing the terms and conditions of an Award, including through electronic medium.
2.4 "Board" means the Board of Directors of the Company.
2.9 "Company" means Pacific Ventures, a San Andreas corporation.
2.10 "Dividend Equivalent Right" means a right granted to a participant pursuant to Section 8.3 hereof to receive the equivalent value (in cash or Shares) of dividends paid on the Shares.
ARTICLE 2. REWARDS
3.0 Cash Bonus
The fiscal cash bonus amount awarded to Employees is determined based on their performance and the company's overall financial health. The performance metrics for determining eligibility and the amount of the cash bonus include individual performance evaluations, achievement of project milestones, and the company's financial performance.
3.1 Number Of Shares.
The aggregate number of Shares which may be issues or transferred pursuant to Awards under the Plan is 500,000 Shares, all of which may be issues upon the exercise of Incentive Stock Options.
3.2 Repricing
Notwithstanding the foregoing, a Repricing is prohibited without prior stockholder approval. Subject to compliance with the provisions of the immediately preceding sentencing regarding a Repricing, the Board may, at any time or from time to time: authorize the Company, with the consent of respective Participants, to issue new Awards in exchange for the surrender and cancellation of any or all outstanding Awards. This does not limit a shareholder from redistribution on the open market.
3.4 Dividends
All Employees, Consultants, and Directors may be granted one or more performance based awards in the form of cash bonus payable upon the attainment of performance goals that are established by the committee and relate to one or more of the performance criteria. All eligible individuals may be granted Dividend Equivalent Rights based on the dividends declared on the Shares for that appropriate time scale. Such individuals are to be credited as of the dividend payment dates, during the period between the date and the Award is granted. Such an issuance would be rewarded on a weekly basis in which reflects on earnings on that given Affiliate. After operation costs, with performance incentives, each Employee, Director, Angel Investor, and Consultant may be rewarded up to 10% on a issuance basis, or minimum of $5.00 per share.
3.5 Incentive Stock Options
Long term Employees, Consultants, and Directors at any time may be awarded a ISO ("Incentive Stock Option") which is the fair market value of a share of common stock on the grant date. The term of the Shares shall be determined at the time of reward as a final exercise date, subject to earlier termination in the event of participant terminations. All ISOs ("Incentive Stock Option") will be announced publicly by the Company.