Incentive Stock Option plans (ISOs)

Incentive Stock Options (ISOs) are a tax preferred approach to providing an equity based incentive. They can be used in a number of ways to shape an internal ownership transfer plan. Hall & Company can provide ISO plans and can demonstrate how they are best used to augment internal ownership transfer. An Incentive Stock Option is an offer to employees to purchase stock for several years at a fixed price. The ISO is tax preferred in that an employee can defer taxation until the stock purchase with an ISO is sold. ISOs can be tailored in a number of different ways.

Incentive Stock Option Plans can be designed to:

• Encourage larger stock purchases
• Provide incentives for management to achieve greater growth and profitability
• Offset the dilution an ESOP might have on ownership of your leadership team
• Reward key managers for their performance and contribution