The Hawaii Employee Stock Option Plan (ESOP) of Linguistics Group, Inc. is an employee benefit program that provides employees with ownership in the company through stock options. This plan is available to employees who work in Hawaii and are employed by Linguistics Group, Inc. The ESOP is designed to motivate and reward employees by allowing them to share in the company's success and growth. Under the Hawaii Employee Stock Option Plan, employees are given the opportunity to purchase company stock at a predetermined price, known as the exercise price. This exercise price is typically set at the current fair market value of the stock on the date of grant. By offering stock options, Linguistics Group, Inc. allows employees to buy shares of company stock in the future, providing them with potential financial benefits. The Hawaii ESOP of Linguistics Group, Inc. features different types of options, including Non-Qualified Stock Options (Nests) and Incentive Stock Options (SOS). Non-Qualified Stock Options are more common and offer employees greater flexibility in terms of taxation. The employees purchasing Nests are subject to ordinary income tax on the spread between the exercise price and the fair market value of the stock. On the other hand, Incentive Stock Options allow employees to potentially receive preferential tax treatment. If certain conditions are met, employees purchasing SOS may qualify for long-term capital gains tax rates upon sale of the stock. The Hawaii Employee Stock Option Plan of Linguistics Group, Inc. provides a valuable opportunity for employees to participate in the company's success and potentially benefit from its financial growth. By offering different types of stock options, Linguistics Group, Inc. ensures that employees have a range of choices and flexibility in their participation in the plan. Overall, this ESOP serves as a valuable tool to attract and retain talented employees, aligning their interests with that of the company.