10b5-1 Planning

Rule 10b5-1 was created in October 2000 to permit officers and directors of public companies to adopt predetermined written plans for selling or purchasing a specific amount of their employer stock. We help prepare and execute 10b5-1 plans designed specifically for each executive.

The primary reason executives use the 10b5-1 approach is to eliminate any allegations of insider trading.

Additional advantages include:

• Gradual diversification of concentrated stock at a predictable rate, spreading sales over time to reduce the concentrated risk.

• Allows purchases and sales at a time in the future when the insider may or may not be aware of material nonpublic information.

• Spreading sales over long periods of time and avoid the bunching of sales only during unrestricted “window” periods.

• Provides greater clarity to corporate insiders concerning a means to plan and structure securities sales.