Some random thoughts on Proposal 2

Any other shareholders feeling a bit duped on this Proposal 2 option exchange? It "smells" a bit, given the shift of sales from this quarter to the previous quarter - resulting in, Surprise - a dropping share value today below 9.

As to the compensation expense as an argument to go forward with the exchange, that seems like a bit of a strawman. Won't Real dollars - ie cash flow, be affected just the same whether they issue new shares or reprice the old? Id rather have the higher expense, which lowers the taxes, if the cash flow stays the same -- (other than the tax expense)

Personally, I think the employees need to look around to U.S. industries out there and to see that right now, having a job, with benefits, is pretty neat. Could they get jobs elsewhere and have options that would better compensate them? Perhaps, but that is always the case. I understand their short term disappointment but if the business and the economy does its job, the performance will come back within 1-3 years.

Interestingly - the share price drop now mirrors the major indices, more than the good or bad results of the business. Thats the nature of the beast when insiders which were long - go to sell to funds which need to buy and sell from their pool of assets to manage redemptions. If the economy picks up but ISNS does so-so, the share price only lifted by the economic effect of the country, then employees would benefit.

How bout the run from $1.5 per share to $16 per share? Some of the employees must have cashed in cause the dilution was there (even pre purchase of EIS product line)

If next year the price is $4 per share, do we go through this exercise again?

Some of the shareholders of ISNS are underwater 50%. Do they get to reprice their shares? I think not. (I am not one of those, but can appreciate their difficulty. Do employees care about this drop of value for outside investors?