The employee purchase plan provides for payroll withholding and bank loans which we guarantee. Purchases are employee-initiated. During the last few years we have developed our management-directed plans which include an employee stock option plan, a key employee stock option plan, a stock bonus plan and an incentive compensation plan. These management-directed plans are designed to direct stock to employees who will produce the greatest results for the company. The stock option plan is a nonqualified plan.
Employees can participate after two years of service.
The key employee stock option plan is a discretionary plan used by top management to attract and retain key employees. It can be used to award an outstanding employee, or someone who's doing a really great job but has not earned two years of service. Our stock option plan requires a minimum underlying purchase of stock. Once an employee puts his or her own money into the company, there's a greater sense of commitment and they're less likely to leave. If you do not make full payment, the option will lapse.