In addition, each current non-employee Director receives an annual grant of options to purchase 15,000 shares vesting 50 percent annually over two years. All options are non-statutory options, have an exercise price equal to the fair market value on the date of grant and have a term of ten years. Upon forced retirement at age 70, options granted under the Director Plan become fully vested and the Director has one year in which to exercise. In addition, under the Company's 1991 Stock Plan, non-employee Directors Hundt, Joy and Nolan were granted options to purchase 40,000 shares at the time they joined the Board. These options vest 25 percent on the first year anniversary date and thereafter 6.25 percent quarterly over three years.
Options expire ten years from grant date.
All members of the Board are eligible for the Charitable Program, subject to vesting requirements. Individual directors derive no financial benefit from the Charitable Program since all available insurance proceeds and tax deductions accrue solely to the Company. This table shows stock option grants during the fiscal 1998 to the Named Officers. No stock appreciation rights have been granted by the Company to the Named Officers. These rates are compounded annually from the date of grant until the end of the 10-year term of the option.