[Koor Letterhead]
EXHIBIT A
June 15, 2000
The Securities Authority The Tel Aviv Stock The Registrar of Companies
22 Kanfei Nesharim St. Exchange 97 Yafo St.
Jerusalem 95464 54 Ahad Ha'am St. Jerusalem 91007
Tel Aviv 65202
--------------- --------------- ---------------
Fax: 02-6513940 Fax: 03-5105379
--------------- ---------------
Dear Sirs,
Re: Immediate Report - Koor Industries Ltd. (NO. 38/2000)
Company No. 52-001414-3
Koor Industries Ltd. (hereinafter: "Koor" or "The Company") hereby announces the
following:
Yesterday evening, the company's Executive Committee approved a new option plan
for employees - Option Plan 2000. This plan still needs to be approved by the
Board of Directors.
The following are the main points of the plan:
1. A total frame, allotting 400,000 options, was approved. These options can
be theoretically exercised up to 400,000 Ordinary Shares of the company,
i.e. 2.5% of the issued share capital of the company.
2. The options will be exercised into Ordinary Shares in a quantity that will
reflect the amount of the pecuniary benefit embodied in the options, i.e.
the difference between the price of the company Ordinary Share, as it will
be on the date of the exercise, and the exercise price of the option.
Therefore, the number and price of the exercise share, as stated above, is
theoretical.
3. The exercise price of each option will be the average closing prices of an
Ordinary Share of the company (linked to the dollar) in the month prior to
the committee's decision, i.e. the exercise price is 97.39$.
4. Since the option shares will be allotted only against the pecuniary
benefit, the employees will not be required to pay the exercise price on
the exercise dates. This price will only be used for the purpose of
calculating the pecuniary benefit.
5. The options are for company employees that are not "interested parties" in
the company and will not be "interested parties" as a result of the option
allotment.
6. The exercise period is five years, beginning June 14, 2000 (hereinafter:
"the determining date").
7. The entitlement to exercise the options will be in three potions, so that
at the end of the first year from the determining date or the date of
beginning of employment (whichever the latter) the entitlement for a third
of the amount allotted will be crystallized, and the two remaining thirds
at the end of each year thereafter.
8. The total amount of 400,000 options will be allotted to a trustee and the
Remuneration Committee and CEO of the company will be authorized to decide
as to the who receives and how many.
Yours sincerely,
Shlomo Heller, Adv.
