Logitech 2012 Annual Report Download - page 92

Exercise of Option; Form of Consideration. The administrator determines when options become exercisable
and may, in its discretion, accelerate the vesting of outstanding options under certain circumstances. The means of
payment for shares issued upon exercise of an option is specified in each award agreement. To the extent permitted
by applicable law, the Plan permits payment to be made by cash, cash equivalents, promissory note, other shares
(with some restrictions), cashless exercise, net exercise, any combination of the prior methods of payment or any
other form of consideration permitted by applicable law.
Term of Option. The term of an option will be stated in the award agreement. However, the term of an option
may not exceed ten years. No option may be exercised after the expiration of its term.
Termination of Service. After termination of service, an option holder may exercise his or her option for the
period of time determined by the administrator and stated in the award agreement. If no period of time is stated in
a participant’s award agreement, a participant may exercise the option within ninety days after such termination, to
the extent that the option is vested on the date of termination (but in no event later than the expiration of the term of
such option as set forth in the award agreement), unless such participant’s service terminates due to the participant’s
death or disability, in which case the participant (or, if the participant has died, the participant’s estate, designated
beneficiary or the person who acquires the right to exercise the option by bequest or inheritance) may exercise the
option, to the extent the option was vested on the date of termination (or to the extent the vesting is accelerated upon
the participant’s death), within one year after the date of such termination. However, unless a participant’s service is
terminated for cause, if a participant is prevented from exercising an option within the applicable post-termination
time period due to legal compliance issues relating to the issuance of shares, the option will remain exercisable for
thirty days after the date on which the Company notifies the participant that the option is exercisable, but in any
event no later than the expiration of the term of the option.
Stock Appreciation Rights. A SAR is the right to receive the appreciation in the fair market value of shares
of the Company between the grant date and the exercise date, for that number of shares of the Company with
respect to which the SAR is exercised. The Company may pay the appreciation in cash, shares of the Company
with equivalent value, or in some combination thereof, as determined by the administrator. Each award of SARs is
evidenced by an award agreement specifying the terms and conditions of the award. The administrator determines
the number of shares granted to a service provider pursuant to an award SARs. The administrator also determines
the exercise price of SARs, the vesting schedule and other terms and conditions of SARs. However, the exercise
price must be at least equal to the fair market value of a share of the Company on the date of grant, and the term of
a SAR may not exceed ten years.
After termination of service, a participant will be able to exercise the vested portion of his or her SAR for
the period of time determined by the administrator and provided in the award agreement. If no period of time is
provided in a participant’s award agreement, a participant or, in the case of participant’s death, his or her estate or
beneficiary, will generally be able to exercise his or her vested SAR for (i) 90 days after his or her termination for
reasons other than death or disability, and (ii) one year following his or her termination due to death or disability.
In no event may a SAR be exercised after the expiration of its term.
Restricted Shares. Restricted share awards are awards of shares of the Company that vest in accordance with
terms and conditions established by the administrator. Each award of restricted shares is evidenced by an award
agreement specifying the terms and conditions of the award. Vesting can be conditioned on continued employment,
the passage of time, or performance goals. The administrator will determine the number of restricted shares granted
to any participant. The administrator also determines the purchase price, if any, of restricted shares and, unless
the administrator determines otherwise, unvested restricted shares typically will be subject to forfeiture upon the
voluntary or involuntary termination of a participant’s service for any reason including death or disability.
Restricted Stock Units (including Performance-Based Restricted Stock Units). Restricted stock units are
awards that represent the right to receive shares of the Company or cash equal to the value of the shares, or some
combination of both as determined by the administrator, if the restricted stock units vest. Restricted stock units
vest in accordance with terms and conditions established by the administrator, as set forth in the applicable award
agreement. Vesting can be conditioned on continued employment, the passage of time, or performance goals.
Restricted stock units that are subject to performance goals are referred to as performance-based restricted stock
82