Plantronics 1999 Annual Report Download - page 22

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page 20 PLANTRONICS ANNUAL REPORT 1999
Notes to consolidated financial statements
note 10. STOCK OPTION PLANS AND STOCK PURCHASE PLANS:
STOCK OPTION PLAN
In September 1993, the Board of Directors approved the PI Parent Corporation 1993 Stock Plan (the “1993
Stock Plan”). Under the 1993 Stock Plan, 5,459,242 shares of Common Stock (which number is subject
to adjustment in the event of stock splits, reverse stock splits, recapitalization or certain corporate reorgani-
zations) are reserved for issuance to employees and consultants of the Company, as approved from time
to time by the Compensation Committee of the Board of Directors.The reserved shares include 980,000
shares in 1997 and 1,300,000 in 1999, which were authorized by the Board of Directors and approved by
the stockholders for issuance in 1997 and 1999 respectively.The 1993 Stock Plan, which has a term of ten
years, provides for incentive as well as nonqualified stock options to purchase shares of Common Stock.The
Board of Directors may terminate the 1993 Stock Plan at any time at its discretion.
Incentive stock options may not be granted at less than 100% of the estimated fair market value, as deter-
mined by the Board of Directors, of the Company’s Common Stock at the date of grant and the option
term may not exceed 10 years. For holders of 10% or more of the total combined voting power of all classes
of the Company’s stock, incentive stock options may not be granted at less than 110% of the estimated
fair market value of the Common Stock at the date of grant and the option term may not exceed five years.
Nonqualified stock options may be granted at less than fair market value. Options generally vest over
four years.
DIRECTORS’ STOCK OPTION PLAN
In September 1993, the Board of Directors adopted a Directors’Stock Option Plan (the “Directors’Option Plan”)
and reserved 40,000 shares of Common Stock for issuance to non-employee directors of the Company.
An additional 20,000 shares were authorized for issuance in 1997 under the Directors’Option Plan, pursuant
to Board of Directors’and stockholder approval.The Directors’Option Plan provides that each non-employee
director shall be granted an option to purchase 4,000 shares of Common Stock on the later of the effective
date of the Company’s initial public offering or the date on which the person becomes a director.Thereafter,
each non-employee director shall be granted an option to purchase 1,000 shares of Common Stock each year.
At the end of fiscal 1999, options for 48,500 shares of Common Stock were outstanding under the Directors’
Option Plan. All options were granted at fair market value and generally vest over a four-year period.