Plantronics 2007 Annual Report Download - page 82

78 P l a n t r o n i c s
Options granted prior to June 1999 and after September 2004 generally vested over a four-year period and
those options granted subsequent to June 1999 but before September 2004 generally vested over a five-
year period. In July 1999, the Stock Option Plan Committee was authorized to make option grants to
employees who are not senior executives pursuant to guidelines approved by the Compensation Committee
and subject to quarterly reporting to the Compensation Committee.
Directors’ Stock Option Plan
In September 1993, the Board of Directors adopted a Directors’ Stock Option Plan (the “Directors’
Option Plan”) and has reserved cumulatively since inception a total of 300,000 shares of common stock
(which number is subject to adjustment in the event of stock splits, reverse stock splits, recapitalization or
certain corporate reorganizations) for issuance to non-employee directors of Plantronics. The Directors’
Option Plan provides that each non-employee director shall be granted an option to purchase 12,000
shares of common stock at the date on which the person becomes a new director. Annually thereafter,
each continuing non-employee director shall be automatically granted an option to purchase 3,000 shares
of common stock. At the end of fiscal year 2007, options to purchase 90,000 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. The ability to grant new options under the Directors’ Option Plan expired
by its terms in September 2003, and Directors may participate in the 2003 Stock Option Plan.
In August 2005, the Board of Directors reserved 145,000 shares for the issuance of stock awards to Altec
Lansing employees (the “Inducement Plan”). Subsequent to the Altec Lansing acquisition, the Company
granted 129,000 stock options to purchase shares of common stock at a weighted average exercise price of
$33.49, which was equal to the fair value of the underlying stock on the grant date. The Company also
issued 5,000 shares of restricted stock to Altec Lansing employees with a purchase price of $0.01 per
share under the Inducement Plan. At March 31, 2007, options to purchase 90,655 shares of common
stock were outstanding and the remaining shares of common stock under the Inducement Plan were not
available for future grants as the reservation of such shares was subsequently canceled.
Employee Stock Purchase Plan
On June 10, 2002, the Board of Directors of Plantronics approved the 2002 Employee Stock Purchase
Plan (the “2002 ESPP”), which was approved by the stockholders on July 17, 2002, to provide certain
employees with an opportunity to purchase common stock through payroll deductions. The plan qualifies
under Section 423 of the Internal Revenue Code. Under the 2002 ESPP, which is effective through June
2012, the purchase price of Plantronics’ common stock is equal to 85% of the lesser of the fair market
value of Plantronics’ common stock on (i) the first day of the offering period, or (ii) the last day of the
offering period. Each offering period is six months long. There were 71,498, 91,886 and 242,530 shares
issued under the 2002 ESPP in fiscal 2005, 2006 and 2007, respectively. At March 31, 2007, there were
128,374 shares reserved for future issuance under the ESPP.