Document:

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                                                                   Exhibit 10.14

                              CLICKSERVICE SOFTWARE
                                      LTD.

                                    RULES OF

                               APPROVED EXECUTIVE
                             SHARE OPTION SUB-SCHEME
                                FOR EMPLOYEES OF
                     CLICKSERVICE SOFTWARE LIMITED (EUROPE)

                              APPROVED BY THE BOARD
                              OF INLAND REVENUE ON
                                 [ ] 2000 UNDER
                                 REFERENCE X [ ]

                                   BIRD & BIRD
                                 90 FETTER LANE
                                 LONDON EC4A 1JP

                               TEL: 0171 415 6000
                               FAX: 0171 415 6111

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                           CLICKSERVICE SOFTWARE LTD.

                       APPROVED SHARE OPTION SCHEME RULES

1.      DEFINITIONS

1.1     In these Rules of the Scheme the following words and expressions shall
        have the following meanings:

        "ADOPTION DATE" means the date on which the Scheme is adopted by the
        Company;

        "APPROVED SCHEME" means a share option scheme approved under Schedule 9;

        "ARTICLES" means the Articles of Association of the Company from time to
        time in force;

        "ASSOCIATED COMPANY" has the same meaning as in Section 416 of the Taxes
        Act;

        "AUDITORS" means the auditors for the time being of the Company;

        "BOARD" means the board of directors from time to time of the Company or
        a duly authorised committee thereof appointed in accordance with Rule
        11.2;

        "CLOSE COMPANY" has the same meaning as in Chapter I of Part XI of the
        Taxes Act SAVE THAT for the purposes of determining whether a company is
        a close company for the purposes of this Scheme, sections 414(1)(a) and
        415 of that Act shall be disregarded;

        "COMPANY" means ClickService Software Ltd., the parent of ClickService
        Software Limited;

        "CONTROL" means control as defined in Section 840 of the Taxes Act 1988;

        "DEALING DAY" means a day on which the London Stock Exchange is open for
        business;

        "ELIGIBLE PERSON" means:

        (a)     an employee who is a director of any member of the Group and
                required under his contract of employment to work for not less
                than 25 hours per week (excluding meal breaks) disregarding
                holiday entitlement; or

        (b)     any other employee of any member of the Group; but

        (c)     excluding Moshe Ben-Bassat or Idit Ben-Bassat, neither of whom
                is an Eligible Person for the purposes of the scheme;

        "EXERCISE PRICE" means, in relation to an Option, the price per Share
        payable on the exercise of that Option;

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        "GROUP" means the Company and all of the Subsidiaries and "MEMBER OF THE
        GROUP" shall be construed accordingly;

        "LISTING" means the listing of equity shares in the Company on a
        recognised stock exchange within the meaning of Section 841 of the Taxes
        Act;

        "LONDON STOCK EXCHANGE" means London Stock Exchange Limited;

        "MARKET VALUE" means in relation to a Share on a given date:

        (a)     the market value of such Share on that date as determined in
                accordance with Part VIII of the Taxation of Chargeable Gains
                Act 1992 and agreed in advance with the Shares Valuation
                Division of the Inland Revenue; or

        (b)     in the event that Shares are admitted to the Official List an
                amount which is equal to the average of the middle market
                quotation of such Share as derived from the Official List for
                the 3 Dealing Days immediately preceding that date;

        "MATERIAL INTEREST" has the meaning given in Section 187(3) of the Taxes
        Act;

        "OFFICIAL LIST" means the Official List of the London Stock Exchange;

        "OPERATIVE PERIOD" means the period of ten years commencing on the
        Adoption Date;

        "OPTION" means a right to acquire Shares under the Scheme;

        "PARTICIPANT" means an Eligible Person who has been granted an Option;

        "RULES" means the rules of the Scheme contained in this document and
        "RULE" shall be construed accordingly;

        "SCHEDULE 9" means Schedule 9 to the Taxes Act;

        "THE SCHEME" means the scheme contained in this document as from time to
        time amended in accordance with the provisions hereof;

        "SHARES" means Ordinary Shares of NIS 0.02 each in the capital of the
        Company as defined in the Company's Articles of Association which
        satisfy the provisions of paragraphs 10 to 14 (inclusive) of Schedule 9
        and "SHARE" shall be construed accordingly;

        "SUBSIDIARY" means a company which is a subsidiary of the Company within
        the meaning of Section 736 of the Companies Act 1985 and which is under
        the Control of the Company;

        "SUBSISTING OPTION" means an option granted under this Scheme or the
        Unapproved Scheme which has not lapsed or been exercised;

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        "TAXES ACT" means the Income and Corporation Taxes Act 1988;

        "TERMINATION FOR CAUSE" means in relation to a Participant, termination
        of the Participant's employment with any member of the Group in
        circumstances giving rise to summary dismissal;

        "UNAPPROVED SCHEME" means the unapproved executive share option scheme
        adopted by the Company on 2000;

        "VESTING COMMENCEMENT DATE" means, in relation to an Option, the second
        anniversary of the date of grant of the Option or such other date that
        the Board determines in relation to the Option and is specified in the
        option certificate related to the relevant option; and

        "2000 STOCK PLAN" means the 2000 Stock Plan adopted by the Company on
        2000.

1.2     In these Rules the expression "holding company" and "subsidiary" have
        the same meanings as those contained in Section 736 of the Companies Act
        1985.

1.3     The Rules of the Scheme and their definitions are separate from the
        rules of the 2000 Stock Plan and the terms of the 2000 Stock Plan shall
        have no effect in relation to the interpretation and implementation of
        the Scheme.

1.4     Any reference in these Rules to a statutory provision shall include a
        reference to that provision as amended or re-enacted from time to time
        and any subordinate legislation, orders or regulations made pursuant
        thereto. Where the context permits the singular shall include the plural
        and vice versa and the masculine gender shall include the feminine.

2.      ELIGIBILITY

2.1     Subject to the following provisions of this Rule 2, the Board shall have
        an absolute discretion as to the selection of persons to whom an Option
        is granted by the Company.

2.2     An Option shall not be granted to any person unless he is an Eligible
        Person.

2.3     An Option shall be personal to the Participant to whom it is granted and
        may not be transferred to or exercised by any other person other than
        his personal representatives.

2.4     An Option shall not be granted to any person at any time when he has or
        has within the preceding 12 months had, a Material Interest in a Close
        Company being either the Company or a company which has Control of the
        Company or is a member of a consortium which owns such a company.

3.      GRANT OF OPTIONS

3.1     An Option may, subject to Rule 2, be granted to a Participant at such
        times and on such terms in accordance with these Rules as the Board
        shall in its absolute discretion determine.

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3.2     No Option may be granted after the expiry of the Operative Period.

3.3     An Option shall be granted by the Company executing as a deed and
        issuing to the Participant an option certificate which contains an
        undertaking by the Participant (duly executed as a deed) to be bound by
        the rules of this Scheme and which specifies:

        (a)     the date of grant of the Option;

        (b)     the number of Shares in respect of which the Option is granted;

        (c)     the Exercise Price;

        (d)     the date(s) on which the Option may be exercised and the extent
                to which the Option may be exercised on any such date;

        (e)     any performance-related conditions imposed pursuant to Rule 8 to
                which the Option is subject;

        (f)     any variation to the Vesting Commencement Date, if appropriate;

        (g)     that the Participant agrees to indemnify each member of the
                Group in respect of any tax liability arising in respect of the
                exercise of an Option (to the extent permitted by law),

        and is otherwise in such form as the Board may from time to time
        determine.

3.4     A Participant shall be entitled to renounce, surrender or cancel, or
        agree to the cancellation of, an Option within the period of 30 days
        immediately following the date of grant and if any Option is so
        renounced, surrendered or cancelled it shall be deemed for the purposes
        of this Scheme never to have been granted.

3.5     An Option shall not be granted by any person other than the Company
        without the prior approval of the Board.

4.      EXERCISE PRICE

        The Exercise Price shall be determined by the Board but shall be not
        less than the greater of the Market Value of Shares at the date of grant
        and the nominal value of a Share.

5.      EXERCISE OF OPTIONS

5.1     NOTICE OF EXERCISE

        An Option shall only be exercised by a Participant within such period as
        may be applicable by virtue of the terms on which the Option was granted
        and the provisions of Rules 7 and 8 below and subject thereto the
        exercise shall be effected in such form and

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        manner as the Board may from time to time prescribe. In the absence of
        the Board prescribing to the contrary a Participant shall exercise an
        Option by his giving to the Company at its registered office prior
        notice in writing signed by the Participant, which notice shall specify
        the number of Shares (which shall be a multiple of 100 or be equal to
        the balance of the Shares remaining subject to the Option) in respect of
        which the Option is being exercised and shall be accompanied both by
        payment in full of the aggregate Exercise Price for the Shares in
        respect of which the Option is exercised and the option certificate
        evidencing the grant of the relevant Option for cancellation or
        amendment. The date of receipt of such notice shall (in the absence of
        the Board prescribing otherwise in the option certificate) be deemed to
        be the date of exercise of the Option or of the relevant portion of the
        Option, as the case may be.

5.2     ALLOTMENT

        The Company shall enter the Participant in the Company's register of
        members as the holder of the appropriate number of Shares within thirty
        days after the date of exercise of the Option (the date of such entry
        being, for the purposes of Rule 5.3 below, the "DATE OF ALLOTMENT") and
        (provided that the Company issues share certificates) the Company shall
        deliver to the Participant a definitive share certificate in respect
        thereof.

5.3     RIGHTS OF SHARES

        Any Shares issued pursuant to Rule 5.2 above shall rank pari passu in
        all respects and form a uniform class with the Shares in issue on the
        date of allotment save that they shall not rank for or be entitled to
        any dividend or other distribution or any issue of Shares by way of
        capitalization of profits or reserves or any issue of securities by way
        of rights which under the terms of a resolution passed by the Company is
        to be or is proposed to be paid or made to the holders of Shares on the
        register on a date prior to the date of allotment. The Shares shall be
        issued subject to the Articles.

5.4     LISTING

        The Company shall at its expense make application to the relevant
        recognised stock exchange for the admission to Listing of all Shares
        allotted pursuant to the exercise of any Option if Shares are then
        admitted to Listing.

5.5     CONDITION PRECEDENT

        If a Participant is liable to tax, duties and social security
        contributions on the exercise of an Option and the Company is liable to
        make a payment to the appropriate authorities on account of that
        liability then the Participant must enter into such arrangements as
        necessary for the purpose of ensuring that the Company is put in
        sufficient funds to enable it to discharge its liability to make the
        payment to the appropriate authority, or is reimbursed for any payment
        made.

6.      LIMITATIONS ON GRANTS

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6.1     No options shall be granted pursuant to Rule 3 if such grant would
        result in the aggregate of:

        (a)     the number of shares over which subsisting Options have been
                granted under the Unapproved Scheme after March 20, 2000, this
                Scheme and the 2000 Stock Plan; and

        (b)     the number of shares which have been issued on the exercise of
                Options granted under the Unapproved Scheme after March 20,
                2000, this Scheme and the 2000 Stock Plan;

        exceeding 541,000 shares.

6.2     INDIVIDUAL LIMITS

6.2.1   The number of Shares over which the Board may grant an Option to an
        Eligible Person on any date shall be limited so that the aggregate
        Market Value of those Shares and any other shares which may be acquired
        in respect of options previously granted to him under the Scheme and any
        other Approved Scheme, not being a savings related share option scheme,
        and established by the Company or any Associated Company of the Company
        does not exceed Pound Sterling30,000. For the purposes of this Rule the
        Market Value of a Share shall be calculated as at the time the option in
        respect of that Share was granted or such earlier time as may have been
        agreed in writing with the Board of Inland Revenue.

7.      TIME FOR EXERCISE OF OPTIONS

7.1     Notwithstanding the provisions of this Rule 7 the Option may not be
        exercised at any time:

        (a)     when the Participant has a Material Interest with the Company;
                or

        (b)     prior to closing of the initial public offering of its shares by
                the Company pursuant to the United States Securities Act of 1933
                as amended or the securities laws of any other jurisdiction (the
                "IPO") as defined in Article 25A of the Articles.

7.2     Subject to the other provisions of this Rule 7 and Rule 8 and subject to
        the terms on which the Option was granted providing otherwise, the
        Option may not be exercised prior to the Vesting Commencement Date,
        whereupon one half of the number of Shares subject to the option may be
        exercised, and thereafter the Option may be exercised on the following
        basis:

               n =  a + 24 x b
                    ------
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               Where  n      is the number of Shares over which the Option
                             may be exercised on any date (the "EXERCISE DATE");

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                                a       is the number of complete months between
                                        the Vesting Commencement Date and the
                                        Exercise Date; and

                                b       is the number of Shares subject to the
                                        Option.

7.3     If a Participant shall cease to be an Eligible Person by reason of
        circumstances giving rise to Termination for Cause the Option shall
        lapse and become of no effect.

7.4     If a Participant shall cease to be an Eligible Person otherwise than by
        reason of circumstances giving rise to Termination for Cause, the
        Participant (or his successors) may, subject to Rule 7.2 and Rule 8,
        exercise his Option to the extent not previously exercised by the
        Participant within two months of such cessation and to the extent not
        exercised after the end of that period the Option shall lapse and become
        of no effect.

7.5     For the purposes of this Rule 7 where a Participant's employment is
        terminated without notice he shall cease to be an Eligible Person on the
        date on which the termination takes effect and where the employment is
        terminated with notice he shall cease to be an Eligible Person on the
        date on which such notice is given.

8.      PERFORMANCE-RELATED CONDITIONS OF EXERCISE

8.1     The exercise of an Option shall be conditional upon the performance of
        the Company and, if the Board so determines, upon the performance of a
        Subsidiary and/or the Participant over such period and measured against
        such objective criteria as shall be determined by the Board and notified
        to the Participant when the Option is granted. If no such objective
        criteria are notified to the Participant when the Option is granted,
        this Rule 8 shall not apply in relation to the Option.

8.2     Any such condition may provide that the Option shall become vested in
        respect of a given number or proportion of the Shares over which it
        subsists according to whether, and the extent to which, any given
        performance target is met or exceeded.

8.3     After an Option has been granted the Board may, in appropriate
        circumstances, amend any performance-related condition of exercise of an
        option PROVIDED THAT no such amendment shall be made unless an event has
        occurred or events have occurred in consequence of which the Board
        reasonably considers, having due regard to the interests of the
        shareholders of the Company, that the terms of the existing
        performance-related condition(s) of exercise of the Option should be so
        varied for the purposes of ensuring that either the objective criteria
        against which the performance of the Company and/or any Subsidiary
        and/or the Participant will then be measured will be a fairer measure of
        such performance or that any amended performance condition will afford a
        more effective incentive to the Participant and will be no more
        difficult to satisfy than were the original condition(s) when first set.

8.4     If, in consequence of a performance condition being met, an Option
        becomes vested in respect of some but not all of the number of Shares
        over which it subsists it shall thereupon lapse and cease to be
        exercisable in respect of the balance of the Shares over

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        which it was held.

9.      VARIATIONS IN THE SHARE CAPITAL OF THE COMPANY

9.1     VARIATION OF CAPITAL

        If at any time after the date of grant of an Option and before it ceases
        to be exercisable there is a variation of the share capital of the
        Company which involves the Shares by reason of:

        9.1.1   a capitalization of reserves; or

        9.1.2   a reduction, sub-division, or consolidation of capital,

        the Exercise Price and/or the number of Shares in respect of which the
        Option may be exercised shall be adjusted at the discretion of the Board
        to such extent and in such manner as the Auditors shall in their opinion
        consider confirm in writing to the Board to be fair and reasonable, but
        so that the aggregate Exercise Price payable on the exercise of an
        Option previously granted under these Rules shall not be increased or
        materially altered thereby and provided that any such adjustment shall
        be subject to prior approval of the Board of Inland Revenue.

9.2     NOTIFICATION

        All Participants shall be notified in writing of any such adjustments as
        soon as practicable thereafter and the Company shall be entitled to call
        in the instruments evidencing the grant of the Options affected by such
        adjustments for endorsement or replacement, as may appear appropriate.

10.     SUBSTITUTE OPTIONS FOLLOWING CHANGE IN CONTROL OF THE COMPANY

10.1    APPLICATION

        This Rule 10 applies where a company (the ACQUIRING COMPANY):

        10.1.1 obtains Control of the Company as a result of making:

                (a)     a general offer to acquire the whole of the issued share
                        capital of the Company (other than that which is already
                        owned by the Acquiring Company and/or by its holding
                        company and/or by any subsidiary of its holding company)
                        made on a condition such that if it is satisfied the
                        Acquiring Company will have Control of the Company; or

                (b)     a general offer to acquire all the Shares (or such
                        Shares as are not already

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                        owned by the Acquiring Company and/or by its holding
                        company and/or by any subsidiary of its holding
                        company); or

        10.1.2  obtains Control of the Company in pursuance of a compromise or
                arrangement sanctioned by the court under Section 425 of the
                Companies Act 1985; or

        10.1.3  becomes bound or entitled to acquire shares in the Company under
                Sections 428 to 430F of the Companies Act 1985.

10.2    RELEASE OF OPTIONS

        Subject to the conditions referred to in Rule 10.3, where this Rule 10
        applies, a Participant may, by agreement with the Acquiring Company and
        within the period referred to in Rule 10.4, release his Option (the OLD
        OPTION) in consideration of the grant to him of an option (the NEW
        OPTION) over shares in the Acquiring Company or some other company
        falling within paragraph 10(b) or paragraph 10(c) of Schedule 9.

10.3    THE CONDITIONS

        The conditions referred to in Rule 10.2 are as follows:

        10.3.1  the shares over which the New Option is granted must comply with
                the conditions of paragraphs 10 to 14 (inclusive) of Schedule 9;

        10.3.2  the total market value (determined in accordance with Part VIII
                of the Taxation of Chargeable Gains Act 1992) of the Shares
                subject to the Old Option immediately before its release must be
                equal to the total market value (as so determined) immediately
                after the grant of the New Option of the shares in respect of
                which the New Option is granted; and

        10.3.3  the aggregate subscription price payable by the Participant upon
                the exercise in full of his New Option must be equal to the
                aggregate Exercise Price which would have been payable by him
                had he exercised in full his Old Option in respect of the total
                number of Shares subject to the Old Option at the time of its
                release.

10.4    PERIOD FOR RELEASE

        The period referred to in Rule 10.2 is:

        10.4.1  in a case falling within Rule 10.1.1, six months beginning with
                the time when the Acquiring Company obtains Control of the
                Company and any condition subject to which the offer is made is
                satisfied;

        10.4.2  in a case falling within Rule 10.1.2, six months beginning with
                the time when the court sanctions the compromise or arrangement;
                and

        10.4.3  in a case falling within Rule 10.1.3, the period during which
                the Acquiring

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                Company remains so bound or entitled.

10.5    CONSEQUENCES OF RELEASE

        Where a Participant is granted a New Option in consideration of the
        release of his Old Option in accordance with Rule 10, then:

        10.5.1  the New Option shall be exercisable in the same manner as the
                Old Option;

        10.5.2  the New Option shall be subject to the provisions of the Scheme
                as it had effect in relation to the Old Option immediately
                before its release; and

        10.5.3  with effect from the release, Rules 1, 5, 6, 8, 9, 10, 11,
                (except Rules 11.1 and 11.2) and 13 shall, in relation to the
                New Option, be construed as if references to the Company and to
                Shares were references to the Acquiring Company and to shares in
                the Acquiring Company or, as the case may be, the other company
                in respect of whose shares the New Option is granted.

11.     ADMINISTRATION OF THE SCHEME

11.1    GENERAL

        The Scheme shall in all respects be administered under the direction of
        the Board. The Board may make such rules for the conduct of the Scheme,
        not being inconsistent with the provisions of these Rules, as it shall
        think fit. Any dispute regarding the interpretation of the Scheme or the
        terms of any Option shall be determined by the Board (after seeking such
        advice as it shall consider necessary) and its decision shall be final
        and binding.

11.2    COMMITTEE

        The Board may delegate all or any of its powers in relation to the
        Scheme to a duly authorised committee of the Board.

11.3    AUTHORISED SHARE CAPITAL

        The Company shall at all times maintain an amount of authorised and
        unissued Shares sufficient to satisfy outstanding Options under the
        Scheme.

11.4    ARTICLES OF ASSOCIATION

        The provisions of the Articles for the time being with regard to the
        service of notices upon members of the Company shall apply mutatis
        mutandis to any notice to be given by the Company to Participants under
        the Scheme and all notices to be given to the Company under the Scheme
        shall be delivered or sent by post to the Company at its registered
        office.

11.5    TRUSTEES

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        Any member of the Group may provide money to the trustee or trustees of
        any trust or any other person to enable it, him or them to acquire
        Shares to be held for the purposes of the Scheme, to enter into any
        guarantee or indemnity for these purposes, to the extent permitted by
        Section 153 of the Companies Act 1985.

11.6    COPIES OF DOCUMENTS

        The Participants shall be entitled to receive upon request copies of all
        accounts, circulars, and notices sent to holders of Shares.

12.     AMENDMENT OF THE SCHEME

12.1    RESOLUTION OF THE BOARD

        The Board shall at any time be entitled to amend by resolution all or
        any of the provisions of the Scheme provided that:

        12.1.1  no amendment to the Scheme shall be made which would prejudice
                the subsisting rights of existing Participants in any manner
                without the prior written consent of existing Participants
                entitled to exercise Options in respect of at least three
                quarters of the total number of Shares over which Options shall
                at that time be subsisting; and

        12.1.2  no amendment shall have effect until approved by the Board of
                Inland Revenue.

12.2    REVENUE APPROVAL

        The Board may at any time by resolution and without other formality
        amend the Scheme in any way to the extent necessary to secure and
        maintain the approval of the Scheme by the Board of Inland Revenue under
        Schedule 9 and to ensure that such approval is not withdrawn pursuant to
        any statutory modifications of the provisions of the Taxes Act.

12.3    NOTIFICATION

        On any such amendment being made by the Board all Participants shall be
        notified in writing as soon as practicable thereafter.

12.4    TERMINATION

        The Board or the Company in General Meeting shall be entitled by
        resolution to terminate the Scheme at any time but Options previously
        granted shall continue to be valid and exercisable in accordance with
        the provisions of the Scheme.

13.     ADDITIONAL PROVISIONS

13.1    CONFLICT

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        Every Option shall be subject to the condition that no Shares shall be
        issued to a Participant following the exercise of an Option if such
        issue would be contrary to any enactment or regulation for the time
        being in force of the United Kingdom, Israel, United States or of any
        other country having jurisdiction in relation thereto. The Company shall
        not be bound to take any action to obtain the consent of any
        governmental authority to such issue or to take any action to ensure
        that any such issue shall be in accordance with any such enactment or
        regulation if such action could in the opinion of the Board be unduly
        onerous.

13.2    EMPLOYMENT

        The rights and obligations of a Participant under his terms of
        employment with any member of the Group shall not be affected by his
        participation in the Scheme and the Scheme shall not afford to a
        Participant any additional right to compensation in consequence of the
        termination of his employment for any reason whatsoever.

13.3    AUDITORS

        In any matter in which they are required to act under these Rules the
        Auditors shall be deemed to be acting as experts and not as arbitrators.

13.4    GOVERNING LAW

        The Scheme shall be governed by and interpreted in accordance with
        English Law.

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                           CLICKSERVICE SOFTWARE LTD.
                     APPROVED EXECUTIVE SHARE OPTION SCHEME
                               OPTION CERTIFICATE

Name of Optionholder:        ___________________________________________________
Address of Optionholder:     ___________________________________________________
                             ___________________________________________________
                             ___________________________________________________
Date of Grant                ___________________________________________________
Maximum Number of Shares:    ___________________________________________________
Exercise Price:              ___________________________________________________

ClickService Software Ltd. HEREBY GRANTS to the Optionholder named above an
Option to acquire the above number of Shares in the Company at the above
Exercise Price.

This Option is exercisable subject to and in accordance with the rules of the
ClickService Software Ltd. Approved Executive Share Option Scheme ("the Scheme")
as they are amended from time to time. It is exercisable in accordance with the
performance conditions and the limitations on exercise contained in Part A and
Part B respectively of the Schedule (if any) to this Option Certificate and the
rules of the Scheme (and in particular Rule 7).

To exercise the Option the Optionholder should complete the Notice of Exercise.

The Option is not transferable.

EXECUTED AS A DEED by                   Director             ___________________
CLICKSERVICE SOFTWARE
LTD.
acting by:                              Secretary/Director   ___________________

I HEREBY AGREE to accept the grant of this Option and agree and undertake:

(1)   to be bound by their terms and conditions set out in the rules of the
      ClickService Software Ltd. Approved Executive Share Option Scheme and the
      terms and conditions of exercise set out in the Schedule to this Option
      Certificate;

(2)   that to the extent any tax liability falling within Rule 5.5 of the Scheme
      has not been deducted from my salary in the relevant month, or has
      otherwise been met by me, my employing company is authorised to make
      deductions from subsequent salary payments and to apply the amounts so
      deduced in reimbursing the person which has accounted for such liability;

(3)   to indemnify the Company and each company in the Group in respect of any
      liability falling within (2) above.

SIGNED but not delivered until the date hereof     )
AS A DEED by _________________________________     )
in the presence of:                                )
                                                  ______________________________
                                                   (Optionholder signature)
Witness signature:    ________________________________________
Witness name (print)  ________________________________________
Address:              ________________________________________
Occupation:           ________________________________________

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                                    SCHEDULE

                                     PART A
                             PERFORMANCE CONDITIONS

                                       15
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                                     PART B
                             LIMITATIONS ON EXERCISE

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                           CLICKSERVICE SOFTWARE LTD.
                     APPROVED EXECUTIVE SHARE OPTION SCHEME
                          NOTICE OF EXERCISE OF OPTION

To:  Company Secretary
     ClickService Software Ltd.

I hereby exercise the Option referred to overleaf in respect of
_______________________________ of the shares over which the Option may be
exercised, and request the allotment or transfer to me of those shares in
accordance with the rules of the Scheme and the Articles of Association of the
Company.

I enclose a cheque made payable to ClickService Software Ltd. in the sum of
$_______ being the aggregate Exercise Price of such shares.

Name (block letters)                             Signature
_______________________________________          _______________________________

Address
_______________________________________          Date __________________________
_______________________________________
_______________________________________

NOTES:

1.    This form must be accompanied by payment of the Exercise Price for the
      shares in respect of which the Option is exercised.

2.    The Option may not be exercised in respect of less than 100 shares or (if
      less) all of the shares over which the Option subsists.

3.    The Scheme has been approved by the Inland Revenue. There is no charge to
      income tax on the receipt of a right to acquire shares under such a
      scheme. Under current tax rules a charge to tax will arise on the exercise
      of the Option on the difference between the market value of the shares at
      the date of exercise and the price paid for them if the Option is
      exercised within 3 years of grant or of any previous exercise of options
      made under an approved scheme (other than a savings related share option
      scheme) which do not result in any income tax liability on exercise or at
      any time when this Scheme is not approved by the Board of Inland Revenue.
      Any exercise outside these time limits will not attract an income tax
      charge on exercise. You will be liable to capital gains tax on ultimate
      disposal of your Shares, subject to any available reliefs (e.g. the CGT
      annual exemption) whether or not you pay income tax on exercise of the
      Option. Any amount charged to income tax on the exercise of your Option
      will, however, form part of the base cost of your Shares for capital gains
      tax purposes. The above comments assume that the Scheme continues to be
      approved by the Inland Revenue.

4.    IMPORTANT the Company does not undertake to advise you on the tax
      consequences of exercising your Option. If you are unsure of the tax
      liabilities which may arise, you should take appropriate professional
      advice before exercising your Option.

                                       17<PAGE>   1
                                                                   EXHIBIT 10.15

                              EMPLOYMENT AGREEMENT

        This Employment Agreement is entered into as of July 4, 1999 (the
"Effective Date") by and between Plantronics, Inc., a Delaware corporation (the
"Company") and S. Kenneth Kannappan (the "Executive").

                                    RECITALS

        A. The Executive is currently employed by the Company.

        B. The Company and the Executive desire to enter into an agreement that
clarifies the rights and obligations of the Company and the Executive in
connection with Executive's employment with the Company and in the event that
the Executive's employment with the Company terminates under certain
circumstances.

                                    AGREEMENT

        NOW, THEREFORE, the parties agree as follows:

        1. Employment and Duties. During the Employment Period (defined in
paragraph 2 below), the Executive will serve as President and Chief Executive
Officer of the Company and such of the Company's other affiliates and
subsidiaries as the Board of Directors of the Company (the "Board") may from
time to time direct. The duties and responsibilities of the Executive shall
include the duties and responsibilities for the Executive's corporate offices
and positions as set forth in the Company's bylaws from time to time in effect
and such other duties and responsibilities as the Board may from time to time
reasonably assign to the Executive, in all cases to be consistent with the
Executive's corporate offices and positions. The Executive shall perform
faithfully the executive duties assigned to him to the best of his ability. The
Executive also serves as a member of the Board, and during the Employment Period
agrees to serve in such capacity without additional compensation. If the
Executive is elected or appointed as an officer or director of any of the
Company's affiliates or subsidiaries during the Employment Period, then he shall
also serve in such capacity or capacities but without additional compensation.

        2. Employment Period. The employment period (the "Employment Period")
shall begin upon the Effective Date and shall continue thereafter for an initial
term of one (1) year, unless sooner terminated in accordance with paragraph 10
below. After the initial one (1)-year Employment Period, or any extension term,
this Employment Agreement shall be automatically extended for additional one
(1)-year terms, unless sooner terminated in accordance with paragraph 10 below
or unless either party provides written notice of non-renewal to the other at
least 90 days prior to the end of the then current term.

        3. Place of Employment. The Executive's services shall be performed at
the Company's principal executive offices in Santa Cruz, California. The parties
acknowledge, however, that the Executive may be required to travel in connection
with the performance of his duties hereunder.

<PAGE>   2

        4. Base Salary and Profit Sharing. For all services to be rendered by
the Executive pursuant to this Agreement, the Company agrees to pay the
Executive during the Employment Period (a) a base salary (the "Base Salary") at
an annual rate of not less than $375,000 and (b) annual and quarterly profit
sharing in accordance with the Company's profit sharing program(s) as in effect
from time to time ("Profit Sharing"). The Base Salary and Profit Sharing shall
be paid in periodic installments in accordance with the Company's regular
payroll practices. The Company agrees to review the Base Salary at least
annually as of the payroll payment date nearest each anniversary of the
Effective Date (beginning in 2000), and to make such increases therein as the
Board may approve. The Company further agrees that if there are changes in the
Company's Profit Sharing programs that decrease the profit sharing component of
the Executive's total compensation, the Base Salary shall be adjusted upward to
ensure that the sum of Base Salary plus Profit Sharing remains substantially the
same.

        5. Incentive Bonus. Beginning with the Company's current fiscal year and
for each fiscal year thereafter during the Employment Period, the Executive will
be eligible to receive quarterly Regular and annual Supplemental bonuses
(together, the "Incentive Bonus") based upon certain financial criteria set by
the Board, including revenue and profitability targets and other organizational
milestones. The quarterly Incentive Bonus will provide a maximum annual bonus
opportunity of up to 35% of the Executive's Base Salary and the annual Incentive
Bonus will provide an annual bonus opportunity of up to an additional 65% of the
Executive's Base Salary. The Incentive Bonus payable hereunder shall be payable
consistent with the Company's past practices and policies.

        6. Expenses. The Executive shall be entitled to prompt reimbursement by
the Company for all reasonable ordinary and necessary travel, entertainment and
other expenses incurred by the Executive during the Employment Period (in
accordance with the policies and procedures established by the Company for its
senior executive officers) in the performance of his duties and responsibilities
under this Agreement, provided that the Executive shall properly account for
such expenses in accordance with Company policies and procedures.

        7. Other Benefits. During the Employment Period, the Executive shall be
entitled to all of the fringe benefit programs that the Company and its
subsidiaries make available to senior officers in accordance with the terms and
conditions of such programs.

        8. Vacations and Holidays. The Executive shall be entitled to paid
vacations and holidays in accordance with the Company's policies in effect from
time to time for its senior executive officers. The Executive shall be entitled
to accrue into the following year vacation unused in a given year, provided that
the total vacation balance at any time shall not be twice the annual vacation
allowance. Notwithstanding the foregoing limitation on the total vacation
balance, the Executive shall be entitled to retain the additional four (4) weeks
of vacation time accrued and unused in the Company's fiscal year 1999 (the "1999
Vacation Balance"). During the term of this Agreement, the Executive may draw
against the 1999 Vacation Balance, provided that the Executive may not take more
than two (2) weeks of the 1999 Vacation Balance in any single fiscal year.

        9. Other Activities. The Executive shall devote substantially all of his
working time and efforts during the Company's normal business hours to the
business and affairs of the Company and

                                      -2-
<PAGE>   3

its subsidiaries and to the diligent and faithful performance of the duties and
responsibilities duly assigned to him pursuant to this Agreement, except for
vacations, holidays and sickness. However, the Executive may devote a reasonable
amount of his time to civic, community or charitable activities and, with the
prior written approval of the Board, to serve as director of other corporations,
provided that such activities do not materially interfere with the Executive's
obligations hereunder (except that the Executive shall in any event be permitted
to continue serving on the board of directors of Mattson Technology, Inc.)

        10.    Severance Benefits.

               (a) Termination. If the Executive's employment terminates as a
result of Involuntary Termination (other than for Cause), or if the Executive's
employment terminates by reason of the Executive's voluntary resignation on or
after July 4, 2002, then the Executive shall, for the period of twenty-four (24)
months following the Termination Date (the "Severance Payment Period") be
entitled to (i) continued cash compensation payments equal to seventy-five
percent (75%) of the average of the cash compensation earned in the four (4)
full fiscal quarters immediately preceding the Termination Date and (ii) the
continued provision of "Company Benefits," including "Medical Benefits" (as
defined in paragraph 11(c)). "Cash compensation" as used in this paragraph shall
mean Base Salary, profit sharing, and Incentive Bonus earned in the applicable
four fiscal quarters, even if the amounts are paid in subsequent periods. The
cash compensation shall be payable at the same time(s) as payable to employees
of the Company.

               (b) Such payments and the provision of Company Benefits shall be
discontinued upon a breach by the Executive of his obligations under paragraphs
12 or 13 hereof. If the Executive is terminated for Cause, or if the Executive
voluntarily resigns prior to July 4, 2002, then the Executive shall not be
entitled to receive severance or other benefits under this Agreement, but will
be entitled to receive benefits (if any) as may then be established under the
Company's then existing severance and benefits plans and policies at the time of
such termination for similar types of terminations.

               (c) Death/Disability. In the event the Executive's employment
with the Company terminates by reason of the Executive's death or Disability,
the Company shall be obligated as follows:

                          (i) Death. If the Executive's employment with the
Company terminates by reason of the Executive's death, then the Company shall be
obligated to pay to the beneficiary or beneficiaries designated by the Executive
to the Company in writing or, absent such designation, to the representative of
the Executive's estate the amounts set forth in paragraph 10(a), provided,
however, that the Company's obligation under paragraph 10(a) to pay Company
Benefits shall be reduced to the extent of any life insurance proceeds payable
for the Executive's benefit under any Company benefit plan or program.

                          (ii) Disability. If the Executive's employment with
the Company terminates by reason of the Executive's Disability, then the
Executive shall be entitled to payment of the amounts set forth in paragraph
10(a), provided, however, that the Company's obligation under paragraph 10(a) to
pay Company Benefits shall be reduced, during the period of continuation of cash

                                      -3-
<PAGE>   4

compensation and Company Benefits, to the extent of any disability benefits
payable to or for the benefit of the Executive under any Company benefit plan or
program.

               (d) Options. In the event of a Change of Control or termination
of the Executive's employment, the unvested stock options held by the Executive
shall be affected as follows:

                          (i) Change in Control. In the event of a Change of
Control, then the unvested portion of any Company common stock or options to
acquire Company common stock held by the Executive on the Termination Date shall
automatically be accelerated and the Executive shall become fully vested in such
common stock and/or shall have the right to exercise all or any portion of such
option to acquire common stock, in addition to any portion of the option
exercisable prior to such termination.

                          (ii) Involuntary Termination, Death or Disability. If
the Executive's employment terminates as a result of Involuntary Termination
(other than for Cause), or terminates under circumstances described in paragraph
10(b), then that portion of any outstanding stock options which would vest had
employment continued for the next succeeding eighteen (18) months shall
automatically be accelerated and the Executive shall become fully vested in such
common stock and/or shall have the right to exercise all or any portion of such
option to acquire common stock, in addition to any portion of the option
exercisable prior to such termination.

                          (iii) Voluntary Resignation after July 4, 2002. If the
Executive's employment terminates by reason of the Executive's voluntary
resignation on or after July 4, 2002, then that portion of any outstanding stock
options which would vest had employment continued for the next succeeding twelve
(12) months shall automatically be accelerated and the Executive shall become
fully vested in such common stock and/or shall have the right to exercise all or
any portion of such option to acquire common stock, in addition to any portion
of the option exercisable prior to such termination.

                          (iv) Termination for Cause. In the event of a
termination of the Executive's employment for Cause, all unvested stock options
shall terminate upon the Termination Date.

        11. Definition of Terms. The following terms referred to in this
Agreement shall have the following meanings:

               (a) Cause. "Cause" shall mean the Executive's (i) conviction of a
felony, act of fraud against, or the misappropriation of property belonging to
the Company, (ii) willful misconduct that is demonstrably and materially
injurious to the Company, or (iii) continued material violations of his
obligation under the Employee Agreement (defined in paragraph 12) or under
paragraphs 1, 9 or 13 of this Agreement after there has been delivered to the
Executive a written demand for performance from the Company that describes such
violations.

                                      -4-
<PAGE>   5

               (b) Change of Control. "Change of Control" shall mean the
occurrence of any of the following events:

                          (i) Any "person" (as such term is used in Paragraphs
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) other than
Citicorp Venture Capital Ltd. and each of its affiliates becomes the "beneficial
owner" (as defined in Rule 13d-3 under said Act), directly or indirectly, of
securities of the Company representing forty percent (40%) or more of the total
voting power represented by the Company's then outstanding voting securities; or

                          (ii) A change in the composition of the Board
occurring within a two (2)-year period as a result of which fewer than a
majority of the Directors are Incumbent Directors (as hereinafter defined),
except as the result of temporary vacancies caused by an Incumbent Director's
voluntary resignation, death or disability. "Incumbent Directors" shall mean
directors who (A) are directors of the Company as of July 4, 1999, or (B) are
elected, or nominated for election, to the Board to replace a current Director
with the affirmative votes of at least fifty percent (50%) of the then Incumbent
Directors at the time of such election or nomination (but shall not include an
individual whose election or nomination is in connection with an actual or
threatened proxy contest relating to the election of directors to the Company);
or

                          (iii) A merger or consolidation of the Company with
any other corporation, other than a merger or consolidation that would result in
the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) at least seventy percent (70%)
of the total voting power represented by the voting securities of the Company or
such surviving entity outstanding immediately after such merger or
consolidation, or the stockholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the
Company of all or substantially all of the Company's assets; or

                          (iv) Upon the occurrence of any of the following
events: (A) the Company commences a voluntary case under Title XI of the United
States Bankruptcy Code, as amended (the "Bankruptcy Code"); (B) an involuntary
case is commenced against the Company under the Bankruptcy Code and relief is
ordered against the Company, or the petition is controverted but is not
dismissed within sixty (60) days after the commencement of the case; (C) a
custodian is appointed for, or takes charge of, all or substantially all of the
property of the Company; (D) the Company commences any other judicial,
administrative or other governmental proceeding under any reorganization,
arrangement, readjustment of debt, relief of debtors, dissolution, insolvency,
liquidation or similar law of any jurisdiction (whether now or hereinafter in
effect) relating to the Company, or there is commenced by the Company any such
proceeding that remains undismissed for a period of sixty (60) days, or the
Company is adjudicated insolvent or bankrupt, or the Company fails to controvert
in a timely manner any such case of the Bankruptcy Code or any such proceeding,
or any order of relief or other order proving any such case or proceeding is
entered; (E) the Company by any act or failure to act indicates its consent to,
approval of or acquiescence in any such case or proceeding or the appointment of
any custodian or for it in any substantial part of its property or suffers any
such appointment to continue undischarged or staid for a period of sixty (60)
days; or (F) the Company makes a general assignment for the benefit of its
creditors.

                                      -5-
<PAGE>   6

               (c) Company Benefits. "Company Benefits" shall mean the Company's
Medical Benefits (defined below), its Automobile Expense Reimbursement Program,
and its disability, life or other group insurance benefits to the extent the
Executive is receiving such benefits immediately prior to the Termination Date,
or such comparable alternative benefits or payments as the Company may, in its
discretion, determine to be sufficient to satisfy its obligations to the
Executive under this Agreement. "Medical Benefits" shall mean the Group
Medical/Dental Plan and the Exec-U-Care Medical Reimbursement Insurance Program,
as currently in effect (as adjusted for all then current executives), or such
comparable alternative benefits or payments as the Company may, in its
discretion, determine to be sufficient to satisfy its obligations to the
Executive under this Agreement, provided that, for purposes of paragraphs 10(a)
and 10(b), the cost associated with the provision of such Medical Benefits in
the aggregate shall not exceed $13,000 in any fiscal year plus an annual
adjustment (as determined by the Board) to reflect increases in the costs of
such benefits starting at the end of fiscal year 2000.

               (d) Disability. "Disability" shall mean that the Executive has
been unable to perform his duties under this Agreement as the result of his
incapacity due to physical or mental illness, and such inability, at least 26
weeks after its commencement, is determined to be total and permanent by a
physician selected by the Company or its insurers. Termination resulting from
Disability may only be effected after at least thirty (30) days' written notice
by the Company of its intention to terminate the Executive's employment, which
notice may not be given until the Company has received the written determination
of a physician selected by the Company or its insurers that the inability of
Executive to perform his duties is total and permanent. In the event that the
Executive resumes the performance of substantially all of his duties hereunder
before the termination of his employment becomes effective, the notice of intent
to terminate shall automatically be deemed to have been revoked.

               (e) Involuntary Termination. "Involuntary Termination" shall mean
(i) without the Executive's express written consent, the assignment to the
Executive of any duties or the reduction of the Executive's duties, either of
which results in a significant diminution in the Executive's position or
responsibilities with the Company in effect immediately prior to such
assignment, or the removal of the Executive from such position and
responsibilities; (ii) without the Executive's express written consent, a
substantial reduction, without good business reasons, of the facilities and
perquisites (including office space and location) available to the Executive
immediately prior to such reduction; (iii) a reduction by the Company in the
Base Salary of the Executive as in effect immediately prior to such reduction;
(iv) a material reduction by the Company in the kind or level of employee
benefits to which the Executive is entitled immediately prior to such reduction
with the result that the Executive's overall benefits package is significantly
reduced; (v) the relocation of the Executive to a facility or a location more
than 25 miles from the Executive's then present location, without the
Executive's express written consent; (vi) any termination of the Executive's
employment by the Company that is not effected for death, Disability or for
Cause; (vii) the failure of the Company to obtain the assumption of this
Agreement by any successor; (viii) any material breach by the Company of any
material provision of this Agreement; (ix) any purported termination of the
Executive's employment by the Company that is not effected pursuant to a notice
of termination satisfying the requirements of paragraph 19 below, and for
purposes of this Agreement, no such purported termination shall be effective; or
(x) provision of notice of non-renewal or extension of the Employment Period as
provided for in paragraph 2 above.

                                      -6-
<PAGE>   7

               (f) Termination Date. "Termination Date" shall mean (i) if this
Agreement is terminated by the Company for Disability, thirty (30) days after
notice of termination (pursuant to paragraph 19) is given to the Executive
(provided that the Executive shall not have returned to the performance of his
duties on a full-time basis during such thirty (30)-day period), (ii) if the
Executive's employment is terminated by reason of the Executive's death, the
date of death, (iii) if the Agreement is terminated by the Executive, such date
as the Executive specifies in his notice of termination (pursuant to paragraph
19) to the Company, (iv) if the Agreement is terminated by either the Executive
or the Company in connection with a notice of non-renewal or extension of the
Employment Period as provided for in paragraph 2 above, the expiration of such
Period, or (v) if the Company terminates the Executive's employment, the date
specified by the Company in the notice of termination to the Executive (pursuant
to paragraph 19).

        12. Proprietary Information. During the Employment Period and
thereafter, the Executive agrees to comply with the Employee Patent, Secrecy and
Invention Agreement, which the Executive executed as of February 1, 1995 (the
"Employee Agreement"), which is incorporated herein by reference.

        13. Covenant Not to Compete or Solicit.

               (a) Non-Competition. The Executive agrees that for a period of
thirty-six (36) months following the Executive's termination of employment with
the Company for any reason (other than death), the Executive will not directly
or indirectly engage in (whether as an employee, consultant, proprietor,
partner, director or otherwise), or have any ownership interest in, or
participate in the financing, operation, management or control of, any person,
firm, corporation or business that engages in or (to the Executive's knowledge,
after due inquiry) intends to engage in, a "restricted business" (as defined
below).

               Ownership of (i) no more than one percent (1%) of the outstanding
voting stock of a publicly traded corporation, or (ii) any stock owned by the
Executive on the Effective Date, shall not constitute a violation of this
provision.

               (b) Non-Solicitation. The Executive agrees that for a period of
thirty-six (36) months following the Executive's termination of employment for
any reason (other than death), the Executive shall not (i) solicit, encourage or
take any other action that is intended to induce any other employee of the
Company to terminate his or her employment with the Company, or (ii) interfere
in any manner with the contractual or employment relationship between the
Company and any such employee of the Company.

                      The foregoing shall not prohibit any entity with which the
Executive may be affiliated from hiring a former employee of the Company.

               (c) World-wide. The parties acknowledge that the market for the
Company's products is world-wide, and that, in this market, products from any
nation compete with products from all other countries. Accordingly, the parties
agree that the provisions of this paragraph 13 shall apply to each of the states
and counties of the United States, including each county in California, and to
each country world-wide.

                                      -7-
<PAGE>   8

               (d) Severability. The parties intend that the covenants contained
in the preceding subparagraphs shall be construed as a series of separate
covenants, one for each county of California, each state of the Union, and each
country. Except for geographic coverage, each such separate covenant shall be
deemed identical in terms of the covenant contained in the preceding
subparagraphs. If, in any judicial proceeding, a court shall refuse to enforce
any of the separate covenants (or any part thereof) deemed included in said
subparagraphs, then such unenforceable covenant (or such part) shall be deemed
eliminated from this Agreement for the purpose of those proceedings to the
extent necessary to permit the remaining separate covenants (or portions
thereof) to be enforced. In the event the provisions of this paragraph 13 should
ever be deemed to exceed the time of geographic limitations, or the scope of
this covenant, permitted by applicable law, then such provisions shall be
reformed to the maximum time or geographic limitations, as the case may be,
permitted by applicable laws.

               (e) Restricted Business. For purposes of this Agreement,
"restricted business" shall mean any business that is engaged in or (to the
Executive's knowledge, after due inquiry) preparing to engage in the design,
manufacture, marketing, sale or distribution of communications headsets,
communications handsets, or related products, assemblies, subassemblies,
components, and the repair or refurbishment of same.

        14. Indemnification. In accordance with the Company's current
indemnification policies, the Company shall indemnify the Executive if the
Executive is or becomes a party or is threatened to be made a party to any
threatened or pending action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of the
Company) by reason of the fact that the Executive is or was a director, officer,
employee or agent of the Company, or any subsidiary of the Company, by reason of
any action or inaction on the part of the Executive while an officer or
director, against expenses (including attorneys' fees), judgments, fines and
amounts paid in settlement (if such settlement is approved in advance by the
Company, which approval shall not be unreasonably withheld) actually and
reasonably incurred by the Executive in connection with such action, suit or
proceeding if the Executive acted in good faith and in a manner the Executive
reasonably believed to be in or not opposed to the best interests of the
Company, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe the Executive's conduct was unlawful.

        15. Successors. The Company will require any successor (whether direct
or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. Failure of the Company to obtain such assumption agreement
prior to the effectiveness of any such succession shall entitle the Executive to
the benefits described in paragraph 10(a) of this Agreement, subject to the
terms and conditions therein.

        16.    Arbitration.

               (a) Agreement. The Company and the Executive agree that any
dispute or controversy arising out of, relating to, or in connection with this
Agreement, or the interpretation, validity, construction, performance, breach,
or termination thereof shall be settled by binding

                                      -8-
<PAGE>   9

arbitration, unless otherwise required by law, to be held in Santa Clara County,
California, in accordance with the National Rules for the Resolution of
Employment Disputes then in effect of the American Arbitration Association (the
"Rules"). The arbitrator may grant injunctions or other relief in such dispute
or controversy. The decision of the arbitrator shall be final, conclusive and
binding on the parties to the arbitration. Judgment may be entered on the
arbitrator's decision in any court having jurisdiction.

               (b) Governing Law. The arbitrators shall apply California law to
the merits of dispute or claim, without reference to rules of conflicts of law.
The Executive hereby expressly consents to the personal jurisdiction of the
state and federal courts located in California for any action or proceeding
arising form or relating to this Agreement or relating to any arbitration in
which the parties are participants.

               (c) Costs and Fees of Arbitration. The Executive shall pay the
initial arbitration filing (not to exceed $200.00), and the Company shall pay
the remaining costs and expenses of such arbitration (unless the Executive
requests that each party pay one-half of the costs and expenses of such
arbitration or unless otherwise required by law). The Company and the Executive
shall each pay separately its counsel fees and expenses unless otherwise
required by law.

               (d) Equitable Relief. The parties may apply to any court of
competent jurisdiction for a temporary restraining order, preliminary
injunction, or other interim or conservatory relief, as necessary, without
breach of this arbitration agreement and without abridgment of the powers of the
arbitrator.

               (e) Executive's Representation. THE EXECUTIVE HAS READ AND
UNDERSTANDS THIS PARAGRAPH, WHICH DISCUSSES ARBITRATION. THE EXECUTIVE
UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, HE AGREES TO SUBMIT ANY FUTURE
CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THE INTERPRETATION,
VALIDITY, CONSTRUCTION, PERFORMANCE OR BREACH OF THIS AGREEMENT, TO BINDING
ARBITRATION, UNLESS OTHERWISE REQUIRED BY LAW, AND THAT THIS ARBITRATION CLAUSE
CONSTITUTES A WAIVER OF HIS RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION
OF ALL DISPUTES RELATING TO THIS AGREEMENT.

        17. Absence of Conflict. The Executive represents and warrants that his
employment by the Company as described herein shall not conflict with and will
not be constrained by any prior employment or consulting agreement or
relationship.

        18. Assignment. This Agreement and all rights under this Agreement shall
be binding upon and inure to the benefit of and be enforceable by the parties
hereto and their respective personal or legal representatives, executors,
administrators. heirs, distributors, devisees, legatees, successors and assigns.
This Agreement is personal in nature, and neither of the parties to this
Agreement shall, without the written consent of the other, assign or transfer
this Agreement or any right or obligation under this Agreement to any other
person or entity, except that the Company may assign this Agreement to any of
its affiliates or wholly-owned subsidiaries or to any successor by merger,
provided that such assignment will not relieve the Company of its obligations
hereunder. If

                                      -9-
<PAGE>   10

the Executive should die while any amounts are still payable to him hereunder,
all such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to the Executive's devisee, legatee, or other
designee or, if there be no such designee, to the Executive's estate.

        19.    Notices.

               (a) General. For purposes of this Agreement, notices and other
communications provided for in this Agreement shall be in writing and shall be
delivered personally or sent by United States certified mail, return receipt
requested, postage prepaid, addressed as follows:

               If to the Executive:         S. Kenneth Kannappan
                                            c/o Plantronics, Inc.
                                            345 Encinal Street
                                            Santa Cruz, CA 95060

               If to the Company:           Plantronics, Inc.
                                            345 Encinal Street
                                            Santa Cruz, CA 95060
                                            Attn: General Counsel

or to such other address or the attention of such other person as the recipient
party has previously furnished to the other party in writing in accordance with
this paragraph. Such notices or other communications shall be effective upon
delivery or, if earlier, three days after they have been mailed as provided
above.

               (b) Notice of Termination. Any termination by the Company for
Disability or Cause, or by the Executive as a result of a voluntary resignation
or an Involuntary Termination, shall be communicated by a notice of termination
to the other party hereto given in accordance with paragraph 19(a) of this
Agreement. Such notice shall indicate the specific termination provision in this
Agreement relied upon, shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination under the provision so
indicated, and shall specify the termination date in accordance with paragraph
11(f). The failure by the Executive to include in the notice any fact or
circumstance that contributes to a showing of Involuntary Termination shall not
waive any right of the Executive hereunder or preclude the Executive from
asserting such fact or circumstance in enforcing his rights hereunder.

        20. Integration. This Agreement, the Employee Agreement dated March 27,
1997, the Executive's Indemnification Agreement also dated March 27, 1997, and
the respective option agreements governing the Executive's Company stock options
represent the entire agreement and understanding between the parties as to the
subject matter hereof and supersede all prior or contemporaneous agreements
whether written or oral. As of the Effective Date, the Employment Agreement
between the Company and the Executive dated as of March 27, 1997 only is
cancelled. No waiver, alteration or modification of any of the provisions of
this Agreement shall be binding unless in writing and signed by duly authorized
representatives of the parties hereto.

                                      -10-
<PAGE>   11

        21. Waiver. Failure or delay on the part of either party hereto to
enforce any right, power or privilege hereunder shall not be deemed to
constitute a waiver thereof. Additionally, a waiver by either party or a breach
of any promise hereof by the other party shall not operate as or be construed to
constitute a waiver of any subsequent waiver by such other party.

        22. Severability. Whenever possible, each provision of this Agreement
will be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but this Agreement will be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

        23. Headings. The headings of the paragraphs contained in this Agreement
are for reference purposes only and shall not in any way affect the meaning or
interpretation of any provision of this Agreement.

        24. Applicable Law. This Agreement shall be governed by and construed in
accordance with the internal substantive law, and not the choice of law rules,
of the State of California.

        25. Counterparts. This Agreement may be executed in one or more
counterparts, none of which need contain the signature of more than one party
hereto, and each of which shall be deemed to be an original, and all of which
together shall constitute a single agreement.

        IN WITNESS WHEREOF, each of the parties has executed this Agreement, in
the case of the Company by its duly authorized officer, as of the day and year
first above written.

                                        PLANTRONICS, INC.

                                        By:
                                           -------------------------------------

                                        Title:  Director

                                        EXECUTIVE:

                                        ----------------------------------------
                                        S. Kenneth Kannappan

                                      -11-

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