Document:

exv4w1

 

Exhibit 4.1

ADVANCED NEUROMODULATION SYSTEMS, INC.

2004 STOCK INCENTIVE PLAN

     1. Purpose of the Plan. This Plan shall be known as the Advanced Neuromodulation
Systems, Inc. 2004 Stock Incentive Plan. The purposes of the Plan are (i) to attract and retain
the best available directors, consultants and employees, and (ii) to provide incentives to such
directors, consultants and employees to promote the success of the business of Advanced
Neuromodulation Systems, Inc. and its subsidiaries.

     2. Definitions. As used herein, the following definitions shall apply:

     (a) “Agreement” means a written agreement between the Corporation and a Participant
evidencing the terms and conditions of an individual Award grant. Each Award Agreement
shall be subject to the terms and condition of the Plan.

     (b) “Award” means any Option or any Restricted Stock granted pursuant to the terms of
this Plan.

     (c) “Board” means the Board of Directors of the Corporation.

     (d) “Common Stock” means the Common Stock, $.05 par value per share, of the
Corporation. Except as otherwise provided herein, all Common Stock issued pursuant to the
Plan shall have the same rights as all other issued and outstanding shares of Common Stock,
including but not limited to voting rights, the right to dividends, if declared and paid,
and the right to pro rata distributions of the Corporation’s assets in the event of
liquidation.

     (e) “Committee” means the committee described in Section 18(a) that administers the
Plan.

     (f) “Consultant” means any consultant or advisor who renders bona fide services to the
Corporation or one of its Subsidiaries, which services are not in connection with the offer
or sale of securities in a capital-raising transaction.

     (g) “Corporation” means Advanced Neuromodulation Systems, Inc., a Texas corporation.

     (h) “Date of Grant” means the date on which an Award is granted pursuant to this Plan
or, if the Committee so determines, the date specified by the Committee as the date the
Award is to be effective.

     (i) “Director” means any director or clinical advisor of the corporation or one of its
Subsidiaries, but excluding any director or clinical advisor who is also an officer or
employee of the Corporation or one of its subsidiaries.

 

     (j) “Disability” means any medically determinable physical or mental impairment that,
in the opinion of the Committee, based upon medical reports and other evidence satisfactory
to the Committee, can reasonably be expected to prevent a Participant from performing
substantially all of the Participant’s customary duties or employment for a continuous
period of not less than 12 months so as to be disabled within the meaning of Section
22(a)(3) of the Code.

     (k) “Employee” means any employee of the Corporation or one of its Subsidiaries,
including any director who is also an officer or key employee of the Corporation or one of
its Subsidiaries.

     (l) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     (m) “Fair Market Value” means the closing sale price (or average of the quoted closing
bid and asked prices if there is no closing sale price reported) of the Common Stock on the
trading day immediately prior to the date specified as reported by The Nasdaq Stock Market
or by the principal national stock exchange on which the Common Stock is then listed. If
there is no reported price information for the Common Stock, the Fair Market Value will be
determined by the Committee, in its sole discretion. In making such determination, the
Committee may, but shall not be obligated to, commission and rely upon an independent
appraisal of the Common Stock.

     (n) “Non-Employee Director” means an individual who is a “non-employee director” as
defined in Rule 16b-3 under the Exchange Act and also an “outside director” within the
meaning of Treasury Regulation § 1.162-27(e)(3).

     (o) “Option” means a stock option granted pursuant to Section 6 of this Plan.

     (p) “Optionee” means any Employee who receives an Option.

     (q) “Participant” means any Employee, Consultant, or Director who receives an Award.

     (r) “Plan” means this Advanced Neuromodulation Systems, Inc. 2004 Stock Incentive Plan,
as amended from time to time.

     (s) “Qualified Option” means any Option that is intended to qualify as an “incentive
stock option” within the meaning of Section 422 of the Code. The Committee shall cause each
Option granted hereunder to be clearly designated in the Option Agreement, at the time of
grant, as to whether or not it is intended to be a Qualified Option.

     (t) “Restricted Stock” means Common Stock awarded to an Employee, Consultant or
Director pursuant to Section 6 of this Plan.

     (u) “Restricted Stock Distribution” means any amounts, whether stock, cash, or other
property (other than regular cash dividends) paid or distributed by the Corporation with
respect to Restricted Stock during the period that Restricted Stock is

 

nontransferable and subject to a substantial risk of forfeiture within the meaning of
Section 83(a)(1) of the Code because it is unvested pursuant to Section 9 of the Plan.

     (v) “Rule 16b-3” means Rule 16b-3 of the rules and regulations under the Exchange Act,
as Rule 16b-3 may be amended from time to time, and any successor provisions to Rule 16b-3
under the Exchange Act.

     (w) “Subsidiary” means any now existing or hereinafter organized or acquired company of
which more than fifty percent (50%) of the issued and outstanding voting stock is owned or
controlled directly or indirectly by the Corporation or through one or more Subsidiaries of
the Corporation.

     3. Term of Plan. The Board adopted this Plan on February 18, 2004, and it shall be
effective upon obtaining shareholder approval as described below. To permit the granting of Awards
under the Code, and to qualify the Awards hereunder as “performance based” under Section 162(m) of
the Code, the Plan will be submitted for approval by the shareholders of the Corporation. The
affirmative vote of more than 50% of the shares of the Corporation’s common stock entitled to vote,
present in person or represented by proxy, at a meeting of shareholders is required for approval.
The Plan will continue in effect until terminated pursuant to Section 18(a).

     4. Shares Subject to the Plan. Except as otherwise provided in Section 18 hereof, the
aggregate number of shares of Common Stock issuable upon the exercise of Options or upon the grant
of Restricted Stock pursuant to this Plan shall be 1,000,000 shares. Shares issuable upon the
exercise of Options or upon the grant of Restricted Stock may either be authorized but unissued
shares or treasury shares. The Corporation shall, during the term of this Plan, reserve and keep
available a number of shares of Common Stock sufficient to satisfy the requirements of the Plan.
If an Option should expire or become unexercisable for any reason without having been exercised in
full or if Restricted Stock is forfeited, then the shares that were subject thereto shall, unless
the Plan shall have terminated, become immediately available for the grant of additional Options or
Restricted Stock under this Plan, subject to the limitations and adjustments set forth above. In
addition, for purposes of calculating the aggregate number of shares that may be issued under this
Plan, only the net shares issued (including the shares, if any, withheld for tax withholding
requirements) shall be counted when shares of Common Stock are used as full or partial payment for
shares issued upon exercise of a Award. If permitted by the Corporation pursuant to Section 10,
shares tendered by a Participant as payment for shares issued upon such exercise shall be available
for reissuance under the Plan.

     5. Eligibility. Qualified Options may be granted under Section 6 of the Plan to
Employees of the Corporation or its Subsidiaries who are officers or other key employees as may be
determined by the Board or the Committee. Nonqualified Options may be granted under Section 6 of
the Plan to such Employees, Consultants, and Directors of the Corporation or its Subsidiaries as
may be determined by the Board or the Committee. Restricted Stock may be granted under Section 6
of the Plan to such Employees, Consultants, and Directors of the Corporation or its Subsidiaries as
may be determined by the Board or the Committee. Subject to the limitations and qualifications set
forth in this Plan, the Board or the Committee shall also determine the number of Options or shares
of Restricted Stock to be granted, the number of

 

shares subject to each Option or Restricted Stock grant, the exercise price or prices of each
Award, the vesting and exercise period of each Option and the vesting and/or forfeiture provisions
relating to Restricted Stock, whether an Option may be exercised as to less than all of the Common
Stock subject thereto, and such other terms and conditions of each Option or grant of Restricted
Stock, if any, as are consistent with the provisions of this Plan. In connection with the granting
of Qualified Options, the aggregate Fair Market Value (determined at the Date of Grant of a
Qualified Option) of the shares with respect to which Qualified Options are exercisable for the
first time by an Optionee during any calendar year (under all such plans of the Optionee’s employer
corporation and its parent and subsidiary corporations as defined in Section 424(e) and (f) of the
Code, or a corporation or a parent or subsidiary corporation of such corporation issuing or
assuming an Option in a transaction to which Section 424(a) of the Code applies (collectively, such
corporations described in this sentence are hereinafter referred to as “Related Corporations”))
shall not exceed $100,000 or such other amount as from time to time provided in Section 422(d) of
the Code or any successor provision.

     6. Grant of Options and Restricted Stock. Unless the Plan is suspended or terminated
as provided in Section 18(c), the Committee shall determine the number of shares of Common Stock to
be offered from time to time pursuant to Options and Restricted Stock granted hereunder and shall
grant said Options and awards of Restricted Stock under the Plan. The grant of said Awards shall
be evidenced by Option Agreements and Restricted Stock Agreements containing such terms and
provisions as are approved by the Committee and executed on behalf of the Corporation by an
appropriate officer. In connection with the granting of any Awards under the Plan, the aggregate
number of shares of Common Stock with respect to which Awards may be granted to any single Employee
in any one calendar year will not exceed 1,000,000. Solely for this purpose, Awards that lapse or
are cancelled continue to count against this calendar year limit. Notwithstanding the foregoing,
the Committee is authorized to grant Options and Restricted Stock so long as each grant is subject
to a vesting schedule of at least three years (no more than one-third of the shares subject to the
grant may vest sooner than over a period of at least three years), and no installment may vest
prior to one year’s employment or service. The only exception to this limitation is that up to 10%
of the shares of Common Stock reserved for issuance pursuant to this Plan may be granted outside
the terms of that limitation for grants to a person not previously employed by the Company as an
inducement essential to the individual’s joining the Company, a consultant whose consulting
agreement has a term less than three years, or similar extraordinary circumstances in the
Committee’s discretion exercised in good faith.

     7. Time of Grant of Awards. The date of grant of an Award under the Plan shall be the
date on which the Committee awards the Option or Restricted Stock or, if the Committee so
determines, the date specified by the Board or Committee as the date the award is to be effective.
Notice of the grant shall be given to each Participant to whom an Award is granted promptly after
the date of such grant.

     8. Price. The exercise price for any Award (the “Exercise Price”) granted pursuant to
Section 6 of the Plan shall be determined by the Committee at the Date of Grant; provided, however
that (a) the Exercise Price for any Option will not be less than 100% of the Fair Market Value of
the Common Stock at the Date of Grant, and (b) if an Optionee owns on the Date of Grant more than
10 percent of the total combined voting power of all classes of stock of the Corporation or its
parent or any of its subsidiaries, as more fully described in Section 422(b)(6)

 

of the Code or any successor provision (such shareholder is referred to herein as a
“10-Percent Shareholder”), the Exercise Price for any Qualified Option Granted to such Optionee
will not be less than 110% of the Fair Market Value of the Common Stock at the Date of Grant.

     9. Vesting. Subject to Section 11 of this Plan, each Award under the Plan shall vest
and become exercisable (in the case of Options) or nonforfeitable (in the case of Restricted Stock
shares) in accordance with the provisions set forth in the applicable Option Agreement or
Restricted Stock Agreement. The Committee may, but shall not be required to, permit acceleration
of vesting or the accelerated lapse of any forfeiture provisions of an Award upon any sale of the
Corporation or similar transaction. In exercising this discretion, the Committee may specifically
consider whether the acceleration of vesting or the accelerated lapse of any forfeiture provisions
of an Award hereunder upon a change of control of the Corporation causes an “excess parachute
payment” (as defined in Section 280G of the Code) to occur. In the event that the Committee
determines that such an excess parachute payment would result if acceleration occurred (when added
to any other payments or benefits contingent on a change of control under any other agreements,
arrangements, or plans) then the number of shares as to which exercisability is accelerated may be
reduced so that total parachute payments do not exceed 299% of the Optionee’s “base amount” as
defined in Section 280G(b)(3) of the Code. A Participant’s Option Agreement or Restricted Stock
Agreement may contain such additional provisions with respect to vesting or the lapse of any
forfeiture provision as the Committee may specify.

     10. Award Exercise. A Participant may pay the Exercise Price of the shares of Common
Stock as to which an Award is being exercised by the delivery of (a) cash, (b) check, (c) in the
Corporation’s sole discretion, by the delivery of shares of Common Stock having a Fair Market Value
on the date immediately preceding the exercise date equal to the Exercise Price and have been held
by the Participant at least six (6) months prior to the date of exercise, or (d) at the
Corporation’s option, any other consideration that the Corporation determines is consistent with
the Plan’s purpose and applicable law. If the shares to be purchased are covered by an effective
registration statement under the Securities Act of 1933, as amended, any Award granted under the
Plan may be exercised by a broker-dealer acting on behalf of a Participant if (i) the broker-dealer
has received from the Participant or the Corporation a fully- and duly-endorsed agreement
evidencing such Award, together with instructions signed by the Participant requesting the
Corporation to deliver the shares of Common Stock subject to such Award to the broker-dealer on
behalf of the Participant and specifying the account into which such shares should be deposited,
(ii) adequate provision has been made with respect to the payment of any withholding taxes due upon
such exercise, and (iii) the broker-dealer and the Participant have otherwise complied with Section
220.3(e)(4) of Regulation T, 12 CFR Part 220, or any successor provision.

     11. When Qualified Options may be Exercised. No Qualified Option shall be exercisable
at any time after the expiration of ten (10) years from the Date of Grant; provided, however, that
if the Optionee with respect to a Qualified Option is a 10-Percent Stockholder on the Date of Grant
of such Qualified Option, then such Option shall not be exercisable after the expiration of five
(5) years from its Date of Grant. Upon the death of an Optionee, any vested Qualified Option
exercisable on the date of death may be exercised by the Optionee’s estate or by a person who
acquires the right to exercise such Qualified Option by bequest or inheritance or

 

by reason of the death of the Optionee, provided that such exercise occurs within both the
remaining option term of the Qualified Option and twelve months after the date of the Optionee’s
death. This Section 11 only provides the outer limits of allowable exercise dates with respect to
Qualified Options; the Board or the Committee may determine that the exercise period for a
Qualified Option shall have a shorter duration than as specified above.

     12. Issuance of Restricted Stock Shares. Until the Restricted Stock is vested, the
certificates representing the Restricted Stock and any Restricted Stock Distributions, shall be
registered in the Participant’s name and bear a restrictive legend disclosing the restrictions, the
existence of the Plan, and the existence of the applicable agreement granting such Restricted
Stock. Such certificates shall be deposited by the Participant with the Corporation, together with
stock powers or other instruments of assignments, each endorsed in blank, which will permit the
transfer to the Corporation of all or any portion of the Restricted Stock and any assets
constituting Restricted Stock Distributions, which shall be forfeited in accordance with the
applicable agreements granting such Restricted Stock. Restricted Stock shall constitute issued and
outstanding Common Stock for all corporate purposes and the Participant shall have all rights,
powers and privileges of a holder of unrestricted shares except that the Participant will not be
entitled to delivery of the stock certificates until all restrictions have terminated, and the
Corporation will retain custody of all related Restricted Share Distributions (which will be
subject to the same restrictions, terms, and conditions as the related Restricted Stock) until the
restrictions lapse with respect to the corresponding Restricted Shares; and provided, further, that
any Restricted Share Distribution shall not bear interest or be segregated into a separate account
but shall remain a general asset of the Corporation, subject to the claims of the Corporation’s
creditors, until the lapse of the transferability and forfeiture restrictions; and provided,
finally, that any material breach of any terms of the agreement granting the Restricted Stock, as
reasonably determined by the Committee will cause a forfeiture of both Restricted Stock and
Restricted Stock Distributions.

     13. Withholding of Taxes. The Committee shall make such provisions and take such
steps as it may deem necessary or appropriate for the withholding of any taxes that the Corporation
is required by any law or regulation of any governmental authority to withhold in connection with
any Award including, but not limited to, (a) withholding the issuance of all or any portion of the
shares of Common Stock subject to such Award until the Participant reimburses the Corporation for
the amount it is required to withhold with respect to such taxes, (b) withholding any portion of
such issuance in an amount sufficient to reimburse the Corporation for the amount of taxes it is
required to withhold, provided, however, that no shares of Common Stock are withheld with a value
exceeding the minimum amount of tax required to be withheld by law, (c) allowing the Participant to
deliver Common Stock as payment for the amount the Corporation is required to withhold for taxes or
(d) taking any other action reasonably required to satisfy the Corporation’s withholding
obligation.

     14. Conditions Upon Issuance of Shares.

     (a) The Corporation shall not be obligated to sell or issue any shares upon the
exercise of any Award granted under the Plan unless the issuance and delivery of shares
comply with all provisions of applicable federal and state securities laws and the

 

requirements of The Nasdaq Stock Market or any stock exchange upon which shares of the
Common Stock may then be listed.

     (b) As a condition to the exercise of an Option or the grant of Restricted Stock, the
Corporation may require the person exercising the Option or receiving the grant of
Restricted Stock to make such representations and warranties as may be necessary to assure
the availability of an exemption from the registration requirements of applicable federal
and state securities laws.

     (c) The Corporation shall not be liable for refusing to sell or issue any shares
covered by any Option or for refusing to issue any Restricted Stock if the Corporation
cannot obtain authority from the appropriate regulatory bodies deemed by the Corporation to
be necessary to sell or issue such shares in compliance with all applicable federal and
state securities laws and the requirements of The Nasdaq Stock Market or any stock exchange
upon which shares of the Common Stock may then be listed. In addition, the Corporation shall
have no obligation to any Participant, express or implied, to list, register or otherwise
qualify the shares of Common Stock covered by any Option or Restricted Stock.

     (d) No Participant will be, or will be deemed to be, a holder of any Common Stock
subject to an Option unless and until such Participant has exercised his or her Option and
paid the purchase price for the subject shares of Common Stock.

     15. Restrictions on Transfer.

     (a) Each Qualified Option under this Plan shall be transferable only by will or the
laws of descent and distribution and shall be exercisable during Participant’s lifetime only
by such Participant. Each nonqualified Option under this Plan shall be transferable only by
will, the laws of descent and distribution, pursuant to a domestic relations order issued by
a court of competent jurisdiction, or to a trust established by the Participant for estate
planning purposes.

     (b) Non-vested shares of Restricted Stock issued pursuant to the Plan shall be
nontransferable except by will or the laws of descent and distribution until, and only to
the extent that, such shares become vested in accordance with Section 9 of the Plan.

     (c) Shares of Common Stock issued pursuant to any Award under the Plan may be subject
to restrictions on transfer under applicable federal and state securities laws. The
Committee may impose such additional restrictions on the ownership and transfer of shares of
Common Stock issued pursuant to the Plan as it deems desirable; any such restrictions shall
be set forth in any Option Agreement or Restricted Stock Agreement entered into hereunder.

     16. Modification of Plan and Agreements.

     (a) The Committee may from time to time and at any time alter, amend, suspend,
discontinue or terminate this Plan; provided, however, that no such action of the Committee
may, without approval of the shareholders of the Corporation, (i) increase the

 

maximum number of shares of Common Stock that may be subject to Qualified Options under
the Plan (except as provided in Section 18 of this Plan), (ii) change the class of
individuals eligible to receive Qualified Options pursuant to this Plan, (iii) change the
calendar year annual limit on the number of shares of Common Stock granted to a Participant
in Section 6 above, or (iv) make any changes that requires shareholder approval under
applicable law or The Nasdaq Stock Market rules or other exchange on which the Corporation’s
securities are traded.

     (b) Except as set forth below, at any time and from time to time, the Committee may
modify an outstanding Award. However, the Committee may not, without obtaining prior
shareholder approval, “reprice” an outstanding Award by lowering the exercise price of the
Award, canceling the outstanding Award and issuing or exchanging a replacement or substitute
Award, or taking other actions that would be treated as a “repricing” under generally
accepted accounting principles, unless such repricing is done in connection with an event
described in Section 17 of this Plan to prevent dilution or diminishment of rights.
Additionally, the Committee may not modify an outstanding Award without the prior approval
of the holder of the Award, if such modification would impair the Award. Notwithstanding
the foregoing, the Committee may, without the option holder’s consent, increase the exercise
price of a Qualified Option if necessary to maintain such Option’s qualified status, or to
convert any Qualified Option into a Nonqualified Option.

     17. Effect of Change in Stock Subject to the Plan. In the event that each of the
outstanding shares of Common Stock (other than shares held by dissenting shareholders) shall be
changed into or exchanged for a different number or kind of shares of stock of the Corporation or
of another corporation (whether by reason of merger, consolidation, recapitalization,
reclassification, split-up, combination of shares or otherwise), or in the event a stock split or
stock dividend occurs, then the Corporation may either (a) substitute for each share of Common
Stock then subject to Options or Restricted Stock awards or available for Options or Restricted
Stock awards under Section 4 of the Plan the number and kind of shares of stock into which each
outstanding share of Common Stock (other than shares held by dissenting shareholders) shall be so
changed or exchanged, or the number of shares of Common Stock as is equitably required in the event
of a stock split or stock dividend, together with an appropriate adjustment of the Exercise Price.
The Committee may, but shall not be required to, provide additional anti-dilution protection to a
Participant under the terms of the Participant’s Option Agreement or Restricted Stock Agreement.

     18. Administration.

     (a) Notwithstanding anything to the contrary herein, to the extent necessary to comply
with the requirements of Rule 16b-3, the Plan shall be administered by the Stock Option
Committee approved by the Board, which shall be a committee comprised solely of two or more
Non-Employee Directors appointed by the Board (the group responsible for administering the
Plan is referred to as the “Committee”). Awards may be granted under Section 6 only by
majority agreement of the members of the Committee. Option Agreements and Restricted Stock
Agreements, in the form as approved by the Committee, and containing such terms and
conditions consistent with the provisions of

 

this Plan as are determined by the Committee, may be executed on behalf of the
Corporation by the Chairman of the Board, the President or any Vice President of the
Corporation. The Committee shall have complete authority to construe, interpret and
administer the provisions of this Plan and the provisions of the Option Agreements and
Restricted Stock Agreements granted hereunder; to prescribe, amend and rescind rules and
regulations pertaining to this Plan; to suspend, discontinue or terminate this Plan; and to
make all other determinations necessary or deemed advisable in the administration of the
Plan. The determinations, interpretations and constructions made by the Committee shall be
final and conclusive. No member of the Committee shall be liable for any action taken, or
failed to be taken, made in good faith relating to the Plan or any award thereunder, and the
members of the Committee shall be entitled to indemnification and reimbursement by the
Corporation in respect of any claim, loss, damage or expense (including attorneys’ fees)
arising there from such action or inaction to the fullest extent permitted by law.

     (b) The Board shall specify the Members of the Committee, and the Committee shall
consist solely of Non-Employee Directors. Non-Employee Directors may not possess an interest
in any transaction for which disclosure is required under Section 404(a) of Regulation S-K
under the Exchange Act or be engaged in a business relationship that must be disclosed under
Section 404(a) and must qualify as ‘outside directors’ as defined in Section 162(m) of the
Code and regulations thereunder.

     (c) Although the Board or the Committee may suspend or discontinue the Plan at any
time, all Qualified Options must be granted within ten (10) years from the effective date of
the Plan or the date the Plan is approved by the stockholders of the Corporation, whichever
is earlier.

     19. Termination of Employment.

     (a) Unless otherwise provided in the terms of an Option Agreement or a Restricted Stock
Agreement, as the case may be, of this Plan, the provisions of this Section 19 shall govern
all Awards made pursuant to Section 6 of this Plan.

     (b) Upon termination of a Participant’s employment with the Corporation or its
Subsidiaries or termination of a Participant’s service as a Director or a Consultant for the
Corporation or one of its Subsidiaries for any reason other than death or Disability, the
non-vested portion of any and all outstanding Options of such Participant shall expire and
the vested portion of any and all outstanding Options shall remain exercisable for three (3)
months following the date such Participant terminates employment or service. Upon
termination of a Participant’s employment by reason of death or Disability, the non-vested
portion of any and all outstanding Options of such Participant shall expire and the vested
portion of any and all outstanding Options shall remain exercisable for one year following
the date such Participant terminates employment or service.

     (c) Upon termination of a Participant’s employment with the Corporation or its
Subsidiaries or termination of a Participant’s service as a Director or a Consultant for

 

the Corporation or one of its Subsidiaries for any reason, including death or
Disability, all non-vested shares of Restricted Stock of such Participant shall be
forfeited.

     (d) The right of the Participant to receive any benefits from the Company or any of its
Subsidiaries after termination of employment with the Company or any of its Subsidiaries by
reason of employment contract, severance arrangement or otherwise shall not affect the
determination that a Participant’s employment has been terminated with the Company or any of
its Subsidiaries for purposes of this Plan. Neither the adoption of this Plan nor the grant
of an Award to an eligible person shall alter in any way the Company’s or the relevant
Subsidiary’s rights to terminate such person’s employment or directorship at any time with
or without cause nor does it confer upon such person any rights or privileges to continued
employment, or any other rights and privileges, except as specifically provided in the Plan.

     20. Continued Employment Not Presumed. Nothing in this Plan or any document
describing it nor the grant of any Award shall give any Participant the right to continue in the
employment of the Corporation or affect the right of the Corporation to terminate the employment of
any such person with or without cause.

     21. Liability of the Corporation. Neither the Corporation, its directors, officers or
employees or the Committee, nor any Subsidiary which is in existence or hereafter comes into
existence, shall be liable to any Participant or other person if it is determined for any reason by
the Internal Revenue Service or any court having jurisdiction that any Qualified Option granted
hereunder does not qualify for tax treatment as an incentive stock option under Section 422 of the
Code.

     22. Governing Law. The Plan shall be governed by and construed in accordance with the
laws of State of Texas and the United States, as applicable, without reference to the conflict of
laws provisions thereof.

     23. Severability of Provisions. If any provision of this Plan is determined to be
invalid, illegal or unenforceable, such invalidity, illegality or unenforceability shall not affect
the remaining provisions of the Plan, but such invalid, illegal or unenforceable provision shall be
fully severable, and the Plan shall be construed and enforced as if such provision had never been
inserted herein.

     24. Notices. Whenever any notice is required or permitted hereunder, such notice must
be in writing and personally delivered or sent by mail. Any notice required or permitted to be
delivered hereunder shall be deemed to be delivered on the date which it is personally delivered,
or, whether actually received or not, on the third business day after it is deposited in the United
States mail, certified or registered, postage prepaid, addressed to the person who is to receive it
at the address which such person has theretofore specified by written notice delivered in
accordance herewith. The Company or a Participant may change, at any time and from time to time,
by written notice to the other, the address that it or he had theretofore specified for receiving
notices. Until changed in accordance herewith, the Company and each Participant shall specify as
its and his address for receiving notices the address set forth in the Award Agreement pertaining
to the shares to which such notice relate.exv10w2

 

Exhibit 10.2

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (“Agreement”) is effective as of DATE, by and between
Plantronics, Inc., a Delaware corporation (“Plantronics”), and NAME (“Indemnitee”).

     WHEREAS, Plantronics desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve Plantronics and, in part, in order to induce Indemnitee
to continue to provide services to Plantronics, wishes to provide for the indemnification and
advancing of expenses to Indemnitee to the maximum extent permitted by law.

     NOW, THEREFORE, Plantronics and Indemnitee hereby agree as follows:

	1.  	Indemnification.

	 	(a)  	Indemnification of Expenses. Plantronics shall indemnify Indemnitee to
the fullest extent permitted by law if Indemnitee was or is or becomes a party to or
witness or other participant in, or is threatened to be made a party to or witness or
other participant in, any threatened, pending or completed action, suit, proceeding or
alternative dispute resolution mechanism, or any hearing, inquiry or investigation that
Indemnitee in good faith believes might lead to the institution of any such action,
suit, proceeding or alternative dispute resolution mechanism, whether civil, criminal,
administrative, investigative or other (each, a “Claim”) by reason of (or arising in
part out of) any event or occurrence related to the fact that Indemnitee is or was a
director, officer, employee, agent or fiduciary of Plantronics, or any subsidiary of
Plantronics, or is or was serving at the request of Plantronics as a director, officer,
employee, agent or fiduciary of another corporation, partnership, joint venture, trust
or other enterprise, or by reason of any action or inaction on the part of Indemnitee
while serving in such capacity (each, an “Indemnifiable Event”) against any and all
expenses (including attorneys’ fees and all other costs expenses and obligations
incurred in connection with investigating, defending, being a witness in or
participating in (including on appeal), or preparing to defend, be a witness in or
participate in, any such action, suit, proceeding, alternative dispute resolution
mechanism, hearing, inquiry or investigation), judgments, fines, penalties and amounts
paid in settlement (if such settlement is approved in advance by Plantronics, which
approval shall not be unreasonably withheld) of such Claim and any federal, state,
local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed
receipt of any payments under this Agreement (collectively, “Expenses”), including all
interest, assessments and other charges paid or payable in connection with or in
respect of such Expenses. Such payment of Expenses shall be made by Plantronics as soon
as practicable but in any event no later than thirty (30) days after written demand by
Indemnitee therefor is presented to Plantronics.

1

 

	 	(b)  	Reviewing Party. Notwithstanding the foregoing, (i) the obligations of
Plantronics under Section 1(a) shall be subject to the condition that the Reviewing
Party (as described in Section 10(f)) shall not have determined (in a written opinion,
in any case in which the Independent Legal Counsel referred to in Section 1(c) is
involved) that Indemnitee would not be permitted to be indemnified under applicable
law, and (ii) the obligation of Plantronics to make an advance payment of Expenses to
Indemnitee pursuant to Section 2(a) (an “Expense Advance”) shall be subject to the
condition that, if, when and to the extent that the Reviewing Party determines that
Indemnitee would not be permitted to be so indemnified under applicable law,
Plantronics shall be entitled to be reimbursed by Indemnitee (who hereby agrees to
reimburse Plantronics) for all such amounts theretofore paid; provided, however, that
if Indemnitee has commenced or thereafter commences legal proceedings in a court of
competent jurisdiction to secure a determination that Indemnitee should be indemnified
under applicable law, any determination made by the Reviewing Party that Indemnitee
would not be permitted to be indemnified under applicable law shall not be binding and
Indemnitee shall not be required to reimburse Plantronics for any Expense Advance until
a final judicial determination is made with respect thereto (as to which all rights of
appeal therefrom have been exhausted or lapsed). Indemnitee’s obligation to reimburse
Plantronics for any Expense Advance shall be unsecured and no interest shall be charged
thereon. If there has not been a Change in Control (as defined in Section 10(c)), the
Reviewing Party shall be selected by the Board of Directors, and if there has been such
a Change in Control (other than a Change in Control which has been approved by a
majority of Plantronics’ Board of Directors who were directors immediately prior to
such Change in Control), the Reviewing Party shall be the Independent Legal Counsel
referred to in Section 1(c). If there has been no determination by the Reviewing Party
or if the Reviewing Party determines that Indemnitee substantively would not be
permitted to be indemnified in whole or in part under applicable law, Indemnitee shall
have the right to commence litigation seeking an initial determination by the court or
challenging any such determination by the Reviewing Party or any aspect thereof,
including the legal or factual bases therefor, and Plantronics hereby consents to
service of process and to appear in any such proceeding. Any determination by the
Reviewing Party otherwise shall be conclusive and binding on Plantronics and
Indemnitee.

	 	(c)  	Change in Control. Plantronics agrees that if there is a Change in
control of Plantronics (other than a Change in Control which has been approved by a
majority of Plantronics’ Board of Directors who were directors immediately prior to
such Change in Control) then with respect to all matters thereafter arising concerning
the rights of Indemnitee to payments of Expenses and Expense Advances under this
Agreement or any other agreement or under Plantronics’ Certificate of Incorporation or
By-Laws as now or hereafter in effect, Plantronics shall seek legal advice only from
Independent Legal Counsel (as defined in Section 10(d)) selected by Indemnitee and
approved by Plantronics (which approval shall not be unreasonably withheld). Such
counsel, among other things,

2

 

shall render its written opinion to Plantronics and Indemnitee as to whether and to
what extent Indemnitee would be permitted to be indemnified under applicable law.
Plantronics agrees to pay the reasonable fees of the Independent Legal Counsel
referred to above and to fully indemnify such counsel against any and all expenses
(including attorneys’ fees), claims, liabilities and damages arising out of or
relating to this Agreement or its engagement pursuant hereto.

	 	(d)  	Establishment of Trust. In the event of a Potential Change in Control
(as defined in Section 10(e)), Plantronics shall, upon written request by Indemnitee,
create a trust for the benefit of Indemnitee and, from time to time upon written
request of Indemnitee, shall fund such trust in an amount sufficient to satisfy any and
all Expenses reasonably anticipated at the time of each such request to be incurred in
connection with investigating, preparing for and defending any Claim relating to an
Indemnifiable Event, and any and all judgments, fines, penalties and settlement amounts
of any and all Claims relating to an Indemnifiable Event from time to time actually
paid or claimed, reasonably anticipated or proposed to be paid. The amount or amounts
to be deposited in the trust pursuant to the foregoing funding obligation shall be
determined by the Reviewing Party, in any case in which the Independent Legal Counsel
referred to above is involved. The terms of the trust shall provide that upon a Change
or Control (i) the trust shall not be revoked or the principal thereof invaded, without
the written consent of Indemnitee, (ii) the trustee shall advance, within five (5)
business days of a request by Indemnitee, any and all Expenses to Indemnitee (and
Indemnitee hereby agrees to reimburse the trust under the circumstances under which
Indemnitee would be required to reimburse Plantronics under Section 1(b) of this
Agreement), (iii) the trust shall continue to be funded by Plantronics in accordance
with the funding obligation set forth above, (iv) the trustee shall promptly pay to
Indemnitee all amounts for which Indemnitee shall be entitled to indemnification
pursuant to this Agreement or otherwise, and (v) all unexpended funds in such trust
shall revert to Plantronics upon a final determination by the Reviewing Party or a
court of competent jurisdiction, as the case may be, that Indemnitee has been fully
indemnified under the terms of this Agreement. The trustee shall be chosen by
Indemnitee. Nothing in this Section 1(d) shall relieve Plantronics of any of its
obligations under this Agreement.

	 	(e)  	Mandatory Payment of Expenses. Notwithstanding any other provision of
this Agreement other than Section 9, to the extent that Indemnitee has been successful
on the merits or otherwise, including, without limitation, the dismissal of an action
without prejudice, in defense of any action, suit, proceeding, inquiry or investigation
referred to in Section (1)(a) or in the defense of any claim, issue or matter therein,
Indemnitee shall be indemnified against all Expenses incurred by Indemnitee in
connection therewith.

3

 

	2.  	Expenses; Indemnification Procedure.

	 	(a)  	Advancement of Expenses. Plantronics shall advance all Expenses
incurred by Indemnitee. The advances to be made hereunder shall be paid by Plantronics
to Indemnitee as soon as practicable but in any event no later than five (5) days after
written demand by Indemnitee therefor to Plantronics.

	 	(b)  	Notice/Cooperation by Indemnitee. Indemnitee shall, as a condition
precedent to Indemnitee’s right to be indemnified under this Agreement, give
Plantronics notice in writing as soon as practicable of any claim made against
Indemnitee for which indemnification will or could be sought under this Agreement.
Notice to Plantronics shall be directed to the Chief Executive Officer of Plantronics
at the address shown on the signature page of this Agreement (or such other address as
Plantronics shall designate in writing to Indemnitee). In addition, Indemnitee shall
give Plantronics such information and cooperation as it may reasonably require and as
shall be within Indemnitee’s power.

	 	(c)  	No Presumptions; Burden of Proof. For purposes of this Agreement, the
termination of any claim, action, suit or proceeding, by judgment, order, settlement
(whether with or without court approval) or conviction, or upon a plea of nolo
contendere, or its equivalent, shall not create a presumption that Indemnitee did not
meet any particular standard of conduct or have any particular belief or that a court
has determined that indemnification is not permitted by applicable law. In addition,
neither the failure of the Reviewing Party to have made a determination as to whether
Indemnitee has met any particular standard of conduct or had any particular belief, nor
an actual determination by the Reviewing Party that Indemnitee has not met such
standard of conduct or did not have such belief, prior to the commencement of legal
proceedings by Indemnitee to secure a judicial determination that Indemnitee should be
indemnified under applicable law, shall be a defense to Indemnitee’s claim or create a
presumption that Indemnitee has not met any particular standard of conduct or did not
have any particular belief. In connection with any determination by the Reviewing
Party or otherwise as to whether the Indemnitee is entitled to be indemnified
hereunder, the burden of proof shall be on Plantronics to establish that Indemnitee is
not so entitled.

	 	(d)  	Notice to Insurers. If, at the time of the receipt by Plantronics of a
notice of a Claim pursuant to Section 2 (b), Plantronics has liability insurance in
effect which may cover such Claim, Plantronics shall give prompt notice of the
commencement of such Claim to the insurers in accordance with the procedures set forth
in the respective policies. Plantronics shall thereafter take all necessary or
desirable action to cause such insurers to pay, on behalf of the Indemnitee, all
amounts payable as a result of such action, suit, proceeding, inquiry or investigation
in accordance with the terms of such policies.

	 	(e)  	Selection of Counsel. In the event Plantronics shall be obligated
hereunder to pay the Expenses of any action, suit, proceeding, inquiry or
investigation, Plantronics,

4

 

if appropriate, shall be entitled to assume the defense of such action, suit,
proceeding, inquiry or investigation with counsel approved by Indemnitee, upon the
delivery to Indemnitee of written notice of its election so to do. After delivery of
such notice, approval of such counsel by Indemnitee and the retention of such
counsel by Plantronics, Plantronics will not be liable to Indemnitee under this
Agreement for any fees of counsel subsequently incurred by Indemnitee with respect
to the same action, suit, proceeding, inquiry or investigation; provided that, (i)
Indemnitee shall have the right to employ Indemnitee’s counsel in any such action,
suit, proceeding, inquiry or investigation at Indemnitee’s expense and (ii) if (A)
the employment of counsel by Indemnitee has been previously authorized by
Plantronics, (B) Indemnitee shall have reasonably concluded that there may be a
conflict of interest between Plantronics and Indemnitee in the conduct of any such
defense, or (C) Plantronics shall not continue to retain such counsel to defend such
action, suit, proceeding, inquiry or investigation, then the fees and expenses of
Indemnitee’s counsel shall be at the expense of Plantronics.

	3.  	Additional Indemnification Rights; Nonexclusivity.

	 	(a)  	Scope. Plantronics hereby agrees to indemnify the Indemnitee to the
fullest extent permitted by law, notwithstanding that such indemnification is not
specifically authorized by the other provisions of this Agreement, Plantronics’
Certificate of Incorporation, Plantronics’ Bylaws or by statute. In the event of any
change after the date of this Agreement in any applicable law, statute or rule which
expands the right of a Delaware corporation to indemnify a member of its board of
directors or an officer, employee, agent or fiduciary, it is the intent of the parties
hereto that Indemnitee shall enjoy by this Agreement the greater benefits afforded by
such change. In the event of any change in any applicable law, statute or rule which
narrows the right of a Delaware corporation to indemnify a member of its board of
directors or an officer, employee, agent or fiduciary, such change, to the extent not
otherwise required by such law, statute or rule to be applied to this Agreement, shall
have no effect on this Agreement or the parties’ rights and obligations hereunder.

	 	(b)  	Nonexclusivity. The indemnification provided by this Agreement shall be
in addition to any rights to which Indemnitee may be entitled under Plantronics’
Certificate of Incorporation, its Bylaws, any agreement, any vote of stockholders or
disinterested directors, the General Corporation Law of the State of Delaware, or
otherwise. The indemnification provided under this Agreement shall continue as to
Indemnitee for any action taken or not taken while serving in an indemnified capacity
even though Indemnitee may have ceased to serve in such capacity.

	4.  	No Duplication of Payments. Plantronics shall not be liable under this Agreement to
make any payment in connection with any action, suit, proceeding, inquiry or investigation
made against Indemnitee to the extent Indemnitee has otherwise actually received payment
(under any insurance policy, Certificate of Incorporation, Bylaw or otherwise) of the amounts
otherwise indemnifiable hereunder.

5

 

	5.  	Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by Plantronics for some or a portion of Expenses in the
investigation, defense, appeal or settlement of any civil or criminal action, suit,
proceeding, inquiry or investigation, but not, however, for all of the total amount thereof,
Plantronics shall nevertheless indemnify Indemnitee for the portion of such Expenses to which
Indemnitee is entitled.

	6.  	Mutual Acknowledgment. Both Plantronics and Indemnitee acknowledge that in certain
instances, Federal law or applicable public policy may prohibit Plantronics from indemnifying
its directors, officers, employees, agents or fiduciaries under this Agreement or otherwise.
Indemnitee understands and acknowledges that Plantronics has undertaken or may be required in
the future to undertake with the Securities and Exchange Commission to submit the question of
indemnification to a court in certain circumstances for a determination of Plantronics’ right
under public policy to indemnify Indemnitee.

	7.  	Liability Insurance. To the extent Plantronics maintains liability insurance
applicable to directors, officers, employees, agents or fiduciaries, Indemnitee shall be
covered by such policies in such a manner as to provide Indemnitee the same rights and
benefits as are accorded to the most favorably insured of Plantronics’ directors, if
Indemnitee is a director; or of Plantronics’ officers, if Indemnitee is not a director of
Plantronics but is an officer; or of Plantronics’ key employees, agents or fiduciaries, if
Indemnitee is not an officer or director but is a key employee, agent or fiduciary.

	8.  	Exceptions. Any other provision herein to the contrary notwithstanding, Plantronics
shall not be obligated pursuant to the terms of this Agreement:

	 	(a)  	Excluded Action or Omissions. To indemnify Indemnitee for acts,
omissions or transactions from which Indemnitee may not be relieved of liability under
applicable law.

	 	(b)  	Claims Initiated by Indemnitee. To indemnify or advance expenses to
Indemnitee with respect to proceedings or claims initiated or brought voluntarily by
Indemnitee and not by way of defense, except (i) with respect to proceedings brought to
establish or enforce a right to indemnification under this Agreement or any other
agreement or insurance policy or under Plantronics’ Certificate of Incorporation or
Bylaws now or hereafter in effect relating to Claims for Indemnifiable Events, (ii) in
specific cases if the Board of Directors has approved the initiation or bringing of
such suit, or (iii) as otherwise as required under Section 145 of the Delaware General
Corporation Law, regardless of whether Indemnitee ultimately is determined to be
entitled to such indemnification, advance expense payment or insurance recovery, as the
case may be.

	 	(c)  	Lack of Good Faith. To indemnify Indemnitee for any expenses incurred
by the Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or
interpret this Agreement, if a court of competent jurisdiction determines that each

6

 

of the material assertions made by the Indemnitee in such proceeding was not made in
good faith or was frivolous; or

	 	(d)  	Claims Under Section 16(b). To indemnify Indemnitee for expenses and
the payment of profits arising from the purchase and sale by Indemnitee of securities
in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or
any similar successor statute.

	9.  	Period of Limitations. No legal action shall be brought and no cause of action shall
be asserted by or in the right of Plantronics against Indemnitee, Indemnitee’s estate, spouse,
heirs, executors or personal or legal representatives after the expiration of two years from
the date of accrual of such cause of action, and any claim or cause of action of Plantronics
shall be extinguished and deemed released unless asserted by the timely filing of a legal
action within such two-year period; provided, however, that if any shorter period of
limitations is otherwise applicable to any such cause of action, such shorter period shall
govern.

	10.  	Construction of Certain Phrases.

	 	(a)  	For purposes of this Agreement, references to “Plantronics” shall include, in
addition to the resulting corporation, any constituent corporation (including any
constituent of a constituent) absorbed in a consolidation or merger which, if its
separate existence had continued, would have had power and authority to indemnify its
directors, officers, employees, agents or fiduciaries, so that if Indemnitee is or was
a director, officer, employee, agent or fiduciary of such constituent corporation, or
is or was serving at the request of such constituent corporation as a director,
officer, employee, agent or fiduciary of another corporation, partnership, joint
venture, employee benefit plan, trust or other enterprise, Indemnitee shall stand in
the same position under the provisions of this Agreement with respect to the resulting
or surviving corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued.

	 	(b)  	For purposes of this Agreement, references to “other enterprises” shall include
employee benefit plans; references to “fines” shall include any excise taxes assessed
on Indemnitee with respect to an employee benefit plan; and references to “serving at
the request of Plantronics” shall include any service as a director, officer, employee,
agent or fiduciary of Plantronics which imposes duties on, or involves services by,
such director, officer, employee, agent or fiduciary with respect to an employee
benefit plan, its participants or its beneficiaries; and if Indemnitee acted in good
faith and in a manner Indemnitee reasonably believed to be in the interest of the
participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed
to have acted in a manner “not opposed to the best interests of Plantronics” as
referred to in this Agreement.

	 	(c)  	For purposes of this Agreement a “Change in Control” shall be deemed to have
occurred if (i) any “person” (as such term is used in Sections 13(d) and 14(d) of

7

 

the Securities Exchange Act of 1934, as amended), other than a trustee or other
fiduciary holding securities under an employee benefit plan of Plantronics or a
corporation owned directly or indirectly by the stockholders of Plantronics in
substantially the same proportions as their ownership of stock of Plantronics, is or
becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly
or indirectly, of securities of Plantronics representing more than 40% of the total
voting power represented by Plantronics’ then outstanding Voting Securities, (ii)
during any period of two consecutive years, individuals who at the beginning of such
period constitute the Board of Directors of Plantronics and any new director whose
election by the Board of Directors or nomination for election by Plantronics’
stockholders was approved by a vote of at least two thirds (2/3) of the directors
then still in office who either were directors at the beginning of the period or
whose election or nomination of or election was previously so approved, cease for
any reason to constitute a majority thereof, or (iii) the stockholders of
Plantronics approve a merger or consolidation of Plantronics with any other
corporation other than a merger or consolidation which would result in the Voting
Securities of Plantronics outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into Voting
Securities of the surviving entity) at least 70% of the total voting power
represented by the Voting Securities of Plantronics or such surviving entity
outstanding immediately after such merger or consolidation, or the stockholders of
Plantronics approve a plan of complete liquidation of Plantronics or an agreement
for the sale or disposition by Plantronics of (in one transaction or a series of
transactions) all or substantially all of Plantronics’ assets.

	 	(d)  	For purposes of this Agreement, “Independent Legal Counsel” shall mean an
attorney or firm of attorneys, selected in accordance with the provisions of Section
1(c), who shall not have otherwise performed services for Plantronics or Indemnitee
within the last three years (other than with respect to matters concerning the rights
of Indemnitee under this Agreement, or of other indemnitees under similar indemnity
agreements).

	 	(e)  	For purposes of this Agreement, a “Potential Change in Control” shall be deemed
to have occurred if: (i) Plantronics enters into an agreement, the consummation of
which would result in the occurrence of a Change in Control, (ii) any person (including
Plantronics) publicly announces an intention to take or to consider taking actions
which, if consummated, would constitute a Change in Control, or (iii) any person, other
than a trustee or other fiduciary holding securities under an employee benefit plan of
Plantronics acting in such capacity or a corporation owned, directly or indirectly, by
the stockholders of Plantronics in substantially the same proportions as their
ownership of stock of Plantronics, who is or becomes the beneficial owner, directly or
indirectly, of securities of Plantronics representing 10% or more of the combined
voting power of Plantronics’ then outstanding Voting Securities, increases his
beneficial ownership of such securities by five percentage points (5%) or more over the
percentage so owned by such person; or (iv) the Board of Directors adopts a resolution
to the

8

 

effect that, for purposes of this Agreement, a Potential Change in Control has
occurred.

	 	(f)  	For purposes of this Agreement, a “Reviewing Party” shall mean any appropriate
person or body consisting of a member or members of Plantronics’ Board of Directors or
any other person or body appointed by the Board of Directors who is not a party to the
particular Claim for which Indemnitee is seeking indemnification, or Independent Legal
Counsel.

	 	(g)  	For purposes of this Agreement, “Voting Securities” shall mean any securities
of Plantronics that vote generally in the election of directors.

	11.  	Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall constitute an original.

	12.  	Binding Effect; Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of and be enforceable by the parties hereto and their respective
successors, assigns, including any direct or indirect successor by purchase, merger,
consolidation or otherwise to all or substantially all of the business and/or assets of
Plantronics, spouses, heirs, and personal and legal representatives. Plantronics shall require
and cause any successor (whether direct or indirect by purchase, merger, consolidation or
otherwise) to all, substantially all, or a substantial part, of the business and/or assets of
Plantronics, by written agreement in form and substance satisfactory to Indemnitee, expressly
to assume and agree to perform this Agreement in the same manner and to the same extent that
Plantronics would be required to perform if no such succession had taken place. This Agreement
shall continue in effect regardless of whether Indemnitee continues to serve as a director or
officer of Plantronics or of any other enterprise at Plantronics’ request.

	13.  	Attorneys Fees. In the event that any action is instituted by Indemnitee under this
Agreement or under any liability insurance policies maintained by Plantronics to enforce or
interpret any of the terms or thereof, Indemnitee shall be entitled to be paid all Expenses
incurred by Indemnitee with respect to such action, regardless of whether Indemnitee is
ultimately successful in such action, and shall be entitled to the advancement of Expenses
with respect to such action, unless as a part of such action the court of competent
jurisdiction over such action determines that each of the material assertions made by
Indemnitee as a basis for such action were not made in good faith or were frivolous. In the
event of an action instituted by or in the name of Plantronics under this Agreement to enforce
or interpret any of the terms of this Agreement, Indemnitee shall be entitled to be paid all
Expenses incurred by Indemnitee in defense of such action (including costs and expenses
incurred with respect to Indemnitee’s counterclaims and cross-claims made in such action), and
shall be entitled to the advancement Expenses with respect to such action, unless as a part of
such action the court having jurisdiction over such action determines that each of
Indemnitee’s material defenses to such action were made in bad faith or were frivolous.

9

 

	14.  	Notice. All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed duly given (i) if delivered by hand and receipted for
by the party addressee, on the date of such receipt, or (ii) if mailed by domestic certified
or registered mail with postage prepaid, on the third business day after the date postmarked.
Addresses for notice to either party are as shown on the signature page of this Agreement, or
as subsequently modified by written notice.

	15.  	Consent to Jurisdiction. Plantronics and Indemnitee each hereby irrevocably consent
to the jurisdiction of the courts of the State of Delaware for all purposes in connection with
any action or proceeding which arises out of or relates to this Agreement and agree that any
action instituted under this Agreement shall be commenced, prosecuted and continued only in
the Court of Chancery of the State of Delaware in and for New Castle County, which shall be
the exclusive and only proper forum for adjudicating such a claim.

	16.  	Severability. The provisions of this Agreement shall be severable in the event that
any of the provisions (including any provision within a single section, paragraph or sentence)
are held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable,
and the remaining provisions shall remain enforceable to the fullest extent permitted by law.
Furthermore, to the fullest extent possible, the provisions of this Agreement (including,
without limitations, each portion of this Agreement containing any provision held to be
invalid, void or otherwise unenforceable, that is not itself invalid, void or unenforceable)
shall be construed so as to give effect to the intent manifested by the provision held
invalid, illegal or unenforceable.

	17.  	Choice of Law. This Agreement shall be governed by and its provisions construed and
enforced in accordance with the laws of the State of Delaware, as applied to contracts between
Delaware residents, entered into and to be performed entirely within the State of Delaware,
without regard to the conflict of laws principles thereof.

	18.  	Subrogation. In the event of payment under this Agreement, Plantronics shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who
shall execute all documents required and shall do all acts that may be necessary to secure
such rights and to enable Plantronics effectively to bring suit to enforce such rights.

	19.  	Amendment and Termination. No amendment, modification, termination or cancellation
of this Agreement shall be effective unless it is in writing signed by both the parties
hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provisions (whether or not similar) nor shall such waiver
constitute a continuing waiver.

	20.  	Integration and Entire Agreement. This Agreement sets forth the entire understanding
between the parties hereto and supersedes and merges all previous written and oral
negotiations, commitments, understandings and agreements relating to the subject matter
between the parties hereto.

10

 

	21.  	No Construction as Employment Agreement. Nothing contained in this Agreement shall
be construed as giving Indemnitee any right to be retained in the employ of Plantronics or any
of its subsidiaries.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	PLANTRONICS, INC.

 	 
	 	By:  	 	 
	 	 	S. Kenneth Kannappan 	 
	 	 	President & Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	AGREED TO AND ACCEPTED

INDEMNITEE:

 	 
	 	By:  	 	 
	 	 	NAME 	 
	 	 	ADDRESS

PHONE

FAX

EMAIL 	 
	 

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