Summary of Compensatory Arrangement Between Polycom, Inc. and Senior Executive Officers
Polycom, Inc. has established an arrangement for its senior executive officers, approved by the Compensation Committee in July 2003. If a senior executive is involuntarily terminated without cause, they will have twelve months from the termination date to exercise any stock options that are outstanding and exercisable at that time. This applies to certain existing options with exercise prices above the then-current market value and to options granted after the arrangement's approval.
Exhibit 10.2
SUMMARY OF ARRANGEMENT BETWEEN THE COMPANY
AND ITS SENIOR EXECUTIVE OFFICERS
In July 2003, the Compensation Committee of the Board of Directors of Polycom, Inc. (the “Company”) approved the following compensatory arrangements for the Company’s senior executive officers reporting under Section 16 of the Securities Exchange Act of 1934, as amended, in the event of the involuntary termination of their employment without cause:
A twelve-month period in which to exercise stock options which are outstanding on the date of termination (to the extent exercisable on the date of termination). This twelve-month exercise period applies to:
| • | stock options outstanding as of the date of approval of this arrangement by the Compensation Committee which also have exercise prices above the fair market value of Polycom common stock on that date; and |
| • | stock options granted on or after the date of approval of this arrangement by the Compensation Committee. |
