This excerpt taken from the LWSN DEF 14A filed Sep 25, 2006.
Executives are also eligible to receive awards under our stock incentive plans, which are administered by the Compensation Committee. In fiscal 2006, the Company granted stock options to certain executive officers and other employees under our stock incentive plans. Because of the direct relationship between the value of an option and the stock price, the Compensation Committee believes that stock options motivate recipients to manage the Company in a manner that is consistent with stockholder interests. The stock options granted in fiscal 2006 generally vest and become fully exercisable over a four-year period, subject to acceleration upon certain events. However, the Board has authority to grant options with differing vesting periods. The principal subjective factors considered in granting stock options to executive officers of the Company include prior performance, level of responsibility, other compensation and the executive officers ability to influence the Companys long-term growth and profitability.