This excerpt taken from the WSTL 10-K filed Jun 14, 2007.
Employee Stock Incentive Plan
In October 1995, the Company adopted a stock incentive plan (the 1995 SIP Plan) that permits the issuance of Class A Common Stock, restricted shares of Class A Common Stock, nonqualified stock options and incentive stock options to purchase Class A Common Stock, performance awards and stock appreciation rights to selected employees, officers, non-employee directors of the Company and advisory board members and consultants. No stock awards were issued in fiscal 2007, 2006 or 2005.
During March 2000, as part of the Teltrend acquisition, the Company adopted the following three stock options plans (collectively the three adopted option plans): Teltrend Inc. 1995 Stock Option Plan (the 1995 Stock Option Plan), Teltrend Inc. 1996 Stock Option Plan (the 1996 Stock Option Plan), and Teltrend Inc. 1997 Non-Employee Director Stock Option Plan (the 1997 Director Option Plan). Under both the 1995 and 1996 Stock Option Plans nonqualified stock options were granted to key employees. Nonqualified stock options were granted to Non-Employee Directors under the 1997 Director Option Plan.
In September 2004 shareholders approved the Westell Technologies, Inc. 2004 Stock Incentive Plan (the 2004 SIP Plan) that permits the issuance of restricted Class A Common Stock, nonqualified stock options, stock appreciation rights and performance share awards to selected officers, employees, and non-employee directors of the Company.
On February 24, 2006, the Company accelerated the vesting of approximately 1.4 million unvested out of the money stock options held by current employees and certain executive officers of the Company. No options were accelerated for board members or the Chief Executive Officer. The immediate vesting included a restriction on the resale of the underlying shares of common stock. The acceleration of vesting was made to reduce compensation expense that otherwise would be recorded in future periods. For pro forma disclosure purposes, these options were treated as if they were expensed in the fourth quarter of fiscal 2006.