AutoNation 2006 Annual Report Download - page 100

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(b) INDEPENDENT CONTRACTORS. Options may be granted to independent contractors performing services for the Company or any Subsidiary or
Affiliate as determined by the Board from time to time on the basis of their importance to the business of the Company or such Subsidiary or Affiliate.
Independent contractors shall not be eligible to receive options intended to constitute Incentive Stock Options. Nonemployee directors of the Company shall not
be eligible to receive options under the Plan.
(c) MULTIPLE GRANTS. An individual may hold more than one Option, subject to such restrictions as are provided herein.
5. EFFECTIVE DATE AND TERM OF THE PLAN
(a) EFFECTIVE DATE. The Plan shall be effective as of the date of adoption by the Board, which date is set forth below, subject to approval of the Plan,
within one year of such effective date, by the stockholders of the Company by a majority of the votes present and entitled to vote at a duly held meeting of the
stockholders at which a quorum representing a majority of all outstanding voting stock is present, either in person or by proxy or by written consent in
accordance with the Company’s Certificate of Incorporation and Bylaws; provided, however, that upon approval of the Plan by the stockholders of the
Company as set forth above, all Options granted under the Plan on or after the effective date shall be fully effective as if the stockholders of the Company had
approved the Plan on the effective date. If the stockholders fail to approve the Plan within one year of such effective date, any options granted hereunder shall
be null and void and of no effect.
(b) TERM. The Plan shall terminate on the date 10 years from the effective date.
6. GRANT OF OPTIONS
Subject to the terms and conditions of the Plan, the Board may, at any time and from time to time, prior to the date of termination of the Plan, grant to such
eligible individuals as the Board may determine (“Optionees”), Options to purchase such number of shares of the Stock on such terms and conditions as the
Board may determine. The date on which the Board approves or ratifies the grant of an Option (or such later date as the Board may designate) shall be
considered the date on which such Option is granted.
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