Pep Boys 2010 Annual Report Download - page 51

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A-5
(i) The Participant may, at any time during the Offering Period, reduce his or her rate of payroll
deduction to become effective as soon as administratively possible after filing the appropriate form with the Plan
Administrator. The Participant may not, however, effect more than one such reduction per Offering Period.
(ii) Prior to the commencement of any new Offering Period, a Participant may increase the rate of
his or her payroll deduction by filing the appropriate form with the Plan Administrator. The new rate (which may
not exceed the ten percent (10%) of Cash Compensation maximum, unless the Plan Administrator determines
otherwise) shall become effective on the start date of the first Offering Period following the filing of such form.
(b) Commencement. Payroll deductions shall begin on the first pay day as of which commencement is
administratively feasible following the beginning of the Offering Period and shall (unless sooner terminated by the
Participant) continue through the pay day ending with or immediately prior to the last day of that Offering Period.
The amounts so collected shall be credited to a book account established on the Company’s records for the
Participant. No interest shall accrue on the balance from time to time outstanding in such account. The amounts
collected from the Participant shall not be required to be held in any segregated account or trust fund and may be
commingled with the general assets of the Company and used for general corporate purposes.
(c) Cessation of Payroll Deductions. Payroll deductions shall automatically cease upon the termination
of the Participant’s purchase right in accordance with the provisions of the Plan.
(d) No Requirement to Purchase. The Participant’s acquisition of Common Stock under the Plan on any
Purchase Date shall neither limit nor require the Participant’s acquisition of Common Stock on any subsequent
Purchase Date, whether within the same or a different Offering Period.
8. PURCHASE RIGHTS
(a) Grant of Purchase Rights. A Participant shall be granted a separate purchase right for each Offering
Period in which he or she is enrolled. The purchase right shall be granted on the start date of the Offering Period and
shall provide the Participant with the right to purchase shares of Common Stock, upon the terms set forth below.
The Participant shall execute a stock purchase agreement embodying such terms and such other provisions (not
inconsistent with the Plan) as the Plan Administrator may deem advisable.
(b) Exercise of the Purchase Right. Each purchase right shall be automatically exercised on the Purchase
Date for the Offering Period, and shares of Common Stock shall accordingly be purchased on behalf of each
Participant on the Purchase Date. The purchase shall be effected by applying the Participant’s payroll deductions for
the Offering Period to the purchase of whole shares of Common Stock at the purchase price in effect for the
Participant for that Purchase Date.
(c) Purchase Price. Unless the Plan Administrator determines otherwise prior to the beginning of the
Offering Period, the purchase price per share at which Common Stock will be purchased on the Participant’s behalf
on each Purchase Date shall be equal to eighty-five percent (85%) of the Fair Market Value per share of Common
Stock on the Purchase Date. The Plan Administrator may change the purchase price prior to the beginning of an
Offering Period, provided that the purchase price may not be less than eighty-five percent (85%) of the lower of (i)
the Fair Market Value per share of Common Stock on the start date of the Offering Period or (ii) the Fair Market
Value per share of Common Stock on the Purchase Date.
(d) Number of Purchasable Shares. The number of shares of Common Stock purchasable by a
Participant on each Purchase Date shall be the number of whole shares obtained by dividing the amount collected
from the Participant through payroll deductions during the Offering Period by the purchase price in effect for the
Participant for that Purchase Date. However, the maximum number of shares of Common Stock that may be
purchased by a Participant on any one Purchase Date shall not exceed 10,000 shares, subject to adjustment as
described in Section 4(b) and the accrual limitation under Article 9 below. The Plan Administrator shall have the
discretionary authority, exercisable prior to the start of any Offering Period, to increase or decrease the limitations to