SanDisk 2013 Annual Report Download - page 77

the Plan Administrator. The Participant may not, however, effect more than one (1) such
reduction per Purchase Interval.
(ii) The Participant may, prior to the commencement of any new Purchase Interval under
the Plan, increase or decrease 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 maximum percentage
established by the Plan Administrator for that offering period) shall become effective on the start
date of the first Purchase Interval following the filing of such form.
B. Payroll deductions shall begin on the first pay day administratively feasible following the
start date 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 the Participant’s book account under the Plan, but no
interest shall be paid 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 Corporation and used for general corporate
purposes.
C. Payroll deductions shall automatically cease upon the termination of the Participant’s
purchase right in accordance with the provisions of the Plan.
D. 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.
VII. 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, in one or more installments during that offering period, 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.
Under no circumstances shall purchase rights be granted under the Plan to any Eligible
Employee if such individual would, immediately after the grant, own (within the meaning of Code
Section 424(d)) or hold outstanding options or other rights to purchase, stock possessing five percent
(5%) or more of the total combined voting power or value of all classes of stock of the Corporation or
any Corporate Affiliate.
B. Exercise of the Purchase Right. Each purchase right shall be automatically exercised on each
successive Purchase Date within the offering period, and shares of Common Stock shall accordingly
be purchased on behalf of each Participant on each such Purchase Date. The purchase shall be
effected by applying the Participant’s payroll deductions for the Purchase Interval ending on such
Purchase Date 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. The purchase price per share at which Common Stock will be purchased on
the Participant’s behalf on each Purchase Date within the particular offering period in which he or she
is enrolled shall be determined by the Plan Administrator at the start of each offering period and shall
not be less than eighty-five percent (85%) of the lower of (i) the Fair Market Value per share of
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