SkyWest Airlines 2008 Annual Report Download - page 134

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Granting of Options: On the applicable offering commencement date, a participating employee
will be granted an option to purchase the number of shares of Common Stock determined by dividing
the participant’s balance in the plan account on the last day of the offering period by the purchase
price per share of the Common Stock.
Participation in an Offering: An individual who is an eligible employee at the beginning of an
offering period may elect to participate in such offering by submitting an enrollment form to the
Company authorizing the Company to make deductions from his or her pay on each payday during the
time the employee is a participant at any rate designated by the employee, from a minimum of 1% to a
maximum of 15% of the employee’s base pay. A participant’s option to purchase Common Stock will
be deemed to have been exercised automatically on the offering termination date applicable to such
offering, unless the participant gives written notice to the Company to withdraw such payroll
deductions. The option will be deemed to have been exercised for the purchase of the number of full
shares of Common Stock which the amount in the account will be purchased and any excess in the
account will be returned to the participant.
Exercise Price of Options: The price per share to be paid by participants under the Stock Purchase
Plan will be 95% of the fair market value of shares on the last day of the offering period unless the
Compensation Committee determines that a different discount will apply. Any alternative discount will
be determined in advance of the offering period by the Compensation Committee; however, in no case
will the discount be greater than 15%. For purposes of the Stock Purchase Plan, the fair market value
of the Common Stock shall be the closing sales price as reported on The Nasdaq Global Select Market
on the applicable date or the nearest prior business day on which shares of the Common Stock traded.
Withdrawal; Termination of Employment: Upon withdrawal by a participant prior to an offering
termination date or the termination of a participant’s employment for any reason during an offering,
including retirement and death, the option granted to such participant shall immediately terminate in
its entirety, and the payroll deductions or other contributions credited to the participant’s account shall
be returned to the participant, or, in the case of death, his or her designated beneficiary, and shall not
be used to purchase shares of Common Stock under the Stock Purchase Plan.
Amendment and Termination: The Board may, at any time and for any reason, amend or
terminate the Stock Purchase Plan; provided, however, that to the extent necessary to comply with the
rules of The Nasdaq Global Select Market or any other securities exchange or market system on which
Shares are listed or quoted, or under Section 423 of the Code (or any successor rule or provision or
any applicable law or regulation), the Company must obtain shareholder approval in such a manner
and to such a degree as so required. Subject to certain exceptions, no termination, modification, or
amendment of the Stock Purchase Plan may, without the consent of a participant then having an option
under the Stock Purchase Plan to purchase Common Stock, adversely affect the rights of such
participant under such option.
General Provisions: No participant or his or her legal representative, legatee or distributee will be
deemed to be the holder of any shares of Common Stock subject to an offering until the option has
been exercised and the purchase price for the shares has been paid. No payroll deductions credited to a
participant’s stock purchase account nor any rights with regard to the exercise of an option to purchase
shares of Common Stock under the Stock Purchase Plan may be assigned, transferred, pledged or
otherwise disposed of in any way by a participant other than by will or the laws of descent and
distribution. Options under the Stock Purchase Plan will be exercisable during a participant’s lifetime
only by the participant.
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