SkyWest Airlines 2008 Annual Report Download - page 145

Administrator may establish from time to time in its sole discretion. The Authorization Form will
remain in effect for subsequent Offering Periods, until modified or terminated by the Participant.
4.2. Any person who first becomes an Eligible Employee during an Offering Period shall become a
Participant as of the first day of a subsequent Offering Date by completing an Authorization Form and
filing it with the Plan Administrator or Designated Broker by the date required by the Plan
Administrator pursuant to such method as may be established by the Plan Administrator from time to
time in its sole discretion. The Authorization Form will remain in effect for subsequent Offering
Periods, until modified or terminated by the Participant.
4.3. A person shall cease to be a Participant upon the earliest to occur of:
(a) the date the Participant ceases to be an Eligible Employee for any reason;
(b) the first day of the Offering Period beginning after the date on which the Participant
ceases payroll deduction under the Plan pursuant to Section 6.1; or
(c) the date of a withdrawal from the Plan by the Participant as provided in Section 9.
5. GRANT OF OPTION
5.1. On each Offering Date the Company shall grant each Participant an option to purchase shares
of Common Stock, subject to the limitations set forth in Section 3 and Sections 5.3 through 5.5.
5.2. The option price per share of the Common Stock subject to an offering shall be, unless
otherwise determined by the Committee and communicated to Participants prior to the beginning of
the Offering Period, ninety-five percent (95%) of the Fair Market Value of a share of Common Stock
on the Exercise Date. In no event may the per share option price be less than the lesser of
(i) eighty-five percent (85%) of the Fair Market Value of a share of Common Stock on the Exercise
Date or (ii) eighty-five percent (85%) of the Fair Market Value of a share of Common Stock on the
Exercise Date.
5.3. No Participant shall be granted an option if the Participant would immediately after the grant
own directly or indirectly for purposes of Section 424(b)(3) of the Code stock possessing five percent
(5%) or more of the total combined voting power or value of all classes of stock of the Company (or
of a Subsidiary or parent, if any). In applying this limitation the constructive ownership rules of Code
Section 424(d) shall apply and shares that the Participant may purchase under this Plan and any other
options to purchase stock shall be deemed owned by the Participant.
5.4. Additionally, no Participant shall be granted an option to purchase Common Stock under the
Plan which permits the Participant’s rights to purchase stock under all employee stock purchase plans
(as described in Section 423 of the Code) of the Company and its Subsidiaries to accrue at a rate that
exceeds $25,000 of the Fair Market Value of such stock (determined at the time such option is granted)
for each calendar year in which such option is outstanding at any time.
5.5. In no event may a Participant purchase more than 1,250 shares of Common Stock during any
Offering Period (as adjusted pursuant to Section 14, if applicable).
6. PAYROLL DEDUCTIONS
6.1. A Participant may, in accordance with rules adopted by the Plan Administrator, file an
Authorization Form that authorize a payroll deduction of any whole number percentage from one
percent (1%) to fifteen percent (15%) (or such other percentage as may be established by the
Committee from time to time in its sole discretion) of such Participant’s Compensation on each pay
period during the Offering Period. Alternatively, a Participant may designate a flat dollar amount of
Compensation (not in excess of 15% of the Participant’s Compensation for the payroll period) to be
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