Alaska Airlines and Horizon Air 2007 Annual Report Download - page 92

5.7.3 Further Exceptions to Limits on Transfer. The exercise and transfer restrictions in
Section 5.7.1 shall not apply to:
(a) transfers to the Corporation (for example, in connection with the expiration or termination
of the award),
(b) the designation of a beneficiary to receive benefits in the event of the participant’s death
or, if the participant has died, transfers to or exercise by the participant’s beneficiary, or,
in the absence of a validly designated beneficiary, transfers by will or the laws of descent
and distribution,
(c) subject to any applicable limitations on ISOs, transfers to a family member (or former
family member) pursuant to a domestic relations order if approved or ratified by the
Administrator,
(d) if the participant has suffered a disability, permitted transfers or exercises on behalf of
the participant by his or her legal representative, or
(e) the authorization by the Administrator of “cashless exercise” procedures with third parties
who provide financing for the purpose of (or who otherwise facilitate) the exercise of
awards consistent with applicable laws and the express authorization of the Administrator.
5.8 International Awards. One or more awards may be granted to Eligible Persons who provide
services to the Corporation or one of its Subsidiaries outside of the United States. Any awards
granted to such persons may be granted pursuant to the terms and conditions of any
applicable sub-plans, if any, appended to this Plan and approved by the Administrator.
6. EFFECT OF TERMINATION OF EMPLOYMENT OR SERVICE ON AWARDS
6.1 General. The Administrator shall establish the effect of a termination of employment or service
on the rights and benefits under each award under this Plan and in so doing may make
distinctions based upon, inter alia, the cause of termination and type of award. If the
participant is not an employee of the Corporation or one of its Subsidiaries and provides other
services to the Corporation or one of its Subsidiaries, the Administrator shall be the sole judge
for purposes of this Plan (unless a contract or the award otherwise provides) of whether the
participant continues to render services to the Corporation or one of its Subsidiaries and the
date, if any, upon which such services shall be deemed to have terminated.
6.2 Events Not Deemed Terminations of Service. Unless the express policy of the Corporation or
one of its Subsidiaries, or the Administrator, otherwise provides, the employment relationship
shall not be considered terminated in the case of (a) sick leave, (b) military leave, or (c) any
other leave of absence authorized by the Corporation or one of its Subsidiaries, or the
Administrator; provided that, unless reemployment upon the expiration of such leave is
guaranteed by contract or law or the Administrator otherwise provides, such leave is for a
period of not more than three months. In the case of any employee of the Corporation or one
of its Subsidiaries on an approved leave of absence, continued vesting of the award while on
leave from the employ of the Corporation or one of its Subsidiaries may be suspended until
the employee returns to service, unless the Administrator otherwise provides or applicable law
otherwise requires. In no event shall an award be exercised after the expiration of the term set
forth in the applicable award agreement.
6.3 Effect of Change of Subsidiary Status. For purposes of this Plan and any award, if an entity
ceases to be a Subsidiary of the Corporation a termination of employment or service shall be
deemed to have occurred with respect to each Eligible Person in respect of such Subsidiary
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