NKE » Topics » Employee Transferred from U.S.

These excerpts taken from the NKE 10-Q filed Jan 7, 2009.
Employee Transferred from U.S.  Notwithstanding anything to the contrary in the Plan, if an employee within a Participating Group (1) was not an Eligible Employee on the Offering Date because the employee was employed by the Company or a Participating U.S. Subsidiary on the Offering Date, (2) became an Eligible Employee during the Offering, and (3) was a participant in the U.S. ESPP immediately prior to the time that the employee became an employee within a Participating Group, then the employee shall, notwithstanding that the employee was not an Eligible Employee on the Offering Date, nonetheless be granted under the Plan the option described in paragraph 5(b) (subject to paragraph 5(b)(i) and (ii)).  In such case, (a) all amounts deducted from the employee’s compensation pursuant to the employee’s participation in the U.S. ESPP and not previously used to purchase shares under the U.S. ESPP shall not be returned to the employee under the terms of the U.S. ESPP, but shall instead be contributed and applied (together with all amounts deducted by the applicable Foreign Subsidiary from the employee’s paychecks during the Offering in accordance with this paragraph 6 or otherwise contributed by the employee to the Plan during the Offering in accordance with this paragraph 6) to the purchase of shares under the Plan on the Purchase Date for the Offering, subject to the terms and conditions of the Plan, and (b) unless otherwise determined by the Authorized Officer, the applicable Foreign Subsidiary is hereby authorized to make payroll deductions from each of the employee’s paychecks during the Offering (unless the Authorized Officer has determined pursuant to paragraph 6(b) that payroll deductions are either illegal or inadvisable in the jurisdiction in which the employee is located), and the payroll deduction or contribution percentage shall be the same percentage as was in effect immediately prior to termination of the employee’s participation in the U.S. ESPP with respect to the employee’s payroll deductions under the U.S. ESPP.
 
(g)           
Employee Transferred to U.S.  If an employee ceases to be an Eligible Employee during an Offering solely because the employee commences employment with the Company or a Participating U.S. Subsidiary, then, notwithstanding anything to the contrary in the Plan and for so long as the employee remains employed by the Company or any Participating U.S. Subsidiary, the employee shall be deemed to be an Eligible Employee (subject to the stock ownership limitation set forth in the definition of “Eligible Employee” in paragraph 4 above) for the remainder of the current Offering and, if such change in employing entity occurred during the last month of an Offering, for the duration of the immediately subsequent Offering as well.  In such case, the employee’s new employing entity shall make payroll deductions from each of the employee’s paychecks during the remainder of such time as the employee is deemed to be an Eligible Employee at the rate that applies with respect to the employee’s then effective payroll deduction authorization or contribution method.
 
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EXCERPTS ON THIS PAGE:

10-Q (2 sections)
Jan 7, 2009
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