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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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