Nike 2010 Annual Report Download - page 114

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6. Option Grants.
(a) Grant. The Committee may grant options under the Plan. With respect to each option grant, the Committee shall determine the number of
Shares subject to the option, the option price, the period of the option, the time or times at which the option may be exercised and whether the option
is an Incentive Stock Option or a Non−Statutory Stock Option.
(b) Incentive Stock Options. Incentive Stock Options shall be subject to the following terms and conditions:
(i) An Incentive Stock Option may be granted under the Plan to an employee possessing more than 10 percent of the total combined
voting power of all classes of stock of the Company or of any parent or subsidiary of the Company only if the option price is at least 110
percent of the fair market value of the Shares subject to the option on the date it is granted, as described in paragraph 6(b)(iii), and the option by
its terms is not exercisable after the expiration of five years from the date it is granted.
(ii) Subject to paragraphs 6(b)(i) and 6(d), Incentive Stock Options granted under the Plan shall continue in effect for the period fixed by
the Committee, except that no Incentive Stock Option shall be exercisable after the expiration of 10 years from the date it is granted.
(iii) The option price per share shall be determined by the Committee at the time of grant. Subject to paragraph 6(b)(i), the option price
shall not be less than 100 percent of the fair market value of the Shares covered by the Incentive Stock Option at the date the option is granted.
The fair market value shall be deemed to be the closing price of the Class B Common Stock of the Company as reported in the New York Stock
Exchange Composite Transactions in the Wall Street Journal on the date the option is granted, or if there has been no sale on that date, on the
last preceding date on which a sale occurred, or such other reported value of the Class B Common Stock of the Company as shall be specified
by the Committee.
(iv) No Incentive Stock Option shall be granted on or after the tenth anniversary of the last action by the Board of Directors approving an
increase in the number of shares available for issuance under the Plan, which action was subsequently approved within 12 months by the
shareholders.
(c) Non−Statutory Stock Options. The option price for Non−Statutory Stock Options shall be determined by the Committee at the time of grant.
The option price may not be less than 100 percent of the fair market value of the Shares covered by the Non−Statutory Stock Option on the date the
option is granted. The fair market value of Shares covered by a Non−Statutory Stock Option shall be determined pursuant to paragraph 6(b)(iii). No
Non−Statutory Stock Option shall be exercisable after the expiration of 10 years from the date it is granted.
(d) Exercise of Options. Except as provided in paragraph 6(f), no option granted under the Plan may be exercised unless at the time of such
exercise the optionee is employed by the Company or any parent or subsidiary corporation of the Company and shall have been so employed
continuously since the date such option was granted. Absence on leave or on account of illness or disability under rules established by the Committee
shall not, however, be deemed an interruption of employment for this purpose. Except as provided in paragraphs 6(f), 10 and 11, options granted
under the Plan may be exercised from time to time over the period stated in each option in such amounts and at such times as shall be prescribed by
the Committee, provided that options shall not be exercised for fractional shares. Unless otherwise determined by the Committee, if the optionee does
not exercise an option in any one year with respect to the full number of Shares to which the optionee is entitled in that year, the optionee’s rights
shall be cumulative and the optionee may purchase those Shares in any subsequent year during the term of the option.
(e) Nontransferability. Except as provided below, each stock option granted under the Plan by its terms shall be nonassignable and
nontransferable by the optionee, either voluntarily or by operation of law,
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