Summary
NIKE, Inc. filed this Form 8-K on January 26, 2006, primarily to disclose the entry into a new Aircraft Time-Sharing Agreement. This agreement formalizes the terms under which company directors and executive officers can use corporate aircraft for personal travel. It requires these individuals to reimburse NIKE for the aggregate incremental cost of each personal flight, adhering to Federal Aviation Administration (FAA) regulations. This policy is a standard practice to ensure compliance and appropriate cost allocation for the personal use of company assets.
Key Highlights
- 1NIKE, Inc. has approved and will implement a standardized Aircraft Time-Sharing Agreement for personal use of corporate aircraft by directors and executive officers.
- 2The agreement ensures that directors and officers will reimburse the company for the incremental cost of personal flights, aligning with FAA regulations.
- 3This policy is a continuation of existing practices, with the new agreement being identical in form to previous ones.
- 4The company retains full authority to schedule, cancel, or change flights for safety and maintenance reasons.
- 5The agreement terminates if the director or officer leaves the company or its Board.
- 6The filing includes the Aircraft Time-Sharing Agreement as Exhibit 10.1.