Garmin 2007 Annual Report Download - page 117

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ii
GARMIN LTD.
EMPLOYEE STOCK PURCHASE PLAN
I. Purpose and Effective Date
1.1 The purpose of the Garmin Ltd. Employee Stock Purchase Plan is to provide an
opportunity for eligible employees to acquire a proprietary interest in Garmin Ltd. through
accumulated payroll deductions. It is the intent of the Company to have the Plan qualify as an
"employee stock purchase plan" under Section 423 of the Code. The provisions of the Plan shall
be construed to extend and limit participation in a manner consistent with the requirements of
Section 423 of the Code.
1.2 The Plan shall be effective on the Effective Date stated below, subject to the
approval of the Company’s stockholders within one year before or one year after the date the
Plan is approved by the Board of Directors of the Company. No option shall be granted under
the Plan after the date as of which the Plan is terminated by the Board in accordance with Section
11.7 of the Plan.
II. Definitions
The following words and phrases, when used in this Plan, unless their context
clearly indicates otherwise, shall have the following respective meanings:
2.1 "Account" means a recordkeeping account maintained for a Participant to which
payroll deductions are credited in accordance with Article VIII of the Plan.
2.2 "Administrator" means the persons or committee appointed under Section 3.1 to
administer the Plan.
2.3 "Article" means an Article of this Plan.
2.4 "Accumulation Period" means, as to the Company or a Participating Subsidiary, a
period of six months commencing with the first regular payroll period commencing on or after
each successive January 1 and ending on each successive June 30 and a period of six months
commencing with the first regular payroll period commencing on or after each successive July 1
and ending on each successive December 31. The Committee may modify (including increasing
or decreasing the length of time covered) or suspend Accumulation Periods at anytime and from
time to time.
2.5 "Base Earnings" means base salary and wages payable by the Company or a
Participating Subsidiary to an Eligible Employee, prior to pre-tax deductions for contributions to
qualified or non-qualified (under the Code) benefit plans or arrangements, and excluding
bonuses, incentives and overtime pay but including commissions.