Garmin 2007 Annual Report Download - page 121

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vi
the event that, at a time when options are outstanding hereunder, there occurs a dissolution or
liquidation of the Company, except pursuant to a transaction to which Section 424(a) of the Code
applies, each option to purchase Shares shall terminate, but the Participant holding such option
shall have the right to exercise his or her option prior to such termination of the option upon the
dissolution or liquidation. The Company reserves the right to reduce the number of Shares
which Employees may purchase pursuant to their enrollment in the Plan.
V. Eligibility Requirements
5.1 Except as provided in Section 5.2, each individual who is an Eligible Employee of
the Company or a Participating Subsidiary on the applicable Cut-Off Date shall become eligible
to participate in the Plan in accordance with Article VI as of the first Enrollment Date following
the date the individual becomes an Employee of the Company or a Participating Subsidiary,
provided that the individual remains an Eligible Employee on the first day of the Accumulation
Period associated with such Enrollment Date. Participation in the Plan is entirely voluntary.
5.2 Employees meeting any of the following restrictions are not eligible to participate
in the Plan:
(a) Employees who, immediately upon enrollment in the Plan or upon grant of
an Option would own directly or indirectly, or hold options or rights to acquire, an
aggregate of 5% or more of the total combined voting power or value of all outstanding
shares of all classes of stock of the Company or any Subsidiary (and for purposes of this
paragraph, the rules of Code Section 424(d) shall apply, and stock which the Employee
may purchase under outstanding options shall be treated as stock owned by the
Employee);
(b) Employees (other than individuals on Authorized Leave of Absence (as
defined in Section 10.3)) who are customarily employed by the Company or a
Participating Subsidiary for not more than 20 hours per week; or
(c) Employees (other than individuals on Authorized Leave of Absence (as
defined in Section 10.3)) who are customarily employed by the Company or a
Participating Subsidiary for not more than five (5) months in any calendar year.
5.3 The Plan is intended to conform to the extent necessary with all provisions of the
Securities Act and the Exchange Act and any and all regulations and rules promulgated by the
Securities and Exchange Commission thereunder. Notwithstanding anything herein to the
contrary, the Plan shall be administered, and the options shall be granted and may be exercised,
only in such a manner as to conform to such laws, rules and regulations. To the extent permitted
by applicable law, the Plan and the options granted hereunder shall be deemed amended to the
extent necessary to conform to such laws, rules and regulations.
VI. Enrollment
6.1 Eligible Employees will be automatically enrolled in the Plan on the first day of
each Accumulation Period. Any Eligible Employee may consent to enrollment in the Plan for an