Garmin 2007 Annual Report Download - page 123

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viii
VIII. Payroll Deductions
8.1 An Employee who files an enrollment form pursuant to Article VI shall elect and
authorize in such form to have deductions made from his or her pay on each payday he or she
receives a paycheck during the Accumulation Period to which the enrollment form relates, and
he or she shall designate in such form the percentage (in whole percentages) of Base Earnings to
be deducted each payday during such Accumulation Period. The minimum an Employee may
elect and authorize to have deducted is 1% of his or her Base Earnings paid per pay period in
such Accumulation Period, and the maximum is 10% of his or her Base Earnings paid per pay
period in such Accumulation Period (or such larger or smaller percentage as the Administrator
may designate from time to time).
8.2 Except as provided in the last paragraph of Section 6.1, deductions from a
Participant’s Base Earnings shall commence upon the first payday on or after the commencement
of the Accumulation Period, and shall continue until the date on which such authorization ceases
to be effective in accordance with Article VI. The amount of each deduction made for a
Participant shall be credited to the Participant’s Account. All payroll deductions received or held
by the Company or a Participating Subsidiary may be, but are not required to be, used by the
Company or Participating Subsidiary for any corporate purpose, and the Company or
Participating Subsidiary shall not be obligated to segregate such payroll deductions, but may do
so at the discretion of the Board.
8.3 As of the last day of any month during an Accumulation Period, a Participant may
elect to cease (but not to increase or decrease) payroll deductions made on his or her behalf for
the remainder of such Accumulation Period by filing the applicable election with the Company
or Participating Subsidiary in such form and manner and at such time as may be permitted by the
Administrator. A Participant who has ceased payroll deductions may have the amount which
was credited to his or her Account prior to such cessation applied to the purchase of Shares as of
the Purchase Date, in accordance with Section 9.1, and receive the balance of the Account with
respect to which the enrollment is ceased, if any, in cash. A Participant who has ceased payroll
deductions may also voluntarily withdraw from the Plan pursuant to Section 10.1. Any
Participant who ceases payroll deductions for an Accumulation Period may re-enroll in the Plan
on the next subsequent Enrollment Date following the cessation in accordance with the
provisions of Article VI. A Participant who ceases to be employed by the Company or any
Participating Subsidiary will cease to be a Participant in accordance with Section 10.2.
8.4 A Participant may not make any separate or additional contributions to his
Account under the Plan. Neither the Company nor any Participating Subsidiary shall make
separate or additional contributions to any Participant’s Account under the Plan.
IX. Purchase of Shares
9.1 Subject to Section 9.2, any option held by the Participant which was granted
under this Plan and which remains outstanding as of a Purchase Date shall be deemed to have
been exercised on such Purchase Date for the purchase of the number of whole Shares which the
funds accumulated in his or her Account as of the Purchase Date will purchase at the applicable
purchase price (but not in excess of the number of Shares for which options have been granted to