Logitech 2013 Annual Report Download - page 18

• The authority to amend the terms of the ESPPs, including with respect to outstanding offerings, has
been expanded.
• The 2006 Plan has been amended to include the $25,000 annual limitation on the purchase of the shares
that currently applies to purchases under the 1996 Plan.
Key Terms
The key terms of the ESPPs are summarized below. The following summary of certain material features of
the ESPPs is qualified in its entirety by reference to the ESPPs, which are attached to the proxy statement, as filed
with the U.S. Securities and Exchange Commission on or about July 23, 2013, as Appendices A and B.
Eligibility
Employees of certain of Logitech’s subsidiaries are eligible to participate in the ESPPs. The subsidiaries
whose employees are entitled to participate may be changed from time to time by Logitech. Employees of Logitech
who regularly work 20 hours or more per week and more than five months per year, subject to applicable law,
are eligible to participate in the ESPPs, but the Board may allow employees who work less than these hours and
months to be eligible to participate in future offerings. Logitech may establish administrative rules requiring that
employees complete an enrollment form within a prescribed enrollment period. As of June 30, 2013, approximately
2,281 employees were eligible to participate in the ESPPs.
Employees are not eligible to participate in the 1996 Plan if they would immediately after such purchase own
(directly or indirectly) shares, which when added to shares that the employees may purchase under outstanding
options or other rights, amounts to 5% or more of the total combined voting power of shares of Logitech.
Enrollment and Participation
An eligible employee who wants to enroll and participate in the ESPPs must complete an enrollment form
(which includes a payroll deduction agreement) with Logitech during an enrollment period. The enrollment form
authorizes Logitech to withhold automatically a percentage of the participant’s earnings through regular payroll
deductions, and the amount of the deduction is credited to an ESPP account in the participant’s name on Logitech’s
books during the offering period. The minimum deduction allowed is 1%, and the maximum deduction is 10%,
of the participant’s earnings for the pay period, but the Board has the authority to designate a different maximum
percentage of eligible contributions. No interest is paid or credited with respect to such payroll deductions.
Participants may decrease, but may not increase, their rate of contribution during an offering period
by completing a new enrollment form. If a participant has not followed these procedures to change the rate of
contribution, the rate of contribution continues at the originally elected rate throughout the offering period and
future offering periods. Participants may change their rate of contribution for the next offering period by completing
an amended enrollment form during the enrollment periods.
Termination of Employment
Termination of a participant’s employment for any reason shall terminate the participant’s participation in the
ESPPs and shall be treated as a withdrawal from the ESPPs.
Administration
The Board, or a committee appointed by the Board (included in the Board for purposes of this Proposal
Explanation, “Board”), administers the ESPP. The Board may interpret the ESPPs and establish, amend and rescind
any rules related to the ESPPs.
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