Logitech 2005 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 of the 2005 Logitech annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 143

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143

to a collective bargaining agreement. Certain foreign countries, such as China, provide by law for employee
rights, which include requirements similar to collective bargaining agreements. The Company believes that its
employee relations are good.
E. Share Ownership
Share and option ownership of the Company’s Directors and Executive Officers appears in Section 5.5
“Share Ownership of Directors and Executive Officers” and Section 5.6 “Option Ownership of Directors and
Executive Officers” in Exhibit 15.1 to the Form 20-F and is incorporated herein by reference.
Information concerning the Company’s employee stock-based compensation arrangements including stock
option plans and stock purchase plans is disclosed in Note 9 “Employee Benefit Plans” of the Notes to
Consolidated Financial Statements included in Item 18 “Financial Statements.”
ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
A. Major Shareholders
The following table sets forth certain beneficial ownership information as of March 31, 2005 of each
shareholder known by the Company to beneficially own 5 % or more of the Company’s registered shares or
ADSs. The Company does not believe it is directly or indirectly owned or controlled by any corporation or by
any foreign government. The voting rights of Logitech shares held by major shareholders are the same as the
voting rights of shares held by all other shareholders. The Company is unaware of any arrangement that might
result in a change in its control.
Name of Beneficial Owner
Shares
Beneficially
Owned(1) Percentage(2)
DanielBorel(3) .............................................. 3,146,000 6.6%
Logitech International S.A. ..................................... 3,660,547 7.6%
(1) Beneficial ownership is determined in accordance with rules of the Securities and Exchange Commission
that deem shares to be beneficially owned by any person who has voting or investment power with respect
to such shares. The beneficial owners have furnished this information. Unless otherwise indicated below, the
persons named in the table have sole voting and sole investment power with respect to all shares shown as
beneficially owned, subject to community property laws where applicable. Registered shares subject to
options that are currently exercisable or exercisable within 60 days after March 31, 2005 are deemed to be
issued and beneficially owned by the person holding such options for the purpose of computing the
percentage ownership of such person but are not treated as issued for the purpose of computing the
percentage ownership of any other person.
(2) Percentage ownership is calculated based on 47,901,655 registered shares outstanding as of March 31, 2005.
(3) Includes 86,000 registered shares jointly held with Mr. Borel’s wife, Sylviane Borel. Also, includes 60,000
shares owned by Mr. Borel as custodian for his three children.
Refer also to Item 9C “Markets on which our Shares Trade” for information regarding the number of ADSs
held in the United States.
B. Related Party Transactions
In connection with the Company’s investment in the Anoto Group AB, a Logitech executive was elected to
the Anoto board of directors. Anoto is a publicly traded Swedish high technology company from which Logitech
licenses digital pen technology. The license agreement requires Logitech to pay a license fee for the rights to use
the Anoto technology and a license fee on the sales value of digital pen solutions sold by Logitech. Also, the
51
CG
20-F
LISA