Document:

exhibit10_1.htm

    EXHIBIT
10.1

      

      
  

      CERTAIN
INFORMATION (INDICATED BY ASTERISKS) IN THIS EXHIBIT HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  

      CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

       

       

      Transition
Agreement

      

      This
Transition Agreement (“Agreement”) is entered into as of October 24, 2008 (the
“Effective Date”), by and between Time Warner Cable Inc., a Delaware corporation
(“TWC”), and Primal Solutions, Inc., a Delaware corporation
(“Primal”).

      

      Recitals

      

      A.           TWC,
as assignee of Time Warner Cable Information Services (Maine), LLC, and Primal
are Parties to (i) that certain Master Software License Agreement, dated
December 11, 2002 (as amended, the “License Agreement”), and (ii) that certain
Professional Services Agreement, dated December 2002, for provision of Rating
and Mediation services in support TWC’s Digital Phone (as
amended, the “Services Agreement” and, together with the License Agreement, the
“2002 Agreements”);

      

      B.           In
addition to the 2002 Agreements, TWC and Primal have executed certain Work
Orders that authorize Primal to provide services for or on behalf of TWC
identified as Billing Authorization TWC126, Verizon OA/DA processing, Quotation
TWC143, Monthly Data Mart Support, TWCR 132, Hosting Charges in 2007/2008, and
TWCR116, Marketing Dashboard (collectively, “the Work Orders”);

      

      B.           As
permitted under the 2002 Agreements, TWC hereby gives notice of its desire to
terminate the 2002 Agreements and the Work Orders to Primal;

      

      C.           The
Parties desire to set forth in this Agreement certain terms and conditions with
respect to the transition assistance to be provided by Primal in connection with
the termination of the 2002 Agreements and the additional fees to be paid by TWC
in connection with the provision of those services.

      

      Agreements

      

      In consideration of the foregoing and
the covenants set forth below, the Parties agree as follows:

      

      1.           Definitions.  All
capitalized terms used in this Agreement and not expressly defined in this
Agreement shall have the respective meanings given to such terms in the License
Agreement or Services Agreement, as applicable.  Primal and TWC are
collectively referred to as the "Parties" and each, individually, as a
"Party".

      

      2.           Transition
Term.  The term of this Agreement (the “Transition Term”) will
commence upon execution by the Parties and will continue until February 28,
2009.  During the Transition Term, all of the terms and conditions of
the 2002 Agreements, including payment-related terms, will continue in full
force and effect.  Upon the expiration of the Transition Term, the
2002 Agreements and the Work Orders will terminate.

       

       

      
        
          
            
              CONFIDENTIAL                                           Page 1 of
9

            

             

          

          
            
            

            
              

            

          

          
             

          

        

      

      
 

      3.           Transition
Services.

      

      3.1.           Transition
Services.  During the Transition Term, Primal will use
commercially reasonable best efforts to provide to TWC services that are
reasonably requested by TWC in order for TWC to effect an orderly transition
from the Software to TWC’s alternative product and platform (the “Transition
Services”) in accordance with the transition schedule set forth in Schedule 1 to this
Agreement, as it may be modified from time to time by written agreement of TWC
and Primal (any such modification requested by one Party will be considered and
acted upon in good faith by the other Party). The Transition Services will
include (i) the services described in the 2002 Agreements, subject to the
limitations of hours set forth therein, (ii) the services described in
Authorization Letter #TWCR188, dated October 8, 2008 (the “Authorization
Letter”), and (iii) the services described in Schedule 2 to this
Agreement.

      

       

      3.2.           Charges
and  Payment.  During the Transition Term, TWC will
continue to pay to Primal all fees due and owing under the 2002 Agreements and
the Work Orders for the use of the Software and for services provided by
Primal.  In addition, TWC will pay an additional amount to Primal for
(i) the Transition Services described in the Authorization Letter in accordance
with the pricing and payment terms set forth in the Authorization Letter, and
(ii) to decommission the hardware infrastructure used in connection with the
Software and services, as described in Schedule 2 to this
Agreement, in accordance with the pricing and payment terms set forth in Schedule
2.  During the Transition Term, all invoices from Primal to TWC
shall be paid net ten days with a two percent (2%) discount of the invoice
amount.

       

      

      4.           Grant of Limited
License. Notwithstanding anything
to the contrary in the 2002 Agreements, including Section 2.6 of the License
Agreement, Primal hereby grants to TWC a limited, non-transferable,
non-sublicensable, non-exclusive license to the Software, and all Intellectual
Property Rights in and to the Software, for its use (including use by its
employees, agents and contractors solely on behalf of TWC) in connection with
the transition from the Software to TWC’s replacement product and
platform.  Without limiting the generality of the foregoing grant of
rights, TWC shall have the right to develop and use, during and after the
Transition Term, reports and reporting formats (including the “look and feel”
thereof) that are the same or similar to the reporting formats used by Primal in
providing its services under the 2002 Agreements and Work Orders; provided,
however, that TWC shall not have the right to develop, during and after the
Transition Term, widgets, graphics, reports or reporting formats (including the
“look and feel” thereof) that are the same or similar to the reporting formats
used by Primal in providing its services under TWCR116, Marketing
Dashboard.  Except as expressly granted in this Section 4, (i) TWC
receives no ownership, license, or other interest in any intellectual property
created or delivered by Primal, whether in connection with its performance of
this Agreement or otherwise, and (ii) Primal receives no ownership, license, or
other interest in any intellectual property created or delivered by TWC, whether
in connection with its performance of this Agreement or otherwise.

       

       

      
        
          
            
              CONFIDENTIAL                                                       Page 2 of
9

            

             

          

          
             

            
              

            

          

          
             

          

        

      5.           Confidentiality.  The
confidentiality terms set forth in Section 4 of the License Agreement are
incorporated into this Agreement by this reference and will apply to the Parties
performance of their respective obligations during the Transition
Term.

      

      6.           Entire
Agreement.  This Agreement (including Schedules 1 and 2)
and the Authorization Letter constitute the entire agreement between the Parties
with respect to the subject matter of this Agreement and the Authorization
Letter and supersede all other prior or contemporaneous understandings or
agreements with respect thereto.  In the event of a conflict between
this Agreement or the Authorization Letter and the 2002 Agreements, the terms of
this Agreement and the Authorization Letter, as applicable, shall
govern.  No amendment to this Agreement is valid unless in writing and
signed by both Parties.  Any requirement for a signature in this
Agreement or any amendment may be satisfied by facsimile transmission of an
original signature.

      

      7.           Limitation of
Liability.  Except for a Party’s willful misconduct, neither
Party will have any liability to the other Party under this Agreement for
indirect, consequential, exemplary, special, incidental or punitive
damages.

      

      8.           Survival of
Provisions.  Upon the expiration or earlier termination of the
Transition Term, the provisions in Sections 4, 5, 6 and 7 of this Agreement will
survive, in addition to the surviving provisions of the 2002 Agreements as set
forth therein.

      

      [Signature
Page Follows]

       

       

      
        
          
            
              CONFIDENTIAL                                                       Page 3 of
9

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      The
Parties have each executed this Agreement as of the date set forth below the
signature of the Party’s authorized signatory.

       

      
      

       

      
        	
                AGREED:

                 

              	 	 	
                AGREED:

                 

              	 
	Time Warner Cable
      Inc.	 	Primal Solutions,
      Inc.
	
                 

                By:

              	
                 

                /s/ Frank
      Boncimino

              	 	
                 

                By:

              	
                 

                /s/ Joseph R. Simrell

              
	
                 

                Name:

              	
                 

                Frank Boncimino

              	 	
                 

                Name:

              	
                 

                Joseph R. Simrell

              
	
                 

                Title:

              	
                 

                Senior Vice President

              	 	
                 

                Title:

              	
                 

                CEO

              
	
                 

                Date:

              	
                 

                November 6, 2008

              	 	
                 

                Date:

              	
                 

                November 20, 2008

              

      

       

      

      
        
          
            
              CONFIDENTIAL                                                      Page 4 of
9

            

             

          

          
            
            

            
              

            

          

          
             

          

        

      

      Schedule
1

      to

      Transition
Agreement

      

      Transition
Schedule

      

      

      10/17/08
- [***]

       

      10/22/08
- Complete development for settlement and revenue assurance tools including
reports and optimized queries  (~35-40 reports).  3 months
(August, September and up to 10/22) of filtered data must also be online with
all aggregations/optimizations completed)

      

      10/22/08
- 11/7/08 - User acceptance of settlement and revenue assurance
tools

      

      11/7/08
-
[***]  This is a big component of invoice settlement, so this
1st settlement is more of an advanced test of the tools combined with the
data

      

      11/15/08
- [***]

      

      11/15/08
- 11/22/08 - User acceptance testing of first version of wholesale rating
functionality

      

      12/1/08 -
cutover begins, Primal continues to receive all rated usage through December,
with billing files being sent for data prior to 12/1

      

      12/1/08 -
12/31/08 - [***]

      

      12/1/08 -
12/31/08 - Primal runs billing adjustment files for unrated records ([***])

      

      12/7/08 -
1st full, parallel Sprint invoice settlement

      

      12/10/08
- [***]

      

      12/15/08
- Primal runs invoice cycle for National

      

      12/15/08
- [***]

      

      12/15/08
- 12/22/08 - User acceptance testing of final version of wholesale rating
functionality

      

      1/1/09 -
1/31/09 - [***]

       

       

      
        
          

        

        [***]  Confidential
portion omitted and filed separately with the Securities and Exchange
Commission.

         

      

       

      
        
          
            
              CONFIDENTIAL                                                       Page 5 of
9

            

             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      

      1/1/09 -
1/31/09 - [***]

      

      1/9/08 -
[***]

      

      1/10/08 -
[***]

      

      1/15/08 -
[***]

       

       

        
          

        

      

      [***]  Confidential
portion omitted and filed separately with the Securities and Exchange
Commission.

       

       

      
        
          
            
              CONFIDENTIAL                                                       Page 6 of
9

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      
 

      Schedule
2

      to

      Transition
Agreement

      

      Decommission of TWC
Hardware

      

      
        	
                A.  

              	
                Incorporation
      by reference of the Services
Agreement.

              

      

       

      The
services set forth in this Schedule 2 will be subject to the terms and
conditions of the Transition Agreement.

      

      
        	
                B.  

              	
                Description
      of Services:

              

      

      

      Primal
will perform the decommission and removal of the Sun hardware.  This
effort will begin no later than March 1st,
2009.  TWC will be responsible for coordinating the shutdown and
removal of the Hitachi hardware with Primal supervision / approval.

       

      The
summary activities for this project include but are not limited to:

       

      
        	
                ·  

              	
                Datacenter
      labor to decommission power, network,
etc.

              

      

      
        	
                ·  

              	
                Primal
      labor to wipe disks and restore hosts to factory
      specifications.

              

      

      
        	
                ·  

              	
                Primal
      labor to remove hardware from racks and pack for
  shipping.

              

      

      
        	
                ·  

              	
                Primal
      labor to decommission TWC and CLEC VPN hardware and network
      access.

              

      

      
        	
                ·  

              	
                Costs
      for packing materials, shipping and
  coordination.

              

      

      
        	
                ·  

              	
                Final
      month of the datacenter fees (one month after
  cut-over)

              

      

      
        	
                ·  

              	
                Project
      management fees.

              

      

      

      Requirements:

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  
                                                                                                                    
                                                                                                                      
                                                                                                                        
                                                                                                                          
                                                                                                                            
                                                                                                                              
                                                                                                                                
                                                                                                                                  
                                                                                                                                    
                                                                                                                                      
                                                                                                                                        
                                                                                                                                          	 	
                                                                                                                                                  Item

                                                                                                                                                	
                                                                                                                                                  Product

                                                                                                                                                	
                                                                                                                                                  LOE
      in Days

                                                                                                                                                	 
	 	
                                                                                                                                                  a.

                                                                                                                                                	
                                                                                                                                                  Datacenter
      staff labor for 3 days

                                                                                                                                                	
                                                                                                                                                  3
      days

                                                                                                                                                	 
	 	
                                                                                                                                                  b.

                                                                                                                                                	
                                                                                                                                                  Primal
      time to prepare/wipe hosts and storage

                                                                                                                                                	
                                                                                                                                                  12
      days

                                                                                                                                                	 
	 	
                                                                                                                                                  c.

                                                                                                                                                	
                                                                                                                                                  Primal
      time to remove TWC hardware from rack(s)

                                                                                                                                                	
                                                                                                                                                  5
      days

                                                                                                                                                	 
	 	
                                                                                                                                                  d.

                                                                                                                                                	
                                                                                                                                                  Primal
      decommission of Vendors & VPN(s)

                                                                                                                                                	
                                                                                                                                                  5
      days

                                                                                                                                                	 
	 	
                                                                                                                                                  e.

                                                                                                                                                	
                                                                                                                                                  Packing
      labor, materials, services and shipping (not including
SAN)

                                                                                                                                                	
                                                                                                                                                  5
      days + material / fees

                                                                                                                                                	 
	 	
                                                                                                                                                  f.

                                                                                                                                                	
                                                                                                                                                  Primal
      Support for SAN decommission

                                                                                                                                                	
                                                                                                                                                  3
      days

                                                                                                                                                	 
	 	
                                                                                                                                                  g.

                                                                                                                                                	
                                                                                                                                                  Final
      Month datacenter fees (1 month following final cut-over)

                                                                                                                                                	
                                                                                                                                                  One
      Month

                                                                                                                                                	 
	 	
                                                                                                                                                  h.

                                                                                                                                                	
                                                                                                                                                  Primal
      project management fees

                                                                                                                                                	
                                                                                                                                                  6
      days

                                                                                                                                                	 
	 	 
      	 
      	 
      	 
	 	 
      	
                                                                                                                                                  Total
      One-Time Fees

                                                                                                                                                	
                                                                                                                                                  $[***]

                                                                                                                                                	 

                                                                                                                                        

                                                                                                                                      

                                                                                                                                    

                                                                                                                                  

                                                                                                                                

                                                                                                                              

                                                                                                                            

                                                                                                                          

                                                                                                                        

                                                                                                                      

                                                                                                                    

                                                                                                                  

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      
        
          
            
              CONFIDENTIAL                                                       Page 7 of
9

            

             

          

          
             

            
              

            

          

          
             

          

        

      

      
        

        
          	
                  C.  

                	
                  Daily
      or hourly rate and skill classification of personnel to be
      provided:

                

        

         

        Blended rate
for hardware engineers, network technicians, software engineers, database
administrators, operations staff and management.

        
          

          
            	
                    D.  

                  	
                    Travel
      and Living Expenses:

                  

          

           

          
            No travel
will be necessary.  All work will be done remotely or from Primal
offices in Irvine, CA.

             

            
              
                
                  	
                          E.  

                        	
                          Total
      fees for services performed in section B.
above:

                        

                

                The total fees of the services/products to be provided by Primal under this
Schedule 2 are:

              

              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  
                                                                                                                    
                                                                                                                      
                                                                                                                        
                                                                                                                          
                                                                                                                            
                                                                                                                              
                                                                                                                                
                                                                                                                                  
                                                                                                                                    
                                                                                                                                      
                                                                                                                                        
                                                                                                                                          
                                                                                                                                            
                                                                                                                                              
                                                                                                                                                
                                                                                                                                                  
                                                                                                                                                    
                                                                                                                                                      
                                                                                                                                                        	 	
                                                                                                                                                                Item

                                                                                                                                                              	
                                                                                                                                                                Task

                                                                                                                                                              	
                                                                                                                                                                LOE
      in Days

                                                                                                                                                              	Price 	 
	 	
                                                                                                                                                                a.

                                                                                                                                                              	
                                                                                                                                                                Datacenter
      staff labor for 3 days

                                                                                                                                                              	
                                                                                                                                                                3

                                                                                                                                                              	$[***]	 
	 	
                                                                                                                                                                b.

                                                                                                                                                              	
                                                                                                                                                                Primal
      time to prepare/wipe hosts and storage

                                                                                                                                                              	
                                                                                                                                                                12

                                                                                                                                                              	$[***]	 
	 	
                                                                                                                                                                c.

                                                                                                                                                              	
                                                                                                                                                                Primal
      time to remove TWC hardware from rack(s)

                                                                                                                                                              	
                                                                                                                                                                5

                                                                                                                                                              	$[***]	 
	 	
                                                                                                                                                                d.

                                                                                                                                                              	
                                                                                                                                                                Primal
      decommission of Vendors & VPN(s)

                                                                                                                                                              	
                                                                                                                                                                5

                                                                                                                                                              	 $[***]	 
	 	
                                                                                                                                                                e.

                                                                                                                                                              	
                                                                                                                                                                Packing
      labor, materials, services and shipping (not including
SAN)

                                                                                                                                                              	
                                                                                                                                                                5
      days+material / fees

                                                                                                                                                              	 $[***]	 
	 	
                                                                                                                                                                f.

                                                                                                                                                              	
                                                                                                                                                                Primal
      Support for SAN decommission

                                                                                                                                                              	
                                                                                                                                                                3

                                                                                                                                                              	 $[***]	 
	 	
                                                                                                                                                                g.

                                                                                                                                                              	
                                                                                                                                                                Final
      Month datacenter fees (1 month following final cut-over)

                                                                                                                                                              	
                                                                                                                                                                N/A

                                                                                                                                                              	 $[***]	 
	 	
                                                                                                                                                                h.

                                                                                                                                                              	
                                                                                                                                                                Primal
      project management fees

                                                                                                                                                              	
                                                                                                                                                                6

                                                                                                                                                              	 $[***]	 
	 	 
      	 
      	 
      	 	 
	 	 
      	
                                                                                                                                                                Total
      One-Time Fees

                                                                                                                                                              	
                                                                                                                                                                 

                                                                                                                                                              	 $[***]	 

                                                                                                                                                      

                                                                                                                                                    

                                                                                                                                                  

                                                                                                                                                

                                                                                                                                              

                                                                                                                                            

                                                                                                                                          

                                                                                                                                        

                                                                                                                                      

                                                                                                                                    

                                                                                                                                  

                                                                                                                                

                                                                                                                              

                                                                                                                            

                                                                                                                          

                                                                                                                        

                                                                                                                      

                                                                                                                    

                                                                                                                  

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

             

            One-hundred
percent (100%) of the total Fees are to be paid to Primal by March 1st,
2009.

             

            
              
                
                  
                    CONFIDENTIAL                                                       Page 8 of
9

                  

                   

                

                
                  
                  

                  
                    

                  

                

                
                   

                

              

            

          

        

      

         

      
        

        
          	
                  F.  

                	
                  Key
      Project Assumptions:

                

        

        
          

          
            
              	
                      ·

                    	
                       

                    	TWC
      will be responsible for planning and execution of the SAN decommission,
      only after the Primal data mart is confirmed for decommission. 
	·	 	TWC
      will coordinate with Hitachi or other 3rd
      party to properly decommission the SAN from the datacenter.
	·	 	TWC
      will assume all costs related to removal of the Hitachi SAN from the
      datacenter including materials and transportation.
	 ·	 	TWC
      will coordinate all datacenter activities only through the Primal
      representative.
	 ·	 	TWC
      will NOT contact the datacenter directly regarding any aspect of this
      project.
	 ·	 	TWC
      will reimburse Primal for any reasonable incidental material costs or
      expenses that may be incurred for this
project.

            

          

        

      

       

      Any work
to be performed by Primal not covered in this Schedule 2 will require a written
modification to this Schedule 2 as set forth in the Transition
Agreement.

       

      
      

       

      
 

      
        
          
            
              CONFIDENTIAL                                                       Page 9 of
9EXHIBIT
10.1

     

    GARMIN
LTD.

    2005
EQUITY INCENTIVE PLAN

    RESTRICTED
STOCK UNIT/DEFERRED SHARES AWARD AGREEMENT

     

    To:           _______________________
("you" or the "Grantee")

     

    Date of
Grant:            _______________________

     

    NOTICE OF
GRANT:

     

    You have
been granted restricted stock units ("RSUs") (referred to as "Deferred Shares"
under the below referenced Plan) relating to the common shares, $0.005 par value
per share, of Garmin Ltd. ("Shares"), subject to the terms and conditions of the
Garmin Ltd. 2005 Equity Incentive Plan (the "Plan") and the Award Agreement
between you and Garmin Ltd. (the "Company"), attached as Exhibit
A.  Accordingly, provided you satisfy the conditions set forth in this
Notice of Grant and Exhibit A, the Company agrees to pay you Shares as
follows:

     

    
      	
              Number of Deferred

              Shares Granted

            	 
      	
              Dates Payable

            	 
      	
              Date Grantee Must Be

              Employed To Receive Award

            
	 
      	 
      	 
      	 
      	 
      
	
              __________
      Shares

            	 
      	
              __________,
      2009

            	 
      	
              ______________,
      2009

            
	
              __________
      Shares

            	 
      	
              __________,
      2010

            	 
      	
              ______________,
      2010

            
	
              __________
      Shares

            	 
      	
              __________,
      2011

            	 
      	
              ______________,
      2011

            
	
              __________
      Shares

            	 
      	
              __________,
      2012

            	 
      	
              ______________,
      2012

            
	
              __________
      Shares

            	 
      	
              __________,
      2013

            	 
      	
              ______________,
      2013

            

    

    

    In order
to fully understand your rights under the Plan (a copy of which is attached) and
the Award Agreement (the "Award Agreement"), attached as Exhibit A, you are
encouraged to read the Plan and this document carefully.  Please refer
to the Plan document for the definition of capitalized terms used in this
Agreement.

     

    To
properly accept these Deferred Shares, you must enter your E*Trade password and
click the "Accept" button on the previous screen. Acceptances shall be made
electronically within ten (10) days of your receipt of this Notice and Award
Agreement.  By
accepting these Deferred Shares, you are also agreeing to be bound by Exhibit A,
including the restrictive covenants in Section 6 of Exhibit A.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 
      	
              GARMIN
      LTD.

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	
                      /s/  Min
      H. Kao

            	 
      
	 
      	
              Name:

            	
              Min
      H. Kao

            	 
      
	 
      	
              Title:

            	
              Chairman
      and CEO

            	 
      

    

    

    
      
        
        

      

      
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    EXHIBIT
A

     

    AGREEMENT:

     

    In
consideration of the mutual promises and covenants contained herein and other
good and valuable consideration paid by the Grantee to the Company, the Grantee
and the Company agree as follows:

     

    
      	
            	
              Section 1.

            	
              Incorporation of
      Plan

            

    

     

    All
provisions of this Award Agreement and the rights of the Grantee hereunder are
subject in all respects to the provisions of the Plan and the powers of the
Board therein provided.  Capitalized terms used in this Award
Agreement but not defined shall have the meaning set forth in the
Plan.

     

    
      	
            	
              Section 2.

            	
              Grant of Deferred
      Shares

            

    

     

    As of the
Date of Grant identified above, the Company grants to you, subject to the terms
and conditions set forth herein and in the Plan, the opportunity to receive that
number of unrestricted Shares identified below the heading "Number of Deferred
Shares Granted" (the "Deferred Shares") on the Notice of
Grant.  Provided you are employed (and at all times since the Date of
Grant have been employed) by the Company on a Full-Time Basis (which, for
purposes of this Award Agreement, means regularly scheduled to work 30 hours or
more per week) and unless your right to receive the Deferred Shares has been
forfeited pursuant to Section 3 below, you will be paid a number of unrestricted
Shares equal to the aggregate number of your remaining Deferred Shares on the
dates above identified below the heading "Dates Payable" on the Notice of Grant.
For purposes of this Agreement, except where the Board otherwise determines, a
Grantee who, immediately before taking a Company-approved leave of absence, was
employed on a Full-Time Basis will be considered employed on a Full-Time Basis
during the period of such Company-approved leave.

     

    
      	
            	
              Section 3.

            	
              Effect of Termination
      of Affiliation or Cessation as Full-Time
  Employee

            

    

     

    If you have a Termination of
Affiliation or cease to be employed on a Full-Time Basis for any reason,
including termination by the Company with or without Cause, voluntary
resignation, change in employment status from full-time to part-time, death, or
Disability, the effect of such Termination of Affiliation or ceasing to be
employed on a Full-Time Basis on all or any portion of the Deferred Shares is as
provided below.   

     

    
      	
               
      

            	
              (a)

            	
              If
      you have a Termination of Affiliation on account of death or Disability,
      your Deferred Shares that were forfeitable immediately before such
      Termination of Affiliation, if any, shall thereupon become nonforfeitable
      and the Company shall, promptly settle all Deferred Shares by delivery to
      you (or, after your death, to your personal representative or designated
      beneficiary) a number of unrestricted Shares equal to the aggregate number
      of your remaining Deferred Shares;

            

    

     

    
      	
               
      

            	
              (b)

            	
              If
      you have a Termination of Affiliation during the period ("Change of
      Control Period") commencing on a Change of Control and ending on the first
      anniversary of the Change of Control, which Termination of Affiliation is
      initiated by the Company or a Subsidiary other than for Cause, or
      initiated by the Grantee for Good Reason, then your Deferred Shares that
      were forfeitable shall thereupon become nonforfeitable and the Company
      shall immediately settle all Deferred Shares by delivery to you a number
      of unrestricted Shares equal to the aggregate number of your remaining
      Deferred Shares;

            

    

     

    
      
        
        

      

      
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              (c)

            	
              If
      you have a Termination of Affiliation for Cause or for any reason other
      than for, death or Disability, or under the circumstances described in
      immediately above in Section 3(b), your Deferred Shares, to the extent
      forfeitable immediately before such Termination of Affiliation, shall
      thereupon automatically be forfeited and you shall have no further rights
      under this Award Agreement;

            

    

     

    
      	
               
      

            	
              (d)

            	
              If
      you cease to be employed on a Full-Time Basis for any reason other than
      for death or Disability, your Deferred Shares, to the extent forfeitable
      immediately before such cessation of employment on a Full-Time Basis,
      shall thereupon automatically be forfeited and you shall have no further
      rights under this Award Agreement.

            

    

     

    
      	
            	
              Section 4.

            	
              Investment
      Intent

            

    

     

    The
Grantee agrees that the Shares acquired pursuant to the vesting of one or more
tranches of Deferred Shares shall be acquired for his/her own account for
investment only and not with a view to, or for resale in connection with, any
distribution or public offering thereof within the meaning of the Securities Act
of 1933 (the "1933 Act") or other applicable securities laws. If the Board so
determines, any share certificates issued pursuant to this Award Agreement shall
bear a legend to the effect that the Shares have been so
acquired.  The Company may, but in no event shall be required to, bear
any expenses of complying with the 1933 Act, other applicable securities laws or
the rules and regulations of any national securities exchange or other
regulatory authority in connection with the registration, qualification, or
transfer, as the case may be, of this Award Agreement or any Shares acquired
hereunder. The foregoing restrictions on the transfer of the Shares shall be
inoperative if (a) the Company previously shall have been furnished with an
opinion of counsel, satisfactory to it, to the effect that such transfer will
not involve any violation of the 1933 Act and other applicable securities laws
or (b) the Shares shall have been duly registered in compliance with the 1933
Act and other applicable state or federal securities laws. If this Award
Agreement, or the Shares subject to this Award Agreement, are so registered
under the 1933 Act, the Grantee agrees that he will not make a public offering
of the said Shares except on a national securities exchange on which the common
shares of the Company are then listed.

     

    
      	
            	
              Section 5.

            	
              Nontransferability of
      Deferred Shares

            

    

     

    No rights
under this Award Agreement relating to the Deferred Shares may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated,
including, unless specifically approved by the Company, any purported transfer
to a current spouse or former spouse in connection with a legal separation or
divorce proceeding. All rights with respect to the Deferred Shares granted to
the Grantee shall be available during his or her lifetime only to the
Grantee.

     

    
      	
            	
              Section 6.

            	
              Restrictive
      Covenants

            

    

     

    As a
condition of this Award Agreement, the Grantee's right to the Deferred Shares,
and in addition to any restrictive agreements the Grantee may have entered into
with the Company, the Grantee accepts and agrees to be bound as
follows:

     

    
      
        
        

      

      
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                (a)

              	
                Nondisclosure
      of Award Agreement Terms.  The Grantee
      agrees not to disclose or cause to be disclosed at any time, nor authorize
      anyone to disclose any information concerning this Award Agreement except
      (i) as required by law, or (ii) to the Grantee's legal and financial
      advisors who agree to be bound by this Paragraph
  6(a).

              

      

    

     

    
      	
               
      

            	
              (b)

            	
              Noncompetition.  During
      the Grantee's employment and until one year after the Grantee ceases being
      employed by or acting as a consultant or independent contractor to the
      Company or any Subsidiary, the Grantee will not perform services as an
      employee, director, officer, consultant, independent contractor or
      advisor, or invest in, whether in the form of equity or debt, or otherwise
      have an ownership interest in any company, entity or person that directly
      competes anywhere in the United States, the United Kingdom, Taiwan, or in
      any other location outside the United States, the United Kingdom or Taiwan
      where the Company or a Subsidiary conducts or (to the Grantee's knowledge)
      plans to conduct business.  Nothing in this Section 6(b) shall,
      however, restrict the Grantee from making an investment in and owning up
      to one-percent (1%) of the common stock of any company whose stock is
      listed on a national securities exchange or actively traded in an
      over-the-counter market; provided that such investment does not give the
      Grantee the right or ability to control or influence the policy decisions
      of any direct competitor of the Company or a
  Subsidiary.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Noninterference.  During
      the Grantee's employment and until one year after the Grantee ceases being
      employed by or acting as a consultant or independent contractor to the
      Company or any Subsidiary, the Grantee will not, either directly or
      indirectly through another business or person, solicit, entice away, or
      otherwise interfere with any employee, customer, prospective customer,
      vendor, prospective vendor, supplier or other similar business relation or
      (to the Grantee's knowledge) prospective business relation of the Company
      or any Subsidiary.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Nonsolicitation.  During
      the Grantee's employment and until one year after the Grantee ceases being
      employed by or acting as a consultant or independent contractor to the
      Company or any Subsidiary, the Grantee will not, either directly or
      indirectly through another business or person, hire, recruit, employ, or
      attempt to hire, recruit or employ, or facilitate any such acts by others,
      any person then currently employed by the Company or any
      Subsidiary.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Confidentiality.  The
      Grantee acknowledges that it is the policy of the Company and its
      subsidiaries to maintain as secret and confidential all valuable and
      unique information and techniques acquired, developed or used by the
      Company and its subsidiaries relating to their businesses, operations,
      employees and customers ("Confidential Information").  The
      Grantee recognizes that the Confidential Information is the sole and
      exclusive property of the Company and its subsidiaries, and that
      disclosure of Confidential Information would cause damage to the Company
      and its subsidiaries.  The Grantee shall not at any time
      disclose or authorize anyone else to disclose any Confidential Information
      or proprietary information that (A) is disclosed to or known by the
      Grantee as a result or as a consequence of or through the Grantee's
      performance of services for the Company or any Subsidiary, (B) is not
      publicly or generally known outside the Company and (C) relates in any
      manner to the Company's business.  This obligation will continue
      even though the Grantee's employment with the Company or a Subsidiary may
      have terminated.  This paragraph 6(e) shall apply in addition
      to, and not in derogation of any other confidentiality agreements that may
      exist, now or in the future, between the Grantee and the Company or any
      Subsidiary.

            

    

     

    
      
        
        

      

      
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              (f)

            	
              No
      Detrimental Communications.  The Grantee agrees not to
      disclose or cause to be disclosed at any time any untrue, negative,
      adverse or derogatory comments or information about the Company or any
      Subsidiary, about any product or service provided by the Company or any
      Subsidiary, or about prospects for the future of the Company or any
      Subsidiary.

            

    

     

    
      	
               
      

            	
              (g)

            	
              Remedy.  The
      Grantee acknowledges the consideration provided herein (absent the
      Grantee's agreement to this Section 6) is more than the Company is
      obligated to pay, and the Grantee further acknowledges that irreparable
      harm would result from any breach of this Section and monetary damages
      would not provide adequate relief or remedy. Accordingly, the Grantee
      specifically agrees that, if the Grantee breaches any of the Grantee's
      obligations under this Section 6, the Company and any Subsidiary shall be
      entitled to injunctive relief therefor, and in particular, without
      limiting the generality of the foregoing, neither the Company nor any
      Subsidiary shall be precluded from pursuing any and all remedies they may
      have at law or in equity for breach of such obligations.  In
      addition, this Award Agreement and all of Grantee's right hereunder shall
      terminate immediately the first date on which the Grantee engages in such
      activity and the Board shall be entitled on or after the first date on
      which the Grantee engages in such activity to require the Grantee to
      return any Shares obtained by the Grantee's upon vesting of any Deferred
      Shares to the Company and to require the Grantee to repay any proceeds
      received at any time from the sale of Shares obtained by the Grantee
      pursuant to the vesting of any Deferred Shares (plus interest on such
      amount from the date received at a rate equal to the prime lending rate as
      announced from time to time in The Wall Street
      Journal) and to recover all reasonable attorneys' fees and expenses
      incurred in terminating this Award Agreement and recovering such Shares
      and proceeds.

            

    

     

    
      	
            	
              Section 7.

            	
              Status of the
      Grantee

            

    

     

    The
Grantee shall not be deemed a shareholder of the Company with respect to any of
the Shares subject to this Award Agreement until such time as the underlying
Shares shall have been issued to him or her. The Company shall not be required
to issue or transfer any certificates for Shares pursuant to this Award
Agreement until all applicable requirements of law have been complied with and
such Shares shall have been duly listed on any securities exchange on which the
Shares may then be listed.  Grantee (i) is not entitled to receive any
dividends or dividend equivalents, whether such dividends would be paid in cash
or in kind, or receive any other distributions made with respect to the Deferred
Shares and (ii) does not have nor may he or she exercise any voting rights with
respect to any of the Deferred Shares, in both cases (i) and (ii) above, unless
and until the actual Shares underlying the Deferred Shares have been delivered
pursuant to this Award Agreement.

     

    
      	
            	
              Section 8.

            	
              No Effect on Capital
      Structure

            

    

     

    This
Award Agreement shall not affect the right of the Company to reclassify,
recapitalize or otherwise change its capital or debt structure or to merge,
consolidate, convey any or all of its assets, dissolve, liquidate, windup, or
otherwise reorganize.

     

    
      
        
        

      

      
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              Section 9.

            	
              Adjustments

            

    

     

    Notwithstanding
any provision herein to the contrary, in the event of any change in the number
of outstanding Shares effected without receipt of consideration therefor by the
Company, by reason of a merger, reorganization, consolidation, recapitalization,
separation, liquidation, stock dividend, stock split, share combination or other
change in the corporate structure of the Company affecting the Shares, the
aggregate number and class of Shares subject to this Award Agreement shall be
automatically adjusted to accurately and equitably reflect the effect thereon of
such change; provided, however, that any fractional share resulting from such
adjustment shall be eliminated. In the event of a dispute concerning such
adjustment, the decision of the Board shall be conclusive.

     

    
      	
            	
              Section
10.

            	
              Amendments

            

    

     

    This
Award Agreement may be amended only by a writing executed by the Company and the
Grantee which specifically states that it is amending this Award Agreement;
provided that this Award Agreement is subject to the power of the Board to amend
the Plan as provided therein.  Except as otherwise provided in the
Plan, no such amendment shall materially adversely affect the Grantee's rights
under this Award Agreement without the Grantee's consent.

     

    
      	
            	
              Section
11.

            	
              Board
      Authority

            

    

     

    Any
questions concerning the interpretation of this Award Agreement, any adjustments
required to be made under Sections 9 or 10 of this Award Agreement, and any
controversy which arises under this Award Agreement shall be settled by the
Board in its sole discretion.

     

    
      	
            	
              Section
12.

            	
              Withholding

            

    

     

    At the
time the Deferred Shares are delivered to you pursuant to this Award Agreement,
the Company will be obligated to pay withholding taxes on your
behalf.  Accordingly, the Company shall have the power to withhold, or
require you to remit to the Company, an amount sufficient to satisfy any such
federal, state, local or foreign withholding tax requirements.  At the
Company's discretion, withholding may be taken from other compensation payable
to you or may be satisfied by reducing the number of Deferred Shares deliverable
to you.

     

    
      	
            	
              Section
13.

            	
              Notice

            

    

     

    Whenever
any notice is required or permitted hereunder, such notice must be given in
writing by (a) personal delivery, or (b) expedited, recognized delivery service
with proof of delivery, or (c) United States Mail, postage prepaid, certified
mail, return receipt requested, or (d) telecopy or email (provided that the
telecopy or email is confirmed).  Any notice required or permitted to
be delivered hereunder shall be deemed to be delivered on the date which it was
personally delivered, sent to the intended addressee, or, whether actually
received or not, on the third business day after it is deposited in the United
States mail, certified or registered, postage prepaid, addressed to the person
who is to receive it at the address which such person has theretofore specified
by written notice delivered in accordance herewith. The Company or the Grantee
may change, at any time and from time to time, by written notice to the other,
the address specified for receiving notices.  Until changed in
accordance herewith, the Company's address for receiving notices shall be Garmin
Ltd., Attention: General Counsel, 1200 East 151st Street, Olathe, KS
66062.  Unless changed, the Grantee's address for receiving notices
shall be the last known address of the Grantee on the Company's
records.  It shall be the Grantee's sole responsibility to notify the
Company as to any change in his or her address.  Such notification
shall be made in accordance with this Section 13.

     

    
      
        
        

      

      
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              Section
14.

            	
              Severability

            

    

     

    If any
part of this Award Agreement is declared by any court or governmental authority
to be unlawful or invalid, such unlawfulness or invalidity shall not serve to
invalidate any part of this Award Agreement not declared to be unlawful or
invalid.  Any part so declared unlawful or invalid shall, if possible,
be construed in a manner which gives effect to the terms of such part to the
fullest extent possible while remaining lawful and
valid.  Additionally, if any of the covenants in Section 6 are
determined by a court to be unenforceable in whole or in part because of such
covenant's duration or geographical or other scope, such court shall have the
power to modify the duration or scope of such provision as the case may be, so
as to cause such covenant, as so modified, to be enforceable.

     

    
      	
            	
              Section
15.

            	
              Binding
      Effect

            

    

     

    This
Award Agreement shall bind, and, except as specifically provided herein, shall
inure to the benefit of the respective heirs, legal representatives, successors
and assigns of the parties hereto.

     

    
      	
            	
              Section
16.

            	
              Governing
      Law

            

    

     

    This
Award Agreement and the rights of all persons claiming hereunder shall be
construed and determined in accordance with the laws of the State of Kansas
without giving effect to the principles of the Conflict of Laws to the
contrary.

     

    
      
        
        

      

      
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