Document:

Unassociated Document

    
      SECURITIES
PURCHASE AGREEMENT

    

     

    This
Securities Purchase Agreement (this “Agreement”) is dated
as of June 25, 2010, between Neostem, Inc., a Delaware corporation (the “Company”), and each
purchaser identified on the signature pages hereto (each, including its
successors and assigns, a “Purchaser” and
collectively the “Purchasers”).

     

    WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to
an effective registration statement under the Securities Act of 1933, as amended
(the “Securities
Act”), the Company desires to issue and sell to each Purchaser, and each
Purchaser, severally and not jointly, desires to purchase from the Company,
securities of the Company as more fully described in this
Agreement.

     

    NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
and for other good and valuable consideration the receipt and adequacy of which
are hereby acknowledged, the Company and each Purchaser agree as
follows:

     

    ARTICLE
I.

    DEFINITIONS

     

    1.1            Definitions.  In
addition to the terms defined elsewhere in this Agreement, for all purposes of
this Agreement, the following terms have the meanings set forth in this Section
1.1:

     

    “Action” shall have
the meaning ascribed to such term in Section 3.1(j).

     

    “Affiliate” means any
Person that, directly or indirectly through one or more intermediaries, controls
or is controlled by or is under common control with a Person as such terms are
used in and construed under Rule 405 under the Securities Act.

     

    “Board of Directors”
means the board of directors of the Company.

     

    “Business Day” means
any day except any Saturday, any Sunday, any day which is a federal legal
holiday in the United States or any day on which banking institutions in the
State of New York are authorized or required by law or other governmental action
to close.

     

    “Closing” means the
closing of the purchase and sale of the Securities pursuant to Section
2.1.

     

    “Closing Date” means
the Trading Day on which all of the Transaction Documents have been executed and
delivered by the applicable parties thereto, and all conditions precedent to (i)
the Purchasers’ obligations to pay the Subscription Amount and (ii) the
Company’s obligations to deliver the Securities, in each case, have been
satisfied or waived, but in no event later than the third Trading Day following
the date hereof.

     

    “Commission” means the
United States Securities and Exchange Commission.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Common Stock” means
the common stock of the Company, par value $0.001 per share, and any other class
of securities into which such securities may hereafter be reclassified or
changed.

     

    “Common Stock
Equivalents” means any securities of the Company or the Subsidiaries
which would entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, right, option, warrant
or other instrument that is at any time convertible into or exercisable or
exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

     

    “Company Counsel”
means Lowenstein Sandler PC, with offices located at 65 Livingston Avenue,
Roseland, New Jersey 07068.

     

    “Evaluation Date”
shall have the meaning ascribed to such term in Section 3.1(r).

     

    “Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

    

    “Exempt Issuance”
means the issuance of (a) shares of Common Stock or options to employees,
officers, consultants or directors of the Company pursuant to any stock or
option plan duly adopted for such purpose, by a majority of the non-employee
members of the Board of Directors or a majority of the members of a committee of
non-employee directors established for such purpose, and up to one million
shares, warrants or options outside of such plans, (b) securities upon the
exercise or exchange of or conversion of any Securities issued hereunder and/or
other securities exercisable or exchangeable for or convertible into shares of
Common Stock issued and outstanding on the date of this Agreement, provided that
such securities have not been amended since the date of this Agreement to
increase the number of such securities or to decrease the exercise price,
exchange price or conversion price of such securities, and (c) securities issued
pursuant to acquisitions or strategic transactions approved by a majority of the
directors of the Company, provided that any such issuance shall only be to a
Person (or to the equityholders of a Person) which is, itself or through its
subsidiaries, an operating company or an owner of an asset in a business
synergistic with the business of the Company and shall provide to the Company
additional benefits in addition to the investment of funds, but shall not
include a transaction in which the Company is issuing securities primarily for
the purpose of raising capital or to an entity whose primary business is
investing in securities.

     

    “FDA” shall have the
meaning ascribed to such term in Section 3.1(gg).

     

    “FDCA” shall have the
meaning ascribed to such term in Section 3.1(gg).

     

    “GAAP” shall have the
meaning ascribed to such term in Section 3.1(h).

     

    “Intellectual Property
Rights” shall have the meaning ascribed to such term in Section
3.1(o).

     

    
      
        
        

      

      
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    “Liens” means a lien,
charge, pledge, security interest, encumbrance or other
restriction.

     

    “Material Adverse
Effect” shall have the meaning assigned to such term in Section
3.1(b).

     

    “Material Permits”
shall have the meaning ascribed to such term in Section 3.1(m).

     

    “Per Share Purchase
Price” equals $2.15, subject to adjustment
for reverse and forward stock splits, stock dividends, stock combinations and
other similar transactions of the Common Stock that occur after the date of this
Agreement and before the Closing Date.

     

    “Person” means an
individual or corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any
kind.

     

    “Pharmaceutical
Product” shall have the meaning ascribed to such term in Section
3.1(gg).

     

    “Proceeding” means an
action, claim, suit, investigation or proceeding (including, without limitation,
an informal investigation or partial proceeding, such as a deposition), whether
commenced or threatened.

     

    “Prospectus” means the
final prospectus filed for the Registration Statement.

     

    “Prospectus
Supplement” means the supplement to the Prospectus complying with Rule
424(b) of the Securities Act that is filed with the Commission and delivered by
the Company to each Purchaser at the Closing.

     

    “Purchaser Party”
shall have the meaning ascribed to such term in Section 4.8.

     

    “Registration
Statement” means the effective registration statement with Commission
file No. 333-166169 which registers the sale of the Shares, the Warrants and the
Warrant Shares to the Purchasers.

     

    “Required Approvals”
shall have the meaning ascribed to such term in Section 3.1(e).

     

    “Rule 144” means Rule
144 promulgated by the Commission pursuant to the Securities Act, as such Rule
may be amended or interpreted from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
purpose and effect as such Rule.

     

    “Rule 424” means Rule
424 promulgated by the Commission pursuant to the Securities Act, as such Rule
may be amended or interpreted from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
purpose and effect as such Rule.

     

    
      
        
        

      

      
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     “SEC Reports” shall
have the meaning ascribed to such term in Section 3.1(h).

     

    “Securities” means the
Shares, the Warrants and the Warrant Shares.

     

    “Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

     

    “Shares” means the
shares of Common Stock issued or issuable to each Purchaser pursuant to this
Agreement.

     

    “Short Sales” means
all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange
Act (but shall not be deemed to include the location and/or reservation of
borrowable shares of Common Stock). 

     

     “Subscription Amount”
means, as to each Purchaser, the aggregate amount to be paid for Shares and
Warrants purchased hereunder as specified below such Purchaser’s name on the
signature page of this Agreement and next to the heading “Subscription Amount,”
in United States dollars and in immediately available funds.

     

    “Subsidiary” means any
subsidiary of the Company and shall, where applicable, also include any direct
or indirect subsidiary of the Company formed or acquired after the date
hereof.

     

    “Trading Day” means a
day on which the principal Trading Market is open for trading.

     

    “Trading Market” means
any of the following markets or exchanges on which the Common Stock is listed or
quoted for trading on the date in question: the NYSE AMEX, the Nasdaq Capital
Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York
Stock Exchange or the OTC Bulletin Board (or any successors to any of the
foregoing).

     

    “Transaction
Documents” means this Agreement, the Warrants and any other documents or
agreements executed in connection with the transactions contemplated
hereunder.

     

    “Transfer Agent” means
Continental Stock Transfer & Trust Company, the current transfer agent of
the Company, with a mailing address of 17 Battery Place, 8th Floor,
New York, New York 10004 and a facsimile number of (212) 509-5150, and any
successor transfer agent of the Company.

     

    “Warrants” means,
collectively, the Common Stock Purchase Warrants delivered to the Purchasers at
the Closing in accordance with Section 2.2(a) hereof, which Warrants shall be
exercisable immediately and have a term of exercise equal to two years, in the
form of Exhibit
A attached hereto.

     

    “Warrant Shares” means
the shares of Common Stock issuable upon exercise of the Warrants.

     

    “WS” means Weinstein
Smith LLP with offices located at 420 Lexington Avenue, Suite 2620, New York,
New York 10170-0002.

     

    
      
        
        

      

      
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    ARTICLE
II.

    PURCHASE
AND SALE

     

    2.1           Closing.  On
the Closing Date, upon the terms and subject to the conditions set forth herein,
substantially concurrent with the execution and delivery of this Agreement by
the parties hereto, the Company agrees to sell, and the Purchasers, severally
and not jointly,  agree to purchase, up to an aggregate of $5,000,000
of Shares.  Each Purchaser shall deliver to the Company, via wire
transfer or a certified check of immediately available funds equal to such
Purchaser’s Subscription Amount as set forth on the signature page hereto
executed by such Purchaser and the Company shall deliver to each Purchaser its
respective Shares and a Warrant as determined pursuant to Section 2.2(a), and
the Company and each Purchaser shall deliver the other items set forth in
Section 2.2 deliverable at the Closing.  Upon satisfaction of the
covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall
occur at the offices of WS or such other location as the parties shall mutually
agree.

     

    
      2.2           Deliveries.

       

      (a)  On
or prior to the Closing Date, the Company shall deliver or cause to be delivered
to each Purchaser the following:

       

      (i)  this
Agreement duly executed by the Company;

       

      (ii)  a
legal opinion of counsel to the Company, substantially in the form of Exhibit B attached
hereto;

       

      (iii)  a
copy of the irrevocable instructions to the Company’s transfer agent instructing
the transfer agent to deliver via The Depository Trust Company Deposit or
Withdrawal at Custodian system (“DWAC”) Shares equal
to such Purchaser’s Subscription Amount divided by the Per Share Purchase Price,
registered in the name of such Purchaser;

       

      (iv)  a
Warrant registered in the name of such Purchaser to purchase up to a number of
shares of Common Stock equal to 25% of such Purchaser’s
Shares, with an exercise price equal to $2.75, subject to adjustment
therein (such Warrant certificate may be delivered within three Trading Days of
the Closing Date); and

       

      (v)  the
Prospectus and Prospectus Supplement (which may be delivered in accordance with
Rule 172 under the Securities Act).

       

      
        
          
          

        

        
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      (b)  On
or prior to the Closing Date, each Purchaser shall deliver or cause to be
delivered to the Company the following:

       

      (i)  this
Agreement duly executed by such Purchaser; and

       

      (ii)  such
Purchaser’s Subscription Amount by wire transfer to the account as specified in
writing by the Company.

       

      2.3           Closing
Conditions.

       

      (a)  The
obligations of the Company hereunder in connection with the Closing are subject
to the following conditions being met:

       

      (i)  the
accuracy in all material respects on the Closing Date of the representations and
warranties of the Purchasers contained herein (unless as of a specific date
therein in which case they shall be accurate as of such date);

       

      (ii)  all
obligations, covenants and agreements of each Purchaser required to be performed
at or prior to the Closing Date shall have been performed; and

       

      (iii)  the
delivery by each Purchaser of the items set forth in Section 2.2(b) of this
Agreement.

       

      (b)  The
respective obligations of the Purchasers hereunder in connection with the
Closing are subject to the following conditions being met:

       

      (i)  the
accuracy in all material respects when made and on the Closing Date of the
representations and warranties of the Company contained herein (unless as of a
specific date therein);

       

      (ii)  all
obligations, covenants and agreements of the Company required to be performed at
or prior to the Closing Date shall have been performed;

       

      (iii)  the
delivery by the Company of the items set forth in Section 2.2(a) of this
Agreement;

       

      (iv)  there
shall have been no Material Adverse Effect with respect to the Company since the
date hereof; and

       

      (v)  from
the date hereof to the Closing Date, trading in the Common Stock shall not have
been suspended by the Commission or the Company’s principal Trading Market, and,
at any time prior to the Closing Date, trading in securities generally as
reported by Bloomberg L.P. shall not have been suspended or limited, or minimum
prices shall not have been established on securities whose trades are reported
by such service, or on any Trading Market, nor shall a banking moratorium have
been declared either by the United States or New York State authorities nor
shall there have occurred any material outbreak or escalation of hostilities or
other national or international calamity of such magnitude in its effect on, or
any material adverse change in, any financial market which, in each case, in the
reasonable judgment of such Purchaser, makes it impracticable or inadvisable to
purchase the Securities at the Closing.

       

      
        
          
          

        

        
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      ARTICLE
III.

      REPRESENTATIONS
AND WARRANTIES

       

      3.1           Representations and
Warranties of the Company.  The Company hereby makes the
following representations and warranties to each Purchaser:

       

      (a)  Subsidiaries.  All
of the active direct and indirect subsidiaries of the Company are set forth in
the Prospectus and Prospectus Supplement.  The Company owns, directly
or indirectly, all of the capital stock or other equity interests of each
Subsidiary in the United States free and clear of any Liens, and all of the
issued and outstanding shares of capital stock of each Subsidiary in the United
States are validly issued and are fully paid, non-assessable and free of
preemptive and similar rights to subscribe for or purchase
securities.  If the Company has no subsidiaries, all other references
to the Subsidiaries or any of them in the Transaction Documents shall be
disregarded.

       

      (b)  Organization and
Qualification.  The Company and each of the Subsidiaries is an
entity duly incorporated or otherwise organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or
organization, with the requisite power and authority to own and use its
properties and assets and to carry on its business as currently
conducted.  Neither the Company nor any Subsidiary is in material
violation nor default of any of the provisions of its respective certificate or
articles of incorporation, bylaws or other organizational or charter
documents.  Each of the Company and the Subsidiaries is duly qualified
to conduct business and is in good standing as a foreign corporation or other
entity in each jurisdiction in which the nature of the business conducted or
property owned by it makes such qualification necessary, except where the
failure to be so qualified or in good standing, as the case may be, could not
have or reasonably be expected to result in: (i) a material adverse effect on
the legality, validity or enforceability of any Transaction Document, (ii) a
material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Company and the
Subsidiaries, taken as a whole, or (iii) a material adverse effect on the
Company’s ability to perform in any material respect on a timely basis its
obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse
Effect”) and no Proceeding has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such
power and authority or qualification.

       

      
        
          
          

        

        
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      (c)  Authorization;
Enforcement.  The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by this
Agreement and each of the other Transaction Documents and otherwise to carry out
its obligations hereunder and thereunder.  The execution and delivery
of this Agreement each of the other Transaction Documents by the Company and the
consummation by it of the transactions contemplated hereby and thereby have been
or will be duly authorized by all necessary action on the part of the Company
and no further action will be required by the Company, the Board of Directors or
the Company’s stockholders in connection herewith or therewith other than in
connection with the Required Approvals.  This Agreement and each other
Transaction Document to which it is a party has been (or upon delivery will have
been) duly executed by the Company and, when delivered in accordance with the
terms hereof and thereof, will constitute the valid and binding obligation of
the Company enforceable against the Company in accordance with its terms, except
(i) as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws
relating to the availability of specific performance, injunctive relief or other
equitable remedies and (iii) insofar as indemnification and contribution
provisions may be limited by applicable law.

       

      (d)  No
Conflicts.  The execution, delivery and performance by the
Company of this Agreement and the other Transaction Documents to which it is a
party, the issuance and sale of the Securities and the consummation by it of the
transactions contemplated hereby and thereby do not and will not (i) conflict
with or violate any provision of the Company’s or any Subsidiary’s certificate
or articles of incorporation, bylaws or other organizational or charter
documents, or (ii) conflict with, or constitute a default (or an event that with
notice or lapse of time or both would become a default) under, result in the
creation of any Lien upon any of the properties or assets of the Company or any
Subsidiary, or give to others any rights of termination, amendment, acceleration
or cancellation (with or without notice, lapse of time or both) of, any
agreement, credit facility, debt or other instrument (evidencing a Company or
Subsidiary debt or otherwise) or other understanding to which the Company or any
Subsidiary is a party or by which any property or asset of the Company or any
Subsidiary is bound or affected, or (iii) subject to the Required Approvals,
conflict with or result in a violation of any law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental
authority to which the Company or a Subsidiary is subject (including federal and
state securities laws and regulations), or by which any property or asset of the
Company or a Subsidiary is bound or affected; except in the case of each of
clauses (ii) and (iii), such as could not have or reasonably be expected to
result in a Material Adverse Effect.

       

      (e)  Filings, Consents and
Approvals.  The Company is not required to obtain any consent,
waiver, authorization or order of, give any notice to, or make any filing or
registration with, any court or other federal, state, local or other
governmental authority or other Person in connection with the execution,
delivery and performance by the Company of the Transaction Documents, other
than: (i) the filings required pursuant to Section 4.4 of this Agreement, (ii)
the filing with the Commission of the Prospectus Supplement, (iii)
application(s) to each applicable Trading Market for the listing of the Shares
and Warrant Shares for trading thereon in the time and manner required thereby
and (iv) such filings as are required to be made under applicable state
securities laws (collectively, the “Required
Approvals”).

       

      
        
          
          

        

        
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      (f)  Issuance of the Securities;
Registration.  The Securities are duly authorized and, when
issued and paid for in accordance with the applicable Transaction Documents,
will be duly and validly issued, fully paid and nonassessable, free and clear of
all Liens imposed by the Company.  The Warrant Shares, when issued in
accordance with the terms of the Warrants, will be validly issued, fully paid
and nonassessable, free and clear of all Liens imposed by the
Company.  The Company has reserved from its duly authorized capital
stock the maximum number of shares of Common Stock issuable pursuant to this
Agreement and the Warrants. The Company has prepared and filed the Registration
Statement in conformity with the requirements of the Securities Act, which
became effective on May 11, 2010 (the “Effective Date”),
including the Prospectus, and such amendments and supplements thereto as may
have been required to the date of this Agreement.  The Registration
Statement is effective under the Securities Act and no stop order preventing or
suspending the effectiveness of the Registration Statement or suspending or
preventing the use of the Prospectus has been issued by the Commission and no
proceedings for that purpose have been instituted or, to the knowledge of the
Company, are threatened by the Commission.  The Company, if required
by the rules and regulations of the Commission, proposes to file the Prospectus,
with the Commission pursuant to Rule 424(b).  At the time the
Registration Statement and any amendments thereto became effective, at the date
of this Agreement and at the Closing Date, the Registration Statement and any
amendments thereto conformed and will conform in all material respects to the
requirements of the Securities Act and did not and will not contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading; and
the Prospectus and any amendments or supplements thereto, at time the Prospectus
or any amendment or supplement thereto was issued and at the Closing Date,
conformed and will conform in all material respects to the requirements of the
Securities Act and did not and will not contain an untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

       

      (g)  Capitalization.  The
capitalization of the Company is as set forth in the SEC Reports.  The
Company has not issued any capital stock in any material amounts since its most
recently filed periodic report (including current reports) under the Exchange
Act, other than pursuant to the exercise of employee stock options under the
Company’s stock option plans, the issuance of shares of Common Stock to
employees pursuant to the Company’s employee stock purchase plans and pursuant
to the conversion and/or exercise of Common Stock Equivalents outstanding as of
the date of the most recently filed periodic report under the Exchange
Act.  No Person has any right of first refusal, preemptive right,
right of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents other than those described in the SEC
Reports or rights of an immaterial amount.  Except as a result of the
purchase and sale of the Securities, there are no outstanding options, warrants,
scrip rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities, rights or obligations convertible into or
exercisable or exchangeable for, or giving any Person any right to subscribe for
or acquire, any shares of Common Stock, or contracts, commitments,
understandings or arrangements by which the Company or any Subsidiary is or may
become bound to issue additional shares of Common Stock or Common Stock
Equivalents other than those disclosed in the SEC Reports or those in an
immaterial amount (less than one million shares) or grants under the Company’s
stock option plans.  The issuance and sale of the Securities will not
obligate the Company to issue shares of Common Stock or other securities to any
Person (other than the Purchasers) and will not result in a right of any holder
of Company securities to adjust the exercise, conversion, exchange or reset
price under any of such securities. All of the outstanding shares of capital
stock of the Company are duly authorized, validly issued, fully paid and
nonassessable, have been issued in compliance with all federal and state
securities laws, and none of such outstanding shares was issued in violation of
any preemptive rights or similar rights to subscribe for or purchase
securities.  No further approval or authorization of any stockholder,
the Board of Directors or others is required for the issuance and sale of the
Securities.  There are no stockholders agreements, voting agreements
or other similar agreements with respect to the Company’s capital stock to which
the Company is a party or, to the knowledge of the Company, between or among any
of the Company’s stockholders.

       

      
        
          
          

        

        
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      (h)  SEC Reports; Financial
Statements.  The Company has filed all reports, schedules,
forms, statements and other documents required to be filed by the Company under
the Securities Act and the Exchange Act, including pursuant to Section 13(a) or
15(d) thereof, for the two years preceding the date hereof (or such shorter
period as the Company was required by law or regulation to file such material)
(the foregoing materials, including the exhibits thereto and documents
incorporated by reference therein, together with the Prospectus and the
Prospectus Supplement, being collectively referred to herein as the “SEC Reports”) on a
timely basis or has received a valid extension of such time of filing and has
filed any such SEC Reports prior to the expiration of any such
extension.  None of the SEC Reports, when filed, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading. The
financial statements of the Company included in the SEC Reports comply in all
material respects with applicable accounting requirements and the rules and
regulations of the Commission with respect thereto as in effect at the time of
filing.  Such financial statements have been prepared in accordance
with United States generally accepted accounting principles applied on a
consistent basis during the periods involved (“GAAP”), except as may
be otherwise specified in such financial statements or the notes thereto and
except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial
position of the Company and its consolidated Subsidiaries as of and for the
dates thereof and the results of operations and cash flows for the periods then
ended, subject, in the case of unaudited statements, to normal, immaterial,
year-end audit adjustments.

       

      (i)  Material Changes;
Undisclosed Events, Liabilities or Developments.  Since the
date of the latest audited financial statements included within the SEC Reports,
except as specifically disclosed in a subsequent SEC Report filed prior to the
date hereof, (i) there has been no event, occurrence or development that has had
or that could reasonably be expected to result in a Material Adverse Effect,
(ii) the Company has not incurred any material liabilities (contingent or
otherwise) other than (A) trade payables and accrued expenses incurred in the
ordinary course of business consistent with past practice and (B) liabilities
not required to be reflected in the Company’s financial statements pursuant to
GAAP or disclosed in filings made with the Commission, (iii) the Company has not
altered its method of accounting, (iv) the Company has not declared or made any
dividend or distribution of cash or other property to its stockholders or
purchased, redeemed or made any agreements to purchase or redeem any shares of
its capital stock and (v) except as disclosed in the SEC Reports, the Company
has not issued any equity securities to any officer, director or Affiliate,
except pursuant to existing Company stock option plans.  The Company
does not have pending before the Commission any request for confidential
treatment of information.  Except for the issuance of the Securities
contemplated by this Agreement or as set forth in the Prospectus and Prospectus
Supplement, no event, liability, fact, circumstance, occurrence or development
has occurred or exists or is reasonably expected to occur or exist with respect
to the Company or its Subsidiaries or their respective businesses, prospects,
properties, operations, assets or financial condition that would be required to
be disclosed by the Company under applicable securities laws at the time this
representation is made or deemed made that has not been publicly disclosed at
least 1 Trading Day prior to the date that this representation is
made.

       

      
        
          
          

        

        
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      (j)  Litigation.  There
is no material action, suit, inquiry, notice of violation, proceeding or
investigation pending or, to the knowledge of the Company, threatened against or
affecting the Company, any Subsidiary or any of their respective properties
before or by any court, arbitrator, governmental or administrative agency or
regulatory authority (federal, state, county, local or foreign) (collectively,
an “Action”)
which (i) adversely affects or challenges the legality, validity or
enforceability of any of the Transaction Documents or the Securities or (ii)
could, if there were an unfavorable decision, reasonably be expected to result
in a Material Adverse Effect.  Neither the Company nor any Subsidiary,
nor, to the knowledge of the Company, any director or officer thereof, is or has
been the subject of any Action involving a claim of violation of or liability
under federal or state securities laws or a claim of breach of fiduciary
duty.  There has not been, and to the knowledge of the Company, there
is not pending or contemplated, any formal investigation by the Commission
involving the Company or, to the Company’s knowledge, any current director or
officer of the Company.  The Commission has not issued any stop order
or other order suspending the effectiveness of any registration statement filed
by the Company or any Subsidiary under the Exchange Act or the Securities
Act.

       

      (k)  Labor
Relations.  No organized labor disturbance by the employees of
the Company or its Subsidiaries exists or, to the best of the Company’s
knowledge, is imminent and the Company has no actual knowledge of any existing
or imminent labor disturbance by the employees of any of its principal
suppliers, manufacturers, customers or contractors, which might be expected to
have a Material Adverse Effect.  The Company is not aware that any key
employee or significant group of employees of the Company or its Subsidiaries
plan to terminate employment with the Company or any of its
Subsidiaries.

       

      (l)  Compliance.  Neither
the Company nor any Subsidiary: (i) is in default under or in violation of (and
no event has occurred that has not been waived that, with notice or lapse of
time or both, would result in a default by the Company or any Subsidiary under),
nor has the Company or any Subsidiary received notice of a claim that it is in
default under or that it is in violation of, any indenture, loan or credit
agreement or any other agreement or instrument to which it is a party or by
which it or any of its properties is bound (whether or not such default or
violation has been waived), (ii) is in violation of any judgment, decree or
order of any court, arbitrator or other governmental authority or (iii) is or
has been in violation of any statute, rule, ordinance or regulation of any
governmental authority, including without limitation all foreign, federal, state
and local laws relating to taxes, environmental protection, occupational health
and safety, product quality and safety and employment and labor matters, except
in each case as could not have or reasonably be expected to result in a Material
Adverse Effect.

       

      
        
          
          

        

        
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      (m)  Regulatory
Permits.  The Company and the Subsidiaries possess all material
certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities, including the U.S. Food and Drug
Administration, necessary to conduct their respective businesses as described in
the SEC Reports, except where the failure to possess such permits could not
reasonably be expected to result in a Material Adverse Effect (“Material Permits”),
and neither the Company nor any Subsidiary has received any notice of
proceedings relating to the revocation or modification of any Material
Permit.

       

      (n)  Title to
Assets.  The Company and the Subsidiaries have good and
marketable title in fee simple to all real property owned by them and good and
marketable title in all personal property owned by them that is material to the
business of the Company and the Subsidiaries, in each case free and clear of all
Liens, except for (i) Liens as do not materially affect the value of such
property and do not materially interfere with the use made and proposed to be
made of such property by the Company and the Subsidiaries and (ii) Liens for the
payment of federal, state or other taxes, for which appropriate reserves have
been made therefore in accordance with GAAP and, the payment of which is neither
delinquent nor subject to penalties.  Any real property and facilities
held under lease by the Company and the Subsidiaries are held by them under
valid, subsisting and enforceable leases with which the Company and the
Subsidiaries are in material compliance.

       

      (o)  Intellectual
Property.  The Company and the Subsidiaries have, or have
rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights,
licenses and other intellectual property rights and similar rights necessary or
required for use in connection with their respective businesses as described in
the SEC Reports and which the failure to so have could have a Material Adverse
Effect (collectively, the “Intellectual Property
Rights”).  None of, and neither the Company nor any Subsidiary
has received a notice (written or otherwise) that any of, the Intellectual
Property Rights has expired, terminated or been abandoned, or is expected to
expire or terminate or be abandoned, within two (2) years from the date of this
Agreement.  Neither the Company nor any Subsidiary has received, since
the date of the latest audited financial statements included within the SEC
Reports, a written notice of a claim or otherwise has any knowledge that the
Intellectual Property Rights violate or infringe upon the rights of any Person,
except as could not have or reasonably be expected to have a Material Adverse
Effect.  To the knowledge of the Company, all such Intellectual
Property Rights are enforceable and there is no existing infringement by another
Person of any of the Intellectual Property Rights except as could not have or
reasonably be expected to have a Material Adverse Effect.  The Company
and its Subsidiaries have taken reasonable security measures to protect the
secrecy, confidentiality and value of all of their intellectual properties,
except where failure to do so could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

       

      
        
          
          

        

        
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      (p)  Insurance.  The
Company and the Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are
customary or reasonable in the businesses in which the Company and the
Subsidiaries are engaged, including, but not limited to, directors and officers
insurance coverage at least equal to the aggregate Subscription
Amount.  Neither the Company nor any Subsidiary has any reason to
believe that it will not be able to renew its existing insurance coverage as and
when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business without a significant increase in
cost.

       

      (q)  Transactions With Affiliates
and Employees.  Except as set forth in the SEC Reports, none of
the officers or directors of the Company or any Subsidiary and, to the knowledge
of the Company, none of the employees of the Company or any Subsidiary is
presently a party to any transaction with the Company or any Subsidiary (other
than for services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or
by, providing for rental of real or personal property to or from, providing for
the borrowing of money from or lending of money to or otherwise requiring
payments to or from any officer, director or such employee or, to the knowledge
of the Company, any entity in which any officer, director, or any such employee
has a substantial interest or is an officer, director, trustee, stockholder,
member or partner, in each case in excess of $120,000 other than for (i) payment
of salary or consulting fees for services rendered, (ii) reimbursement for
expenses incurred on behalf of the Company and (iii) other employee benefits,
including stock option agreements under any stock option plan of the
Company.

       

      (r)  Sarbanes-Oxley; Internal
Accounting Controls.  The Company and the Subsidiaries is in
compliance in all material respects with any and all applicable requirements of
the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any
and all applicable rules and regulations promulgated by the Commission
thereunder that are effective as of the date hereof and as of the Closing Date
except as described in the SEC Reports, including Item 9-A of the Company’s 2009
Annual Report on Form 10-K).  Except as described in the SEC Reports,
including Item 9-A of the Company’s 2009 Annual Report on Form 10-K), the
Company and the Subsidiaries maintain a system of internal accounting controls
sufficient to provide reasonable assurance that: (i) transactions are executed
in accordance with management’s general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain asset accountability, (iii)
access to assets is permitted only in accordance with management’s general or
specific authorization, and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences. The Company and the Subsidiaries have
established disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such
disclosure controls and procedures to ensure that information required to be
disclosed by the Company in the reports it files or submits under the Exchange
Act is recorded, processed, summarized and reported, within the time periods
specified in the Commission’s rules and forms.  The Company’s
certifying officers have evaluated the effectiveness of the disclosure controls
and procedures of the Company and the Subsidiaries as of the end of the period
covered by the most recently filed periodic report under the Exchange Act (such
date, the “Evaluation
Date”).  The Company presented in its most recently filed
periodic report under the Exchange Act the conclusions of the certifying
officers about the effectiveness of the disclosure controls and procedures based
on their evaluations as of the Evaluation Date.  Since the Evaluation
Date, there have been no changes in the internal control over financial
reporting (as such term is defined in the Exchange Act) of the Company and its
Subsidiaries that have materially affected, or is reasonably likely to
materially affect, the internal control over financial reporting of the Company
and its Subsidiaries.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      (s)  Certain
Fees.  Except as set forth in the Prospectus Supplement, no
brokerage or finder’s fees or commissions are or will be payable by the Company
or any Subsidiary to any broker, financial advisor or consultant, finder,
placement agent, investment banker, bank or other Person with respect to the
transactions contemplated by the Transaction Documents.  The
Purchasers shall have no obligation with respect to any fees or with respect to
any claims made by or on behalf of other Persons for fees of a type contemplated
in this Section that may be due in connection with the transactions contemplated
by the Transaction Documents.

       

      (t)  Investment Company.
The Company is not, and is not an Affiliate of, and immediately after receipt of
payment for the Securities, will not be or be an Affiliate of, an “investment
company” within the meaning of the Investment Company Act of 1940, as
amended.  The Company shall conduct its business in a manner so that
it will not become an “investment company” subject to registration under the
Investment Company Act of 1940, as amended.

       

      (u)  Registration
Rights.  Except as disclosed in the SEC Reports, no Person has
any right to cause the Company or any Subsidiary to effect the registration
under the Securities Act of any securities of the Company or any
Subsidiary.

       

      (v)  Listing and Maintenance
Requirements.  The Common Stock is registered pursuant to
Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action
designed to, or which to its knowledge is likely to have the effect of,
terminating the registration of the Common Stock under the Exchange Act nor has
the Company received any notification that the Commission is contemplating
terminating such registration.  The Company has not, in the 12 months
preceding the date hereof, received notice from any Trading Market on which the
Common Stock is or has been listed or quoted to the effect that the Company is
not in compliance with the listing or maintenance requirements of such Trading
Market. The Company is, and has no reason to believe that it will not in the
foreseeable future continue to be, in compliance with all such listing and
maintenance requirements.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      (w)  Application of Takeover
Protections.  Assuming no Purchaser will beneficially own more
than 10% of the issued and outstanding Common Stock immediately following the
Closing, the Company and the Board of Directors have taken all necessary action,
if any, in order to render inapplicable any control share acquisition, business
combination, poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under the Company’s certificate of
incorporation (or similar charter documents) or the laws of its state of
incorporation that is or could become applicable to the Purchasers as a result
of the Purchasers and the Company fulfilling their obligations or exercising
their rights under the Transaction Documents, including without limitation as a
result of the Company’s issuance of the Securities and the Purchasers’ ownership
of the Securities.

       

      (x)  Disclosure.  Except
with respect to the material terms and conditions of the transactions
contemplated by the Transaction Documents, the Company confirms that neither it
nor any other Person acting on its behalf has provided any of the Purchasers or
their agents or counsel with any information that it believes constitutes or
might constitute material, non-public information which is not otherwise
disclosed in the Prospectus Supplement.   The Company understands
and confirms that the Purchasers will rely on the foregoing representation in
effecting transactions in securities of the Company.  All of the
disclosure furnished by or on behalf of the Company to the Purchasers regarding
the Company and its Subsidiaries, their respective businesses and the
transactions contemplated hereby, including the Prospectus and Prospectus
Supplement to this Agreement, is true and correct and does not contain any
untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements made therein, in light of the circumstances
under which they were made, not misleading. The press releases disseminated by
the Company during the twelve months preceding the date of this Agreement taken
as a whole do not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were
made and when made, not misleading.  The Company acknowledges and
agrees that no Purchaser makes or has made any representations or warranties
with respect to the transactions contemplated hereby other than those
specifically set forth in Section 3.2 hereof.

       

      (y)  No Integrated
Offering. Assuming the accuracy of the Purchasers’ representations and
warranties set forth in Section 3.2, neither the Company, nor any of its
Affiliates, nor any Person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to
buy any security, under circumstances that would cause this offering of the
Securities to be integrated with prior offerings by the Company for purposes of
any applicable shareholder approval provisions of any Trading Market on which
any of the securities of the Company are listed or designated.

       

      (z)  Tax
Status.  Except for matters that would not, individually or in
the aggregate, have or reasonably be expected to result in a Material Adverse
Effect, the Company and its Subsidiaries each (i) has made or filed all United
States federal, state and local income and all foreign income and franchise tax
returns, reports and declarations required by any jurisdiction to which it is
subject, (ii) has paid all taxes and other governmental assessments and charges
that are material in amount, shown or determined to be due on such returns,
reports and declarations and (iii) has set aside on its books provision
reasonably adequate for the payment of all material taxes for periods subsequent
to the periods to which such returns, reports or declarations
apply.  There are no unpaid taxes in any material amount claimed to be
due by the taxing authority of any jurisdiction, and the officers of the Company
or of any Subsidiary know of no basis for any such claim.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      (aa)  Foreign Corrupt
Practices.  Neither the Company nor, to its knowledge, any
Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent or
other person acting on behalf of the Company or any Subsidiary, has (i) directly
or indirectly, used any funds for unlawful contributions, gifts, entertainment
or other unlawful expenses related to foreign or domestic political activity,
(ii) made any unlawful payment to foreign or domestic government officials or
employees or to any foreign or domestic political parties or campaigns from
corporate funds, (iii) failed to disclose fully any contribution made by the
Company or any Subsidiary (or made by any person acting on its behalf of which
the Company is aware) which is in violation of law, or (iv) violated in any
material respect any provision of the Foreign Corrupt Practices Act of 1977, as
amended.

       

      (bb)  Accountants.  The
Company’s accounting firm is set forth in the Prospectus and Prospectus
Supplement.  To the knowledge and belief of the Company, such
accounting firm (i) is a registered public accounting firm as required by the
Exchange Act and (ii) shall express its opinion with respect to the financial
statements to be included in the Company’s Annual Report for the fiscal year
ending December 31, 2010.

       

      (cc)   Acknowledgment Regarding
Purchasers’ Purchase of Securities.  The Company acknowledges
and agrees that each of the Purchasers is acting solely in the capacity of an
arm’s length purchaser with respect to the Transaction Documents and the
transactions contemplated thereby.  The Company further acknowledges
that no Purchaser is acting as a financial advisor or fiduciary of the Company
(or in any similar capacity) with respect to the Transaction Documents and the
transactions contemplated thereby and any advice given by any Purchaser or any
of their respective representatives or agents in connection with the Transaction
Documents and the transactions contemplated thereby is merely incidental to the
Purchasers’ purchase of the Securities.  The Company further
represents to each Purchaser that the Company’s decision to enter into this
Agreement and the other Transaction Documents has been based solely on the
independent evaluation of the transactions contemplated hereby by the Company
and its representatives.

       

      (dd)  Acknowledgement Regarding
Purchaser’s Trading Activity.  Anything in this Agreement or
elsewhere herein to the contrary notwithstanding (except for
Sections 3.2(e) and 4.14 hereof), it is understood and acknowledged by the
Company that: (i) none of the Purchasers has been asked by the Company to agree,
nor has any Purchaser agreed, to desist from purchasing or selling, long and/or
short, securities of the Company, or “derivative” securities based on securities
issued by the Company or to hold the Securities for any specified term; (ii)
past or future open market or other transactions by any Purchaser, specifically
including, without limitation, Short Sales or “derivative” transactions, before
or after the closing of this or future private placement transactions, may
negatively impact the market price of the Company’s publicly-traded securities;
(iii) any Purchaser, and counter-parties in “derivative” transactions to which
any such Purchaser is a party, directly or indirectly, presently may have a
“short” position in the Common Stock, and (iv) each Purchaser shall not be
deemed to have any affiliation with or control over any arm’s length
counter-party in any “derivative” transaction.  The Company further
understands and acknowledges that (y) one or more Purchasers may engage in
hedging activities at various times during the period that the Securities are
outstanding, including, without limitation, during the periods that the value of
the Warrant Shares deliverable with respect to Securities are being determined,
and (z) such hedging activities (if any) could reduce the value of the existing
stockholders' equity interests in the Company at and after the time that the
hedging activities are being conducted.  The Company acknowledges that such
aforementioned hedging activities do not constitute a breach of any of the
Transaction Documents.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      (ee)  Regulation M
Compliance.  The Company has not, and to its knowledge no one acting
on its behalf has, (i) taken, directly or indirectly, any action designed to
cause or to result in the stabilization or manipulation of the price of any
security of the Company to facilitate the sale or resale of any of the
Securities, (ii) sold, bid for, purchased, or, paid any compensation for
soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay
to any Person any compensation for soliciting another to purchase any other
securities of the Company, other than, in the case of clauses (ii) and (iii),
compensation paid to the Company’s placement agent in connection with the
placement of the Securities.

       

      (ff)  Office of Foreign Assets
Control.   To the Company's knowledge, neither the Company
or any Subsidiary nor, to the Company's knowledge, any director, officer, agent,
employee or affiliate of the Company  or any Subsidiary is currently
subject to any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Treasury Department (“OFAC”).

       

      (gg)  U.S. Real Property Holding
Corporation.  The Company is not and has never been a U.S. real
property holding corporation within the meaning of Section 897 of the Internal
Revenue Code of 1986, as amended, and the Company shall so certify upon
Purchaser’s request.

       

      (hh)  Bank Holding Company
Act.  Neither the Company nor any of its Subsidiaries or
Affiliates is subject to the Bank Holding Company Act of 1956, as amended (the
“BHCA”) and to
regulation by the Board of Governors of the Federal Reserve System (the “Federal
Reserve”).  Neither the Company nor any of its Subsidiaries or
Affiliates owns or controls, directly or indirectly, five percent (5%) or more
of the outstanding shares of any class of voting securities or twenty-five
percent or more of the total equity of a bank or any entity that is subject to
the BHCA and to regulation by the Federal Reserve.  Neither the
Company nor any of its Subsidiaries or Affiliates exercises a controlling
influence over the management or policies of a bank or any entity that is
subject to the BHCA and to regulation by the Federal Reserve.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      (ii)  Money
Laundering.  The operations of the Company and its Subsidiaries
are and have been conducted at all times in compliance with applicable financial
record-keeping and reporting requirements of the Currency and Foreign
Transactions Reporting Act of 1970, as amended, applicable money laundering
statutes and applicable rules and regulations thereunder (collectively, the
“Money Laundering
Laws”), and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company
or any Subsidiary with respect to the Money Laundering Laws is pending or, to
the knowledge of the Company or any Subsidiary, threatened.

       

      3.2           Representations and
Warranties of the Purchasers.  Each Purchaser, for itself and
for no other Purchaser, hereby represents and warrants as of the date hereof and
as of the Closing Date to the Company as follows (unless as of a specific date
therein):

       

      (a)  Organization;
Authority.  Such Purchaser is either an individual or an entity
duly incorporated or formed, validly existing and in good standing under the
laws of the jurisdiction of its incorporation or formation with full right,
corporate, partnership, limited liability company or similar power and authority
to enter into and to consummate the transactions contemplated by this Agreement
and otherwise to carry out its obligations hereunder and thereunder. The
execution and delivery of this Agreement and performance by such Purchaser of
the transactions contemplated by this Agreement have been duly authorized by all
necessary corporate, partnership, limited liability company or similar action,
as applicable, on the part of such Purchaser.  Each Transaction
Document to which it is a party has been duly executed by such Purchaser, and
when delivered by such Purchaser in accordance with the terms hereof, will
constitute the valid and legally binding obligation of such Purchaser,
enforceable against it in accordance with its terms, except: (i) as limited by
general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be
limited by applicable law.

       

      (b)  Understandings or
Arrangements.  Such Purchaser is acquiring the Securities as
principal for its own account and has no direct or indirect arrangement or
understandings with any other persons to distribute or regarding the
distribution of such Securities (this representation and warranty not limiting
such Purchaser’s right to sell the Securities pursuant to the Registration
Statement or otherwise in compliance with applicable federal and state
securities laws).  Such Purchaser is acquiring the Securities
hereunder in the ordinary course of its business.

       

      (c)  Purchaser
Status.  At the time such Purchaser was offered the Securities,
it was, and as of the date hereof it is, and on each date on which it exercises
any Warrants, it will be an “accredited investor” as defined in Rule
501 under the Securities Act.  Such Purchaser is not required to
be registered as a broker-dealer under Section 15 of the Exchange
Act.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      (d)  Experience of Such
Purchaser.  Such Purchaser, either alone or together with its
representatives, has such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of
the prospective investment in the Securities, and has so evaluated the merits
and risks of such investment.  Such Purchaser is able to bear the
economic risk of an investment in the Securities and, at the present time, is
able to afford a complete loss of such investment.

       

      (e)  Certain Transactions and
Confidentiality.  Other than consummating the transactions
contemplated hereunder, such Purchaser has not, nor has any Person acting on
behalf of or pursuant to any understanding with such Purchaser, directly or
indirectly executed any purchases or sales, including Short Sales, of the
securities of the Company during the period commencing as of the time that such
Purchaser first received a term sheet (written or oral) from the Company or any
other Person representing the Company setting forth the material terms of the
transactions contemplated hereunder and ending immediately prior to the
execution hereof.  Notwithstanding the foregoing, in the case of a
Purchaser that is a multi-managed investment vehicle whereby separate portfolio
managers manage separate portions of such Purchaser’s assets and the portfolio
managers have no direct knowledge of the investment decisions made by the
portfolio managers managing other portions of such Purchaser’s assets, the
representation set forth above shall only apply with respect to the portion of
assets managed by the portfolio manager that made the investment decision to
purchase the Securities covered by this Agreement.  Other than to
other Persons party to this Agreement, such Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this
transaction (including the existence and terms of this
transaction). Notwithstanding the foregoing, for avoidance of doubt,
nothing contained herein shall constitute a representation or warranty, or
preclude any actions, with respect to the identification of the availability of,
or securing of, available shares to borrow in order to effect Short Sales or
similar transactions in the future.

       

      The
Company acknowledges and agrees that the representations contained in Section
3.2 shall not modify, amend or affect such Purchaser’s right to rely on the
Company’s representations and warranties contained in this Agreement or any
representations and warranties contained in any other Transaction Document or
any other document or instrument executed and/or delivered in connection with
this Agreement or the consummation of the transaction contemplated
hereby.

       

      ARTICLE
IV.

      OTHER
AGREEMENTS OF THE PARTIES

       

      4.1           Warrant
Shares.  If all or any portion of a Warrant is exercised at a
time when there is an effective registration statement to cover the issuance or
resale of the Warrant Shares or if the Warrant is exercised via cashless
exercise, the Warrant Shares issued pursuant to any such exercise shall be
issued free of all legends.  If at any time following the date hereof
the Registration Statement (or any subsequent registration statement registering
the sale or resale of the Warrant Shares) is not effective or is not otherwise
available for the sale or resale of the Warrant Shares, the Company shall
promptly notify the holders of the Warrants in writing that such registration
statement is not then effective and thereafter shall promptly notify such
holders when the registration statement is effective again and available for the
sale or resale of the Warrant Shares (it being understood and agreed that the
foregoing shall not limit the ability of the Company to issue, or any Purchaser
to sell, any of the Warrant Shares in compliance with applicable federal and
state securities laws).  The Company shall use best efforts to keep a
registration statement (including the Registration Statement) registering the
issuance or resale of the Warrant Shares effective during the term of the
Warrants.

       

      
        
          
          

        

        
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      4.2           Furnishing of
Information.  Until the earliest of the time that (i) no
Purchaser owns Securities or (ii) the Warrants have expired, the Company
covenants to timely file (or obtain extensions in respect thereof and file
within the applicable grace period) all reports required to be filed by the
Company after the date hereof pursuant to the Exchange Act even if the Company
is not then subject to the reporting requirements of the Exchange
Act.

       

      4.3           Integration.  The
Company shall not sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in Section 2 of the Securities
Act) that would be integrated with the offer or sale of the Securities for
purposes of the rules and regulations of any Trading Market such that it would
require shareholder approval prior to the closing of such other transaction
unless shareholder approval is obtained before the closing of such subsequent
transaction.

       

      4.4           Securities Laws Disclosure;
Publicity.  The Company shall (a) by 9:00 a.m. (New York City
time) on the Trading Day immediately following the date hereof, issue a press
release disclosing the material terms of the transactions contemplated hereby,
and (b) file a Current Report on Form 8-K, including the Transaction Documents
as exhibits thereto, with the Commission within the time required by the
Exchange Act.  From and after the issuance of such press release, the
Company represents to the Purchasers that it shall have publicly disclosed all
material, non-public information delivered to any of the Purchasers by the
Company or any of its Subsidiaries, or any of their respective officers,
directors, employees or agents in connection with the transactions contemplated
by the Transaction Documents.  The Company and each Purchaser shall
consult with each other in issuing any other press releases with respect to the
transactions contemplated hereby, and neither the Company nor any Purchaser
shall issue any such press release nor otherwise make any such public statement
without the prior consent of the Company, with respect to any press release of
any Purchaser, or without the prior consent of each Purchaser, with respect to
any press release of the Company, which consent shall not unreasonably be
withheld or delayed, except if such disclosure is required by law, in which case
the disclosing party shall promptly provide the other party with prior notice of
such public statement or communication.  Notwithstanding the
foregoing, the Company shall not publicly disclose the name of any Purchaser, or
include the name of any Purchaser in any filing with the Commission or any
regulatory agency or Trading Market, without the prior written consent of such
Purchaser, except (a) as required by federal securities law in connection with
the filing of final Transaction Documents (including signature pages thereto)
with the Commission and (b) to the extent such disclosure is required by law or
Trading Market regulations, in which case the Company shall provide the
Purchasers with prior notice of such disclosure permitted under this clause
(b).

       

      4.5           [RESERVED]

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      4.6           Non-Public
Information.  Except with respect to the material terms and
conditions of the transactions contemplated by the Transaction Documents, the
Company covenants and agrees that neither it, nor any other Person acting on its
behalf will provide any Purchaser or its agents or counsel with any information
that the Company believes constitutes material non-public information, unless
prior thereto such Purchaser shall have entered into a written agreement with
the Company regarding the confidentiality and use of such
information.  The Company understands and confirms that each Purchaser
shall be relying on the foregoing covenant in effecting transactions in
securities of the Company.

       

      4.7           Use of
Proceeds.  Except as set forth in the Prospectus Supplement,
the Company shall use the net proceeds from the sale of the Securities hereunder
for working capital purposes and shall not use such proceeds: (a) for the
satisfaction of any portion of the Company’s debt (other than payment of trade
payables in the ordinary course of the Company’s business and prior practices),
(b) for the redemption of any Common Stock or Common Stock Equivalents or (c) in
violation of the “FCPA” (means the Foreign Corrupt Practices Act) or OFAC
regulations.

       

      4.8           Indemnification of
Purchasers.   Subject to the provisions of this Section
4.8, the Company will indemnify and hold each Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other
Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title), each Person who
controls such Purchaser (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a
functionally equivalent role of a Person holding such titles notwithstanding a
lack of such title or any other title) of such controlling persons (each, a
“Purchaser
Party”) harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and
costs of investigation that any such Purchaser Party may suffer or incur as a
result of or relating to any breach of any of the representations, warranties,
covenants or agreements made by the Company in this Agreement or in the other
Transaction Documents.  If any action shall be brought against any
Purchaser Party in respect of which indemnity may be sought pursuant to this
Agreement, such Purchaser Party shall promptly notify the Company in writing,
and the Company shall have the right to assume the defense thereof with counsel
of its own choosing reasonably acceptable to the Purchaser Party.  Any
Purchaser Party shall have the right to employ separate counsel in any such
action and participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such Purchaser Party except to the extent
that (i) the employment thereof has been specifically authorized by the Company
in writing, (ii) the Company has failed after a reasonable period of time to
assume such defense and to employ counsel or (iii) in such action there is, in
the reasonable opinion of counsel, a material conflict on any material issue
between the position of the Company and the position of such Purchaser Party, in
which case the Company shall be responsible for the reasonable fees and expenses
of no more than one such separate counsel.  The Company will not be
liable to any Purchaser Party under this Agreement (y) for any settlement by a
Purchaser Party effected without the Company’s prior written consent, which
shall not be unreasonably withheld or delayed; or (z) to the extent, but only to
the extent that a loss, claim, damage or liability is attributable to any
Purchaser Party’s breach of any of the representations, warranties, covenants or
agreements made by such Purchaser Party in this Agreement or in the other
Transaction Documents. The indemnification required by this Section 4.8 shall be
made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or are incurred. The
indemnity agreements contained herein shall be in addition to any cause of
action or similar right of any Purchaser Party against the Company or others,
and (y) any liabilities the Company may be subject to pursuant to
law.

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      4.9           Reservation of Common
Stock. As of the date hereof, the Company has reserved and the Company
shall continue to reserve and keep available at all times, free of preemptive
rights, a sufficient number of shares of Common Stock for the purpose of
enabling the Company to issue Shares pursuant to this Agreement and Warrant
Shares pursuant to any exercise of the Warrants.

       

      4.10           Listing of Common
Stock. The Company hereby agrees to use commercially reasonable
efforts to maintain the listing or quotation of the Common Stock on the Trading
Market on which it is currently listed, and concurrently with the Closing,
the Company shall apply to list or quote all of the Shares and Warrant Shares on
such Trading Market and promptly secure the listing of all of the Shares and
Warrant Shares on such Trading Market. The Company further agrees, if the
Company applies to have the Common Stock traded on any other Trading Market, it
will then include in such application all of the Shares and Warrant Shares, and
will take such other action as is necessary to cause all of the Shares and
Warrant Shares to be listed or quoted on such other Trading Market as promptly
as possible.  The Company will then take all action reasonably
necessary to continue the listing and trading of its Common Stock on a Trading
Market and will comply in all respects with the Company’s reporting, filing and
other obligations under the bylaws or rules of the Trading Market.

       

      4.11           [RESERVED]

       

      4.12           Subsequent Equity
Sales.  From the date hereof until 20 Trading Days after the
Closing Date, neither the Company nor any Subsidiary shall issue, enter into any
agreement to issue or announce the issuance or proposed issuance of any shares
of Common Stock or Common Stock Equivalents for an effective per share purchase
price of less than $3.00, including any draw downs under any existing equity
lines of credit or at-the-market offering programs.  Notwithstanding
the foregoing, this Section 4.12 shall not apply in respect of an Exempt
Issuance, except that no Variable Rate Transaction shall be an Exempt
Issuance.

       

      4.13           Equal Treatment of
Purchasers.  No consideration (including any modification of
any Transaction Document) shall be offered or paid to any Person to amend or
consent to a waiver or modification of any provision of any of the Transaction
Documents unless the same consideration is also offered to all of the parties to
the Transaction Documents.  For clarification purposes, this provision
constitutes a separate right granted to each Purchaser by the Company and
negotiated separately by each Purchaser, and is intended for the Company to
treat the Purchasers as a class and shall not in any way be construed as the
Purchasers acting in concert or as a group with respect to the purchase,
disposition or voting of Securities or otherwise.

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      4.14           Certain Transactions and
Confidentiality. Each Purchaser, severally and not jointly with the
other Purchasers, covenants that neither it nor any Affiliate acting on its
behalf or pursuant to any understanding with it will execute any purchases or
sales, including Short Sales of any of the Company’s securities during the
period commencing with the execution of this Agreement and ending at such time
that the transactions contemplated by this Agreement are first publicly
announced pursuant to the initial press release as described in Section
4.4.  Each Purchaser, severally and not jointly with the other Purchasers,
covenants that until such time as the transactions contemplated by this
Agreement are publicly disclosed by the Company pursuant to the initial press
release as described in Section 4.4, such Purchaser will maintain the
confidentiality of the existence and terms of this transaction and the
information included in the Prospectus and Prospectus Supplement. 
Notwithstanding the foregoing and notwithstanding anything contained in this
Agreement to the contrary, the Company expressly acknowledges and agrees that
(i) no Purchaser makes any representation, warranty or covenant hereby that it
will not engage in effecting transactions in any securities of the Company after
the time that the transactions contemplated by this Agreement are first publicly
announced pursuant to the initial press release as described in Section 4.4,
(ii) no Purchaser shall be restricted or prohibited from effecting any
transactions in any securities of the Company in accordance with applicable
securities laws from and after the time that the transactions contemplated by
this Agreement are first publicly announced pursuant to the initial press
release as described in Section 4.4 and (iii) no Purchaser shall have any duty
of confidentiality to the Company or its Subsidiaries after the issuance of the
initial press release as described in Section 4.4.  Notwithstanding the
foregoing, in the case of a Purchaser that is a multi-managed investment vehicle
whereby separate portfolio managers manage separate portions of such Purchaser’s
assets and the portfolio managers have no direct knowledge of the investment
decisions made by the portfolio managers managing other portions of such
Purchaser’s assets, the covenant set forth above shall only apply with respect
to the portion of assets managed by the portfolio manager that made the
investment decision to purchase the Securities covered by this
Agreement.

       

      ARTICLE
V.

      MISCELLANEOUS

       

      5.1           Termination. 
This Agreement may be terminated by any Purchaser, as to such Purchaser’s
obligations hereunder only and without any effect whatsoever on the obligations
between the Company and the other Purchasers, by written notice to the other
parties, if the Closing has not been consummated on or before July 2, 2010;
provided, however, that no such
termination will affect the right of any party to sue for any breach by any
other party (or parties).

       

      5.2           Fees and
Expenses.  Except as expressly set forth in the Transaction
Documents to the contrary, each party shall pay the fees and expenses of its
advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution,
delivery and performance of this Agreement.  The Company shall pay all
Transfer Agent fees, stamp taxes and other taxes and duties levied in connection
with the delivery of any Securities to the Purchasers.

       

      5.3           Entire
Agreement.  The Transaction Documents, together with the
exhibits and schedules thereto, the Prospectus and the Prospectus Supplement,
contain the entire understanding of the parties with respect to the subject
matter hereof and thereof and supersede all prior agreements and understandings,
oral or written, with respect to such matters, which the parties acknowledge
have been merged into such documents, exhibits and schedules.

       

      5.4           Notices.  Any
and all notices or other communications or deliveries required or permitted to
be provided hereunder shall be in writing and shall be deemed given and
effective on the earliest of: (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number set forth on
the signature pages attached hereto at or prior to 5:30 p.m. (New York City
time) on a Trading Day, (b) the next Trading Day after the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile
number set forth on the signature pages attached hereto on a day that is not a
Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c)
the second (2nd)
Trading Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service or (d) upon actual receipt by the party to whom such
notice is required to be given.  The address for such notices and
communications shall be as set forth on the signature pages attached
hereto.

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      5.5           Amendments;
Waivers.  No provision of this Agreement may be waived,
modified, supplemented or amended except in a written instrument signed, in the
case of an amendment, by the Company and the Purchasers holding at least a
majority in interest of the Shares based on the initial Subscription Amounts
hereunder or, in the case of a waiver, by the party against whom enforcement of
any such waived provision is sought.  No waiver of any default with
respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor
shall any delay or omission of any party to exercise any right hereunder in any
manner impair the exercise of any such right.

       

      5.6           Headings.  The
headings herein are for convenience only, do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the provisions
hereof.

       

      5.7           Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of the parties and their successors and permitted
assigns.  The Company may not assign this Agreement or any rights or
obligations hereunder without the prior written consent of each Purchaser (other
than by merger).  Any Purchaser may assign any or all of its rights
under this Agreement to any Person to whom such Purchaser assigns or transfers
any Securities, provided that such transferee agrees in writing to be bound,
with respect to the transferred Securities, by the provisions of the Transaction
Documents that apply to the “Purchasers.”

       

      5.8           No Third-Party
Beneficiaries.  This Agreement is intended for the benefit of
the parties hereto and their respective successors and permitted assigns and is
not for the benefit of, nor may any provision hereof be enforced by, any other
Person, except as otherwise set forth in Section 4.8.

       

      5.9           Governing
Law.  All questions concerning the construction, validity,
enforcement and interpretation of the Transaction Documents shall be governed by
and construed and enforced in accordance with the internal laws of the State of
New York, without regard to the principles of conflicts of law
thereof.  Each party agrees that all legal proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by
this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders,
partners, members, employees or agents) shall be commenced exclusively in the
state and federal courts sitting in the City of New York. Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of New York, Borough of Manhattan for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein (including with respect to
the enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper or is an inconvenient venue for such
proceeding.  Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way
any right to serve process in any other manner permitted by law.  If
either party shall commence an action, suit or proceeding to enforce any
provisions of the Transaction Documents, then, in addition to the obligations of
the Company under Section 4.8, the prevailing party in such action, suit or
proceeding shall be reimbursed by the other party for its reasonable attorneys’
fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such action or proceeding.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      5.10           Survival.  The
representations and warranties contained herein shall survive the Closing and
the delivery of the Securities until the earlier of the expiration or exercise
in full of the Warrants.

       

      5.11           Execution.  This
Agreement may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to each
other party, it being understood that the parties need not sign the same
counterpart.  In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such
signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.

       

      5.12           Severability.  If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction to be invalid, illegal, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions set forth
herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same
or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

       

      5.13           Replacement of
Securities.  If any certificate or instrument evidencing any
Securities is mutilated, lost, stolen or destroyed, the Company shall issue or
cause to be issued in exchange and substitution for and upon cancellation
thereof (in the case of mutilation), or in lieu of and substitution therefor, a
new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction.  The
applicant for a new certificate or instrument under such circumstances shall
also pay any reasonable third-party costs (including customary indemnity)
associated with the issuance of such replacement Securities.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      5.14           Remedies.  In
addition to being entitled to exercise all rights provided herein or granted by
law, including recovery of damages, each of the Purchasers and the Company will
be entitled to specific performance under the Transaction
Documents.  The parties agree that monetary damages may not be
adequate compensation for any loss incurred by reason of any breach of
obligations contained in the Transaction Documents and hereby agree to waive and
not to assert in any action for specific performance of any such obligation the
defense that a remedy at law would be adequate.

       

      5.15           Independent Nature of
Purchasers’ Obligations and Rights.  The obligations of each
Purchaser under any Transaction Document are several and not joint with the
obligations of any other Purchaser, and no Purchaser shall be responsible in any
way for the performance or non-performance of the obligations of any other
Purchaser under any Transaction Document.  Nothing contained herein or
in any other Transaction Document, and no action taken by any Purchaser pursuant
hereto or thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated by the
Transaction Documents.  Each Purchaser shall be entitled to
independently protect and enforce its rights including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents,
and it shall not be necessary for any other Purchaser to be joined as an
additional party in any proceeding for such purpose.  Each Purchaser
has been represented by its own separate legal counsel in its review and
negotiation of the Transaction Documents.  For reasons of
administrative convenience only, each Purchaser and its respective counsel have
chosen to communicate with the Company through WS.  WS does not
represent any of the Purchasers and only represents Rodman & Renshaw
LLC.  The Company has elected to provide all Purchasers with the same
terms and Transaction Documents for the convenience of the Company and not
because it was required or requested to do so by any of the
Purchasers.  It is expressly understood and agreed that each provision
contained in this Agreement and in each other Transaction Document is between
the Company and a Purchaser, solely, and not between the Company and the
Purchasers collectively and not between and among the Purchasers.

       

      5.16           Saturdays, Sundays, Holidays,
etc.  If the last or appointed day for the taking of any action
or the expiration of any right required or granted herein shall not be a
Business Day, then such action may be taken or such right may be exercised on
the next succeeding Business Day.

       

      5.17           Construction. The
parties agree that each of them and/or their respective counsel have reviewed
and had an opportunity to revise the Transaction Documents and, therefore, the
normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation
of the Transaction Documents or any amendments thereto. In addition, each
and every reference to share prices and shares of Common Stock in any
Transaction Document shall be subject to adjustment for reverse and forward
stock splits, stock dividends, stock combinations and other similar transactions
of the Common Stock that occur after the date of this Agreement.

       

      5.18           WAIVER OF
JURY TRIAL.  IN ANY
ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY
OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST
EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

       

      (Signature
Pages Follow)

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      IN WITNESS WHEREOF, the parties hereto
have caused this Securities Purchase Agreement to be duly executed by their
respective authorized signatories as of the date first indicated
above.

       

      

      
        
          	
                  NEOSTEM,
      INC.

                   

                   

                	
                  Address for Notice:

                
	
                  By:__________________________________________

                       Name:

                       Title:

                   

                  With
      a copy to (which shall not constitute notice):

                	
                  Fax:

                
	 
      	 
      

        

      

       

      
        [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

        SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

      

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

      

      
        [PURCHASER
SIGNATURE PAGES TO NBS SECURITIES PURCHASE AGREEMENT]

      

      IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement
to be duly executed by their respective authorized signatories as of the date
first indicated above.

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	Name
      of Purchaser: 	
                                               

                                            
	 	 
	Signature of Authorized
      Signatory of Purchaser:	
                                               

                                            
	 	 
	
                                              Name
      of Authorized Signatory: 

                                            	 
	 	 
	Title
      of Authorized Signatory:	
                                               

                                            
	 	 
	
                                              Email
      Address of Authorized Signatory:

                                            	
                                               

                                            
	 	 
	Facsimile
      Number of Authorized Signatory: 	 
	 	 
	Address
      for Notice to Purchaser:	 

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      Address
for Delivery of Securities to Purchaser (if not same as address for
notice):

       

      Subscription
Amount: $_________________

      

      Shares:
_________________

      

      Warrant
Shares: __________________

      

      EIN
Number:

      

      o  Notwithstanding
anything contained in this Agreement to the contrary, by checking this box (i)
the obligations of the above-signed to purchase the securities set forth in this
Agreement to be purchased from the Company by the above-signed, and the
obligations of the Company to sell such securities to the above-signed, shall be
unconditional and all conditions to Closing shall be disregarded, (ii) the
Closing shall occur on the third (3rd)
Trading Day following the date of this Agreement and (iii) any condition to
Closing contemplated by this Agreement (but prior to being disregarded by clause
(i) above) that required delivery by the Company or the above-signed of any
agreement, instrument, certificate or the like or purchase price (as applicable)
shall no longer be a condition and shall instead be an unconditional obligation
of the Company or the above-signed (as applicable) to deliver such agreement,
instrument, certificate or the like or purchase price (as applicable) to such
other party on the Closing Date.

      

      

      [SIGNATURE
PAGES CONTINUE]

       

      
        
          
          

        

        
          28Exhibit
10.1

    TRANSACTION
AGREEMENT

    

    THIS TRANSACTION AGREEMENT
dated May 21, 2010 (this "Agreement"), is between Garmin Ltd., a Cayman Islands
company ("Garmin Cayman"), and Garmin Ltd., a Swiss stock corporation having its
registered seat in Schaffhausen, in the Canton of Schaffhausen, Switzerland
("Garmin Switzerland").  Each of Garmin Cayman and Garmin Switzerland
is referred to herein as a "Party" and together as the "Parties."

    

    RECITALS

    

    A.           Garmin
Cayman, the shares of which are listed on the NASDAQ Global Select Market,
believes that it is in the best interest of Garmin Cayman and its shareholders
to move the place of incorporation of the ultimate parent holding company of the
Garmin group from the Cayman Islands to Switzerland in order to establish a
corporation more centrally located within the company's major markets, locate
the company in a country with a stable and well-developed tax regime and more
sophisticated financial and commercial infrastructure and improve the company's
ability to maintain a competitive worldwide effective corporate tax
rate.

    

    B.           Garmin
Switzerland is a direct, wholly-owned subsidiary of Garmin Cayman, incorporated
in Schaffhausen, Switzerland, on February 9, 2010, with a share capital of CHF
100,000, divided into 10,000,000 registered shares (the "Formation
Shares").

    

    C.           Garmin
Switzerland will (i) create or otherwise make available the number of Garmin
Switzerland shares needed for the delivery of shares (the "Exchange Shares") to
Garmin Cayman shareholders (the "Scheme Shareholders") pursuant to the Scheme of
Arrangement through a capital increase (the "Capital Increase"), and (ii) cause
delivery of these shares through a transfer agent to the Scheme Shareholders,
substantially in the form of the Contribution in Kind Agreement attached hereto
as Exhibit A.

    

    D.           Garmin
Cayman, acting on behalf of the Scheme Shareholders, has agreed to subscribe for
the Exchange Shares and to sign a subscription form substantially in the form of
Exhibit B attached hereto.

    

    E.           The
exact number of Exchange Shares to be issued in the Capital Increase, as well as
the issue price per Exchange Share, shall be mutually calculated on or around
the day following the day the Scheme Shareholders approve the Scheme of
Arrangement based on the number of shares outstanding on the Transaction Time as
defined in the Scheme of Arrangement.

    

    F.           Assuming
that immediately following the Transaction Time there are 200,670,000 Exchange
Shares and 10,000,000 Formation Shares, each of them with a par value of CHF
10.00, the aggregate par value of Garmin Switzerland's share capital will amount
to CHF 2,106,700,000.  At this point in time, the number of Exchange
Shares as well as the amount of the par value are still uncertain and therefore
the par value of Garmin Switzerland's share capital is subject to
change.

    

    NOW, THEREFORE, the Parties
agree as follows:
 

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    1.           The
Transaction

    

    a.           The
Parties hereby agree to move the place of organization of Garmin Cayman from the
Cayman Islands to Switzerland by proposing to the shareholders of Garmin Cayman
for approval a scheme of arrangement under Cayman Islands law (the "Scheme of
Arrangement") whereby they will exchange their shares of Garmin Cayman for
shares of Garmin Switzerland (the "Redomestication").

    

    b.           A
draft of the Scheme of Arrangement is attached to this Agreement as Exhibit
C.  Garmin Switzerland agrees to be bound by the Scheme of Arrangement
by signing a letter substantially in the form of Exhibit D attached
hereto.

    

    c.           Provided
Garmin Switzerland becomes (in accordance with the Scheme of Arrangement) the
sole shareholder of Garmin Cayman, the Parties will effect the tasks described
in Sections 2 through 5 below.

    

    2.           Equity
Compensation and Benefit Plans

    

    Garmin
Switzerland hereby agrees to adopt the Equity Compensation and Benefit Plans, to
assume Garmin Cayman's obligations under the Equity Compensation and Benefit
Plans and to sign and execute respective documents as soon as the Capital
Increase, as well as the conditional capital needed to meet Garmin Cayman's
future obligations under the Equity Compensation and Benefit Plans, is
registered in the commercial register of the Canton of
Schaffhausen.

     

    The
Redomestication is intended to be economically neutral from the perspective of
the plan participants who hold equity incentive awards.  Where the
Redomestication requires an adjustment of the terms of any equity incentive
awards, any such adjustments shall not increase the economic value of the equity
incentives.

    

    3.           Share
Buy Back

    

    Garmin
Switzerland hereby agrees to continue the Share Buy Back as currently conducted
by Garmin Cayman.

    

    4.           Guaranty
dated February 12, 2010

    

    Garmin
Switzerland hereby agrees to assume all guarantee obligations of Garmin Cayman
under that certain Continuing and Unconditional Guaranty dated February 12,
2010, made by Garmin Cayman, in favor of Bank of America, N.A. to secure the
obligations of Garmin China Co. Ltd. ("Garmin China") under that certain letter
agreement dated February 1st, 2010,
between Garmin China and Bank of America, N.A., Beijing Branch, providing for
revolving credit facilities up to an aggregate principal amount of 13,400,000
Renminbi (approximately equivalent to USD $2,000,000).

    

    5.           Articles
of Association

    

    The
Parties agree that Garmin Switzerland shall adopt at or immediately after the
Transaction Time, articles of association substantially in the form attached
hereto as Exhibit E.

    

    6.           Severability

    

    Each
provision of this Agreement shall be interpreted in such manner as to be
effective and valid under the applicable law.  If any provision of
this Agreement shall be unenforceable or invalid under applicable law, such
provision shall be ineffective only to the extent of such unenforceability or
invalidity and replaced by such valid and enforceable provisions which the
Parties consider, in good faith, to match as closely as possible the invalid or
unenforceable provision and attaining the same or a similar economic
effect.  The remaining provisions of this Agreement shall continue to
be binding and in full force and effect.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    7.           Governing
Law and Arbitration

    

    a.           This
Agreement shall be governed by the substantive laws of Switzerland.

    

    b.           Each
Party submits to the exclusive jurisdiction of the Ordinary Courts (Ordentliche Gerichte) of the
Canton of Schaffhausen, Switzerland, venue being Schaffhausen.

    

    8.           Entry
into Force

    

    This
Agreement shall enter into force upon its execution by the Parties.

    

    9.           Conflict
with Scheme of Arrangement or Contribution in Kind

    

    In case
of any disputes between this Agreement and the Scheme of Arrangement or the
Contribution in Kind Agreement, the Scheme of Arrangement or the Contribution in
Kind Agreement, as the case may be, shall prevail.

    

    10.           Lapse
of this Agreement

    

    This
Agreement shall lapse and any and all rights under this Agreement shall
terminate if the Effective Date does not occur by December 31, 2010, 5 p.m.
Cayman Island time.

    

    11.           Consummation

    

    This
Agreement (and, therefore, the Redomestication) shall be deemed to be
consummated as soon as the pertinent entries of the Capital Increase in the
commercial register in Schaffhausen and the subsequent issuance of the Exchange
Shares to the Garmin Cayman shareholders is effected and all obligations as
stated under this Agreement have been fulfilled by the Parties.

    

    12.           Definitions

    

    
      
        	
                Agreement

              	
                This
      Transaction Agreement

              
	 
      	 
      
	
                Capital
      Increase

              	
                Has
      the meaning ascribed to it in Section 2

              
	 
      	 
      
	
                Equity
      Compensation

                and
      Benefit Plans

              	
                The
      long-term incentive plans and awards, and other employee benefit plans and
      arrangements sponsored by Garmin Cayman or its affiliates, that have
      issued Garmin Cayman shares, or otherwise held, made available, or used
      Garmin Cayman shares to measure benefits and any long-term or short-term
      cash-bonus or other incentive plans maintained by Garmin Cayman, and any
      other employee benefit plan or arrangement that has been maintained by
      Garmin Cayman which Garmin Switzerland determines is appropriate to be
      maintained by Garmin Switzerland following the
    Redomestication

              
	 
      	 
      
	
                Exchange
      Shares

              	
                Has
      the meaning ascribed to it in Section 2(a)

              
	 
      	 
      
	
                Formation
      Shares

              	
                Has
      the meaning ascribed to it in the introductory
paragraph

              
	 
      	 
      
	
                Garmin
      Cayman

              	
                Has
      the meaning ascribed to it in the introductory
  paragraph

              

      

    
 

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      
        	
                Garmin
      Switzerland

              	
                Has
      the meaning ascribed to it in the introductory
paragraph

              
	 
      	 
      
	
                Redomestication

              	
                Has
      the meaning ascribed to it in Section 1(a)

              
	 
      	 
      
	
                Scheme
      of Arrangement

              	
                Has
      the meaning ascribed to it in Section 1(a)

              
	 
      	 
      
	
                Scheme
      Shareholders

              	
                Has
      the meaning ascribed to it in Section 2(a)

              
	 
      	 
      
	
                Share
      Buy Back

              	
                Means
      the Garmin Cayman share repurchase program announced in February 2010 for
      the repurchase of shares of Garmin Cayman with a total value of
      approximately USD $300 million

              
	 
      	 
      
	
                Transaction
      Time

              	
                Has
      the meaning ascribed to it in the Scheme of
  Arrangement

              

      

    

    

    Signature
Page Follows

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the
Parties have entered into this Agreement as of this 21st day of May,
2010.

     

    
      
        	
                GARMIN
      LTD.,

              
	
                a
      Cayman Islands corporation

              
	 
      
	
                By: 

              	
                /s/ Kevin S. Rauckman

              
	
                Name:
      Kevin S. Rauckman

              
	
                Title:
      Chief Financial Officer and Treasurer

              
	 
      
	
                GARMIN
      LTD.,

              
	
                a
      Swiss corporation

              
	 
      
	
                By: 

              	
                /s/ Andrew R. Etkind

              
	
                Name:
      Andrew R. Etkind

              
	
                Title:
      Authorized
Signatory

              

      

    
 

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    EXHIBIT
A

     

    Contribution in Kind
Agreement

     

    Sacheinlagevertrag

    Contribution
agreement

     

    zwischen

    between

     

    Garmin
Ltd.

    P.O Box
10670, Grand Cayman, KY1-1006, Suite 3206B, 45 Market Street, Gardenia Court,
Camana Bay, Cayman Islands,

     

    (nachfolgend
"Garmin-Cayman")

    (hereinafter
"Garmin-Cayman")

    

    und

    and

     

    Garmin
Ltd.

    c/o
Klauser und Partner AG, Pestalozzistrasse 2, 8201 Schaffhausen,
Switzerland

     

    (nachfolgend
"Garmin-Schweiz")

    (hereinafter
"Garmin-Switzerland")

     

    (gemeinsam
die "Parteien")

    (and
collectively the "Parties")

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    Präambel

    Recitals

    

    
      	
              (A)

            	
              Garmin-Cayman ist eine
      Gesellschaft mit Sitz in Camana Bay, Cayman Islands, deren Aktien
      (common
      shares) am NASDAQ
      Global Select Market ("NASDAQ") kotiert sind. Das Aktienkapital
      (authorized
      share capital) von
      Garmin-Cayman beträgt USD 6,000,000, eingeteilt in 1,000,000,000 Aktien
      (common
      shares) mit einem
      Nennwert von je USD 0.005 und 1,000,000 Vorzugsaktien (preferred
      shares) mit einem
      Nennwert von je USD 1, von denen 200,670,000 Aktien (common
      shares) ausgegeben
      sowie voll einbezahlt und die übrigen Aktien nicht ausgegeben sind.
      Vorzugsaktien wurden nicht
ausgegeben.

            

    

    Garmin-Cayman
is a company with its registered office in Camana Bay, Grand Cayman, Cayman
Islands, whose common shares are listed on the NASDAQ Global Select Market
("NASDAQ"). The authorized share capital of Garmin-Cayman amounts to USD
6,000,000 and is divided into 1,000,000,000 common shares with a par value of
USD 0.005 each and 1,000,000 preferred shares with a par value of USD 1 each, of
which 200,670,000 common shares have been issued and are fully paid, and the
remainder remains unissued. No preferred shares have been issued.

    

    
      	
              (B)

            	
              Garmin-Schweiz
      ist eine Aktiengesellschaft mit Sitz in Schaffhausen, Kanton Schaffhausen,
      die zu 100% von Garmin-Cayman gehalten wird. Das im Handelsregister
      eingetragene Aktienkapital von Garmin-Schweiz beträgt CHF 100,000,
      eingeteilt in 10,000,000 Namenaktien mit einem Nennwert von je CHF 0.01.
      An einer ausserordentlichen Generalversammlung von Garmin-Schweiz, die am
      27. Juni 2010 um [...] Uhr (MEZ) stattgefunden hat, wurde beschlossen, das
      Aktienkapital von Garmin-Schweiz von CHF 100,000 gegen Sacheinlage um CHF
      2,106,600,000 auf CHF 2,106,700,000 durch eine Nennwerterhöhung und durch
      die Ausgabe von 200,670,000 voll liberierten Namenaktien von je CHF 10
      Nennwert zu einem Ausgabepreis von CHF 10 pro Aktie im Rahmen einer
      ordentlichen Kapitalerhöhung (die "Ordentliche Kapitalerhöhung") zu
      erhöhen. Die Durchführung der Ordentlichen Kapitalerhöhung erfolgt im
      Rahmen der nachfolgend beschriebenen
  Transaktionen.

            

    

    Garmin-Switzerland
is a company limited by shares incorporated under the laws of Switzerland with
its registered office in Schaffhausen, Canton Schaffhausen, which is
wholly-owned by Garmin-Cayman. The share capital of Garmin-Switzerland recorded
in the commercial register amounts to CHF 100,000, divided into 10,000,000
registered shares with a par value of CHF 0.01 each. At an extraordinary meeting
of shareholders of Garmin-Switzerland, having taken place on June 27, 2010, at
[time] [a.m./p.m.] (CET), it was resolved to increase the share capital of
Garmin-Switzerland from CHF 100,000 by an amount of 2,106,600,000 to CHF
2,106,700,000 through the increase in the par value of each share and through
issuance of 200,670,000 fully paid registered shares with a par value of CHF 10
each at an issue price of CHF 10 per share by way of an ordinary capital
increase (the "Ordinary Capital Increase''). The implementation of the Ordinary
Capital Increase occurs in the course of the transactions as further described
below.

    

    
      	
              (C)

            	
              Gemäss
      den Bestimmungen des Scheme of Arrangement nach dem Recht der Cayman
      Islands in Sachen Garmin-Cayman (das "Scheme"), das von den Aktionären von
      Garmin-Cayman am 20. Mai 2010, und von dem Grand Court of the Cayman
      Islands am 4. Juni 2010 genehmigt wurde, hat jeder Aktionär von
      Garmin-Cayman, der im Zeitpunkt unmittelbar vor dem Vollzug der unter dem
      Scheme abgewickelten Transaktion (die "Transaktion") Aktien (common shares) hält,
      Anspruch auf eine Namenaktie von Garmin-Schweiz im Austausch für eine
      Aktie (common
      share) von Garmin-Cayman. Dieser Aktientausch, als Folge dessen
      Garmin-Cayman eine hundertprozentige Tochtergesellschaft von
      Garmin-Schweiz wird, erfolgt im Einzelnen wie
  folgt:

            

    

    Pursuant
to the terms of the Scheme of Arrangement under the law of the Cayman Islands in
the matter of Garmin-Cayman (the "Scheme"), approved by the shareholders of
Garmin-Cayman on May 20, 2010 and by the Grand Court of the Cayman Islands on
June 4, 2010, each holder of Garmin-Cayman common shares immediately prior to
the completion of the transactions under the Scheme (the "Transactions") has the
right to receive in exchange for each such common share one registered share of
Garmin-Switzerland. This share exchange, as a result of which Garmin-Cayman will
become a wholly-owned subsidiary of Garmin-Switzerland, shall be executed as
follows:

    

    
      	
               
      

            	
              (1)

            	
              Mit
      Wirksamwerden und nach Massgabe des Scheme bringt Garmin-Cayman, auf
      Rechnung der Aktionäre von Garmin-Cayman, ihre sämtlichen ausgegebenen und
      ausstehenden Aktien (common shares) im
      Rahmen einer Sacheinlage in Garmin-Schweiz ein. Garmin-Cayman trägt
      Garmin-Schweiz als Aktionärin mit Stimmrecht in das Aktienregister
      ein.

            

    

    Upon
the Scheme becoming effective in accordance with its terms, and by way of the
Scheme, Garmin-Cayman, acting on account of its shareholders, shall contribute
all of the issued and outstanding common shares in its capital by way of a
contribution in kind to Garmin-Switzerland. Garmin-Cayman shall register
Garmin-Switzerland in its register of members as the holder with voting rights
of such shares.
 

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (2)

            	
              Der
      Verwaltungsrat von Garmin-Schweiz führt, gestützt auf die Ermächtigung der
      ausserordentlichen Generalversammlung, die am 27. Juni 2010 um [...] Uhr
      (MEZ) stattgefunden hat, die Ordentliche Kapitalerhöhung durch mittels (a)
      Sacheinlage aller Aktien (common shares) von
      Garmin-Cayman mit einem Nennwert von je USD 0.005, (b) anschliessender
      Nennwerterhöhung von CHF 0.01 auf CHF 10 pro Aktie sowie Ausgabe von
      200,670,000 neuen Namenaktien von Garmin-Schweiz mit einem Nennwert von je
      CHF 10 und (c) Eintragung der geänderten Statuten von Garmin-Schweiz im
      Handelsregister.

            

    

    The
board of directors of Garmin-Switzerland, on the basis of the authorization of
the extraordinary shareholders' meeting, having taken place on June 27, 2010, at
[time]
[a.m./p.m.] (CET) carries out the Ordinary Capital Increase by way of (a)
Garmin-Cayman's contribution in kind of all of its common shares with a par
value of USD 0.005, (b) a subsequent increase in the par value of each share
from CHF 0.01 to CHF 10 and issuance of 200,670,000 new registered shares of
Garmin-Switzerland with a par value of CHF 10 each and (c) registration of the
revised articles of association of Garmin-Switzerland with the commercial
register.

    

    
      	
               
      

            	
              (3)

            	
              Garmin-Schweiz
      gibt sämtliche im Rahmen der Ordentlichen Kapitalerhöhung geschaffenen
      neuen Namenaktien mit einem Nennwert von je CHF 10 an die Aktionäre von
      Garmin-Cayman (wobei auf den Zeitpunkt unmittelbar vor Vollzug der
      Transaktionen abgestellt wird) aus.

            

    

    Garmin-Switzerland
shall issue all registered shares with a par value of 10 each that have been
newly created in the Ordinary Capital Increase to the holders of Garmin-Cayman
common shares outstanding immediately prior to the completion of the
Transactions.

    

    
      	
              (D)

            	
              Die
      Aktionäre von Garmin-Cayman haben am 20. Mai 2010, und der Grand Court of
      the Cayman Islands (der "Court") hat am 4. Juni 2010 das Scheme genehmigt.
      Eine Kopie des Genehmigungsentscheids des Courts wurde am 4. Juni 2010
      beim Registrar of Companies eingereicht und das Scheme wurde gemäss seinen
      Bestimmungen am 27. Juni 2010
wirksam.

            

    

    The
shareholders of Garmin-Cayman approved the Scheme on May 20, 2010, and the Grand
Court of the Cayman Islands (the "Court'') sanctioned the Scheme on June 4,
2010. A copy of the Court order was filed with the Registrar of Companies on
June 4, 2010 and the Scheme became effective in accordance with its terms on
June 27, 2010.

     

    Gestützt darauf vereinbaren
die Parteien was folgt:

    Therefore, the Parties agree
as follows:

     

    
      	
              1.

            	
              Sacheinlage

            

    

    Contribution
in Kind

     

    Garmin-Cayman,
handelnd auf Rechnung der Aktionäre von Garmin-Cayman, verpflichtet sich
hiermit, unmittelbar nach Wirksamwerden des Scheme gemäss dessen Bedingungen
alle Aktien (common
shares) mit einem Nennwert von je USD 0.005 (die "Garmin-Cayman Aktien")
mittels Sacheinlage in Garmin-Schweiz einzubringen (die "Sacheinlage").
Garmin-Cayman verpflichtet sich, Garmin-Schweiz als Aktionärin mit Stimmrecht in
das Aktienregister einzutragen.

    Garmin-Cayman,
acting for the account of the shareholders of Garmin-Cayman, hereby agrees
immediately upon the Scheme becoming effective in accordance with its terms to
contribute  all common shares with a par value of USD 0.005 each (the
"Garmin-Cayman Shares'') by way of a contribution in kind (the "Contribution in
Kind") to Garmin-Switzerland. Garmin-Cayman agrees to record Garmin-Switzerland
in its register of members as the holder with voting rights of such
Garmin-Cayman Shares.

     

    
      	
              2.

            	
              Übernahmepreis

            

    

    Consideration
for the Contribution in Kind

     

    Der
Übernahmepreis für die Sacheinlage beträgt CHF [...]. Dieser Wert basiert auf dem
von der NASDAQ am 25. Juni 2010 bekanntgegebenen Schlusskurs der Garmin-Cayman
Aktien (common shares)
mit einem Nennwert von USD 0.005 je Aktie, sowie auf einen Zuschlag von USD [...]
bzw. CHF [...] je Aktie, umgerechnet in Anwendung des von der Schweizerischen
Nationalbank am 25. Juni 2010, um [...] Uhr Central Daylight Time (CDT) bzw. [...]
Uhr Mitteleuropäische Zeit (MEZ), veröffentlichten Umrechnungskurses USD/CHF von
1:[...].

    The
value of the
Contribution in Kind amounts to CHF [...]. Such value has been determined on the
basis of the closing price of the Garmin-Cayman Shares with a par value of USD
0.005 each as reported on the NASDAQ on June 25, 2010, plus a premium of USD
[...] or CHF [...] per share converted into Swiss francs based on the currency
exchange rate USD/CHF of 1:[...] as published by the Swiss National Bank on June
25, 2010 at [...] [a.m./p.m.] Central Daylight Time (CDT) respectively [...]
[a.m./p.m.] Central European Time (CET).

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    Der
Übernahmepreis für die Sacheinlage wird getilgt durch eine Erhöhung des
Nennwertes jeder bestehenden Aktie von bisher CHF 0.01 auf neu CHF 10 sowie
durch Ausgabe von 200,670,000 neuen, im Wege der Ordentlichen Kapitalerhöhung
geschaffenen voll liberierten Namenaktien von Garmin-Schweiz mit einem Nennwert
von je CHF 10 ("Garmin-Schweiz Aktien") zum Ausgabepreis von je CHF 10 pro
Aktie. Der gesamte Ausgabebetrag für die Nennwerterhöhung jeder Aktie und die
neu geschaffenen Aktien beläuft sich auf CHF 2,106,600,000. Die Differenz
zwischen dem Übernahmepreis und dem gesamten Ausgabetrag beläuft sich auf CHF
[...] und wird als Reserven aus Kapitaleinlage gebucht.

    As consideration for the
Contribution in Kind, the par value of each existing share is increased from CHF
0.01 to CHF 10 and Garmin-Switzerland shall issue 200,670,000 fully paid registered shares of
Garmin-Switzerland with a par value of CHF 10 each (the "Garmin-Switzerland
Shares") at an issue price of CHF 10 for each share by way of the Ordinary
Capital Increase. The
entire amount of issue
for the increase in the par value of each share and the newly created
shares corresponds to CHF 2,106,600,000. The difference
between the consideration (value of the Contribution in Kind) and the entire
amount of issue corresponds to CHF [...] and shall be credited as reserves
from capital contribution.

    

    Die
ausserordentliche Generalversammlung von Garmin-Schweiz, die am 27. Juni
2010  um [...] Uhr (MEZ), stattgefunden hat, hat den Verwaltungsrat
dazu beauftragt, die Ordentliche Kapitalerhöhung durchzuführen. Der
Verwaltungsrat von Garmin-Schweiz wird die dazu erforderlichen Handlungen bei
Vollzug gemäss Ziffer 6.2 nachstehend durchführen.

    Garmin-Switzerland's
extraordinary meeting of shareholders, having taken place on June 27, 2010, at
[time]
[a.m./p.m.] (CET) has mandated the board of directors to carry out the Ordinary
Capital Increase. On the Closing, pursuant to section 6.2 below, the board
of directors of Garmin-Switzerland will take the actions necessary.

     

    
      	
              3.

            	
              Verfügungsmacht

            

    

    Authority

     

    Garmin-Schweiz
kann unmittelbar nach der Eintragung der Ordentlichen Kapitalerhöhung in das
Handelsregister, d.h. am Vollzugsdatum gemäss Ziffer 6.1 nachstehend, über die
Garmin-Cayman Aktien frei verfügen.

    Garmin-Switzerland
acquires the right to freely dispose of the Garmin-Cayman Shares immediately
upon the registration of the Ordinary Capital Increase in the commercial
register, i.e., on the Closing Date pursuant to section 6.1 below.

     

    
      	
              4.

            	
              Zusicherungen
      und Gewährleistungen

            

    

    
      Representations
and Warranties

    

     

    Garmin-Cayman
gibt gegenüber Garmin-Schweiz folgende Zusicherungen und Garantien
ab:

    Garmin-Cayman
hereby represents and warrants to Garmin-Switzerland that:

    

    
      	
               
      

            	
              (a)

            	
              Garmin-Cayman
      ist eine nach dem Recht der Cayman Islands
  gültig

            

    

    
      	
               
      

            	
              gegründete
      und fortbestehende Gesellschaft (exempted
      company);

            

    

    Garmin-Cayman
is an exempted company validly incorporated and existing under the laws of the
Cayman Islands;

    

    
      	
               
      

            	
              (b)

            	
              Die Garmin-Cayman Aktien sind bei
      Vollzug frei von Pfandrechten, Optionen oder anderen Rechten Dritter
      jeglicher Art (insbesondere Bezugsrechten);
  und

            

    

    At
the Closing the Garmin-Cayman Shares shall be free from all security interests,
options or other third party rights of any nature whatsoever (including, without
limitation, preemptive rights); and

    

    
      	
               
      

            	
              (c)

            	
              Unmittelbar nach Eintragung der
      Ordentlichen Kapitalerhöhung in das Handelsregister kann
      Garmin-Schweiz über
      die Garmin-Cayman Aktien frei verfügen.

            

    

    Garmin-Switzerland
shall have acquired the right to freely dispose of the Garmin-Cayman Shares
immediately upon registration of the Ordinary Capital Increase in the commercial
register.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	
              5.

            	
              Übergang
      von Nutzen und Gefahr

            

    

    
      Passing
of Risk and Benefit

    

     

    Nutzen
und Gefahr bezüglich der Garmin-Cayman Aktien, einschliesslich Stimmrechte und
Dividendenberechtigung (sowie alle anderen mit den Garmin-Cayman Aktien
zusammenhängenden Rechte) gehen unmittelbar mit der Eintragung der Ordentlichen
Kapitalerhöhung in das Handelsregister auf Garmin-Schweiz über.

    Risk
and benefit relating to the Garmin-Cayman Shares, including the voting rights
and the entitlement to dividends (as well as any other right associated with the
Garmin-Cayman Shares) shall pass to Garmin-Switzerland immediately upon
registration of the Ordinary Capital Increase in the commercial
register.

     

    
      	
              6.

            	
              Vollzug

            

    

    Closing

     

    
      	
              6.1

            	
              Vollzugsdatum

            

    

    Closing
Date

    

    Die
Sacheinlage der Garmin-Cayman Aktien an Garmin-Schweiz (der "Vollzug") erfolgt
vor oder an dem Tag, an welchem die Ordentliche Kapitalerhöhung in das Tagebuch
des Handelsregisters des Kantons Schaffhausen eingetragen wird (das
"Vollzugsdatum").

    The allotment by way of a
contribution in kind of
the Garmin-Cayman Shares to Garmin-Switzerland (the "Closing")" shall occur on or before
the day on which the Ordinary Capital Increase is registered in the daily
journal (Tagebuch) of the commercial register of the Canton of
Schaffhausen (the
"Closing Date").

     

    
      	
              6.2

            	
              Vollzugshandlungen

            

    

    Closing
Actions

     

    Die
Parteien nehmen bei Vollzug die folgenden Vollzugshandlungen vor:

    At
the Closing the Parties shall carry out the following closing
actions:

    

    
      	
               
      

            	
              (a)

            	
              Garmin-Cayman
      nimmt alle nach dem Recht der Cayman Islands
  erforderlichen

            

    

    
      	
               
      

            	
              Handlungen
      vor (oder lässt diese vornehmen), und unterzeichnet oder händigt alle nach
      diesem Recht erforderlichen Dokumente aus (oder veranlasst deren
      Unterzeichnung und Aushändigung), um die Garmin-Cayman Aktien mittels
      Sacheinlage in Garmin-Schweiz einzubringen und nach Eintragung der
      Sacheinlage in das Handelsregister diese als Aktionärin mit vollem
      Stimmrecht in das Aktienregister
einzutragen.

            

    

    Garmin-Cayman
shall take, or cause to be taken, all actions and shall execute and deliver, or
cause to be executed and delivered, all documents necessary pursuant to the laws
of the Cayman Islands to achieve the legally effective allotment of the
Garmin-Cayman Shares by way of a contribution in kind and to enter
Garmin-Switzerland, upon registration of the Contribution in Kind with the
commercial register, as the holder of the Garmin-Cayman Shares in its register
of members with full voting rights.

    

    
      	
               
      

            	
              (b)

            	
              Garmin-Cayman,
      welche auf Rechnung ihrer Aktionäre und im eigenen Namen und auf eigene
      Rechnung handelt, zeichnet sowohl die Nennwerterhöhung sowie alle neu
      auszugebenden Garmin-Schweiz Aktien in Übereinstimmung mit Artikel 630 und
      Artikel 650 des Schweizerischen Obligationenrechts ("OR"). Nach Ausgabe
      der Garmin-Schweiz Aktien nimmt Garmin-Cayman alle erforderlichen
      Handlungen vor, oder lässt diese vornehmen, um die Garmin-Schweiz Aktien
      rechtswirksam an ihre Aktionäre zu
übertragen.

            

    

    Garmin-Cayman,
acting on the account of its shareholders and in its own name and on its own
account, shall subscribe to the increase in the par value of each share and all
Garmin-Switzerland Shares to be newly issued in accordance with article 630 and
article 650 of the Swiss Code of Obligations ("CO"). Upon issuance of the
Garmin-Switzerland Shares, Garmin-Cayman shall take or cause to be taken all
actions necessary to achieve legally effective transfer of all
Garmin-Switzerland Shares to its shareholders.

    

    
      	
               
      

            	
              (c)

            	
              Garmin-Schweiz,
      handelnd durch den Verwaltungsrat, nimmt alle nach schweizerischem
      Gesellschaftsrecht erforderlichen Schritte vor, um die Garmin-Schweiz
      Aktien rechtswirksam auszugeben,
insbesondere.

            

    

    Garmin-Switzerland,
acting through the board of directors, shall take all actions necessary under
Swiss corporate law to achieve the legally effective issuance of the
Garmin-Switzerland Shares, in particular:

    

    
      	
               
      

            	
              (i)

            	
              gibt
      der Verwaltungsrat den Kapitalerhöhungsbericht gemäss Artikel 652e OR
      ab;

            

    

    the
board of directors shall adopt the report on the increase in capital in
accordance with article 652e CO;

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (ii)

            	
              veranlasst
      der Verwaltungsrat die Revisionsstelle der Garmin-Schweiz, die
      Prüfungsbestätigung gemäss Artikel 652f OR
  abzugeben;

            

    

    the board of directors shall cause the
statutory auditor of Garmin-Switzerland to release the audit confirmation in
accordance with article
652f CO;

    

    
      	
               
      

            	
              (iii)

            	
              nimmt
      der Verwaltungsrat den Zeichnungsschein von Garmin-Cayman
      entgegen;

            

    

    the
board of directors shall accept the subscription certificate of
Garmin-Cayman;

    

    
      	
               
      

            	
              (iv)

            	
              beschliesst
      der Verwaltungsrat die Durchführung der Ordentlichen Kapitalerhöhung und
      stellt in öffentlicher Urkunde fest, dass die Bedingungen von Artikel 652g
      OR erfüllt sind; und

            

    

    the
board-of directors shall resolve on the implementation of the Ordinary Capital
Increase and declare by way of public deed that the conditions set forth in
article 652g CO have been satisfied; and

    

    
      	
               
      

            	
              (v)

            	
              reicht
      der Verwaltungsrat eine Handelsregisteranmeldung betreffend die
      Ordentliche Kapitalerhöhung sowie die übrigen von der ausserordentlichen
      Generalversammlung, die am 27. Juni 2010 um [...] Uhr (MEZ),
      stattgefunden hat, genehmigten Änderungen der Statuten von Garmin-Schweiz,
      einschliesslich (ohne Einschränkung) die Schaffung eines genehmigten und
      eines bedingten Kapitals, ein, zusammen mit den entsprechenden
      Belegen.

            

    

    the
board of directors shall apply for registration of the Ordinary Capital Increase
as well as the other amendments to the articles of association of
Garmin-Switzerland, as approved at the extraordinary meeting of the
shareholders, having taken place on June 27, 2010, at [time] [a.m./p.m.] (CET)
including (without limitation) the creation of authorized and conditional
capital, together with the relevant evidentiary documentation.

     

    
      	
              7.

            	
              Allgemeine
      Bestimmungen

            

    

    General
Provisions

     

    
      	
              7.1

            	
              Kosten

            

    

    Costs

    

    Die im
Zusammenhang mit dem Abschluss dieses Vertrags und dem Vollzug anfallenden
Kosten trägt Garmin-Schweiz.

    The
costs incurred in connection with the execution of this Agreement and the
Closing shall be borne by Garmin-Switzerland.

     

    
      	
              7.2

            	
              Sprache

            

    

    Language

    

    Falls
sich zwischen der deutschen und der englischen Fassung dieses Vertrags
Abweichungen ergeben, gilt der deutsche Text.

    In
the event of deviations between the German and the English version of this
Agreement, the German wording shall prevail.

     

    
      	
              7.3

            	
              Anwendbares
      Recht / Gerichtsstand

            

    

    Applicable
Law / Jurisdiction

    

    Dieser
Vertrag untersteht schweizerischem Recht. Ausschliesslicher Gerichtsstand ist
Schaffhausen, Schweiz.

    This
Agreement shall be governed by and construed in accordance with Swiss law.
Exclusive place of jurisdiction is Schaffhausen, Switzerland.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    
      
        

      

    

     

    Zürich,
27. Juni 2010 

    Zurich,
June 27, 2010

     

    Garmin
Ltd., Camana Bay, Cayman Islands

     

    
      
        
          	 
      	 
      
	
                  By:     
       Andrew R. Etkind

                	 
      
	
                  Title:    Vice
      President, General Counsel and Secretary

                	 
      

        

      

    

     

    Garmin
Ltd., Schaffhausen, Switzerland

     

    
      
        
          	 
      	 
      
	
                  By:      
      Bernhard Klauser

                	 
      
	
                  Title:    Member
      of the Board of Directors

                	 
      

        

      

    
 

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    EXHIBIT
B

     

    Subscription
Form

    

    
      	
               
      

            	
              Zeichnungsschein / Subscription
      Form

            

    

    

    zur
Kapitalerhöhung der Garmin Ltd. mit Sitz in Schaffhausen /

    to
the capital increase of Garmin Ltd. with registered office in
Schaffhausen

     

      
        

      

    

     

    Unter
Bezugnahme auf den heutigen Beschluss der ausserordentlichen Generalversammlung
der

    With
reference to today’s extraordinary general meeting of

     

    Garmin
Ltd.

    mit Sitz
in Schaffhausen / with registered
office in Schaffhausen

     

    über die
Erhöhung des Aktienkapitals von nominal CHF 100,000 auf nominal CHF
2,106,700,000 (i) durch Erhöhung des Nennwertes jeder bestehenden Aktie von
bisher CHF 0.01 auf CHF 10 und (ii) durch Neuausgabe von 200,670,000 Namenaktien
mit einem Nennwert von je CHF 10

    regarding
the increase of the share capital from an aggregated par value of CHF 100,000 to
an aggregated par value of CHF 2,106,700,000 (i) by increasing the par value of
each existing share from CHF 0.01 to CHF 10 and (ii) by issuing 200,670,000 new
registered shares with a par value of CHF 10 each

    

    Garmin
Ltd.

    P.O
Box 10670, Grand Cayman, KY1-1006, Suite 3206B, 45 Market Street

    Gardenia
Court, Camana Bay, Cayman Islands

    (Garmin-Cayman)

    

    zeichnet
hiermit (i) die Erhöhung des Nennwertes jeder bestehenden Aktie von bisher CHF
0.01 auf neu CHF 10 im eigenen Namen und auf eigene Rechnung sowie (ii) 200,670,000 Namenaktien zu je
CHF 10 zum Ausgabebetrag von je CHF 10 auf Rechnung der
eingetragenen Aktionäre von Garmin-Cayman, welche am 25. Juni 2010 bei
Handelsschluss des NASDAQ Global Select Market (NASDAQ) sämtliche ausgegebenen
Aktien (common shares)
von Garmin-Cayman hielten.

    herewith
subscribes for (i) the increase in the par value of each existing share from CHF
0.01 to CHF 10 in its own name and for its own account as well as (ii) 200,670,000 shares with a par
value of CHF 10 each for an issue price of CHF 10 each for the account of the
registered holders of common shares of Garmin-Cayman outstanding at the close of
trading on the NASDAQ Global Select Market (NASDAQ) on June 25,
2010.

    

    Die
Unterzeichnende verpflichtet sich bedingungslos, den Ausgabebetrag von insgesamt
CHF 2,106,600,000 durch Sacheinlage von sämtlichen bei Handelsschluss der NASDAQ
am 25. Juni 2010 ausgegebenen Aktien (common shares) der
Garmin-Cayman von je nominal USD 0.005 im Gesamtwert von CHF [_____] zu
liberieren.

    The
undersigned herewith unconditionally undertakes to make available the total
issue price of CHF  2,106,600,000 by way of a contribution in kind of
the common shares in Garmin-Cayman issued and outstanding at the close of
trading on NASDAQ on June 25, 2010, with a par value of USD 0.005 each in the
total value of CHF [_____].

    

    
      
        
          
            	 
      	 
      	
                    Garmin
      Ltd., Cayman Islands

                  
	 
      	 
      	 
      
	 
      	 
      	 
      

          

        

      

    
 

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
      
        
          
            	
                    Ort,
      Datum / place, date

                  	
                    represented
      by Andrew R.
Etkind

                  

          

        

      

    

     

    EXHIBIT
C

    Scheme of
Arrangement

     

      
        

      

    

    SCHEME
OF ARRANGEMENT

      
        

      

    

     

    IN
THE GRAND COURT OF THE CAYMAN ISLANDS

    FINANCIAL
SERVICES DIVISION

    

    CAUSE
NO : [*] OF 2010

    

    IN
THE MATTER OF GARMIN LTD.

     

    and

     

    IN
THE MATTER OF SECTION 86 OF

    THE
COMPANIES LAW (2009 REVISION) OF THE CAYMAN ISLANDS

      

      
        

      

    

     

    SCHEME
OF ARRANGEMENT

    

    between

    

    GARMIN
LTD.

    ("Garmin-Cayman")

    

    and

    

    GARMIN
LTD.

    ("Garmin-Switzerland")

    

    and

    

    THE
SCHEME SHAREHOLDERS (as defined herein)

     

    
      
        

      

    

     

    PRELIMINARY

     

    
      
        

      

    

     

    In this
Scheme, unless inconsistent with the subject or context, the following
expressions shall bear the meanings respectively set opposite them:

    

    
      
        
          	
                  "Allowed
      Proceeding"

                	
                  Any
      Proceeding by a Scheme Shareholder to enforce its rights under this Scheme
      where any party fails to perform its obligations under this
      Scheme.
 

                
	
                  "Business
      Day"

                	
                  Any
      day other than (1) a day on which banks are required or permitted by law
      to be closed in New York, USA, the Cayman Islands, or Schaffhausen,
      Switzerland; or (2) a day on which the NASDAQ is closed for
      trading. 

                

        

      

    
 

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    
      
        
          	
                  "Cayman
      Court"

                	
                  The
      Grand Court of the Cayman Islands and any court capable of hearing appeals
      therefrom.
 

                
	
                  "Code"

                	
                  The
      U.S. Internal Revenue Code of 1986, as
  amended.
 

                
	
                  "Companies
      Law"

                	
                  The
      Companies Law (2009 Revision) of the Cayman Islands, and its predecessors,
      as consolidated and revised from time to
time.
 

                
	
                  "Garmin-Cayman"

                	
                  Garmin
      Ltd., an exempted company incorporated in the Cayman Islands with limited
      liability, the common shares of which are currently listed on the
      NASDAQ.
 

                
	
                  "Garmin-Switzerland
      Shares" 

                	
                  registered
      shares of Garmin-Switzerland to be issued pursuant to Clause
      2.
 

                
	
                  "Garmin-Switzerland"

                	
                  Garmin
      Ltd., a company incorporated under the laws of Switzerland with limited
      liability with its registered office in the town of Schaffhausen in the
      Canton of Schaffhausen, Switzerland, and with registered number
      CH-290.3.016.704-3.
 

                
	
                  "Latest
      Practicable Date"

                	
                  29
      March, 2010, being the latest practicable date for the purposes of
      ascertaining certain information contained
    herein.
 

                
	
                  "Parties"

                	
                  Garmin-Cayman,
      Garmin-Switzerland and the Scheme
  Shareholders.
 

                
	
                  "Proceeding"

                	
                  Any
      process, suit, action, legal or other proceeding, including without
      limitation any arbitration, mediation, alternative dispute resolution,
      judicial review, adjudication, demand, execution, restraint, forfeiture,
      re-entry, seizure, lien, enforcement of judgment, enforcement of any
      security or enforcement of any letters of
  credit.
 

                
	
                  "Prohibited
      Proceeding"

                	
                  Any
      Proceeding against Garmin-Cayman or Garmin-Switzerland or their
      subsidiaries or property, or any of their directors, officers, employees
      or agents, in any jurisdiction whatsoever other than an Allowed
      Proceeding.
 

                
	
                  "Proxy
      Statement"

                	
                  The
      proxy statement of Garmin-Cayman dated [*], 2010 issued to the Scheme
      Shareholders in connection with this Scheme by order of the Cayman Court
      on [6 April], 2010.
 

                
	
                  "Register"

                	
                  The
      register of members of Garmin-Cayman.
 

                
	
                  "Scheme
      Meeting"

                	
                  The
      class meeting of the Scheme Shareholders convened by the Cayman Court for
      the purposes of considering, and if seen fit, approving this
      Scheme. 

                

        

      

    
 

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      
        	
                "Scheme
      Shareholders"

              	
                The
      registered holders of the Scheme Shares, as recorded on the
      Register.
 

              
	
                "Scheme
      Shares"

              	
                Common
      shares issued by Garmin-Cayman with a par value US$0.005 per
      share.
 

              
	
                "Scheme"

              	
                This
      scheme of arrangement in its present form or with or subject to any
      modifications, additions or conditions which the Cayman Court may approve
      or impose.
 

              
	
                "Transaction
      Time"

              	
                The
      time at which Part I of this Scheme becomes effective in accordance with
      Clause 5 of this Scheme.
 

              
	
                "Transaction"

              	
                The
      transaction to be effected by this
Scheme.

              

      

    

    

    
      	
            	
              (A)

            	
              Garmin-Cayman
      was incorporated as an exempted company on 24 July 2000 in the Cayman
      Islands under the Companies Law.  The authorised share capital
      of Garmin-Cayman is US$6,000,000 divided into 1,000,000,000 common shares
      of par value US$0.005 each and 1,000,000 preferred shares of a par value
      of US$1.00 each. As at the Latest Practicable Date, 199,128,294
      Garmin-Cayman common shares were issued and fully paid, and no preferred
      shares had been issued.

            

    

    

    
      	
            	
              (B)

            	
              Garmin-Cayman
      proposes to relocate the ultimate parent holding company of the Garmin
      group from the Cayman Islands to the town of Schaffhausen in the canton of
      Schaffhausen, Switzerland, by way of this Scheme, such that upon the
      Transaction Time Garmin-Cayman shall become a wholly owned subsidiary of
      Garmin Switzerland.

            

    

    

    
      	
            	
              (C)

            	
              The
      Parties intend for the Transaction to qualify as a reorganization under
      Section 368(a)(1)(F) of the Code.

            

    

    

    
      	
            	
              (D)

            	
              Garmin-Switzerland
      has undertaken to the Cayman Court to be bound by this Scheme and to
      execute and do and procure to be executed and done all such documents,
      acts and things as may be necessary or desirable to be executed and done
      by it for the purpose of giving effect to this
  Scheme.

            

    

     

    
      
        

      
 

    SCHEME
OF ARRANGEMENT

     

    
      
        

      

    PART
I

    

    SHARE
EXCHANGE

    

    
      	
               
      

            	
              1.

            	
              At
      the Transaction Time, all issued and outstanding Scheme Shares shall be
      transferred to Garmin-Switzerland and such Scheme Shares shall be credited
      as fully paid and recorded in the Register in the name of
      Garmin-Switzerland.

            

    

    

    
      	
               
      

            	
              2.

            	
              In
      consideration of the transfer of the Scheme Shares pursuant to Clause 1 of
      this Scheme, prior to the next opening of the NASDAQ after the Transaction
      Time Garmin-Switzerland will issue to each Scheme Shareholder one
      registered Garmin-Switzerland Share for each Scheme Share that was
      transferred pursuant to Clause 1 of this Scheme that such Scheme
      Shareholder held immediately prior to the Transaction
  Time.

            

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    

    
      	
               
      

            	
              3.

            	
              As
      from the Transaction Time, the Scheme Shareholders prior to the
      Transaction Time shall in accordance with this Scheme cease to have any
      rights with respect to the Scheme Shares, except the right to receive the
      consideration set out in Clause 2 of this Scheme, provided, however, that
      nothing in this Scheme shall in any way affect the right (if any) of a
      shareholder of Garmin-Cayman to receive any dividend declared by
      Garmin-Cayman prior to the Transaction Time but which has not been paid
      prior to the Transaction Time.

            

    

    

    
      	
               
      

            	
              4.

            	
              As
      from the Transaction Time, each instrument of transfer and certificate
      existing at the Transaction Time in respect of a holding of any number of
      Scheme Shares shall cease to be valid for any purpose as an instrument of
      transfer or a certificate for such Scheme
  Shares.

            

    

    

    PART
II

    

    GENERAL

    

    
      	
               
      

            	
              5.

            	
              Part
      I of this Scheme shall become effective at 3:00 am Cayman Islands time on
      Sunday 27 June 2010 or such earlier or later date and time as the board of
      Garmin-Cayman (or its duly authorised officer) shall at any time determine
      (such earlier or later time not to be a time at which the NASDAQ is open
      for trading), provided that at or by that time all of the following
      conditions are satisfied or, to the extent permitted law, waived by
      Garmin-Cayman and
Garmin-Switzerland:

            

    

    

    
      	
               
      

            	
              (a)

            	
              a
      definitive version of the Proxy Statement has been filed with the United
      States Securities Exchange
Commission;

            

    

    

    
      	
               
      

            	
              (b)

            	
              this
      Scheme is approved by the affirmative vote at the Scheme Meeting of a
      majority in number representing 75% or more in value of the Scheme Shares
      present and voting in person or by proxy at the Scheme Meeting on the
      resolution to approve this Scheme;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      requisite court order sanctioning this Scheme is obtained from the Cayman
      Court;

            

    

    

    
      	
               
      

            	
              (d)

            	
              a
      copy of the order of the Cayman Court referred to at clause 5(c) is lodged
      with the Cayman Islands Registrar of
Companies;

            

    

    

    
      	
               
      

            	
              (e)

            	
              there
      is no threatened, pending or effective decree, order, injunction or other
      legal restraint prohibiting the consummation of the
  Scheme;

            

    

    

    
      	
               
      

            	
              (f)

            	
              all
      consents and governmental authorizations that are necessary, desirable or
      appropriate in connection with the Transaction are obtained on terms
      acceptable to Garmin-Cayman (as it should think fit its absolute
      discretion) and are in full force and
effect;

            

    

    

    
      	
               
      

            	
              (g)

            	
              Garmin-Cayman
      shall have received an opinion from KPMG LLP, in form and substance
      reasonably satisfactory to it, confirming the matters discussed
      under  the caption "Material Tax Considerations—U.S. Federal
      Income Tax Considerations;" in the proxy statement of Garmin-Cayman
      distributed to the Scheme Shareholders in connection with the Scheme
      Meeting.

            

    

    

    
      	
               
      

            	
              (h)

            	
              Garmin-Cayman
      shall have received an opinion from KPMG AG, in form and substance
      reasonably satisfactory to it, confirming the matters discussed
      under  the caption "Material Tax Considerations—Swiss Tax
      Considerations;" in the proxy statement of Garmin-Cayman distributed to
      the Scheme Shareholders in connection with the Scheme
    Meeting.

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      Garmin-Switzerland shares to be issued pursuant to the Scheme are
      authorized for listing on the NASDAQ, subject to official notice of
      issuance.

            

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (j)

            	
              Garmin
      Cayman receives in escrow an opinion from Maples and Calder, in form and
      substance reasonably satisfactory to it, regarding the matters discussed
      in Securities Exchange Commission Division of Corporation Finance Legal
      Bulletin No. 3A (CF) dated June 18,
2008.

            

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (k)

            	
              Garmin-Switzerland
      and Garmin-Cayman execute a Transaction Agreement pursuant to which, among
      other things, Garmin Switzerland agrees to adopt Garmin-Cayman's Equity
      Compensation and Benefit Plans (as defined in the Transaction
      Agreement).

            

    

    

    
      	
               
      

            	
              6.

            	
              All
      mandates or other instructions to Garmin-Cayman in force at the
      Transaction Time relating to any of the Scheme Shares (including, without
      limitation, elections for the payment of dividends by way of scrip (if
      any)) shall, mutatis mutandis immediately after the Transaction Time, be
      deemed to be valid as effective mandates or instructions in respect of the
      Garmin-Switzerland Shares received in consideration of the transfer of
      such Scheme Shares.

            

    

    

    
      	
               
      

            	
              7.

            	
              Subject
      to any applicable U.S. securities laws, this Scheme may be amended,
      modified or supplemented at any time before or after its approval by the
      shareholders of Garmin-Cayman at the Scheme Meetings. At the Cayman Court
      hearing to sanction this Scheme, the Cayman Court may impose such
      conditions, modifications and amendments as it deems appropriate in
      relation to this Scheme but will not impose any material changes without
      the joint consent of Garmin-Cayman and Garmin-Switzerland. Garmin-Cayman
      may, subject to any applicable U.S. securities laws, consent to any
      condition, modification or amendment of this Scheme on behalf of the
      Scheme Shareholders which Garmin-Cayman may think fit to approve or
      impose. After its approval, no amendment, modification or supplement may
      be made or effected that legally requires further approval by shareholders
      or any class of shareholders of Garmin-Cayman without obtaining that
      approval.

            

    

    

    
      	
               
      

            	
              8.

            	
              Garmin-Cayman
      may terminate or abandon this Scheme at any time prior to the Transaction
      Time without obtaining the approval of the Scheme Shareholders, even
      though this Scheme may have been approved at the Scheme Meetings and
      sanctioned by the Cayman Court and all other conditions may have been
      satisfied.

            

    

    

    
      	
               
      

            	
              9.

            	
              None
      of the Scheme Shareholders shall commence a Prohibited Proceeding in
      respect of or arising from this Scheme after the Transaction Time. A
      Scheme Shareholder may commence an Allowed Proceeding against
      Garmin-Cayman or Garmin-Switzerland after the Transaction Time provided
      that it has first given Garmin-Cayman and Garmin-Switzerland five clear
      Business Days’ prior notice in writing of its intention to do
      so.

            

    

    

    
      	
            	
              10.

            	
              Any
      notice or other written communication to be given under or in relation to
      this Scheme (other than pursuant to Clause 15)  shall be given
      in writing and shall be deemed to have been duly given if it is delivered
      by hand or sent by post to:

            

    

    

    
      	
               
      

            	
              (a)

            	
              in
      the case of Garmin-Cayman, Garmin Ltd., P.O. Box 10670, Grand Cayman
      KY1-1006, Suite 3206B, 45 Market Street, Gardenia Court, Camana Bay,
      Cayman Islands, marked for the attention of the Company
      Secretary;

            

    

    

    
      	
               
      

            	
              (b)

            	
              in
      the case of Garmin-Switzerland: Garmin Ltd., c/o Klauser & Partner AG,
      Pestalozzistrasse 2, 8200 Schaffhausen,
  Switzerland;

            

    

    

    
      	
               
      

            	
              (c)

            	
              in
      the case of any Scheme Shareholder, his, her or its address as it appeared
      on the Register immediately prior to the Transaction Time;
    and

            

    

    

    
      	
               
      

            	
              (d)

            	
              in
      the case of any other person, any address set forth for that person in any
      agreement entered into in connection with this Scheme or the last known
      address according to the records of Garmin-Cayman, or by fax or email to
      its last known fax number or email address according to the records of
      Garmin-Cayman.

            

    

    

    
      	
            	
              11.

            	
              In
      proving service, it shall be sufficient proof, in the case of a notice
      sent by post, that the envelope was properly stamped, addressed and placed
      in the post.

            

    

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    
      	
            	
              12.

            	
              Without
      limiting the manner in which notice or other written communication may be
      given or deemed given pursuant to any other clause of this Scheme, any
      notice or other written communication to be given under this Scheme shall
      be deemed to have been served as provided in Articles 142 to 145 of
      Garmin-Cayman’s Articles of
Association.

            

    

    

    
      	
            	
              13.

            	
              The
      accidental omission to send any notice, written communication or other
      document in accordance with Clauses 10 or 11 or the non-receipt of any
      such notice by a Scheme Shareholder, shall not affect the provisions of
      this Scheme.

            

    

    

    
      	
            	
              14.

            	
              Garmin-Cayman
      shall not be responsible for any loss or delay in the transmission of any
      notices, or other documents posted by or to a Scheme Shareholder, which
      shall be posted at the risk of such Scheme
  Shareholder.

            

    

    

    
      	
            	
              15.

            	
              Garmin-Switzerland
      shall give notification of this Scheme having become
      effective.  Garmin-Cayman shall give notification if it decides
      to terminate or abandon the Scheme pursuant to Clause 8.  This
      notification, and any other notice or other written communication that is
      required to be given to all or substantially all of the Scheme
      Shareholders, may (but is not required to) be made by issuing a press
      release.

            

    

    

    
      	
            	
              16.

            	
              The
      operative terms of this Scheme shall be governed by, and construed in
      accordance with, the laws of the Cayman Islands and the Scheme
      Shareholders hereby agree that the courts of the Cayman Islands shall have
      exclusive jurisdiction to hear and determine any Proceeding and to settle
      any dispute which arises out of or connected with the terms of this Scheme
      or their implementation or out of any action taken or omitted to be taken
      under this Scheme or in connection with the administration of this Scheme
      and for such purposes, the Parties irrevocably submit to the jurisdiction
      of the courts of the Cayman
Islands.

            

    

    

    
      	
            	
              17.

            	
              If
      any provision (or any part of any provision) of this Scheme is found by
      the Cayman Court to be illegal or unenforceable, it shall be severed from
      this Scheme and the remaining provisions of this Scheme shall continue in
      force.

            

    

    

    
      	
            	
              18.

            	
              Notwithstanding
      any other clause of this Scheme, unless Part I of this Scheme has become
      effective on or before December 31, 2010 (or such later date, if any, as
      the Cayman Court may allow), this Scheme shall lapse and be of no further
      effect.

            

    

    

    Dated
[*], 2010
 

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    EXHIBIT
D

    

    Letter Signed by Garmin
Switzerland

    

    Confirming that It Agrees to
be Bound by Scheme of Arrangement

     

    IN
THE MATTER OF GARMIN LTD.

    

    LETTER OF
INSTRUCTION TO         
AND UNDERTAKING TO BE BOUND BY SCHEME (to be submitted by Garmin Ltd., a Swiss
corporation)

    

    (letterhead
of Garmin Ltd.)

    

    [Name]

    [Address]

    

    Attn:
                         

    

    Dear
Sirs,

    

    Re: Scheme of
Arrangement
between Garmin Ltd. and its Scheme Shareholders

    

            Please
accept this letter as your instructions to appear on our behalf before the Grand
Court of the Cayman Islands upon the hearing of the petition to sanction a
scheme of arrangement between Garmin Ltd. and its Scheme Shareholders. You
are instructed to provide to the Court our undertaking to be bound by the terms
of the Scheme insofar as it requires us to take any action and issue shares or
do any thing in order to give effect to the Scheme.

    

    Yours
faithfully,

    

    Garmin
Ltd.

    a Swiss
corporation

    

    [NAME OF
SENDER]

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    EXHIBIT
E

    

    Articles of
Association

    

    
      
        	
                Statuten

              	 
      	
                Articles
      of Association

              
	 
      	 
      	 
      
	
                der

              	 
      	
                of

              
	 
      	 
      	 
      
	
                Garmin
      Ltd.

              	 
      	
                Garmin
      Ltd.

              
	
                (Garmin
      AG)

              	 
      	
                (Garmin
      AG)

              
	 
      	 
      	 
      
	
                mit
      Sitz in Schaffhausen

              	 
      	
                with
      registered office in
Schaffhausen

              

      

    

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    
      
        
          
            	
                    I.

                  	
                    Firma,
      Sitz und Zweck

                  	
                    25

                  
	 
      	 
      	 
      
	
                    I.

                  	
                    Company
      Name, Registered Office and Objects

                  	
                    25

                  
	 
      	 
      	 
      
	 
      	
                    Art.
      1

                  	
                    Firma
      und Sitz

                  	
                    25

                  
	 
      	
                    Art.
      1

                  	
                    Company
      Name and Registered Office

                  	
                    25

                  
	 
      	
                    Art.
      2

                  	
                    Zweck

                  	
                    25

                  
	 
      	
                    Art.
      2

                  	
                    Objects

                  	
                    25

                  
	 
      	 
      	 
      	 
      
	
                    II.

                  	
                    Aktienkapital
      und Aktien

                  	
                    25

                  
	 
      	 
      	 
      
	
                    II.

                  	
                    Share
      Capital and Shares

                  	
                    25

                  
	 
      	 
      	 
      
	 
      	
                    Art.
      3

                  	
                    Aktienkapital

                  	
                    25

                  
	 
      	
                    Art.
      3

                  	
                    Share
      Capital

                  	
                    25

                  
	 
      	
                    Art.
      3 a)

                  	
                    Sacheinlage

                  	
                    26

                  
	 
      	
                    Art.
      3 a)

                  	
                    Contribution
      in Kind

                  	
                    26

                  
	 
      	
                    Art.
      4

                  	
                    Anerkennung
      der Statuten

                  	
                    26

                  
	 
      	
                    Art.
      4

                  	
                    Recognition
      of Articles of Association

                  	
                    26

                  
	 
      	
                    Art.
      5

                  	
                    Genehmigtes
      Aktienkapital

                  	
                    26

                  
	 
      	
                    Art.
      5

                  	
                    Authorized
      Share Capital

                  	
                    26

                  
	 
      	
                    Art.
      6

                  	
                    Bedingtes
      Aktienkapital

                  	
                    27

                  
	 
      	
                    Art.
      6

                  	
                    Conditional
      Share Capital

                  	
                    27

                  
	 
      	
                    Art.
      7

                  	
                    Aktienzertifikate

                  	
                    27

                  
	 
      	
                    Art.
      7

                  	
                    Share
      Certificates

                  	
                    27

                  
	 
      	
                    Art.
      8

                  	
                    Aktienbuch,
      Eintragungsbeschränkungen, Nominees

                  	
                    28

                  
	 
      	
                    Art.
      8

                  	
                    Share
      Register, Restrictions on Registration, Nominees

                  	
                    28

                  
	 
      	
                    Art.
      9

                  	
                    Übertragung

                  	
                    29

                  
	 
      	
                    Art.
      9

                  	
                    Transfer

                  	
                    29

                  
	 
      	
                    Art.
      10

                  	
                    Umwandlung
      und Zerlegung von Aktien

                  	
                    30

                  
	 
      	
                    Art.
      10

                  	
                    Conversion
      and Splitting of Shares

                  	
                    30

                  
	 
      	
                    Art.
      11

                  	
                    Bezugsrechte

                  	
                    30

                  
	 
      	
                    Art.
      11

                  	
                    Subscription
      Rights

                  	
                    30

                  
	 
      	 
      	 
      	
                     

                  
	
                    III.

                  	
                    Organisation

                  	
                    30

                  
	 
      	 
      	 
      
	
                    III.

                  	
                    Organization

                  	
                    30

                  
	 
      	 
      	 
      
	 
      	
                    Art.
      12

                  	
                    Befugnisse

                  	
                    30

                  
	 
      	
                    Art.
      12

                  	
                    Authority

                  	
                    30

                  
	 
      	
                    Art.
      13

                  	
                    Recht
      zur Einberufung

                  	
                    31

                  
	 
      	
                    Art.
      13

                  	
                    Right
      to call a General Meeting

                  	
                    31

                  
	 
      	
                    Art.
      14

                  	
                    Form
      der Einberufung

                  	
                    31

                  
	 
      	
                    Art.
      14

                  	
                    Form
      of the calling of a General Meeting

                  	
                    31

                  
	 
      	
                    Art.
      15

                  	
                    Universalversammlung

                  	
                    32

                  
	 
      	
                    Art.
      15

                  	
                    Universal
      Meeting

                  	
                    32

                  
	 
      	
                    Art.
      16

                  	
                    Vorsitz
      und Protokoll

                  	
                    32

                  
	 
      	
                    Art.
      16

                  	
                    Chairperson
      and Minutes

                  	
                    32

                  
	 
      	
                    Art.
      17

                  	
                    Stimmrecht
      und Vertretung

                  	
                    33

                  
	 
      	
                    Art.
      17

                  	
                    Voting
      Rights and Representation

                  	
                    33

                  
	 
      	
                    Art.
      18

                  	
                    Teilnahme
      der Mitglieder des Verwaltungsrates

                  	
                    33

                  
	 
      	
                    Art.
      18

                  	
                    Participation
      of the Members of the Board of Directors

                  	
                    33

                  
	 
      	
                    Art.
      19

                  	
                    Beschlussfassung
      und Wahlen

                  	
                    33

                  
	 
      	
                    Art.
      19

                  	
                    Resolutions
      and Voting

                  	
                    33

                  
	 
      	
                    Art.
      20

                  	
                    Besonderes
      Stimmen Quorum

                  	
                    33

                  
	 
      	
                    Art.
      20

                  	
                    Special
      Vote

                  	
                    33

                  
	 
      	
                    Art.
      21

                  	
                    Auskunfts-
      und Einsichtsrecht der Aktionäre

                  	
                    36

                  
	 
      	
                    Art.
      21

                  	
                    Information
      and Inspection Rights of the Shareholders

                  	
                    36

                  

          

        

      

    
 

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    
      
        
          
            	 
      	
                    Art.
      22

                  	
                    Recht
      auf Einleitung einer Sonderprüfung

                  	
                    36

                  
	 
      	
                    Art.
      22

                  	
                    Right
      to Initiate a Special Audit

                  	
                    36

                  
	 
      	
                    Art.
      23

                  	
                    Präsenzquorum

                  	
                    36

                  
	 
      	
                    Art.
      23

                  	
                    Presence
      Quorum

                  	
                    36

                  
	 
      	
                    Art.
      24

                  	
                    Zusammensetzung

                  	
                    36

                  
	 
      	
                    Art.
      24

                  	
                    Composition

                  	
                    36

                  
	 
      	
                    Art.
      25

                  	
                    Amtsdauer

                  	
                    37

                  
	 
      	
                    Art.
      25

                  	
                    Term
      of Office

                  	
                    37

                  
	 
      	
                    Art.
      26

                  	
                    Konstituierung

                  	
                    38

                  
	 
      	
                    Art.
      26

                  	
                    Constitution

                  	
                    38

                  
	 
      	
                    Art.
      27

                  	
                    Aufgaben

                  	
                    38

                  
	 
      	
                    Art.
      27

                  	
                    Duties

                  	
                    38

                  
	 
      	
                    Art.
      28

                  	
                    Entschädigung

                  	
                    39

                  
	 
      	
                    Art.
      28

                  	
                    Compensation

                  	
                    39

                  
	 
      	
                    Art.
      29

                  	
                    Einberufung
      und Beschlussfassung

                  	
                    41

                  
	 
      	
                    Art.
      29

                  	
                    Calling
      of Meetings and Quorum

                  	
                    41

                  
	 
      	
                    Art.
      30

                  	
                    Delegation
      und Ausschüsse

                  	
                    42

                  
	 
      	
                    Art.
      30

                  	
                    Delegation
      and Committees

                  	
                    42

                  
	 
      	
                    Art.
      31

                  	
                    Protokoll

                  	
                    42

                  
	 
      	
                    Art.
      31

                  	
                    Minutes

                  	
                    42

                  
	 
      	
                    Art.
      32

                  	
                    Recht
      auf Auskunft und Einsicht

                  	
                    42

                  
	 
      	
                    Art.
      32

                  	
                    Right
      to Information and Inspection

                  	
                    42

                  
	 
      	
                    Art.
      33

                  	
                    Zeichnungsberechtigung

                  	
                    43

                  
	 
      	
                    Art.
      33

                  	
                    Signature
      Power

                  	
                    43

                  
	 
      	
                    Art.
      34

                  	
                    Revision

                  	
                    43

                  
	 
      	
                    Art.
      34

                  	
                    Audit

                  	
                    43

                  
	 
      	
                    Art.
      35

                  	
                    Organisation
      der Revisionsstelle

                  	
                    43

                  
	 
      	
                    Art.
      35

                  	
                    Organisation
      of the Auditor

                  	
                    43

                  
	 
      	
                    Art.
      36

                  	
                    Jahresrechnung

                  	
                    44

                  
	 
      	
                    Art.
      36

                  	
                    Annual
      Financial Accounts

                  	
                    44

                  
	 
      	
                    Art.
      37

                  	
                    Verwendung
      des Jahresgewinnes

                  	
                    44

                  
	 
      	
                    Art.
      37

                  	
                    Application
      of the Annual Profit

                  	
                    44

                  
	 
      	
                    Art.
      38

                  	
                    Auflösung
      und Liquidation

                  	
                    45

                  
	 
      	
                    Art.
      38

                  	
                    Winding-up
      and Liquidation

                  	
                    45

                  
	 
      	
                    Art.
      39

                  	
                    Mitteilungen
      und Bekanntmachungen

                  	
                    45

                  
	 
      	
                    Art.
      39

                  	
                    Communications
      and Notifications

                  	
                    45

                  
	 
      	
                    Art.
      40

                  	
                    Verbindlicher
      Originaltext

                  	
                    46

                  
	 
      	
                    Art.
      40

                  	
                    Original
      Language

                  	
                    46

                  
	 
      	
                    Art.
      41

                  	
                    Definitionen

                  	
                    46

                  
	 
      	
                    Art.
      41

                  	
                    Definitions

                  	
                    46

                  

          

        

      

    
 

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    
      
        	
                I.            Firma,
      Sitz und Zweck

              	 
      	
                I.           
      Company Name, Registered Office and Objects

              
	 
      	 
      	 
      
	
                Art.
      1     Firma und Sitz

              	 
      	
                Art.
      1     Company Name and Registered
    Office

              
	 
      	 
      	 
      
	
                Unter
      der Firma Garmin Ltd. (Garmin AG) besteht eine Aktiengesellschaft gemäss
      den vorliegenden Statuten und den Vorschriften des Schweizerischen
      Obligationenrechtes (OR). Der Sitz der Gesellschaft ist in
      Schaffhausen.

              	 
      	
                Under
      the company name of Garmin Ltd. (Garmin AG) exists a corporation pursuant
      to the present Articles of Association and the provisions of the Swiss
      Code of Obligations (CO). The registered office of the Company is in
      Schaffhausen.

              
	 
      	 
      	 
      
	
                Art.
      2     Zweck

              	 
      	
                Art.
      2     Objects

              
	 
      	 
      	 
      
	
                Die
      Gesellschaft bezweckt den Erwerb, das Halten, die Finanzierung, die
      Verwaltung und den Verkauf von Beteiligungen an inländischen sowie auch an
      ausländischen Unternehmen jeglicher Art.

              	 
      	
                The
      objects of the Company are the acquisition, holding, financing, management
      and sale of participations in Swiss and foreign enterprises of all
      kinds.

              
	 
      	 
      	 
      
	
                Die
      Gesellschaft kann jede Art von finanzieller Unterstützung für und an
      Gruppengesellschaften gewähren, einschliesslich der Leistung von
      Garantien.

              	 
      	
                The
      Company may provide any kind of financial assistance, including
      guarantees, to and for group companies.

              
	 
      	 
      	 
      
	
                Die
      Gesellschaft kann ferner im In- und Ausland Zweigniederlassungen und
      Tochtergesellschaften errichten, sich an anderen Unternehmen im In- und
      Ausland beteiligen sowie solche Unternehmen erwerben und finanzieren. Im
      Weiteren kann die Gesellschaft im In- und Ausland Grundstücke und
      gewerbliche Schutzrechte erwerben, belasten, veräussern und verwalten
      sowie alle Geschäfte tätigen, die geeignet sein können, den Zweck der
      Gesellschaft zu fördern, oder die direkt oder indirekt damit in
      Zusammenhang stehen.

              	 
      	
                The
      Company may establish branches and subsidiaries in Switzerland and abroad
      as well as participate in, acquire and finance other enterprises in
      Switzerland and abroad. The company may acquire, encumber, sell and manage
      real estate and intellectual property rights in Switzerland and abroad. It
      may furthermore make all transactions which may be appropriate to promote
      the purpose of the company or which are directly or indirectly connected
      therewith.

              
	 
      	 
      	 
      
	
                II.           
      Aktienkapital und Aktien

              	 
      	
                II.          
      Share Capital and Shares

              
	 
      	 
      	 
      
	
                Art.
      3     Aktienkapital

              	 
      	
                Art.
      3     Share Capital

              
	 
      	 
      	 
      
	
                Das
      Aktienkapital der Gesellschaft („Aktienkapital“) beträgt
      CHF [__] und ist eingeteilt in [__] Namenaktien („Aktien“) mit einem
      Nennwert von je CHF [__]. Die Aktien sind vollständig
      liberiert.

              	 
      	
                The
      share capital of the Company (“Share Capital”) amounts
      to CHF [__] and is divided into [__] registered shares (“Shares”) with a nominal
      value of CHF [__] each. The Shares are fully paid
  up.

              

      

    
 

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

      

    
      
        	
                Art.
      3 a)     Sacheinlage

              	 
      	
                Art.
      3 a)     Contribution in Kind

              
	 
      	 
      	 
      
	
                Die
      Gesellschaft übernimmt bei der Kapitalerhöhung vom 27. Juni 2010 von der
      Garmin Ltd. mit Sitz in Camana Bay, Cayman Islands („Garmin-Cayman”), gemäss
      Sacheinlagevertrag vom 27. Juni 2010 („Sacheinlagevertrag”)
      [__] Aktien (common
      shares) von Garmin-Cayman. Diese Aktien werden zu einem
      Übernahmewert von insgesamt CHF [__] übernommen. Als Gegenleistung für die
      Sacheinlage (i) wird der Nennwert jeder Aktie von bisher CHF 0.01 auf neu
      [__] erhöht und (ii) gibt die Gesellschaft Garmin-Cayman, handelnd im
      eigenen Namen und auf Rechnung der Aktionäre der Garmin-Cayman im
      Zeitpunkt unmittelbar vor Vollzug des Sacheinlagevertrages, insgesamt [__]
      voll einbezahlte Aktien mit einem Nennwert von je CHF[__] aus. Die
      Gesellschaft weist den Differenzbetrag von CHF [__] den Reserven aus
      Kapitaleinlage der Gesellschaft zu.

              	 
      	
                In
      connection with the capital increase of June 27, 2010, and in accordance
      with the contribution in kind agreement dated as of June 27, 2010 (“Contribution in Kind
      Agreement”), the Company acquires [__] common shares of Garmin
      Ltd., with registered office in Camana Bay, Cayman Islands (“Garmin-Cayman”) from
      Garmin-Cayman. The shares of Garmin-Cayman have a total value of CHF [__].
      As consideration for this contribution, (i) the nominal value of each
      Share is increased from CHF 0.01 to CHF [__] and (ii) the Company issues
      to Garmin Cayman, acting in its own name and for the account of the
      holders of common shares of Garmin-Cayman outstanding immediately prior to
      the completion of the Contribution in Kind Agreement, a total of [__]
      fully paid up Shares with a par value of CHF [__] each. The difference of
      CHF [__] is allocated to the reserves from capital contribution of the
      Company.

              
	 
      	 
      	 
      
	
                Art.
      4     Anerkennung der Statuten

              	 
      	
                Art.
      4     Recognition of Articles of
      Association

              
	 
      	 
      	 
      
	
                Jede
      Ausübung von Aktionärsrechten schliesst die Anerkennung der
      Gesellschaftsstatuten in der jeweils gültigen Fassung in sich
      ein.

              	 
      	
                Any
      exercise of shareholders’ rights automatically comprises recognition of
      the version of these Articles of Association in force at the
      time.

              
	 
      	 
      	 
      
	
                Art.
      5     Genehmigtes Aktienkapital

              	 
      	
                Art.
      5     Authorized Share Capital

              
	 
      	 
      	 
      
	
                Der
      Verwaltungsrat ist ermächtigt, das Aktienkapital jederzeit bis spätestens
      zum 27. Juni 2012, im Maximalbetrag von CHF [__] [50 % des
      Aktienkapitals] durch Ausgabe von höchstens [__] vollständig zu
      liberierenden Aktien mit einem Nennwert von je CHF [__] zu erhöhen. Eine
      Erhöhung des Aktienkapitals (i) auf dem Weg einer Festübernahme durch eine
      Bank, ein Bankenkonsortium oder Dritte und eines anschliessenden Angebots
      an die bisherigen Aktionäre sowie (ii) in Teilbeträgen ist
      zulässig.

              	 
      	
                The
      Board of Directors is authorized to increase the Share Capital no later
      than June 27, 2012, by a maximum amount of CHF [__] (50 % of the Share
      Capital) by issuing a maximum of [__] fully paid-up registered
      Shares with a par value of CHF [__] each. An increase of the Share Capital
      (i) by means of an offering underwritten by a financial institution, a
      syndicate of financial institutions or another third party or third
      parties, followed by an offer to the then-existing shareholders of the
      Company, and (ii) in partial amounts, shall be
  permissible.

              
	 
      	 
      	 
      
	
                Der
      Verwaltungsrat legt den Zeitpunkt der Ausgabe der neuen Aktien, deren
      Ausgabepreis, die Art der Liberierung, den Beginn der
      Dividendenberechtigung, die Bedingungen für die Ausübung der Bezugsrechte
      sowie die Zuteilung der Bezugsrechte, welche nicht ausgeübt wurden, fest.
      Nicht ausgeübte Bezugsrechte kann der Verwaltungsrat verfallen lassen,
      oder er kann diese bzw. die Aktien, für welche Bezugsrechte eingeräumt,
      aber nicht ausgeübt worden sind, zu Marktkonditionen platzieren oder
      anderweitig im Interesse der Gesellschaft verwenden.

              	 
      	
                The
      Board of Directors shall determine the time of the issuance, the issue
      price, the manner in which the new Shares have to be paid-up, the date
      from which the Shares carry the right to dividends, the conditions for the
      exercise of the preemptive rights and the allotment of preemptive rights
      that have not been exercised. The Board of Directors may allow the
      preemptive rights that have not been exercised to expire, or it may place
      such rights or Shares, the preemptive rights of which have not been
      exercised, at market conditions or use them otherwise in the interest of
      the Company

              
	 
      	 
      	 
      
	
                Der
      Verwaltungsrat ist ermächtigt, die Bezugsrechte der Aktionäre aus
      wichtigen Gründen zu entziehen oder zu beschränken und Dritten zuzuweisen,
      insbesondere:
 

              	 
      	
                The
      Board of Directors is authorized to withdraw or limit the preemptive
      rights of the shareholders and to allot them to third parties for
      important reasons, including:

              
	
                (a)
      wenn der Ausgabebetrag der neuen Aktien unter Berücksichtigung des
      Marktpreises festgesetzt wird; oder

              	 
      	
                (a)
      if the issue price of the new Shares is determined by reference to the
      market price; or

              

      

    
 

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

     

    
      
        	
                (b)
      für die Übernahme von Unternehmen, Unternehmensteilen oder Beteiligungen
      oder für die Finanzierung oder Refinanzierung solcher Transaktionen oder
      die Finanzierung von neuen Investitionsvorhaben der Gesellschaft;
      oder

              	 
      	
                (b)
      for the acquisition of an enterprise, part(s) of an enterprise or
      participations, or for the financing or refinancing of any of such
      transactions, or for the financing of new investment plans of the Company;
      or

              
	 
      	 
      	 
      
	
                (c)
      zum Zwecke der Erweiterung des Aktionärskreises in bestimmten Finanz- oder
      Investoren-Märkten, zur Beteiligung von strategischen Partnern, oder im
      Zusammenhang mit der Kotierung von neuen Aktien an in- oder ausländischen
      Börsen.

              	 
      	
                (c)
      for purposes of broadening the shareholder constituency of the Company in
      certain financial or investor markets, for purposes of the participation
      of strategic partners, or in connection with the listing of new Shares on
      domestic or foreign Exchanges.

              
	 
      	 
      	 
      
	
                Die
      neuen Aktien unterliegen den Eintragungsbeschränkungen in das Aktienbuch
      gemäss Art. 8 dieser Statuten.

              	 
      	
                The
      new Shares shall be subject to the limitations for registration in the
      share register pursuant to Art. 8 of these Articles of
      Association.

              
	 
      	 
      	 
      
	
                Art. 6    
      Bedingtes Aktienkapital

              	 
      	
                Art.
      6     Conditional Share Capital

              
	 
      	 
      	 
      
	
                Das
      Aktienkapital kann sich durch Ausgabe von höchstens [__] voll zu
      liberierenden Namenaktien im Nennwert von je CHF [__] um höchstens CHF
      [__] [50 % des
      Aktienkapitals] erhöhen durch:

              	 
      	
                The
      Share Capital may be increased in an amount not to exceed CHF [__] (50 % of the Share
      Capital) through the issuance of up to [__] fully paid-up
      registered Shares with a par value of CHF [__] each
    through:

              
	 
      	 
      	 
      
	
                die
      Ausübung von Optionsrechten, die Mitarbeitern und / oder Mitgliedern des
      Verwaltungsrates der Gesellschaft oder einer Gruppengesellschaft gewährt
      werden.

              	 
      	
                the
      exercise of option rights which are granted to employees and / or members
      of the board of directors of the Company or group
    companies.

              
	 
      	 
      	 
      
	
                Das
      Bezugsrecht der Aktionäre ist ausgeschlossen.

              	 
      	
                The
      preferential subscription rights of the shareholders are
      excluded.

              
	 
      	 
      	 
      
	
                Die
      Aktien, welche über die Ausübung von Umwandlungsrechten erworben werden,
      unterliegen den Eintragungsbeschränkungen in das Aktienbuch gemäss Art. 8
      dieser Statuten.

              	 
      	
                The
      Shares acquired through the exercise of rights shall be subject to the
      limitations for registration in the share register pursuant to Art. 8 of
      these Articles of Association.

              
	 
      	 
      	 
      
	
                Art.
      7     Aktienzertifikate

              	 
      	
                Art.
      7     Share Certificates

              
	 
      	 
      	 
      
	
                Anstelle
      von einzelnen Aktien können Aktienzertifikate über mehrere Aktien
      ausgestellt werden. Aktien und Zertifikate sind durch ein Mitglied des
      Verwaltungsrates zu unterzeichnen.

              	 
      	
                In
      lieu of single shares, the Company may issue share certificates covering
      several shares. Shares and certificates shall be signed by a member of the
      Board of Directors.

              
	 
      	 
      	 
      
	
                Ein
      Aktionär hat nur dann Anspruch auf die Ausgabe eines Aktienzertifikates,
      wenn der Verwaltungsrat die Ausgabe von Aktienzertifikaten beschliesst.
      Aktienzertifikate werden in der vom Verwaltungsrat festgelegten Form
      ausgegeben. Ein Aktionär kann jederzeit eine Bescheinigung über die Anzahl
      der von ihm gehaltenen Aktien verlangen.

              	 
      	
                A
      shareholder shall be entitled to a share certificate only if the Board of
      Directors resolves that share certificates shall be issued. Share
      certificates, if any, shall be in such form as the Board of Directors may
      determine. A shareholder may at any time request an attestation of the
      number of registered Shares held by
it.

              

      

    
 

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

     

    
      
        	
                Die
      Gesellschaft kann jederzeit auf die Ausgabe und Aushändigung von
      Zertifikaten verzichten und mit Zustimmung des Aktionärs ausgegebene
      Urkunden, die bei ihr eingeliefert werden, ersatzlos
      annullieren.

              	 
      	
                The
      Company may dispense with the obligation to issue and deliver
      certificates, and may, with the consent of the shareholder, cancel without
      replacement issued certificates delivered to the
  Company.

              
	 
      	 
      	 
      
	
                Der
      Verwaltungsrat kann beschliessen, den Aktionären anstelle von Wertpapieren
      einfache Beweisurkunden über ihre Beteiligung
auszustellen.

              	 
      	
                The
      Board of Directors may decide to issue to the shareholders, in lieu of
      securities, simple documentary evidence for their
      participation.

              
	 
      	 
      	 
      
	
                Die
      Gesellschaft kann ihre Aktien als Wertrechte gemäss Schweizerischem
      Obligationenrecht und Bucheffekten gemäss Bucheffektengesetz
      ausgeben.

              	 
      	
                The
      Company may issue its Shares as uncertificated securities within the
      meaning of the Swiss Code of Obligations and as intermediated securities
      within the meaning of the Intermediated Securities Act.

              
	 
      	 
      	 
      
	
                Art.
      8     Aktienbuch, 
Eintragungsbeschränkungen,
      
Nominees

              	 
      	
                Art.
      8   Share Register, Restrictions on Registration,
      Nominees

              
	 
      	 
      	 
      
	
                Die
      Gesellschaft selbst oder ein von ihr beauftragter Dritter führt ein
      Aktienbuch („Aktienbuch“). Darin
      werden die Eigentümer und Nutzniesser der Namenaktien sowie Nominees mit
      Namen und Vornamen, Adresse und Staatsangehörigkeit (bei Rechtseinheiten
      mit Firma und Sitz) eingetragen. Ändert eine im Aktienbuch eingetragene
      Zivilrechtliche Person ihre Adresse, so hat sie dies dem Aktienbuchführer
      mitzuteilen. Solange dies nicht geschehen ist, gelten alle schriftlichen
      Mitteilungen der Gesellschaft an die im Aktienbuch eingetragenen
      Zivilrechtlichen Personen als rechtsgültig an die bisher im Aktienbuch
      eingetragene Adresse erfolgt.

              	 
      	
                The
      Company shall maintain, itself or through a third party, a share register
      (“Share Register”)
      that lists the surname, first name, address and citizenship (or the name
      and registered office for legal entities) of the owners and usufructuaries
      of the registered Shares as well as the nominees. A Person recorded in the
      Share Register shall notify the share registrar of any change in address.
      Until such notification shall have occurred, all written communication
      from the Company to Persons of record shall be deemed to have validly been
      made if sent to the address recorded in the Share
  Register.

              
	 
      	 
      	 
      
	
                Ein
      Erwerber von Namenaktien wird auf Gesuch als Aktionär mit Stimmrecht im
      Aktienbuch eingetragen, vorausgesetzt, dass ein solcher Erwerber auf
      Aufforderung durch die Gesellschaft ausdrücklich erklärt, die Namenaktien
      im eigenen Namen und auf eigene Rechnung erworben zu haben. Der
      Verwaltungsrat kann Nominees, welche Namenaktien im eigenen Namen aber auf
      fremde Rechnung halten, als Aktionäre mit Stimmrecht im Aktienbuch der
      Gesellschaft eintragen. Der Verwaltungsrat kann Kriterien für die
      Billigung solcher Nominees als Aktionäre mit Stimmrecht festlegen. Die an
      den Namenaktien wirtschaftlich Berechtigten, welche die Namenaktien über
      einen Nominee halten, üben Aktionärsrechte mittelbar über den Nominee
      aus.

              	 
      	
                An
      acquirer of registered Shares shall be recorded upon request in the Share
      Register as a shareholder with voting rights; provided, however, that any
      such acquirer upon request of the Company expressly declares to have
      acquired the registered Shares in its own name and for its own account.
      The Board of Directors may record nominees who hold registered Shares in
      their own name, but for the account of third parties, as shareholders with
      voting rights in the Share Register of the Company. The Board of Directors
      may set forth the relevant requirements for the acceptance of nominees as
      shareholders with voting rights. Beneficial owners of registered Shares
      who hold registered Shares through a nominee exercise the shareholders’
      rights through the intermediation of such
  nominee.

              

      

    
 

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     

    
      
        	
                Sollte
      der Verwaltungsrat die Eintragung eines Aktionärs als Aktionär mit
      Stimmrecht ablehnen, muss dem Aktionär diese Ablehnung innerhalb von 20
      Tagen nach Erhalt des Eintragungsgesuches mitgeteilt werden. Aktionäre,
      die nicht als Aktionäre mit Stimmrecht anerkannt wurden, sind als
      Aktionäre ohne Stimmrecht im Aktienbuch einzutragen.

              	 
      	
                If
      the Board of Directors refuses to register a shareholder as a shareholder
      with voting rights, it shall notify the shareholder of such refusal within
      20 days upon receipt of the application. Nonrecognized shareholders shall
      be entered in the Share Register as shareholders without voting
      rights.

              
	 
      	 
      	 
      
	
                Der
      Verwaltungsrat kann nach Anhörung des eingetragenen Aktionärs dessen
      Eintragung im Aktienbuch als Aktionär mit Stimmrecht mit Rückwirkung auf
      das Datum der Eintragung streichen, wenn diese durch falsche oder
      irreführende Angaben zustande gekommen ist. Der Betroffene muss über die
      Streichung sofort informiert werden.

              	 
      	
                After
      hearing the registered shareholder concerned, the Board of Directors may
      cancel the registration of such shareholder as a shareholder with voting
      rights in the Share Register with retroactive effect as of the date of
      registration if such registration was made based on false or misleading
      information. The relevant shareholder shall be informed promptly of the
      cancellation.

              
	 
      	 
      	 
      
	
                Sofern
      die Gesellschaft an einer Börse im Ausland kotiert ist, ist es der
      Gesellschaft mit Bezug auf den Regelungsgegenstand dieses Art. 8 und
      soweit gesetzlich zulässig gestattet, die in der jeweiligen Rechtsordnung
      geltenden Vorschriften und Normierungen anzuwenden.

              	 
      	
                In
      case the Company is listed on any foreign Exchange, the Company is
      permitted to comply with the relevant rules and regulations that are
      applied in that foreign jurisdiction with regard to the subject of this
      Art. 8 to the extent permitted by Swiss law.

              
	 
      	 
      	 
      
	
                Zehn
      Tage vor einer Generalversammlung bis zu dem auf die Generalversammlung
      folgenden Tag nimmt die Gesellschaft keine Eintragungen in das Aktienbuch
      vor.

              	 
      	
                From
      ten days prior to a general meeting of the shareholders until the day
      following the general meeting of the shareholders, the Company shall not
      undertake any registration in the Share Register.

              
	 
      	 
      	 
      
	
                Art.
      9     Übertragung

              	 
      	
                Art.
      9     Transfer

              
	 
      	 
      	 
      
	
                Die
      Übertragung von Namenaktien und aller damit verbundenen Rechte zu Eigentum
      oder zur Nutzniessung erfolgt durch Indossament (Unterschrift) auf dem
      Aktientitel oder Zertifikat und Besitzesübertragung. Falls keine
      Aktientitel oder Zertifikate bestehen, erfolgt die Übertragung der Aktien
      zu Eigentum oder zur Nutzniessung durch eine schriftliche
      Abtretungserklärung.

              	 
      	
                The
      transfer of ownership or the granting of a usufruct in registered Shares
      and in all the rights connected therewith shall be made by endorsement
      (signature) of the share title or certificate and by transfer of
      possession. If neither share titles nor certificates have been issued,
      such transfer shall be made by written declaration of
      assignment.

              
	 
      	 
      	 
      
	
                Die
      Verfügung über die als Bucheffekten ausgegebenen Aktien erfolgt gemäss
      Bucheffektengesetz.

              	 
      	
                The
      transfer of Shares issued as intermediated securities, including the
      granting of security interests, shall be made according to the
      Intermediated Securities Act.

              
	 
      	 
      	 
      
	
                Im
      Rahmen des gesetzlich zulässigen und unter Vorbehalt der übrigen
      Bestimmungen dieses Art. 9 darf die Übertragung von unzertifizierten
      Aktien, die im Namen eines Aktionärs durch einen Transfer Agenten, Trust
      oder einer ähnlichen Einrichtung (der „Transfer Agent“)
      verwaltet werden, nur in Co-Operation mit diesem Transfer Agenten
      erfolgen.

              	 
      	
                Subject
      to the provisions contained in this Art. 9 and to the extent permitted by
      applicable law if uncertificated securities are administered on behalf of
      a shareholder by a transfer agent, trust company or similar entity (“Transfer Agent”), such
      securities and the rights deriving from them may be transferred only with
      the cooperation of the Transfer
Agent.

              

      

    
 

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

     

    
      
        	
                Art.
      10     Umwandlung und Zerlegung von
    Aktien

              	 
      	
                Art.
      10     Conversion and Splitting of
    Shares

              
	 
      	 
      	 
      
	
                Durch
      Änderung der Statuten kann die Generalversammlung jederzeit Namenaktien in
      Inhaberaktien umwandeln und umgekehrt.

              	 
      	
                The
      general meeting of the shareholders may at any time convert registered
      shares into bearer shares and vice versa by amending the Articles of
      Association.

              
	 
      	 
      	 
      
	
                Sie
      ist ferner befugt, Aktien in solche von kleinerem Nennwert zu zerlegen
      oder mit Zustimmung des Aktionärs zu solchen von grösserem Nennwert
      zusammenzulegen.

              	 
      	
                Furthermore,
      it is authorized to split shares into shares with lower nominal value or
      with the approval of the shareholder to consolidate shares into shares
      with higher nominal value.

              
	 
      	 
      	 
      
	
                Art.
      11     Bezugsrechte

              	 
      	
                Art.
      11     Subscription Rights

              
	 
      	 
      	 
      
	
                Im
      Falle der Erhöhung des Aktienkapitals durch Ausgabe neuer Aktien haben die
      bisherigen Aktionäre ein Bezugsrecht im Verhältnis ihrer bisherigen
      Beteiligung, sofern die Generalversammlung dieses Recht nicht aus
      wichtigen Gründen einschränkt oder ausschliesst. Wichtige Gründe sind
      insbesondere die Übernahme von Unternehmen, Unternehmensteilen oder
      Beteiligungen sowie die Beteiligung der Arbeitnehmer.

              	 
      	
                In
      the event of an increase of the Share Capital by issuing new shares, each
      existing shareholder has subscription rights in proportion to his/her
      existing shareholding, to the extent the general meeting of the
      shareholders does not restrict or exclude this right for important
      reasons. Important reasons are, in particular, the takeover of companies,
      of company parts, or of participations, as well as the participation of
      employees.

              
	 
      	 
      	 
      
	
                Die
      Generalversammlung setzt die Emissionsbedingungen fest, sofern sie nicht
      durch Beschluss den Verwaltungsrat dazu ermächtigt. Der Verwaltungsrat
      setzt die Einzahlungsbedingungen fest und gibt die Emissions- und
      Einzahlungsbedingungen den bezugsberechtigten Aktionären
      bekannt.

              	 
      	
                The
      general meeting of the shareholders shall determine the terms of the share
      issue to the extent it has not, by resolution, authorized the Board of
      Directors to do so. The Board of Directors shall determine the payment
      terms and communicate the issue and payment terms to the shareholders
      entitled to subscription rights.

              
	 
      	 
      	 
      
	
                III.           Organisation

              	 
      	
                III.          
      Organization

              
	 
      	 
      	 
      
	
                A.            
      Die Generalversammlung

              	 
      	
                A.            
      The General Meeting

              
	 
      	 
      	 
      
	
                Art.
      12     Befugnisse

              	 
      	
                Art.
      12     Authority

              
	 
      	 
      	 
      
	
                Oberstes
      Organ der Gesellschaft ist die Generalversammlung. Ihr stehen folgende
      unübertragbare Befugnisse zu:

              	 
      	
                The
      general meeting of the shareholders is the supreme corporate body of the
      Company. It has the following non-transferable powers:

              
	 
      	 
      	 
      
	
                1.    Festsetzung
      und Änderung der Statuten; vorbehalten bleibt Art. 27;

              	 
      	
                1.    adoption
      and amendment of the Articles of Association; Art. 27 remains
      reserved;

              
	
                2.    Festsetzung
      der Zahl der Mitglieder des Verwaltungsrates sowie Wahl und Abberufung
      derselben;

              	 
      	
                2.    determination
      of the number of members of the Board of Directors as well as their
      appointment and removal;

              
	
                3.    Wahl
      und Abberufung der Revisionsstelle;

              	 
      	
                3.    appointment
      and removal of the Auditors;

              
	
                4.    Genehmigung
      des Jahresberichtes des Verwaltungsrates;

              	 
      	
                4.    approval
      of the annual report of the Board of Directors;

              
	
                5.    Genehmigung
      der Jahresrechnung und einer allfälligen Konzernrechnung;

              	 
      	
                5.    approval
      of the annual financial accounts and (if applicable) the group
      accounts;

              
	
                6. 
      Beschlussfassung über die Verwendung des Bilanzgewinnes,
      insbesondere Festsetzung der Dividende sowie der Tantième des
      Verwaltungsrates;

              	
                  

              	
                6.    resolution
      on the application of the balance sheet profit, in particular,
      determination of dividend and the profit share of the Board of
      Directors;

              

      

    
 

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    
      
         

        
          
            
              	
                      7.    Entlastung
      der Mitglieder des Verwaltungsrates und der übrigen mit der
      Geschäftsführung betrauten Zivilrechtlichen Personen;

                    	 
      	
                      7.    discharge
      of the members of the Board of Directors and the Persons entrusted with
      the management;

                    
	
                      8.    Beschlussfassung
      über die Gegenstände, die der Generalversammlung durch das Gesetz oder die
      Statuten vorbehalten sind;

                    	 
      	
                      8.    resolution
      on matters which are reserved to the general meeting of the shareholders
      either by law or the Articles of Association;

                    
	
                      9.    Die
      Genehmigung von Zusammenschlüssen (die Definition eines Zusammenschlusses
      findet sich in Art. 41 dieser Statuten), (i) soweit sich die Zuständigkeit
      der Generalversammlung nicht bereits aus Art. 12 Ziff. 1. bis 8 ergibt und
      (ii) soweit nicht zwingend ein anderes Organ der Gesellschaft zuständig
      ist.

                    	 
      	
                      9.    the
      approval of Business Combinations (definition of this term is in Art. 41
      of these Articles of Association), if and to the extent that such approval
      (i) is not covered by the powers of the general meeting pursuant to Art.
      12 (1) to (8) and (ii) that it is not an inalienable power of another
      corporate body of the Company.

                    
	 
      	 
      	 
      
	
                      Art.
      13    Recht zur Einberufung

                    	 
      	
                      Art.
      13    Right to call a General
  Meeting

                    
	 
      	 
      	 
      
	
                      Die
      Generalversammlung wird vom Verwaltungsrat, nötigenfalls von der
      Revisionsstelle, einberufen. Das Einberufungsrecht steht auch den
      Liquidatoren und den Vertretern der Anleihensgläubiger zu. Sie findet am
      Gesellschaftssitz oder an einem anderen Ort im In- oder Ausland
      statt.

                    	 
      	
                      The
      general meeting of the shareholders shall be called by the Board of
      Directors or, if necessary, by the Auditors. Liquidators and
      representatives of bond creditors are also entitled to call the general
      meeting of the shareholders. It shall be held at the Company's registered
      office or at another place in Switzerland or abroad.

                    
	 
      	 
      	 
      
	
                      Die
      ordentliche Generalversammlung findet alljährlich innerhalb von sechs
      Monaten nach Abschluss des Geschäftsjahres statt, ausserordentliche
      Versammlungen werden nach Bedürfnis abgehalten.

                    	 
      	
                      The
      ordinary general meeting of the shareholders shall take place annually
      within six months after the end of the business year, extraordinary
      general meetings of the shareholders shall be held as
      necessary.

                    
	 
      	 
      	 
      
	
                      Art.
      14    Form der Einberufung

                    	 
      	
                      Art.
      14    Form of the calling of a General
      Meeting

                    
	 
      	 
      	 
      
	
                      Die
      Generalversammlung wird durch einmalige Anzeige in der in Art. 39 für
      Mitteilungen an die Aktionäre vorgeschriebenen Art und Weise einberufen.
      Diese Anzeige muss mindestens 20 Tage vor der Generalversammlung
      ergehen.

                    	 
      	
                      The
      general meeting of the shareholders shall be convened by a single notice
      as provided for in Art. 39 regarding the manner of communications to
      shareholders. Such notice must be given at least 20 days prior to the
      general meeting of the shareholders.

                    
	 
      	 
      	 
      
	
                      Tag,
      Zeit und Ort der Generalversammlung, die Verhandlungsgegenstände
      (Traktandenliste) sowie die Anträge des Verwaltungsrates und der
      Aktionäre, welche die Durchführung der Generalversammlung oder die
      Traktandierung eines Verhandlungsgegenstandes verlangt haben, sind bei der
      Einberufung bekannt zu geben.

                    	 
      	
                      The
      calling shall state the date, time and place of the general meeting of the
      shareholders as well as the agenda and motions of the Board of Directors
      and of the shareholders who have requested the holding of a general
      meeting of the shareholders or the inclusion of an item on the
      agenda.

                    
	 
      	 
      	 
      
	
                      Die
      Aktionäre sind bei der ordentlichen Generalversammlung darüber zu
      orientieren, dass der Geschäftsbericht (Jahresbericht des Verwaltungsrates
      und Jahresrechnung, bestehend aus Erfolgsrechnung, Bilanz und Anhang) und
      der Revisionsbericht mindestens 20 Tage vor dem Versammlungstag zur
      Einsicht der Aktionäre am Sitz der Gesellschaft aufliegen, sowie dass
      jeder Aktionär verlangen kann, dass ihm unverzüglich eine Ausfertigung
      dieser Unterlagen zugestellt wird.

                    	 
      	
                      As
      far as the ordinary general meeting is concerned, the shareholders have to
      be notified, that the annual business report (the management report of the
      Board of Directors and the annual financial accounts, comprising the
      profit and loss statement, the balance sheet and notes) and the audit
      report are open to inspection by the shareholders at the registered office
      at least 20 days prior to the date of the general meeting of the
      shareholders and that any shareholder may request that a copy of these
      documents be immediately sent to
him/her.

                    

            

          

        

        
          
             

          

          
            31

            
              

            

          

          
             

          

        

      

       

      
        
          
            	
                    Über
      Gegenstände, die nicht in dieser Weise angekündigt worden sind, können
      Beschlüsse nicht gefasst werden, ausser über einen Antrag auf Einberufung
      einer ausserordentlichen Generalversammlung, auf Durchführung einer
      Sonderprüfung oder auf Wahl einer Revisionsstelle infolge eines Begehrens
      eines Aktionärs nach Art. 727a Abs. 4 OR.

                  	 
      	
                    No
      resolutions may be passed on agenda items which have not been announced in
      this manner, except on motions for the calling of an extraordinary general
      meeting of the shareholders, for the conduct of a special audit or the
      appointment of auditors at the request of a shareholder pursuant to Art.
      727a paragraph 4 CO.

                  
	 
      	 
      	 
      
	
                    Art.
      15    Universalversammlung

                  	 
      	
                    Art.
      15    Universal Meeting

                  
	 
      	 
      	 
      
	
                    Die
      Eigentümer oder Vertreter sämtlicher Aktien können, falls kein Widerspruch
      erhoben wird, eine Generalversammlung ohne Einhaltung der für die
      Einberufung vorgeschriebenen Formvorschriften abhalten.

                  	 
      	
                    The
      holders of all Shares or their representatives may, if no objection is
      raised, hold a general meeting of the shareholders without observing the
      formalities required for the calling of a general meeting of the
      shareholders.

                  
	 
      	 
      	 
      
	
                    In
      dieser Versammlung kann über alle in den Geschäftskreis der
      Generalversammlung fallenden Gegenstände gültig verhandelt und Beschluss
      gefasst werden, solange die Eigentümer oder Vertreter sämtlicher Aktien
      anwesend sind.

                  	 
      	
                    Provided
      the holders of all shares or their representatives are present, all items
      within the powers of a general meeting of the shareholders may validly be
      discussed and resolved at such a meeting.

                  
	 
      	 
      	 
      
	
                    Art.
      16    Vorsitz und Protokoll

                  	 
      	
                    Art.
      16    Chairperson and Minutes

                  
	 
      	 
      	 
      
	
                    Die
      Generalversammlung wird durch den Präsidenten bzw. Vizepräsidenten des
      Verwaltungsrates oder einen von der Generalversammlung ad hoc gewählten
      Tagespräsidenten geleitet.

                  	 
      	
                    The
      general meeting of the shareholders shall be chaired by the Chairman,
      respectively the vice-chairman of the Board of Directors or a
      chairman-for-the-day appointed by the general meeting of the
      shareholders.

                  
	 
      	 
      	 
      
	
                    Der
      Vorsitzende ernennt den Protokollführer und den oder die Stimmenzähler.
      Der Protokollführer und der oder die Stimmenzähler müssen nicht Aktionäre
      sein. Der Vorsitzende kann zugleich auch Protokollführer und Stimmenzähler
      sein.

                  	 
      	
                    The
      chairperson shall appoint the keeper of the minutes and the scrutineer(s).
      The keeper of the minutes and the scrutineer(s) need not be shareholders.
      The chairperson may also be the keeper of the minutes and the
      scrutineer.

                  
	 
      	 
      	 
      
	
                    Über
      die Beschlüsse und Wahlen der Generalversammlung ist ein Protokoll zu
      führen, das vom Vorsitzenden und vom Protokollführer zu unterzeichnen ist.
      Es hält die Angaben gemäss Art. 702 Abs. 2 OR fest.

                  	 
      	
                    Minutes
      shall be kept of the resolutions and votes of the general meeting of the
      shareholders that shall be signed by the chairperson and the keeper of the
      minutes. They shall contain the information required by Art. 702 paragraph
      2 CO.

                  
	 
      	 
      	 
      
	
                    Die
      Aktionäre sind berechtigt, das Protokoll einzusehen.

                  	 
      	
                    Shareholders
      may inspect the
minutes.

                  

          

        

      

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    Art.
      17    Stimmrecht und Vertretung

                  	 
      	
                    Art.
      17    Voting Rights and
  Representation

                  
	 
      	 
      	 
      
	
                    Jede
      Aktie berechtigt zu einer Stimme.

                  	 
      	
                    Each
      share carries one vote.

                  
	 
      	 
      	 
      
	
                    Sofern
      die Statuten es vorsehen, ist jeder an einem bestimmten, durch den
      Verwaltungsrat vorgegebenen Stichtag, im Aktienbuch eingetragene Aktionär
      berechtigt, an der Generalversammlung teilzunehmen und an der
      Beschlussfassung mitzuwirken.

                  	 
      	
                    If
      provided in these Articles of Association, each shareholder recorded in
      the Share Register on a specific qualifying day which may be designated by
      the Board of Directors shall be entitled to participate at the general
      meeting of the shareholders and in any vote taken.

                  
	 
      	 
      	 
      
	
                    Jeder
      Aktionär kann sich in der Generalversammlung durch einen anderen Aktionär
      oder einen Dritten vertreten lassen. Vertreter haben sich durch eine
      schriftliche Vollmacht auszuweisen.

                  	 
      	
                    Each
      shareholder may arrange representation through another shareholder or
      third party. The representative must produce a written power of
      attorney.

                  
	 
      	 
      	 
      
	
                    Die
      Gesellschaft anerkennt nur einen Vertreter für jede Aktie.

                  	 
      	
                    The
      Company shall acknowledge only one representative for each
      share.

                  
	 
      	 
      	 
      
	
                    Der
      Verwaltungsrat kann die Einzelheiten über die Vertretung und Teilnahme an
      der Generalversammlung in Verfahrensvorschriften regeln.

                  	 
      	
                    The
      Board of Directors may issue the particulars of the right to
      representation and participation at the general meeting of the
      shareholders in procedural rules.

                  
	 
      	 
      	 
      
	
                    Stimmrechte
      und die damit verbundenen Rechte können der Gesellschaft gegenüber von
      einem Aktionär oder  Nutzniesser der Aktien  jeweils
      nur in dem Umfang ausgeübt werden, wie diese Person mit Stimmrecht im
      Aktienbuch eingetragen ist.

                  	 
      	
                    Voting
      rights and rights derived from them may be exercised in relation to the
      Company by a shareholder or usufructuary of Shares only to the extent that
      such Person is recorded in the Share Register with the right to exercise
      his voting rights.

                  
	 
      	 
      	 
      
	
                    Art.
      18   Teilnahme der Mitglieder des
      Verwaltungsrates

                  	 
      	
                    Art.
      18  Participation of the Members of the Board of
      Directors

                  
	 
      	 
      	 
      
	
                    Die
      Mitglieder des Verwaltungsrates sind berechtigt, an der Generalversammlung
      teilzunehmen. Sie können Anträge stellen.

                  	 
      	
                    The
      members of the Board of Directors may take part in the general meeting of
      the shareholders. They may submit motions.

                  
	 
      	 
      	 
      
	
                    Art.
      19    Beschlussfassung und Wahlen

                  	 
      	
                    Art.
      19    Resolutions and Voting

                  
	 
      	 
      	 
      
	
                    Die
      Generalversammlung fasst ihre Beschlüsse und vollzieht ihre Wahlen mit der
      Mehrheit der abgegebenen Aktienstimmen, unter Ausschluss der leeren,
      ungültigen und nicht ausübbaren Stimmen, soweit Gesetz oder Statuten
      nichts anderes bestimmen. Bei Stimmengleichheit gilt ein Beschluss als
      nicht zustande gekommen; bei Wahlen entscheidet das Los.

                  	 
      	
                    The
      general meeting of the shareholders shall pass its resolutions and votes
      with a majority of the share votes cast, excluding unmarked, invalid and
      non-exercisable votes, to the extent not otherwise stated by the law or
      the Articles of Association. Where the votes are tied, a resolution shall
      be deemed not to be passed; in the case of a vote, the decision shall be
      by lot.

                  
	 
      	 
      	 
      
	
                    Art.
      20    Besonderes Stimmen Quorum

                  	 
      	
                    Art.
      20    Special Vote

                  
	 
      	 
      	 
      
	
                    Folgende
      Beschlüsse müssen von Gesetzes wegen mindestens zwei Drittel der
      vertretenen Stimmen und die absolute Mehrheit der vertretenen
      Aktiennennwerte auf sich vereinigen:

                  	 
      	
                    The
      following resolutions require by law two thirds of the votes represented
      and the absolute majority of the nominal value of the Shares represented
      in favor:

                  

          

        

      

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    1.    Änderung
      des Gesellschaftszweckes;

                  	 
      	
                    1.    amendment
      of the Company objects;

                  
	
                    2.    Einführung
      von Stimmrechtsaktien;

                  	 
      	
                    2.    creation
      of Shares with privileged voting rights;

                  
	
                    3.    Beschränkung
      der Übertragbarkeit von Namenaktien;

                  	 
      	
                    3.    restriction
      on the transferability of registered Shares;

                  
	
                    4.    Genehmigte
      oder bedingte Kapitalerhöhung;

                  	 
      	
                    4.    approved
      or conditional capital increase;

                  
	
                    5.    Kapitalerhöhung
      aus Eigenkapital, gegen Sacheinlage oder zwecks Sachübernahme und die
      Gewährung von besonderen Vorteilen;

                  	 
      	
                    5.    capital
      increase out of equity, by way of contributions in kind or for the purpose
      of acquisition of assets and the granting of special
    benefits;

                  
	
                    6.    Einschränkung
      oder Aufhebung des Bezugsrechtes;

                  	 
      	
                    6.    restriction
      or withdrawal of subscription rights;

                  
	
                    7.    Verlegung
      des Sitzes der Gesellschaft;

                  	 
      	
                    7.    relocation
      of the registered office of the Company;

                  
	
                    8.    Auflösung
      der Gesellschaft;

                  	 
      	
                    8.    winding-up
      of the Company;

                  
	
                    9.    Fusionsbeschluss
      gemäss Art. 18 des Fusionsgesetzes (FusG), Spaltungsbeschluss gemäss
      Art. 43 FusG und Umwandlungsbeschluss gemäss Art. 64
      FusG.

                  	 
      	
                    9.    merger
      resolution pursuant to Art. 18 of the Merger Act (FusG), demerger
      resolution pursuant to Art. 43 FusG and transformation resolution pursuant
      to Art. 64 FusG.

                  
	 
      	 
      	 
      
	
                    Im
      Rahmen des gesetzlich Zulässigen und unter Vorbehalt anderslautender
      Vorschriften in diesem Art. 20 ist für folgende Gegenstände ein Beschluss
      der Generalversammlung erforderlich, der mindestens 75 % der an der
      Generalversammlung vertretenen Aktien auf sich vereinigt:

                  	 
      	
                    Subject
      to the provisions of the applicable law and except as otherwise expressly
      provided in this Art. 20, the approval of at least 75 % of the Shares
      represented at a general meeting of the shareholders shall be required
      for:

                  
	 
      	 
      	 
      
	
                    1.    Die
      Genehmigung von Zusammenschlüssen (die Definition eines Zusammenschlusses
      findet sich in Art. 41 dieser Statuten) gemäss Art. 12 (9) dieser
      Statuten. Dieses besondere Zustimmungserfordernis ist nicht erforderlich
      für Zusammenschlüsse, welche von der Mehrheit der Unparteiischen
      Mitgliedern des Verwaltungsrates (die Definition der Unparteiischen
      Mitglieder des Verwaltungsrates findet sich in Art. 41 der Statuten)
      genehmigt wurden. Für solche von der Mehrheit der Unparteiischen
      Mitgliedern des Verwaltungsrates genehmigte Zusammenschlüsse genügen die
      im Gesetz oder in den Statuten vorgesehenen Mehrheiten, je nach dem welche
      strenger sind. Für den Zweck dieser Bestimmung ist die Mehrheit der
      Unparteiischen Mitglieder des Verwaltungsrates berechtigt und
      verpflichtet, gestützt auf die ihnen nach angemessenem Aufwand zur
      Verfügung stehenden Informationen zu bestimmen, (i) ob eine Person ein
      Nahestehender Aktionär ist; (ii) die Anzahl Aktien, die eine Person oder
      eine Gesellschaft direkt oder indirekt hält; (iii) ob eine Gesellschaft
      eine Nahestehende Gesellschaft einer anderen ist; und ob (iv) die Aktiven,
      welche Gegenstand eines solchen Zusammenschlusses sind oder die von der
      Gesellschaft oder einer ihrer Tochtergesellschaften im Zusammenhang mit
      einem solchen Zusammenschluss ausgegebenen oder übertragenden Effekten
      einen aggregierten Marktwert von mindestens 25 % des Marktwertes der
      gesamten Aktiven unmittelbar vor dem Zusammenschluss haben. Die Mehrheit
      der Unparteiischen Mitglieder des Verwaltungsrates hat zudem das Recht,
      sämtliche Bestimmungen und Begriffe dieses Art. 20
    auszulegen.

                  	 
      	
                    1.    The
      approval of Business Combinations (definition of this term is in Art. 41
      of these Articles of Association) pursuant to Art. 12 (9) of these
      Articles of Association. The foregoing requiring a special resolution of
      the shareholders shall not be applicable to any particular Business
      Combination, and such Business Combination shall require only such vote as
      is required by the law or by these Articles of Association, whichever is
      greater, if the Business Combination shall have been approved by a
      majority of the Disinterested Directors (as hereinafter defined in Art. 41
      of these Articles of Association) whereby it is understood that such
      majority of the Disinterested Directors shall have the power and duty to
      determine for the purposes of this Article, on the basis of information
      known to them after reasonable inquiry, (i) whether a person is an
      Interested Shareholder; (ii) the number of Shares of which any person is
      the beneficial owner; (iii) whether a Person is an Affiliate of another;
      and (iv) whether the assets which are the subject of any Business
      Combination have, or any securities to be issued or transferred by the
      Company or any Subsidiary in any Business Combination have, an aggregate
      Fair Market Value equaling or exceeding twenty-five percent (25 %) of the
      Fair Market Value of the combined assets immediately prior to such
      transfer of the Company and its subsidiaries. A majority of the
      Disinterested Directors shall have the further power to interpret all of
      the terms and provisions of this Art.
20.

                  

          

        

      

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

         

      

      
        
          	
                  2.    Jede
      Änderung dieser Bestimmung.

                	 
      	
                  2.    Any
      change to this paragraph of Art. 20 of the Articles of
      Association.

                
	 
      	 
      	 
      
	
                  Ein
      Beschluss der Generalversammlung der mindestens zwei Drittel der
      Gesamtstimmen (die Definition von Gesamtstimmen findet sich in Art. 41
      dieser Statuten) auf sich vereinigt, ist erforderlich für:

                	 
      	
                  The
      approval of at least two thirds of the Total Voting Shares shall be
      required for (definition of the term Total Voting Shares is in Art. 41 of
      these Articles of Association):

                
	 
      	 
      	 
      
	
                  1.    Die
      Abwahl eines amtierenden Mitglieds des Verwaltungsrates

                	 
      	
                  1.    A
      resolution with respect to the removal of a serving member of the Board of
      Directors.

                
	
                  2.    Jede
      Änderung dieser Bestimmung

                	 
      	
                  2.    Any
      change to this paragraph of Art. 20 of the Articles of
      Association.

                
	 
      	 
      	 
      
	
                  Ein
      Beschluss der Generalversammlung der mindestens 75 % der Gesamtstimmen
      (die Definition von Gesamtstimmen findet sich in Art. 41 dieser Statuten)
      auf sich vereinigt, ist erforderlich für:

                	 
      	
                  The
      approval of at least 75 % of the Total Voting Shares shall be required for
      (definition of the term Total Voting Shares is in Art. 41 of these
      Articles of Association):

                
	 
      	 
      	 
      
	
                  1.    Die
      Reduktion oder Erhöhung der Anzahl Verwaltungsräte in Art. 24 dieser
      Statuten.

                	 
      	
                  1.    The
      increase or reduction of the number of members of the Board of Directors
      in Art. 24 of these Articles of Association.

                
	
                  2.    Jede
      Änderung dieser Bestimmung.

                	 
      	
                  2.    Any
      change to this paragraph of Art. 20 of the Articles of
      Association.

                
	 
      	 
      	 
      
	
                  Auf
      Verlangen eines Aktionärs erfolgt die Wahl der Mitglieder des
      Verwaltungsrates in geheimer Abstimmung. Die übrigen Wahlen und
      Beschlussfassungen erfolgen in offener Abstimmung, falls die
      Generalversammlung nichts anderes beschliesst.

                	 
      	
                  At
      the request of a shareholder the election of members of the Board of
      Directors shall take place by secret ballot. All other voting and passing
      of resolutions shall occur by open ballot unless otherwise resolved by the
      general meeting of the shareholders.

                
	 
      	 
      	 
      
	
                  Ist
      die Gesellschaft verpflichtet, ihre Jahresrechnung und gegebenenfalls ihre
      Konzernrechnung durch eine Revisionsstelle prüfen zu lassen, muss der
      Revisionsbericht vorliegen, bevor die Generalversammlung die
      Jahresrechnung und die Konzernrechnung genehmigt und über die Verwendung
      des Bilanzgewinns beschliesst. Wird eine ordentliche Revision
      durchgeführt, so muss die Revisionsstelle an der Generalversammlung
      anwesend sein. Die Generalversammlung kann durch einstimmigen Beschluss
      auf die Anwesenheit der Revisionsstelle verzichten.

                	 
      	
                  Where
      the Company is required to have its annual financial accounts and, where
      relevant, its group accounts audited by auditors, the audit report shall
      be presented to the general meeting of the shareholders prior to approval
      of the annual financial accounts and group accounts and prior to resolving
      on the application of the balance sheet profit. Where an ordinary audit is
      to be conducted, the Auditors shall be present at the general meeting of
      the shareholders. The general meeting of the shareholders may by way of a
      unanimous resolution, waive the requirement for the presence of the
      Auditors.

                

        

      

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    Art.
      21    Auskunfts- und Einsichtsrecht der
      Aktionäre

                  	 
      	
                    Art.
      21    Information and Inspection Rights of the
      Shareholders

                  
	 
      	 
      	 
      
	
                    Jeder
      Aktionär ist berechtigt, an der Generalversammlung vom Verwaltungsrat
      Auskunft über die Angelegenheiten der Gesellschaft und von der
      Revisionsstelle über Durchführung und Ergebnis ihrer Prüfung zu
      verlangen.

                  	 
      	
                    At
      the general meeting of the shareholders, any shareholder is entitled to
      request information from the Board of Directors concerning the affairs of
      the Company and from the Auditors concerning the conduct and the results
      of their review.

                  
	 
      	 
      	 
      
	
                    Die
      Auskunft ist insoweit zu erteilen, als sie für die Ausübung der
      Aktionärsrechte erforderlich ist. Sie kann verweigert werden, wenn durch
      sie Geschäftsgeheimnisse oder andere schutzwürdige Interessen der
      Gesellschaft gefährdet werden.

                  	 
      	
                    The
      information shall be given to the extent necessary for the exercising of
      shareholders' rights. It may be denied if business secrets or other
      interests of the Company worth being protected are
      jeopardized.

                  
	 
      	 
      	 
      
	
                    Die
      Geschäftsbücher und Korrespondenzen können nur mit ausdrücklicher
      Ermächtigung der Generalversammlung oder durch Beschluss des
      Verwaltungsrates und unter Wahrung des Geschäftsgeheimnisses eingesehen
      werden.

                  	 
      	
                    Company
      books and correspondence may only be inspected with the express
      authorization of the general meeting of the shareholders or by resolution
      of the Board of Directors and under the condition that business secrets
      are safeguarded.

                  
	 
      	 
      	 
      
	
                    Art.
      22    Recht auf Einleitung einer
      Sonderprüfung

                  	 
      	
                    Art.
      22    Right to Initiate a Special
  Audit

                  
	 
      	 
      	 
      
	
                    Jeder
      Aktionär kann der Generalversammlung beantragen, bestimmte Sachverhalte
      durch eine Sonderprüfung abklären zu lassen, sofern dies zur Ausübung der
      Aktionärsrechte erforderlich ist und er das Recht auf Auskunft oder das
      Recht auf Einsicht bereits ausgeübt hat.

                  	 
      	
                    Any
      shareholder may, at the general meeting of the shareholders, request that
      certain matters be subject to a special audit to the extent this is
      necessary for the exercising of shareholders' rights and he/she has
      previously exercised the right to information or the right to
      inspection.

                  
	 
      	 
      	 
      
	
                    Art.
      23    Präsenzquorum

                  	 
      	
                    Art.
      23    Presence Quorum

                  
	 
      	 
      	 
      
	
                    Jede
      Beschlussfassung oder Wahl setzt zu ihrer Gültigkeit im Zeitpunkt der
      Konstituierung der Generalversammlung ein Präsenzquorum von Aktionären,
      welche mindestens die Mehrheit aller Gesamtstimmen vertreten, voraus. Die
      Aktionäre können mit der Behandlung der Traktanden fortfahren, selbst wenn
      Aktionäre nach Bekanntgabe des Quorums durch den Vorsitzenden die
      Generalversammlung verlassen.

                  	 
      	
                    The
      adoption of any resolution or election requires the presence of at least a
      majority of the Total Voting Shares at the time when the general meeting
      of the shareholders proceeds to business. The shareholders present at a
      general meeting of the shareholders may continue to transact business,
      despite the withdrawal of shareholders from such general meeting of the
      shareholders following announcement of the presence quorum at that
      meeting.

                  
	 
      	 
      	 
      
	
                    B.            Der
      Verwaltungsrat

                  	 
      	
                    B.            The
      Board of Directors

                  
	 
      	 
      	 
      
	
                    Art.
      24    Zusammensetzung

                  	 
      	
                    Art.
      24    Composition

                  
	 
      	 
      	 
      
	
                    Der
      Verwaltungsrat besteht aus mindestens einem und höchstens zehn
      Mitgliedern.

                  	 
      	
                    The
      Board of Directors shall consist of no less than one and no more than ten
      members.

                  
	 
      	 
      	 
      
	
                    Solange
      die Namenaktien der Gesellschaft an einer in- oder ausländischen Börse
      kotiert sind, soll der Verwaltungsrat mindestens drei unabhängige
      Verwaltungsräte (Unabhängige Verwaltungsräte) ausweisen.

                  	 
      	
                    As
      long as the registered Shares of the Company are listed on a domestic or
      foreign Exchange, the Company shall maintain a minimum of three
      Independent Directors on its Board of
Directors.

                  

          

           

          
            
              
              

            

            
              36

              
                

              

            

            
              
              

            

          

           

          
            
              
                	
                        Art.
      25    Amtsdauer

                      	 
      	
                        Art.
      25    Term of Office

                      
	 
      	 
      	 
      
	
                        Die
      Verwaltungsräte werden vom Verwaltungsrat in drei Klassen aufgeteilt,
      welche als Klasse I, Klasse II und Klasse III bezeichnet werden. Die
      Verwaltungsräte sollen gleichmässig auf die drei Klassen aufgeteilt
      werden. Die erste Amtszeit der gewählten Verwaltungsräte endet wie
      folgt:

                      	 
      	
                        The
      Board of Directors shall divide its members into three classes, designated
      Class I, Class II and Class III. All Classes shall be as nearly equal in
      number as possible. The members of the Board of Directors as initially
      classified shall hold office for terms as follows:

                      
	 
      	 
      	 
      
	
                        Die
      Amtszeit der Verwaltungsratsmitglieder der Klasse I endet mit der
      ordentlichen Generalversammlung des Jahres 2011 oder mit der Wahl ihrer
      Nachfolger;

                      	 
      	
                        The
      Class I members of the Board of Directors shall hold office until the date
      of the ordinary general meeting of the shareholders in 2011 or until their
      successors shall be elected and qualified;

                      
	 
      	 
      	 
      
	
                        Die
      Amtszeit der Verwaltungsratsmitglieder der Klasse II endet mit der
      ordentlichen Generalversammlung des Jahres 2012 oder mit der Wahl ihrer
      Nachfolger;

                      	 
      	
                        The
      Class II members of the Board of Directors shall hold office until the
      date of the ordinary general meeting of the shareholders in 2012 or until
      their successors shall be elected and qualified;

                      
	 
      	 
      	 
      
	
                        Die
      Amtszeit der Verwaltungsratsmitglieder der Klasse III endet mit der
      ordentlichen Generalversammlung des Jahres 2013 oder mit der Wahl ihrer
      Nachfolger.

                      	 
      	
                        The
      Class III members of the Board of Directors shall hold office until the
      date of the ordinary general meeting of the shareholders in 2013 or until
      their successors shall be elected and qualified.

                      
	 
      	 
      	 
      
	
                        An
      jeder ordentlichen Generalversammlung soll jede Klasse Verwaltungsräte,
      deren Amtsdauer abläuft, für eine Amtsdauer von drei Jahren bzw. bis zur
      Wahl ihrer Nachfolger gewählt werden. Die Verwaltungsräte sind wieder
      wählbar.

                      	 
      	
                        At
      each ordinary general meeting of the shareholders, each class of the
      members of the Board of Directors whose term shall then expire shall be
      elected to hold office for a three-year term or until the election of
      their respective successor in office. The members of the Board of
      Directors are re-electable.

                      
	 
      	 
      	 
      
	
                        Der
      Verwaltungsrat legt die Reihenfolge der Wiederwahl fest, wobei die erste
      Amtszeit einer bestimmten Klasse von Verwaltungsräten auch weniger als
      drei Jahre betragen kann. Für den Zweck dieser Bestimmung ist unter einem
      Jahr der Zeitabschnitt zwischen zwei ordentlichen Generalversammlungen zu
      verstehen.

                      	 
      	
                        The
      Board of Directors shall establish the order of rotation, whereby the
      first term of office of members of a particular class may be less than
      three years. For purposes of this provision, one year shall mean the
      period between two ordinary general meetings of the
      shareholders.

                      
	 
      	 
      	 
      
	
                        Wenn
      ein Verwaltungsratsmitglied vor Ablauf seiner Amtsdauer aus welchen
      Gründen auch immer ersetzt wird, endet die Amtsdauer des an seiner Stelle
      gewählten neuen Verwaltungsratsmitgliedes mit dem Ende der Amtsdauer
      seines Vorgängers.

                      	 
      	
                        If,
      before the expiration of his term of office, a member of the Board of
      Director should be replaced for whatever reason, the term of office of the
      newly elected member of the Board of Directors shall expire at the end of
      the term of office of his predecessor.

                      
	 
      	 
      	 
      
	
                        Ist
      an der Gesellschaft eine juristische Person oder eine Handelsgesellschaft
      beteiligt, so ist sie als solche nicht als Mitglied des Verwaltungsrates
      wählbar; dagegen können an ihrer Stelle ihre Vertreter gewählt
      werden.

                      	 
      	
                        If
      a legal entity or another commercial enterprise is a shareholder of the
      Company, it shall not be eligible for membership on the Board of
      Directors; however, its representatives may be elected in lieu
      thereof.

                      

              

            

          

           

          
            
              
              

            

            
              37

              
                

              

            

            
              
              

            

          

           

        

      

      
        
          
            
              	
                      Art.
      26    Konstituierung

                    	 
      	
                      Art.
      26    Constitution

                    
	 
      	 
      	 
      
	
                      Besteht
      der Verwaltungsrat aus mehreren Personen, so konstituiert er sich selbst,
      indem er seinen Präsidenten („Verwaltungsratspräsident“ oder
      „Präsident“), seinen Sekretär sowie allfällige Vizepräsidenten
      wählt. Der Sekretär muss dem Verwaltungsrat nicht
    angehören.

                    	 
      	
                      Where
      the Board of Directors consists of several persons it shall organize
      itself so that it elects its own chairman (“Chairman of the Board of
      Directors” or “Chairman”) and the Secretary and it may elect one or
      more vice-chairman. The Secretary need not belong to the Board of
      Directors.

                    
	 
      	 
      	 
      
	
                      Art.
      27    Aufgaben

                    	 
      	
                      Art.
      27    Duties

                    
	 
      	 
      	 
      
	
                      Der
      Verwaltungsrat besorgt die laufenden Geschäfte und vertritt die
      Gesellschaft nach aussen.

                    	 
      	
                      The
      Board of Directors shall manage the ongoing business and represent the
      Company externally.

                    
	 
      	 
      	 
      
	
                      Der
      Verwaltungsrat hat die folgenden unübertragbaren und unentziehbaren
      Aufgaben:

                    	 
      	
                      The
      Board of Directors has the following non-transferable and inalienable
      duties:

                    
	 
      	 
      	 
      
	
                      Oberleitung
      der Gesellschaft und Erteilung der nötigen Weisungen;

                       

                    	 
      	
                      Supreme
      management of the Company and issuance of the relevant
      instructions;

                    
	
                      Festlegung
      der Organisation;

                       

                    	 
      	
                      Determination
      of the organisation;

                    
	
                      Ausgestaltung
      des Rechnungswesens, der Finanzkontrolle sowie der Finanzplanung, sofern
      diese für die Führung der Gesellschaft notwendig ist;

                       

                    	 
      	
                      Structuring
      of the accounting system, the financial controls and the financial
      planning to the extent that this is necessary for the management of the
      Company;

                    
	
                      Ernennung
      und Abberufung der mit der Geschäftsführung und der Vertretung betrauten
      Personen sowie Regelung der Zeichnungsberechtigung;

                       

                    	 
      	
                      Appointment
      and removal of the persons entrusted with the management and
      representation of the Company as well as regulation of signatory
      power;

                    
	
                      Oberaufsicht
      über die mit der Geschäftsführung betrauten Personen, namentlich im
      Hinblick auf die Befolgung der Gesetze, Statuten, Reglemente und
      Weisungen;

                       

                    	 
      	
                      Overall
      supervision of the persons entrusted with the management of the Company,
      in particular with regard to their compliance with the law, the Articles
      of Association and other internal rules and regulations;

                       

                    
	
                      Erstellung
      des Geschäftsberichtes sowie Vorbereitung der Generalversammlung und
      Ausführung ihrer Beschlüsse;

                       

                    	 
      	
                      Preparation
      of the annual business report and the general meeting of the shareholders,
      as well as implementation of its resolutions;

                    
	
                      Benachrichtigung
      des Richters im Falle der Überschuldung;

                       

                    	 
      	
                      Notification
      of the judge in the case of over-indebtedness;

                    
	
                      Beschlussfassung
      über die nachträgliche Leistung von Einlagen auf nicht voll liberierte
      Aktien;

                       

                    	 
      	
                      Passing
      of resolutions regarding retroactive payments related to partly paid-in
      shares;

                    
	
                      Feststellungsbeschlüsse
      bei Kapitalerhöhungen und daraus folgende
    Statutenänderungen.

                    	 
      	
                      Declaratory
      resolutions regarding capital increases and consequential amendments of
      the Articles of
Association.

                    

            

          

        

      

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    Er
      hat überdies die folgenden Aufgaben:

                  	 
      	
                    In
      addition, the Board of Directors shall have the following
      duties:

                  
	 
      	 
      	 
      
	
                    Führung
      der gemäss Organisationsreglement dem Verwaltungsrat vorbehaltenen
      Geschäfte (vgl. Art. 30 Abs. 2);

                     

                  	 
      	
                    Management
      of transactions reserved to the Board of Directors by the Organizational
      Regulations (cf. Art. 30 paragraph 2);

                  
	
                    Antragstellung
      betreffend Verwendung des Bilanzgewinnes;

                     

                  	 
      	
                    Proposals
      regarding the application of the balance sheet profit;

                  
	
                    Festlegung
      des Geschäftsjahres (vgl. Art. 36);

                     

                  	 
      	
                    Defining
      the business year (cf. Art. 36).

                  
	
                    Behandlung
      von Eintragungsgesuchen (vgl. Art. 8).

                  	 
      	
                    Treatment
      of registration applications (cf. Art. 8).

                  
	 
      	 
      	 
      
	
                    Im
      Übrigen kann der Verwaltungsrat in allen Angelegenheiten Beschluss fassen,
      die nicht nach Gesetz, Statuten oder Reglement der Generalversammlung oder
      einem anderen Organ der Gesellschaft vorbehalten oder übertragen
      sind.

                  	 
      	
                    Otherwise,
      the Board of Directors may resolve on all matters not reserved or assigned
      to the general meeting of the shareholders or another corporate body of
      the Company by law, the Articles of Association or other internal rules
      and regulations.

                  
	 
      	 
      	 
      
	
                    Die
      Mitglieder des Verwaltungsrates zeichnen kollektiv zu zweien. Gehört dem
      Verwaltungsrat nur eine Person an, so ist diese
      einzelzeichnungsberechtigt.

                  	 
      	
                    The
      members of the Board of Directors shall have the power of joint
      signatories. Where the Board of Directors consists of just one person, he
      shall have the power of single signatory.

                  
	 
      	 
      	 
      
	
                    Art.
      28    Entschädigung

                  	 
      	
                    Art.
      28    Compensation

                  
	 
      	 
      	 
      
	
                    Die
      Mitglieder des Verwaltungsrates haben Anspruch auf Ersatz ihrer im
      Interesse der Gesellschaft aufgewendeten Auslagen sowie auf eine ihrer
      Tätigkeit entsprechende Entschädigung. Der Betrag wird vom Verwaltungsrat
      festlegt.

                  	 
      	
                    The
      members of the Board of Directors shall have a claim to compensation for
      their expenses incurred in the interests of the Company as well as
      remuneration for their activities. The amount of the remuneration shall be
      determined by the Board of Directors.

                  
	 
      	 
      	 
      
	
                    Im
      Rahmen des gesetzlich Zulässigen, hält die Gesellschaft sämtliche Personen
      sowie deren Erben, Konkurs- oder Nachlassmassen, welche wegen ihrer
      Tätigkeit als Verwaltungsrat, Mitglied der Geschäftsleitung, Angestellte,
      Agent oder weil sie in einer anderen Funktion für oder im Namen der
      Gesellschaft (einschliesslich solcher Tätigkeiten, die diese Personen für
      eine andere Gesellschaft, eine nicht rechtsfähige Personengesellschaft,
      einen Joint Ventures, einen Trusts, eine sonstige Geschäftseinheit oder
      fiduziarisch im Zusammenhang mit von der Gesellschaft unterhaltenen
      Mitarbeiterbeteiligungsplänen für oder im Namen oder auf Aufforderung der
      Gesellschaft ausübten oder ausüben) tätig wurden, Partei in drohenden,
      hängigen oder abgeschlossenen Klagen, Verfahren oder Untersuchungen
      zivil-, straf-, verwaltungsrechtlicher oder anderer Natur (einschliesslich
      allfälliger Klagen der Gesellschaft) waren oder werden, schadlos von
      sämtlichen Auslagen (einschliesslich Anwaltskosten), Abgaben, Verlusten
      und Schäden, die diese in diesem Zusammenhang zu bezahlen und damit
      erlitten haben. Im Rahmen des gesetzlich zulässigen soll die Gesellschaft
      Gerichts- und Anwaltskosten im Zusammenhang mit solchen Klagen und
      Verfahren (einschliesslich Rechtsmittelverfahren)
      bevorschussen.

                  	 
      	
                    The
      Company shall indemnify, to the full extent now or hereafter permitted by
      law, any person (including his heirs, executors and administrators) who
      was or is a party or is threatened to be made a party to any threatened,
      pending or completed action, suit or proceeding, whether civil, criminal,
      administrative or investigative (including, without limitation, an action
      by or in the right of the Company), by reason of his acting as, or having
      in the past acted as, a member of the Board of Director, officer, employee
      or agent of, or his acting in any other capacity for or on behalf of, the
      Company (including his serving for, on behalf of or at the request of the
      Company as a member of the Board of Director, officer employee or agent of
      another company, partnership, joint venture, trust or other enterprise, or
      in a fiduciary or other capacity with respect to any employee benefit plan
      maintained by the Company) against any expense (including attorneys’
      fees), judgments, fines and amounts paid in settlement actually and
      reasonably incurred by such person (or his heirs, executors and
      administrators) in respect thereof.  The Company shall advance
      the expenses of defending any such action, suit or proceeding (including
      appeals) in accordance with and to the full extent now or hereafter
      permitted by law.

                  

          

        

      

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  Der
      Verwaltungsrat ist unabhängig von der Interessenlage des einzelnen
      Mitgliedes berechtigt, namens der Gesellschaft und zugunsten der in Art.
      28 Abs. 2 dieser Statuten erwähnten Personen Versicherungen für die gegen
      diese Personen im Zusammenhang mit den oben beschriebenen Funktionen
      erhobenen Haftungsansprüche sowie deren Folgen abzuschliessen, unabhängig
      davon, ob die Gesellschaft das Recht bzw. die Macht hätte, diese Person in
      Anwendung von Art. 28 schadlos zu halten.

                	 
      	
                  The
      Board of Directors may, notwithstanding any interest of the member of the
      Board of Directors in such action, authorize the Company to purchase and
      maintain insurance on behalf of any person described in Art. 28 paragraph
      2 of these Articles of Association, against any liability asserted against
      him and incurred by him in any such capacity, or arising out of his status
      as such, whether or not the Company would have the power to indemnify him
      against such liability under the provisions of this Art.
    28.

                
	 
      	 
      	 
      
	
                  Art.
      28 ist auf alle Ansprüche, Klagen, Prozesse anwendbar, die nach
      Inkrafttreten dieser Bestimmung eingeleitet werden, unabhängig davon, ob
      sich diese auf Tätigkeiten oder Unterlassungen vor Inkrafttreten dieser
      Bestimmung stützen. Die Vorschrift in diesem Art. 28 soll als Vertrag
      zwischen der Gesellschaft und jedem Verwaltungsratsmitglied, Mitglied der
      Geschäftsleitung, Direktor, Angestellten und Agenten, der in den weiter
      oben beschriebenen Funktionen zu einem beliebigen Zeitpunkt während der
      Gültigkeit dieser Bestimmung und des anwendbaren Rechts tätig war, gelten,
      und die Aufhebung oder Änderung dieser Bestimmung soll die zu jenem
      Zeitpunkt bestehenden Rechte und Pflichten bezüglich des zu jenem
      Zeitpunkt bestehenden Tatbestandes oder der zu jenem oder einem späteren
      Zeitpunkt gestützt auf diesen Sachverhalt geltend gemachten oder
      angedrohten Klagen, Ansprüchen oder Prozessen nicht berühren. Sollten
      einzelne Bestimmungen dieses Art. 28 aus gesetzlichen oder regulatorischen
      Gründen ungültig sein oder in ihrer Anwendung eingeschränkt werden, soll
      dies die Anwendung dieser Bestimmung oder die Gültigkeit dieser Bestimmung
      nicht berühren. Die Rechte im Zusammenhang mit der Schadloshaltung und der
      Bevorschussung in diesem Artikel sind weder exklusiv noch sollen sie
      allfällige bestehende andere Rechte der betroffenen
      Verwaltungsratsmitglieder, Geschäftsleitungsmitgliedern, Direktoren,
      Angestellten oder Agenten limitieren, die diese gestützt auf Verträge oder
      gestützt auf Beschlüsse der Organe der Gesellschaft oder in ihrer Funktion
      haben, limitieren. Die Gesellschaft ist dem Grundsatz verpflichtet, wonach
      die Schadloshaltung der in diesem Artikel definierten Personen im Rahmen
      des gesetzlich zulässigen entsprochen werden soll.

                	 
      	
                  The
      provisions of this Art. 28 shall be applicable to all actions, claims,
      suits or proceedings made or commenced after the adoption hereof, whether
      arising from acts or omissions to act occurring before or after its
      adoption.  The provisions of this Art. 28 shall be deemed to be
      a contract between the Company and each member of the Board of Director,
      officer, employee or agent who serves in such capacity at any time while
      this Article and the relevant provisions of the law, if any, are in
      effect, and any repeal or modification thereof shall not affect any rights
      or obligations then existing with respect to any state of facts or any
      action, suit or proceeding then or theretofore existing, or any action,
      suit or proceeding thereafter brought or threatened based in whole or in
      part on any such state of facts.  If any provision of this Art.
      28 shall be found to be invalid or limited in application by reason of any
      law or regulation, it shall not affect any other application of such
      provision or the validity of the remaining provisions
      hereof.  The rights of indemnification and advancement of
      expenses provided in this Article shall neither be exclusive of, nor be
      deemed in limitation of, any rights to which any such member of the Board
      of Director, officer, employee or agent may otherwise be entitled or
      permitted by contract, vote of members or directors or otherwise, or as a
      matter of law, both as to actions in his official capacity and actions in
      any other capacity while holding such office, it being the policy of the
      Company that indemnification of the specified individuals shall be made to
      the fullest extent permitted by
law.

                

        

      

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

       

      
        
          
            
              	
                      Art.
      29    Einberufung und Beschlussfassung

                    	 
      	
                      Art.
      29    Calling of Meetings and
Quorum

                    
	 
      	 
      	 
      
	
                      Der
      Verwaltungsrat versammelt sich, so oft es die Geschäfte erfordern, jedoch
      mindestens einmal im Jahr. Er wird durch seinen Präsidenten oder den
      Vizepräsidenten einberufen. Jedes Mitglied hat jederzeit das Recht, unter
      schriftlicher Angabe der Gründe die unverzügliche Einberufung einer
      Verwaltungsratssitzung zu verlangen.

                    	 
      	
                      The
      Board of Directors shall meet as often as business demands but at least
      once a year. It shall be called by the Chairman of the Board of Directors
      or the vice-chairman. Each member may, by giving written reasons
      therefore, demand that a meeting of the Board of Directors be held without
      delay.

                    
	 
      	 
      	 
      
	
                      Die
      Einberufung des Verwaltungsrates hat in der Regel mindestens fünf Werktage
      vor dem Sitzungstage zu erfolgen. Tag, Zeit und Ort der Sitzung und die
      Verhandlungsgegenstände (Traktandenliste) sind bei der Einberufung bekannt
      zu geben. Gleichzeitig werden die massgebenden Sitzungsunterlagen
      zugestellt. Über Gegenstände, die in der Traktandenliste nicht aufgeführt
      sind, können in dringenden Fällen Beschlüsse gefasst
    werden.

                    	 
      	
                      The
      calling of a meeting of the Board of Directors shall, as a rule, be made
      at least five working days before the date of the meeting. Day, time, and
      place of the meeting as well as the matters for discussion (agenda) shall
      be notified at the time of the calling. At the same time, the related
      documents for the meeting shall be provided. Matters not contained in the
      agenda may be resolved upon in urgent cases.

                    
	 
      	 
      	 
      
	
                      Der
      Verwaltungsrat ist beschlussfähig, wenn die absolute Mehrheit der
      Mitglieder anwesend ist. Für Beschlüsse, die im Rahmen von
      Kapitalerhöhungen zu treffen sind, ist der Verwaltungsrat auch
      beschlussfähig, wenn nur ein Mitglied anwesend ist.

                    	 
      	
                      The
      Board of Directors is quorate when the absolute majority of members is
      present. Where a resolution is to be taken in the context of a capital
      increase, the Board of Directors is also quorate when only one member is
      present.

                    
	 
      	 
      	 
      
	
                      Der
      Verwaltungsrat fasst seine Beschlüsse und trifft seine Wahlen mit der
      Mehrheit der abgegebenen Stimmen. Er kann höhere Beschlussfassungsquoren
      einführen. Diese müssen in einem Reglement festgehalten werden. Bei
      Stimmengleichheit gibt der Vorsitzende den Stichentscheid, bei Wahlen
      entscheidet das Los.

                    	 
      	
                      The
      Board of Directors shall pass its resolutions and votes with a majority of
      the votes cast. The Board of Directors may introduce higher requirements
      to pass votes. Such requirements shall be contained in an internal
      regulation. Where votes are tied, the chairperson shall give the casting
      vote; in the case of elections this shall be decided by
    lot.

                    
	 
      	 
      	 
      
	
                      Beschlüsse
      können auch auf dem Weg der schriftlichen Zustimmung (durch Brief, Telefax
      oder E-Mail) zu einem Antrag gefasst werden, sofern nicht ein Mitglied
      mündliche Beratung verlangt. Diese Beschlüsse bedürfen der Einstimmigkeit
      und sind zusammen mit den anderen Verwaltungsratsprotokollen
      aufzubewahren.

                    	 
      	
                      Resolutions
      may also be passed by way of written consent (by letter, fax or email)
      provided no member has demanded an oral consultation. These resolutions
      require unanimity and shall be kept with the minutes of the meetings of
      the Board of
Directors.

                    

            

          

        

      

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  Art.
      30    Delegation und Ausschüsse

                	 
      	
                  Art.
      30    Delegation and Committees

                
	 
      	 
      	 
      
	
                  Der
      Verwaltungsrat kann die Vorbereitung, die Ausführung seiner Beschlüsse und
      die Überwachung von Geschäften Ausschüssen oder einzelnen Mitgliedern
      zuweisen.

                	 
      	
                  The
      Board of Directors may delegate the preparation and implementation of its
      resolutions and the oversight of business to committees or individual
      members.

                
	 
      	 
      	 
      
	
                  Unter
      Vorbehalt seiner unübertragbaren und unentziehbaren Aufgaben ist der
      Verwaltungsrat ferner befugt, die Geschäftsführung oder einzelne Zweige
      derselben und die Vertretung der Gesellschaft an eine oder mehrere
      Personen, Mitglieder des Verwaltungsrates (Delegierte) oder Dritte
      (Direktoren oder Geschäftsführer), zu übertragen. Er legt die dazu
      notwendigen Einzelheiten in einem Organisationsreglement
    fest.

                	 
      	
                  Subject
      to its non-transferable and inalienable duties, the Board of Directors is
      furthermore empowered to transfer management of the business or individual
      branches of the same and the representation of the Company to one or more
      persons, members of the Board of Directors (delegates) or third parties
      (directors or managers). The Board of Directors shall stipulate the
      necessary details in the Organizational Regulations.

                
	 
      	 
      	 
      
	
                  Art.
      31    Protokoll

                	 
      	
                  Art.
      31    Minutes

                
	 
      	 
      	 
      
	
                  Über
      die Verhandlungen und Beschlüsse des Verwaltungsrates ist ein Protokoll zu
      führen. Das Protokoll ist vom Vorsitzenden und vom Sekretär zu
      unterzeichnen. Besteht der Verwaltungsrat aus nur einem Mitglied, muss
      auch dieser über seine Entscheidungen Protokoll führen.

                	 
      	
                  Minutes
      shall be recorded of the discussions and resolutions of the Board of
      Directors. The minutes shall be signed by the Chairperson and the
      Secretary. Where the Board of Directors consists of only one member, such
      person must also keep a record of his decisions.

                
	 
      	 
      	 
      
	
                  Die
      Protokolle sind vom Verwaltungsrat jeweils in der nächsten Sitzung zu
      genehmigen.

                	 
      	
                  The
      minutes shall be approved by the Board of Directors in the next
      meeting.

                
	 
      	 
      	 
      
	
                  Art.
      32    Recht auf Auskunft und Einsicht

                	 
      	
                  Art.
      32    Right to Information and
    Inspection

                
	 
      	 
      	 
      
	
                  Jedes
      Mitglied des Verwaltungsrates kann Auskunft über alle Angelegenheiten der
      Gesellschaft verlangen. In den Sitzungen sind alle Mitglieder des
      Verwaltungsrates sowie die mit der Geschäftsführung betrauten Personen zur
      Auskunft verpflichtet. Ausserhalb der Sitzungen kann jedes Mitglied von
      den mit der Geschäftsführung betrauten Personen Auskunft über den
      Geschäftsgang und, mit Ermächtigung des Präsidenten, auch über einzelne
      Geschäfte verlangen.

                	 
      	
                  Each
      member of the Board of Directors may demand information on all matters
      concerning the Company. At meetings, all members of the Board of Directors
      as well as the persons entrusted with the management of the Company are
      under a duty to provide information. Outside the meetings, each member can
      demand information from those persons entrusted with the management about
      the course of business and, with the authorization of the president, about
      individual transactions.

                
	 
      	 
      	 
      
	
                  Soweit
      es für die Erfüllung einer Aufgabe erforderlich ist, kann jedes Mitglied
      dem Präsidenten beantragen, dass ihm Bücher und Akten vorgelegt werden.
      Weist der Präsident ein Gesuch auf Auskunft, Anhörung oder Einsicht ab, so
      entscheidet der Verwaltungsrat. Regelungen oder Beschlüsse des
      Verwaltungsrates, die das Recht auf Auskunft und Einsichtnahme der
      Mitglieder des Verwaltungsrates erweitern, bleiben
      vorbehalten.

                	 
      	
                  To
      the extent it is necessary for the performance of a task, each member may
      apply to the Chairman of the Board of Directors that the books and files
      are made available to him. Where the Chairman of the Board of Directors
      rejects an application for information, a hearing or inspection, the Board
      of Directors shall decide. Regulations or resolutions of the Board of
      Directors that provide the members of the Board of Directors with the
      right to information and inspection remain
  reserved.

                

        

      

       

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    Art.
      33    Zeichnungsberechtigung

                  	 
      	
                    Art.
      33    Signature Power

                  
	 
      	 
      	 
      
	
                    Die
      rechtsverbindliche Vertretung der Gesellschaft durch Mitglieder des
      Verwaltungsrates und durch Dritte wird in einem Organisationsreglement
      festgelegt.

                  	 
      	
                    The
      due and valid representation of the Company by members of the Board of
      Directors and other persons shall be set forth in Organizational
      Regulations.

                  
	 
      	 
      	 
      
	
                    C.      
           Die Revisionsstelle

                  	 
      	
                    C.           The
      Auditors

                  
	 
      	 
      	 
      
	
                    Art.
      34    Revision

                  	 
      	
                    Art.
      34    Audit

                  
	 
      	 
      	 
      
	
                    Die
      Generalversammlung wählt die Revisionsstelle.

                  	 
      	
                    The
      general meeting of the shareholders shall elect the
    Auditor.

                  
	 
      	 
      	 
      
	
                    Sie
      kann auf die Wahl einer Revisionsstelle verzichten, wenn:

                  	 
      	
                    It
      can waive the election of auditors where:

                  
	 
      	 
      	 
      
	
                    die
      Voraussetzungen für eine ordentliche Revision nicht gegeben
      sind;

                     

                  	 
      	
                    the
      requirements for an ordinary audit are not present;

                  
	
                    die
      Zustimmung sämtlicher Aktionäre vorliegt und;

                     

                  	 
      	
                    the
      consent of all shareholders has been given; and

                  
	
                    die
      Gesellschaft nicht mehr als zehn Vollzeitstellen im Jahresdurchschnitt
      hat.

                  	 
      	
                    the
      Company does not have more than ten full-time positions on average per
      year.

                  
	 
      	 
      	 
      
	
                    Haben
      die Aktionäre auf eine eingeschränkte Revision verzichtet, so gilt dieser
      Verzicht auch für die nachfolgenden Jahre. Jeder Aktionär hat jedoch das
      Recht, spätestens zehn Tage vor der Generalversammlung eine eingeschränkte
      Revision zu verlangen. Die Generalversammlung muss diesfalls die
      Revisionsstelle wählen.

                  	 
      	
                    Where
      the shareholders have waived a limited statutory examination, this waiver
      applies also to the following year. Each shareholder may, however, demand
      a limited statutory examination at the latest ten days prior to the
      general meeting of the shareholders. The general meeting of the
      shareholders must in this case elect the Auditor.

                  
	 
      	 
      	 
      
	
                    Art.
      35    Organisation der Revisionsstelle

                  	 
      	
                    Art.
      35    Organisation of the Auditor

                  
	 
      	 
      	 
      
	
                    Als
      Revisionsstelle können eine oder mehrere natürliche oder juristische
      Personen oder Personengesellschaften gewählt werden.

                  	 
      	
                    One
      or several individuals or legal persons or partnerships may be elected as
      Auditors.

                  
	 
      	 
      	 
      
	
                    Wenigstens
      ein Mitglied der Revisionsstelle muss seinen Wohnsitz, seinen Sitz oder
      eine eingetragene Zweigniederlassung in der Schweiz haben.

                  	 
      	
                    As
      a minimum one member of the Auditor shall be resident or have a registered
      branch in Switzerland.

                  
	 
      	 
      	 
      
	
                    Muss
      die Gesellschaft ihre Jahresrechnung durch eine Revisionsstelle ordentlich
      prüfen lassen im Sinne von:

                  	 
      	
                    Where
      the Company is required to arrange an ordinary audit of its annual
      financial accounts by auditors pursuant to:

                  
	 
      	 
      	 
      
	
                    Art.
      727 Abs. 1 Ziff. 2 oder Ziff. 3 OR;

                     

                  	 
      	
                    Art.
      727 paragraph 1 section 2 or section 3 CO;

                  
	
                    Art.
      727 Abs. 2 OR

                  	 
      	
                    Art.
      727 paragraph 2 CO

                  
	 
      	 
      	 
      
	
                    wählt
      die Generalversammlung einen zugelassenen Revisionsexperten nach den
      Vorschriften des Revisionsaufsichtsgesetzes (RAG) als
      Revisionsstelle.

                  	 
      	
                    the
      general meeting of the shareholders shall elect a licensed audit expert in
      accordance with the provisions of the Audit Oversight Act (RAG) as
      auditors.

                  

          

        

      

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    Ist
      die Gesellschaft zur eingeschränkten Revision verpflichtet, kann als
      Revisionsstelle auch ein zugelassener Revisor nach den Vorschriften des
      RAG bezeichnet werden. Vorbehalten bleibt der Verzicht auf die Wahl einer
      Revisionsstelle nach Art. 34.

                  	 
      	
                    Where
      the Company is required to arrange a limited statutory examination a
      licensed auditor in accordance with the provisions of the RAG may also be
      appointed as auditors. Waiver of the election of auditors pursuant to Art.
      34 remains reserved.

                  
	 
      	 
      	 
      
	
                    Die
      Revisionsstelle muss im Sinne von Art. 728 bzw. 729 OR unabhängig
      sein.

                  	 
      	
                    The
      Auditor must be independent in accordance with Art. 728 respectively 729
      CO.

                  
	 
      	 
      	 
      
	
                    Die
      Revisionsstelle wird für ein Geschäftsjahr gewählt. Ihr Amt endet mit der
      Abnahme der letzten Jahresrechnung. Die Wiederwahl ist möglich. Die
      Generalversammlung kann die Revisionsstelle jederzeit mit sofortiger
      Wirkung abberufen.

                  	 
      	
                    The
      Auditor shall be appointed for one business year. Their term of office
      shall end with the approval of the final annual financial accounts.
      Re-appointment is possible. The general meeting of the shareholders may
      remove the Auditor with immediate effect at any time.

                  
	 
      	 
      	 
      
	
                    D.         
      Rechnungslegung und Verwendung des Bilanzgewinnes

                  	 
      	
                    D.           Rendering
      of Accounts and  Allocation of Balance Sheet
    Profit

                  
	 
      	 
      	 
      
	
                    Art.
      36    Jahresrechnung

                  	 
      	
                    Art.
      36    Annual Financial Accounts

                  
	 
      	 
      	 
      
	
                    Die
      Jahresrechnung wird jährlich auf den 31. Dezember oder auf einen anderen,
      durch den Verwaltungsrat zu beschliessenden Termin
      abgeschlossen.

                  	 
      	
                    The
      annual financial accounts shall be closed annually on the 31 December or
      another date determined by the Board of Directors.

                  
	 
      	 
      	 
      
	
                    Die
      Erfolgsrechnung, die Bilanz und der Anhang sind mindestens gemäss den
      gesetzlichen Bestimmungen von Art. 662a - 670 und 957 - 961 OR
      aufzustellen.

                  	 
      	
                    The
      profit and loss statement, the balance sheet and notes shall be compiled
      as a minimum in accordance with the provisions of Art. 662a-670 and
      957-961 CO.

                  
	 
      	 
      	 
      
	
                    Art.
      37    Verwendung des Jahresgewinnes

                  	 
      	
                    Art.
      37    Application of the Annual
  Profit

                  
	 
      	 
      	 
      
	
                    Vom
      in der Jahresbilanz ausgewiesenen Jahresgewinn ist jährlich ein Betrag von
      5 % der allgemeinen Reserve zuzuweisen, bis diese 20 % des einbezahlten
      Aktienkapitals erreicht hat.

                  	 
      	
                    An
      amount of 5 % of the annual profit identified in the annual financial
      accounts is to be allotted to the general reserves until this has reached
      20 % of the paid-up share capital.

                  
	 
      	 
      	 
      
	
                    Der
      verbleibende Jahresgewinnsaldo und ein allfälliger Gewinnvortrag früherer
      Geschäftsjahre stehen unter Vorbehalt der zwingenden gesetzlichen
      Bestimmungen (Art. 671 ff. OR) zur freien Verfügung der
      Generalversammlung. Der Verwaltungsrat unterbreitet der Generalversammlung
      seine Vorschläge betreffend die Behandlung sämtlicher
      Zuweisungen.

                  	 
      	
                    The
      remaining annual profit and any balance of profit brought forward from
      previous business years shall, pursuant to binding provisions of the law
      (Art. 671 et seq. CO), be at the free disposal of the general meeting of
      the shareholders. The Board of Directors shall submit its proposals with
      respect to the treatment of any allocation to the general meeting of the
      shareholders.

                  
	 
      	 
      	 
      
	
                    Die
      Generalversammlung kann jederzeit die Errichtung von speziellen Reserven
      neben den vom Gesetz vorgeschriebenen Reserven beschliessen und über deren
      Verwendung bestimmen.

                  	 
      	
                    The
      general meeting of the shareholders may at any time resolve to set up
      special reserves in addition to those required by law and determine their
      application.

                  
	 
      	 
      	 
      
	
                    Dividenden,
      welche nicht innerhalb von fünf Jahren nach ihrem Auszahlungsdatum bezogen
      werden, fallen an die Gesellschaft und werden in die allgemeinen
      gesetzlichen Reserven gebucht.

                  	 
      	
                    Dividends
      that have not been collected within five years after their payment date
      shall enure to the Company and be allocated to the general statutory
      reserves.

                  

          

        

      

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

       

      
        
          
            
              	
                      E.           
      Schlussbestimmungen

                    	 
      	
                      E.           
      Final Provisions

                    
	 
      	 
      	 
      
	
                      Art.
      38    Auflösung und Liquidation

                    	 
      	
                      Art.
      38    Winding-up and Liquidation

                    
	 
      	 
      	 
      
	
                      Die
      Generalversammlung kann jederzeit die Auflösung der Gesellschaft
      beschliessen. Die Auflösung und Liquidation sind gemäss den Vorschriften
      von Art. 736 ff. OR durchzuführen.

                    	 
      	
                      The
      general meeting of the shareholders may at any time resolve to wind-up the
      Company. The winding-up and liquidation of the Company shall be performed
      in accordance with Art. 736 et seq. CO.

                    
	 
      	 
      	 
      
	
                      Die
      Befugnisse der Generalversammlung bleiben auch während der Liquidation mit
      der Einschränkung gemäss Art. 739 OR bestehen. Insbesondere unterliegt die
      Liquidationsrechnung der Genehmigung durch die
      Generalversammlung.

                    	 
      	
                      The
      powers of the general meeting of the shareholders shall also continue
      during the liquidation, limited in accordance with Art. 739 CO. In
      particular, the liquidation accounts are subject to the approval of the
      general meeting of the shareholders.

                    
	 
      	 
      	 
      
	
                      Der
      Verwaltungsrat besorgt die Liquidation, sofern diese nicht durch Beschluss
      der Generalversammlung Dritten übertragen wird.

                    	 
      	
                      The
      Board of Directors shall conduct the liquidation to the extent that this
      is not transferred to a third party by a resolution of the general meeting
      of the shareholders.

                    
	 
      	 
      	 
      
	
                      Die
      Liquidatoren sind berechtigt, die Aktiven der Gesellschaft freihändig zu
      veräussern.

                    	 
      	
                      The
      liquidators may freely dispose of the assets of the
    Company.

                    
	 
      	 
      	 
      
	
                      Nach
      erfolgter Tilgung der Schulden wird das Vermögen nach Massgabe der
      eingezahlten Beträge unter den Aktionären verteilt, soweit diese Statuten
      nichts anderes vorsehen.

                    	 
      	
                      Upon
      discharge of all liabilities, the assets of the Company shall be
      distributed to the shareholders pursuant to the amounts paid-up, unless
      these Articles of Association provide otherwise.

                    
	 
      	 
      	 
      
	
                      Art.
      39    Mitteilungen und
Bekanntmachungen

                    	 
      	
                      Art.
      39    Communications and
  Notifications

                    
	 
      	 
      	 
      
	
                      Publikationsorgan
      der Gesellschaft ist das Schweizerische Handelsamtsblatt. Der
      Verwaltungsrat kann weitere Publikationsorgane bestimmen.

                    	 
      	
                      The
      Company shall make any announcements in the Swiss Official Gazette of
      Commerce. The Board of Directors may appoint other publication
      bodies.

                    
	 
      	 
      	 
      
	
                      Soweit
      keine individuelle Benachrichtigung durch das Gesetz, börsengesetzliche
      Bestimmungen oder diese Statuten verlangt wird, gelten sämtliche
      Mitteilungen an die Aktionäre als gültig erfolgt, wenn sie im
      Schweizerischen Handelsamtsblatt veröffentlicht worden sind. Die
      Mitteilungen an die Namenaktionäre erfolgen im Falle der in Art. 14 Abs. 3
      erwähnten Hinweise an ihre letzte im Aktienbuch eingetragene Adresse durch
      Brief oder E-Mail. In allen anderen Fällen können die Mitteilungen durch
      Veröffentlichung im Publikationsorgan erfolgen. Bekanntmachungen an die
      Gläubiger erfolgen in den vom Gesetz vorgeschriebenen Fällen durch
      Veröffentlichung im Publikationsorgan. Finanzinstitute, welche Aktien für
      wirtschaftlich Berechtigte halten und entsprechend im Aktienbuch
      eingetragen sind, gelten als bevollmächtigte Empfänger.

                    	 
      	
                      To
      the extent that individual notification is not required by law, stock
      Exchange regulations or these Articles of Association, all communications
      to the shareholders shall be deemed valid if published in the Swiss
      Official Gazette of Commerce. Notices to the registered shareholders shall
      in the case of the notifications set forth in Art. 14 paragraph 3 be sent
      by letter or electronic mail to the last address registered in the Share
      Register. In all other cases, they may be made by publication in the
      Company's official instrument for publications. Notices to creditors shall
      be given in the cases prescribed by law by publication in the Swiss
      Official Gazette of Commerce. Financial institutions holding Shares for
      beneficial owners and recorded in such capacity in the Share Register
      shall be deemed to be authorized
recipients.

                    

            

          

        

         

        
          
            
            

          

          
            45

            
              

            

          

          
            
            

          

        

         

        
          
            	
                    Art.
      40    Verbindlicher Originaltext

                  	 
      	
                    Art.
      40    Original Language

                  
	 
      	 
      	 
      
	
                    Falls
      sich zwischen der deutsch- und der  englischsprachigen Fassung
      dieser Statuten Differenzen ergeben, hat die deutschsprachige Fassung
      Vorrang.

                  	 
      	
                    In
      the event of deviations between the German and English version of these
      Articles of Association, the German text shall prevail.

                  
	 
      	 
      	 
      
	
                    Art.
      41    Definitionen

                  	 
      	
                    Art.
      41    Definitions

                  
	 
      	 
      	 
      
	
                    Aktie

                  	 
      	
                    Shares

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Aktie(n)
      hat die in Art. 2 dieser Statuten aufgeführte Bedeutung.

                  	 
      	
                    The
      term Share(s) has
      the meaning assigned to it in Art. 3 of these Articles of
      Association.

                  
	 
      	 
      	 
      
	
                    Aktienbuch

                  	 
      	
                    Share
      Register

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Aktienbuch
      hat die in Art. 8 dieser Statuten aufgeführte Bedeutung.

                  	 
      	
                    The
      term Share
      Register has the meaning assigned to it in Art. 8 of these Articles
      of Association.

                  
	 
      	 
      	 
      
	
                    Aktienkapital

                  	 
      	
                    Share
      Capital

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Aktienkapital
      hat die in Art. 3 dieser Statuten aufgeführte
      Bedeutung.

                  	 
      	
                    The
      term Share Capital
      has the meaning assigned to it in Art. 3 of these Articles of
      Association.

                  
	 
      	 
      	 
      
	
                    Börse

                  	 
      	
                    Exchange

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Börse
      bedeutet Einrichtungen des Wertschriftenhandels oder vergleichbare
      Systeme, an welchen die Aktien der Gesellschaft gehandelt oder anderweitig
      zeitweise zum Handel zugelassen sind.

                  	 
      	
                    The
      term Exchange
      shall mean any securities exchange or other system on which the registered
      Shares of the Company may be listed or otherwise authorized for trading
      from time to time.

                  
	 
      	 
      	 
      
	
                    CHF

                  	 
      	
                    CHF

                  
	 
      	 
      	 
      
	
                    Der
      Begriff CHF
      bedeutet Schweizer Franken und ist die gültige Schweizer
      Währung.

                  	 
      	
                    The
      term CHF shall
      mean Swiss Francs, the legal currency in Switzerland.

                  
	 
      	 
      	 
      
	
                    Gesamtstimmen

                  	 
      	
                    Total
      Voting Shares

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Gesamtstimmen bedeutet
      die Gesamtzahl aller an einer Generalversammlung stimmberechtigen Aktien
      unabhängig davon, ob die stimmberechtigten Aktien an der
      Generalversammlung vertreten sind oder nicht.

                  	 
      	
                    Total Voting Shares
      means the total number of Shares entitled to vote at a general meeting of
      the shareholders whether or not represented at such
    meeting.

                  
	 
      	 
      	 
      
	
                    Gesellschaft

                  	 
      	
                    Company

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Gesellschaft
      bedeutet Garmin Ltd.

                  	 
      	
                    The
      term Company shall
      mean Garmin Ltd.

                  

          

        

         

        
          
            
            

          

          
            46

            
              

            

          

          
            
            

          

        

         

      

      
        
          
            	
                    Marktwert

                  	 
      	
                    Fair
      Market Value

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Marktwert
      bedeutet (i) im Falle von Aktien den höchsten Schlusskurs dieser Aktien
      während der letzten 30 Tage vor dem massgeblichen Stichtag. Dabei
      entspricht der Marktwert dem höchsten von der betreffenden Börse
      gemeldeten Schlusskurs während der letzten 30 Tage vor dem massgeblichen
      Stichtag und, falls eine solche Meldung nicht vorliegt, soll der Marktwert
      dieser Aktien vom Verwaltungsrat in guten Treuen bestimmt werden, wobei er
      dabei die Art der Aktien, allfällige Dividenden, Zuteilung von Aktien
      sowie Aufteilungen oder Zusammenlegungen von Aktien berücksichtigt, und
      (ii) im Fall von Vermögenswerten, die weder Aktien noch Bargeld sind, soll
      der Marktwert vom Verwaltungsrat in guten Treuen per Stichtag bestimmt
      werden.

                  	 
      	
                    The
      term Fair Market
      Value shall mean (i) in the case of shares, the highest closing
      sale price of a share during the 30-day period immediately preceding the
      date in question of such share admitted to trading on an Exchange or any
      other system then in use, the Fair Market Value shall be the highest
      closing sale price reported by the Exchange or such other system during
      the 30-day period preceding the date in question, or, if no such
      quotations are available, the Fair Market Value on the date in question of
      such share as determined by the Board of Directors in good faith, in each
      case with respect to any class of share, appropriately adjusted for any
      dividend or distribution in shares or any combination or reclassification
      of outstanding shares of such share into a smaller number of shares, and
      (ii) in the case of property other than cash or shares, the Fair Market
      Value of such property on the date in question as determined by the Board
      of Directors in good faith.

                  
	 
      	 
      	 
      
	
                    Monat

                  	 
      	
                    Month

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Monat
      bedeutet ein Kalendermonat.

                  	 
      	
                    The
      term Month shall
      mean a calendar month.

                  
	 
      	 
      	 
      
	
                    Nahestehender
      Aktionär

                  	 
      	
                    Interested
      Shareholder

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Nahestehender
      Aktionär bedeutet jede natürliche oder juristische Person (unter
      Ausschluss der Gesellschaft) sowie deren Muttergesellschaften, (i) die
      direkte oder indirekte Eigentümerin von mehr als 20 % der Stimmrechte der
      ausgegebenen Aktien ist, oder die (ii) eine Nahestehende Gesellschaft der
      Gesellschaft ist und irgendwann in den zwei unmittelbar vorangehenden
      Jahren vor dem Zeitpunkt, zu dem bestimmt werden muss, ob diese Person ein
      Nahestehender Aktionär ist, direkte oder indirekte Eigentümerin von 20 %
      oder mehr der Stimmrechte der ausgegebenen Aktien war; oder (iii) Aktien
      übertragen bekommen hat, die irgendwann in den zwei unmittelbar
      vorangehenden Jahren vor dem Zeitpunkt, zu dem bestimmt werden muss, ob
      eine Person ein Nahestehender Aktionär ist, direkt oder indirekt im
      Eigentum eines Nahestehenden Aktionärs standen, sofern die Übertragung
      (unabhängig davon ob in einer oder mehreren Transaktionen) ausserhalb
      eines öffentlichen Angebots stattgefunden hat.

                  	 
      	
                    The
      term Interested
      Shareholder shall mean any person (other than the Company) and any
      holding company thereof who or which (i) is the beneficial owner directly
      or indirectly, of more than twenty per cent (20%) of the voting power of
      the outstanding shares of the Company; or, (ii) is an Affiliate of the
      Company and at any time within the two-year period immediately prior to
      the date in question was the beneficial owner, directly or indirectly, of
      twenty per cent (20%) or more of the voting power of the then-outstanding
      shares; or (iii) is an assignee of or has otherwise succeeded to any
      shares which were at any time within the two-year period immediately prior
      to the date in question beneficially owned by any Interested Shareholder,
      if such assignment or succession shall have occurred in the course of a
      transaction or series of transactions not involving a public
      offering.

                  
	
                    Eine
      natürliche oder juristische Person gilt dann nicht als Nahestehender
      Aktionär, falls eine solche Person nur darum ein Nahestehender Aktionär
      wird, weil die Anzahl der ausgegebenen Aktien der Gesellschaft reduziert
      werden, unabhängig davon ob eine solche Reduktion auf den Rückkauf von
      Aktien der Gesellschaft durch die Gesellschaft zurückzuführen ist. Die
      Reduktion der ausgegebenen Aktien erhöht den prozentualen Anteil der
      ausgegebenen Aktien im direkten oder indirekten Eigentum der betreffenden
      Person bis diese Person direkte oder indirekte Eigentümerin zusätzlicher
      Aktien wird.

                  	 
      	
                    A
      person shall not be deemed an Interested Shareholder if such person would
      become an Interested Shareholder solely as a result of a reduction of the
      number of shares of the Company outstanding, including repurchases of
      outstanding shares of the Company by the Company, which reduction
      increases the percentage of outstanding shares of the Company of which
      such person is the beneficial owner, until such person shall thereafter
      become the beneficial owner of any additional
  shares.

                  

          

        

      

       

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    Nahestehende
      Gesellschaft

                  	 
      	
                    Affiliate

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Nahestehende
      Gesellschaft bedeutet bezüglich einer Person, jede andere Person,
      die direkt oder indirekt über eine oder mehrere Mittelspersonen die andere
      Person kontrolliert, von dieser anderen Person kontrolliert wird, oder
      unter gemeinsamer Kontrolle mit dieser anderen Person steht. Kontrolle
      einschliesslich der Begriffe kontrollierend und kontrolliert im Sinne
      dieser Definition bedeutet die Möglichkeit, direkt oder indirekt auf die
      Geschäftsführung und die Geschäftspolitik einer Person Einfluss zu nehmen,
      sei es aufgrund des Haltens von Stimmrechten oder auf andere
      Weise.

                  	 
      	
                    The
      term Affiliate
      shall mean with respect to any person, any other person controlling or
      controlled by or under common control with such specified person. For the
      purposes of this definition, "control", "controlling" and "controlled"
      when used with respect to any specified person, means the power to direct
      the management and policies of such person, directly or indirectly,
      whether through the ownership of voting securities or
      otherwise.

                  
	 
      	 
      	 
      
	
                    Nahestehende
      Person

                  	 
      	
                    Associate

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Nahestehende
      Person bedeutet, wenn verwendet zur Bezeichnung einer Beziehung zu
      einer Zivilrechtlichen Person, (i) jede Kapitalgesellschaft, rechts- oder
      nicht-rechtsfähige Personengesellschaft oder ein anderer Rechtsträger, von
      welcher diese Zivilrechtliche Person Mitglied des Leitungs- oder
      Verwaltungsorgans, der Geschäftsleitung oder Gesellschafter ist oder von
      welcher diese Person, direkt oder indirekt, Eigentümerin von 20 % oder
      mehr einer Kategorie von Aktien oder anderen Anteilsrechten ist, die ein
      Stimmrecht vermitteln, (ii) jedes Treuhandvermögen (Trust) oder jede
      andere Vermögenseinheit, an der diese Zivilrechtliche Person
      wirtschaftlich einen Anteil von 20 % oder mehr hält oder in Bezug auf
      welche diese Zivilrechtliche Person als Verwalter (trustee) oder in
      ähnlich treuhändischer Funktion tätig ist, und (iii) jeder Verwandte, Ehe-
      oder Lebenspartner dieser Person, oder jede Verwandte des Ehe- oder
      Lebenspartners, jeweils soweit diese den gleichen Wohnsitz haben wie diese
      Person.

                  	 
      	
                    The
      term Associate,
      when used to indicate a relationship with any Person, means (i) any
      corporation, partnership, unincorporated association or other entity of
      which such Person is a director, officer or partner or is, directly or
      indirectly, the Owner of 20 % or more of any class of voting shares, (ii)
      any trust or other estate in which such Person has at least a 20 %
      beneficial interest or as to which such Person serves as trustee or in a
      similar fiduciary capacity, and (iii) any relative or spouse of such
      Person, or any relative of such spouse, who has the same residence as such
      Person.

                  
	 
      	 
      	 
      
	
                    OR

                  	 
      	
                    CO

                  
	 
      	 
      	 
      
	
                    Der
      Begriff OR hat die
      in Art. 1 dieser Statuten aufgeführte Bedeutung.

                  	 
      	
                    The
      term CO has the
      meaning assigned to it in Art. 1 of these Articles of
      Association.

                  
	 
      	 
      	 
      
	
                    Revisionsstelle

                  	 
      	
                    Auditor

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Revisionsstelle hat die
      in Abschnitt C dieser Statuten aufgeführte Bedeutung.

                  	 
      	
                    The
      term Auditor has
      the meaning assigned to it in section C of these Articles of
      Association.

                  

          

        

      

       

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    Sekretär

                  	 
      	
                    Secretary

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Sekretär
      hat die in Art. 26 dieser Statuten aufgeführte
      Bedeutung.

                  	 
      	
                    The
      term Secretary has
      the meaning assigned to it in Art. 26 of these Articles of
      Association.

                  
	 
      	 
      	 
      
	
                    Sitz

                  	 
      	
                    Registered
      Office

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Sitz hat
      die in Art. 1 dieser Statuten aufgeführte Bedeutung.

                  	 
      	
                    The
      term Registered
      Office has the meaning assigned to it in Art. 1 of these Articles
      of Association.

                  
	 
      	 
      	 
      
	
                    Statuten

                  	 
      	
                    Articles
      of Association

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Statuten
      bedeutet die Statuten der Garmin Ltd. jeweils in ihrer aktuellsten
      Fassung.

                  	 
      	
                    The
      term Articles of
      Association shall mean the Articles of Association of Garmin Ltd.
      in their most recent version.

                  
	 
      	 
      	 
      
	
                    Tochtergesellschaft

                  	 
      	
                    Subsidiary

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Tochtergesellschaft
      bedeutet sämtliche juristischen Personen oder Personenvereinigung,
      welche von einer anderen juristischen Person beherrscht
      werden.

                  	 
      	
                    The
      term Subsidiary
      shall mean any corporation, company, association, foundation or
      other incorporated legal entity, that directly, or indirectly through one
      or more intermediaries is under control of the person
      specified.

                  
	 
      	 
      	 
      
	
                    Unabhängige
      Verwaltungsräte

                  	 
      	
                    Independent
      Directors

                  
	 
      	 
      	 
      
	
                    Der
      Begriff unabhängige
      Verwaltungsräte bedeutet Verwaltungsräte, welche im Sinne der
      anwendbaren Bestimmungen derjenigen Börse, an welcher die Gesellschaft
      kotiert ist, unabhängig sind.

                  	 
      	
                    The
      term Independent
      Directors shall mean members of the board who are recognized as
      such by the rules and regulations of the Exchange.

                  
	 
      	 
      	 
      
	
                    Unparteiische
      Mitglieder des Verwaltungsrates

                  	 
      	
                    Disinterested
      Directors

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Unparteiische
      Mitglieder des Verwaltungsrates bedeutet diejenigen Mitglieder des
      Verwaltungsrates, welche keine Nahestehenden Personen von Nahestehenden
      Aktionären sind und bereits Mitglieder des Verwaltungsrates waren, bevor
      ein Nahestehender Aktionär ein Nahestehender Aktionär wurde und jedes
      Verwaltungsratsmitglied, welches erst nachträglich eine Vakanz im
      Verwaltungsrat schloss oder erst nachträglich gewählt wurde und in jedem
      Fall keine Nahestehende Person des Nahestehenden Aktionärs ist und auf
      Empfehlung einer Mehrheit der damaligen Unparteiischen Mitgliedern des
      Verwaltungsrates gewählt wurde.

                  	 
      	
                    The
      term Disinterested
      Directors shall mean any members of the Board of Directors who are
      unaffiliated with the Interested Shareholder and who were a member of the
      Board of Directors prior to the time that the Interested Shareholder
      became an Interested Shareholder, and any director who is thereafter
      chosen to fill any vacancy on the Board of Directors or who is elected and
      who, in either event, is unaffiliated with the Interested Shareholder, and
      in connection with his or her initial assumption of office is recommended
      for appointment or election by a majority of Disinterested Directors then
      on the Board of Directors.

                  
	 
      	 
      	 
      
	
                    Verwaltungsrat

                  	 
      	
                    Board
      of Directors

                  
	 
      	 
      	 
      
	
                    Der
      Begriff Verwaltungsrat hat die
      in Abschnitt B dieser Statuten aufgeführte Bedeutung.

                  	 
      	
                    The
      term Board of
      Directors has the meaning assigned to it in section B of these
      Articles of
Association.

                  

          

        

      

       

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  Vewaltungsratspräsident

                	 
      	
                  Chairman
      of the Board of Directors

                
	 
      	 
      	 
      
	
                  Der
      Begriff Verwaltungsratspräsident
      (Präsident) hat
      die in Art. 26 dieser Statuten aufgeführte Bedeutung.

                	 
      	
                  The
      term Chairman of the
      Board of Directors (Chairman) has the meaning assigned to it in
      Art. 26 of these Articles of Association.

                
	 
      	 
      	 
      
	
                  Zivilrechtliche
      Person

                	 
      	
                  Person

                
	 
      	 
      	 
      
	
                  Der
      Begriff Zivilrechtliche
      Person bedeutet jede natürliche Person, Kapitalgesellschaft,
      rechts- oder nichtrechtsfähige Personengesellschaft oder jeder andere
      Rechtsträger.

                	 
      	
                  The
      term Person shall
      mean any individual, corporation, partnership, unincorporated association
      or other entity.

                
	 
      	 
      	 
      
	
                  Zusammenschluss

                	 
      	
                  Business
      Combination

                
	 
      	 
      	 
      
	
                  Der
      Begriff Zusammenschluss bedeutet
      (i) jede Fusion oder andere Form des Zusammenschlusses der Gesellschaft
      oder einer ihrer Tochtergesellschaften mit (i) einem Nahestehenden
      Aktionär (gemäss Definition in diesem Artikel) oder mit (ii) einer anderen
      Gesellschaft oder Unternehmung (unabhängig davon, ob diese selber ein
      Nahestehender Aktionär ist), falls diese eine Nahestehende Gesellschaft
      eines Nahestehenden Aktionärs ist oder durch die Fusion oder
      Zusammenführung eine solche wird oder (ii) jeder Verkauf, Vermietung oder
      Verpachtung, Austausch, hypothekarische Belastung oder andere Verpfändung,
      Übertragung oder andere Verfügung (ob in einer oder mehreren
      Transaktionen) an oder für einen Nahestehenden Aktionär oder eine
      Nahestehenden Gesellschaft eines solchen Nahestehenden Aktionärs bezüglich
      Vermögenswerten der Gesellschaft oder einer ihrer Tochtergesellschaften
      mit einem aggregierten Marktwert (gemäss Definition in diesem Artikel) der
      mindestens 25 % des Marktwertes der gesamten Aktiven unmittelbar vor der
      Transaktion entspricht, oder (iii) die Ausgabe oder Übertragung von
      Anteilen der Gesellschaft oder einer ihrer Tochtergesellschaften (ob in
      einer oder mehreren Transaktionen) mit einem aggregierten Marktwert, der
      mindestens 25 % des Marktwertes der gesamten Aktiven unmittelbar vor der
      Transaktion entspricht, an einen Nahestehenden Aktionär oder eine
      Nahestehende Gesellschaft eines solchen Nahestehenden Aktionärs im
      Austausch gegen Bargeld, Effekten oder anderen Vermögenswerten (oder einer
      Kombination solcher Werte) mit Ausnahme der Ausgabe oder Übertragung von
      Anteilen der Gesellschaft oder einer ihrer Tochtergesellschaften im
      Zusammenhang mit einem Mitarbeiterbeteiligungsprogramm der Gesellschaft
      oder einer ihrer Tochtergesellschaften, oder (iv) der Beschluss über die
      Liquidation oder Auflösung der Gesellschaft auf Antrag oder im Namen eines
      Nahestehenden Aktionärs oder einer einem Nahestehenden Aktionär
      Nahestehenden Gesellschaft, oder (v) jede Änderung in der Klassifizierung
      der Anteile der Gesellschaft (einschliesslich das Zusammenlegen von
      Aktien), Rekapitalisierung der Gesellschaft, Fusion oder andere Form des
      Zusammenschlusses der Gesellschaft mit einer ihrer Tochtergesellschaften
      oder jede andere Transaktion (unabhängig davon, ob ein Nahestehender
      Aktionär involviert ist), die zu einer direkten oder indirekten Erhöhung
      des proportionalen Anteils der ausstehenden Anteile der Gesellschaft oder
      einer ihrer Tochtergesellschaften unabhängig von der Art der ausstehenden
      Anteilen (Aktien, Wandelanleihen) führen und die direkt oder indirekt
      einem Nahestehenden Aktionär oder einer Nahestehenden Gesellschaft eines
      Nahestehenden Aktionärs gehören („Unverhältnismässige
      Transaktion“), wobei eine solche Transkation dann nicht als
      Unverhältnismässige Transaktion gelten soll, wenn die Erhöhung des Anteils
      des Nahestehenden Aktionärs bzw. der Nahestehenden Gesellschaft des
      Nahestehenden Aktionärs als Folge dieser Transaktion nicht grösser ist als
      die Erhöhung der Anteile der übrigen Aktionäre.

                	 
      	
                  The
      term Business
      Combination shall mean (i) any merger or consolidation of the
      Company or any subsidiary with (i) any Interested Shareholder (as defined
      in this Article) or (ii) any other company or other entity (whether or not
      itself an Interested Shareholder) which is, or after such merger or
      consolidation would be, an Affiliate of an Interested Shareholder; or (ii)
      any sale, lease, exchange, mortgage, pledge, transfer or other disposition
      (in one transaction or a series of transactions) to or with any Interested
      Shareholder, or any Affiliate of any Interested Shareholder, of any assets
      of the Company or any subsidiary having an aggregate Fair Market Value (as
      defined in this Article) equaling or exceeding twenty-five percent (25%)
      of the Fair Market Value of the combined assets immediately prior to such
      transfer of the Company and its subsidiaries; or (iii) the issuance or
      transfer by the Company or any subsidiary (in one transaction or a series
      of transactions) to any Interested Shareholder or any Affiliate of any
      Interested Shareholder in exchange for cash, securities or other property
      (or a combination thereof), of any securities of the Company or any
      subsidiary having an aggregate Fair Market Value equaling or exceeding
      twenty-five percent (25%) of the Fair Market Value of the combined assets
      immediately prior to such transfer of the Company and its subsidiaries
      except pursuant to an employee benefit plan of the Company or any
      subsidiary thereof; or (iv) the adoption of any plan or proposal for the
      liquidation or dissolution of the Company proposed by or on behalf of any
      Interested Shareholder or any Affiliate of any Interested Shareholder; or
      (v) any reclassification of securities of the Company (including any
      reverse share split), recapitalization of the Company, merger or
      consolidation of the Company with any of its subsidiaries or other
      transaction (whether or not with or into or otherwise involving an
      Interested Shareholder), which has the effect, directly or indirectly, of
      increasing the proportionate share of the outstanding shares of any class
      of equity or convertible securities of the Company or any subsidiary which
      is directly or indirectly owned by any Interested Shareholder or any
      Affiliate of any Interested Shareholder (a “Disproportionate
      Transaction”); provided, however, that no such transaction shall be
      deemed a Disproportionate Transaction if the increase in the proportionate
      ownership of the Interested Shareholder or Affiliate as a result of such
      transaction is no greater than the increase experienced by the other
      stockholders generally.

                
	 
      	 
      	 
      
	_________________________ 
      	 
      	_________________________ 
      
	 
      	 
      	 
      
	
                  Zürich,
      __________________

                	 
      	 
      

        

      

       

      
        
          
          

        

        
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