Garmin Ltd. announced that company co-founder, chairman, and CEO, Dr. Min H. Kao, has established a pre-arranged trading plan to sell up to one million of his shares in the company between Oct. 2005 and Sept. 2006. The plan was adopted in accordance with Rule 10b5-1 of the Securities and Exchange Act of 1934, which allows corporate officers and directors to adopt written, pre- arranged stock trading plans when they do not have material, non-public information.
Such programs provide for regular selling of a predetermined, fixed number of company shares in order to gradually diversify the individual's investment portfolio, minimize the market effect of share sales by spreading them out over an extended period of time and avoid concerns about initiating transactions while in possession of material non-public information.
The maximum number of Garmin shares to be sold by Dr. Kao under this plan, beginning in October of 2005 and ending in September of 2006, is 1,000,000 shares, which is approximately 4 percent of the 24,359,426 Garmin shares currently owned by Dr. Kao and his wife and children. No shares have been sold under the plan to date. Any transactions under the plan will be disclosed publicly through Form 144 and Form 4 filings with the Securities and Exchange Commission.
This plan represents the first sale of any shares of Garmin Ltd. by Dr. Kao since the company was founded. Dr. Kao adopted the plan as part of his individual long-term strategy for asset diversification and liquidity.
