Ingram Micro 2002 Annual Report Download - page 20

Loans to executive officers.
We extended a $200,000 loan to an executive officer, Guy P. Abramo, to assist him with the purchase of his home at an interest rate
of 5.5% per annum. We agreed to forgive 20% of the outstanding principal and interest on April 1st of each year, commencing April 1,
2000, if Mr. Abramo continues to be an employee in good standing with us on each such date. Additionally we agreed to provide tax
gross-up payments to cover the taxes that Mr. Abramo may be liable to pay in connection with such forgiveness arrangement. We
forgave $54,872 ($40,000 in principal and $14,872 in interest) and $48,824 ($40,000 in principal and $8,824 in interest) on April 1, 2000
and April 1, 2001, respectively. On October 1, 2001, Mr. Abramo repaid the loan in full and the amount of $3,435.62 of interest was
forgiven.
In connection with our request that Asger Falstrup, an executive officer, relocate from Canada to the United States as President of
Ingram Micro Latin America, we extended a bridge loan of $175,000 to Mr. Falstrup to assist him and his family’s transfer to and
purchase of a home in Miami, Florida, at an interest rate of 3.52% per annum. Principal and all accrued interest is payable on April 30,
2002, six (6) months from the date of Mr. Falstrup’s loan. We agreed to forgive all accrued interest so long as Mr. Falstrup is not in
default under the terms of the loan and he remains employed by us on the loan termination date.
In connection with our request that Kevin Murai, an executive officer, relocate from Canada to the United States as President of
Ingram Micro U.S., we extended three loans to Mr. Murai. First, to assist Mr. Murai and his family’s transfer to and purchase of a home
in Southern California, we extended a $300,000 loan to Mr. Murai, at an interest rate of 6.43% per annum. We agreed to forgive 20% of
the outstanding principal and interest on May 1st of each year, commencing May 1, 2001, if Mr. Murai continues to be an employee in
good standing with us on each such date. Additionally, we agreed to provide payments to cover the taxes that Mr. Murai may be liable to
pay in connection with such forgiveness arrangement. We forgave $79,554 ($60,000 in principal and $19,554 in interest) on May 1,
2001. As of April 3, 2002, Mr. Murai’s outstanding loan amount was $252,980.
Second, Mr. Murai’s relocation to the United States in January 2000 triggered additional tax obligations by Mr. Murai to the
Canadian and U.S. tax authorities, and we extended two loans to assist him with meeting such increased tax liabilities. Mr. Murai
received a grant of restricted stock in October 1999 as President of Ingram Micro Canada. He was required to pay Canadian taxes on the
unvested portion of the restricted stock when he relocated to the United States. Mr. Murai was also required to pay U.S. taxes when 50%
of the restricted stock vested in October 2000. In connection with payment of such additional tax obligations, we extended a $30,187.89
loan at an interest rate of 5.94% per annum to Mr. Murai. We agreed to waive all of the interest if Mr. Murai repays the principal in full
on its due date of December 31, 2003. We also agreed to provide payments to cover the taxes that Mr. Murai may be liable to pay in
connection with such waiver of interest arrangement. As of April 3, 2002, the outstanding balance on Mr. Murai’s tax loan was $32,695.
In addition, as a result of his relocation from Canada to the U.S., Mr. Murai was “double-taxed” by the Canadian and U.S. tax
authorities on his personal income. We extended an interest-free $182,000 tax advance to Mr. Murai to cover the difference between
Mr. Murai’s Canadian and U.S. tax obligations relating to his relocation from Canada to the United States. Mr. Murai agreed to repay
this advance on the earlier of receipt of certain Canadian tax credits or December 31, 2001. On February 11, 2002, we agreed to extend
the terms of Mr. Murai’s repayment from December 31, 2001 to June 30, 2002 or upon receipt of his Canadian tax refund, whichever is
earlier. We have agreed to provide payments to cover the taxes that Mr. Murai may be liable to pay in connection with the waiver of
interest arrangement.
In recognition of his performance in leading certain projects for the Company, we have provided a loan in the amount of $150,000 to
James E. Anderson, Jr., an executive officer of the Company, at an interest rate of 2.74% per annum. We agreed to forgive one-third of
the outstanding principal and all accrued interest on Mr. Anderson’s loan on each of the first three anniversaries of the date of his loan,
provided that he continues to be employed by us on each such date. We have also agreed to provide payments to cover the taxes that
Mr. Anderson may be liable to pay in connection with such forgiveness arrangement. As of April 3, 2002, Mr. Anderson’s outstanding
loan balance was $150,000.
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