Ingram Micro 2006 Annual Report Download - page 85

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Equity Incentive Plan
The Company currently has a single stock incentive plan approved by its stockholders, the 2003 Equity
Incentive Plan (the “2003 Plan”), for the granting of stock-based incentive awards including incentive stock options,
non-qualified stock options, restricted stock, restricted stock units and stock appreciation rights, among others, to
key employees and members of the Company’s Board of Directors. Under the 2003 Plan, no more than
8,000,000 shares may be issued in connection with awards relating to restricted stock and restricted stock units.
Prior to 2006, the Company’s stock-based incentive awards were primarily in the form of stock options. Beginning
in January 2006, the Company reduced the level of grants of stock options compared to previous years and now
grants restricted stock and restricted stock units, in addition to stock options, to key employees and members of the
Company’s Board of Directors. Options granted generally vest over a period of three years and have expiration dates
not longer than 10 years. A portion of the restricted stock and restricted stock units vest over a time period of one to
three years. The remainder of the restricted stock and restricted stock units vests upon achievement of certain
performance measures based on earnings growth and return on invested capital over a three-year period. As of
December 30, 2006, approximately 16,180,000 shares were available for grant under the 2003 Plan.
In 2006, 2005 and 2004, the Company granted a total of 39,389, 52,129 and 35,019 shares, respectively, of
restricted Class A Common Stock to board members under the 2003 Plan. These shares have no purchase price and
vest over a one-year period. The Company recorded unearned compensation in 2005 and 2004 of $925 and $589,
respectively, as a component of stockholders’ equity upon issuance of these grants. In 2006, the Company granted
906,225 restricted stock units convertible upon vesting to the same number of Class A Common Stock under the
2003 Plan. In 2005, the Company granted to certain employees a total of 5,800 restricted stock units. These units
have no purchase price and vest over a period of one to three years. The Company recorded unearned compensation
in 2005 of $107 as a component of stockholders’ equity upon issuance of these units.
61
INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)