Audiovox 2003 Annual Report Download - page 125

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AUDIOVOX CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements, Continued
November 30, 2001, 2002 and 2003
(Dollars in thousands, except share and per share data)
(c) Restricted Stock Plan
The Company has restricted stock plans under which key employees and
directors may be awarded restricted stock. Awards under the restricted
stock plan may be performance−accelerated shares or
performance−restricted shares. There were no performance−restricted
accelerated shares or performance−restricted shares granted in 2001,
2002 and 2003.
Compensation expense for the performance−accelerated shares is
recorded based upon the quoted market value of the shares on the date
of grant. Compensation expense for the performance−restricted shares
is recorded based upon the quoted market value of the shares on the
balance sheet date. There was no restricted stock outstanding at
November 30, 2001, 2002 and 2003.
(d) Employee Stock Purchase Plan
In April 2000, the stockholders approved the 2000 Employee Stock
Purchase Plan of up to 1,000,000 shares. The stock purchase plan
provides eligible employees an opportunity to purchase shares of the
Company's Class A common stock through payroll deductions at a minimum
of 2% and a maximum of 15% of base salary compensation. Amounts
withheld are used to purchase Class A common stock on the open market.
The cost to the employee for the shares is equal to 85% of the fair
market value of the shares on or about the quarterly purchase date
(December 31, March 31, June 30 or September 30). The Company bears
the cost of the remaining 15% of the fair market value of the shares
as well as any broker fees.
The Company's employee stock purchase plan is a non−compensatory plan,
in accordance with APB No. 25, for which the related expense is
recorded in general and administrative expenses in the consolidated
statement of operations.
(e) Profit Sharing Plans/ 401(k) Plan
The Company has established two non−contributory employee profit
sharing plans for the benefit of its eligible employees in the United
States and Canada. The plans are administered by trustees appointed by
the Company. A contribution accrual of $300 and $600 was recorded by
the Company for the United States plan in fiscal 2001 and 2003,
respectively. No accruals for contributions were recorded by the
Company in fiscal 2002. Contributions required by law to be made for
eligible employees in Canada were not material for all periods
presented.
(Continued)
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