Audiovox 2005 Annual Report Download - page 94

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As of November 30, 2004 and 2005, 2,713,353 and 1,737,901
shares, respectively, of the Company's Class A common stock
are reserved for issuance under the Company's Restricted and
Stock Option Plan. There was no restricted stock outstanding
at November 30, 2004 and 2005.
(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, 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 discretional contribution
accrual of $600, $601 and $0 was recorded by the Company for
the United States plan in fiscal 2003, 2004 and 2005,
respectively. Contributions required by law to be made for
eligible employees in Canada were not material for all periods
presented.
The Company also has a 401(k) plan for eligible employees. The
Company matches a portion of the participant's contributions
after one year of service under a predetermined formula based
on the participant's contribution level. The Company's
contributions were $135, $155 and $139 for the year ended
November 30, 2003, 2004 and 2005, respectively. Shares of the
Company's Common Stock are not an investment option in the
Savings Plan and the Company does not use such shares to match
participants' contributions.
(f) Deferred Compensation Plan
Effective December 1, 1999, the Company adopted a Deferred
Compensation Plan (the Plan) for a select group of management.
The Plan is intended to provide certain executives with
supplemental retirement benefits as well as to permit the
deferral of more of their compensation than they are permitted
to defer under the Profit Sharing and 401(k) Plan. The Plan
provides for a matching contribution equal to 25% of the
employee deferrals up to $20. The Plan is not intended to be a
qualified plan under the provisions of the Internal Revenue
Code. All compensation deferred under the Plan is held by the
Company in an investment trust which is considered an asset of
the Company. The Company has the option of amending or
terminating the Plan at any time.
F−40