Avnet 2004 Annual Report Download - page 66

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AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Employee Stock Purchase Plan:
In October 1995, the Company implemented the Avnet Employee Stock Purchase Plan (""ESPP'').
Under the terms of the ESPP, eligible employees of the Company are oÅered options to purchase shares of
Avnet common stock at a price equal to 85% of the fair market value on the Ñrst or last day, whichever is
lower, of each monthly oÅering period. A total of 4,000,000 shares of Avnet common stock have been reserved
for sale under the ESPP, including an additional 1,000,000 shares reserved for the ESPP in Ñscal 2004. At
July 3, 2004, employees had purchased 3,080,329 shares and 919,671 shares were still available for purchase
under the ESPP.
Incentive Stock:
The Company has an Incentive Stock Program wherein a total of 181,655 shares were still available for
award at July 3, 2004 based upon operating achievements. Delivery of incentive shares is spread equally over a
four-year period and is subject to the employee's continuance in the Company's employ. As of July 3, 2004,
23,304 shares previously awarded have not yet been delivered. Compensation expense associated with this
program was not material in Ñscal 2004, 2003 and 2002. The current program will terminate on December 31,
2004. However, as discussed above, 2,000,000 additional shares registered under the 2003 Plan can be used for
restricted stock awards.
Outside Director Stock Bonus Plan:
The Company has a program whereby non-employee directors are awarded shares equal to $20,000 of
Avnet common stock upon their re-election each year, as part of their director compensation package.
Directors may elect to receive this compensation in the form of common stock under the Outside Director
Stock Bonus Plan or they may elect to defer their compensation to be paid in common stock at a later date.
Shares under this plan are issued in January of each year and the number of shares is calculated by dividing
$20,000 by the average of the high and low price of Avnet common stock on the Ñrst business day of January.
As of July 3, 2004, 30,193 shares are reserved for issuance under this plan.
Other Stock-based Compensation Information:
At July 3, 2004, there were 17,460,617 common shares reserved for stock options (including the ESPP)
and incentive stock programs (including the director plan).
13. Contingent Liabilities:
From time to time, the Company may become liable with respect to pending and threatened litigation,
taxes and environmental and other matters. The Company has been designated a potentially responsible party
or has become aware of other potential claims against it in connection with environmental clean-ups at several
sites. Based upon the information known to date, the Company believes that it has appropriately reserved for
its share of the costs of the clean-ups and it is not anticipated that any contingent matters will have a material
adverse impact on the Company's Ñnancial condition, liquidity or results of operations.
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