Ingram Micro 2007 Annual Report Download - page 47

(4) Mr. Murai is a Canadian citizen and elected not to participate in the Ingram Micro sponsored 401(k) plan or the
Supplemental Plan. As a result the Company has entered into a deferred compensation arrangement with
Mr. Murai that provides him the same opportunity to defer compensation and receive Company matching
contributions as other U.S. executive officers who participate in these programs. See footnote (1) for a
description of the Supplemental Plan’s terms and conditions.
(5) $17,500 and $15,600, respectively, have also been reported under “All Other Compensation” for Mr. Murai on
the Summary Compensation Table in this proxy statement and in the Company’s 2007 proxy statement.
(6) $8,942 and $8,654, respectively, have also been reported under “All Other Compensation” for Mr. Koppen on
the Summary Compensation Table in this proxy statement and in the Company’s 2007 proxy statement. In
addition, $2,500,000 under the “Aggregate Balance at End of 2007” was previously reported under “Bonus” for
Mr. Koppen on the Summary Compensation Table in the Company’s 2007 proxy statement. We also reported in
the Company’s 2007 proxy statement that Mr. Koppen’s deferred $2,500,000 award was credited with earnings
at 10% per year, compounded daily until paid, of which $76,770, representing the above market portion return,
was reported under “Change in Pension Value and Non-Qualified Deferred Compensation Earnings” on the
2007 Summary Compensation Table.
(7) Mr. Koppen’s deferred $2,500,000 award is being credited with earnings at 10% per year, compounded daily
until paid, the total amount is reported under the “Aggregate Earnings in 2007” column and of which $106,444,
representing the above market portion return, has also been reported under “Change in Pension Value and Non-
Qualified Deferred Compensation Earnings” on the Summary Compensation Table. Mr. Koppen is entitled to a
lump sum cash payment of his award and accrued interest upon termination of his employment with the
Company, or solely at the Committee’s election, at an earlier date.
POTENTIAL PAYMENTS UPON TERMINATION
Ingram Micro has entered into certain agreements and has an Executive Severance Policy that will require
Ingram Micro to provide compensation to NEOs of Ingram Micro in the event of retirement and/or termination of
employment with Ingram Micro. Ingram Micro does not have any change in control arrangements or any amounts
due to any executive who is terminated for cause. Effective January 1, 2007, the definition of retirement under the
2003 Plan was amended to provide that normal retirement is defined as age 65 or greater with five or more years of
service and early retirement is defined as age 55 or greater with 10 or more years of service. In the event their
employment is terminated by the Company without “cause” as determined under the Severance Policy, the
executive officer will receive an aggregate severance benefit equal to the greater of (x) the sum of the executive
officer’s annual base salary and target annual bonus, each as in effect on the effective date of termination; and (y) the
product of one-twelfth times the sum of the executive officer’s annual base salary and target annual bonus, each as in
effect on the effective date, multiplied by the number of the executive officer’s full years of employment with the
Company (the “employment years”). The severance benefit will be payable in equal installments from the effective
date of termination over the greater of (x) 12 months or (y) that number of months equal to the number of
employment years (the “Continuation Period”).
The executive officer will also be entitled to an amount in cash equal to executive officer’s actual annual bonus
determined for the year in which the Continuation Period begins, prorated to reflect the executive officer’s period of
employment in such year. Such payment will be otherwise calculated and paid on the same basis and at the same
time as the annual bonus payments are made to actively employed Ingram Micro executive officers.
The executive officer and his or her dependents may continue to participate, at the executive officer’s expense,
in Company-sponsored health and welfare programs through the Continuation Period. The executive officer will
also be entitled to participate in an outplacement program, paid for by us, with a maximum cost not to exceed
$20,000.
Any unvested stock options, restricted stock awards, or other stock-based incentive compensation awards held
by the executive officer will be cancelled on the effective date of termination unless he/she qualifies for retirement.
Any such vested awards will be governed by the terms of the plan and award agreements for each award. The
executive officer’s participation in our long-term incentive programs shall cease on termination of employment;
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