Document:

exv10w1

 

Exhibit 10.1

INDEMNITY AGREEMENT

     AGREEMENT, dated                      between Avnet, Inc., a New York corporation (the
“Corporation”) and                                                  (“Indemnitee”).

W I T N E S S E T H:

     WHEREAS, Indemnitee currently serves and performs valuable services for the Corporation
as an officer or director of the Corporation or a subsidiary thereof and, as such, may be subject
to claims, actions, suits or proceedings arising as a result of such service; and

     WHEREAS, the Corporation (i) has adopted By-Laws providing for the indemnification and
advancement of expenses by the Corporation of any director and officer to the full extent permitted
by law, and (ii) the Business Corporation Law of the State of New York (the “State Statute”) is not
exclusive of other rights of indemnification or advancement when authorized by an agreement
providing for such rights; and

     WHEREAS, in order to induce Indemnitee to serve or continue to serve as an officer or director
of the Corporation or a subsidiary thereof, the Corporation has determined that it is in its best
interest to enter into this agreement;

     NOW, THEREFORE, the parties hereto agree as follows:

     FIRST: Indemnification. The Corporation hereby agrees to hold harmless and indemnify
Indemnitee, effective as of the date Indemnitee first became a director or officer of the
Corporation or a subsidiary thereof, or served in any other capacity of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise at the request of the
Corporation or a subsidiary thereof, from and against any and all judgments, fines, amounts paid in
settlement and expenses, including attorneys’ fees, incurred as a result of or in connection with
any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative or as a result of or in connection with any appeal therein, whether
or not such action, suit or proceeding is by or in the right of the Corporation or any subsidiary
thereof to provide a judgment in its favor, including any action, suit or proceeding by or in the
right of any other corporation of any type or kind, domestic or foreign, or any partnership, joint
venture, trust, employee benefit plan or other enterprise that the Indemnitee serves in any
capacity at the request of the Corporation, to which Indemnitee is, was or at any time becomes a
party, or is threatened to be made a party or as a result of or by reason of the fact that
Indemnitee is, was or at any time, becomes a director or officer of the Corporation or a subsidiary
thereof, or is or was serving or at any time serves such other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise, in any capacity, whether arising out of
any breach of Indemnitee’s fiduciary duty, under any state or federal law or otherwise, as a
director or officer of the Corporation or subsidiary or as a director, officer, employee or agent
of such other corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise if Indemnitee acted in good

 

 

faith, for a purpose which Indemnitee reasonably believed to be in or (in the case of service
for another corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise) not opposed to, the best interests of the corporation, and, in criminal actions or
proceedings, in addition, had no reasonable cause to believe that his or her conduct was unlawful;
provided, however, that no indemnity pursuant to this Article FIRST shall be paid by the
Corporation

	 	(1)	 	except to the extent the aggregate of losses to be indemnified exceeds the amount of
such losses for which Indemnitee is actually paid pursuant to any insurance purchased and
maintained by the Corporation for the benefit of Indemnitee;
	 
	 	(2)	 	if judgment or other final adjudication establishes that the Indemnitee’s acts were
committed in bad faith or were the result of active and deliberate dishonesty and were
material to the cause of action so adjudicated, or that Indemnitee personally gained in
fact a financial profit or other advantage to which Indemnitee was not legally entitled;
or
	 
	 	(3)	 	if a final judgment by a court having jurisdiction in the matter shall determine that
such indemnification is not lawful.

The termination of any such civil, criminal, administrative or investigative action, suit or
proceeding by judgment, settlement, conviction or upon a plea of nolo contendere, or its
equivalent, shall not create a presumption that Indemnitee did not act in good faith, for a purpose
which Indemnitee reasonably believed to be in or (in the case of service for another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise) not opposed to, the
best interests on the corporation, or that Indemnitee had reasonable cause to believe that his or
her conduct was unlawful. For purposes of this Agreement (i) the Corporation shall be deemed to
have requested Indemnitee to serve in a capacity with respect to an employee benefit plan where the
performance by Indemnitee of his or her duties to the Corporation or a subsidiary thereof also
imposes duties on, or otherwise involves services by, Indemnitee to the plan or participants or
beneficiaries of the plan; (ii) excise taxes assessed on Indemnitee with respect to any employee
benefit plan pursuant to applicable law shall be considered fines; and (iii) action taken or
omitted by Indemnitee with respect to an employee benefit plan in the performance of Indemnitee’s
duties for a purpose reasonably believed by Indemnitee to be either in the interest of the
Corporation or a subsidiary or in the interest of the participants and beneficiaries of the plan
shall be deemed to be for a purpose which is not opposed to the best interests of the Corporation.

     SECOND: Continuation of Indemnity. All agreements and obligations of the Corporation
contained herein shall continue during the period Indemnitee shall serve as a director or officer
of the Corporation or subsidiary thereof and thereafter so long as Indemnitee shall be subject to
any possible claim or threatened, pending or completed action, suit or proceeding, whether, civil,
criminal, administrative or investigative, by reason of the fact that Indemnitee was a director or
officer of the Corporation or subsidiary or served at the request of the Corporation in any
capacity in any other corporation, partnership, joint venture, trust, employee benefit plan or
other enterprise.

     THIRD: Determination of Entitlement to Indemnification. Upon written request by
Indemnitee for indemnification pursuant to Article FIRST hereof, the entitlement of

 

 

Indemnitee to indemnification, to the extent not provided pursuant to the terms of this
Agreement, shall be determined by the following person or persons who shall be empowered to make
such determination: (a) the Board of Directors of the Corporation, acting by a quorum consisting
of directors who are not parties to the action, suit or proceeding with respect to which
indemnification is sought; or (b) if a quorum is not obtainable, or, even if obtainable, if a
quorum of directors who are not parties to the action, suit or proceeding with respect to which
indemnification is sought so directs, either by the Board of Directors upon the written opinion of
independent legal counsel, a copy of which shall be delivered to Indemnitee, or by the
Corporation’s shareholders. Such independent counsel shall be selected by the Board of Directors
and approved by Indemnitee. Upon failure of the Board of Directors to select such independent
counsel or upon failure of Indemnitee so to approve, such independent counsel shall be selected
upon application to a court of competent jurisdiction. Such determination of entitlement to
indemnification shall be made not later than 30 calendar days after receipt by the Corporation of a
written request for indemnification. Such request shall include documentation or information which
is necessary for such determination and which is reasonably available to Indemnitee. Any expenses
incurred by Indemnitee in connection with a request for indemnification or advancement of expenses
under this Agreement, or under any provision of the Corporation’s Certificate of Incorporation or
By-laws or any directors’ and officers’ liability insurance, shall be borne by the Corporation.
The Corporation hereby indemnifies Indemnitee for any such expense and agrees to hold Indemnitee
harmless therefrom irrespective of the outcome of the determination of Indemnitee’s entitlement to
indemnification. If the person making such determination shall determine that Indemnitee is
entitled to indemnification as to part (but not all) of the application for indemnification, such
person shall reasonably prorate such partial indemnification among the claims, issues or matters at
issue at the time of the determination. Notwithstanding anything to the contrary, in the event
that the Indemnitee is not a member of the Board of Directors or an Executive Officer of the
Corporation, the Board of Directors may delegate its responsibilities under this Article Third to
the Chief Executive Officer of the Corporation.

     FOURTH: Presumptions and Effect of Certain Proceedings. The Secretary of the
Corporation shall, promptly upon receipt of Indemnitee’s request for indemnification, advise in
writing the Board of Directors or such other person or persons empowered to make the determination
as provided in Article THIRD hereof that Indemnitee has made such request for indemnification.
Upon making such request for indemnification, Indemnitee shall be presumed to be entitled to
indemnification hereunder and the Corporation shall have the burden of proof in making any
determination contrary to such presumption. If the person or persons so empowered to make such
determination fails to make the requested determination with respect to indemnification within 30
calendar days after receipt by the Corporation of such request, a requisite determination of
entitlement to indemnification shall be deemed to have been made and Indemnitee shall be absolutely
entitled to such indemnification, absent actual and material fraud in the request for
indemnification.

     FIFTH: Remedies of Indemnitee in Cases of Determination not to Indemnify or to Advance
Expenses. In the event that a determination is made that Indemnitee is not entitled to
indemnification hereunder or if payment has not been timely made following a determination of
entitlement to indemnification pursuant to Articles THIRD and FOURTH hereof or, or if expenses are
not advanced pursuant to Article SEVENTH hereof, Indemnitee shall be entitled to final adjudication
in a court of competent jurisdiction of

 

 

entitlement to such indemnification or advancement. Alternatively, Indemnitee at Indemnitee’s
option may seek an award in an arbitration to be conducted by a single arbitrator pursuant to the
rules of the American Arbitration Association, such award to be made within 60 days following the
filing of the demand for arbitration. The Corporation shall not oppose Indemnitee’s right to seek
any such adjudication or award in arbitration or any other claim. The determination in any such
judicial proceeding or arbitration shall be made de novo and Indemnitee shall not be prejudiced by
reason of a determination (if so made) pursuant to Article THIRD or FOURTH hereof that Indemnitee
is not entitled to indemnification. If a determination is made or deemed to have been made
pursuant to the terms of Article THIRD or FOURTH hereof hereof that Indemnitee is entitled to
indemnification, the Corporation shall be bound by such determination and is precluded from
asserting that such determination has not been made or that the procedure by which such
determination was made is not valid, binding and enforceable. The Corporation further agrees to
stipulate in any such court or before any such arbitrator that the Corporation is bound by all the
provisions of this Agreement and is precluded from making any assertions to the contrary. If the
court or arbitrator shall determine that Indemnitee is entitled to any indemnification or
advancement of expenses hereunder, the Corporation shall pay all expenses actually and reasonably
incurred by Indemnitee in connection with such adjudication or award in arbitration (including, but
not limited to, any appeal therein).

     SIXTH: Notification and Defense of Claim. Promptly after receipt by Indemnitee of
notice of the commencement of any action, suit or proceeding, Indemnitee will, if a claim in
respect thereof is to be made against the Corporation under this Agreement, notify the Corporation
of the commencement thereof; but the omission so to notify the Corporation will not relieve it from
any liability that it may have to Indemnitee otherwise than under this Agreement. With respect to
any such action, suit or proceeding as to which Indemnitee notifies the Corporation of the
commencement thereof:

     A. The Corporation or subsidiary will be entitled to participate therein at its own expense;
and,

     B. Except as otherwise provided below, to the extent that it may wish, the Corporation
jointly with any other indemnifying party similarly notified will be entitled to assume the defense
thereof, with counsel satisfactory to Indemnitee. After notice from the Corporation to Indemnitee
of its election so to assume the defense thereof, the Corporation will not be liable to Indemnitee
under this Agreement for any legal or other expenses subsequently incurred by Indemnitee in
connection with the defense thereof other than reasonable costs of investigation or as otherwise
provided below. Indemnitee shall have the right to employ his or her own counsel in such action,
suit or proceeding but the fees and expenses of such counsel incurred after notice from the
Corporation of its assumption of the defense thereof shall be at the expense of Indemnitee unless
(1) the employment of counsel by Indemnitee has been authorized by the Corporation in connection
with the defense of such action, (2) Indemnitee shall have reasonably concluded that there may be a
conflict of interest between the Corporation and Indemnitee in the conduct of the defense of such
action, or (3) the Corporation shall not in fact have employed counsel to assume the defense of
such action, in each of which cases the fees and expenses of counsel shall be borne by the
Corporation (it being understood, however, that the Corporation shall not be liable for the
expenses for more than one counsel for Indemnitee in connection with any action or separate but
similar or related actions in the same jurisdiction arising out of the same general allegations or

 

 

circumstances). The Corporation shall not be entitled to assume the defense of any action,
suit or proceeding brought by or on behalf of the Corporation or as to which Indemnitee shall have
made the conclusion provided for in (2) above.

     C. Anything in this Article SIXTH to the contrary notwithstanding, the Corporation shall not
be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any
action or claim effected without its written consent. The Corporation shall not settle any action
or claim in any manner that would impose any penalty or limitation on Indemnitee without
Indemnitee’s written consent. Neither the Corporation nor Indemnitee will unreasonably withhold
their consent to any proposed settlement.

     SEVENTH: Advancement and Repayment of Expenses. In the event of any threatened or
pending action, suit or proceeding that may give rise to a right of indemnification from the
Corporation to Indemnitee pursuant to this Agreement, the Corporation shall pay on demand, in
advance of the final disposition thereof expenses, other than (a) those expenses for which
Indemnitee is not entitled to indemnification pursuant to Article SIXTH hereof and (b) those
expenses for which Indemnitee has been paid under any insurance purchased and maintained by the
Corporation for the benefit of Indemnitee. The Corporation shall make such payments within 20
calendar days upon receipt of (1) a written request by Indemnitee for payment of such expenses, (2)
an undertaking by or on behalf of Indemnitee to repay such amount if it shall ultimately be
determined that he or she is not entitled to be indemnified by the Corporation hereunder, and (3)
satisfactory evidence as to the amount of such expenses. Indemnitee’s written certification
together with a copy of the statement paid or to be paid by Indemnitee shall constitute
satisfactory evidence as to the amount of such expenses.

     EIGHTH: Indemnification for Expenses of a Witness. Notwithstanding any other
provision of this Agreement, to the maximum extent permitted by law, Indemnitee shall be entitled
to indemnification against all expenses actually and reasonably incurred or suffered by Indemnitee
or on Indemnitee’s behalf if Indemnitee appears as a witness or otherwise incurs legal expenses as
a result of or related to Indemnitee’s service as a director or officer of the Corporation in any
threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative, to which Indemnitee neither is, nor is threatened to be made, a
party.

     NINTH: Enforcement.

     A. The Corporation expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on the Corporation hereby in order to induce Indemnitee to become
or continue as an officer or director of the Corporation or any subsidiary and acknowledges that
Indemnitee is relying upon this Agreement in accepting such position or continuing in such
capacity.

     B. In the event Indemnitee is required to bring any action to enforce rights or to collect
moneys due under this Agreement and is successful in such action, the Corporation shall reimburse
Indemnitee for all costs and expenses, including attorneys’ fees, incurred by Indemnitee in
connection with such action.

     TENTH: Indemnification Hereunder Not Exclusive. The rights to indemnification and
advancement of expenses granted to Indemnitee under this Agreement shall not be deemed exclusive
of, or in limitation of, any rights to which Indemnitee may now or

 

 

hereafter be entitled under the State Statute, the Corporation’s Restated Certificate of
Incorporation or By-Laws, as now in effect or as may hereafter be amended, any agreement, any vote
of shareholders or directors, or otherwise.

     ELEVENTH: Miscellaneous.

     A. All communications hereunder shall be in writing and shall be sent by registered or
certified mail, return receipt requested; if intended for the Corporation, shall be addressed to
it, attention of its General Counsel, David R. Birk, Esq., at Avnet, Inc., 2211 South 47th Street,
Phoenix, AZ 85034, or at such other address of which the Corporation shall have given notice to
Indemnitee in the manner herein provided; and if intended for Indemnitee shall be addressed to
Indemnitee at the address set forth below under his or her signature, or at such other address of
which Indemnitee shall have given notice to the Corporation in the manner herein provided.

     B. In the event that any provision of this Agreement is invalid, illegal or unenforceable,
the balance of this Agreement shall remain in effect, and if any provision is inapplicable to any
party or circumstances, it shall nevertheless remain applicable to all other parties and
circumstances.

     C. This Agreement constitutes the entire understanding among the parties with respect to the
subject matter hereof and no waiver or modification of the terms hereof shall be valid unless in
writing signed by the party to be charged and only to the extent therein set forth. This Agreement
shall supersede and replace any prior indemnification agreements entered into by and between the
Corporation and Indemnitee and any such prior agreements shall be terminated upon execution of this
Agreement.

     D. This Agreement shall be binding upon Indemnitee and upon the Corporation, its successors
and assigns and shall inure to the benefit of Indemnitee, his or her heirs, personal
representatives and assigns and to the benefit of the Corporation, its successors and assigns.

     E. The captions appearing in this Agreement are inserted only as a matter of convenience and
for reference and in no way define, limit or describe the scope and intent of this Agreement or any
of the provisions hereof.

     F. This Agreement shall be governed by, and construed in accordance with, the laws of the
State of New York applicable to contracts made and to be performed wholly within the State without
giving effect to conflict of laws principles thereof.

     IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement to be effective as
of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	AVNET, INC.	 	 	 	INDEMNITEE
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 

	 	 	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	David R. Birk	 	 	 	 
	 

	 	 	 	Senior Vice President, Secretary	 	 	 	 
	 

	 	 	 	and General Counsel
	 	 	 	Address:exv10w2

 

Exhibit 10.2

     AGREEMENT effective as of July 1, 2004 between AVNET, INC., a New York
corporation with a principal place of business at 2211 South 47th Street, Phoenix, Arizona 85034
(“Avnet”) and Steven C. Church, having an office at 2211 South 47th Street, Phoenix, Arizona 85034
(“Church”). This Agreement supersedes and replaces a previous employment agreement between Avnet
and Church dated as of July 1, 2002.

W I T N E S S E T H

1. Employment, Salary, Benefits:

1.1 Employment. Avnet agrees to employ Church and Church agrees to accept employment upon the
terms and conditions hereinafter set forth.

1.2 Term. Church’s employment pursuant to this Agreement shall commence on July 1, 2004 and
subject to earlier termination as provided in Section 2 below, shall continue for a period of one
(1) year (until June 30, 2005, the “Initial Term”). Unless Church provides Avnet written notice at
least thirty (30) days prior to the expiration of the Initial Term advising Avnet that Church does
not intend to renew the Agreement as hereinafter described, then after June 30, 2005 employment
shall continue until terminated by either party provided, however, that the party desiring to
terminate the employment arrangement gives written notice thereof to the other not less than one
(1) year prior to the date of actual termination of employment. By way of example, should Church
desire not to renew after the Initial Term, such notice would have to be given no later than May
31, 2005. Thereafter (if not so terminated by Church at the end of the Initial Term), by way of
example, if either Avnet or Church should desire to terminate the employment on August 15, 2006
such notice would have to be given not later than August 15, 2005.

1.3 Duties. Church is hereby engaged in an executive capacity and shall perform such duties for
Avnet, or Avnet’s subsidiaries, divisions and operating units as may be assigned to him from time
to time by the Chief Executive Officer of Avnet. Church is currently engaged as Senior Vice
President and Director of Organizational and Business Development. If Church is elected an officer
or a director of Avnet or any subsidiary or division thereof, he shall serve as such without
additional compensation.

1.4 Compensation. For all services to be rendered by Church and for all covenants undertaken by
him pursuant to the Agreement, Avnet shall pay and Church shall accept such compensation (including
base salary and incentive compensation) as shall be agreed upon from time to time between Avnet and
Church. In the event Church’s employment hereunder is terminated by the one (1) year notice
provided for in Section 1.2 above and Avnet and Church fail to agree upon compensation during all
or any portion of the one (1) year notice period prior to termination, then Church’s compensation
(base salary and incentive compensation) during such portion of the notice period shall be equal to
the cash compensation earned by Church during the four completed fiscal quarters preceding the date
on which notice is given. Upon such termination (after a one-year notice) Church shall not be
entitled to severance payments under any Avnet severance plan. In the alternative event that at
least 30 days prior to the end of the Initial Term Church

 

 

notifies Avnet that he intends not to renew as described in 1.2 above, Church shall effective June
30, 2005 (the end of the Initial Term) revert to employee at will status (with employment
terminable at any time by either Avnet or Church) and the provision in 1.2 above requiring a
one-year notice shall not apply; and upon a subsequent termination of employment, Church shall be
entitled if otherwise eligible to payments under any then-applicable Avnet severance plan.
Notwithstanding anything to the contrary, in the event Church’s employment is terminated pursuant
to 2.1, 2.2 or 2.3 below, then the one-year notice provided in 1.2 above shall not be applicable
and Church shall not be entitled to any severance pay benefit.

1.5 Other Compensation on Termination. Upon termination of this Agreement, Church shall be
entitled to receive only such compensation as had accrued and was unpaid to the effective date of
termination. If the termination occurs other than at the end of a fiscal year of Avnet, the
compensation payable to Church (including base salary and incentive compensation) shall bear the
same ratio to a full fiscal year’s remuneration as the number of days for which Church shall be
entitled to remuneration bears to 365 days.

1.6 Additional Benefits. In addition to the compensation described in Subsection 1.4, Church
shall be entitled to vacation, insurance, retirement and other benefits (except for severance pay
benefit which the one-year termination notice described above is intended to replace) as are
afforded to personnel of Avnet’s United States based operating units generally and which are in
effect from time to time. It is understood that Avnet does not by reason of this Agreement
obligate itself to provide any such benefits to such personnel. Church waives and releases any
claim he has to participate in the Avnet’s Executive Officers’ Supplemental Life Insurance and
Retirement Benefits Program (the “Program”). In consideration of Church’s waiver and release of
benefits under the Program, Avnet will provide to Church supplemental retirement and life insurance
as described in Exhibit A hereto, which is incorporated herein by reference.

2. Early Termination.

2.1 Church’s employment hereunder shall terminate, at Church’s option and upon a thirty day
written notice to Avnet, in the event that at any time during the term hereof the Avnet’s current
Chief Executive Officer, Roy Vallee vacates, for any reason whatsoever, the position of Chief
Executive Officer.

2.2 Death or Disability. Church’s employment hereunder shall terminate on the date of Church’s
death or upon Church suffering mental or physical injury, illness or incapacity which renders him
unable to perform his customary duties hereunder on a full-time basis for a period of 365
substantially consecutive days, on the 365th such day. The opinion of a medical doctor licensed to
practice in the State of Arizona (or such other state wherein Church then resides) and having Board
certification in his field of specialization or the receipt of or entitlement of Church to
disability benefits under any policy of insurance provided or made available by Avnet or under
Federal Social Security laws, shall be conclusive evidence of such disability.

 

 

2.3 Cause. Church’s employment hereunder may also be terminated by Avnet at any time prior to the
expiration of the term hereof without notice for cause, including, but not limited to, Church’s
gross misconduct, breach of any material term of this Agreement, willful breach, habitual neglect
or wanton disregard of his duties, or conviction of any criminal act.

3. Competitive Employment:

3.1 Full time. Church shall devote his full time, best efforts, attention and energies to the
business and affairs of Avnet and shall not, during the term of his employment, be engaged in any
other activity which, in the sole judgment of Avnet, will interfere with the performance of his
duties hereunder.

3.2 Non-Competition. While employed by Avnet or any subsidiary, division or operating unit of
Avnet, Church shall not, without the written consent of the Chief Executive Officer of Avnet,
directly or indirectly (whether through his spouse, child or parent, other legal entity or
otherwise): own, manage, operate, join, control, participate in, invest in, or otherwise be
connected with, in any manner, whether as an officer, director, employee, partner, investor,
shareholder, consultant, lender or otherwise, any business entity which is engaged in, or is in any
way related to or competitive with the business of Avnet, provided, however, notwithstanding the
foregoing Church shall not be prohibited from owning, directly or indirectly, up to 5% of the
outstanding equity interests of any company or entity the stock or other equity interests of which
is publicly traded on a national securities exchange or on the NASDAQ over-the-counter market.

3.3 Non-Solicitation. Church further agrees that he will not, at any time while employed by Avnet
or any subsidiary, division or operating unit of Avnet and for a period of one year after the
termination of employment with Avnet, without the written consent of an officer authorized to act
in the matter by the Board of Directors of Avnet, directly or indirectly, on Church’s behalf or on
behalf of any person or entity, induce or attempt to induce any employee of Avnet or any subsidiary
or affiliate of Avnet (collectively the “Avnet Group”) or any individual who was an employee of the
Avnet Group during the one (1) year prior to the date of such inducement, to leave the employ of
the Avnet Group or to become employed by any person other than members of the Avnet Group or offer
or provide employment to any such employee.

4. Definitions:

     The words and phrases set forth below shall have the meanings as indicated:

4.1 Confidential Information. That confidential business information of Avnet, whether or not
discovered, developed, or known by Church as a consequence of his employment with Avnet. Without
limiting the generality of the foregoing, Confidential Information shall include information
concerning customer identity, needs, buying practices and patterns, sales and management
techniques, employee effectiveness and compensation

 

 

information, supply and inventory techniques, manufacturing processes and techniques, product
design and configuration, market strategies, profit and loss information, sources of supply,
product cost, gross margins, credit and other sales terms and conditions. Confidential Information
shall also include, but not be limited to, information contained in Avnet’s manuals, memoranda,
price lists, computer programs (such as inventory control, billing, collection, etc.) and records,
whether or not designated, legended or otherwise identified by Avnet as Confidential Information.

4.2 Developments. Those inventions, discoveries, improvements, advances, methods, practices and
techniques, concepts and ideas, whether or not patentabIe, relating to Avnet’s present and
prospective activities and products.

5. Developments, Confidential Information and Related Materials:

5.1 Assignment of Developments. Any and all Developments developed by Church (acting alone or in
conjunction with others) during the period of Church’s employment hereunder shall be conclusively
presumed to have been created for or on behalf of Avnet (or Avnet’s subsidiary or affiliate for
which Church is working) as part of Church’s obligations to Avnet hereunder. Such Developments
shall be the property of and belong to Avnet (or Avnet’s subsidiary or affiliate for which Church
is working) without the payment of consideration therefor in addition to Church’s compensation
hereunder, and Church hereby transfers, assigns and conveys all of Church’s right, title and
interest in any such Developments to Avnet (or Avnet’s subsidiary or affiliate for which Church is
working) and agrees to execute and deliver any documents that Avnet deems necessary to effect such
transfer on the demand of Avnet.

5.2 Restrictions on Use and Disclosure. Church agrees not to use or disclose at any time after
the date hereof, except with the prior written consent of an officer authorized to act in the
matter by the Board of Directors of Avnet, any Confidential Information which is or was obtained or
acquired by Church while in the employ of Avnet or any subsidiary or affiliate of Avnet, provided,
however, that this provision shall not preclude Church from (i) the use or disclosure of such
information which presently is known generally to the public or which subsequently comes into the
public domain, other than by way of disclosure in violation of this Agreement or in any other
unauthorized fashion, or (ii) disclosure of such information required by law or court order,
provided that prior to such disclosure required by law or court order Church will have given Avnet
three (3) business days’ written notice (or, if disclosure is required to be made in less than
three (3) business days, then such notice shall be given as promptly as practicable after
determination that disclosure may be required) of the nature of the law or order requiring
disclosure and the disclosure to be made in accordance therewith.

5.3 Return of Documents. Upon termination of Church’s employment with Avnet, Church shall
forthwith deliver to the Chief Executive Officer of Avnet all documents, customer lists and related
documents, price and procedure manuals and guides, catalogs, records, notebooks and similar
repositories of or containing Confidential Information

 

 

and/or Developments, including all copies then in his possession or control whether prepared by him
or others.

6. Miscellaneous:

6.1 Consent to Arbitration. Except for the equitable relief provisions set forth in Section 6.2
below, Avnet and Church agree to arbitrate any controversy or claim arising out of this Agreement
or otherwise relating to Church’s employment or the termination of employment or this Agreement, in
accordance with the provisions of the Mutual Agreement to Arbitrate Claims, a copy of which is
annexed hereto as Exhibit B.

6.2 Equitable Relief. Church acknowledges that any material breach of any of the provisions of
Sections 3 and/or 5 would entail irreparable injury to Avnet’s goodwill and jeopardize Avnet’s
competitive position in the marketplace or Confidential Information, or both, and that in addition
to Avnet’s other remedies, Church consents and Avnet shall be entitled, as a matter of right,
to an injunction issued by any court of competent jurisdiction restraining any breach of Church
and/or those with whom Church is acting in concert and to other equitable relief to prevent any
such actual, intended or likely breach.

6.3 Survival. The provisions of Sections 3.2, 3.3, 4, 5, and 6 shall survive the termination of
Church’s employment hereunder.

6.4 Interpretation. If any court of competent jurisdiction or duly constituted arbitration panel
shall refuse to enforce any or all of the provisions hereof because they are more extensive
(whether as to geographic scope, duration, activity, subject or otherwise) than is reasonable, it
is expressly understood and agreed that such provisions shall not be void, but that for the purpose
of such proceedings and in such jurisdiction, the restrictions contained herein shall be deemed
reduced or limited to the extent necessary to permit enforcement of such provisions.

6.5 Succession. This Agreement shall extend to and be binding upon Church, his legal
representatives, heirs and distributees and upon Avnet, its successors and assigns.

6.6 Entire Agreement. This Agreement and the Exhibits hereto contain the entire agreement of the
parties with respect to their subject matter and no waiver, modification or change of any
provisions hereof shall be valid unless in writing and signed by the parties against whom such
claimed waiver, modification or change is sought to be enforced.

6.7 Waiver of Breach. The waiver of any breach of any term or condition of this Agreement shall
not be deemed to constitute a waiver of any other term or condition of this Agreement.

6.8 Notices. All notices pursuant to this Agreement shall be in writing and shall be given by
registered or certified mail, or the equivalent, return receipt requested, addressed

 

 

to the parties hereto at the addresses set forth above, or to such address as may hereafter be
specified by notice in writing in the same manner by any party or parties.

	6.9	 	Headings. Except for the headings in Section 4, the headings of the sections and subsections
are inserted for convenience only and shall not be deemed to constitute a part hereof or to
affect the meaning thereof.

IN WITNESS WHEREOF, parties have executed this Agreement effective as of
the day and year first above written.

	 	 	 	 	 	 	 
	 	 	AVNET, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Roy Vallee
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title
	 	Chief Executive Officer	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Steven C. Church	 	 
	 	 	 	 	 
	 	 	STEVEN C. CHURCH	 	 

 

 

Exhibit A

Steven C. Church

Supplemental Life Insurance and Retirement Benefits

Supplemental Life Insurance

In the event of Church’s death while actively employed by Avnet as an Officer, a death benefit
will be paid to his designated beneficiary. The death benefit will be based upon the Church’s Death
Benefit Earnings (as defined herein). In order to fund such death benefit payments and/or other
retirement or disability payments to Church or his designated beneficiary, Avnet may purchase a
life insurance contract on Church’s life and, if it does, will pay all premiums, interest and
surcharges on said contract. As required by law, Church will be taxed on the “economic benefit” of
such insurance coverage each year by way of imputed income being added to Church’s taxable
compensation based on the P.S. 58 cost as indicated on the IRS provided table or the insurance
carrier’s term insurance table (“Imputed Income”).

Avnet will retain all the rights of ownership on any policies of insurance it elects to take on
Church’s life including the right to borrow against that portion of the cash values attributable to
the premiums paid by Avnet. Avnet has the right to require Church to assist in applying for the
insurance policy(ies), including requiring Church to submit to a physical examination. Failure by
Church to assist the Company in obtaining such life insurance may result in Church’s forfeiting his
benefits pursuant to this Exhibit.

Any dividends on such insurance policies may be used by Avnet to purchase additional paid-up
insurance on Church’s life.

Death Benefit Amount

In the event of Church’s death while actively employed by Avnet as an Officer, Avnet will take
whatever action is necessary to ensure that the proceeds of the policy(ies) payable to Church’s
designated beneficiary will be equal to two times the amount of Church’s Death Benefit Earnings (as
defined below). The balance, if any, of the proceeds payable under the policy(ies) shall be paid to
Avnet.

Death Benefit Earnings shall mean the total of Church’s base pay and cash incentive compensation
for the full Avnet fiscal year ending on the day of or preceding Church’s death. For example, the
Death Benefit Earnings used to calculate the death benefit should Church die during (but before the
last day of) Avnet’s fiscal year ending in 2005 (July 4, 2004 — July 2, 2005) is the total
of his base pay and cash incentive earned (accrued not paid) during Avnet’s fiscal year ending on
July 3, 2004.

Termination of Employment

Upon termination of employment, life insurance coverage will cease and Church will not

 

 

have an option to purchase the life insurance policy(ies) which Avnet may have obtained on his
life. Accordingly, if Church dies after termination of employment with Avnet, there will not be any
supplemental life insurance payment upon his death.

Supplemental Retirement and Disability Benefits

If at the time of termination Church has at least 25 years of service with Avnet and has
served as an Executive Officer for at least 10 years, the annual pension benefit payable at age 65
will equal the maximum benefit of 36% of Covered Compensation regardless of age.

Covered Compensation

The amount of retirement benefits will be based upon Church’s Covered Compensation as of his
termination of employment with Avnet. Covered Compensation is equal to Church’s Eligible
Compensation for Avnet’s fiscal years 1999 and 2000. Eligible Compensation is the sum of base pay
plus cash incentive earned (accrued not paid) during the fiscal year.

Years of Service

A Year of Service is credited to Church for each full year that he has worked for Avnet (based on
his anniversary date of hire).

Normal Retirement Benefits

Church will be entitled to receive a monthly pension payment commencing on the first of the month
coincident with or next following his attainment of age 65 or termination of employment, whichever
is later. These payments will be for 10 years (120 monthly payments). In the event Church should
die after termination of employment (at which time the life insurance coverage will cease) and
before receiving all 120 monthly benefit payments, the remaining monthly payments (or all of the
120 monthly payments should he or she die before retirement payments begin) will be paid to
Church’s designated beneficiary. However, no pension payments will be made to a beneficiary if
Church dies before terminating employment with Avnet, because the supplemental life insurance will
be paid as the death benefit.

The annual benefit (to be paid in 12 equal monthly installments at the beginning of each month)
payable at age 65 will be determined by the following formula:

 

 

	 	 	 
	*Age
+ Years of Service at termination X 36% of Covered
Compensation 

	 

	80
	 	 

*Age + years of service ÷ 80 cannot exceed 1 (one)

For example, if Church had at least 5 years of service as an Officer at an age 55 and had 20 Years
of Service on the date he terminated employment with Avnet he would receive a benefit commencing at
age 65 equal to 33.75% of Covered Compensation (age 55 + 20 Years of Service = 75 + 80 X 36% =
33.75%).

Early Retirement Benefits

Church will be entitled to receive a monthly pension payment commencing on the first of the month
coincident with, or any month following, his termination of employment after attainment of age 60.
These payments will be for 10 years (120 monthly payments). In the event Church should die after
termination of employment and before receiving all 120 monthly benefit payments, the remaining
monthly payments (or all of the 120 monthly payments should he die before retirement payments
begin) will be paid to the Church’s designated beneficiary. (As mentioned above, the life insurance
coverage will cease upon Church’s termination of employment.) The annual benefit payable under the
Early Retirement option will be equal to a percentage of the Normal Retirement Benefit; such
percentage will be based upon Church’s age at the time he elects to receive an Early Retirement
Benefit. The percentage will be equal to 100% less 0.25% for each month (3.00% per year) below age
65 that the Participant elects to begin receiving pension benefits. By way of example, a selected
list of percentages is as follows:

	 	 	 	 	 
	Age at Commencement	 	% of Normal
	of Benefit	 	Retirement
	Payments	 	Benefit
	60
	 	 	85.00	%
	61
	 	 	88.00	%
	61 years 5 months
	 	 	89.25	%
	62
	 	 	91.00	%
	63
	 	 	94.00	%
	63 years 9 months
	 	 	96.25	%
	64
	 	 	97.00	%
	65
	 	 	100.00	%

For example, if Church terminated employment with Avnet at age 58 and upon reaching age 62 1/2 he
elected to begin receiving benefits, the benefit to be paid in this example is 92.5% (30 months
prior to age 65 X 0.25% = 7.5%; 100% - 7.5% = 92.5%) of his or her Normal Retirement Benefit.

Lump Sum Options

 

 

If Church has terminated employment with Avnet and is currently receiving pension benefit payments,
or has elected to defer such payments, he will have the option to receive a lump sum payment at any
time after attaining age 70. Church may elect to initially receive monthly payments and to receive
the present value of any remaining payments in a lump sum at any time after attaining age 70. A
lump sum election must be made at least one year before Church’s retirement date and, once made,
the election is irrevocable. Such lump sum payments will be equal to the present value of the
remaining payments due to Church using a 7% annual discount rate.

Distribution of Retirement Benefits

Church will be entitled to receive his Normal Retirement or Early Retirement pension payments, as
applicable, effective as of the first day of the month following his Normal Retirement or Early
Retirement date. However, the actual payment will not be made until Church makes a written request
to the Company, and the Company approves the distribution. If this request occurs after Church’s
Normal Retirement date, Church may elect to receive retroactive payments, with interest at a 7%
annual rate.

Disability Benefit

If Church (1) satisfies the disability eligibility requirements set forth in the Avnet Pension
Plan; (2) terminates employment because of such disability; (3) has not waived the right to receive
the supplemental disability benefit; (4) has not elected the supplemental retirement benefit or the
supplemental early retirement benefit; and (5) has filed for disability under any other Avnet
Pension Plan or other Avnet sponsored disability plan, he will be entitled to an annual
supplemental disability benefit equal to 13% of Church’s Death Benefit Earnings.

Such supplemental disability benefit shall be paid by Avnet in 120 equal and consecutive monthly
installments commencing on the first day of the month following the month Church satisfies the
disability eligibility requirements set forth in the Avnet Pension Plan. If Church receives the
disability benefit described above, he will no longer be eligible to receive the supplemental
retirement benefits described above and the life insurance coverage described above will cease. In
the event Church should die after becoming eligible for disability benefits (at which time the life
insurance coverage will cease) and before receiving all 120 monthly benefit payments, the remaining
monthly payments will be paid to the Church’s designated beneficiary.

Normal Retirement, Early Retirement, or Disability Benefit Guarantees

If Church should die after termination of employment with Avnet, any unpaid installments with
respect to Church’s benefit shall continue to be paid in monthly installments to such person or
entity that Church will have designated, in writing and delivered to Avnet, or if no such
designation is in effect upon Church’s death, to his or her spouse or estate (in that order).

 

 

None of the benefits provided under this Exhibit are assignable, except as may be specifically
required by law.

 

 

EXHIBIT B

MUTUAL AGREEMENT TO ARBITRATE CLAIMS

     I recognize that differences may arise between Avnet, Inc. (“the Company”) and me during or
following my employment with Avnet, and that those differences may or may not be related to my
employment. I understand and agree that by entering into this Agreement to Arbitrate Claims
(“Agreement”). I anticipate gaining the benefits of a speedy, impartial dispute-resolution
procedure.

     Except as provided in this Agreement, the Federal Arbitration Act shall govern the
interpretation, enforcement and all proceedings pursuant to this Agreement. To the extent that the
Federal Arbitration Act is inapplicable, applicable state law pertaining to agreements to arbitrate
shall apply.

     I understand that any reference in this Agreement to Avnet will be a reference also to all
divisions, subsidiaries and affiliates of Avnet. Additionally, except as otherwise provided
herein, any reference to Avnet shall also include all benefit plans; the benefit plans’ sponsors,
fiduciaries, administrators, affiliates; and all successors and assigns of any of them.

CLAIMS COVERED BY THE AGREEMENT

     Avnet and I mutually consent to the resolution by arbitration of all claims or controversies
(“claims”), whether or not arising out of my employment (or its termination), that Avnet may have
against me or that I may have against Avnet or against its officers, directors, employees or agents
in their capacity as such or otherwise. The claims covered by this Agreement include, but are not
limited to, claims for wages or other compensation due; claims for breach of any contract or
covenant (express or implied); tort claims; claims for discrimination and harassment (including,
but not limited to, race, sex, sexual orientation, religion, national origin, age, marital status,
medical condition, handicap or disability); claims for benefits (except where an employee benefit
or pension plan specifies that its claims procedure shall culminate in an arbitration procedure
different from this one); and claims for violation of any federal, state, or other governmental
law, statute, regulation, or ordinance, except claims excluded in the section entitled “Claims Not
Covered by the Agreement.”

     Except as otherwise provided in this Agreement, both Avnet and I agree that neither of us
shall initiate nor prosecute any lawsuit or administrative action (other than an administrative
charge of discrimination) in any way related to any claim covered by this Agreement.

CLAIMS NOT COVERED BY THE AGREEMENT

     Claims I may have for workers’ compensation or unemployment compensation benefits are not
covered by this Agreement.

 

 

     Also not covered are claims by Avnet for injunctive and/or other equitable relief including,
but not limited to, claims for injunctive and/or other equitable relief for unfair competition
and/or the use and/or unauthorized disclosure of trade secrets or confidential information, as to
which I understand and agree that Avnet may seek and obtain relief from a court of competent
jurisdiction.

REQUIRED NOTICE OF ALL CLAIMS AND STATUTE OF LIMITATIONS

     Avnet and I agree that the aggrieved party must give written notice of any claim to the other
party within one (1) year of the date the aggrieved party first has knowledge of the event giving
rise to the claim; otherwise the claim shall be void and deemed waived even if there is a federal
or state statute of limitations which would have given more time to pursue the claim.

     Written notice to Avnet, or its officers, directors, employees or agents, shall be sent to its
President at Avnet’s then-current address. I will be given written notice at the last address
recorded in my personnel file.

     The written notice shall identify and describe the nature of all claims asserted and the facts
upon which such claims are based. The notice shall be sent to the other party by certified or
registered mail, return receipt requested.

DISCOVERY

     Each party shall have the right to take the deposition of one individual and any expert
witness designated by another party. Each party also shall have the right to propound requests for
production of documents to any party. Additional discovery may be had only where the panel of
arbitrators selected pursuant to this Agreement so orders, upon a showing of substantial need.

     At least thirty (30) days before the arbitration, the parties must exchange lists of
witnesses, including any expert, and copies of all exhibits intended to be used at the arbitration.

SUBPOENAS

     Each party shall have the right to subpoena witnesses and documents for the arbitration.

ARBITRATION PROCEDURES

     Avnet and I agree that, except as provided in this Agreement, any arbitration shall be in
accordance with the then-current Model Employment Arbitration Procedures of the American
Arbitration Association (“AAA”) before a panel of three arbitrators who are licensed to practice
law in the state where the arbitration is to take place (“the Panel”).

 

 

The arbitration shall take place in or near the city in which I am or was last employed by Avnet.

     The Panel shall apply the substantive law (and the law of remedies, if applicable) of the
state in which the claim arose, or federal law, or both, as applicable to the claim(s) asserted:
The Federal Rules of Evidence shall apply. The Panel, and not any federal, state, or local court
or agency, shall have exclusive authority to resolve any dispute relating to the interpretation,
applicability, enforceability or formation of this Agreement, including but not limited to any
claim that all or any part of this Agreement is void or voidable. The Panel shall render an award
and opinion in the form typically rendered in labor arbitrations. The arbitration shall be final
and binding upon the parties.

     The Panel shall have jurisdiction to hear and rule on pre-hearing disputes and is authorized
to hold pre-hearing conferences by telephone or in person, as the Panel deems necessary. The Panel
shall have the authority to entertain a motion to dismiss and/or a motion for summary judgment by
any party and shall apply the standards governing such motions under the Federal Rules of Civil
Procedure.

     Either party, at its expense, may arrange for and pay the cost of a court reporter to provide
a stenographic record of proceedings.

ARBITRATION FEES AND COSTS

     Avnet and I shall equally share the fees and costs of the Panel. Each party shall pay for its
own costs and attorneys’ fees, if any. However, if any party prevails on a statutory claim that
affords the prevailing party attorneys’ fees, or if there is a written agreement providing for
fees, the Panel may award reasonable fees to the prevailing party.

INTERSTATE COMMERCE

     I understand and agree that Avnet is engaged in transactions involving interstate commerce and
that my employment involves such commerce.

REQUIREMENTS FOR MODIFICATION OR REVOCATION

     This Agreement to arbitrate shall survive the termination of my employment. It can only be
revoked or modified by a writing signed by me and an officer of Avnet, which specifically states an
intent to revoke or modify this Agreement.

SOLE AND ENTIRE AGREEMENT

     This is the complete agreement of the parties on the subject of arbitration of disputes,
except for any arbitration agreement in connection with any pension or benefit plan. This Agreement
supersedes any prior or contemporaneous oral or written understanding on the subject. No party is
relying on any representations, oral or written, on the subject of the

 

 

effect, enforceability or meaning of this Agreement, except as specifically set forth in this
Agreement.

CONSTRUCTION

     If any provision of this Agreement is adjudged to be void or otherwise unenforceable, in whole
or in part, such adjudication shall not affect the validity of the remainder of the Agreement.

CONSIDERATION

     The promises by Avnet and by me to arbitrate differences, rather than litigate them before
courts or other bodies, provide consideration for each other.

NOT AN EMPLOYMENT AGREEMENT

     This Agreement is not, and shall not be construed to create, any contract of employment,
express or implied. Nor does this Agreement in any way alter the “at-will” status of my employment.

VOLUNTARY AGREEMENT

     I ACKNOWLEDGE THAT I HAVE CAREFULLY READ THIS AGREEMENT, THAT I UNDERSTAND ITS TERMS, THAT ALL
UNDERSTANDINGS AND AGREEMENTS BETWEEN AVNET AND ME RELATING TO THE SUBJENS COVERED IN THE AGREEMENT
ARE CONTAINED IN IT, AND THAT I HAVE ENTERED INTO THE AGREEMENT VOLUNTARILY AND NOT IN RELIANCE ON
ANY PROMISES OR REPRESENTATIONS BY AVNET OTHER THAN THOSE CONTAINED IN THIS AGREEMENT ITSELF.

     I UNDERSTAND THAT BY SIGNING THIS AGREEMENT I AM GIVING UP MY RIGHT TO A
JURY TRIAL.

 

 

I FURTHER ACKNOWLEDGE THAT I HAVE BEEN GIVEN THE OPPORTUNITY TO DISCUSS THIS AGREEMENT WITH MY
PRIVATE LEGAL COUNSEL AND HAVE AVAILED MYSELF OF THAT OPPORTUNITY TO THE EXTENT I WISH TO DO SO.

	 	 	 	 	 	 	 	 	 
	STEVEN C. CHURCH	 	 	 	AVNET, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Steven C. Church
 

	 	 
	 	By
	 	/s/ Roy Vallee
 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Its
	 	Chief Executive Officer	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	July 24, 2004	 	 	 	July 29, 2004	 	 
	 	 	 	 	 	 	 
	Date	 	 	 	Date

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