<PAGE>   1

 
                            SCHEDULE 14A INFORMATION
 
          PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES
                    EXCHANGE ACT OF 1934 (AMENDMENT NO.   )
 
Filed by the Registrant / X /
 
Filed by a Party other than the Registrant / /
 
Check the appropriate box:
 

<TABLE>
<S>                                             <C>
/ /  Preliminary Proxy Statement                / /  Confidential, for Use of the Commission
                                                Only (as permitted by Rule 14a-6(e)(2))
/X/  Definitive Proxy Statement
/ /  Definitive Additional Materials
/ /  Soliciting Material Pursuant to sec.240.14a-11(c) or sec.240.14a-12
</TABLE>

 
                                  AVNET, INC.
- --------------------------------------------------------------------------------
                (Name of Registrant as Specified In Its Charter)
 
- --------------------------------------------------------------------------------
    (Name of Person(s) Filing Proxy Statement, if other than the Registrant)
 
Payment of Filing Fee (Check the appropriate box):
 
/X/  No fee required.
 
/ /  Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
 
     (1)  Title of each class of securities to which transaction applies:
 
     (2)  Aggregate number of securities to which transaction applies:
 
     (3)  Per unit price or other underlying value of transaction computed
          pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the
          filing fee is calculated and state how it was determined):
 
     (4)  Proposed maximum aggregate value of transaction:
 
     (5)  Total fee paid:
 
/ /  Fee paid previously with preliminary materials.
 
/ /  Check box if any part of the fee is offset as provided by Exchange Act Rule
     0-11(a)(2) and identify the filing for which the offsetting fee was paid
     previously. Identify the previous filing by registration statement number,
     or the Form or Schedule and the date of its filing.
 
     (1)  Amount Previously Paid:
 
     (2)  Form, Schedule or Registration Statement No.:
 
     (3)  Filing Party:
 
     (4)  Date Filed:

<PAGE>   2
 
                                       AVNET, INC.
 
                            ----------------------------------
 

                         NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
 
                            ----------------------------------
 
                         TO BE HELD WEDNESDAY, NOVEMBER 20, 1996
 
          TO ALL SHAREHOLDERS OF AVNET, INC.:
 
     NOTICE IS HEREBY GIVEN that the Annual Meeting of Shareholders of AVNET,
INC., a New York corporation ("Avnet"), will be held at The Garden City Hotel,
45 Seventh Street, Garden City, New York 11530, on Wednesday, November 20, 1996
at 10:30 A.M. Eastern Standard Time, for the following purposes:
 
     1. To elect twelve directors to serve until the next Annual Meeting and
        until their successors have been elected and qualified.
 
     2. To consider, approve and adopt the Avnet Deferred Compensation Plan for
        Outside Directors.
 
     3. To consider, approve and adopt the Avnet 1996 Incentive Stock Option
        Plan.
 
     4. To ratify the appointment of Arthur Andersen LLP as independent public
        accountants to audit the books of Avnet for the fiscal year ending June
        27, 1997.
 
     5. To take action with respect to such other matters as may properly come
        before the Annual Meeting or any adjournment thereof.
 
     The Board of Directors has fixed the close of business on October 4, 1996
as the record date for the Annual Meeting. Only holders of shares of Avnet's
Common Stock of record at the close of business on such date shall be entitled
to notice of and to vote at the Annual Meeting or any adjournment thereof.
 
                                                 By Order of the Board of
                                                 Directors
 
                                                 SYLVESTER D. HERLIHY
                                                 Secretary
O
ctober 11, 1996

<PAGE>   3
 
                                  AVNET, INC.
                              80 CUTTER MILL ROAD
                           GREAT NECK, NEW YORK 11021
 
                            ------------------------
 
                                PROXY STATEMENT
                             DATED OCTOBER 11, 1996
 
                            ------------------------
 
                       FOR ANNUAL MEETING OF SHAREHOLDERS
                          TO BE HELD NOVEMBER 20, 1996
 
     This proxy statement is furnished in connection with the solicitation of
proxies by the Board of Directors of Avnet, Inc. ("Avnet") for use at the Annual
Meeting of Shareholders to be held on November 20, 1996, and at any and all
adjournments thereof (the "Annual Meeting"), with respect to the matters
referred to in the accompanying notice. A form of proxy is enclosed herewith.
Any shareholder who executes and returns the proxy in the enclosed return
envelope may revoke such proxy by written notice of revocation, provided it is
received by the Secretary of Avnet at the address set forth above at any time
prior to the Annual Meeting, by submission at such address of another proxy
bearing a later date, or by voting in person at the Annual Meeting. The
approximate date on which this proxy statement and the enclosed form of proxy
are first being sent or given to shareholders is October 11, 1996.
 
     Only holders of outstanding shares of Avnet's Common Stock of record at the
close of business on October 4, 1996 are entitled to notice of and to vote at
the Annual Meeting. Each shareholder is entitled to one vote per share held of
record. The aggregate number of shares of Avnet's Common Stock outstanding (net
of treasury shares) at October 4, 1996 was 43,424,126, comprising all of Avnet's
capital stock outstanding as of that date.

<PAGE>   4
 
                             ELECTION OF DIRECTORS
 
     Twelve directors are to be elected at the Annual Meeting to hold office
until the next
Annual Meeting of Shareholders and until their successors have been elected and
qualified. It is the intention of the persons named in the enclosed form of
proxy to vote each properly signed and returned proxy (unless otherwise directed
by the shareholder executing such proxy) for the election as directors of Avnet
of the twelve persons listed below. Each of such persons has consented to being
named herein and to serve if elected.
 
     Directors will be elected by a plurality of the votes properly cast (in
person or by proxy) at the Annual Meeting. Thus, shareholders who do not vote,
or who withhold their vote from one or more nominees below and do not vote for
another person, will not affect the outcome of the election provided that a
quorum is present at the Annual Meeting. Brokers who hold shares of Common Stock
as nominees will have discretionary authority to vote such shares if they have
not received voting instructions from the beneficial owners by the tenth day
before the Annual Meeting, provided that this proxy statement has been
transmitted to the beneficial owners at least fifteen (15) days before the
Annual Meeting.
 
     All of the nominees were elected directors at the Annual Meeting of
Shareholders held on November 15, 1995. In case any of the nominees below should
become unavailable for election for any presently unforeseen reason, the persons
named in the enclosed form of proxy will have the right to use their discretion
to vote for a substitute or to vote for the remaining nominees and leave a
vacancy on the Board of Directors. Under the By-Laws of Avnet, any such vacancy
may be filled by a majority vote of the directors then in office or by the
shareholders at any meeting thereof. Avnet's By-Laws also empower the Board of
Directors to fix the number of directors from time to time to be in office.
 
                                        2

<PAGE>   5
 
     The information set forth below as to the age, principal occupation during
the past five years and other directorships of each nominee has been furnished
to Avnet by such nominee.
 

<TABLE>
<CAPTION>
                                        YEAR FIRST          PRINCIPAL OCCUPATION DURING
                                        ELECTED A           LAST FIVE YEARS; ALSO OTHER
             NAME               AGE      DIRECTOR      CURRENT PUBLIC COMPANY DIRECTORSHIPS
- ------------------------------  ---     ----------     -------------------------------------
<S>                             <C>     <C>            <C>
Eleanor Baum(a)(b)              56         1994        Dean of the School of Engineering of
                                                       The Cooper Union, New York, NY; also
                                                       a Director of Allegheny Power System
                                                       Corporation and U.S. Trust
                                                       Corporation.
Gerald J. Berkman(a)(b)(c)      70         1989        Retired Senior Partner of Berkman &
                                                       Leff, stock brokers; stock
                                                       specialist, American Stock Exchange.
Joseph F. Caligiuri(b)(c)       68         1992        Executive Vice President (retired
                                                       April 1993) of Litton Industries,
                                                       Inc., a technology-based company
                                                       providing resource exploration
                                                       services, industrial automation
                                                       systems and advanced electronic and
                                                       defense systems to the United States
                                                       and world markets; also a director of
                                                       The Titan Corporation.
Sylvester D. Herlihy            69         1973        Senior Vice President and Secretary
                                                       of Avnet and President of Avnet's
                                                       Channel Master division.
</TABLE>

 
- ---------------
 
(a) Member of the Audit Committee.
 
(b) Member of the Executive Committee.
 
(c) Member of the Executive Incentive and Compensation Committee.
 
                                        3

<PAGE>   6
 

<TABLE>
<S>                             <C>     <C>            <C>
Ehud Houminer(a)(b)             56         1993        Professor and Executive-in-Residence
                                                       at Columbia Business School, Columbia
                                                       University, New York, NY and (since
                                                       January 1996) a principal of Lear,
                                                       Yavitz and Associates, a management
                                                       consulting firm; previously an
                                                       executive of Philip Morris Companies
                                                       Inc., and consultant to Bear, Stearns
                                                       & Co., Inc. (February 1992 through
                                                       March 1995); also a director of
                                                       various Dreyfus mutual funds, Five
                                                       Stars Food Service Inc., and W&H
                                                       Gidden Ltd. (London, England).
Leon Machiz(b)(d)               72         1968        Chairman of the Board and Chief
                                                       Executive Officer of Avnet.
Salvatore J. Nuzzo(a)(b)(c)(d)  65         1982        Chairman and CEO (since May 1996) of
                                                       Datron Inc., a manufacturer of
                                                       aerospace and defense products;
                                                       Chairman of the Board (since March
                                                       1994) of Marine Mechanical Corp., a
                                                       manufacturer of defense products;
                                                       also Chairman of the Board and
                                                       director of SL Industries, Inc., a
                                                       manufacturer of
                                                       industrial/communications products;
                                                       prior to March 1994, Chairman of the
                                                       Board (from March 1991) and Chief
                                                       Executive Officer (from March 1991
                                                       until December 1992) of Technautics
                                                       Corporation, a manufacturer of
                                                       defense/aerospace products.
</TABLE>

 
- ---------------
 
(a) Member of the Audit Committee.
 
(b) Member of the Executive Committee.
 
(c) Member of the Executive Incentive and Compensation Committee.
 
(d) Member of the Nominating Committee.
 
                                        4

<PAGE>   7
 

<TABLE>
<S>                             <C>     <C>            <C>
Frederic Salerno(b)(c)(d)       53         1993        Director and Vice Chairman of the
                                                       Board of NYNEX Corporation, a
                                                       telecommunications company (from
                                                       March 1991); President of NYNEX
                                                       Corporation's Worldwide Services
                                                       Group (from March 1991 to March
                                                       1994); also a Director of Bear,
                                                       Stearns & Co., Inc., Telecom Asia (an
                                                       affiliate of NYNEX),Viacom Inc.,
                                                       Orange and Rockland Utilities, Inc.
                                                       and Avenor, Inc.
David Shaw                      70         1990        Consultant to Avnet; previously
                                                       Senior Vice President (retired since
                                                       June 1993) of Avnet and an executive
                                                       officer of Avnet's Electronic
                                                       Marketing Group.
Roy Vallee(b)(d)                44         1991        Vice Chairman of the Board of Avnet
                                                       (since November 1992) and President
                                                       and Chief Operating Officer of Avnet
                                                       (since March 1992); prior thereto,
                                                       Senior Vice President of Avnet and
                                                       President of Avnet's Hamilton/Avnet
                                                       Electronics division.
</TABLE>

 
- ---------------
 
(b) Member of the Executive Committee.
 
(c) Member of the Executive Incentive and Compensation Committee.
 
(d) Member of the Nominating Committee.
 
                                        5

<PAGE>   8
 

<TABLE>
<S>                             <C>     <C>            <C>
Keith Williams                  48         1994        Senior Vice President of Avnet (since
                                                       November 1993) and President of
                                                       Avnet's International Electronic
                                                       Marketing Group (since February
                                                       1994); prior thereto, Director of
                                                       International Operations for Avnet's
                                                       Electronic Marketing Group (from
                                                       October 1993 to February 1994), Vice
                                                       President of Avnet (from November
                                                       1992 to November 1993), President and
                                                       Managing Director of Avnet's European
                                                       Electronic Marketing Group (from
                                                       November 1992 until October 1993) and
                                                       Manager of Avnet's European
                                                       Operations (from July 1991 to
                                                       November 1992).
Frederick S. Wood(a)(b)(c)(d)   68         1992        Consultant to General Dynamics
                                                       Corporation, a supplier to the United
                                                       States Defense Department and the
                                                       aerospace industry.
</TABLE>

 
- ---------------
 
(a) Member of the Audit Committee.
 
(b) Member of the Executive Committee.
 
(c) Member of the Executive Incentive and Compensation Committee.
 
(d) Member of the Nominating Committee.
 
                                        6

<PAGE>   9
 
THE BOARD OF DIRECTORS AND CERTAIN OF ITS COMMITTEES
 
     Avnet's Board of Directors held six meetings during fiscal 1996: the annual
organizational meeting (which occurs shortly after the Annual Meeting of
Shareholders) and five regularly scheduled meetings. The Board of Directors has
appointed committees, including an Audit Committee, an Executive Incentive and
Compensation Committee, a Nominating Committee and an Executive Committee, to
carry out certain particular responsibilities.
 
     The Audit Committee is charged with maintaining communication between the
full Board and Avnet's independent public accountants, reviewing the status of
the annual audit prior to its completion and determining the nature and extent
of any problems warranting consideration by the full Board, reviewing any
disagreements that have not been resolved to the satisfaction of both management
and the independent public accountants, evaluating the adequacy and
effectiveness of Avnet's internal accounting controls and reporting to the full
Board with respect thereto. The Audit Committee also reviews quarterly financial
statements. The Audit Committee met eight times in fiscal 1996.
 
     The Executive Incentive and Compensation Committee administers Avnet's
stock option plans and incentive stock program and is responsible for reviewing
and approving compensation of the Chief Executive Officer, the four other most
highly paid executives and other executives whose total cash compensation is
greater than $500,000 per year. The Executive Incentive and Compensation
Committee met three times in fiscal 1996.
 
     The Nominating Committee is charged with considering, screening and
recommending to the Board of Directors appropriate candidates for nomination to
be elected and/or re-elected as directors of Avnet by the shareholders of Avnet
or for election by the Board of Directors between shareholder meetings. The
Nominating Committee will consider other recommendations only from persons
solicited by the Committee. The Nominating Committee met once in fiscal 1996.
 
     The Executive Committee is charged with the authority of the full Board
and, between meetings of the Board, is authorized to exercise the powers of the
Board in the management of the business affairs of Avnet subject to limitations
prescribed by law. The Executive Committee met four times in fiscal 1996.
 
     During fiscal 1996, each incumbent director attended at least 75% of the
combined number of meetings of the Board and of the committees (if any) on which
such director
 
                                        7

<PAGE>   10
 
served, with the exceptions of Joseph E. Caligiuri, Sylvester D. Herlihy,
Frederic Salerno and Howard Stein. (Mr. Stein is not standing for re-election.)
 

COMPENSATION OF DIRECTORS
 
     Directors of Avnet who are also officers or employees of Avnet do not
receive special or additional remuneration for service on the Board of Directors
or any of its committees. Each non-employee director other than Mr. Shaw
receives an annual retainer fee of $15,000 for serving on the Board, an annual
retainer fee of $3,000 for each committee on which he or she serves, and an
additional $3,000 for each committee on which he or she serves as chairman. The
maximum aggregate annual fee for a non-employee director is $24,000. Each non-
employee director other than Mr. Shaw is also paid $1,000 per meeting for each
meeting of the Board attended by such director. In addition, under the Outside
Directors' Stock Bonus Plan, non-employee directors other than Mr. Shaw are
awarded 250 shares of Avnet Common Stock upon their re-election each year to a
maximum of 1,000 shares during the four-year term of the plan. In July 1996 the
Board of Directors adopted, subject to shareholder approval at the Annual
Meeting, the Avnet Deferred Compensation Plan for Outside Directors (the
"Deferred Compensation Plan"). The Deferred Compensation Plan will permit
non-employee directors of Avnet to defer, in the form of cash or Avnet Common
Stock equivalent units, all or any portion of their retainer and committee fees
beginning in January 1997. A detailed description of the Deferred Compensation
Plan is set forth on pages 24 to 27.
 
     In July 1996, the Board of Directors voted to terminate the Retirement Plan
for Outside Directors of Avnet, Inc. (the "Retirement Plan") with respect to
outside directors elected for the first time after May 21, 1996. Therefore,
while members of the Board of Directors as of May 21, 1996 are still entitled to
accrue benefits under the Retirement Plan, Board members elected for the first
time thereafter will not be eligible to participate in the Retirement Plan. The
Retirement Plan provides retirement income for eligible directors who are not
officers, employees or affiliates (except by reason of being a director) of
Avnet (the "Outside Directors"). The Retirement Plan entitles any eligible
Outside Director who has completed six years or more of active service to an
annual cash retirement benefit equal to the annual retainer fee (including
committee fees) during the Outside Director's last year of active service,
payable in equal monthly installments for a period of from two to ten years,
depending on length of service, with payments beginning on the date which is the
later of
 
                                        8

<PAGE>   11
 
such director's 65th birthday or his or her retirement date. The Retirement Plan
also provides for automatic retirement of Outside Directors at age 72 or, in the
case of Outside Directors serving on the Board on the Retirement Plan's
effective date, July 1, 1992, age 75. The surviving spouse of any deceased
Outside Director is entitled to 50% of any remaining unpaid retirement benefit.
 
     On July 1, 1996, Avnet entered into an amendment to its consulting
agreement dated July 1, 1993 with David Shaw. The agreement, as amended, expires
on June 30, 1998 and provides that Mr. Shaw will be paid $50,000 per annum for
performing consulting and advisory services for Avnet. In addition, Mr. Shaw
will receive certain medical insurance benefits. The agreement restricts Mr.
Shaw during its term from providing services to or acquiring a ten percent (10%)
or more interest in any business competitive with Avnet in the electronic
distribution business or with any of Avnet's suppliers which also sells products
to Avnet's competitors or any representative firm which represents Avnet and
also represents any of Avnet's competitors.
 
SECURITY OWNERSHIP OF MANAGEMENT AND OTHERS
 
     The following table sets forth information with respect to the Avnet Common
Stock beneficially owned at August 31, 1996 by each director of Avnet and by
each of the executive officers named in the Summary Compensation Table set forth
on page 12 (in each case, the number of shares represent less than 1% of Avnet's
outstanding Common Stock), and by all directors and executive officers as a
group. Except where specifically noted in the table, all the shares listed for a
person or the group are directly held by such person or group members, with sole
voting and dispositive power. The table includes shares owned by (i) spouses,
minor children and certain relatives, (ii) trusts, custodianships and other
entities as to which the persons have the power to direct the voting or
disposition of securities. The table also includes shares covered by stock
options which have or will first become exercisable through December 31, 1996;
it does not reflect undelivered awards of restricted stock under the Avnet
Incentive Stock Program or the Outside Directors' Stock Bonus Plan.
 
                                        9

<PAGE>   12
 

<TABLE>
<CAPTION>
                                                                     AMOUNT AND NATURE
                                                                       OF BENEFICIAL
                              NAME                                       OWNERSHIP
- -----------------------------------------------------------------  ----------------------
<S>                                                                <C>      <C>
Eleanor Baum.....................................................      650
Gerald J. Berkman................................................    5,000
Joseph F. Caligiuri..............................................    1,750  (T,S)
Steven C. Church.................................................    1,825
                                                                    25,250  (O)
Sylvester D. Herlihy.............................................   23,565
                                                                     5,000  (O)
Ehud Houminer....................................................    2,500
Leon Machiz......................................................   72,084
                                                                    10,614  (S)
                                                                   200,000  (O)
Salvatore J. Nuzzo...............................................    3,500
Frederic Salerno.................................................      500
David Shaw.......................................................   35,000
Joseph W. Semmer.................................................    1,265
                                                                    26,253  (T,S)
                                                                    36,544  (O)
Howard Stein.....................................................    3,250
Roy Vallee.......................................................    1,149
                                                                     4,690  (T,S)
                                                                   146,200  (O)
Keith Williams...................................................    1,146
                                                                    28,750  (O)
Frederick S. Wood................................................    1,000  (T)
Directors and Executive Officers as a Group (28 persons).........  192,900
                                                                     1,000  (T)
                                                                    32,693  (T,S)
                                                                    30,021  (S)
                                                                   614,828  (O)
                                                                   -------
                                                                   871,442  [2.01% of the
                                                                            outstanding]
</TABLE>

 
- ---------------
 
(T) Shares owned by trusts and other entities as to which the person has the
    power to direct voting and investment.
(S) Shares as to which the person shares voting and investment power with
    others.
(O) Shares issuable upon exercise of stock options.
 
                                       10

<PAGE>   13
 
     Avnet knows of no person or group which beneficially owns more than 5% of
the outstanding shares of Avnet Common Stock.
 
     Section 16(a) Beneficial Ownership and Reporting Compliance
 
     Pursuant to Section 16(a) of the Securities Exchange Act of 1934, Avnet's
directors, executive officers and beneficial owners of more than 10% of the
outstanding Common Stock are required to file reports with the Securities and
Exchange Commission, the New York Stock Exchange and the Pacific Stock Exchange
concerning their ownership of and transactions in Avnet Common Stock; such
persons are also required to furnish Avnet with copies of such reports. Based
solely on the reports and related information furnished to Avnet, Avnet believes
that in fiscal 1996 all such filing requirements were complied with in a timely
manner by all directors and executive officers.
 
                                       11

<PAGE>   14
 
COMPENSATION OF AVNET MANAGEMENT
 
     The following table sets forth information concerning the total
compensation during Avnet's last three fiscal years of its Chief Executive
Officer and its four other executive officers who had the highest individual
aggregates of salary and bonus during Avnet's fiscal year ended June 28, 1996:
 
                           SUMMARY COMPENSATION TABLE
 

<TABLE>
<CAPTION>
                                                                 LONG-TERM COMPENSATION
                                                                 -----------------------
                                         ANNUAL COMPENSATION     RESTRICTED   SECURITIES
          NAME AND            FISCAL   -----------------------     STOCK      UNDERLYING      ALL OTHER
     PRINCIPAL POSITION        YEAR      SALARY       BONUS      AWARDS(1)    OPTIONS(#)   COMPENSATION(2)
- ----------------------------  ------   ----------   ----------   ----------   ----------   ---------------
<S>                           <C>      <C>          <C>          <C>          <C>          <C>
Leon Machiz,................   1996    $1,000,000   $1,160,000    $205,000           --        $ 8,932
  Chairman of the Board and    1995     1,000,000      660,000     146,500      100,000          8,097
  Chief Executive Officer      1994     1,000,000      250,000     135,188      100,000         91,553
Roy Vallee,.................   1996       600,000      724,000     141,040       25,000            953
  Vice Chairman, President
    and                        1995       500,000      364,000     100,792      100,000         33,946
  Chief Operating Officer      1994       500,000      200,000      96,563       50,000            786
Steven C. Church,...........   1996       300,000      241,229      76,875       15,000            920
  Senior Vice President        1995       250,000      249,481      54,938           --            485
                               1994       125,000      136,054      15,450       30,000             --
Keith Williams,.............   1996       317,337      164,734      35,875       15,000         46,801
  Senior Vice President        1995       268,308      200,758      24,612       10,000         45,172
                               1994       198,574      123,279      19,313       15,000         31,119
Joseph W. Semmer,*..........   1996       315,000      186,790      33,825        7,500         42,558
  Senior Vice President        1995       315,000      172,876      14,650       10,000          5,616
                               1994       240,000      300,000          --       32,169            448
</TABLE>

 
- ---------------
 
* Retired June 29, 1996.
 
(1) The dollar values of the restricted stock awards shown in this table are
    based on the closing price of a share of Avnet Common Stock on the date on
    which the restricted stock awards were made. The number of shares of
    restricted stock awarded to each person named in the table during fiscal
    year 1996 was as follows: Mr. Machiz -- 4,000 shares; Mr. Vallee -- 2,752
    shares; Mr. Church -- 1,500 shares; Mr. Williams -- 700 shares; and Mr.
    Semmer -- 660 shares. These restricted shares vested and will vest in four
    equal installments in January 1996, 1997, 1998 and 1999. A holder of
    undelivered restricted stock awards is not entitled to receive dividends
    paid on, or to any other rights of a shareholder with respect to, the Avnet
    Common Stock underlying such awards. The
 
                                       12

<PAGE>   15
 
    aggregate number of shares of allocated but undelivered restricted stock at
    Avnet's 1996 fiscal year-end (June 28, 1996) and the value of such shares
    (based on the closing price of a share of Avnet Common Stock on that date)
    are as follows: Mr. Machiz -- 5,875 shares ($247,484); Mr. Vallee -- 4,065
    shares ($171,238); Mr. Church -- 1,975 shares ($83,197); Mr. Williams -- 986
    shares ($41,535); and Mr. Semmer -- 695 shares ($29,277).
 
(2) Consists of premiums paid by Avnet for the insurance benefits to the persons
    named in the table under the executive life insurance program described on
    page 16 except that in the case of Mr. Machiz, the figure for 1994 includes
    $84,218 for the accrual for the post-employment benefit payable to him under
    the terms of his employment contract described on pages 16-17; in the case
    of Mr. Vallee, the figure for 1995 includes the payment of $33,077 made in
    fiscal 1995 in respect of accrued but unused vacation; in the case of Mr.
    Williams, the figure includes the employer contribution to the Avnet EMG
    Ltd. Retirement and Death Benefit Plan amounting to $45,797, $44,561 and
    $30,576 in fiscal years 1996, 1995 and 1994, respectively; in the case of
    Mr. Semmer, the figure for 1996 includes the payment of $36,346 made in
    respect of accrued but unused vacation.
 
     OPTIONS
 
     The following table sets forth information concerning grants of stock
options during Avnet's fiscal year ended June 28, 1996 to each of Avnet's
executive officers named in the Summary Compensation Table:
 
                       OPTION GRANTS IN LAST FISCAL YEAR
 

<TABLE>
<CAPTION>
                                        INDIVIDUAL GRANTS
                   ------------------------------------------------------------
                   NUMBER OF       TOTAL
                   SECURITIES     OPTIONS                                           POTENTIAL REALIZABLE VALUE AT
                   UNDERLYING   GRANTED TO                 MARKET                   ASSUMED ANNUAL RATES OF STOCK
                    OPTIONS      EMPLOYEES    EXERCISE    PRICE ON                   APPRECIATION FOR OPTION TERM
                    GRANTED         IN        PRICE PER   DATE OF    EXPIRATION    --------------------------------
       NAME          (#)(1)     FISCAL YEAR     SHARE      GRANT        DATE          0%         5%          10%
- ------------------ ----------   -----------   ---------   --------   ----------    --------   ---------   ---------
<S>                <C>          <C>           <C>         <C>        <C>           <C>        <C>         <C>
Leon Machiz.......       --          --             --         --            --          --           --          --
Roy Vallee........   25,000         6.4%       $ 28.00     $51.81     9/25/2005    $595,250   $1,409,950  $2,659,875
Steven C. Church..   15,000         3.9          47.00      47.00    11/14/2005          --      443,445   1,123,770
Keith Williams....   15,000         3.9          47.00      47.00    11/14/2005          --      443,445   1,123,770
Joseph W. Semmer..    7,500         1.9          47.00      47.00    11/14/2005          --      221,723     561,885
</TABLE>

 
                                       13

<PAGE>   16
 
- ---------------
 
(1) All of the options granted become exercisable in four cumulative
    installments on each of the first through fourth anniversary dates of the
    date of grant.
 
     The following table sets forth information concerning exercises of stock
options during fiscal 1996 by each of Avnet's executive officers named in the
Summary Compensation Table and the number and value of options held by them at
fiscal year end:
 
                   AGGREGATED OPTION EXERCISES IN LAST FISCAL
                     YEAR AND FISCAL YEAR-END OPTION VALUES
 

<TABLE>
<CAPTION>
                                                                                          VALUE OF UNEXERCISED
                                                            NUMBER OF SECURITIES              IN-THE-MONEY
                                SHARES                     UNDERLYING UNEXERCISED           OPTIONS AT FISCAL
                              ACQUIRED ON                OPTIONS AT FISCAL YEAR END            YEAR-END(1)
                               EXERCISE       VALUE      ---------------------------   ---------------------------
            NAME                  (#)        REALIZED    EXERCISABLE   UNEXERCISABLE   EXERCISABLE   UNEXERCISABLE
- ----------------------------  -----------   ----------   -----------   -------------   -----------   -------------
<S>                           <C>           <C>          <C>           <C>             <C>           <C>
Leon Machiz.................     50,000     $1,950,000     175,000        125,000      $ 2,925,000     $ 375,000
Roy Vallee..................         --             --     121,200        125,000        1,802,288       939,063
Steven C. Church............         --             --      18,000         31,000          170,000       142,500
Keith Williams..............      5,000        163,450      18,750         31,250          209,219       170,157
Joseph W. Semmer............         --             --      34,669         15,000          823,085        45,000
</TABLE>

 
- ---------------
 
(1) Value of unexercised options is the difference between the aggregate market
    value of the underlying shares (based on the average of the high and low
    prices on June 28, 1996 of $42.75 per share) and the aggregate exercise
    price for such shares.
 
RETIREMENT BENEFITS AND INSURANCE POLICIES
 
     The Avnet Pension Plan ("Pension Plan") is a defined benefit plan which
covers most United States employees of Avnet, including each of the executive
officers named in the Summary Compensation Table except for Mr. Williams who is
covered by the Avnet EMG Ltd. Retirement and Death Benefit Plan, a defined
contribution plan. The Pension Plan provides defined benefits including a cash
balance feature whereby a participant accumulates a cash balance benefit based
upon a percentage of salary and interest credits which varies with age. The
accumulated cash balance benefit is approximately equal to the actuarial present
value of a deferred annuity benefit determined by aggregating 2% of pensionable
remuneration for each year of credited service. In general, pensionable
remuneration includes base salary, commissions, royalties, cash incentive
compensation and contractual
 
                                       14

<PAGE>   17
 
deferred compensation. No benefit is accrued under the Pension Plan in respect
of remuneration exceeding $100,000 in any year. There is no direct deduction
under the Pension Plan for social security or other benefits.
 
     The following table sets forth estimated annual retirement benefits payable
under the Pension Plan for each of the executive officers of Avnet named in the
Summary Compensation Table, assuming that (i) each such executive officer
currently under age 65 retires at age 65, (ii) current pensionable remuneration
for each such executive officer remains unchanged until retirement, (iii)
benefits under the Pension Plan are not altered prior to retirement and (iv) all
actuarial costs and expenses of the Pension Plan are paid by the Pension Plan:
 

<TABLE>
<CAPTION>
                                                                ESTIMATED
                                                                  ANNUAL
                                                            RETIREMENT BENEFIT
                                                            ------------------
    <S>                                                     <C>
    Leon Machiz...........................................       $  4,070(1)
    Roy Vallee............................................         77,340
    Steven C. Church......................................         46,000
    Keith Williams........................................             --
    Joseph W. Semmer......................................          6,071(2)
</TABLE>

 
- ---------------
 
(1) This is Mr. Machiz's actual annual benefit accrual as of June 28, 1996.
    During fiscal year 1995, Mr. Machiz received a lump-sum payment of
    $1,229,248 representing the present value of his accrued retirement benefit
    at December 31, 1994, which payment was made pursuant to Section
    401(a)(9)(C) of the Internal Revenue Code of 1986, as amended.
 
(2) This is Mr. Semmer's actual benefit accrued through his June 29, 1996 date
    of retirement.
 
     Avnet pays the premiums in respect of an executive life insurance program
which provides for: (1) payment of a death benefit to the designated beneficiary
of each participating officer in an amount equal to twice the yearly earnings
(including salary and incentive compensation) of such officer, up to a maximum
benefit of $1,000,000; (2) payment to Avnet, upon the death of a participating
officer, of the amount by which the benefit payable by the insurer under the
particular policy exceeds the death benefit payable to such officer's
beneficiary; (3) an option for each participating officer, upon termination of
 
                                       15

<PAGE>   18
 
his or her employment, either to buy such officer's policy from Avnet or to
receive from Avnet a supplemental retirement benefit (if the officer has
satisfied certain age and service requirements) payable annually to such officer
or his or her beneficiary for ten years in an amount equal to 36% of the
officer's maximum eligible compensation, such retirement benefit not to exceed
$180,000 per year; and (4) payment to Avnet upon the death of an officer who
elects to receive supplemental retirement benefits of the full amount payable by
the insurer under the particular policy.
 
     As permitted by Section 726 of the Business Corporation Law of New York,
Avnet has in force directors' and officers' liability insurance and corporate
reimbursement insurance, written by Federal Insurance Company (a Chubb Company),
by Columbia Casualty Co. and by National Union Insurance Company, for the
one-year period which commenced on August 1, 1996 at a total cost of $446,000.
The policy insures Avnet against losses from claims against its directors and
officers when they are entitled to indemnification by Avnet, and insures Avnet's
directors and officers against certain losses from claims against them in their
official capacities. All duly elected directors and officers of Avnet are
covered under this insurance.
 
EMPLOYMENT CONTRACTS
 
     In June 1996, Avnet entered into a restated employment agreement (the
"Agreement") with Leon Machiz (Chairman of the Board and Chief Executive Officer
of Avnet) which consolidated and restated Mr. Machiz's employment agreement as
extended by employment extension agreements dated November 29, 1993 and June 1,
1995. Under the terms of the Agreement which expires on June 26, 1998 (subject
to earlier termination by Mr. Machiz as described below) Mr. Machiz is to
receive an annual base salary of $1,000,000 and additional compensation per year
equal to $5,000 for each one cent by which Avnet's net earnings per share
(before unusual and/or infrequent items) for that year on a fully-diluted basis
exceed $2.00 (with a fixed amount equal to the greatest of (i) $250,000, (ii)
the average of the incentive compensation earned in the preceding two fiscal
years or (iii) incentive compensation paid to Mr. Machiz for the full fiscal
year completed most recently prior to the date of consummation, in the event of
a business combination transaction which makes it impracticable to calculate
Avnet's net earnings). Such additional compensation as shown in the bonus column
of the Summary Compensation Table was $1,160,000 in fiscal 1996 based on Avnet's
fiscal 1996 earnings of $4.32 per share (on a fully-
 
                                       16

<PAGE>   19
 
diluted basis) as adjusted to exclude the effect on net earnings of the amount
accrued in fiscal 1996 for Mr. Machiz's incentive compensation. Mr. Machiz has
the right to terminate his full-time employment if a majority of the Board of
Directors of Avnet shall be elected by any single person, entity or group which
owns or controls voting rights to a majority of Avnet's then outstanding stock.
In addition, Mr. Machiz will be retained as a consultant and advisor to Avnet,
at an annual salary of $250,000, (i) for a period of five years, if Mr. Machiz
exercises his above-mentioned right to terminate his full-time employment, or
(ii) for so much of the period from June 27, 1998 to June 26, 2003, during which
he is not employed full-time by Avnet. Avnet has also agreed that (i) if Mr.
Machiz becomes permanently and totally disabled during the period of his
full-time employment, he will be paid by Avnet for the balance of his lifetime
an annual disability benefit of $350,000, and (ii) if Avnet ceases to use his
services as an employee at a time when Mr. Machiz is not disabled, Avnet will
pay to him for the balance of his lifetime (or to his estate in the event of his
death) an annual post-employment benefit of $100,000 (in the event of his death
a minimum of $1,000,000) plus certain medical and (if applicable) life insurance
benefits.
 
     Pursuant to his employment agreement with Avnet which expires on June 26,
1998, Roy Vallee (Vice Chairman, President and Chief Operating Officer of Avnet)
receives an annual base salary of $600,000 and additional compensation per year
equal to (i) $1,000 for each one cent by which Avnet's net earnings per share
(before unusual and/or infrequent items) on a fully-diluted basis for that year
exceed $1.00 and are less than or equal to $2.00, plus (ii) $2,000 for each one
cent by which Avnet's net earnings per share (before unusual and/or infrequent
items) on a fully-diluted basis for that year exceed $2.00 and are less than or
equal to $3.00, plus (iii) $3,000 for each one cent by which Avnet's net
earnings per share (before unusual and/or infrequent items) on a fully-diluted
basis for that year exceed $3.00 and are less than or equal to $4.00, plus (iv)
$4,000 for each one cent by which Avnet's net earnings per share (before unusual
and/or infrequent items) on a fully-diluted basis for that year exceed $4.00 and
are less than or equal to $5.00, plus (v) $5,000 for each one cent by which
Avnet's net earnings per share (before unusual and/or infrequent items) on a
fully-diluted basis for that year exceed $5.00. Avnet has also agreed that (i)
if Mr. Vallee becomes permanently and totally disabled on or prior to June 26,
1998, he will be paid by Avnet through the earlier of the date of cessation of
such disability or his death an annual disability benefit of $250,000. Avnet has
the option to retain Mr. Vallee as a consultant for up to twenty-four
consecutive months immediately following the termination of the contract
 
                                       17

<PAGE>   20
 
or his employment with Avnet, during which time he will be compensated at a rate
equal to the average of the base and incentive compensation earned by him during
the twelve-month period immediately preceding his termination as an employee.
Mr. Vallee may terminate his contract if someone other than Leon Machiz becomes
Chairman and Chief Executive Officer of Avnet. In addition, pursuant to the
contract, Mr. Vallee was granted in fiscal 1996, 25,000 options at an exercise
price of $28.00.
 
     Mr. Joseph Semmer, a senior vice president of Avnet, retired from Avnet as
of June 29, 1996, and his employment agreement with Avnet was terminated. In
fiscal 1996 pursuant to that agreement, Mr. Semmer received an annual base
salary of $240,000 and additional salary and cash bonus of $261,790. Mr. Semmer
continues to serve as a consultant to Avnet pursuant to an agreement which
expires on February 28, 2002 and provides that for such services he will receive
$180,000 in fiscal 1997 and lesser amounts thereafter. The agreement restricts
Mr. Semmer until February 28, 2002 from providing services to or acquiring a 5%
or more interest in any business competitive with Avnet or related to the
distribution of electonic components or computer systems.
 
     Pursuant to his employment agreement with Avnet EMG Ltd. ("EMG") Mr.
Williams' employment may be terminated by either Mr. Williams or EMG on three
years prior written notice except that EMG may terminate his employment without
notice for cause. In the event Mr. Williams fails to give three years' notice of
termination, for a period of one year after such termination, Mr. Williams may
not perform services for or acquire an equity interest of 5% or more in any
company competitive with EMG or Avnet or any other Avnet affiliate in the United
Kingdom or any other country with respect to which Mr. Williams rendered
services within the previous twelve months. Mr. Williams' employment agreement
does not fix the amount of his base salary or annual incentive compensation.
 
C
OMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION
 
     In accordance with the Company's By-Laws, the Executive Incentive and
Compensation Committee of the Board of Directors (the "Committee") is
responsible for reviewing and approving compensation of the Chief Executive
Officer, the four other most highly paid executives and other executives whose
total cash compensation is greater than $500,000 per year. In addition, the
Committee also sets the policy for, administers and determines all
 
                                       18

<PAGE>   21
 
allocations and awards made to Avnet executives under Avnet's long-term
compensation plans. All eligible Company employees, including executive
officers, may participate in Avnet's long-term compensation plans. All members
of the Committee are non-employee directors unaffiliated with management.
 
     Executive compensation consists of three components -- base salary, annual
incentive compensation (bonus) and long-term incentive compensation.
 
     The base salary of each of the Company's executive officers earning
$500,000 or less per year is set annually by such officer's immediate supervisor
with the approval of the Chief Executive Officer and the President. The base
salaries of the Chief Executive Officer, the four other most highly compensated
executives and other executives earning greater than $500,000 are determined by
the Committee. Base salaries are influenced by a variety of objective and
subjective factors. Particular consideration is given to the range of
compensation levels for officers of other companies in the electronic
distribution industry including, but not limited to, the peer group used in the
performance graph appearing on page 23 and companies of similar size to Avnet in
a broader range of businesses. There is no precise formula used to set base
compensation, and base compensation levels may fall above or below average
compensation levels of comparable companies depending upon the management and
leadership abilities, level of responsibility and performance of the particular
executive.
 
     In addition to base salary, most executive officers receive annual
incentive compensation. For most executive officers, annual incentive
compensation is based on the annual net before tax income ("NBTI") objective of
the business units for which such executives are responsible. For each such
executive, an annual target incentive compensation is set. A numerical factor
("multiplier") is determined by dividing the executive's annual incentive target
by the target NBTI of the applicable business unit. The unit's actual NBTI is
then multiplied by the multiplier to yield the executive's incentive
compensation. Some executives' annual target incentive compensation includes,
either as an additional component or as the sole component, a fixed sum payable
upon his or her achievement of one or more goals stated as Management By
Objectives, or MBOs, set annually for each such executive.
 
     Long-term incentive compensation awards are based on the executive's
performance in a particular fiscal period. The Company awards long-term
incentive compensation pursuant to three shareholder-approved incentive
compensation plans: the Avnet Incentive Stock
 
                                       19

<PAGE>   22
 
Program, the 1990 Stock Option Plan, which is an incentive stock option plan,
and the 1995 Stock Option Plan, which is a non-qualified stock option plan.
 
THE AVNET INCENTIVE STOCK PROGRAM
 
     The current version of the Avnet Incentive Stock Program (the "Program")
was adopted in 1994. The basic framework of the Program provides for annual
allocations of restricted shares of the Company's common stock to selected
employees of the Company, including executive officers. The Committee makes
allocations under the Program in recognition of operating results achieved by
the Company as a whole or by particular operating groups or subdivisions in an
immediate past fiscal period. Restricted shares allocated under the Program vest
in four annual installments, contingent upon continued employment (except in the
case of death or retirement of the employee) and subject to acceleration in
certain instances in the discretion of the Committee. The Program sets no limits
on the number of shares which may be allocated to any single employee, but it is
the Committee's policy that allocations to executive officers of Avnet as a
group (currently 18 persons) will not exceed fifty (50%) percent of the total
number of shares available for allocation and/or delivery under the Program. The
Program also provides that executives to whose applicable remuneration section
162(m) of the Internal Revenue Code of 1986 as amended ("Section 162(m)") is
likely to apply (i) must achieve performance goals fixed in advance by the
Committee in order to qualify for an award under the Program and (ii) may not be
awarded more than 10,000 shares with respect to any fiscal year.
 
STOCK OPTION PLANS
 
     The Committee periodically grants options under Avnet's stock option plans
to officers and other employees in consideration of their contribution to the
long-term success of the Company. Unlike the Incentive Stock Program, the
Committee does not grant options on a regular schedule based on operating
results of the Company but makes awards from time to time in its discretion
based on its evaluation of accomplishments achieved by an executive or other
employee. The Committee may grant options under the Company's incentive stock
option plan, which mandates that grants be made at or above the fair market
value of the Company's stock at the date of grant, or under the Company's
non-qualified option plan, which permits the Committee to grant options having
exercise prices discounted by as much as 15% from the fair market value of the
Company's stock as of the grant date. The number
 
                                       20

<PAGE>   23
 
of shares already held under option by the executive may be taken into account
when the Committee makes an award. Pursuant to the terms of his employment
agreement described on pages 17 to 18 Roy Vallee, the President and Chief
Operating Officer, was granted 25,000 options in fiscal 1996 at an exercise
price of $28.00, less than fair market value as of the date of grant. Otherwise,
it was the Committee's policy in fiscal 1996 not to grant to executive officers
options at less than fair market value as of the date of grant
 
     Shareholders are being asked at the Annual Meeting to approve a new
incentive stock option plan which is described in detail on pages 27 to 32.
 
CHIEF EXECUTIVE OFFICER'S COMPENSATION
 
     In fiscal year 1996, the compensation paid to the Company's Chief Executive
Officer, Leon Machiz, was determined by an Employment Agreement dated February
28, 1990 as modified and extended by Extension Agreements effective July 1, 1994
and June 1, 1995 (collectively the "Agreement"). The Agreement was restated and
consolidated in June 1996. The terms of the Agreement are described in detail on
pages 16 to 17. Under the terms of the Agreement, Mr. Machiz received in fiscal
1996 an annual base salary of $1,000,000 and additional incentive compensation
of $1,160,000 based upon the Company's achievement of annual net earnings per
share (as adjusted to exclude the effect on net earnings of the amount accrued
in fiscal 1996 for Mr. Machiz's incentive compensation) in excess of two
dollars. The terms for the award of this additional incentive compensation for
fiscal years 1996 and after were approved by the shareholders at the 1995 Annual
Meeting of Shareholders.
 
     Additionally, in fiscal 1996 Mr. Machiz was allocated 4,000 shares of
restricted stock under the Program which allocation vested and will vest in four
equal installments in January 1996, 1997, 1998 and 1999. In setting the
performance goals upon which his incentive stock award with respect to fiscal
1996 would be based, the Committee considered a variety of factors, including
the continued expansion of the Company's business throughout Western Europe and
the Asia/Pacific region and its expansion into the South African and Eastern
European markets. The Committee also considered the overall financial
performance of the Company, including the Company's increase in earnings per
share, sales and net income and decrease in operating expenses as a percentage
of sales. No relative weights were given to the foregoing factors considered by
the Committee.
 
                                       21

<PAGE>   24
 
DEDUCTIBILITY OF EXECUTIVE COMPENSATION
 
     As a matter of policy, the Company has determined not to enter into any
compensation arrangement with any of its executive officers which fails to
qualify for deductibility under Section 162(m), and the compensation paid to its
executive officers in fiscal 1996 which was subject to Section 162(m) qualified
for deductibility thereunder.
 

<TABLE>
            <S>                                    <C>
            Joseph F. Caligiuri, Chairman          Frederic Salerno
            Gerald Berkman                         Frederick Wood
            Salvatore J. Nuzzo
</TABLE>

 
                                       22

<PAGE>   25
 
                COMPARISON OF FIVE YEAR CUMULATIVE TOTAL RETURN*
 
     The following graph compares the performance of Avnet Common Stock on a
cumulative total return basis for the periods indicated with the performance of
the Standard & Poor's Composite-500 Stock Index and a group consisting of
Avnet's peer companies in the electronic distribution industry. The companies
comprising the peer group are Arrow Electronics, Inc., Bell Industries, Inc.,
Marshall Electronics, Inc. and Wyle Laboratories. Premier Industrial Corp.,
formerly included in the peer group, was acquired by another corporation during
Avnet's 1996 fiscal year and is no longer a publicly reporting company. The
graph assumes $100 was invested on June 30, 1991 in Avnet, the S&P 500 and the
peer group, that all dividends were reinvested and that the peer group was
weighted on a stock market capitalization basis at the beginning of the period
of each reported data point.
 

<TABLE>
<CAPTION>
      Measurement Period
    (Fiscal Year Covered)            AVNET        PEER GROUP       S & P 500
<S>                                  <C>          <C>              <C>
6/30/91                               100          100              100
6/30/92                               102          131              113
6/30/93                               128          209              129
7/1/94                                122          221              131
6/30/95                               187          315              165
6/28/96                               165          284              208
9/1/96                                184          294              203
</TABLE>

 
* $100 invested on 06/30/91 in stock or index -- including reinvestment of
  dividends.
 
                                       23

<PAGE>   26
 

RELATED PARTY TRANSACTIONS
 
     The Dreyfus Trust Company acts as Trustee of the Avnet 401(k) Plan (the
"401(k) Plan"). The 401(k) Plan's funds are invested in six Dreyfus mutual funds
and the Avnet Company Stock Fund. As of August 31, 1996, the 401(k) Plan had an
aggregate market value of approximately $66,900,000 in the funds. Through August
31, 1996, Howard Stein, a director of Avnet, was Chairman of the Board and Chief
Executive Officer of The Dreyfus Corporation of which The Dreyfus Trust Company
is a subsidiary. Ehud Houminer, a director of Avnet, is director of various
Dreyfus mutual funds including the Dreyfus New Leaders Fund, Inc., one of the
Dreyfus funds available to participants in the 401(k) Plan. The 401(k) Plan's
investment in the funds is on terms and at a rate of return no less favorable
than those made available to other participants in the funds and is not afforded
preferential terms or rates on the investments managed by The Dreyfus Trust
Company.
 
 
               PROPOSAL TO APPROVE AND ADOPT THE AVNET DEFERRED
                    COMPENSATION PLAN FOR OUTSIDE DIRECTORS
 
     One of the purposes of the Annual Meeting is to consider and take action
with respect to the adoption of the Avnet Deferred Compensation Plan for Outside
Directors (the "Deferred Compensation Plan" or the "Plan") which would permit
non-employee directors of Avnet to defer all or any portion of their retainer
and committee fees in the form of cash or Avnet Common Stock equivalent units.
The Board believes that the Company's ability to offer its directors the means
to defer such fees will assist in the attraction and retention of persons of
high caliber to the Board; furthermore, ownership of Avnet Common Stock by its
directors is an important means by which the interests of the Board of Directors
and the shareholders become aligned, and the Board believes that the Deferred
Compensation Plan serves as an incentive to its non-employee directors to
increase their ownership in Avnet Common Stock.
 
     The major provisions of the Deferred Compensation Plan are as follows:
 
          1. Deferrals will commence subject to approval of the Plan at the
     Annual Meeting for retainer and committee fees payable on or after January
     1, 1997. Each member of the Board of Directors who is not an employee of
     the Company or any of its subsidiaries
 
                                       24

<PAGE>   27
 
     will be eligible to participate in the Plan. There are currently seven
     directors who would be eligible to participate.
 
          2. Elections to defer compensation pursuant to the Plan for each Plan
     Year (which is the calendar year) must be made no later than November 30 of
     the preceding Plan Year. Deferral elections, once made for a Plan Year, are
     irrevocable. All fees payable during a Plan Year for service as a member of
     the Board of Directors or any committees thereof, excluding meeting fees or
     any fees payable in Avnet Common Stock, are eligible to be deferred.
     Directors may defer all or any part of eligible fees. Eligible fees may be
     deferred in the form of cash or in Avnet Common Stock equivalent units
     known as "phantom share units" or "PSUs".
 
          3. Fees deferred in the form of PSUs will be translated into PSUs by
     dividing the amount of fees deferred by the average market value of a share
     of Avnet Common Stock on the New York Stock Exchange (NYSE) for the period
     of five trading days ending on the date on which the fees would otherwise
     have been paid (the "Average Market Value"). Compensation deferred as PSUs
     will be credited with additional PSUs in the event a dividend is paid on
     Common Stock. The number of additional PSUs so credited will be determined
     by multiplying the per-share amount of such dividend by the number of PSUs
     credited to the director as of the dividend record date and then, dividing
     that amount by the Average Market Value of a share of Avnet Common Stock on
     the dividend payment date. PSUs will also be adjusted for stock dividends,
     recapitalizations, mergers or other similar changes affecting Avnet Common
     Stock. Except for such crediting of additional PSUs with respect to
     dividends, directors who participate in the Plan will have no voting
     rights, rights to receive dividends or any other rights of holders of Avnet
     Common Stock with respect to the PSUs to their credit under the Plan.
 
          4. Compensation deferred as cash will be credited at the end of each
     calendar month with interest at a rate corresponding to the rate of
     interest on U.S. Treasury 10-year Notes on the first day of that calendar
     month.
 
          5. Compensation deferred under the Plan, and additional PSUs or
     interest credited thereon, will be payable to a director (i) upon cessation
     of membership on Avnet's Board of Directors, in ten annual installments or,
     at the director's election (which must be made within twenty-four (24)
     months prior to the date on which the
 
                                       25

<PAGE>   28
 
     director ceases to be a member of the Board), in annual installments not
     exceeding ten or in a single lump sum or (ii) upon a Change in Control of
     Avnet, as defined below, in a single lump sum. PSUs are payable in Avnet
     Common Stock with cash payment made for fractional PSUs. In the event of
     the death of a director before receipt of all required payments, all
     remaining payments shall be made to the director's designated beneficiary.
 
          6. For purpose of the Plan, a "Change in Control" shall be deemed to
     have occurred (x) when any entity, person or group (other than Avnet or any
     of its subsidiaries, or any savings, pension or other plan for the benefit
     of employees of Avnet or any of its subsidiaries), which theretofore was
     beneficial owner of less than 20% of the then outstanding Common Stock
     either (1) acquires shares of Common Stock in a transaction or series of
     transactions that results in such entity, person or group directly or
     indirectly owning beneficially 20% or more of the outstanding Common Stock,
     or (2) acquires by proxy or otherwise the right to vote for the election of
     directors, for any merger, combination or consolidation of Avnet or any of
     its subsidiaries, or for any other matter or question more than 20% of the
     then outstanding voting securities of Avnet (except where such acquisition
     is made by a person or persons appointed by at least a majority of the
     Board of Directors to act as proxy for any purpose); or (y) upon the
     election or appointment, within a twelve-month period, of persons to the
     Board of Directors who were not directors of Avnet at the beginning of such
     twelve-month period, and whose election or appointment was not approved by
     a majority of those persons who were directors at the beginning of such
     period, where such newly-elected or appointed directors constitute 20% or
     more of the members of the Board of Directors.
 
          7. Avnet may establish a "grantor" trust within the meaning of Subpart
     E, Part I, subchapter J, Chapter 1, Subtitle A of the Code to assist in the
     funding of payments to be made pursuant to the Plan.
 
          8. The Plan is to be administered by the Executive Committee of the
     Board of Directors or its designee.
 
FEDERAL INCOME TAX CONSEQUENCES OF THE PLAN
 
     Compensation deferred under the Plan, and additional PSUs or interest
credited thereon, will not be subject to federal income tax until payment of
these amounts is made
 
                                       26

<PAGE>   29
 
from the Plan. The value of all shares of Avnet Common Stock and the amount of
cash included in each payment will be taxable at ordinary income tax rates in
the year such payment is received.
 
VOTE REQUIRED FOR APPROVAL
 
     The affirmative vote of the holders of a majority of the shares of Common
Stock outstanding on the record date is required for adoption of the Deferred
Compensation Plan. Thus, shareholders who do not vote or who vote to abstain
will in effect be voting against adoption. Brokers who hold shares of Common
Stock as nominees will have discretionary authority to vote such shares if they
have not received voting instructions from the beneficial owners by the tenth
day before the Annual Meeting, provided that this proxy statement is transmitted
to the beneficial owners at least fifteen (15) days before the Annual Meeting.
 
                              * * * * * * * * * *
 
     Copies of the Deferred Compensation Plan are not being submitted with this
proxy statement but will be furnished to any shareholder upon written request
made to the Corporate Secretary of Avnet at the address shown on the first page
of this Proxy Statement.
 
     THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE APPROVAL OF THE DEFERRED
COMPENSATION PLAN.
 
                              * * * * * * * * * *
 
                    PROPOSAL TO APPROVE AND ADOPT THE AVNET
                        1996 INCENTIVE STOCK OPTION PLAN
 
     One of the purposes of the Annual Meeting is to consider and take action
with respect to the adoption of the Avnet 1996 Incentive Stock Option Plan (the
"1996 Plan") covering 1,000,000 shares of Avnet's Common Stock. The 1996 Plan
will supplement and be substantially similar to the 1990 Stock Option Plan which
will shortly reach the limit of authorized shares which may be granted
thereunder.
 
     On the basis of its experience with Avnet's prior stock option plans, the
Board believes that the capacity to grant stock options assists in attracting
high caliber personnel to Avnet and in inducing such personnel to remain in
Avnet's employ by virtue of the additional incentive to promote Avnet's success
which results from the possession of options to
 
                                       27

<PAGE>   30
 
purchase shares of Avnet's Common Stock. The Board has approved the 1996 Plan
and is requesting shareholder adoption thereof so that Avnet may continue to
have the flexibility to grant either or both tax-advantaged "incentive stock
options" under the 1990 Plan and proposed 1996 Plan, and "non-qualified" stock
options under the 1988 and 1995 Plans to full-time employees of Avnet or its
subsidiaries for whom the additional incentive and potential reward afforded by
stock options are from time to time deemed appropriate.
 
     The major provisions of the 1996 Plan are as follows:
 
          1. A total of 1,000,000 shares of Avnet's Common Stock will be
     available for the grant of options under the 1996 Plan to regular,
     full-time employees of Avnet (including any directors who are also regular
     full-time employees). It is estimated that there are currently about 9,500
     persons who are eligible to be considered for grants under the 1996 Plan.
     As of the date of this proxy statement, no specific grants have been made
     or comtemplated.
 
          2. Both the aggregate number of shares covered by the 1996 Plan and
     the number of shares covered by individual options will be appropriately
     adjusted in the event of stock dividends, recapitalization of Avnet's
     Common Stock, split-ups or combinations of shares or like capital
     adjustments.
 
          3. The shares delivered upon exercise of options under the 1996 Plan
     may be authorized and unissued shares of Common Stock or shares held in
     Avnet's treasury.
 
          4. A committee (the "Committee"), appointed by Avnet's Board of
     Directors and composed of three or more directors, will administer the 1996
     Plan with full authority to construe the 1996 Plan, to prescribe and amend
     rules and regulations relating thereto, to grant options thereunder to
     eligible employees of its choosing and to make all other determinations in
     the administration thereof. The directors of the Committee will not be
     eligible to be granted options under the 1996 Plan and must be "outside
     directors" within the meaning of the regulations promulgated under section
     162(m) of the Code, and "Non-Employee Directors" within the meaning of Rule
     16b-3 under the Securities Exchange Act of 1934.
 
          5. The purchase price per share of Common Stock upon the exercise of
     each option granted under the 1996 Plan must be at least 100% of the fair
     market value per share of Avnet's Common Stock on the date of grant of such
     option. (On October 4,
 
                                       28

<PAGE>   31
 
     1996, the closing price of a share of Common Stock on the New York Stock
     Exchange Composite Tape was $48.625.) The shares purchasable upon any
     option exercise are to be paid for in full in cash or through the delivery
     of other shares of Avnet's Common Stock with a fair market value equal to
     the total exercise price, or by a combination of cash and shares.
 
          6. Options may not be granted to any individual who owns at the time
     of grant Avnet capital stock possessing more than 10% of the total combined
     voting power of all classes of such stock unless at the time such option is
     granted, the option price is at least 110% of the fair market value of the
     stock subject to the option and such option by its terms is not exercisable
     after the expiration of five years from the date of grant.
 
          7. In the event of a "tender offer" by any person, firm or
     corporation, other than Avnet or a subsidiary of Avnet, soliciting tenders
     of 50% or more of Avnet's then outstanding Common Stock, the Committee has
     authority to accelerate exercisability of options held by optionees then in
     Avnet's employ so that such options will immediately become exercisable in
     full and will remain exercisable in full until expiration, termination or
     withdrawal of such tender offer.
 
          8. Options granted under the 1996 Plan may not become exercisable in
     whole or in part until at least six months from the date of grant and must
     expire and cease to be exercisable no later than the day prior to the tenth
     anniversary of the respective dates of grant thereof.
 
          9. In the event that any optionee ceases to be employed by Avnet or
     one of its subsidiaries for any reason other than death, disability,
     retirement or other reasons determined by the Committee in its sole
     discretion, all options theretofore granted to such optionee will terminate
     and cease to be exercisable. If any optionee's employment ceases due to
     disability, retirement or other reasons determined by the Committee in its
     sole discretion, all options to the extent then exercisable by such
     optionee will remain exercisable (unless they have otherwise expired) for a
     period expiring on the earlier of the day that is three months after the
     date of such cessation of employment or the day the option is due to expire
     under the terms of the grant.
 
          10. Over the term of the 1996 Plan, no eligible employee shall receive
     options for the purchase of more than 150,000 shares of Common Stock less
     such aggregate
 
                                       29

<PAGE>   32
 
     number of shares of Common Stock as are subject to options which were
     previously granted to such Eligible Employee, whether or not exercised and
     whether or not cancelled.
 
          11. Options are not assignable or transferable except that, in the
     event of the death of an optionee while in the employ of Avnet or one of
     its subsidiaries, any outstanding options held will remain exercisable by
     such optionee's legal representative until the earlier of the day that is
     one year after the date of the optionee's death or the day the option is
     due to expire under the terms of the grant, but only to the extent such
     options were exercisable on the date of death.
 
          12. Shares involved in the unexercised portions of any options
     terminated under the provisions of the 1996 Plan may again be the subject
     of options under the 1996 Plan.
 
          13. The Board of Directors of Avnet may amend any and all provisions
     of the 1996 Plan except with respect to the composition and functioning of
     the Committee, increasing the aggregate number of shares covered by the
     1996 Plan, decreasing the minimum exercise price per share (in relation to
     fair market value per share on the date of grant), and extending the
     maximum period during which options will be exercisable or the termination
     date of the 1996 Plan.
 
          14. Avnet will make no charge to income upon the granting or exercise
     of options under the 1996 Plan.
 
          15. The 1996 Plan will commence on January 1, 1997 and will terminate
     on December 31, 2006.
 
                                       30

<PAGE>   33
 
FEDERAL INCOME TAX CONSEQUENCES OF THE 1996 PLAN
 
     As to any employee to whom an option is granted under the 1996 Plan, (i) no
federal income tax will become payable as a result of the granting of such
option or as a result of its having become exercisable in part or in whole; and
(ii) no federal income tax will become payable as the result of the exercise of
such option, so long as (a) no disposition of the shares with respect to which
the option was so exercised is made within two years from the date of grant of
the option nor within one year after the date of the transfer of such shares to
the employee, (b) the optionee remains in the employ of Avnet or its
subsidiaries from the date the option is granted to a date which is not more
than three months prior to exercise of the option (unless employment is
terminated by reason of the optionee's death) and (c) all incentive stock
options granted by Avnet to such employee (under the 1996 Plan or otherwise) may
not first become exercisable in any calendar year for shares having an aggregate
fair market value (as determined as of the grant dates of such options)
exceeding $100,000.
 
     Upon the subsequent sale of shares received upon exercise of an option,
capital gains taxes will be payable, at the rates applicable to the particular
employee, on any amount received by such employee in excess of the amount paid
by the employee for such shares or such employee will be entitled to claim a
capital loss on any loss sustained as a result of such sale.
 
     In the event that the holding period and the employment period requirement
described above are not met, ordinary income will be recognized and federal
income tax will become payable as the result of the exercise of the option at
ordinary income rates applicable to the particular employee on any gain which
would have been realized at the time of option exercise by such employee equal
to the lesser of (i) the fair market value of the underlying stock on the date
of exercise over the option price of the stock or (ii) the amount realized on
disposition over the adjusted basis of the stock. The excess, if any, of the
amount realized on any sale of the stock over the fair market value of the stock
on the date of exercise will be treated as a capital gain. If the $100,000 limit
on exercisability is exceeded, then the foregoing tax consequence shall apply to
that part of the option or options whose fair market value exceeds $100,000,
considered in the order in which such options were granted.
 
     Avnet is entitled to take a federal income tax deduction with respect to
incentive stock options only at the time and to the extent that optionees
recognize ordinary income (as set forth above).
 
                                       31

<PAGE>   34
 
                              * * * * * * * * * *
 
VOTE REQUIRED FOR APPROVAL
 
     The affirmative vote of the holders of a majority of the shares of Common
Stock outstanding on the record date is required for adoption of the 1996 Plan.
Thus, shareholders who do not vote or who vote to abstain will in effect be
voting against adoption. Brokers who hold shares of Common Stock as nominees
will have discretionary authority to vote such shares if they have not received
voting instructions from the beneficial owners by the tenth day before the
Annual Meeting provided that this proxy statement is transmitted to the
beneficial owners at least fifteen (15) days before the Annual Meeting.
 
                              * * * * * * * * * *
 
     Copies of the 1996 Plan are not being submitted with this proxy statement
but will be furnished to any shareholder upon written request made to the
Corporate Secretary of Avnet at the address shown on the first page of this
proxy statement.
 
     THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE APPROVAL OF THE 1996 PLAN.
 
                                 * * * * * * *
 
INFORMATION AS TO ACCOUNTING AND AUDITING
 
     One of the purposes of the meeting is to consider and take action with
respect to ratification of the appointment by Avnet's Board of Directors of
Arthur Andersen LLP as independent public accountants to audit the books of
Avnet for the fiscal year ending June 27, 1997. Arthur Andersen LLP has been
regularly employed by Avnet since January 2, 1991 to examine its books and
accounts and for other purposes.
 
     Representatives of Arthur Andersen LLP are expected to be present at the
Annual Meeting and will have an opportunity to make such statements as they may
desire. Such representatives are expected to be available to respond to
appropriate questions from shareholders.
 
                                       32

<PAGE>   35
 
                                    GENERAL
 
     Avnet's Annual Report to its Shareholders for the fiscal year ended June
28, 1996, including financial statements, was mailed commencing on September 20,
1996 to shareholders of record on September 20, 1996 and subsequently to persons
who became shareholders of record up to and including the October 4, 1996 record
date for the Annual Meeting.
 
     As of the date of this proxy statement, the Board of Directors does not
know of any other matter which will come before the Annual Meeting. In the event
that any other matter properly comes before the Annual Meeting, the persons
named in the enclosed form of proxy intend to vote all proxies in accordance
with their judgment on such matters.
 
     All shares represented by a valid proxy received by Avnet prior to the
Annual Meeting will be voted in accordance with the directions of the
shareholder executing such proxy. If no directions are given, such proxy will be
voted for the election as directors of the twelve persons named above, in favor
of ratification of the appointment of Arthur Andersen LLP as independent public
accountants of Avnet for the current fiscal year, in favor of the adoption of
the Avnet Deferred Compensation Plan for Outside Directors and in favor of the
adoption of the Avnet 1996 Incentive Stock Option Plan.
 
     The cost of soliciting proxies relating to the Annual Meeting will be borne
by Avnet. Directors, officers and regular employees of Avnet may solicit proxies
by telephone or personal interview without being specially compensated therefor.
Georgeson & Company, Inc. has been engaged by Avnet to solicit proxies relating
to the Annual Meeting, by telephone and mail, from holders of shares of Avnet's
Common Stock and to perform certain other procedures relating to the
solicitation of proxies. The cost of the services to be performed by Georgeson &
Company, Inc. is approximately $7,500 plus out-of-pocket expenses estimated at
approximately $5,000. In addition, Avnet will, upon request, reimburse brokers,
dealers, banks and other nominee shareholders for their reasonable expenses for
mailing copies of this proxy statement, the form of proxy and the Notice of the
Annual Meeting, to the beneficial owners of such shares.
 
                                       33

<PAGE>   36
 
                              1997 ANNUAL MEETING
 
     Each year Avnet's Board of Directors confirms the date, in November or
December, selected for the next Annual Meeting of Shareholders pursuant to
Section 4 of Avnet's By-Laws. While it is, of course, too early to have selected
the date for the 1997 Annual Meeting, any shareholder who decides to present a
proposal for action at the 1997 Annual Meeting should take note that his or her
proposal must be received by Avnet on or before 5:00 PM on June 13, 1997, in
order to be considered for inclusion in Avnet's Proxy Statement and form of
Proxy relating to the 1997 Annual Meeting.
 
     AVNET WILL PROVIDE A COPY OF ITS ANNUAL REPORT ON FORM 10-K FOR THE
     YEAR ENDED JUNE 28, 1996, TO EACH SHAREHOLDER WITHOUT CHARGE (OTHER
     THAN A REASONABLE CHARGE FOR ANY EXHIBIT REQUESTED) UPON WRITTEN
     REQUEST TO: AVNET, INC., 80 CUTTER MILL ROAD, GREAT NECK, NEW YORK
     11021 ATTENTION: RAYMOND SADOWSKI, CHIEF FINANCIAL OFFICER.
 
                                                 AVNET, INC.
 
                                                 SYLVESTER D. HERLIHY
                                                 Secretary
 
Dated: October 11, 1996
 
                   PLEASE SIGN, DATE AND MAIL YOUR PROXY NOW
 
                                       34

<PAGE>   37
                                   AVNET, INC.
                           DEFERRED COMPENSATION PLAN
                              FOR OUTSIDE DIRECTORS

                                      -----


1.       PURPOSE

         The purpose of the Plan is to provide Eligible Directors of Avnet, Inc.
with an opportunity to defer payment of certain portions of their compensation,
at their election, in accordance with the provisions hereof.

2.       DEFINITIONS

         As used herein, the following terms shall have the following meanings:

         "ACCOUNT" shall mean the Account established for a Participant pursuant
to Section 4.

         "AVERAGE MARKET VALUE" shall mean, with respect to one share of Common
Stock on any date, the average of the mean between the daily per-share high and
low sale prices for shares of Common Stock on the New York Stock Exchange
("NYSE") for the period of five trading days ending on such date, or for the
period of five trading days immediately preceding such date if the NYSE is
closed on such date.

         "BENEFICIARY" shall mean the person or persons designated by a
Participant in accordance with Section 9 to receive any amount, or any shares of
Common Stock, payable under the Plan by reason of his or her death.

         "BOARD OF DIRECTORS" shall mean the Board of Directors of the
Corporation.

         "COMMITTEE" shall mean the persons appointed by the Board of Directors
to administer the Plan in accordance with Section 12.

         "COMMON STOCK" shall mean the shares of common stock of the
Corporation.

         "COMPENSATION" shall mean, with respect to any Eligible Director for
any Plan Year beginning on or after January 1, 1997, all fees payable to such
Director during such year by way of retainer for service as a member of the
Board of Directors or any committees thereof, but shall not include meeting fees
or any fees payable in the form of Common Stock.



<PAGE>   38
         "CORPORATION" shall mean Avnet, Inc.

         "ELIGIBLE DIRECTOR" shall mean any individual who is a member of the
Board of Directors and who is not an employee of the Corporation or any of its
subsidiaries.

         "PARTICIPANT" shall mean any Eligible Director who has made an election
under Section 3 to defer any portion of his or her Compensation for any Plan
Year.

         "PHANTOM SHARE UNIT" or "PSU" shall mean a unit of measurement
equivalent to one share of Common Stock, with none of the attendant rights of a
holder of such share, including, without limitation, the right to vote such
share and the right to receive dividends thereon, except to the extent otherwise
specifically provided herein.

         "PLAN" shall mean the Avnet, Inc. Deferred Compensation Plan for
Outside Directors, as set forth herein and as amended from time to time.

         "PLAN YEAR" shall mean the calendar year.

3.       DEFERRAL ELECTIONS

         With respect to each Plan Year beginning on or after January 1, 1997,
an Eligible Director may elect to have payment of any part or all of his or her
Compensation for such year deferred, and to have payment of such portion made
under the terms of this Plan. Any such election shall be made in accordance with
the following rules:

         (a) A deferral election shall be made in writing, on a form provided by
the Committee for such purpose.

         (b) In the election form, the Eligible Director (i) shall specify, by
percentage (which must be an even multiple of 10%), the portion of his or her
Compensation the Eligible Director wishes to defer hereunder (amounts so
deferred are hereinafter referred to as the Eligible Director's "Deferred
Amounts"), and (ii) shall specify, by percentage (which must be an even multiple
of 10%), the portions of the Eligible Director's Deferred Amounts that he or she
wishes to have allocated, respectively, to the PSU Portion and to the Cash
Portion of the Account established for the Eligible Director pursuant to
Section 4.

         (c) An Eligible Director's election to defer Compensation for any Plan
Year shall be filed with the Committee no later than November 30 of the
preceding Plan Year.

         (d) Notwithstanding the provisions of paragraph (c) above, a
newly-elected Eligible Director may make a deferral election hereunder with
respect to his or her Compensation for the

                                       -2-


<PAGE>   39
Plan Year in which he or she is first elected to serve as a member of the Board
of Directors by filing his or her election form with the Committee no later than
30 days after the date on which he or she was elected to serve as a member of
the Board of Directors. Any deferral election so made shall be effective only
with respect to Compensation earned for services performed after the date on
which such election has been filed with the Committee.

         (e) Any deferral election made by an Eligible Director with respect to
his or her Compensation for a Plan Year, and any election made hereunder as to
the allocation of the Deferred Amounts for such year to the PSU Portion and the
Cash Portion of his or her Account, shall be irrevocable.

4.       ACCOUNTS

         For each Participant, there shall be established on the books and
records of the Corporation, for bookkeeping purposes only, a separate Account to
reflect the Participant's interest under the Plan. The Account so established
shall be maintained in accordance with the following provisions:

         (a) The Account established for each Participant shall consist of two
sub-accounts referred to herein, respectively, as the "PSU Portion" and the
"Cash Portion".

         (c) The PSU Portion and the Cash Portion of each Participant's Account
shall be credited with amounts equal to the portions of the Participant's
Deferred Amounts for each Plan Year that the Participant has elected under
Section 3 hereof to have allocated to such Portions. Such amounts shall be so
credited as of the date on which the amounts in question would have been paid to
the Participant had the Participant not elected to have payment of such amounts
deferred.

         (d) The PSU Portion and the Cash Portion of a Participant's Account
shall be adjusted from time to time to reflect all additional PSU's and interest
to be credited to such Portions pursuant to Section 6, and all payments made
with respect to such Portions pursuant to Section 8.

         (e) A Participant's interest in his or her Account shall be fully
vested and nonforfeitable at all times.


5.       CONVERSION TO PSU'S

         Amounts credited to the PSU Portion of a Participant's Account pursuant
to paragraph (c) of Section 4 shall be converted into (and after such conversion
shall be reflected in such Portion as) a number of Phantom Share Units. Such
number shall be determined by dividing the amount so credited by the Average
Market Value of one share of Common Stock on the date as of which the amount is
so credited.

                                      -3-

<PAGE>   40
6.       CREDITING OF EARNINGS

         Until payment with respect to a Participant's Account has been made in
full in accordance with Section 8, the PSU Portion of a Participant's Account
shall be credited with additional PSU's, and the Cash Portion of the
Participant's Account shall be credited with interest, in accordance with the
following provisions:

         (a) As of each date on which the Corporation pays a dividend on its
Common Stock ("Dividend Payment Date"), the PSU Portion of each Participant's
Account shall be credited with additional PSU's, the number of which shall be
determined by first (i) multiplying the number of PSU's standing to the
Participant's credit on the record date for such dividend by the per-share
amount of the dividend so paid, and then (ii) dividing the resulting amount by
the Average Market Value of one share of Common Stock on the Dividend Payment
Date.

         (b) As of the last day of each calendar month, the balance of the Cash
Portion of a Participant's Account shall be credited with an amount determined
by multiplying such balance by a percentage corresponding to the average rate of
interest on U.S. Treasury 10-year Notes on the first day of such calendar month.

7.       ADJUSTMENT OF PSU'S

         In the event of any change in the Common Stock occurring by reason of
any stock dividend, recapitalization, reorganization, merger, consolidation,
split-up, combination or exchange of shares, or any rights offering to purchase
such shares at a price substantially below fair market value, or any similar
change affecting the Common Stock, the number and kind of shares represented by
Phantom Share Units shall be appropriately adjusted consistent with such change
in such manner as the Committee, in its sole discretion, may deem equitable to
prevent substantial dilution or enlargement of the rights granted to, or
available for, the Participants hereunder. The Committee shall give notice to
each Participant of any adjustment made pursuant to this Section 7 and, upon
such notice, such adjustment shall be effective and binding for all purposes of
the Plan.

8.       PAYMENT OF ACCOUNT BALANCES

         Payment with respect to a Participant's Account shall be made in
accordance with the following provisions:

         (a) The balances of the PSU Portion and the Cash Portion of a
Participant's Account shall become payable upon the Participant's ceasing to be
a member of the Board of Directors for any reason. Except as otherwise provided
in paragraph (b) below, payment with respect to a Participant's Account shall be
made in the form of a series of 10 annual installments.

                                      -4-

<PAGE>   41
         (b) In lieu of the payment form specified in paragraph (a) above, a
Participant may elect to have the balances of the PSU Portion and the Cash
Portion of his or her Account paid in the form of a single lump-sum payment, or
in such number of annual installments, not to exceed 10, as the Participant
specifies in such election. Any such election shall be made in writing, on a
form that has been furnished by the Committee to the Participant for such
purpose and that is filed by the Participant with the Committee. Any such
election shall be effective only if it has been filed with the Committee at
least 24 months prior to the date on which the Participant ceases to be a member
of the Board of Directors. A Participant may revoke any election so made, and
make a new election hereunder, provided that such revocation or new election is
filed with the Committee at least 24 months prior to the date on which the
Participant ceases to be a member of the Board of Directors. Any such revocation
or new election shall be made in writing, on a form furnished by the Committee
to the Participant for such purpose.

         (c) If payment with respect to a Participant's Account is to be made in
the form of annual installments, the first such installment payment shall be
made on or as soon as practicable after the first day of the Plan Year following
the Plan Year in which the Participant ceases to be a member of the Board of
Directors, and the remaining installment payments shall be made on or as soon as
practicable after the first day of each succeeding Plan Year.

         (d) Each installment payment to be made with respect to the Cash
Portion of a Participant's Account shall be made in cash, in an amount
determined by dividing (i) the balance of the Cash Portion determined as of the
last day of the Plan Year preceding the year in which such payment is to be
made, by (ii) the number of installment payments remaining to be made.

         (e) Each installment payment to be made with respect to the PSU Portion
of a Participant's Account shall be made partly in shares of Common Stock, and
partly in cash. The number of shares to be included in each such installment
payment shall be equal to the number of whole PSU's included in the quotient
resulting from dividing (i) the total number of PSU's included in the balance of
the PSU Portion of the Participant's Account as of the last day of the Plan Year
preceding the year in which such payment is to be made, by (ii) the number of
installment payments remaining to be made; and the amount of cash to be included
in each such installment payment shall be determined by multiplying (iii) the
fractional part of a PSU included in the aforementioned quotient by (iv) the
Average Market Value of one share of Common Stock on the last business day
preceding the date on which such installment payment is to be made.

         (f) If payment with respect to a Participant's Account is to be made in
the form of a single lump sum payment, such payment shall be made on or as soon
as practicable after the first day of the Plan Year following the Plan Year in
which the Participant ceases to be a member of the Board of Directors Such
payment shall be made (i) in cash, with respect to the balance of the Cash
Portion of the Participant's Account and with respect to any fractional PSUs
included in the balance of the PSU Portion of the Participant's Account (with
the cash amount payable for such fractional PSUs calculated on the basis of the
Average Market Value of a share of


                                      -5-

<PAGE>   42
Common Stock on the last business day preceding the date of payment), and (ii)
in shares of Common Stock, with respect to the number of whole PSUs included in
the balance of the PSU Portion of the Participant's Account.

         (g) If a Participant should die before receiving all payments required
to be made hereunder with respect to his or her Account, any payments remaining
to be made at the date of the Participant's death shall be made to the
Participant's Beneficiary. Payments to the Beneficiary shall be made in the same
form, and at the same times, as the payments would have been made to the
Participant had he or she not died.

         (h) Notwithstanding any other provision in this Section 8 to the
contrary, payment with respect to any part or all of the Participant's Account
balances may be made to the Participant on any date earlier than the date on
which such payment is to be made pursuant to such other provisions of this
Section 8 if (i) the Participant requests such early payment and (ii) the
Committee, in its sole discretion, determines that such early payment is
necessary to help the Participant meet an "unforeseeable emergency" within the
meaning of Section 1.457-2(h)(4) (or any successor provision) of the federal
Income Tax Regulations. The amount that may be so paid may not exceed the amount
necessary to meet such emergency.

         (i) Notwithstanding any other provision in this Section 8 to the
contrary, the entire unpaid balance of a Participant's Account shall become
immediately due and payable upon the occurrence of a Change in Control, as
hereinafter defined. Payment with respect to such balance shall be made in the
form of a single lump-sum payment. Payment shall be made as soon as practicable
after the occurrence of such Change in Control. Payment shall be made (A) in
cash, with respect to the balance of the Cash Portion of the Participant's
Account and with respect to any fractional PSUs included in the balance of the
PSU Portion of the Participant's Account (with the cash amount payable for such
fractional PSUs calculated on the basis of the Average Market Value of a share
of Common Stock on the last business day preceding the date of payment), and (B)
in shares of Common Stock, with respect to the number of whole PSUs included in
the balance of the PSU Portion of the Participant's Account.

         For purposes of the foregoing, a "Change in Control" shall be deemed to
have occurred (x) when any entity, person (within the meaning of Section 14(d)
of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act)
(other than the Corporation or any of its subsidiaries, or any savings, pension
or other plan for the benefit of employees of the Corporation or any of its
subsidiaries), which theretofore was beneficial owner (as defined in Rule 13d-3
under the Exchange Act) of less than 20% of the then outstanding Common Stock
either (1) acquires shares of Common Stock in a transaction or series of
transactions that results in such entity, person or group directly or indirectly
owning beneficially 20% or more of the outstanding Common Stock, or (2) acquires
by proxy or otherwise the right to vote for the election of directors, for any
merger, combination or consolidation of the Corporation or any of its


                                      -6-

<PAGE>   43
subsidiaries, or for any other matter or question more than 20% of the then
outstanding voting securities of the Corporation (except where such acquisition
is made by a person or persons appointed by at least a majority of the Board of
Directors to act as proxy for any purpose); or (y) upon the election or
appointment, within a twelve-month period, of persons to the Board of Directors
who were not directors of the Corporation at the beginning of such twelve-month
period, and whose election or appointment was not approved by a majority of
those persons who were directors at the beginning of such period, where such
newly-elected or appointed directors constitute 20% or more of the members of
the Board of Directors.

         (j) There shall be deducted from the amount of any payment otherwise
required to be made under the Plan all federal, state and local taxes required
by law to be withheld with respect to such payment.

9.       DESIGNATION AND CHANGE OF BENEFICIARY

         Each Participant shall file with the Committee a written designation of
one or more persons as the Beneficiary who shall be entitled to receive any
amount, or any shares of Common Stock, payable under the Plan by reason of his
or her death. A Participant may, from time to time, revoke or change his or her
Beneficiary designation without the consent of any previously-designated
Beneficiary by filing a new designation with the Committee. The last such
designation received by the Committee shall be controlling; provided, however,
that no designation, or change or revocation thereof, shall be effective unless
received by the Committee prior to the Participant's death, and in no event
shall it be effective as of a date prior to such receipt. If at the date of a
Participant's death, there is no designation of a Beneficiary in effect for the
Participant pursuant to the provisions of this Section 9, or if no Beneficiary
designated by the Participant in accordance with the provisions hereof survives
to receive any amount payable under the Plan by reason of the Participant's
death, the Participant's estate shall be treated as the Participant's
Beneficiary for purposes of the Plan.

10.      PAYMENTS TO PERSONS OTHER THAN PARTICIPANTS

         If the Committee shall find that any Participant or Beneficiary to whom
any amount, or any shares of Common Stock, is payable under the Plan is unable
to care for his or her affairs because of illness, accident or legal incapacity,
then, if the Committee so directs, such amount, or such shares, may be paid to
such Participant's or Beneficiary's spouse, child or other relative, an
institution maintaining or having custody of such person, or any person deemed
by the Committee to be a proper recipient on behalf of such Participant or
Beneficiary, unless a prior claim therefor has been made by a duly-appointed
legal representative of the Participant or Beneficiary.

         Any payment made under this Section 10 shall be a complete discharge of
the liability of the Corporation with respect to such payment.

                                      -7-

<PAGE>   44
11.      RIGHTS OF PARTICIPANTS

         A Participant's rights and interests under the Plan shall be subject to
the following provisions:

         (a) A Participant shall have the status of a general unsecured creditor
of the Corporation with respect to his or her right to receive any payment under
the Plan. The Plan shall constitute a mere promise by the Corporation to make
payments in the future of the benefits provided for herein. It is intended that
the arrangements reflected in this Plan be treated as unfunded for tax purposes.

         (b) The Corporation may, but shall not be required to, establish a
trust to assist it in funding any of its payment obligations under the Plan. If
any such trust is established, all of the assets of the trust shall, at all
times prior to payment to Participants, remain subject to the claims of the
Corporation's creditors; and no Participant or Beneficiary shall have any
preferred claim on, or any beneficial ownership interest in, any assets of the
trust. Any trust so established shall also contain such other terms and
provisions as will permit the trust to be treated as a "grantor trust", of which
the Corporation is the grantor, within the meaning of subpart E, part I,
subchapter J, chapter 1, subtitle A of the Internal Revenue Code of 1986, as
amended (or any successor provisions). If any such trust is established, the
Corporation shall be relieved of its obligation hereunder to pay any amounts or
shares of Common Stock to any Participant or Beneficiary, to the extent that
such amounts or shares are paid to the Participant or Beneficiary from such
trust.

         (c) A Participant's rights to payments under the Plan shall not be
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, attachment, or garnishment by creditors of the Participant
or his or her Beneficiary.

12.      ADMINISTRATION

         The Plan shall be administered by the Executive Committee of the Board
of Directors (the "Committee") or its designees.

         All decisions, actions or interpretations of the Committee under the
Plan shall be final, conclusive and binding upon all parties.

         No member of the Committee shall be personally liable by reason of any
contract or other instrument executed by such member or on his or her behalf in
his or her capacity as a member of the Committee nor for any mistake of judgment
made in good faith, and the Corporation shall indemnify and hold harmless each
member of the Committee, and each employee, officer, or director of the
Corporation or any of its subsidiaries to whom any duty or power relating to the
administration or interpretation of the Plan may be delegated, against any cost
or expense


                                      -8-

<PAGE>   45
(including counsel fees) or liability (including any sum paid in settlement of a
claim with the approval of the Board of Directors) arising out of any act or
omission to act in connection with the Plan unless arising out of such person's
own fraud or bad faith.

13.      AMENDMENT OR TERMINATION

         The Board of Directors may, with prospective or retroactive effect,
amend, suspend or terminate the Plan or any portion thereof at any time;
provided, however, that no amendment of the Plan shall deprive any Participant
of any rights to receive payment of any amounts or shares of Common Stock due
him or her under the terms of the Plan as in effect prior to such amendment
without his or her written consent.

         Any amendment that the Board of Directors would be permitted to make
pursuant to the preceding paragraph may also be made by the Committee where
appropriate to facilitate the administration of the Plan or to comply with
applicable law or any applicable rules and regulations of governing authorities,
provided that the cost of the Plan to the Corporation is not materially
increased by such amendment.

14.      SUCCESSOR CORPORATION

         The obligations of the Corporation under the Plan shall be binding upon
any successor corporation or organization resulting from the merger,
consolidation or other reorganization of the Corporation, or upon any successor
corporation or organization succeeding to substantially all of the assets and
business of the Corporation. The Corporation agrees that it will make
appropriate provision for the preservation of Participants' rights under the
Plan in any agreement or plan which it may enter into or adopt to effect any
such merger, consolidation, reorganization or transfer of assets.

15.      EFFECTIVE DATE

         The Plan shall be effective October 1, 1996, subject, however, to
approval by the holders of a majority of the outstanding shares of Common Stock
of the Corporation entitled to vote thereon at the first meeting of the
Corporation's shareholders to be held after such date.

16.      GOVERNING LAW

         The provisions of the Plan shall be governed by and construed in
accordance with the laws of the State of New York.

                                      -9-

<PAGE>   46
                                   AVNET, INC.

                        1996 INCENTIVE STOCK OPTION PLAN

                                    ARTICLE I

                               Purpose of the Plan

                  This 1996 Incentive Stock Option Plan (the "Plan") is intended
to advance the interests of the Company by assisting Avnet and its Subsidiaries
in attracting high caliber personnel and in inducing such personnel to remain in
their employ by virtue of the additional incentive to promote the Company's
success which results from the possession of options to purchase shares of
Avnet's common stock, par value $1.00, and, if such options are exercised, an
equity interest in Avnet.

                                   ARTICLE II

                                   Definitions

                  The following words and phrases used herein shall unless the
context otherwise indicates, have the following meanings:

                  1. "Avnet" shall mean Avnet, Inc.

                  2. "Board of Directors" and "Director" shall mean,
respectively, the board of directors of Avnet and any member thereof.

                  3. "Code" shall mean the Internal Revenue Code of 1986, as
amended.

                  4. "Committee" shall mean a committee charged with
administering this Plan. The Committee shall be appointed by the Board of
Directors. The Committee shall consist of three or more Directors, none of whom
is eligible to be granted Options under this Plan, and who are "outside
directors" within the meaning of the regulations under Section 162(m) of the
Code and "Non-Employee Directors" within the meaning of Rule 16b-3 under the
Securities Exchange Act of 1934, shall have authority to grant Options hereunder
on such terms and subject to such conditions (not inconsistent with the terms of
this Plan) as such Committee shall determine. The Committee shall have full
authority to construe this Plan, to prescribe and amend rules and regulations
relating hereto and to make all other determinations in the administration
hereof.

                  5. "Company" shall mean Avnet and all its Subsidiaries.


<PAGE>   47
                  6. "Eligible Employee" shall mean any regular full-time
employee of the Company (including any Director who is also a regular full-time
employee).

                  7. "Fair Market Value" when used with respect to a particular
date shall be the mean between the high and low sale prices (as reported by the
Consolidated Transactions Reporting Service) at which shares of Avnet's common
stock shall have been sold on such date or, if such date is a date for which no
trading is so reported, on the next preceding date for which trading is so
reported.

                  8. "Incentive Stock Option" shall mean any option granted to
or held by an Eligible Employee pursuant to any Avnet stock option plan,
including the Plan, which meets the definition of incentive stock option in
Section 422(b) of the Code.

                  9. "Option" shall mean any option granted or held pursuant to
the provisions of this Plan.

                  10. "Option Agreement" shall mean the agreement evidencing any
Option hereunder. The Option Agreement may be in any form (not inconsistent with
this Plan) prescribed or accepted by the Committee.

                  11. "Optionee" shall mean any person who at the time in
question holds any Option which then remains unexercised in whole or in part and
has not expired or been surrendered or terminated. The term "Optionee" shall
include any Successor Optionee.

                  12. "Plan" shall mean this stock option plan.

                  13. "Stock" shall mean the common stock of Avnet as presently
constituted subject to the anti-dilution provisions set forth in Article VIII
hereof.

                  14. "Subsidiary" shall mean any corporation, the majority of
the total combined voting power of all classes of capital stock of which shall
at the time in question be owned by Avnet and/or any Subsidiary of Avnet.

                  15. "Successor Optionee" shall mean any person who shall have
acquired the right to exercise any Option by will or the law of descent and
distribution under the provisions of Article VI hereof.

                                        2


<PAGE>   48
                                   ARTICLE III

                          Shares Reserved for the Plan

                  1. Subject to the anti-dilution provisions set forth in
Article VIII hereof, the maximum number of shares of Stock which may be
delivered by Avnet pursuant to the exercise of Options shall be one million
(1,000,000). At no time shall there be outstanding Options for the purchase of
more than one million (1,000,000) shares of Stock (subject to said anti-dilution
provisions) less such aggregate number of shares of Stock as have previously
been delivered pursuant to the exercise of Options. Over the term of the Plan,
no Eligible Employee shall receive Options for the purchase of more than 150,000
shares of Stock (subject to said anti-dilution provisions) less such aggregate
number of shares of Stock as are subject to Options which were previously
granted to such Eligible Employee, whether or not exercised, and whether or not
cancelled. If, after grant, the exercise price of an Option is reduced, the
transaction shall be treated as a cancellation of the Option and the grant of a
new Option.

                  2. In the discretion of the Committee and with the consent of
the Board of Directors, the shares of Stock subjected to Options may consist of
authorized but unissued shares of Stock and/or shares of Stock held in Avnet's
treasury.

                  3. If any Option shall be surrendered or for any other reason
shall terminate or expire in whole or in part, the shares of Stock covered by
such Option immediately prior to such surrender, termination or expiration shall
thereupon be added to the shares of Stock otherwise available for subjection to
Options hereunder.

                                   ARTICLE IV

                           Administration of the Plan

                  1. This Plan shall be administered by the Committee which
shall have full power to construe and interpret the Plan and to establish and
amend rules and regulations for its administration.

                  2. In addition to the foregoing (and without limiting the
generality thereof), the Committee shall have plenary authority (subject to the
provisions of Article II, III, V and VI hereof) in its discretion to determine
the time or times at which Options shall be granted, the Eligible Employees to
whom Options shall be granted, the duration of each such Option, the number of
shares of Stock to be covered by each such Option, the time when each such
Option shall become exercisable and whether each such Option shall be
exercisable in whole or in installments on a cumulative or non-cumulative basis.
The granting of Options by the Committee shall be entirely discretionary; the
terms and conditions (not inconsistent with this Plan) prescribed or approved
for

                                        3


<PAGE>   49
any Option Agreement shall similarly be within the discretion of the Committee,
and nothing in this Plan shall be deemed to give any Eligible Employee any right
to receive Options.

                  3. In the event of a public solicitation of tenders of 50% or
more of the then outstanding Stock (known conventionally as a "tender offer") by
any person, firm or corporation other than the Company, the Committee is also
specifically authorized to accelerate exercisability of any or all Options held
by Optionees then employed by the Company so that such Options will immediately
become exercisable in full; however, such accelerated exercisability shall
continue in effect only until the expiration, termination or withdrawal of such
"tender offer," whereupon such Options will be (and continue thereafter to be)
exercisable only to the extent that they would have been exercisable if no such
acceleration of exercisability had been authorized.

                  4. A majority of the members of the Committee ( but not less
than two) shall constitute a quorum, and all acts, decisions or determinations
of the Committee shall be by majority vote of such of its members (but not less
than two) as shall be present at a meeting duly held at which a quorum is
present. Any act, decision or determination of the Committee reduced to writing
and signed by a majority of its members (but not less than two) shall be fully
as effective as if it had been made, taken or done by vote of such majority at a
meeting duly called and held.

                  5. The Committee shall deliver a report to the Board of
Directors with reasonable promptness following the taking of any action(s) in
the administration of this Plan which report shall set forth in full the
action(s) so taken. The Committee shall also file such other reports and make
such other information available as may from time to time be prescribed by the
Board of Directors.

                  6. Anything in this Plan to the contrary notwithstanding, the
Committee is not authorized hereunder to grant Options to an Eligible Employee
who owns at the time of grant voting securities of Avnet possessing more than
10% of the total combined voting power of all classes of the voting securities
of Avnet unless at the time such option is granted, the option price is at least
110% of the Fair Market Value of the Stock subject to the Option and such Option
by its terms is not exercisable after the expiration of five years from the date
of grant.

                                    ARTICLE V

                        Award and Modification of Options

                  1. Options may be granted by the Committee to Eligible
Employees from time to time in its discretion on or after January 1, 1997 and
prior to December 31, 2006 or the earlier termination hereof as provided in
Article IX.

                  2. Subject to the provisions of Article IX, during the period
when any Option is outstanding the Committee may modify the terms of such
Option, including the purchase price,

                                        4


<PAGE>   50
with respect to the unexercised portion thereof for such consideration as may be
deemed adequate by it and with the prior consent of the Optionee.

                  3. Promptly after the granting of any Option to an Eligible
Employee or the modification of any outstanding Option, the Committee shall
cause the Eligible Employee or the Optionee to be notified of such action and
shall cause Avnet to deliver to the Eligible Employee or Optionee an Option
Agreement (which Option Agreement is to be signed on behalf of Avnet by an
officer of Avnet with appropriate authorization therefor) to evidence the Option
so granted or modified and the terms and conditions thereof.

                  4. The date on which the Committee approves the granting of
any Option or approves the modification of any outstanding Option shall be
deemed the date on which such Option is granted or modified, regardless of the
date on which the Option Agreement evidencing the same is executed.


                                   ARTICLE VI

                         Terms and Conditions of Options

                  Each Option granted by the Committee, and each modification
thereof as evidenced by such Option Agreement is intended to qualify and shall
be treated as an "incentive stock option" within the definition thereof
contained in the Code as in effect at the date of granting or modifying the
same:

                  1. The purchase price per share of Stock upon the exercise of
each Option shall be at least 100% of the Fair Market Value of the Stock at the
date of the granting thereof.

                  2. No part of any Option shall become exercisable until at
least six months from the date on which such Option was granted. To the extent
that any Option shall have become exercisable, such Option may thereafter be
exercised by the Optionee in whole at any time or in part from time to time
prior to the surrender, expiration or termination of such Option. Each Option
shall expire and cease to be exercisable on the date designated in the
applicable Option Agreement, which date may be no later than the day prior to
the tenth anniversary of the date of granting thereof.

                  3. No Option shall be assignable or transferable by an
Optionee except in the event of the death of the Optionee, nor shall any Option
be exercisable during the lifetime of the Optionee except by the Optionee. In
the event of the death, while in the employ of the Company, of any Optionee to
whom an Option was originally granted, such Option shall remain exercisable
(unless such Option shall sooner be surrendered or expire) within one year of
the date of death of such original Optionee but in no event later than the day
the option is due to expire under the terms of the grant, but only (a) by the
person or persons to whom the right to exercise such Option shall


                                       5

<PAGE>   51
have passed by will or the laws of descent and distribution and (b) if and to
the extent that such Option shall have been exercisable by such original
Optionee at such date of death. At the end of the aforesaid period, such Option
(unless it shall sooner have been surrendered or have expired) shall terminate
and cease to be exercisable.

                  4. In the event that any Optionee to whom an Option was
originally granted shall cease to be employed with the Company for any reason
other than death, disability, retirement or other reason determined by the
Committee in its sole discretion, each Option theretofore granted to such
Optionee shall terminate and cease to be exercisable upon such cessation of
employment. In the event that any Optionee to whom an Option was originally
granted shall cease to be employed by the Company due to disability, retirement
or other reason determined by the Committee in its sole discretion, each Option
theretofore granted to such Optionee shall remain exercisable for a period not
exceeding three months after the date of such cessation of employment but in no
event later than the day the option expires under the terms of the grant but
only (a) by such original Optionee or by the person or persons to whom the right
to exercise such Option shall have passed by will or the laws of descent and
distribution and (b) if and to the extent that such Option was exercisable by
such original Optionee at such date of cessation of employment. At the end of
the aforesaid period, such Option (unless it shall sooner have been surrendered
or have expired) shall terminate and cease to be exercisable.

                                   ARTICLE VII

                         Additional Terms and Provisions

                  1. To the extent that any Option shall have become exercisable
as provided in Article V or Article VI above, such Option may be exercised by
the Optionee at any time and from time to time by written notice to Avnet
stating the number of shares of Stock with respect to which such Option is being
exercised accompanied by payment in full therefor as prescribed below. As soon
as practicable after receipt of such notice, Avnet shall deliver to the Optionee
at the principal office of Avnet (or such other place as Avnet may designate) a
certificate or certificates representing the shares of Stock acquired upon such
exercise without requiring payment of any transfer or issue tax by the Optionee;
provided, however, that the date for any such delivery may be postponed by Avnet
for such period as it may require in the exercise of reasonable diligence (a) to
register the shares of Stock so purchased under the Securities Act of 1933, as
amended, and/or to obtain the opinions of counsel referred to in clauses (B) and
(E) of paragraph 4 below and (b) to comply with the applicable listing
requirement of any national securities exchange or with any other requirements
of law. If any Optionee shall fail to accept delivery of all or any part of the
shares of Stock with respect to which such Option is being exercised upon tender
thereof, the right of such Optionee to exercise such Option with respect to such
unaccepted shares may, in the discretion of the Committee, be terminated.
Payment for the Stock may be made (i) by check (certified, if so required by
Avnet) in the amount of the aggregate exercise price of the portion of the
Option being exercised or (ii) in the form of certificates representing shares
of Stock (duly endorsed or accompanied by appropriate


                                       6

<PAGE>   52
stock powers, in either case with signature guaranteed if so required by Avnet)
having, at the date of receipt by Avnet of such certificates and the notice
above mentioned, a Fair Market Value equal to or in excess of such aggregate
exercise price or (iii) by a combination of check and certificates for Stock.

                  2. This Plan shall not confer upon any Eligible Employee or
upon any Optionee any right with respect to continuance of employment by the
Company, nor shall it interfere in any way with his or her right, or the
Company's right, to terminate his or her employment at any time.

                  3. No Optionee shall acquire or have any rights as a
shareholder of Avnet by virtue of any Option until the certificates representing
shares of Stock issued pursuant to the exercise of such Option are delivered to
such Optionee in accordance with the foregoing terms of this Plan, but the
rights as a shareholder of each Optionee to whom certificates representing
shares of Stock are so delivered shall be deemed to be the rights of a
shareholder of record as of the date of giving notice of the exercise of such
Option and making delivery to Avnet of the funds, certificates and/or other
instruments as provided in paragraph 1 above.

                  4. It is Avnet's present intention to register under the
Securities Act of 1933 as amended, the shares of Stock which may be delivered
pursuant to the exercise of Options granted under this Plan. However, any
provisions in this Plan to the contrary notwithstanding, Avnet shall not be
obligated to sell or deliver any shares of Stock pursuant to the exercise of any
Option unless (A)(i) such shares have at the time of such exercise been
registered under the Securities Act of 1933 as amended, (ii) no stop order
suspending the effectiveness of such registration statement has been issued and
no proceedings therefor have been instituted or threatened under said Act and
(iii) there is available at the time of such exercise a prospectus containing
certified financial statements and other information meeting the requirements of
Section 10(a) of said Act, or (B) Avnet shall have received from its counsel an
opinion that registration of such shares under said Act is not required and (C)
such shares are at the time of such exercise or will be upon official notice of
issuance listed on each national securities exchange on which the Stock is then
listed, (D) the prior approval of such sale has been obtained from any State
regulatory body having jurisdiction (but nothing herein contained shall be
deemed to require Avnet to register or qualify as a foreign corporation in any
State nor, except as to any matter or transaction relating to the sale or
delivery of such shares, to consent to service of process in any State), and (E)
Avnet shall have received an opinion from its counsel with respect to compliance
with the matters set forth in clauses (A), (B), (C), and (D) above.


                                  ARTICLE VIII

                   Adjustments Upon Changes in Capitalization

                  1. In the event that the Stock shall be split up, divided or
otherwise reclassified into or exchanged for a greater or lesser number of
shares of Stock or into shares of Stock and/or any other securities by reason of
recapitalization, reclassification, stock dividends, stock split or


                                       7

<PAGE>   53
reverse split, merger, combination of shares, spin-off, spin-out or other
distribution of assets to Shareholders or other reorganization, the term "Stock"
as used herein shall thereafter mean the number and kind of shares or other
securities into which the Stock shall have been so split up, divided or
otherwise reclassified or for which the Stock shall have been so exchanged; and
the remaining number of shares of Stock which may in the aggregate thereafter be
sold pursuant to the exercise of Options (as specified in paragraph 1 of Article
III hereof) and the remaining number of shares of Stock which may thereafter be
sold pursuant to the exercise of any Options then outstanding, shall be adjusted
accordingly.

                  2. In the event that the Stock shall be split up, divided or
otherwise reclassified or exchanged as provided in the preceding paragraph, the
purchase price per share of Stock upon exercise of Options shall be
correspondingly adjusted provided, however, that no adjustment in the number or
kind of securities subject to outstanding Options as provided in the preceding
paragraph and no adjustment in the purchase price per share of Stock upon the
exercise of Options shall be made in such manner as to constitute a
"modification" of Options then outstanding as defined in Section 424(h) of the
Code, as such Section 424(h) is in effect at the date of such adjustment.

                  3. Anything in this Article VIII to the contrary
notwithstanding, in the event that, upon any adjustment made in accordance with
paragraph 1 of this Article, the remaining number of shares of Stock which may
thereafter be sold pursuant to the exercise of any Option then outstanding shall
include a fractional share of Stock, such fractional share of Stock shall be
disregarded for all purposes of this Plan, and the Optionee holding such Option
shall become entitled neither to purchase the same nor to receive cash or scrip
in payment therefor or in lieu thereof.

                                   ARTICLE IX

                      Amendment and Termination of the Plan

                  The Board of Directors may amend this Plan from time to time
as the Board may deem advisable and in the best interests of Avnet and may
terminate this Plan at any time (except as to Options then outstanding
hereunder); provided, however, that unless approved by the affirmative vote of a
majority of the outstanding shares of capital stock of Avnet entitled to vote
thereon, at a meeting of the shareholders of Avnet duly called and held for that
purpose, no amendment to this Plan shall be adopted which shall (a) affect the
composition or functioning of the Committee, (b) increase the aggregate number
of shares of Stock which may be delivered pursuant to the exercise of Options,
(c) decrease the minimum purchase price per share of Stock (in relation to the
Fair Market Value thereof at the respective dates of grant) upon the exercise of
Options or (d) extend the maximum ten-year period within which an Option is
exercisable or the termination date of this Plan.

                                    ARTICLE X

                                       8

<PAGE>   54
                              Shareholder Approval

                  This Plan shall be submitted to the Shareholders of Avnet for
their approval before December 31, 1996. No option granted hereunder shall be
exercisable until said approval shall have been obtained. If the Shareholders do
not approve this plan before December 31, 1996, this Plan shall be annulled and
all options theretofore granted hereunder shall thereupon be void without
further action of Avnet.

                                        9




<PAGE>   55
                  AVNET, INC. -- PROXY FOR 1996 ANNUAL MEETING

                      SOLICITED BY THE BOARD OF DIRECTORS

        The undersigned shareholder of AVNET, INC. (the "Company") hereby
constitutes and appoints Leon Machiz and Raymond Sadowski, or either of them,
as proxy of the undersigned, with full power of substitution and revocation, to
vote all shares of Common Stock of the Company standing in his or her name on
the books of the Company at the Annual Meeting of Shareholders to be held at
The Garden City Hotel, 45 Seventh Street, Garden City, NY on November 20, 1996,
at 10:30 A.M., E.S.T. or at any adjournment thereof, with all the powers which
the undersigned would possess if personally present, as designated on the
reverse side.

        The undersigned hereby instructs the said proxies (i) to vote in
accordance with the instructions indicated on the reverse side with respect to
the election of directors, the approval and adoption of the Avnet Deferred
Compensation Plan for Outside Directors, the approval and adoption of the Avnet
1996 Incentive Stock Option Plan, and the ratification of the appointment of
independent public accountants, but, if no designation is made on the reverse
side, to vote for the election of twelve directors, for the proposed Avnet
Deferred Compensation Plan for Outside Directors, for the Avnet 1996 Incentive
Stock Option Plan, and for ratification of such appointment, and (ii) to vote
in their discretion with respect to such other matters (including matters
incident to the conduct of the meeting) as may properly come before the
meeting.                                                    

        The undersigned hereby acknowledges receipt of the Notice and Proxy
Statement dated October 11, 1996 relating to the Annual Meeting of Shareholders
to be held November 20, 1996.

                  (Continued and to be signed on reverse side)

(a) ELECTION of 12 DIRECTORS to serve for the ensuing year: E. Baum, 
    G.J. Berkman, J.F. Caligiuri, S.D. Herliny, E. Houminer, L. Machiz, 
    S.J. Nuzzo, F. Salerno, D. Shaw, R. Vallee, K. Williams and F.S. Wood

      FOR ALL NOMINEES                        WITHHOLD AUTHORITY
        LISTED ABOVE                       to vote for all nominees
(except as listed to the contrary)                listed above
          /  /                                       /  /

INSTRUCTION: To withhold authority for any individual nominee, write that
nominee's name in the space provided below.

                     --------------------------------------

(b) APPROVAL AND ADOPTION OF THE AVNET DEFERRED COMPENSATION PLAN FOR OUTSIDE 
    DIRECTORS

             FOR              AGAINST            ABSTAIN
             / /               / /                 / /

(c) APPROVAL AND ADOPTION OF THE AVNET 1996 INCENTIVE STOCK OPTION PLAN.
    
             FOR              AGAINST            ABSTAIN
             / /               / /                 / /

(d) RATIFICATION OF APPOINTMENT OF ARTHUR ANDERSEN LLP as independent public
    accountants.  

             FOR              AGAINST            ABSTAIN
             / /               / /                 / /

(e) Transactions of such other business as may properly come before the Meeting
    or any adjournment(s) thereof.

                                
                                Signature should correspond with the stenciled
                                name appearing hereon. When signing in a
                                fiduciary or representative capacity, give full
                                title as such. When more than one owner, each
                                should sign.

                                Dated: _________________________________, 1996

                                ________________________________________ (L.S.)


                                ________________________________________ (L.S.)

                                Votes MUST be indicated (x) in Black or Blue 
                                ink.     /  /

         Please Sign, Date and Return the Proxy Card Promptly Using the
                               Enclosed Envelope.