Document:

EX-4.7

 

Exhibit 4.7

 

Date: October 11, 2004

 

SCOR
 

As Client

 

And

 

DEUTSCHE BANK AG, Paris Branch
 

As Bank

 

 

STAND-BY LETTER OF CREDIT FACILITY

 

 

relating to a

US$ 200,000,000 SBLC Facility

 

 

This Stand-by Letter of Credit Facility (the “SBLC Facility” or the “Facility”) is made on October
11th 2004.

Between

(1)  SCOR,
1 avenue du Général de Gaulle, 92074 PARIS LA DEFENSE CEDEX (the “Client”);

(2)  DEUTSCHE
BANK AG, Paris Branch, 3 avenue de Friedland, 75008 Paris (the “Bank”);

Client and the Bank are collectively referred to as the “Parties”.

WHEREAS

The Bank has agreed to issue Stand-by Letters of Credit to secure SCOR’s reinsurance activities and
related contracts up to a maximum amount of US$ 200,000,000 (two hundred million US dollars) in a
form acceptable to the National Association of Insurance Commissioners (NAIC) in the United States
of America or other appropriate regulatory body.

The Bank has also entered into a facility agreement with SCOR VIE as of the date hereof for the
purpose of issuing stand-by letters of credit to secure SCOR VIE’s reinsurance business.

IT IS AGREED as follows :

	 
	1	 	DEFINITIONS
	 
	 	 	“Agreement” means this Stand-by Letter of Credit Facility;
	 
	 	 	“Amendment Fee” means the fees as defined in Section 6.4 of this SBLC Facility;
	 
	 	 	“Application” means a request for the issuance of a Stand-by Letter of Credit as defined
in Section 3.1;
	 
	 	 	“Beneficiary(ies)” means any U.S. insurance
company as specified in the “Demande d’émission de stand-by letter of credit” as herewith attached;
	 
	 	 	“Business Day” means a day (other than a Saturday or Sunday, Christmas Day and New Year’s
Day) on which commercial banks are open for business in Paris and New York, if on that day
a payment or other dealing is due to take place under this Stand-by Letter of Credit
Facility;
	 
	 	 	“Commitment” means US$ 200,000,000 (two hundred million US dollars), to the extent not
cancelled or reduced under this Agreement; provided that the Commitment shall be reduced
by the amount of any stand-by letter of credit issued by the Bank
pursuant to the SCOR VIE Facility Agreement;
	 
	 	 	“Commitment Fee(s)” means the fees as defined in Section 6.1 of this SBLC Facility;
	 
	 	 	“Commitment Period” means from the date hereof until the Final Maturity Date;
	 
	 	 	“euro” and “EUR” means the single currency of the Participating Member States;

 

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	 	 	“Event of Default” means any of the events or circumstances described in Section 9.1
which have not been remedied within the grace period (if any) which is applicable under
Section 9.2;
	 
	 	 	“Final Maturity Date” means December 31, 2005, or as it may be extended pursuant to the
provisions hereof;
	 
	 	 	“Indebtedness” means :

	 	(i)	 	any indebtedness for monies borrowed;
	 
	 	(ii)	 	any indebtedness (actual or contingent) under any guarantee,
security,
indemnity, or other commitment designed to assure any creditor against loss
in respect of any indebtedness for borrowed money of any third party;
	 
	 	(iii)	 	any indebtedness under any acceptance credit;
	 
	 	(iv)	 	any indebtedness under any debenture, note, bill of exchange or commercial paper;
	 
	 	(v)	 	any indebtedness for money owing in respect of any interest rate swap or
cross-currency swap or forward sale or purchase contract or any options
contract; or
	 
	 	(vi)	 	any payment obligations under any lease entered into for the purpose of
obtaining or raising finance;

	 	 	“Issue Date” means the date on which a Stand-by Letter of Credit shall be issued, as
indicated in Client’s Application to the Bank;
	 
	 	 	“Issuing Bank” means Deutsche Bank AG, New York Branch;
	 
	 	 	“Issuance Fee” means the fees as defined in
Section 6.3 of this SBLC Facility;

“Maturity Date” means the last day of the term of a Stand-by Letter of Credit.
	 
	 	 	“Participating Member State” means any member state of the European Communities that adopts
or has adopted the euro as its lawful currency in accordance with legislation of the
European Union relating to Economic and Monetary Union.
	 
	 	 	“Prime Rate” means the rate of interest per annum announced from time to time by Deutsche
Bank AG, New York Branch, as its Prime Rate in effect at its office in New York City;
	 
	 	 	“SCOR VIE Facility Agreement” means the Stand-by Letter of Credit Facility entered into
between SCOR VIE and the Bank as of the date hereof;
	 
	 	 	“US dollars” or “US$” means the lawful currency for the time being of the United States of
America;
	 
	 
	2	 	STAND-BY LETTER OF CREDIT FACILITY
	 
	2.1	 	Amount of Facility. The Bank shall make available to Client a SBLC Facility for an
aggregate amount equal to the Commitment.
	 
	2.2	 	Stand-by Letters of Credit. Subject to the terms and conditions set forth herein, Client may
request the issuance or the amendment of existing Stand-by Letters of Credit for its own
account at any time and from time to time during the Commitment Period.
	 
	2.3	 	Duration of Stand-by Letters of Credit. In case of issue, the maximum duration of each
Stand-by Letter of Credit will be up to twelve (12) months, provided that all of the
Stand-by

 

3

 

	 	 	Letters of Credit shall expire at the Final Maturity Date at the latest. Each Stand-by
Letter of Credit shall automatically be extended for a new period of twelve (12) months
maximum if it has not been cancelled thirty (30) days prior to maturity, provided that the
SBLC Facility is extended for a new period.
	 
	2.4	 	Term of Facility. The Parties agree to negotiate bona fide the extension of the Facility for
a further period of twelve (12) months, three (3) months prior to the Final Maturity Date,
i.e. on September 30th of each calendar year at the latest.
	 
	2.5	 	Voluntary cancellation. Client may, by giving not less than ten (10) Business Days’ prior
notice to the Bank, before the end of a quarter as defined in Section 6.1, and without incurring
any cost, cancel the unutilised amount of the SBLC Facility in whole or in part. Each
cancellation shall be definitive.
	 
	 
	3	 	NOTICE OF ISSUANCE, AMENDMENT
	 
	3.1	 	To request the issuance of a Stand-by Letter of Credit or the amendment of an outstanding
Stand-by Letter of Credit, Client shall deliver to the Bank an Application in the Bank’s
standard form as shown in Schedule 1.
	 
	3.2	 	A Stand-by Letter of Credit shall be issued, amended, renewed or extended only if, after
giving effect to such issuance, amendment, renewal or extension, the total Stand-by Letter
of Credit exposure, i.e. the sum of the aggregate undrawn amount of all outstanding Stand-by
Letters of Credit at such time plus the aggregate amount of all Stand-by Letter of Credit
disbursements that have not yet been reimbursed by Client, does not exceed the Commitment.
	 
	3.3	 	All Stand-by Letters of Credit will be issued or amended by the Issuing Bank which is a bank
on the US National Association of Insurance Commissioners (NAIC) list and guaranteed by
the Bank upon receipt of the instructions from the Bank.
	 
	3.4	 	If the conditions set out in this Agreement have been met, the Bank will give instructions to
the Issuing Bank to issue the Stand-by Letter of Credit as per New York Compromise
Wording as shown in Schedule 3. The Issuing Bank will issue the Stand-by Letter of Credit
on the Issue Date, provided that Client has submitted its Application to the Bank with
reasonable notice.
	 
	 
	4	 	CONDITIONS PRECEDENT
	 
	 	 	Prior to the instructions of issuance of a Stand-by Letter of Credit by the Bank, Client
shall have set up with the Bank a gage de compte d’instruments financiers as security in
form and substance as shown in Schedule 2. Such gage de compte d’instruments financiers
shall be composed of US Treasury bills only.
	 
	 
	5	 	REIMBURSEMENT
	 
	 	 	If the Issuing Bank shall make any disbursements under the Stand-by Letters of Credit,
Client shall reimburse such Stand-by Letter of Credit disbursements by paying to the Bank
not later than 2:00 p.m., Paris time, on the second Business Day following the day of
receipt of the notification thereof from the Bank.

 

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	6	 	FEES
	 
	6.1	 	Client agrees to pay to the Bank a Commitment Fee which shall accrue at the rate of 0.05%
per annum on the daily unutilized amount of the Facility amount from and including the
first day of the Commitment Period up to, but excluding, the final day of the Commitment Period.
Accrued Commitment Fees shall be payable in arrears on the last day of March, June,
September and December of each year and on the final day of the Commitment Period. The
first Commitment Fee shall be due on December 31, 2004.
	 
	6.2	 	Client agrees to pay a commission on each Stand-by Letter of Credit, payable in advance at
the rate of 0.125% per annum with a minimum of US$300 per annum.
	 
	6.3	 	Client agrees to pay an Issuance Fee of EUR 400 per Stand-by Letter of Credit.
	 
	6.4	 	Client agrees to pay an Amendment Fee of EUR 400 per amendment.
	 
	6.5	 	Any fee referred to in this Section 6 is exclusive of any applicable value added tax. If any
value added tax is so chargeable, it shall be paid by Client at the same time as it pays the
relevant fee.
	 
	 
	7	 	INTERIM INTEREST
	 
	7.1	 	If any Stand-by Letter of Credit disbursement is made, the unpaid amount thereof shall bear
interest, for each day from and including the date such Stand-by Letter of Credit disbursement
is made to the date of Client reimbursement but excluding the date that Client reimburses such
Stand-by Letter of Credit disbursement, which shall not be later, as defined in Section 5, than
the second Business Day after being notified by the Bank, at the Prime Rate in effect on such
days.
	 
	7.2	 	If Client fails to reimburse such Stand-by Letter of Credit disbursement when due, such
overdue amount shall bear interest at the Prime Rate in effect during such period plus 2%.
	 
	7.3	 	The Bank shall promptly notify Client of the Prime Rate applied under this Agreement in case
of need according to Sections 7.1 and 7.2.
	 
	7.4	 	For information, the Prime Rate in effect at the date of signature of this SBLC Facility is
4.50% per annum.
	 
	 
	8	 	EXPIRATION DATE
	 
	8.1	 	Each Stand-by Letter of Credit shall expire as of the close of business of the Maturity Date,
provided that the Maturity Date occurs on or prior to the Final Maturity Date. If necessary
under the terms of any Stand-by Letter of Credit, upon instruction of Client or the Bank’s
own decision, the Bank through the Issuing Bank will give notice of non renewal to the
Beneficiary of such Stand-by Letter of Credit in order for such Stand-by Letter of Credit to expire or
terminate at the latest on the Final Maturity Date.
	 
	8.2	 	Unless the Bank or Client give written notice in a reasonable delay before the Maturity Date
of a Stand-by Letter of Credit that this Stand-by Letter of Credit will not be renewed, this
Stand-by Letter of Credit shall automatically be renewed for an identical term not exceeding the
then
applicable Final Maturity Date.

 

5

 

	9	 	EVENTS OF DEFAULT
	 
	9.1	 	Events of Default. An Event of Default occurs if any of the following events occurs and, if
remediable, it shall not have been remedied within the applicable Grace Period specified in
Section 9.2:

	 	(i)	 	Client fails to pay any of its Indebtedness as and when that Indebtedness
becomes due and payable (after the expiry of any applicable grace period); or
	 
	 	(ii)	 	Client fails to perform or observe any covenant or agreement to be performed
or observed by it contained in any other agreement or in any instrument evidencing
any of its Indebtedness and, as a result of such failure, any other party to that
agreement or instrument is entitled to exercise, and has not irrevocably waived, the
right to accelerate the maturity of any amount owing thereunder, provided that there
shall be no Event of Default under paragraphs (i) and (ii) above if:

	 	(a)	 	the aggregate amount of Indebtedness in each case is less
than euro 50,000,000 or its equivalent; or
	 
	 	(b)	 	there is a good faith dispute with the relevant creditors
regarding the amount owed; or

	 	(iii)	 	a default occurs and is not remedied in respect of the SCOR VIE Facility
Agreement;
	 
	 	(iv)	 	any breach by Client of any other provision of this SBLC Facility occurs; or
	 
	 	(v)	 	Client becomes, or is deemed for the purposes of any applicable law to be,
unable to
pay its debts generally as they fall due or insolvent; or
	 
	 	(vi)	 	any assets of
Client are subject to any form of execution, attachment, arrest,
sequestration or distress in respect of a sum of, or sums aggregating, euro
30,000,000
or more or the equivalent in another currency, and such attachment, execution,
arrest,
sequestration or distress is not discharged within fifteen (15) Business Days; or
	 
	 	(vii)	 	Client commences proceedings for mandat ad hoc or règlement amiable in
accordance
with articles L.611-3 to L 611-6 of the French Code de Commerce; or
	 
	 	(viii)	 	Client
makes any formal declaration of bankruptcy, declaration of cessation of
payments {déclaration de cessation des paiements) or any formal statement to the
effect that it is insolvent or likely to become insolvent; or
	 
	 	(ix)	 	a judgement
for redressement judiciaire, cession totale de I’entreprise or liquidation
judiciaire is entered in relation to Client under articles L.620-1 to L.628-3 of the
French Code de Commerce (or any analogeous procedure in any jurisdiction); or
	 
	 	(x)	 	any corporate action, legal proceedings or other procedure or step is taken in relation
to:

	 	(a)	 	the suspension of payments, a moratorium of any Indebtedness,
winding-up,
dissolution, administration or reorganisation (by way of voluntary arrangement,
scheme of arrangement or otherwise) of Client;
	 
	 	(b)	 	a composition, assignment or arrangement with any creditor of Client;
	 
	 	(c)	 	the appointment of a liquidator, receiver, administrator,
administrative receiver,
compulsory manager or other similar officer in respect of any asset of Client;

	 	 	 	provided that paragraph (x) shall not apply to any actions taken by a creditor
which is being contested in good faith and with due diligence and is discharged or struck
out
within thirty (30) Business Days; or
	 
	 	(xi)	 	the shareholders or directors of
Client pass a resolution to the effect that it should be
wound-up, liquidated, placed in administration or in collective
indebtedness settlements proceedings {procédure collective
d’apurement du passif) or cease to
carry on business; or
	 
	 	(xii)	 	in a country other than France, any event occurs or any
procedure is commenced which is or may reasonably be considered to be similar to any of the foregoing; or
	 
	 	(xiii)	 	Client ceases to have control of SCOR VIE within the meaning of article L. 233.3
of the French Code de commerce.

	 	 	 

6

 

	9.2	 	Actions following an Event of Default. On, or at any time after, the occurrence of an
Event
of Default, the Bank shall notify Client in writing, giving particulars of the Event of
Default in
question. Thereupon if such Event of Default is remediable and is
remedied, in case of non-payment, (i) within five (5) Business Days following the receipt of such notification by
Client
or, in case of misrepresentation or breach of other obligations, (ii) within fifteen days
following the earlier of the Bank giving notice and Client becoming aware of such non-compliance or misrepresentation (the “Grace Period”), the Bank may not take any action. In
circumstances where either such Event of Default is not remediable or has not been remedied
within the applicable Grace Period, the Bank shall:

	 	(a)	 	serve on Client a notice stating that the SBLC Facility and all other
liabilities and
obligations of the Bank to Client under this SBLC Facility are terminated; and/or
	 
	 	(b)	 	serve on Client a notice stating that the SBLC Facility, all accrued interest
and all other
amounts accrued or owing under this SBLC Facility are immediately due and payable or
are due and payable on demand; and/or
	 
	 	(c)	 	take any other action which, as a result of the Event of Default or any
notice served under
paragraph (a) or (b) above, the Bank is entitled to take under this SBLC Facility or
any applicable law.

	9.3	 	Termination of SBLC Facility. On the service of a notice under paragraph (a) of Section 9.2,
the SBLC Facility and all other obligations and liabilities of the Bank to Client under this
SBLC Facility shall terminate.
	 
	9.4	 	Acceleration of SBLC Facility. On the service of a notice under paragraph (b) of Section
9.2, the SBLC Facility, all accrued interest and all other amounts accrued or owing from
Client under this SBLC Facility shall become immediately due and payable or, as the case
may be, payable on demand.
	 
	 
	10	 	MATERIAL ADVERSE CHANGE
	 
	 	 	The committed Facility may be terminated in writing at the Bank’s sole discretion
within five (5) Business Days following the occurrence of a material adverse change in the
financial condition, business, assets or operations of Client which shall prejudice its
ability to perform its obligations under this SBLC Facility.
	 
	 
	11	 	ENTIRE AGREEMENT
	 
	11.1	 	This SBLC Facility constitutes the entire agreement between the Parties with respect to the
subject matter hereof and cancels all prior agreements whether oral or in writing.
	 
	11.2	 	In the event of any conflict between the terms, conditions and provisions of this SBLC
Facility
and the “Conditions Générales” contained in the application form (“Demande d’émission de
Stand-by Letter of Credit”), the terms, conditions and provisions of this SBLC Facility
shall
prevail.
	 
	 
	12	 	AMENDMENT
	 
	 	 	No amendment or variation of this Agreement shall be valid or binding on a Party unless
made in writing and signed by each Party.

 

7

 

	13	 	GOVERNING LAW AND JURISDICTION
	 
	13.1	 	The underlying SBLC are subject to the Uniform Customs and Practices for Documentary
Credits 1993 revision, ICC Publication n° 500.
	 
	13.2	 	This Stand-by Letter of Credit Facility shall be governed by French law. Any dispute relating
to the validity, interpretation or performance of this Facility shall be subject to the exclusive
jurisdiction of the Tribunal de Commerce de Paris.

Executed in Paris, on October 11, 2004, in two (2) original copies.

	 	 	 	 
	SCOR	 	DEUTSCHE BANK AG, Paris Branch

	 
	 
	/s/ M. Véronique Leroux	 	/s/ Mme. Edith Biskup-Kemps
	M. Véronique
Leroux
Title:  Vice President	 	Mme. Edith
Biskup-Kemps
Title:  Vice President
	 
	 
	 
	 	 	/s/ Mme. Brigitte Marsac-Martin
	 	 	Mme. Brigitte Marsac-Martin

Title:  Director

8EX-10.A

 

Exhibit 10(a)

AMENDMENT NO. 1

TO

ARROW ELECTRONICS STOCK OWNERSHIP PLAN

As Amended and Restated Effective January 1, 2002

          The Arrow Electronics Stock Ownership Plan, as amended and restated effective January 1, 2002,
is hereby amended in following respects, effective as of March 1, 2004, except as otherwise
provided herein, provided that clarifying amendments are effective as of the original effective
date of the provisions to which they relate:

	1.  	Section 1.4 is amended by adding the following to the end thereof:

or any duly authorized committee thereof (such as the Compensation
Committee).

	2.  	Section 1.6 is amended effective September 21, 2004 by deleting the words “by the Corporate
Governance Committee of the Board of Directors.”

	3.  	Section 1.33 (Year of Service) is renumbered Section 1.34, and a new Section 1.33 is
added to read as follows, effective December 31, 2004:

Year of Membership. With respect to any Member, a Year as of
the end of which an Account (including any predecessor account under
this Plan or a predecessor Plan described in Section 4.1) is or was
maintained on behalf of a Member.

	4.  	Section 1.33 (renumbered as Section 1.34) is amended to read as follows:

Year of Service. A Year during which an employee has not
less than one thousand (1,000) Hours of Service, excluding any Year
prior to the Year in which the employee attained age 18, and any
Year disregarded pursuant to Section 2.4 (relating to the effect of
One-Year Breaks in Service).

	5.  	Section 2.4 is amended to read as follows:

If a Member whose Account is not vested in whole or in part, or an
employee who has not become a Member, terminates employment and is
subsequently rehired after five or more consecutive One-Year Breaks
in Service, and the number of such consecutive One-Year Breaks in
Service exceeds the number of Years in which he had not less than
one thousand (1,000) Hours of Service (excluding Years disregarded
by a prior application of this Section 2.4 or any corresponding
provision of the Plan as previously in effect), he

 

 

shall upon rehire be treated as a new employee for all purposes of
this Plan and all Hours of Service and Years of Service previously
credited shall thereafter be disregarded for all purposes. In all
other cases, an employee who is rehired shall retain credit for his
prior Hours of Service and Years of Service in determining both
eligibility to become a Member and vesting, and if previously a
Member, shall qualify as a Member immediately upon rehire as an
Employee; and any such employee who meets the age and service
requirements for Membership in this Plan as of an Entry Date during
a period of absence from employment shall become a Member upon the
termination of such absence if he is then an Employee.

	6.  	Section 3.2 is amended to read as follows:

Amount of Contributions. For each Year that the Plan is in
effect, the Company and each other Employer shall contribute to the
Fund such amount (if any) as the Board of Directors shall determine
in its sole discretion. The Company may make the contribution so
determined for any other Employer as agent for and on behalf of such
Employer. Such contributions shall be transferred to the Trustee in
cash or in Common Stock, as the Board of Directors shall determine,
from time to time during the Year, or after the close of the Year,
but within the time prescribed by law for the filing of the
Company’s federal income tax return for such Year; provided,
however, that if the amounts so contributed shall be determined to
be less than the amount required by the preceding sentence, the
Board of Directors or the Company Representative may, in its
discretion, direct that all or a portion of the forfeitures under
Section 6.3 that have not been previously allocated to Members be
applied to meet all or a portion of any such shortfall in the amount
contributed. Any forfeitures not so applied shall be allocated at
the end of the Year of forfeiture as provided in Section 4.3.

	7.  	Section 4.9 is amended to read as follows, effective immediately:

     4.9 Voting of Common Stock; Tender Offers 

4.9.1 Members’ Voting Rights. Each Member shall have the
right to direct the Trustee as to the manner in which shares of
Common Stock allocated to his Account are to be voted. The Company
shall furnish the Trustee and the Members with notices and
information statements when voting rights are to be exercised, in
such time and manner as may be required by applicable law and the
Company’s Certificate of Incorporation and By-Laws. Such statements
shall be substantially the same for Members as for

2

 

holders of Common Stock in general. The Member may, in his
discretion, grant proxies for the exercise of his voting rights
under this Section 4.9 in accordance with proxy provisions of
general application. The Trustee shall vote such Common Stock in
accordance with the direction of the Member or, if permitted by the
Member, in its sole discretion. Fractional shares of Common Stock
allocated to Members’ Accounts shall be combined to the largest
number of whole shares and voted by the Trustee to reflect to the
extent possible the voting direction of the Members holding
fractional shares.

4.9.2 Vote by Trustee. Any Common Stock held in escrow
under Section 4.7 or in the Suspense Account under Section 15.7, or
otherwise not allocated to a Member’s Account at the time of
reference, and any Common Stock with respect to which a Member (or
his Beneficiary) has voting rights under this Section 4.9 that are
not timely and properly exercised, may be voted by the Trustee in
its sole discretion. Whenever the Trustee may vote any Common Stock
in its sole discretion under this Section 4.9, the Trustee shall do
so in a manner that the Trustee judges to be in the best interest of
the Members and their Beneficiaries. This may include, if the
Trustee judges it appropriate, the voting of such Common Stock so as
to reflect the voting directions given by the Members with respect
to Common Stock with respect to which they have voting rights under
this Section 4.9.

4.9.3 Rights of Beneficiaries. All rights of Members under
this Section 4.9 shall, upon the death of a Member, be exercisable
by such Member’s Beneficiary until such time as the Member’s Account
shall have been fully distributed to such Beneficiary.

4.9.4 Tender Offers, etc. In the event of a tender offer
for Common Stock, the rules set forth above (with such modifications
as may be appropriate to reflect the difference between a vote and a
response to an offer) shall govern the response by the Trustee.
Accordingly, the Trustee shall make appropriate arrangements for the
Members (or their Beneficiaries) to be furnished with information
provided by the offeror or others to holders of Common Stock in
connection with the offer and advise the Members (or their
Beneficiaries) that the Trustee will respond to the offer with
respect to Common Stock allocated to each Member’s Account in
accordance with timely instructions provided by the Member (or
Beneficiary) to an agent appointed by the Trustee for the purpose in
accordance with the procedures prescribed by the Trustee. For any
Common Stock with respect to which a Member (or Beneficiary) fails
to provide such instructions, and any Common Stock not allocated to
a Member’s Account, the

3

 

Trustee shall either respond to the offer in such manner as it deems
prudent and in the best interests of the Members and their
Beneficiaries or appoint an independent fiduciary (who may serve as
a named fiduciary, an investment manager within the meaning of
section 3(38) of ERISA, or co-trustee for such purpose). The
Trustee shall also be entitled in its discretion to appoint an
independent fiduciary to vote shares of Common Stock with respect to
which no voting instructions are timely received by the agent
appointed by the Trustee in accordance with applicable procedures,
or which are not allocated to Members’ Accounts, in the event of a
proxy contest or similar major matter requiring a vote by Members.

	8.  	Section 6.3 is amended by revising the first sentence thereof to read as follows, effective
as of March 31, 2004:

The non-vested portion of a terminated Member’s Account shall be
forfeited on the last day of the calendar quarter (last day of the
Year for forfeitures occurring prior to January 1, 2004) coincident
with or next following the date of his Termination of Employment,
unless he is reemployed prior to such date.

	9.  	Section 6.4.1 is amended to read as follows, effective as of March 31, 2004:

The restoration of a portion of any Account shall be made from
forfeitures occurring at the end of the calendar quarter (end of the
Year for forfeitures occurring prior to January 1, 2004) in which
such restoration occurs, and if necessary, by a special Employer
contribution made for that purpose.

	10.  	Section 7.2 is amended to read as follows:

Distribution. Except for transfers to the Arrow Electronics
Savings Plan described in Section 7.3, distribution upon a
withdrawal pursuant to Section 7.1 (whether made directly to the
Member or in a direct rollover to an individual retirement
arrangement or other eligible retirement plan) shall be made in
whole shares of Common Stock, and effective December 19, 2003, cash
in lieu of any fractional shares, if applicable.

	11.  	Section 10.1 is amended by adding following sentence at the end thereof:

Effective September 21, 2004, the Compensation Committee of the
Board of Directors shall succeed to the duties of the Corporate
Governance Committee under this Section 10.1.

4

 

	12.  	Section 11.3 is amended by revising the second paragraph thereof to read as follows:

The Trustee shall invest the assets in the Fund in the Common Stock
of the Company. Notwithstanding the foregoing, the Trustee may make
such short-term fixed income investments as it shall deem necessary
to hold (i) cash contributions pending investment in Common Stock
when such contributions are made prior to settlement of trades, (ii)
amounts deemed necessary or advisable to fund the distribution in
respect of fractional shares of Common Stock in accordance with
Section 7.2, and (iii) the proceeds of sales of Common Stock pending
transfer of such proceeds to the Arrow Electronics Savings Plan in
accordance with Sections 4.11.4, 7.3, and 8.5.

	13.  	Effective as of January 1, 2002, Section 17.1.3 is redesignated as Section 17.1.2(d), and all
subsequent subsections of Section 17.1 are renumbered accordingly.

          IN WITNESS WHEREOF, this amendment has been adopted by the Company this 7 day of March, 2005,
pursuant to actions taken by the Committee (acting as Company Representative) at meetings on
November 25, 2003 and December 18, 2003.

	 	 	 	 	 	 	 
	ATTEST:	 	 	 	ARROW ELECTRONICS, INC.
	 
	 	 	 	 	 	 
	

	 	Peter S. Brown
	 	By:
	 	Paul J. Reilly
	

	 	Secretary
	 	 	 	Vice President and Chief Financial Officer
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	William E. Mitchell
	

	 	 	 	 	 	President and Chief Executive Officer

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]