Document:

ARW Exhibit 10.b Q3 '14

Exhibit 10(b)

ISSUING AND PAYING AGENCY AGREEMENT

US Commercial Paper Note Program of 
ARROW ELECTRONICS, INC.

This Agreement, dated as of October 20, 2014, sets forth the understanding by and among BNP Paribas, acting through its New York branch, as Issuing and Paying Agent (the “Agent”) and Arrow Electronics, Inc., as issuer (the “Issuer”), whereby the Agent has agreed to act (A) as issuing agent (the “Issuing Agent”) on behalf of the Issuer in connection with the Issuer’s US dollar-denominated commercial paper notes (the “Notes”), (B) as paying agent (the “Paying Agent”) to undertake certain obligations to make payments in respect of the Notes, and (C) as depository (the “Depository”) to receive certain funds on behalf of the Issuer, as set forth herein. The Agent has executed or will promptly hereafter execute a Letter of Representations (the “Letter of Representations”) with the Issuer and The Depository Trust Company (“DTC”) and a Certificate Agreement (the “Certificate Agreement”) with DTC which establishes or will establish, among other things, the procedures to be followed by the Agent in connection with the issuance and custody of book-entry Notes (the “Book-Entry Notes”).  References hereinafter to the “Agent” shall refer to the Agent in its respective capacities as Issuing Agent, Paying Agent and Depository.
This Agreement will govern the rights, powers, duties and obligations of the parties in connection with the issuance of the Notes and no implied covenants and obligations shall be read into this Agreement or any other agreement.
1.        Appointment of Agent. The Issuer hereby appoints the Agent and the Agent hereby agrees to act, on the terms and conditions specified herein and in the Letter of Representations and Certificate Agreement, as applicable, as Issuing Agent and Paying Agent for the Notes and Depository for the Note proceeds. 
2.         Supply of Book-Entry Notes.
(a)    Book-Entry Notes shall be issued as described in the Schedule attached to the Letter of Representations and shall be represented by one or more master notes (each, a “Master Note”). The Master Note shall be executed by manual or facsimile signature of an Authorized Representative (as such term is defined herein) of the Issuer in accordance with the Letter of Representations.  Pending receipt of issuing instructions pursuant to this Agreement, the Agent will hold the Master Note(s) in safekeeping for the account of the Issuer or DTC, as the case may be, in accordance with the Agent’s customary practice and the requirements of the Certificate Agreement.

Exhibit 10(b)

(b)    All Notes issued by the Issuer under this Agreement shall be short-term promissory notes exempt from the registration requirements of the Securities Act of 1933, as amended.  The Notes may be placed by dealers (the “Dealers”) pursuant to Section 3(c) hereof.
(c)    The Agent shall not have any obligation or duty (i) to monitor, determine or inquire as to compliance with or with respect to any securities laws (including but not limited to any United States federal or state or other securities laws), or (ii) obtain documentation on any transfers or exchanges of the Notes.
3.        Authorized Representatives; Electronic Instructions.
(a)    With the delivery of this Agreement, the Issuer is furnishing to the Agent, and from time to time thereafter may furnish to the Agent, and shall furnish to the Agent upon the Agent’s request, a certificate in the form of Exhibit A attached hereto (“Incumbency Certificate”) of a responsible officer of the Issuer certifying the incumbency and specimen signatures of officers or agents of the Issuer authorized to execute Master Notes on behalf of the Issuer, by manual or facsimile signature and/or to take other action hereunder on behalf of the Issuer (each an “Authorized Representative”).
(b)    Until the Agent receives a subsequent Incumbency Certificate of the Issuer, the Agent shall be entitled to rely on the last such Incumbency Certificate delivered to the Agent for purposes of determining the Authorized Representatives.  When the Agent reasonably believes in good faith that a signature has been given by an Authorized Representative, the Agent shall not have any responsibility to the Issuer to determine by whom or by what means a facsimile signature may have been affixed on the Master Note(s).  Any Master Note bearing the manual or facsimile signature of a person who is an Authorized Representative on the date such signature is affixed shall be binding on the Issuer after the authentication thereof by the Agent notwithstanding that such person shall have died or shall have otherwise ceased to hold his office on the date such Master Note is authenticated or delivered to the Agent.
(c)    The Issuer represents and warrants that each of its Authorized Representatives may appoint other officers, employees and agents (the “Delegates”), including without limitation any Dealers, to issue instructions to the Agent under this Agreement, and take other actions on its behalf hereunder; provided that notice of the appointment of each Delegate is delivered to the Agent in writing.  Each such appointment shall remain in effect unless and until revoked by the Issuer in a written notice to the Agent.
(d)    The Agent shall provide the Issuer or, if applicable, the Issuer’s Dealers, with access to the Agent’s US Issuing and Paying Agent System or other electronic means (collectively, the “System”) in order that the Agent may receive electronic instructions for the issuance of Notes. 

Exhibit 10(b)

Electronic instructions must be transmitted in accordance with the procedures furnished by the Agent to the Issuer or its Dealers in connection with the System. These transmissions shall be the equivalent to the giving of a duly authorized written and signed instruction which the Agent may act upon without liability.  In the event that the System is inoperable at any time, an Authorized Representative or a Delegate may deliver written, telephone or facsimile instructions to the Agent, which instructions shall be verified in accordance with any security procedures agreed upon by the parties.   
4.        Completion, Authentication of Book-Entry Notes.
(a)    Subject to the terms and conditions hereof, upon the Agent’s receipt of written or telecopy instructions from an Authorized Representative (or in such manner as the Agent then employs as the Agent’s normal business practices), the Agent shall give issuance instructions for the issuance of Book-Entry Notes to DTC in a manner set forth in, and take other actions as are required by, the Letter of Representations and the Certificate Agreement. 
If instructions are received by the Agent by 1:30 p.m. New York City time (before DTC cut off), on a Business Day (as such term is defined herein), for Book-Entry issuance, the Agent shall give issuance instructions for the issuance of Book-Entry Notes to DTC on the same day. 
For the purpose of this Agreement, “Business Day” shall mean a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required to close under the laws or regulations.
(b)    Instructions for the issuance of Book-Entry Notes shall include the following information with respect to each Book-Entry Notes:
(i)         the date of issuance of each such Book-Entry Notes (which shall be a Business Day); and
(ii)     the maturity date of each such Book-Entry Notes; provided that the Authorized Representative shall ensure that such date is a Business Day. 
(c)    Except as may otherwise be provided in the Letter of Representations, the Agent agrees that all Notes will be issued as Book-Entry Notes and that no Certificated Notes (as such term is defined herein) shall be exchanged for Book-Entry Notes unless and until the Agent has received instructions from DTC in accordance with Section 4(e).
(d) It is understood that the Agent is not under any obligation to assess or review the financial condition or credit worthiness of any person who has purchased Notes or to advise the Issuer as 

Exhibit 10(b)

to the results any such appraisal or investigation the Agent may have conducted on the Agent’s own or of any adverse information concerning any such person that may in any way have come to the Agent’s attention.
(e)    It is understood that DTC may request the delivery of certificated Notes not in book-entry form (“Certificated Notes”) in exchange for Book-Entry Notes upon the termination of DTC’s services pursuant to the DTC Letter of Representations.  Accordingly, upon notice of such termination, the Issuer shall deliver to the Agent sufficient blank Certificated Notes and the Agent is authorized to complete and deliver the Certificated Notes in partial or complete substitution for Book-Entry Notes of the same face amount and maturity as requested by DTC.  Upon the completion of delivery of any such Certificated Notes, the Agent shall annotate the Agent’s records regarding the Master Note with respect to such Book-Entry Notes to reflect a corresponding reduction in the face amount of the outstanding Book-Entry Notes. The Agent’s authority to so complete and deliver such Certificated Notes shall be irrevocable at all times from the time a Book-Entry Note is purchased until the indebtedness evidenced thereby is paid in full.
5.        Proceeds.
(a)    All proceeds received by the Agent in connection with the sale of Notes shall be credited on the day of the sale to the Agent’s account for the conduct of its issuing and paying agency business (the “Agent IPA Account”).  Such proceeds received by the Agent in connection with the sale of Notes shall be transferred to an account of the Issuer specified in a written instruction received by the Agent from an Authorized Representative of the Issuer on the day of the sale following receipt to the Agent IPA account. 
(b)    The Agent shall not have any liability or responsibility to invest or pay interest on any funds held in the Agent IPA Account.  Any and all funds received by the Agent shall be in US dollars.
6.              Payment of Matured Notes.

(a)    No later than 12pm, New York City time, on the date that any Notes are scheduled to mature, the Issuer shall have transferred as immediately available funds to the Agent the amount of Notes maturing on such date.  When any matured US Note is presented to the Agent by DTC for payment, payment shall be made to the extent funds are available in the Agent account.  
(b)    After payment of any matured Book-Entry Notes, the Agent shall annotate the Agent’s records to reflect the face amount of Book-Entry Notes outstanding in accordance with the Letter of Representations.  

Exhibit 10(b)

(c)    The Agent shall not be accountable for the use or application by any person of disbursements properly made by the Agent in conformity with the provisions of this Agreement.

7.        Representations and Warranties.  
The Issuer hereby represents and warrants to the Agent, and, each request to issue Master Notes and Notes shall constitute the Issuer’s continuing representation and warranty as follows:
(a)    This Agreement is, and all Master Notes and Notes delivered to the Agent pursuant to this Agreement will be, duly authorized, executed and delivered by the Issuer.
(b)    The issuance and delivery of the Master Notes and the Notes will not violate any state or Federal law and the Master Notes and the Notes do not require registration under the Securities Act of 1933, as amended.
(c)    This Agreement sets forth (and the Master Notes and the Notes, when completed, authenticated, delivered and paid for by dealers or investors pursuant hereto, set forth), the Issuer’s legal, valid and binding obligations enforceable against the Issuer in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the rights of creditors generally and by general principles of equity.
(d)    The Issuer is duly organized and validly existing under the laws of its jurisdiction of incorporation, and no liquidation, dissolution, bankruptcy, windup or similar proceedings have been instituted with respect to the Issuer. 
(e)    The Issuer has, and at all relevant times has had, all necessary power and authority to execute, deliver and perform this Agreement and to issue the Master Notes and the Notes.
(f)    All actions on the part of the Issuer which are required for the authorization of the issuance of the Master Notes and the Notes and for the authorization, execution, delivery and performance of this Agreement do not require the approval or consent of any holder or trustee of any indebtedness or obligations of the Issuer.
(g)    The issuance of Master Notes and Notes by the Issuer (i) does not and will not contravene any provision of any law, regulation or rule applicable to the Issuer, and (ii) does not and will not conflict with, breach or contravene the provisions of any contract or other instrument binding upon the Issuer.

Exhibit 10(b)

8.        Reliance on Instructions.  Except as otherwise set forth herein, the Agent shall incur no liability to the Issuer in acting hereunder upon written, electronic (including instructions delivered via the System), telephonic or other instructions or notices contemplated hereby which the Agent reasonably believed or believes in good faith to have been given by an Authorized Representative. In the event a discrepancy exists with respect to such instructions, the telephonic instructions as recorded by the Agent will be deemed the controlling and proper instructions, unless such instructions are required by this Agreement to be in writing or have not been recorded by the Agent as contemplated by the next sentence.  It is understood that all telephonic instructions may be recorded by the Agent, and the Issuer hereby consents to such recording.
Whenever the Agent shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Agent (unless other evidence be herein specifically prescribed) may, in good faith, rely upon a certificate signed by an Authorized Representative of the Issuer delivered to the Agent.
In respect of this Agreement, the Agent shall not have any duty or obligation to verify or confirm that the person sending instructions, directions, reports, notices or other communications or information by electronic transmission is, in fact, a person authorized to give such instructions, directions, reports, notices or other communications or information on behalf of the party purporting to send such electronic transmission; and, in the absence of gross negligence or willful misconduct by the Agent, the Agent shall not have any liability for any losses, liabilities, costs or expenses incurred or sustained by any party as a result of such reliance upon or compliance with such instructions, directions, reports, notices or other communications or information.
The Agent shall not be bound to make any investigation into the facts or matters stated in any instruction, resolution, certificate, statement, instrument, direction or other document furnished to the Agent hereunder.
9.        Maturity; Cancellation of Unissued Notes.  After payment of any matured Book-Entry Notes, the Agent shall annotate the Agent’s records to reflect the face amount of Book-Entry Notes outstanding in accordance with the Letter of Representations.  After payment of any matured certificated Notes, the Agent shall cancel and return such Notes to the Issuer.  Promptly upon the written request of the Issuer, the Agent agrees to cancel and return to the Issuer all unissued certificated Notes in the Agent’s possession at the time of such request.
10.    Notices; Addresses.
(a)    All notices, instructions, directions and other communications to the Agent shall be (except to the extent otherwise expressly provided) in writing (which may be facsimile) and shall 

Exhibit 10(b)

be addressed to the Agent as follows, or to such other address as the Agent may have previously specified to the Issuer hereto, at:
BNP Paribas, New York Branch
787 Seventh Avenue
New York, NY 10019, USA
Attention: Corporate Trust Services / James Jones
Facsimile No.: +1 201 885 4017
Email: cts_us_operations@us.bnpparibas.com
(b)    All notices, instructions, directions and other communications to the Issuer shall (except to the extent otherwise expressly provided) be in writing (which may be facsimile) and shall be addressed as follows, or to such other address as the Issuer may have previously specified to the Agent1:
Arrow Electronics, Inc.
50 Marcus Drive
Melville, NY 11747
Treasury Manager
Telephone: 631-847-5409
Facsimile:   631-847-5379

 (c)    Notices shall be deemed delivered when actually received at the address specified above and shall be confirmed by telephone, when possible. 
11.             Liability.  
(a)    Neither the Agent nor the Agent’s officers, employees or agents shall be liable for any act or omission hereunder, except in the case of gross negligence or willful misconduct.  The Agent’s duties and obligations and those of the Agent’s officers, employees and agents shall be determined by the express provisions of this Agreement, the Letter of Representations and the Certificate Agreement (including the documents referred to therein), and the Agent and the Agent’s officers, employees and agents shall be responsible for the performance of only such duties and obligations as are specifically set forth herein and therein, and no implied covenants shall be read into any such document against the Agent or the Agent’s officers, employees or agents.  In acting hereunder and in connection with the Notes, the Agent shall act solely as banker for and agent of the Issuer and will not thereby assume any obligations towards or relationship of agency or trust for any holders of the Notes.

Exhibit 10(b)

(b)    Neither the Agent nor the Agent’s officers, employees or agents shall be required to ascertain whether the issuance or sale of Notes and the execution of this Agreement (or any amendment hereto) is in compliance with any applicable law, regulation or rule by which the Issuer is bound, or with any other agreement, ordinance, resolution or other undertaking or document to which the Issuer is a party or by which it is or its property may be bound (whether or not the Agent is a party to such other agreement).  
(c)    The Agent may consult at the Issuer’s expense with a nationally recognized counsel of the Agent’s selection, and any written opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted to be taken by the Agent, in the absence of gross negligence or willful misconduct on the Agent’s part, in reliance on such advice or opinion.
(d)    In no event shall the Agent be liable for special, indirect, consequential or punitive loss or damage of any kind whatsoever (including but not limited to lost profits) even if the Agent has been advised of the likelihood of such loss or damage and regardless of the form of action.
12.    Indemnity.  The Issuer hereby agrees to indemnify and hold the Agent, the Agent’s employees and any of the Agent’s officers harmless, from and against, and the Agent shall not be liable for, any and all direct losses, liabilities (including liabilities for penalties), actions, suits, judgments, demands, damages, costs and expenses of any nature including, without limitation, interest and reasonable attorneys’ fees and expenses, arising out of or resulting from the exercise of the Agent’s rights and/or the performance of the Agent’s duties (or those of the Agent’s officers and employees) hereunder; provided, however, that the Issuer shall not be liable to indemnify or pay the Agent with respect to any loss, liability, action, suit, judgment, demand, damage, cost or expense that results from the Agent’s gross negligence or willful misconduct or that of the Agent’s officers, employees or agents.  The foregoing indemnity includes, but is not limited to, any action taken or omitted to be taken by the Agent upon telephonic or other electronically transmitted instructions (authorized herein) received by the Agent from, or believed by the Agent in good faith to have been given by, the proper person or persons authorized by the Issuer. The provisions of this Section 12 shall survive (i) the Agent’s resignation or removal hereunder, (ii) the termination of this Agreement and/or (iii) the payment of the Notes. 
13.    Termination.
(a)    This Agreement may be terminated at any time by either the Agent or the Issuer by 30 days prior written notice to the other; provided that the Agent agrees to continue acting as Issuing Agent, Paying Agent and Depository hereunder until such time as the Agent’s successor has been 

Exhibit 10(b)

selected and has entered into an agreement with the Issuer to that effect. Such termination shall not affect the respective liabilities or rights of the parties hereunder arising prior to such termination.
(b)    If no successor has been appointed within 30 days of such notice, the Agent shall have the right to appoint a successor by and on behalf of the Issuer or petition a court of competent jurisdiction for the appointment of a successor issuing and paying agent. The Agent shall be reimbursed for any and all expenses in connection with any such petition and appointment.
(c)    At the written request of the Issuer, on or after the Business Day following the date of termination of this Agreement, the Agent shall destroy all unissued Notes in the Agent’s possession (or at the written request of the Issuer, transfer the Notes to the Issuer or the successor Issuing Agent), and shall transfer to the Issuer all funds, if any, then on deposit in the Agent IPA Account in accordance with the written instructions of the Issuer.  The Agent shall promptly notify the Issuer of all Notes so destroyed.
(d)    The Issuer shall not be responsible for any Notes issued by the Agent after the termination of this Agreement.
14.    Amendments and Modifications. No amendment or modification or waiver of any provision of this Agreement shall be effective unless the same shall be in writing and signed by all the parties hereto.
15.    Binding Effect; Assignment.  This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective successors, including successors by merger, and assigns; provided, however, that no party hereto may assign any of its rights or obligations hereunder, except with the prior written consent of the other parties hereto.
16.    Governing Law; Waiver of Jury Trial; Jurisdiction.
(a)    THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THE STATE OF NEW YORK.  EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THE NOTES OR THIS AGREEMENT.
(b)    Each party irrevocably and unconditionally submits to the exclusive jurisdiction of the United States Federal courts located in the Borough of Manhattan and the courts of the State of New York located in the Borough of Manhattan with respect to any legal suit, action or proceeding based on or arising out of this Agreement or the Notes.  The Issuer agrees that any judgment 

Exhibit 10(b)

relating to this Agreement or the Notes obtained in the foregoing courts may be enforced or executed in any such other court of competent jurisdiction and irrevocably waives to the extent permitted by applicable law, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any action or proceeding with respect to this Agreement any claim (i) that it is not personally subject to the jurisdiction of the above-named courts for any reason other than the failure to serve process in accordance with this Section 16, (ii) that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise), and (iii) to the fullest extent permitted by applicable law that (1) the suit, action or proceeding in such court is brought in an inconvenient forum, (2) the venue of such suit, action or proceeding is improper and/or (3) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.
17.    Execution in Counterparts.  This Agreement may be executed in any number of counterparts; each counterpart, when so executed and delivered, shall be deemed to be an original; and all of which counterparts, taken together, shall constitute one and the same agreement.
18.    Headings.  Section headings used in this Agreement are for convenience of reference only and shall not affect the constitution or interpretation of this Agreement.
19.    Compensation and Expenses. The Issuer shall pay the Agent from time to time following the execution of this Agreement such compensation for all services rendered by the Agent hereunder as agreed between the Agent and the Issuer. The Issuer shall reimburse the Agent upon the Agent’s request for all reasonable expenses, disbursements and advances incurred or made by the Agent in accordance with the provisions of this Agreement except any expense or disbursement attributable to the Agent’s gross negligence or willful misconduct.
20.    Miscellaneous.
(a)    No provision of this Agreement shall require the Agent to extend credit; to provide any financial accommodation to the Issuer or to incur any third party liability in the performance of any of the Agent’s duties hereunder or in the exercise of any of the Agent’s duties hereunder or in the exercise of any of the Agent’s rights and powers hereunder.
(b)    The Agent shall not be required to give any bond or surety in respect of the execution of the obligations created hereby or the powers granted hereunder.
(c)    The Agent makes no representation as to, and shall have no responsibility for, the correctness of any statement contained in any offering materials or contained in this Agreement 

Exhibit 10(b)

that is attributable to the Issuer, or the validity or sufficiency of, this Agreement, the Notes or any documents or instruments referred to in this Agreement or as to or for the validity or collectability of any obligation contemplated by this Agreement other than those that are due by the Agent.  
(d)    The rights, privileges, protections, immunities and benefits given to the Agent, including, without limitation, the Agent’s right to be indemnified, are extended to, and shall be enforceable by the Agent in each of the Agent’s capacities hereunder, and each agent, custodian and other person employed to act hereunder.
(e)    The Agent may accept deposits from and generally engage in any kind of banking or other business with the Issuer and may act on, or as depository, trustee or agent for, any committee or body of holders of the Notes or other obligations of the Issuer, notwithstanding the Agent’s appointment hereunder.
 (f) Unless otherwise required by law, Money held by the Agent hereunder need not be segregated from other funds except to the extent required by law or the specific provisions hereof or of any other agreement between the Agent and the Issuer.
(g)    The parties hereto acknowledge that in accordance with Section 326 of the USA Patriot Act, the Agent, like all financial institutions and in order to help fight the funding of terrorism and money laundering, are required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Agent. The Issuer agrees that it will provide or cause to be provided to the Agent such information as it may be required to provide to satisfy the requirements of the USA Patriot Act, within the limits permitted by any applicable law, regulation or rule by which the Issuer is bound.
(h)    The Agent shall have no responsibility or liability for any tax withholding in relation to the Notes or this Agreement and shall not be responsible for the preparation or filing of any tax reporting for or on behalf of the Issuer.
21.    Force Majeure.  In no event shall either party be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities or communications services; it being understood that in the case of the Agent, it shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

Exhibit 10(b)

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on their behalf by duly authorized officers as of the day and year first-above written.        

	
			
	BNP Paribas, acting through its New York branch
	 
	Arrow Electronics, Inc.

	 
	 
	 

	 
	 
	 

	/s/ Claudine Gallagher
	 
	/s/ Gregory Hanson

	Name: Claudine Gallagher
	 
	Name: Gregory Hanson

	Title: Head of North America BNP Paribas Securities Services
	 
	Title: VP and Treasurer

	 
	 
	 

	 
	 
	 

	 
	 
	 

	/s/ Cyril Guerrier
	 
	/s/ Terry Rasmussen

	Name: Cyril Guerrier
	 
	Name: Terry Rasmussen

	Title: Managing Director, BNP Paribas
	 
	Title: Assistant Treasurer

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	/s/ Paul J. Reilly

	 
	 
	Name: Paul J. Reilly

	 
	 
	Title: Executive VP and CFO

Exhibit 10(b)

Exhibit A
FORM OF INCUMBENCY CERTIFICATE
The undersigned, G.Tarpinian, being the Asst. Secy. of Arrow Electronics, Inc. (the "Issuer"), does hereby certify that the individuals listed below are qualified and acting officers of the Issuer as set forth in the right column opposite their respective names and the signatures appearing in the extreme right column opposite the name of each such officer is a true specimen of the genuine signature of such officer and such individuals have the authority to execute documents to be delivered to, or upon the request of, BNP Paribas, acting through its New York branch, as Issuing Agent, Paying Agent and Depository (the “Agent”) under the Issuing and Paying Agency Agreement dated as of [Oct. 20], 2014, by and among the Issuer and the Agent.
	
			
	Name
	Title
	Signature

	Gregory Hanson
	VP and Treasurer
	/s/ Gregory Hanson

	 
	 
	 

	Terry Rasmussen
	Assistant Treasurer
	/s/ Terry Rasmussen

	 
	 
	 

	Paul J. Reilly
	Executive VP and CFO
	/s/ Paul J. Reilly

IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Certificate as of the 15 day of Oct., 2014.

_/s/ Gregory Tarpinian____        
Name: Gregory Tarpinian                    
Title: Assistant SecretaryEX-10.11

 Exhibit 10.11 

Amended and Restated 
 John B. Sanfilippo &
Son, Inc. 
 Sanfilippo Value Added Plan 
  

	I.	Purposes of the Plan 

 The purpose of the Plan is to more closely link incentive cash
compensation to the creation of stockholder value. The Plan is intended to foster a culture of performance and ownership, promote employee accountability, and establish a framework of manageable risks imposed by variable pay. The Plan is also
intended to reward continuing improvements in stockholder value with an opportunity to participate in a portion of the wealth created. The Plan is amended and restated as of August 27, 2014 to be effective for the 2015 Plan Year and thereafter.
All awards under the Plan are intended to qualify as “Cash-Based Awards” under the John B. Sanfilippo & Son, Inc. 2014 Omnibus Plan, as may be amended from time to time (the “Omnibus Plan”), and at the Committee’s
discretion may be designated as “performance-based compensation” under Section 162(m) of the Code and any rules and regulations thereunder. In the event of a conflict between the terms of this Plan and the Omnibus Plan, the terms of
this Plan will govern. 
 II. Definitions 

“Actual Improvement” means the annual change in SVA, as determined under Section V(B)(1) of the Plan, which can be positive or
negative. 
 “Annual Salary” means, with respect to a Participant, his or her final and actually paid (or fully earned, but
not yet paid) annual or pro-rated (in the case of employment for less than the full Plan Year) base salary in a particular fiscal year of the Company. 

“Award” has the meaning set forth in the Omnibus Plan. 

“Award Agreement” has the meaning set forth in the Omnibus Plan. 

“Board” means the Board of Directors of the Company. 

“Bonus Declared” means the annual or pro-rated (in the case of employment for less than the full Plan Year) bonus amount for a
Plan Year, as determined under Section V of the Plan. 
 “Bonus Interval” means the amount of SVA growth or diminution as a
variance from Target SVA Improvement that would either (A) result in two times the Target Bonus for SVA performance above Target SVA Improvement; or, (B) result in zero times the Target Bonus for SVA performance below Target SVA
Improvement. 
 “Capital Charge” means the Cost of Capital multiplied by the Company’s invested capital, as determined
by the Committee in its sole discretion. 
 “Cause” means, in the judgment of the Committee, (A) the breach by the
Participant of any employment agreement, employment arrangement or any other agreement with the Company or a Subsidiary, (B) the Participant engaging in a business that competes with the Company or a Subsidiary, (C) the Participant
disclosing business secrets, trade secrets or confidential information of the Company or a Subsidiary to any party, (D) dishonesty, misconduct, fraud or disloyalty by the Participant, (E) misappropriation of corporate funds,
(F) failure to substantially perform his or her duties as an employee (for reasons other than physical or mental illness) or (G) such other conduct by the Participant of an insubordinate or criminal nature as to have rendered the continued
employment or association of the Participant incompatible with the best interests of the Company and its Subsidiaries. 
 “Change in
Control” means the first date on which one of the following events occurs: 
 A. the consummation of a merger or consolidation of
the Company with or into another entity or any other corporate reorganization, if more than 50% of the combined voting power of the continuing or surviving entity’s securities outstanding immediately after such merger, consolidation or other
reorganization is owned by persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization; 

B. the sale, transfer or other disposition of all or substantially all of the Company’s assets other than a sale or disposition by the
Company of all or substantially all of the Company’s assets to an entity, where more than 50% of the combined voting power of such entity’s securities outstanding immediately after such sale or disposition is owned by persons who were not
stockholders of the Company immediately prior to such sale or disposition; 

 C. a change in the composition of the Board, as a result of which fewer than one-half of the
directors following such change in composition of the Board are directors who either (1) had been directors of the Company on the date 12 months prior to the date of the event that may constitute a Change in Control (the “Original
Directors”) or (2) were elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the aggregate of (a) the Original Directors who were still in office at the time of the election or
nomination and (b) the directors whose election or nomination was previously approved pursuant to this Clause (2); or 
 D. any
transaction as a result of which any “person” or “group” (as such terms are used in Section 13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders, or any group that is controlled by Permitted
Holders, is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) (during the 12 month period ending on the date of the most recent acquisition of voting securities), directly or indirectly, of the
voting securities of the Company representing at least 30% of the total voting power of the Company (with respect to all matters other than the election of directors) represented by the Company’s then outstanding voting securities. For purposes
of this Clause (D), the term “transaction” shall include any conversion of the Class A Stock, whether or not such conversion occurs in connection with a sale, transfer or other disposition of such Class A Stock. 

For purposes of this definition: (1) the term “person” shall exclude: (a) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or a Subsidiary; and (b) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Common Stock (it being
understood that for purposes of subsequently determining whether a Change in Control has occurred, all references to the “Company” in the definition of Change in Control shall be deemed to be references to the Company and/or such
corporation, as applicable); (2) the term “group” shall exclude any group controlled by any person identified in Clause (1)(A) above and (3) the term “control” shall mean the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of a person, whether through the ownership of voting securities, by contract, or otherwise, and the terms “controlling” and “controlled” have meanings
correlative thereto. 
 Except as otherwise determined by the Committee, any spin-off of a division or subsidiary of the Company to its
stockholders will not constitute a Change in Control of the Company. 
 “Class A Stock” means the Class A Common Stock,
$.01 par value per share, of the Company. 
 “Code” means the Internal Revenue Code of 1986, as amended. 

“Committee” has the meaning set forth in Section IV(A). 

“Common Stock” means the Common Stock, par value $.01 per share, of the Company, and any other shares into which such Common
Stock shall thereafter be exchanged by reason of a recapitalization, merger, consolidation, split-up, combination, exchange of shares or the like. 

“Company” means John B. Sanfilippo & Son, Inc., a Delaware corporation, and its successors and assigns. 

“Cost of Capital” means the Company’s assumed cost of equity plus its cost of debt, expressed as a percentage, using a
weighted average of the expected return on the Company’s debt and equity capital, all as determined in the sole discretion of the Committee. Cost of Capital is intended to reflect the rate of return that an investor could earn by choosing
another investment with equivalent risk. 
 “Declared Bonus Multiple” means the multiple determined in accordance with
Section V(B)(4) of the Plan for purposes of determining a Participant’s Bonus Declared. 
 “Disability” means a mental
or physical condition which, in the opinion of the Committee, renders a Participant unable or incompetent to carry out the job responsibilities which such Participant held or tasks to which such Participant was assigned at the time the disability
was incurred and which is expected to be permanent or for an indefinite period. With respect to any amount payable under the Plan that constitutes deferred compensation under Code Section 409A and is subject to Code Section 409A, the
Committee may not find that a Disability exists with respect to the applicable Participant unless, in the Committee’s opinion, such Participant is also “disabled” within the meaning of Code Section 409A. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Excess Improvement” has the meaning set forth in Section V(B)(2). 

  
 2 

 “Guidelines” has the meaning set forth in Section IV(B)(3). 

“NOPAT” means the Company’s net operating profit after tax, as determined by the Committee from the Company’s
audited financial statements. 
 “Omnibus Plan” has the meaning set forth in Section I. 

“Participant” has the meaning set forth in Section III. 

“Performance-Based Compensation” has the meaning set forth in the Omnibus Plan. 

“Permitted Holder” means: 

A. Jasper B. Sanfilippo (“Jasper”), Mathias A. Valentine, (“Mathias”), a spouse of Jasper, a spouse of
Mathias, any lineal descendant of Jasper or any lineal descendant of Mathias (collectively referred to as the “Family Members”); 

B. a legal representative of a deceased or disabled Family Member’s estate, provided that such legal representative is a Family
Member; 
 C. a trustee of any trust of which all the beneficiaries (and any donees and appointees of any powers of appointment held
thereunder) are Family Members and the trustee of which is a Family Member; 
 D. a custodian under the Uniform Gifts to Minors Act or
Uniform Transfers to Minors Act for the exclusive benefit of a Family Member, provided that such custodian is a Family Member; 
 E.
any corporation, partnership or other entity, provided that at least 75% of the equity interests in such entity (by vote and by value) are owned, either directly or indirectly, in the aggregate by Family Members; 

F. any bank or other financial institution, solely as a bona fide pledgee of shares of Class A Stock by the owner thereof as collateral
security for indebtedness due to the pledgee; or 
 G. any employee benefit plan, or trust or account held thereunder, or any savings or
retirement account (including an individual retirement account), held for the exclusive benefit of a Family Member. 

“Plan” means the Amended and Restated John B. Sanfilippo & Son, Inc. Sanfilippo Value Added Plan. 

“Plan Year” means the fiscal year of the Company. 

“Retirement” means a Participant’s termination of employment, other than for Cause, if the Participant has either:
(A) attained age 60 and completed 5 years of service with the Company or any Subsidiary, or (B) attained age 55 and completed 10 years of service with the Company or any Subsidiary. 

“Section 409A” means Code Section 409A and all applicable rules and regulations related thereto. 

“Shortfall” has the meaning set forth in Section V(B)(3). 

“Subsidiary” means any corporation at least eighty percent (80%) of the outstanding voting stock of which is owned by the
Company. 
 “SVA” means the “stockholder value added” of the Company determined each Plan Year by deducting the
Company’s Capital Charge from NOPAT, as determined by the Committee. 
 “Target Bonus” means the Bonus Declared a
Participant would be paid for a Plan Year if Actual Improvement equaled Target SVA Improvement, determined by multiplying a Participant’s Annual Salary for that Plan Year by the Participant’s Target Bonus Percentage for that Plan Year.

 “Target Bonus Percentage” means the percentage of a Participant’s Annual Salary, as established or approved by the
Committee for purposes of determining a Participant’s Target Bonus. 

  
 3 

 “Target SVA Improvement” means the targeted improvement in annual SVA growth as
determined by the Committee pursuant to Section V(A)(1)(c). 
 “Termination for Cause” means a determination by the
Committee following a Participant’s termination of employment for any reason that, prior to such termination of employment, circumstances constituting Cause existed with respect to such Participant. 

“Termination Year” has the meaning set forth in Section VI(B)(1)(a). 

 

	III.	Eligibility 

 An employee of the Company or a Subsidiary who, individually or as part of
a group, is selected by the Committee to be eligible to participate in the Plan for the Plan Year shall become a participant as of the first day of such Plan Year, unless otherwise determined by the Committee (each, a
“Participant”). Except as provided in this Section III, no Participant or other employee of the Company or any Subsidiary shall, at any time, have a right to participate in the Plan for any Plan Year, notwithstanding having
previously participated in the Plan. 
  

	IV.	Administration 

  

	 	A.	The Committee 

 The Board hereby appoints the Compensation Committee of the Board to be
the “Committee” hereunder unless a new, independent committee is selected by the Board. For this purpose, a new Committee will be deemed independent if it is comprised solely of two or more directors who are “independent
directors” within the meaning of the The Nasdaq Stock Market, Inc.’s rules and regulations. The Board hereby delegates to the Committee all compensation review and approval powers associated with the Plan and the Guidelines. 

 

	 	B.	Powers 

 The Committee shall have full and exclusive discretionary power to: 

1. Interpret and administer the Plan, 

2. Determine those employees of the Company and its Subsidiaries who are eligible to participate in the Plan, 

3. Adopt such rules, regulations, and guidelines (including the establishment of performance criteria) the “Guidelines”, for
administering the Plan as the Committee may deem necessary or proper, including the full discretion not to make payment of any or all of the Bonus Declared determined in Section VI, and 

4. Except to the extent prohibited by applicable law or the applicable rules of a stock exchange, or inconsistent with the Company’s
Amended and Restated Bylaws, Restated Certificate of Incorporation or Committee charter, allocate all or any portion of its responsibilities and powers under this Plan to any one or more of its members or delegate all or any part of its
responsibilities and powers to any person or persons selected by it. Such delegation shall include, unless limited by its terms, all of the responsibility and authority held by the Committee hereunder, and any such allocation or delegation may be
revoked by the Committee at any time. 
  

	 	C.	Adjustment to Payments 

 1. If a Participant violates any Company policy, the Company
retains the right to declare forfeited any award granted to a Participant hereunder, to the extent it remains unpaid; provided, however, that in the event that a Participant’s prior Plan Year’s Bonus Declared has not yet been
paid at the time the Company declares such Participant’s award forfeited, such forfeited amounts shall be distributed to other Participant(s) (other than with respect to Awards designated as Performance-Based Compensation) on a pro-rata basis,
or distributed to other Participant(s) as otherwise determined by the Committee. 
 2. If (a) the Company is required to prepare an
accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under securities laws, (b) the Committee determines a Termination for Cause occurred with respect to a Participant or (c) the
Company is required by law, rule or regulation or the rules of the stock exchange on which the Company’s securities are listed to “clawback” any amounts paid hereunder, the Committee may require any or all of the following:
(i) any award granted to the Participant hereunder, to the extent it remains unpaid at the time of the restatement, be forfeited; provided, however, that in the event that a Participant’s prior Plan Year’s Bonus Declared
has not yet been paid at the time the Committee declares such Participant’s award forfeited, such forfeited amounts shall be distributed to other Participant(s) on a pro-rata basis, or distributed to other Participant(s) as otherwise determined
by 

  
 4 

 
the Committee; and (ii) the Participant shall pay to the Company in cash all of the amounts paid hereunder during the three-year period (or such other period as determined by the Committee)
prior to the date the Company is required to prepare the financial restatement based on the erroneous data or the Participant’s termination of employment, as the case may be, together with any other amounts which may be required to be paid
under any law, rule or regulation or the rules of the stock exchange on which the Company’s securities are listed. 
  

	 	D.	Third-Party Advisors 

 The Committee may employ attorneys, consultants, accountants, and
other persons. The Board, Committee, the Company and its officers shall be entitled to rely upon the advice or opinion of such persons. 
  

	 	E.	Binding Effect of Committee Actions 

 All actions taken and all interpretations and
determinations made by the Committee shall be final and binding upon the Participants, the Company, and all other interested persons. No member of the Committee shall be personally liable for any action, determination, or interpretations made in
good faith with respect to the Plan. All members of the Committee shall be fully protected and indemnified by the Company, to the fullest extent permitted by applicable law, in respect of any such action, determination, or interpretation of the
Plan. 
  

	 	F.	Foreign Jurisdiction 

 The Committee shall have the discretion to modify or amend the
Plan, or adopt additional terms and/or conditions, as may be deemed necessary or advisable in order to comply with the local laws and regulations of any jurisdiction. 
  

	V.	Determination of Bonus Declared 

  

	 	A.	Determination of SVA and Actual Improvement 

 1. Beginning of Plan Year
Determinations. At or around the beginning of each applicable Plan Year, the following determinations shall be made: 
 a) The Committee
shall determine, or approve the determination of, the Company’s annual SVA as of the end of the preceding Plan Year. 
 b) The
Committee shall determine or approve Target Bonus Percentages for each Participant and the Company’s Cost of Capital for the applicable Plan Year. 

c) The Committee shall establish the Target SVA Improvement and the Bonus Interval for the applicable Plan Year. 

d) The Committee shall adopt Guidelines for the applicable Plan Year. 

e) Participation for a given Plan Year shall be evidenced by an Award Agreement, describing applicable terms and conditions of participation
for that Plan Year, including whether such award is intended to be treated as Performance-Based Compensation. 
 2. End of Plan Year
Determinations. After the end of each applicable Plan Year, the following determinations shall be made: 
 a) The Committee shall
determine and certify the Company’s annual SVA as of the end of the Plan Year and the resulting Actual Improvement. 
 b) The Committee
shall determine, or approve the determination of, the Declared Bonus Multiple for such Plan Year, consistent with the terms of the Plan and the Guidelines thereunder. 
  

	 	B.	Determination of Bonus Declared 

 Each Participant’s Bonus Declared, if any, shall
be determined for a Plan Year according to the following: 
 1. The Actual Improvement in SVA for a Plan Year shall be determined by
subtracting the SVA for the immediately preceding Plan Year (or such other amount as determined by the Committee) from the SVA for the Plan Year. 

  
 5 

 2. If the Actual Improvement exceeds the Target SVA Improvement, the amount of that excess shall
be the “Excess Improvement”; 
 3. If the Target SVA Improvement exceeds the Actual Improvement, the amount of that excess
shall be the “Shortfall”; 
 4. The Declared Bonus Multiple shall be determined by comparing the Excess Improvement or
Shortfall to the Target SVA Improvement and Bonus Interval, according to the following: 
 a) If the Actual Improvement equals the Target SVA
Improvement, the Declared Bonus Multiple shall equal one (1). 
 b) If the Actual Improvement exceeds the Target SVA Improvement, the
Declared Bonus Multiple shall equal the Excess Improvement divided by the Bonus Interval, plus one (1); provided, however, that if the Declared Bonus Multiple is greater than 2.0, then it shall still be deemed to be 2.0 for the purposes of
this Plan and the Guidelines. 
 c) If the Actual Improvement is less than the Target SVA Improvement, the Declared Bonus Multiple shall
equal the Shortfall (expressed as a negative number) divided by the Bonus Interval, plus one (1); provided, however, that if the Declared Bonus Multiple is less than 0, then it shall still be deemed to be 0 for the purposes of this Plan and
the Guidelines. 
 5. The Bonus Declared for each Participant shall equal the Participant’s Target Bonus, multiplied by the Declared
Bonus Multiple. 
  

	VI.	Payment of Bonus Declared 

  

	 	A.	Payment 

 1. The Bonus Declared shall be paid by the Company within thirty (30) days
following the Committee’s determination of the Declared Bonus Multiple, but in no event earlier than the first day of the Plan Year following the applicable Plan Year and no later than the fifteenth (15th) day of the third month following
the end of the applicable Plan Year. In the event that a Participant’s prior Plan Year’s Bonus Declared has not yet been paid at the time such Participant’s award is forfeited pursuant to the terms of this Plan, such forfeited amounts
shall be distributed to other Participant(s) (other than with respect to Awards designated as Performance-Based Compensation) on a pro-rata basis, or distributed to other Participant(s) as otherwise determined by the Committee. 

 

	 	B.	Payment Upon Termination of Employment 

 1. In General. Subject to Section IV(C)
and except as specified below, and unless otherwise determined by the Committee, in the event a Participant’s employment is terminated by the Company or by the Participant other than as described in Section VI(B)(2), or the Participant becomes
ineligible to participate in the Plan: 
 a) the Participant shall not be paid any Bonus Declared for the Plan Year in which the termination
occurs (the “Termination Year”); 
 b) in the event that the prior Plan Year’s Bonus Declared has not yet been paid,
the Participant shall not be paid any Bonus Declared for such prior Plan Year; provided, however, that any amounts forfeited pursuant to this VI(B)(1)(b) shall be distributed to other Participant(s) (other than with respect to Awards
designated as Performance-Based Compensation) on a pro-rata basis, or distributed to other Participant(s) as otherwise determined by the Committee; and 

c) the Participant shall have no rights or interests in the Plan thereafter. 

Any payments made under this Section VI(B)(1) at the discretion of the Committee shall be within the time set forth in Section VI(A) and the
Participant shall have no rights or interests in the Plan thereafter. 
 2. Upon Death, Disability, Retirement, or Termination by the
Company Other than for Cause. Subject to Section IV(C), in the event of a Participant’s death, Disability, Retirement or termination by the Company other than for Cause: 

  
 6 

	 	a)	to the extent not previously paid, any Bonus Declared with respect to the Plan Year preceding the Termination Year shall be paid by the Company to the former Participant, or in the event of his or her death, to his or
her estate or designated beneficiary, within the time set forth in Section VI(A); 

  

	 	b)	with respect to the Termination Year, a Participant shall receive a pro-rated Bonus Declared determined in accordance with Section VI(A) of the Plan and such pro-rated Bonus Declared shall be paid by the Company to the
former Participant, or in the event of his or her death, to his or her estate or designated beneficiary, within the time set forth in Section VI(A), for the avoidance of doubt the Bonus Declared is considered “pro-rated” because the Annual
Salary used in the determination of the Bonus Declared in Section V is the final and actually paid (or fully earned, but not yet paid) pro-rated base salary; and 

  

	 	c)	the Participant shall have no rights or interests in the Plan thereafter. 

 3. Condition of
Payments. At the discretion of the Committee, any payment hereunder that is due to termination of employment by the Company or by the Participant may be subject to a requirement that the Participant execute a release of claims (including claims
relating to age discrimination) against the Company and its Subsidiaries and related persons at the time and in the form determined by the Company from time to time (provided that such requirement shall not cause a delay in the time of payment
otherwise provided for herein). 
  

	VII.	General Provisions 

  

	 	A.	No Right to Employment or Participation 

 No Participant or other person shall have any
claim or right to be retained in the employment of the Company or a Subsidiary by reason of the Plan or any Bonus Declared. Selection for eligibility to participate in the Plan for any given Plan Year shall not entitle the Participant to participate
in any subsequent Plan Year. 
  

	 	B.	Plan Expenses 

 The expenses of the Plan and its administration shall be
borne by the Company. 
  

	 	C.	Plan Not Funded 

 The Plan shall be unfunded. The Company shall not be required to
establish any special or separate fund or to make any other segregation of assets to assure the payment of any Bonus Declared under the Plan. No Participant or other person shall have any right, title or interest in any fund or in any specific asset
of the Company or any Subsidiary by reason of any award or Bonus Declared hereunder. To the extent that a Participant or other person acquires a right to receive payment with respect to a Bonus Declared hereunder, such right shall be no greater than
the right of any unsecured general creditor of the Company or any Subsidiary, as applicable.
  

	 	D.	Reports 

 The appropriate officers of the Company shall cause to be filed any reports,
returns, or other information regarding the Plan, as may be required by applicable statute, rule, or regulation. 
  

	 	E.	Governing Law 

 The validity, construction, and effect of the Plan, and any actions
relating to the Plan, shall be determined in accordance with the laws of the state of Delaware and applicable federal law, without regard to the conflicts of laws provisions of any state. 

 

	 	F.	Withholding 

 The Company shall have the right to deduct from any payment hereunder any
amounts that Federal, state, local or foreign laws require, including tax laws, with respect to such payments. 
  

	 	G.	No Fiduciary Relationship 

 Nothing contained in the Plan (or in any document related
thereto, including the Guidelines), nor the creation or adoption of the Plan, nor any action taken pursuant to the provisions of the Plan shall create, or be construed to create, a trust of any kind or a fiduciary relationship between the Company or
any Subsidiary and any Participant or other person.

  
 7 

	 	H.	Severability 

 If any provision of the Plan shall be held illegal or invalid for any
reason, said illegality or invalidity shall not affect the remaining provisions hereof; instead, each provision shall be fully severable and the Plan shall be construed and enforced as if said illegal or invalid provision had never been included
herein. 
  

	 	I.	Successors 

 All obligations of the Company under the Plan shall be binding upon and
inure to the benefit of any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the
Company. 
  

	VIII.	 Amendment and Termination of the Plan; Change in Control; 409A 

  

	 	A.	Amendment and Termination of the Plan. 

 1. The Board may, from time to time, amend the
Plan in any respect, or may discontinue or terminate the Plan at any time, provided, however, that: 
 a) Impact on Existing
Rights. Except as required by law, no amendment, discontinuance or termination of the Plan shall alter or otherwise affect the amount of a Bonus Declared prior to the date of termination; 

b) Impact on SVA Performance Measurement System. No amendment shall be made which would replace the SVA performance measurement system
for purposes of determining the Bonus Declared under the Plan during a Plan Year for such Plan Year, provided that, subject to Section VIII(D), the Board or Committee shall have the authority to adjust and establish Target SVA Improvement,
Target Bonus Percentages, and other criteria utilized in the SVA performance measurement system during a Plan Year due to, among other reasons, (i) a change in the Company’s business, operations, corporate or capital structure, (ii) a
change in the manner in which the Company’s business is conducted or (iii) any other material change or event which will impact one or more elements of SVA in a manner the Committee did not intend, then the Committee may, reasonably
contemporaneously with such change or event, make such adjustments as it shall deem appropriate or equitable in the manner of computing the relevant SVA performance measurement system during the Plan Year; and 

c) Consequence of Full Termination of Plan. Subject to Section VIII(D), if the Plan is terminated prior to the end of a Plan Year, the
Bonus Declared for that Plan Year shall be determined and paid to a Participant as set forth in Sections V and VI of the Plan, assuming that Target SVA Improvement for that Plan Year had been achieved, then pro-rated for the actual number of days in
the Plan Year before the Plan was terminated. Any such payment shall be subject to the terms and conditions of this Plan. 
  

	 	B.	Consequence of Change in Control 

 1. The Committee shall determine the treatment of the
Bonus Declared to Participants prior to a Change in Control, except that to the extent that the Committee takes no action (and except as otherwise expressly provided for in the Guidelines), in the event of a Change in Control, then the Bonus
Declared for that Plan Year shall be determined and paid as set forth in Sections V and VI of the Plan, but assuming that Target SVA Improvement for that Plan Year had been achieved, and pro-rating it for the actual number of days in the Plan Year
before the Change in Control and such Bonus Declared shall be paid within the sixty (60) day period following the effective time of the Change in Control. 

2. Except as expressly provided for in the Guidelines, the Committee may elect prior to a Change in Control, that, in the event of a Change in
Control, the Plan shall continue on in full force and effect or be assumed or an equivalent Plan be implemented by the successor corporation in any Change in Control transaction, or parent or subsidiary of such successor corporation. 

 

	 	C.	Section 409A 

 This Plan is intended to be exempt from Section 409A. However,
to the extent Section 409A applies to any payment hereunder, notwithstanding anything to the contrary in this Plan the following shall apply: 

  
 8 

 1. To the extent required in order to avoid accelerated taxation and/or tax penalties under
Section 409A, amounts that would otherwise be payable pursuant to this Plan during the six-month period immediately following the Participant’s termination of employment shall instead be paid on the first business day after the date that
is six months following the Participant’s “separation from service” within the meaning of Section 409A; 
 2. A
Participant shall not be entitled to any payments resulting from or arising due to a “termination of employment”, “termination” or “retirement” (or other similar term having a similar import) unless (and until) such
Participant has “separated from service” within the meaning of Section 409A; and 
 3. To the extent any provision of the Plan
or action by the Committee would subject any Participant to liability for interest or additional taxes under Section 409A, it will be deemed null and void, to the extent permitted by law and deemed advisable by the Committee. It is intended
that the Plan will be exempt from Section 409A (or if subject to Section 409A, compliant with Section 409A), and the Plan shall be interpreted and construed on a basis consistent with such intent. The Plan may be amended in any
respect deemed necessary (including retroactively) by the Board in order to preserve exemption from (or compliance with) Section 409A. The preceding shall not be construed as a guarantee of any particular tax effect for Plan payments. A
Participant is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on such person in connection with any payments to such person under the Plan (including any taxes and penalties under
Section 409A), and the Company (or any affiliate or subsidiary) shall have no obligation to indemnify or otherwise hold a Participant harmless from any or all of such taxes or penalties. 

 

	 	D.	Code Section 162(m) 

 Any Award designated to be treated as Performance-Based
Compensation shall be subject to Section 15 of the Omnibus Plan. This Plan, and any Award Agreement hereunder, shall be interpreted consistent with Code Section 162(m) and applicable rules and regulations thereunder. 

  
 9

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