Document:

EX-10.46

 

					
	 	 	 	 	 
	 
	 	MINUTES OF A MEETING
	 	EXHIBIT 10.46

OF THE BOARD OF DIRECTORS

OF

TORVEC, INC.

HELD ON OCTOBER 19, 2004

     The meeting of the board of Torvec was held at the offices of the company. All directors were
present, either in person or by telephonic conference. Also present were Richard Ottalagana, CEO,
Philip Fain, CFO, Sam Bronsky, CAO and Richard Sullivan, counsel.

     The minutes of the previous meeting were approved.

OLD AND EXISTING BUSINESS

     1. FTV — There is a delay in moving the vehicle to the Basket Road facility since part of the
bay which will be used for the FTV is currently needed for some of the work we are doing on the
IVT;

     2. Isuzu — Peters is out of town; Jim Gleasman will contact him the beginning of next week;

     3. Iso-Torque — The Nominating Committee, per Read McNamara its chairman, recommended that the
directors and officers of our new subsidiary, Iso-Torque Corporation, be as follows:

	 	•	 	Richard E. Ottalagana-Co-Managing Director;
	 
	 	•	 	Keith E. Gleasman-Co-Managing Director;
	 
	 	•	 	Andrew Gleasman-Vice-President of Administration;
	 
	 	•	 	Robert Green-Vice President of Operations

     After discussion, upon motion duly made and seconded, it was

RESOLVED, that this Board hereby accepts the recommendations of the Nominating Committee,
and hereby appoints the persons recommended to the offices for which in each case the
recommendation was made.

     The Board indicated that initially Keith Gleasman’s primary focus should remain on the IVT
until our testing is complete. Richard Ottalagana and Robert Green will immediately begin to build
the subsidiary. To this end after discussion upon motion duly made and seconded, it was

RESOLVED, that Torvec hereby agrees to fund Iso-Torque Corporation initially with
$212,500, which monies were raised for this purpose, and hereby agrees to and hereby does
transfer all of the company’s right, title and interest to the Iso-Torque technology,
including Patent No. US6,783,476B2, and all of the claims recited therein as well as all
know-how, goodwill and other intangibles associated with the Iso-Torque technology,
including but not limited to trade names, trademarks, and the right to the name
“Iso-Torque”, all in exchange for a 100% interest in the common equity of Iso-Torque
Corporation.

     Richard Sullivan, counsel, stated that, at management’s direction, he had filed the
Certificate of Incorporation of Iso-Torque Corporation with the Secretary of State of the State of
New York on October 19, 2004, that a Certificate of Amendment to Torvec’s Certificate of
Incorporation to formally create the Class B non-voting

 

cumulative convertible preferred stock would be filed as approved by the Board with the New York
Secretary of State’s office on or about October 20, 2004, and that the Board would receive a draft
copy of the By-Laws and other organizational documents to review and adopt at the next Board
meeting.

     Keith Gleasman reported that we have completed all gear and hobb design and that we are in a
position to build a production ready model of the Iso-Torque, which he estimated would be completed
by the end of February 2005. We are working with Gear Resources Technology, who is actually
cutting the hobb in accordance with our proprietary formula so that we will be able to assemble the
production ready model.

     4. ZT Technologies — Richard Sullivan advised the Board that management had received two
letters from Milan Klucko, Managing Director of ZT, stating that ZT’s position is that the July 21,
2004 agreement constitutes a valid contract between Torvec and ZT, that it was Torvec’s
responsibility under the contract to provide ZT with engineering drawings, specifications, pricing
and similar information under Section 4 under the agreement. ZT has in fact provided notice to
Torvec that, in accordance with the agreement, Torvec had 30 days from the date of the notice on
October 1, 2004 to provide such documentation. Mr. Sullivan explained that Torvec has consistently
taken the position that all of the provisions of the July 21 agreement (including Section 4) only
become effective if ZT provides Torvec with at least five factorable purchase orders as set forth
in Sections 1 and 17.

     James Gleasman then explained that he has sent a response to Milan Klucko stating that we
wanted the relationship to move forward, that we needed a $350,000 advance on purchase orders to
provide the requisite documentation and other forms of assistance implicit in complying with
Section 4 of the agreement, and that ZT had known of our financial needs prior to July 28, 2004.
He concluded the letter by inviting Milan Klucko to Rochester to discuss what steps could be taken
by the parties to move forward.

     Milan has not responded to date. Jim Gleasman then explained that under these circumstances
there was a possibility that ZT could sue or threaten to sue Torvec on the grounds that Torvec had
refused, and was continuing to refuse to provide ZT with documents necessary to enable ZT to
perform its duties under the agreement. Based upon this possibility he explained and then invited
the Board to authorize a “preemptive strike” against ZT consisting of a Petition to the United
States District Court for the Western District of New York for a Declaratory Judgment that since ZT
has failed to provide and upon notice and demand has refused to provide at least five factorable
purchase orders for Torvec’s full terrain vehicle, the July 21 agreement between the parties has
become unenforceable by its terms, and that neither party to such agreement bears any
responsibility or obligation as between themselves or to third parties as a result of the July 21
agreement.

     After further discussion, including a specific affirmation by each member of the Board, upon
motion duly made and seconded, it was

 

RESOLVED, that management is authorized to take all legal action to protect and enforce
the company’s position that the July 21 agreement between ZT and Torvec is unenforceable
by its terms, including the filing of a Petition for a Declaratory Judgment to such
effect by a court of competent jurisdiction.

     5. GM — Jim Gleasman and Phil Fain read to the Board John Maten’s letter requesting that we
provide him with a schedule of gear ratios governing the IVT. They also read our response. The
critical portion of our response was our statement that after we have completed testing the IVT
using GM’s ECU, we would repeat the same tests using our own ECU manufactured according to our
specifications by Motortron.

     6. Governance Committee Report — The Governance Committee submitted the attached report
concerning the compensation of our non-management directors solely for service as members of the
board of directors and of its committees. Read McNamara stated that while he was in agreement with
the objectives set forth in the report, he wished the committee provide for its background and
records a profile of the compensation levels accorded to non-management directors of one or more
companies similarly situated to Torvec. It was also agreed that to qualify each year for the
warrants, non-management directors would have to attend in person or by telephonic conference at
least 75% of the meetings of the Board and of each committee of which he was a member. Subject to
this proviso and modification, the Board accepted the Governance Committee’s report and provided
that the non-management director compensation plan would become effective October 1, 2004.

     It was next agreed that the duties and responsibilities of the Governance Committee should be
expanded so that the committee would be responsible for all director, officer, employee and
consultant compensation. After discussion, upon motion made and seconded, it was

RESOLVED, that the Governance Committee, currently composed of Joseph Alberti, chairman,
Gary Siconolfi and Daniel Bickel, shall be responsible for all aspects of Torvec
compensation to all Directors, officers, employees and consultants, and to this end the
Governance Committee shall be renamed the Compensation and Governance Committee.

     8. Variable Gear — Robert C. Horton has indicated that he will accommodate us with respect to
our entering into an agreement with one or more companies (e.g. Brunswick) to utilize our IVT
technology in the marine industry. The specific terms of this “accommodation” were not discussed.

     9. ICE Technology — John Tobias, Jake Brooks and David Marshall are meeting with Dupont on
October 18, 2004 to discuss the possible involvement of Dupont and the Dupont Capital Fund.

NEW BUSINESS

     1. Jim Gleasman, Phil Fain and Richard Sullivan will visit our independent accounting firm,
Eisner LLP, to discuss accounting issues for our forthcoming 10-QSB and to meet with
representatives of JPMorgan Chase to discuss a possible underwriting for an IPO in connection with
our Iso-Torque technology.

 

     2. We have received two proposals from accounting firms relating to SOX 404 Internal Controls
Compliance. After an examination of both proposals by the Board, upon motion duly made and
seconded, it was:

RESOLVED, that the company hereby engages the accounting firm of Rotenberg &
Company in accordance with the terms and conditions of the proposal submitted to
the company by Rotenberg & Company for all compliance issues relating to SOX 404.

     3. There is some confusion regarding the exact compensation payable to CXO on the GO under our
June 30, 2004 agreement in certain circumstances. After discussion, the matter was referred to
counsel for review.

     4. Richard Sullivan handed out a Memorandum delineating the background and terms governing
payments made to him by Torvec for business consulting services.

          The board reviewed the Memorandum and discussed its contents. The discussion centered on the
accounting treatment to be accorded the prepayment of business consultants fees, the need for
greater communication amongst board members, and the need for enhanced internal control over all
issuances of our equity securities.

          After further discussion, upon motion duly made and seconded, it was:

RESOLVED, that CFO Philip Fain is hereby authorized and instructed to discuss
and resolve all accounting issues with respect to business consultant’s
prepayments with Eisner, LLP; and be it further

RESOLVED, that effective immediately all equity issuances, whether common or
preferred, must be approved in advance by the Chairman of the Compensation and
Governance Committee (currently Joseph Alberti), and separately by at least one
officer of the company, and be it further

RESOLVED, that the Board reaffirm its current policy to hold board meetings
every two weeks in order to further communication amongst board members, that
each committee of the board meet at least once per quarter, and that the
independent directors meet at least once per quarter in Executive Session.

     Based upon the foregoing discussion and resolutions the board, upon motion duly made and
seconded

RESOLVED, that the Board hereby accepts the report submitted by Richard Sullivan with
respect to business consultant’s fees, and subject to the resolutions set forth above
hereby renews the business consulting arrangement with Richard Sullivan for the fiscal
year commencing January 1, 2005, such arrangement to be reviewed from time to time by
the board in accordance with its normal policy.

     5. It was agreed that the annual meeting of shareholders be held at Casa Larga on Thursday,
January 27, 2005, and Keith Gleasman was instructed to initiate all discussions with Casa Larga in
order to facilitate such meeting.

There being no further business, the meeting was adjourned.

	 	 	 
	 

	 	Respectfully submitted,
	 
	 	 
	 

	 	                                                  
	 

	 	Gary A. Siconolfi, Secretary<PAGE>

                                                                    Exhibit 10.1

            AMENDED AND RESTATED ISSUING AND PAYING AGENCY AGREEMENT

     This Agreement, dated as of April 13, 2006, is by and between Sysco
Corporation (the "ISSUER") and JPMorgan Chase Bank, National Association
("JPMORGAN").

1.   APPOINTMENT AND ACCEPTANCE

     The Issuer hereby appoints JPMorgan as its issuing and paying agent in
connection with the issuance and payment of certain short-term promissory notes
of the Issuer (the "NOTES"), as further described herein, and JPMorgan agrees to
act as such agent upon the terms and conditions contained in this Agreement.

2.   COMMERCIAL PAPER PROGRAMS

     The Issuer may establish one or more commercial paper programs under this
Agreement by delivering to JPMorgan a completed program schedule (the "PROGRAM
SCHEDULE"), with respect to each such program. JPMorgan has given the Issuer a
copy of the current form of Program Schedule and the Issuer shall complete and
return its first Program Schedule to JPMorgan prior to or simultaneously with
the execution of this Agreement. In the event that any of the information
provided in, or attached to, a Program Schedule shall change, the Issuer shall
promptly inform JPMorgan of such change in writing.

3.   NOTES

     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, as indicated on the Program Schedules, and from
applicable state securities laws. The Notes may be placed by dealers (the
"DEALERS") pursuant to Section 4 hereof. Notes shall be issued in either
certificated or book-entry form.

4.   AUTHORIZED REPRESENTATIVES

     The Issuer shall deliver to JPMorgan a duly adopted corporate resolution
from the Issuer's Board of Directors (or other governing body) authorizing the
issuance of Notes under each program established pursuant to this Agreement and
a certificate of incumbency, with specimen signatures attached, of those
officers, employees and agents of the Issuer authorized to take certain actions
with respect to the Notes as provided in this Agreement (each such person is
hereinafter referred to as an "AUTHORIZED REPRESENTATIVE"). Until JPMorgan
receives any subsequent incumbency certificates of the Issuer, JPMorgan shall be
entitled to rely on the last incumbency certificate delivered to it for the
purpose of determining the Authorized Representatives. The Issuer represents and
warrants that each Authorized Representative may appoint other officers,
employees and agents of the Issuer (the "DELEGATES"), including without
limitation any Dealers, to issue instructions to JPMorgan under this Agreement,
and take other actions on the Issuer's behalf hereunder, provided that notice of
the appointment of each Delegate is delivered to JPMorgan in writing. Each such
appointment shall remain in effect unless and until revoked by the Issuer in a
written notice to JPMorgan.

5.   CERTIFICATED NOTES

     If and when the Issuer intends to issue certificated notes ("CERTIFICATED
NOTES"), the Issuer and JPMorgan shall agree upon the form of such Notes.
Thereafter, the Issuer shall from time to time deliver to JPMorgan adequate
supplies of Certificated Notes which will be in bearer form, serially numbered,
and shall be executed by the manual or facsimile signature of an Authorized
Representative. JPMorgan will acknowledge receipt of any supply of Certificated
Notes received from the Issuer, noting any exceptions to the shipping manifest
or transmittal letter (if any), and will hold the Certificated Notes in
safekeeping for the Issuer in accordance with

<PAGE>

JPMorgan's customary practices. JPMorgan shall not have any liability to the
Issuer to determine by whom or by what means a facsimile signature may have been
affixed on Certificated Notes, or to determine whether any facsimile or manual
signature is genuine, if such facsimile or manual signature resembles the
specimen signature attached to the Issuer's certificate of incumbency with
respect to such Authorized Representative. Any Certificated Note bearing the
manual or facsimile signature of a person who is an Authorized Representative on
the date such signature was affixed shall bind the Issuer after completion
thereof by JPMorgan, notwithstanding that such person shall have ceased to hold
his or her office on the date such Note is countersigned or delivered by
JPMorgan.

6.   BOOK-ENTRY NOTES

     The Issuer's book-entry notes ("BOOK-ENTRY NOTES") shall not be issued in
physical form, but their aggregate face amount shall be represented by a master
note (the "MASTER NOTE") executed by the Issuer pursuant to the book-entry
commercial paper program of The Depository Trust Company ("DTC"). JPMorgan shall
maintain the Master Note in safekeeping, in accordance with its customary
practices, on behalf of Cede & Co., the registered owner thereof and nominee of
DTC. As long as Cede & Co. is the registered owner of the Master Note, the
beneficial ownership interest therein shall be shown on, and the transfer of
ownership thereof shall be effected through, entries on the books maintained by
DTC and the books of its direct and indirect participants. The Master Note and
the Book-Entry Notes shall be subject to DTC's rules and procedures, as amended
from time to time. JPMorgan shall not be liable or responsible for sending
transaction statements of any kind to DTC's participants or the beneficial
owners of the Book-Entry Notes, or for maintaining, supervising or reviewing the
records of DTC or its participants with respect to such Notes. In connection
with DTC's program, the Issuer understands that as one of the conditions of its
participation therein, it shall be necessary for the Issuer and JPMorgan to
enter into a Letter of Representations and for DTC to receive and accept such
Letter of Representations. In accordance with DTC's program, JPMorgan shall
obtain from the CUSIP Service Bureau a written list of CUSIP numbers for
Issuer's Book-Entry Notes, and JPMorgan shall deliver such list to DTC. The
CUSIP Service Bureau shall bill the Issuer directly for the fee or fees payable
for the list of CUSIP numbers for the Issuer's Book-Entry Notes.

7.   ISSUANCE INSTRUCTIONS TO JPMORGAN; PURCHASE PAYMENTS

     The Issuer understands that all instructions under this Agreement are to be
directed to JPMorgan's Commercial Paper Operations Department. JPMorgan shall
provide the Issuer, or, if applicable, the Issuer's Dealers, with access to
JPMorgan's Money Market Issuance System or other electronic means (collectively,
the "SYSTEM") in order that JPMorgan may receive electronic instructions for the
issuance of Notes. Electronic instructions must be transmitted in accordance
with the procedures furnished by JPMorgan 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 JPMorgan 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 JPMorgan, which instructions shall be verified in
accordance with any security procedures agreed upon by the parties. JPMorgan
shall incur no liability to the Issuer in acting upon instructions believed by
JPMorgan in good faith and in accordance with agreed upon security procedures to
have been given by an Authorized Representative or a Delegate. In the event that
a discrepancy exists between a telephonic instruction and a written
confirmation, the telephonic instruction will be deemed the controlling and
proper instruction,. JPMorgan may electronically record any conversations made
pursuant to this Agreement, and the Issuer hereby consents to such recordings.
In the event of a dispute as to the content of verbal instructions received,
upon Issuer's request, JPMorgan shall provide to Issuer evidence of the
telephonic instructions received, which, to the extent that the same are
reasonably available to JPMorgan, shall include electronic recordings of such
instructions. All issuance instructions regarding the Notes must be received by
1:00 P.M. New York time in order for the Notes to be issued or delivered on the
same day.

                                       2

<PAGE>

     (a) ISSUANCE AND PURCHASE OF BOOK-ENTRY NOTES. Upon receipt of issuance
     instructions from the Issuer or its Dealers with respect to Book-Entry
     Notes, JPMorgan shall transmit such instructions to DTC and direct DTC to
     cause appropriate entries of the Book-Entry Notes to be made in accordance
     with DTC's applicable rules, regulations and procedures for book-entry
     commercial paper programs. JPMorgan shall assign CUSIP numbers to the
     Issuer's Book-Entry Notes to identify the Issuer's aggregate principal
     amount of outstanding Book-Entry Notes in DTC's system, together with the
     aggregate unpaid interest (if any) on such Notes. Promptly following DTC's
     established settlement time on each issuance date, JPMorgan shall access
     DTC's system to verify whether settlement has occurred with respect to the
     Issuer's Book-Entry Notes. Prior to the close of business on such business
     day, JPMorgan shall deposit immediately available funds in the amount of
     the proceeds due the Issuer (if any) to the Issuer's account at JPMorgan
     and designated in the applicable Program Schedule (the "ACCOUNT"), provided
     that JPMorgan has received DTC's confirmation that the Book-Entry Notes
     have settled in accordance with DTC's applicable rules, regulations and
     procedures. JPMorgan shall have no liability to the Issuer whatsoever if
     any DTC participant purchasing a Book-Entry Note fails to settle or delays
     in settling its balance with DTC or if DTC fails to perform in any respect.

     (b) ISSUANCE AND PURCHASE OF CERTIFICATED NOTES. Upon receipt of issuance
     instructions with respect to Certificated Notes, JPMorgan shall: (a)
     complete each Certificated Note as to principal amount, date of issue,
     maturity date, place of payment, and rate or amount of interest (if such
     Note is interest bearing) in accordance with such instructions; (b)
     countersign each Certificated Note; and (c) deliver each Certificated Note
     in accordance with the Issuer's instructions, except as otherwise set forth
     below. Whenever JPMorgan is instructed to deliver any Certificated Note by
     mail, JPMorgan shall strike from the Certificated Note the word "Bearer,"
     insert as payee the name of the person so designated by the Issuer and
     effect delivery by mail to such payee or to such other person as is
     specified in such instructions to receive the Certificated Note. The Issuer
     understands that, in accordance with the custom prevailing in the
     commercial paper market, delivery of Certificated Notes shall be made
     before the actual receipt of payment for such Notes in immediately
     available funds, even if the Issuer instructs JPMorgan to deliver a
     Certificated Note against payment. Therefore, once JPMorgan has delivered a
     Certificated Note to the designated recipient, the Issuer shall bear the
     risk that such recipient may fail to remit payment of such Note or return
     such Note to JPMorgan. Delivery of Certificated Notes shall be subject to
     the rules of the New York Clearing House in effect at the time of such
     delivery. Funds received in payment of Certificated Notes shall be credited
     to the Account.

8.   USE OF SALES PROCEEDS IN ADVANCE OF PAYMENT

     JPMorgan shall not be obligated to credit the Issuer's Account unless and
until payment of the purchase price of each Note is received by JPMorgan. From
time to time, JPMorgan, in its sole discretion, may permit the Issuer to have
use of funds payable with respect to a Note prior to JPMorgan's receipt of the
sales proceeds of such Note. If JPMorgan makes a deposit, payment or transfer of
funds on behalf of the Issuer before JPMorgan receives payment for any Note,
such deposit, payment or transfer of funds shall represent an advance by
JPMorgan to the Issuer to be repaid promptly, and in any event on the same day
as it is made, from the proceeds of the sale of such Note, or by the Issuer if
such proceeds are not received by JPMorgan.

                                       3

<PAGE>

9.   PAYMENT OF MATURED NOTES

     To the extent the Notes are extendible, notice that the Issuer will not
redeem any Note on the relative Initial Redemption Date (as defined in the
applicable Extendible Commercial Note Announcement) must be received in writing
by JPMorgan by 11:00 A.M. on such Initial Redemption Date. On any other day when
a Note matures or is prepaid, the Issuer shall transmit, or cause to be
transmitted, to the Account, prior to 2:00 P.M. New York time on the same day,
an amount of immediately available funds sufficient to pay the aggregate
principal amount of such Note and any applicable interest due. JPMorgan shall
pay the interest (if any) and principal on a Book-Entry Note to DTC in
immediately available funds, which payment shall be by net settlement of
JPMorgan's account at DTC. JPMorgan shall pay Certificated Notes upon
presentment. JPMorgan shall have no obligation under the Agreement to make any
payment for which there is not sufficient, available and collected funds in the
Account, and JPMorgan may, without liability to the Issuer, refuse to pay any
Note that would result in an overdraft to the Account.

10.  OVERDRAFTS

     (a) Intraday overdrafts with respect to each Account shall be subject to
     JPMorgan's policies as in effect from time to time.

     (b) An overdraft will exist in an Account if JPMorgan, in its sole
     discretion, (i) permits an advance to be made pursuant to Section 8 and,
     notwithstanding the provisions of Section 8, such advance is not repaid in
     full on the same day as it is made, or (ii) pays a Note pursuant to Section
     9 in excess of the available collected balance in such Account. Overdrafts
     shall be subject to JPMorgan's established banking practices, including,
     without limitation, the imposition of interest, funds usage charges and
     administrative fees. The Issuer shall repay any such overdraft, fees and
     charges no later than the next business day, together with interest on the
     overdraft at the rate established by JPMorgan for the Account, computed
     from and including the date of the overdraft to the date of repayment.

11.  NO PRIOR COURSE OF DEALING

     No prior action or course of dealing on the part of JPMorgan with respect
to advances of the purchase price or payments of matured Notes shall give rise
to any claim or cause of action by the Issuer against JPMorgan in the event that
JPMorgan refuses to pay or settle any Notes for which the Issuer has not timely
provided funds as required by this Agreement.

12.  RETURN OF CERTIFICATED NOTES

     JPMorgan will in due course cancel any Certificated Note presented for
payment and return such Note to the Issuer. JPMorgan shall also cancel and
return to the Issuer any spoiled or voided Certificated Notes. Promptly upon
written request of the Issuer or at the termination of this Agreement, JPMorgan
shall destroy all blank, unissued Certificated Notes in its possession and
furnish a certificate to the Issuer certifying such actions.

13.  INFORMATION FURNISHED BY JPMORGAN

     Upon the reasonable request of the Issuer, JPMorgan shall promptly provide
the Issuer with information with respect to any Note issued and paid hereunder,
provided, that the Issuer delivers such request in writing and, to the extent
applicable, includes the serial number or note number, principal amount, payee,
date of issue, maturity date, amount of interest (if any) and place of payment
of such Note.

                                       4

<PAGE>

14.  REPRESENTATIONS AND WARRANTIES

     The Issuer represents and warrants that: (i) it has the right, capacity and
authority to enter into this Agreement; and (ii) it will comply with all of its
obligations and duties under this Agreement. The Issuer further represents and
agrees that each Note issued and distributed upon its instruction pursuant to
this Agreement shall constitute the Issuer's representation and warranty to
JPMorgan that such Note is a legal, valid and binding obligation of the Issuer,
and that such Note is being issued in a transaction which is exempt from
registration under the Securities Act of 1933, as amended, and any applicable
state securities law.

15.  DISCLAIMERS

     Neither JPMorgan nor its directors, officers, employees or agents shall be
liable for any act or omission under this Agreement except in the case of
negligence or willful misconduct. IN NO EVENT SHALL JPMORGAN BE LIABLE FOR
SPECIAL, INDIRECT OR CONSEQUENTIAL LOSS OR DAMAGE OF ANY KIND WHATSOEVER
(INCLUDING BUT NOT LIMITED TO LOST PROFITS), EVEN IF JPMORGAN HAS BEEN ADVISED
OF THE LIKELIHOOD OF SUCH LOSS OR DAMAGE AND REGARDLESS OF THE FORM OF ACTION.
In no event shall JPMorgan be considered negligent in consequence of complying
with DTC's rules, regulations and procedures. The duties and obligations of
JPMorgan, its directors, officers, employees or agents shall be determined by
the express provisions of this Agreement and they shall not be liable except for
the performance of such duties and obligations as are specifically set forth
herein and no implied covenants shall be read into this Agreement against them.
Neither JPMorgan nor its directors, officers, employees or agents shall be
required to ascertain whether any issuance or sale of any Notes (or any
amendment or termination of this Agreement) has been duly authorized or is in
compliance with any other agreement to which the Issuer is a party (whether or
not JPMorgan is also a party to such agreement).

16.  INDEMNIFICATION

     The Issuer agrees to indemnify, defend and hold harmless JPMorgan, its
directors, officers, employees and agents (collectively, "Indemnitees") from and
against any and all liabilities, claims, losses, damages, penalties, costs and
expenses (including reasonable attorneys' fees and disbursements) suffered or
incurred by or asserted or assessed against any Indemnitee arising in respect of
this Agreement, except in respect of any Indemnitee for any such liability,
claim, loss, damage, penalty, cost or expense resulting from the negligence or
willful misconduct of such Indemnitee. This indemnity will survive the
termination of this Agreement.

17.  OPINION OF COUNSEL

     The Issuer shall deliver to JPMorgan all documents it may reasonably
request relating to the existence of the Issuer and authority of the Issuer for
this Agreement, including, without limitation, an opinion of counsel reasonably
acceptable by JPMorgan.

18.  NOTICES

     All notices, confirmations and other communications hereunder shall (except
to the extent otherwise expressly provided) be in writing and shall be sent by
first-class mail, postage prepaid, by telecopier or by hand, addressed as
follows, or to such other address as the party receiving such notice shall have
previously specified to the party sending such notice:

If to the Issuer: SYSCO Corporation
                  1390 Enclave Parkway
                  Houston, TX 77077

                                       5

<PAGE>

                  Attention: Ms. Kathy Oates Gish
                  Telephone: 281-584-1443
                  Facsimile: 281-584-1792

If to JPMorgan concerning the daily issuance and redemption of Notes:

                  Attention: Money Market Operations
                  227 W. Monroe 26th Floor
                  Chicago, IL 60606
                  Telephone: (800) 499-3176/ (312) 267-5100
                  Facsimile: (312) 267-5210

All other:        Attention: Commercial Paper JPM
                  4 New York Plaza 15th Floor
                  New York NY 10004-2413
                  Telephone: (212) 623-8220
                  Facsimile: (212) 623-8420

19.  COMPENSATION

     The Issuer shall pay compensation for services pursuant to this Agreement
in accordance with the pricing schedules attached hereto as Exhibit A, as the
same may be amended from time to time upon 30 days written notice to the Issuer
upon such payment terms as the parties shall determine. The Issuer shall also
reimburse JPMorgan for any fees and charges imposed by DTC with respect to
services provided in connection with the Book-Entry Notes.

20.  BENEFIT OF AGREEMENT

     This Agreement is solely for the benefit of the parties hereto and no other
person shall acquire or have any right under or by virtue hereof.

21.  TERMINATION

     This Agreement may be terminated at any time by either party by written
notice to the other, but such termination shall not affect the respective
liabilities of the parties hereunder arising prior to such termination.

22.  FORCE MAJEURE

     In no event shall JPMorgan be liable for any failure or delay in the
performance of its obligations hereunder because of circumstances beyond
JPMorgan's control, including, but not limited to, acts of God, flood, war
(whether declared or undeclared), terrorism, fire, riot, strikes or work
stoppages for any reason, embargo, government action, including any laws,
ordinances, regulations or the like which restrict or prohibit the providing of
the services contemplated by this Agreement, inability to obtain material,
equipment, or communications or computer facilities, or the failure of equipment
or interruption of communications or computer facilities, and other causes
beyond JPMorgan's control whether or not of the same class or kind as
specifically named above.

23.  ENTIRE AGREEMENT

     This Agreement, together with the exhibits attached hereto, constitutes the
entire agreement between JPMorgan and the Issuer with respect to the subject
matter hereof and

                                       6

<PAGE>

supersedes in all respects all prior proposals, negotiations, communications,
discussions and agreements between the parties concerning the subject matter of
this Agreement.

24.  WAIVERS AND AMENDMENTS

     No failure or delay on the part of any party in exercising any power or
right under this Agreement shall operate as a waiver, nor does any single or
partial exercise of any power or right preclude any other or further exercise,
or the exercise of any other power or right. Any such waiver shall be effective
only in the specific instance and for the purpose for which it is given. No
amendment, modification or waiver of any provision of this Agreement shall be
effective unless the same shall be in writing and signed by the Issuer and
JPMorgan.

25.  BUSINESS DAY

     Whenever any payment to be made hereunder shall be due on a day which is
not a business day for JPMorgan, then such payment shall be made on JPMorgan's
next succeeding business day.

26.  COUNTERPARTS

     This Agreement may be executed in counterparts, each of which shall be
deemed an original and such counterparts together shall constitute but one
instrument.

27.  HEADINGS

     The headings in this Agreement are for purposes of reference only and shall
not in any way limit or otherwise affect the meaning or interpretation of any of
the terms of this Agreement.

28.  GOVERNING LAW

     This Agreement and the Notes shall be governed by and construed in
accordance with the internal laws of the State of New York, without regard to
the conflict of laws provisions thereof.

29.  JURISDICTION AND VENUE

     Each party hereby irrevocably and unconditionally submits to the
jurisdiction of the United States District Court for the Southern District of
New York and any New York State court located in the Borough of Manhattan in New
York City and of any appellate court from any thereof for the purposes of any
legal suit, action or proceeding arising out of or relating to this Agreement (a
"PROCEEDING"). Each party hereby irrevocably agrees that all claims in respect
of any Proceeding may be heard and determined in such Federal or New York State
court and irrevocably waives, to the fullest extent it may effectively do so,
any objection it may now or hereafter have to the laying of venue of any
Proceeding in any of the aforementioned courts and the defense of an
inconvenient forum to the maintenance of any Proceeding.

30.  WAIVER OF TRIAL BY JURY

     EACH PARTY HEREBY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING
ARISING OUT OF OR RELATING TO ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT.

31.  ACCOUNT CONDITIONS

     Each Account shall be subject to JPMorgan's standard account conditions, as
in effect from time to time, with respect to similarly situated customers.

                                       7

<PAGE>

     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.

JPMORGAN CHASE BANK,                    SYSCO CORPORATION
NATIONAL ASSOCIATION

By: /s/ Judith Hyppolite                By: /s/ Kathy Oates Gish
    ---------------------------------       ------------------------------------
Name: Judith Hyppolite                  Name: Kathy Oates Gish
Title: Assistant Vice President         Title: Vice President and Asst. Treas.
Date: April 13, 2006                    Date: 4-13-06

                                       8

<PAGE>

                                    EXHIBITA

                                  FEE SCHEDULE

                                 [PLEASE ATTACH]

<PAGE>

                                                                       Exhibit A

(JPMORGAN LOGO)

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
COMMERCIAL PAPER ISSUING & PAYING AGENCY SERVICES

Sysco Corporation

FEE SCHEDULE FOR COMMERCIAL PAPER

ISSUING AND PAYING AGENT FEE

A Sliding Scale Administrative Fee, based on your average monthly outstanding
commercial paper, will apply. The scale is as follows:

<TABLE>
<S>                        <C>
On the First $50 million   0.65 basis points
On the Next $150 million   0.55 basis points
On the Next $300 million   0.45 basis points
On the Next $600 million   0.40 basis points
Thereafter                 0.35 basis points
</TABLE>

     This Sliding Scale Administrative Fee is subject to a $585.00 per month
minimum.

PASS-THROUGH CHARGES

     1.   The Issuer will reimburse JPMorgan for those fees of The Depository
          Trust Company ("DTC"), associated with the issuance, redemption and
          interest payment of the Notes. Presently these fees are $1.70 per
          Issuance/Deliver Order and $0.80 per Maturity Presentment. These
          charges are subject to the DTC Maximum Transaction Size of
          $50,000,000.00. The Issuer acknowledges that JPMorgan does not charge
          these fees, but merely passes the then current DTC charges on to the
          Issuer. DTC may at any time change these fees and without notice.

     2.   The Issuer will be billed directly by The CUSIP Service Bureau
          ("CUSIP") for fees associated with the CUSIP Numbers required by DTC
          for their Same Day Funds Settlement ("SDFS") Money Market Instrument
          ("MMI") Book-entry only Program. Presently CUSIP charges are $475.00
          per year for Discount CUSIP Numbers and $127.00 for the first block of
          Interest-Added-at-Maturity CUSIP Numbers.

SYSTEM FEE   $250 per month

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