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     <TD align=left><FONT style="WIDTH: 67pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Registration No.</FONT></TD>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Washington, D.C. 20549</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>FORM S</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-1</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</FONT> </TD></TR>
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     <TD colSpan=5>&nbsp; </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>GRAYBAR ELECTRIC COMPANY, INC.</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>AND</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>D. E. DESOUSA, L. R. GIGLIO, T. S. GURGANOUS, R. D. OFFENBACHER AND R. A. REYNOLDS, JR.,</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>VOTING TRUSTEES UNDER THE VOTING TRUST AGREEMENT, DATED AS OF</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>MARCH 16, 2007, RELATING TO COMMON STOCK ISSUED BY GRAYBAR ELECTRIC</FONT> </TD></TR>
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     <TD align=center>&nbsp;</TD>
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     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center>&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>COMPANY, INC.</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center>&nbsp;</TD>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Exact name of registrants as specified in their charters)</FONT> </TD></TR>
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     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>New York</FONT>&nbsp;&nbsp;</TD>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(State or other jurisdiction of incorporation of Graybar Electric Company, Inc.)</FONT> </TD></TR>
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     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5063</FONT>&nbsp;&nbsp;</TD>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Primary Standard Industrial Classification Code Number of Graybar Electric Company, Inc.)</FONT> </TD></TR>
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     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>13-0794380</FONT>&nbsp;&nbsp;</TD>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(I.R.S. Employer Identification No. of Graybar Electric Company, Inc.)</FONT> </TD></TR>
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     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>34 North Meramec Avenue, St. Louis, Missouri 63105, (314) 573-9200</FONT></TD>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Address, including zip code, and telephone number, including area code, of principal executive</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>offices of Graybar Electric Company, Inc. and of the Voting Trustees)</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Matthew W. Geekie, Esq.</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Senior Vice President, Secretary and General Counsel</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Graybar Electric Company, Inc., 34 North Meramec Avenue, St. Louis, Missouri 63105</FONT> </TD></TR>
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     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(314)</FONT> <FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" size=2>573-9200</FONT>&nbsp;&nbsp;</TD>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Name, address, including zip code, and telephone number, including area code, of agent</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>for service for Graybar Electric Company, Inc. and the Voting Trustees)</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Copy to:</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>James R. Levey, Esq.</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Bryan Cave LLP</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>One Metropolitan Square</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>211 North Broadway, Suite 3600</FONT> </TD></TR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>St. Louis, MO 63102</FONT> </TD></TR>
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     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>October 22, 2008</FONT>&nbsp;&nbsp;</TD>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Approximate date of commencement of proposed sale to the public)</FONT> </TD></TR>
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     <TD align=left colSpan=5 rowSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Rule 415 under the Securities Act of 1933, check the following box.&nbsp;<FONT face=Wingdings>&#168;</FONT> </FONT><FONT face="SymbolMT,Times New Roman,Times,serif" size=2></FONT></TD></TR>
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     <TD align=left colSpan=5 rowSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act,&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>please check the following box and list the Securities Act registration statement number of the earlier effective&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>registration statement for the same offering. <FONT face=Wingdings>&#168;</FONT></FONT><FONT face="SymbolMT,Times New Roman,Times,serif" size=2></FONT></TD></TR>
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     <TD align=left colSpan=5 rowSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>following box and list the Securities Act registration statement number of the earlier effective registration statement&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>for the same offering. <FONT face=Wingdings>&#168;</FONT></FONT><FONT face="SymbolMT,Times New Roman,Times,serif" size=2></FONT></TD></TR>
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     <TD align=left colSpan=5 rowSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>following box and list the Securities Act registration statement number of the earlier effective registration statement&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>for the same offering. <FONT face=Wingdings>&#168;</FONT></FONT><FONT face="SymbolMT,Times New Roman,Times,serif" size=2></FONT></TD></TR>
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     <TD align=left colSpan=2 rowSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer,&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>or a smaller reporting company. See the definitions of &#147;large accelerated filer&#148;, &#147;accelerated filer&#148; and &#147;smaller&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>reporting company&#148; in Rule 12b-2 of the Exchange Act.</FONT></TD></TR>
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     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Large accelerated filer <FONT face=Wingdings>&#168;</FONT></FONT><FONT face="SymbolMT,Times New Roman,Times,serif" size=2></FONT></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accelerated filer <FONT face=Wingdings>&#168;</FONT></FONT><FONT face="SymbolMT,Times New Roman,Times,serif" size=2></FONT></TD></TR>
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     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Non-accelerated filer&nbsp;<FONT face=Wingdings>x<FONT face="Times New Roman">&nbsp;</FONT></FONT></FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Do not check if a smaller reporting company)</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Smaller reporting company&nbsp;<FONT face=Wingdings>&#168;</FONT> </FONT><FONT face="SymbolMT,Times New Roman,Times,serif" size=2></FONT></TD></TR></TABLE><BR>
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     <TD align=center colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>CALCULATION OF REGISTRATION FEE</FONT> </TD></TR>
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     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 2pt double; BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left rowSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Title of each class of securities to be registered</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=center rowSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Amount to be</FONT><BR>
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     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=center rowSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Proposed</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>maximum</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>offering price</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>per unit</FONT> </TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=center rowSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Proposed</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>maximum</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>aggregate</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>offering price</FONT> </TD>
     <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-TOP: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=center rowSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Amount of</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>registration</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>fee</FONT></TD></TR>
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     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Common Stock (par value $1 per share)</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,000,000&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>shs.</FONT></FONT> </TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$20</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=center>&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>$</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>20,000,000</FONT> </TD>
     <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$786.00</FONT> </TD></TR>
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     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 2pt double" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Voting Trust Interests (1)</FONT></TD>
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     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 2pt double" align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>--</FONT></TD>
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     <TD align=left colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Representing the shares of Common Stock offered hereunder.</FONT> </TD></TR>
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<P><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrants hereby amend this Registration Statement on such date or dates as may be necessary to</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>delay its effective date until the registrants shall file a further amendment which specifically states that this&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Registration Statement shall thereafter become effective in accordance with section 8(a) of the Securities Act of&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>said section 8(a), may determine.</FONT></P>
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<P align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">P R O S P E C T U S</FONT></U></B></P>
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     <TD align=center colSpan=3><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>1,000,000 Shares</FONT></B> </TD></TR>
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     <TD align=center colSpan=3><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>Graybar Electric Company, Inc.</FONT></B> </TD></TR>
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     <TD align=center colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Common Stock</FONT> </TD></TR>
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     <TD align=center colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">and related</FONT> </TD></TR>
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     <TD align=center colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Voting Trust Interests</FONT> </TD></TR>
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     <TD align=center colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">offered to</FONT> </TD></TR>
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     <TD align=center colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Employees and Qualified Retirees of Graybar Electric Company, Inc.</FONT> </TD></TR>
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     <TD align=center colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">under the</FONT> </TD></TR>
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     <TD align=center colSpan=3>&nbsp; <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">THREE-YEAR COMMON STOCK PURCHASE PLAN</FONT> </TD></TR>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Graybar Electric Company, Inc. (&#147;Graybar&#148; or the &#147;Company&#148;) is offering an aggregate of up to 1,000,000 shares of Common Stock and related Voting Trust Interests in the 2007 Voting Trust to eligible employees and qualified retirees under the second offering pursuant to the Three-Year Common Stock Purchase Plan adopted in June of 2007 (the &#147;Plan&#148;). If you are eligible to subscribe, you may purchase shares by completing a Subscription Agreement in the manner set forth in this Prospectus. As of June 30, 2008, approximately 80% of the presently outstanding Common Stock is held in the Voting Trust established in 2007. The 2007 Voting Trust Agreement is described under the heading &#147;Summary of Certain Provisions of the Voting Trust Agreement&#148; and, unless stated otherwise, all references in this Prospectus to the Voting Trust Agreement mean the 2007 Voting Trust Agreement.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Subscriptions will be irrevocable unless your employment terminates for any cause other than retirement on a pension (other than a deferred pension), or you receive a &#147;hardship&#148; withdrawal from Account K under Graybar&#146;s Profit Sharing and Savings Plan, in which case your subscription will be canceled as to shares not yet issued. The Company has the option to repurchase, at $20.00 per share, shares of Common Stock owned by you or Voting Trust Interests representing them</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>, </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>in the event you desire to sell, transfer or otherwise dispose of them or in the event of your death or termination of your employment other than by retirement on a pension (other than a deferred pension). See &#147;The 2008 Offering,&#148; &#147;Three-Year Common Stock Purchase Plan&#148; and &#147;Description of Common Stock --&nbsp;Repurchase Option.&#148; No public market exists for shares of the Company&#146;s Common Stock or for Voting Trust Interests representing them, and no such markets are expected to develop.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Purchasing Graybar Common Stock pursuant to the Three-Year Common Stock Purchase Plan involves certain risks. See &#147;Risk Factors,&#148; beginning on page 7.</FONT></B></P>
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<P><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Neither the Securities and Exchange Commission nor any state securities commission has<BR>
</FONT></B><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>approved or disapproved of these securities or passed upon the accuracy or adequacy of this<BR>
</FONT></B><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Prospectus. Any representation to the contrary is a criminal offense.</FONT></B> </P>
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     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 2pt double; BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" align=left width="20%" rowSpan=2>&nbsp;</TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" align=center width="29%" rowSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Price to Public</FONT> </TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" align=center width="32%" rowSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Underwriting Discounts</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>and Commissions</FONT> </TD>
     <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-TOP: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" align=center width="18%" rowSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Proceeds to the</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Company</FONT> </TD></TR>
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     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Per Unit</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$20</FONT> </TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>None</FONT> </TD>
     <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-BOTTOM: #000000 1pt solid" align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$20</FONT> </TD></TR>
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     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 2pt double; BORDER-BOTTOM: #000000 2pt double" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Total</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 2pt double" align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$20,000,000</FONT> </TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 2pt double" align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>None</FONT> </TD>
     <TD style="BORDER-RIGHT: #000000 2pt double; BORDER-BOTTOM: #000000 2pt double" align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$20,000,000</FONT> </TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The proceeds to Graybar are before the deduction of expenses payable by us estimated at $100,000. To the extent that subscription rights are not exercised, the proceeds will be reduced by $20.00 for each share not subscribed for. To the extent that shares are purchased under the installment method, receipt of the proceeds will be deferred. See &#147;The 2008 Offering.&#148;</FONT></P>
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     <TD align=center colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The date of this Prospectus is October 22, 2008.</FONT> </TD></TR></TABLE><BR>
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     <TD align=center colSpan=2><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">TABLE OF CONTENTS</FONT></B> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
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     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Page</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">PROSPECTUS SUMMARY</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">RISK FACTORS</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">7</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">THE 2008 OFFERING</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">8</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">PURPOSE OF ISSUE</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">12</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">DIVIDENDS</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">12</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">DETERMINATION OF OFFERING PRICE</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">13</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">CAPITALIZATION</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">13</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">DESCRIPTION OF COMMON STOCK</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">15</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">DESCRIPTION OF DELEGATED AUTHORITY PREFERRED STOCK</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">17</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">INFORMATION CONCERNING THE VOTING TRUSTEES</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">18</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">SUMMARY OF CERTAIN PROVISIONS OF THE VOTING TRUST AGREEMENT</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">20</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">LEGAL MATTERS</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">24</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">EXPERTS</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">24</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">WHERE YOU CAN FIND MORE INFORMATION</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">24</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">INCORPORATION BY REFERENCE</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">24</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">THREE-YEAR COMMON STOCK PURCHASE PLAN</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Exhibit A</FONT> </TD></TR></TABLE><BR>
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     <TD vAlign=top align=center rowSpan=4><FONT face="SymbolMT,Times New Roman,Times,serif">-</FONT></TD>
     <TD vAlign=top align=left colSpan=2 rowSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">You should only rely on the information contained or incorporated by reference in this&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Prospectus.</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">We have not authorized any person to provide you with different&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">information. If anyone provides you with different or inconsistent information, you&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">should not rely on it.</FONT> </TD></TR>
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     <TD colSpan=3>&nbsp; </TD></TR>
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     <TD vAlign=top align=center rowSpan=8><FONT face="SymbolMT,Times New Roman,Times,serif">-</FONT></TD>
     <TD vAlign=top align=left colSpan=2 rowSpan=8><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">We are not making an offer to sell these securities in any jurisdiction where the offer or&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">sale is not permitted. Certain states require that the offering be made through a dealer&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">registered in that state. The offering will be made to residents of those states through&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Huntleigh Securities Corporation. Huntleigh Securities Corporation provides financial&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">advice to Graybar on a retainer basis. If you were directed to this Prospectus, or if this&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Prospectus was provided to you, by Huntleigh Securities Corporation, you should contact&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the designated representative of Huntleigh Securities Corporation named in the cover&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">letter that accompanied this Prospectus if you have questions.</FONT> </TD></TR>
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     <TD vAlign=top align=center rowSpan=2><FONT face="SymbolMT,Times New Roman,Times,serif">-</FONT></TD>
     <TD align=left colSpan=2 rowSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">You should assume that the information appearing in this Prospectus is accurate as of the&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">date on the front cover of this Prospectus only.</FONT> </TD></TR>
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     <TD align=center rowSpan=2><FONT face="SymbolMT,Times New Roman,Times,serif">-</FONT></TD>
     <TD align=left colSpan=2 rowSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">This Prospectus does not constitute an offer to sell, or the solicitation of an offer to buy,&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">any securities other than the securities to which it relates.</FONT> </TD></TR>
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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">PROSPECTUS SUMMARY</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Because this is a summary, it does not contain all the information that may be important to you. You should read the entire Prospectus before you decide whether to subscribe for Common Stock.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">The Plan</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">This offering is being made under the Three-Year Common Stock Purchase Plan (the &#147;Plan&#148;), which allows for the </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">issuance in annual offerings in 2007, 2008 and 2009 </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of up to an aggregate of 2,000,000 shares </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of Common Stock </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">. In the 2007 offering pursuant to the Plan, 883,310 shares were offered to eligible employees and retirees and 557,704 shares were subscribed for. The terms of the 2008 offering, which are described herein, are substantially the same as the terms for the 2007 offering. The text of the Three-Year Common Stock Purchase Plan, which was approved by the directors on March 8, 2007 and by the shareholders on June 14, 2007, is attached as Exhibit A.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Each annual offering affords, with certain limited exceptions, an opportunity to purchase shares of Common Stock to each person who on September 30 of the year in which the offering is being conducted has been an active, full-time employee of the Company or its wholly owned subsidiary, Commonwealth Controls Corporation, continuously since March 31 of that year or who was an active, full-time employee on March 31 and retired thereafter on a pension (except a deferred pension).</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The limitation of eligibility to active, full-time employees and </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">qualified </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">retirees conforms with the policy initially adopted when the Company&#146;s active employees acquired all of </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Common Stock from Western Electric Company</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">, </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Incorporated in 1929 and continuously followed since then.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Accordingly, with certain limited exceptions, under the Plan, holders of Common Stock or Voting Trust Interests who on September 30 of the year in which the offering is made are not active, full-time employees of the Company or Commonwealth Controls Corporation continuously employed by the Company or Commonwealth Controls Corporation since March 31 of that year will not be entitled to participate in the offering, with the exception of active, full-time employees who retire on a pension (except a deferred pension) on or after March 31 and prior to October 1 of the year in which the offering is made.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Shares of Common Stock subscribed for pursuant to the terms of the Plan will, upon issuance, be deposited in the Voting Trust established by the Voting Trust Agreement and Voting Trust Interests will be issued in respect thereof, except that the Common Stock purchased by subscribers who prior to the offering are already shareholders of record who elected in 2007 not to participate in the Voting Trust Agreement will be recorded in a book-entry system maintained by Graybar and shall be uncertificated unless the subscriber makes (or has made)&nbsp;a written request to the Secretary of Graybar for a certificate, in which case, a certificate shall be issued and delivered directly to such subscriber. The Voting Trust Interests also will be uncertificated and evidenced by a book-entry system maintained by the Voting Trustees unless a subscriber requests (or has previously requested) that voting trust certificates be issued in respect thereof by</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">checking the appropriate box on the Subscription Agreement or sends (or has sent) a written request to the Voting Trustees.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">All subscribed shares of Common Stock will be issued and held subject to the terms, provisions, restrictions and qualifications set forth in the Restated Certificate of Incorporation of the Company, as amended, which, among other things, provides the Company with the option to repurchase shares of its Common Stock at the price at which such shares were issued, with appropriate adjustment for current dividends, in the event any holder of Common Stock wants to sell, transfer or otherwise dispose of any of his or her shares of such Common Stock, or in the event of his or her death or in the event of termination of his or her employment other than by retirement on a pension (except a deferred pension). The Voting Trust Interests to be issued under the Voting Trust Agreement will provide, in substance, that every Voting Trust Interest is issued and held upon and subject to the same terms and conditions (including all restrictions) upon which Common Stock of the Company is issued and held. Each subscriber</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">, </FONT><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">by completing a Subscription Agreement</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">, </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">will specifically agree to be bound by the provisions of the </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Company&#146;s </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Restated Certificate of Incorporation and will agree that all Common Stock or Voting Trust Interests held by such subscriber shall be subject to those provisions.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Plan provides that no corporate action that would result in a distribution of Common Stock or other assets of the Company to its shareholders (except the payment of cash dividends or the issuance of shares of Common Stock pursuant to the installment payment method) will be taken without first giving notice of such proposed action to subscribers in this offering who have not then completed their installment payments on the Common Stock for which they have subscribed. Such subscribers will be granted not less than 20 days to accelerate their payments on such Common Stock in order that they may obtain the benefits of such action. Subscribers who elected to use payroll deduction have the right at any time to pay the full remaining amount due.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Plan will remain in effect until January 31, 2010 unless terminated before that date by the Board of Directors of the Company, and thereafter insofar as the provisions relate to shares of Common Stock subscribed for under the installment payment method as described in the Plan, but not yet issued.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">The 2008 Offering</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">We are offering eligible employees and retirees the right to subscribe in the 2008 offering for an aggregate of up to 1,000,000 shares of Common Stock at $20.00 per share pursuant to the Plan. Subject to certain limited exceptions, you are eligible to subscribe if you were an active, full-time employee of the Company or Commonwealth Controls Corporation on March 31, 2008, and thereafter either (a) on September 30, 2008 had been continuously employed since March 31, 2008 by the Company or Commonwealth Controls Corporation, or (b) prior to October 1, 2008 had retired on a pension (except a deferred pension). The maximum number of shares that you may purchase is one share for each $600.00 of your base salary rate at March 31, 2008 increased by the applicable multiplier specified below. The maximum number of shares you may purchase will be reduced on a pro rata basis in the unlikely event that the aggregate number of shares subscribed for by all employees exceeds 1,000,000. If you wish, you may subscribe for less than the maximum number of shares.</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">This offering will remain open from October 22, 2008 until 5:00 p.m., Central Standard Time, on December 5, 2008. You have the option of paying for all of the shares subscribed for on or before January 9, 2009 or paying for all shares subscribed for on an installment basis.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Shares of Common Stock subscribed for pursuant to the terms of the Plan will, upon issuance, be deposited in the Voting Trust established by the Voting Trust Agreement and Voting Trust Interests will be issued in respect thereof, except that Common Stock subscribed for by subscribers who prior to this offering are already shareholders of record who elected in 2007 not to participate in the Voting Trust Agreement will be recorded in a book-entry system maintained by Graybar and will be uncertificated unless written request for a certificate is made </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(or has been made) </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">to the Secretary of Graybar, in which case </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">subscribers </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">will receive stock certificates representing the shares for which they subscribe. The Voting Trust Interests also will be uncertificated and evidenced by the book-entry system maintained by the Voting Trustees unless a subscriber requests (or has previously requested) that voting trust certificates be issued in respect thereof by checking the appropriate box on the Subscription Agreement or sends (or has sent) a written request to the Voting Trustees.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Shares paid for in full will be issued as of January 9, 2009. If chosen, installment payments will commence with the second bi-weekly payroll payment date in January 2009 and end with the last bi-weekly payroll payment date in November 2009. Shares paid for in installments will be issued of record by the tenth day of March, June, September and December to the extent they have been fully paid for. Subscribers who elect to use payroll deduction have the right at any time to pay the full remaining amount due and, upon any such accelerated payment, any shares that have been fully paid for will be issued and the payroll deduction will no longer apply.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The number of shares to be offered to each eligible subscriber in 2008 will be determined by dividing the applicable base salary rate of the subscriber by $600.00 and multiplying that amount by the applicable multiplier shown in the following table based on his or her salary classification on March 31, 2008, with fractional shares being disregarded:</FONT></P>
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     <TD width="32%"></TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Grade/Band Classifications</FONT></U></B> </TD>
     <TD align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Multiplier</FONT></U></B> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Executives EX1 through EX5</FONT> </TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3.00</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Grades 17, 18, 19 and 20 and Band M1</FONT> </TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2.50</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Grades 15 and 16 and Band M2</FONT> </TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2.25</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Grades P and Q</FONT> </TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1.90</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Grades N and O</FONT> </TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1.85</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Grade 14 or below covered either by the</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Management Incentive Plan or the</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Sales Incentive Plan and Band M3</FONT> </TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1.75</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Grades J, K, L and M</FONT> </TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1.50</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">All others</FONT> </TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1.25</FONT> </TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Board of Directors determined the appropriate number of shares to be offered to each eligible employee and eligible retiree of Commonwealth Controls Corporation using salary classifications comparable to those listed in the table above.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 3 -</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The proceeds from this offering will be added to working capital, in part to replenish amounts previously used to repurchase outstanding shares of Common Stock (or Voting Trust Interests representing them) pursuant to our repurchase option. From January 1, 2008 through July 31, 2008, the Company repurchased 269,818 shares (or Voting Trust Interests representing them) for an aggregate purchase price of $5,396,360. To the extent that shares offered are not subscribed for by employees and qualified retirees, they will not be offered for sale to anyone else and the number of shares sold and the proceeds received will be correspondingly reduced.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Business</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Graybar is a New York corporation, incorporated on December 11, 1925. We are engaged in the distribution of electrical, telecommunications and networking products and the provision of related supply chain management and logistics services, primarily to construction contractors, industrial plants, telephone companies, power utilities, federal, state and local governments and commercial users in North America. All products sold by us are purchased by us from others. Our business activity is primarily with customers in the United States. We also have subsidiary operations with distribution facilities in Canada and Puerto Rico.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">We distribute over one million products (stockkeeping units) made by nearly 4,400 primary manufacturers through our network of distribution facilities located in 13 geographical districts throughout the United States. We operate a main distribution facility in each district along with a number of branch distribution facilities, each of which carries an inventory of products and operates as a wholesale distributor for the territory in which it is located. In addition, we operate seven zone warehouses and three service centers containing inventories of both standard and specialized products. Both the zone warehouses and the service centers replenish the inventories carried at the main and branch distribution facilities and make shipments directly to customers.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Graybar is 100% owned by our active and retired employees and there is no public trading market for our Common Stock. At July 31, 2008, 8,001,372 shares of Common Stock were issued and outstanding and 218,</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">149 </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">shares subscribed for pursuant to the 2007 offering remained to be paid for on the installment method and had not been issued. An additional 304,299 shares of Common Stock have been acquired by the Company and are held in treasury as of July 31, 2008. As of June 30, 2008, approximately 80% of the issued and outstanding shares of Common Stock were held of record by D. E. DeSousa, L. R. Giglio, T. S. Gurganous, R. D. Offenbacher and R. A. Reynolds, Jr. as Voting Trustees under the Voting Trust Agreement among the Voting Trustees, the Company and the shareholders of the Company who have elected to participate therein (the &#147;Participating Shareholders&#148;). Under the Voting Trust Agreement, Participating Shareholders have deposited their shares of Common Stock with the Voting Trustees and have been issued Voting Trust Interests representing those shares. The Voting Trust was established to permit the owners of shares of Common Stock deposited in the Voting Trust to act together concerning the management of Graybar and the voting on certain matters presented to the shareholders.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Our address and telephone number are 34 North Meramec Avenue, St. Louis, Missouri 63105 (314-573-9200). The mailing address of our principal executive offices is P.O. Box 7231,</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 4 -</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">St. Louis, Missouri 63177. Graybar also maintains an internet website at </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">www.graybar.com</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">. Except as expressly provided herein, information on our website is not part of this Prospectus.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">The Voting Trust Agreement</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">As of June 30, 2008, approximately 80% of the outstanding Common Stock is held in the Voting Trust established by a Voting Trust Agreement that became effective on March 16, 2007. The Voting Trust Agreement will expire on March 15, 2017 unless sooner terminated.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Shares of Common Stock that you purchase will be deposited in the Voting Trust and Voting Trust Interests representing them will be issued to you unless you currently are a shareholder of record of Common Stock who elected in 2007 not to participate in the Voting Trust Agreement with respect to the shares you already own. In that case, Common Stock that you purchase will be recorded in a book-entry system maintained by Graybar and will be uncertificated unless you make </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(or have made) </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">a written request for a certificate to the Secretary of Graybar, in which case, you will receive one or more stock certificates representing any additional shares that you purchase. Likewise, Voting Trust Interests issued to you will be uncertificated unless you request or have requested that voting trust certificates be issued in respect thereof.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Under the Voting Trust Agreement, the Voting Trustees are entitled in their discretion and using their best judgment to vote all the shares deposited in the Voting Trust on the election of directors and the ratification, approval or disapproval of any other action or proposed action of the Company requiring a vote or consent by shareholders, except that the Voting Trustees may not vote on the merger or consolidation of Graybar into or with another corporation, the sale of all or substantially all of our assets or our liquidation or dissolution without the consent of the holders of Voting Trust Interests representing at least 75% of the aggregate number of shares then deposited. The Voting Trustees are not entitled to sell, transfer, or otherwise dispose of shares deposited with them other than to return them to Participating Shareholders in accordance with the Voting Trust Agreement.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Holders of Voting Trust Interests will receive cash dividends paid on Common Stock beneficially owned by them and held by the Voting Trustees. Any Common Stock paid as a stock dividend on beneficially owned shares will be deposited in the Voting Trust and Voting Trust Interests will be issued to the beneficial owner of the Common Stock upon which the stock dividends are paid.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Selected Financial Data</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The following&nbsp;selected financial data for the five years ended December 31, 2007 are derived from the audited consolidated financial statements of Graybar Electric Company, Inc.&nbsp;The financial data for the six month periods ended June 30, 2008 and 2007 are derived from unaudited financial statements.&nbsp;The unaudited financial statements include all adjustments, consisting of normal recurring accruals, which Graybar considers necessary for a fair presentation of the financial position and the results of operations for these periods.&nbsp;Operating results for the six months ended June 30, 2008 are not necessarily indicative of the results that may be expected for the entire year ending December 31, 2008.&nbsp; The data should be read in conjunction with "Management's Discussion and Analysis</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 5 -</FONT></P>
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<A name="page_10"></A>&nbsp;
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of Financial Condition and Results of Operations" and the consolidated financial statements, related notes, and other financial information that are included in the Annual Report on Form 10-K for the year ended December 31, 2007 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 filed with the SEC and incorporated by reference in this Prospectus.&nbsp;See &#147;Incorporation by Reference.&#148;</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
     <TD width="21%"></TD>
     <TD width="2%"></TD>
     <TD width="6%"></TD>
     <TD width="3%"></TD>
     <TD width="3%"></TD>
     <TD width="9%"></TD>
     <TD width="3%"></TD>
     <TD width="9%"></TD>
     <TD width="2%"></TD>
     <TD width="2%"></TD>
     <TD width="8%"></TD>
     <TD width="2%"></TD>
     <TD width="9%"></TD>
     <TD width="2%"></TD>
     <TD width="10%"></TD>
     <TD width="3%"></TD>
     <TD width="5%"></TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center colSpan=3 rowSpan=3><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Six Months Ended</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>June 30,</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>(Unaudited)</FONT></B> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center colSpan=12><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Years Ended December 31,</FONT></B></TD>
     <TD align=right>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=center colSpan=2><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>2003</FONT></U></B></TD>
     <TD align=right>&nbsp; </TD>
     <TD align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>2004</FONT></U></B> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>2005</FONT></U></B> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>2006</FONT></U></B> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>2007</FONT></U></B> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>2007</FONT></U></B> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>2008</FONT></U></B> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=center colSpan=3>&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(In thousands, except for</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=center colSpan=12><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(In thousands, except for per share data)</FONT></TD>
     <TD align=right>&nbsp; </TD>
     <TD align=center colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>per share data)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>INCOME STATEMENT DATA:</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net Sales</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,802,452</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4,079,553</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4,288,043</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,009,143</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,258,301</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,563,016</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,703,393</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Income Before Cumulative</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Effect of Change in</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp;</TD>
     <TD align=left>&nbsp;</TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accounting Principle</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>8,465</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>14,018</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>22,398</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>57,388</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>83,421</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>39,669</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>47,366</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cumulative Effect of</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Change in Accounting</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Principle, net of $3,587</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Tax Effect </FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(A)</FONT></SUP> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(5,634</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net Income</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>8,465</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>14,018</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>16,764</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>57,388</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>83,421</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>39,669</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>47,366</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net Income Applicable to</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Common Stock </FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(B)</FONT></SUP> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>8,463</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>14,017</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>16,764</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>57,388</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>83,421</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>39,669</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>47,366</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Income Per Share of</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Common Stock Before</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cumulative Effect of Change</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>in Accounting Principle </FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(C)</FONT></SUP> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1.02</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1.77</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2.91</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>7.42</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>10.58</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5.04</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5.91</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cumulative Effect of Change</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>in Accounting Principle Per</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Share of Common Stock </FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(C)</FONT></SUP> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(0.73</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net Income Per Share of</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Common Stock </FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(C)</FONT></SUP> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1.02</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1.77</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2.18</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>7.42</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>10.58</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5.04</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5.91</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash Dividends Per Share of</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Common Stock</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2.00</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2.00</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2.00</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2.00</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2.00</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.60</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.60</FONT> </TD></TR>
<TR>
     <TD colSpan=17>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>BALANCE SHEET DATA:</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Working Capital</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>416,612</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>396,589</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>398,889</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>415,465</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>394,291</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>455,032</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>460,397</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Total Assets</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,422,130</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,451,372</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,443,387</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,508,246</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,532,028</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,579,252</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,571,550</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Long-term Debt</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>254,381</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>205,603</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>233,527</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>203,869</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>115,419</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>193,362</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>132,184</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Total Liabilities</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,034,547</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,059,008</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,061,952</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,065,523</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,052,411</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,092,348</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,044,255</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Shareholders&#146; Equity</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>387,583</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>392,364</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>381,435</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>442,723</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>479,617</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>486,904</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>527,295</FONT> </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" width="5%">&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" width="15%">&nbsp;</TD>
     <TD width="80%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD vAlign=top align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>(A)</FONT> </TD>
     <TD align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2005 results reflect the adoption of Financial Accounting Standards Board Interpretation&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">No. 46, &#147;Consolidation of Variable Interest Entities &#150; an interpretation of ARB No. 51&#148; (FIN&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">46), and its subsequent revision FIN 46R.</FONT></FONT> </TD></TR></TABLE><BR>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 6 -</FONT></P>
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<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
     <TD width="5%"></TD>
     <TD width="95%"></TD></TR>
<TR vAlign=bottom>
     <TD vAlign=top align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>(B)</FONT> </TD>
     <TD vAlign=top align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Income applicable to common stock reflects net income less preferred dividends.</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD vAlign=top align=left rowSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>(C)</FONT></TD>
     <TD align=left rowSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">All periods adjusted for the declaration of a twenty percent (20%) stock dividend in&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">December 2007, the declaration of a&nbsp;ten&nbsp;percent&nbsp;(10%)&nbsp;stock&nbsp;dividend in December 2006&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">and the declaration of a five percent (5%) stock dividend in December 2005.</FONT> </TD></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom></TR></TABLE><BR>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">RISK FACTORS</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Before purchasing shares of our Common Stock offered hereby, you should carefully consider the following risk factors together with the others set forth in Item 1A, &#147;Risk Factors&#148; of our Annual Report on Form 10-K for our fiscal year ended December 31, 2007 and in the other information contained or incorporated by reference in this Prospectus, including our historical financial statements and the related notes thereto. These risk factors, among others, could cause actual results to differ materially from those currently anticipated. See &#147;Where You Can Find More Information&#148; and &#147;Incorporation by Reference.&#148;</FONT></P>
<P align=left><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">There is no trading market for our Common Stock.</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">No holder of our Common Stock (or Voting Trust Interests representing our Common Stock) may sell, transfer or otherwise dispose of shares (or the Voting Trust Interests) without first offering Graybar the option to purchase them at the price at which they were issued, $20.00 per share, with appropriate adjustment for current dividends. In the past, Graybar has always exercised its option and we expect to continue to do so. However, were Graybar to elect not to exercise its option at some time in the future, there can be no assurance that a public trading market would develop or as to the price at which shares would trade if a public trading market did develop.</FONT></P>
<P align=left><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Appreciation of the Common Stock is limited.</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The repurchase price for the Common Stock (or Voting Trust Interest representing our Common Stock) under the option to purchase is the same as the offer price, $20.00 per share. Accordingly, as long as Graybar exercises its option to purchase, appreciation in the value of an investment in the Common Stock is dependent solely on the Company&#146;s ability and willingness to declare stock dividends.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Although stock dividends and stock splits have been effected from time to time, including a twenty percent (20%) stock dividend issued on February 1, 2008 to shareholders of record as of January 3, 2008, a ten percent (10%) stock dividend issued on February 1, 2007 to shareholders of record as of January 3, 2007 and a five percent (5%) stock dividend issued on February 1, 2006 to shareholders of record as of January 3, 2006, there can be no assurance that additional stock dividends or stock splits will be effected.</FONT></P>
<P align=left><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">The value of the Common Stock is dependent to a substantial degree upon the regular payment of dividends.</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">As a result of the limited appreciation potential, the value of the Common Stock is derived primarily from the payment of cash dividends. Although cash dividends have been paid on the Common Stock each year since 1929, and at an annual rate of $2.00 per share since 1970</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 7 -</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(10% of the price at which shares of Common Stock have been issued historically), there can be no assurance that the Company will continue to be able to pay dividends on the Common Stock.</FONT></P>
<P align=left><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">The fact that, as of June 30, 2008, approximately 80% of the outstanding Common Stock is held in the Voting Trust and voted by the Voting Trustees, the existence of the Company&#146;s repurchase option and the authority of the Board of Directors to issue Delegated Authority Preferred stock may deter an attempted change in control.</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Voting Trust and the repurchase option described above and the issuance of Delegated Authority Preferred, as described below, could have the effect of delaying or preventing a change in control of the Company or discouraging an attempt by a third party to acquire control of the Company by tender offer or other means. As long as a substantial number of shares of Common Stock are subject to the Voting Trust Agreement or any successor voting trust agreement, it will not be possible for a third party to gain control of management without the approval of a majority of the then incumbent Voting Trustees. Similarly, unless the Company waives its right to repurchase Common Stock and Voting Trust Interests, which would require approval of the then directors, consummation of a third-party tender offer or other acquisition transaction may not be possible. The Board of Directors could also increase the number of votes required to approve a change in control of the Company by issuing Delegated Authority Preferred with voting rights.</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif"></FONT></B>&nbsp;</P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">THE 2008 OFFERING</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The 2008 offering is the second annual offering made under the Plan. The Company is offering to sell to eligible, active, full-time employees and retirees up to 1,000,000 shares.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Employees entitled to subscribe.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">With certain exceptions described below, each person who on September 30, 2008 was an active, full-time employee of the Company or Commonwealth Controls Corporation and had been continuously employed by the Company or Commonwealth Controls Corporation since March 31, 2008, or who on March 31, 2008 was such an active employee and thereafter retired on a pension (other than a deferred pension) prior to October 1, 2008, is entitled to subscribe for the number of shares of the Company&#146;s Common Stock, par value $1.00 per share with a stated value of $20.00 per share, determined pursuant to Section 3 of the Plan, at the price of $20.00 per share. Such persons are sometimes referred to as &#147;eligible participants&#148; and after completing a Subscription Agreement are referred to as &#147;subscribers&#148;; provided, however, that the term &#147;eligible participants&#148; shall not include: (a) those who receive pensions (other than eligible persons who retired on or after March 31, 2008), or retainers, whether or not currently employed, (b) those who are employed solely on a contract basis or who by written agreement have released all stock subscription rights, or (c) those included in a collective bargaining unit represented by a labor organization where the agreement between the Company or Commonwealth Controls Corporation and the labor organization excludes such persons from subscribing for Common Stock of the Company.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 8 -</FONT></P>
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<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Period for and method of making subscription.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Any eligible participant desiring to subscribe for shares of Common Stock shall either complete and sign a Subscription Agreement in the form approved for such purpose and file it on or before December 5, 2008 with the Secretary at the executive offices of the Company, P.O. Box 7231, St. Louis, Missouri 63177 or complete and submit an on-line subscription in the manner set forth at </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">www.planenrollments.com/gbe </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">before 5:00 p.m., Central Standard Time on that date. No subscription shall be effective and binding unless and until accepted by the Company at its executive offices. Subscriptions must be received prior to 5:00 p.m., Central Standard Time on December 5, 2008.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Determination of number of shares for which an eligible employee is entitled to subscribe.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The maximum number of shares for which an eligible participant may subscribe shall be determined as follows.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Under Section 3.1 of the Plan, the Subscription Right of each eligible participant, subject to increase as provided in Section 3.2 of the Plan and reduction as provided in Section 3.3 of the Plan, shall be one (1) share for each $600.00 of his or her base salary rate at March 31, 2008. Fractional shares resulting from this computation shall be disregarded.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Under Section 3.2 of the Plan, the number of shares determined in accordance with Section 3.1 of the Plan for eligible participants who were, on March 31, 2008, in the salary classifications listed below, shall be increased by the applicable multiplier as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
     <TD width="5%"></TD>
     <TD width="94%"></TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT face="SymbolMT,Times New Roman,Times,serif">-</FONT></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Eligible Company participants in Executive classifications EX 1 through EX 5 --</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3.00 times;</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT face="SymbolMT,Times New Roman,Times,serif">-</FONT></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Eligible Company participants in Grades 17 through 20 and Band M1 -- 2.50</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">times;</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT face="SymbolMT,Times New Roman,Times,serif">-</FONT></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Eligible Company participants in Grades 15 and 16 and Band M2 -- 2.25 times;</FONT> </TD></TR>
<TR>
     <TD align=left></TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT face="SymbolMT,Times New Roman,Times,serif">-</FONT></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Eligible Company participants in Grades P and Q -- 1.90 times;</FONT> </TD></TR>
<TR>
     <TD align=left></TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT face="SymbolMT,Times New Roman,Times,serif">-</FONT></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Eligible Company participants in Grades N and O -- 1.85 times;</FONT> </TD></TR>
<TR>
     <TD align=left></TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD vAlign=top align=center rowSpan=3><FONT face="SymbolMT,Times New Roman,Times,serif">-</FONT></TD>
     <TD vAlign=top align=left rowSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Eligible Company participants in Grade 14 or below who are covered either by&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the Management Incentive Plan or the Sales Incentive Plan and Band M3 -- 1.75&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">times;</FONT> </TD></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom></TR>
<TR>
     <TD align=left></TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT face="SymbolMT,Times New Roman,Times,serif">-</FONT></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Eligible Company participants in Grades J, K, L and M -- 1.50 times;</FONT> </TD></TR>
<TR>
     <TD align=left></TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT face="SymbolMT,Times New Roman,Times,serif">-</FONT></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">All other eligible Company participants -- 1.25 times; and</FONT> </TD></TR>
<TR>
     <TD align=left></TD>
     <TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD vAlign=top align=center rowSpan=2><FONT face="SymbolMT,Times New Roman,Times,serif">-</FONT></TD>
     <TD vAlign=top align=left rowSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Eligible participants who are employees of Commonwealth Controls Corporation&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-- As determined by the Board of Directors for each eligible participant using the</FONT> closest comparable salary classification then in effect at Commonwealth Controls Corporation.</TD></TR>
<TR vAlign=bottom></TR></TABLE><BR>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 9 -</FONT></P>
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<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0> </TABLE><BR>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fractional shares resulting from the above computations shall be disregarded.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Under Section 3.3 of the Plan, in the unlikely event the aggregate number of shares subscribed for by all eligible participants were to exceed 1,000,000, the number of shares that each eligible participant will be entitled to purchase shall be reduced to a number determined by multiplying the number of shares such eligible participant has subscribed for (but in no event more than the number to which such participant is entitled to subscribe under Section 3 of the Plan) by a fraction, the numerator of which is 1,000,000, and the denominator of which is the aggregate number of shares subscribed for by all eligible participants. Fractional shares resulting from such computation shall be disregarded.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subscribers may elect to pay for shares subscribed for in one of the following methods:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
     <TD width="5%"></TD>
     <TD width="95%"></TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT face="SymbolMT,Times New Roman,Times,serif">-</FONT></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">All shares subscribed for by cash or check on or before January 9, 2009,</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD vAlign=top align=center rowSpan=3><FONT face="SymbolMT,Times New Roman,Times,serif">-</FONT></TD>
     <TD vAlign=top align=left rowSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">All shares subscribed for through the installment method through payroll&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">deductions (or if you are no longer on the Company&#146;s payroll, through direct</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">monthly payments) over an 11-month period.</FONT> </TD></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Shares and Voting Trust Interests will be issued as of January 9, 2009, in the case of shares paid for on or before January 9, 2009, and on a quarterly basis as of the tenth day of March, June, September and December to the extent full payment has been made for shares being purchased under the installment method.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Subscriptions will be irrevocable unless your employment terminates for any cause other than retirement on a pension (other than a deferred pension), or you receive a &#147;hardship&#148; withdrawal from Account K under Graybar&#146;s Profit Sharing and Savings Plan, in which case your subscription will be canceled as to shares not yet issued. In that event, the refund of any balance due to you will be made in the following quarter. If you have elected to pay for shares under the installment method, you may prepay the balance due on all or a portion of the shares being paid for under that method </FONT><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">at any time</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">. Upon prepayment, the shares so purchased shall be issued and such shares or any Voting Trust Interests representing them, shall be recorded and the payroll deduction shall no longer apply to them.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Common Stock Purchase Plan provides that no corporate action that will result in a distribution of stock or other assets to our shareholders (except the payment of cash dividends or the issuance of shares of Common Stock pursuant to the installment payment method) shall be taken during the term of the Plan without our first giving notice of the proposed action to subscribers under the Plan who shall not then have paid in full for the Common Stock for which they have subscribed. Those subscribers shall have a reasonable opportunity, not less than 20 days, to complete their payment on all shares subscribed for in order that they may obtain the benefits of the contemplated action.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Under the terms of the Plan and your subscription agreement, Common Stock that you purchase will be deposited in the Voting Trust and you will receive Voting Trust Interests in</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 10 -</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">exchange unless you are a holder of record of Common Stock as of the date hereof and elected in 2007 not to participate in the Voting Trust Agreement with respect to these shares. In that case, Common Stock that you purchase will be recorded in a book-entry system maintained by Graybar and shall be uncertificated unless written request for a certificate is made </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(or has been made) </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">to the Secretary of Graybar, in which case, you will receive one or more certificates representing the number of shares of Common Stock that you purchase. The Voting Trust Interests also will be uncertificated and evidenced by the book-entry system maintained by the Voting Trustees unless a subscriber requests (or has previously requested) that a voting trust certificate be issued in respect thereof by checking the appropriate box on the Subscription Agreement or sends (or has sent) a written request for a certificate to the Voting Trustees. For information concerning the Voting Trustees and the Voting Trust Agreement, see &#147;Information Concerning the Voting Trustees&#148; and &#147;Summary of Certain Provisions of the Voting Trust Agreement.&#148; A copy of the Voting Trust Agreement is being sent or being made available, together with this Prospectus, to each eligible employee who is not either a Participating Shareholder or a holder of record of Common Stock.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Limitation on Transferability.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Restated Certificate of Incorporation grants the Company the option to repurchase Common Stock held by you, including Common Stock purchased under the Plan, at $20.00 per share if you desire to sell, transfer or otherwise dispose of those shares, or if you die or if your employment terminates otherwise than by retirement on a pension (other than a deferred pension). The Voting Trust Agreement imposes the same restrictions with regard to Voting Trust Interests.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Company in the past always has exercised its repurchase option and expects to do so in the future. As a result, no trading market exists for the Common Stock or the Voting Trust Interests. If we should decide not to exercise our option at some point in the future, no assurance can be given that a public trading market in the shares of Common Stock or Voting Trust Interests would develop or as to the price at which they would trade if a public market did develop. In that case, it might be difficult for you to sell your Common Stock or Voting Trust Interests. Shares deposited in the Voting Trust may not be withdrawn before its expiration in 2017 or its earlier termination. See &#147;Common Stock Purchase Plan,&#148; &#147;Description of Common Stock -- Repurchase Option&#148; and &#147;Summary of Certain Provisions of the Voting Trust Agreement -- Restrictions on Transfer, and Right of the Company to Repurchase Voting Trust Interests Under Certain Circumstances.&#148;</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Subscription Agreement.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">If you desire to purchase shares of Common Stock, you must either complete and submit a Subscription Agreement on-line in the manner set forth at </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">http://www.planenrollments.com/gbe </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">or complete and sign a Subscription Agreement and mail it to the Secretary at:</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Graybar Electric Company, Inc.</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">P.O. Box 7231</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">St. Louis, Missouri 63177</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Attention: Secretary</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 11 -</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Subscriptions must be received prior to 5:00 p.m., Central Standard Time, on December 5, 2008.</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">PURPOSE OF ISSUE</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Common Stock Purchase Plan affords active, full-time employees and qualified retirees of the Company and Commonwealth Controls Corporation an opportunity to purchase Common Stock under the policy formulated in 1929 when the Company became an employee-owned company through acquisition by its then employees of all </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Common Stock from Western Electric Company, Incorporated.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">If fully subscribed, the net proceeds of this offering, after the deduction of estimated expenses, would be approximately $19,900,000. We intend to add all of the net proceeds from this offering to our working capital, in part to replenish amounts that have been used to repurchase Common Stock pursuant to our repurchase option. See &#147;The Offering&#148; and &#147;Description of Common Stock -- Repurchase Option.&#148; From January 1, 2008 through July 31, 2008, the Company repurchased 269,818 shares (or Voting Trust Interests representing </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">such shares</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">) for an aggregate purchase price of $5,396,360. Payments made for the Common Stock may also be applied to the repayment of short-term indebtedness incurred for working capital purposes and, to the extent not needed for that purpose, will be placed in our general funds or invested in short-term securities. We expect to continue to exercise our option to repurchase outstanding shares of Common Stock and Voting Trust Interests and to use working capital to make these purchases.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">To the extent shares offered under the Plan are not purchased, the number of shares sold and the proceeds received by us will be reduced. To the extent subscribers elect to purchase shares under the installment method, receipt of the proceeds by us will be deferred.</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">DIVIDENDS</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">We have paid cash dividends on our Common Stock every year since 1929. The following table sets forth the cash dividends per share of Common Stock declared during the periods indicated.</FONT></P>
<DIV align=left>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0>
<TR>
     <TD width="10%"></TD>
     <TD width="20%"></TD>
     <TD width="20%"></TD></TR>
<TR vAlign=bottom>
     <TD align=left colSpan=2 rowSpan=2></TD>
     <TD align=center rowSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Cash</FONT><BR>
<U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Dividends</FONT></U> </TD></TR>
<TR vAlign=bottom></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2006</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">First Quarter</FONT> </TD>
     <TD align=center><FONT style="WIDTH: 28pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">$0.30</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Second Quarter</FONT> </TD>
     <TD align=center><FONT style="WIDTH: 28pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">0.30</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Third Quarter</FONT> </TD>
     <TD align=center><FONT style="WIDTH: 28pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">0.30</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fourth Quarter</FONT> </TD>
     <TD align=center><FONT style="WIDTH: 28pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">1.10</FONT></TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2007</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">First Quarter</FONT> </TD>
     <TD align=center><FONT style="WIDTH: 28pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">$0.30</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Second Quarter</FONT> </TD>
     <TD align=center><FONT style="WIDTH: 28pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">0.30</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Third Quarter</FONT> </TD>
     <TD align=center><FONT style="WIDTH: 28pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">0.30</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fourth Quarter</FONT> </TD>
     <TD align=center><FONT style="WIDTH: 28pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">1.10</FONT></TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2008</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">First Quarter</FONT> </TD>
     <TD align=center><FONT style="WIDTH: 28pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">$0.30</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Second Quarter</FONT> </TD>
     <TD align=center><FONT style="WIDTH: 28pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">0.30</FONT></TD></TR></TABLE></DIV><BR>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 12 -</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">On December 13, 2007, a twenty percent (20%) stock dividend was declared to shareholders of record as of January 3, 2008. Shares representing this dividend were issued on February 1, 2008. On December 14, 2006, a ten percent (10%) stock dividend was declared to shareholders of record as of January 3, 2007. Shares representing this dividend were issued on February 1, 2007. On December 8, 2005, a five percent (5%) stock dividend was declared to shareholders of record as of January 3, 2006. Shares representing this dividend were issued on February 1, 2006. There can be no assurance that the Company will continue to be able to declare dividends on the Common Stock.</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">DETERMINATION OF OFFERING PRICE</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Shares are being offered at $20.00 per share based on the historical practice of the Company of setting a price which is affordable. It is not based on any formulation of market value.</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">CAPITALIZATION</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The following table sets forth our capitalization as of July 31, 2008 and as adjusted as of that date to reflect the sale of the 1,000,000 shares of Common Stock offered in the current offering under the Common Stock Purchase Plan and our receipt of the net proceeds, assuming that all shares offered will be purchased. Based on historical practice, the Company believes that less than all shares will be purchased, in which event the net proceeds will be less. Because we are unable to estimate the number of shares that will be purchased under the installment method, the &#147;As Adjusted&#148; column assumes that no shares will be purchased </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">under the installment method</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">. It also assumes that all of the net proceeds will be applied initially to the repayment of short-term borrowings. However, based on historical practice, the Company believes that a significant number of shares may actually be purchased under the installment method, in which event the receipt of the proceeds will be deferred. Eligible participants should read this table in conjunction with our consolidated financial statements, the related notes and &#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations,&#148; which are contained in our Annual Report on Form 10-K for the year ended December 31, 2007, and our Quarterly Reports for the quarters ended March 31, 2008 and June 30, 2008, each of which is incorporated herein by reference.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 13 -</FONT></P>
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<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
     <TD width="60%"></TD>
     <TD width="3%"></TD>
     <TD width="10%"></TD>
     <TD width="3%"></TD>
     <TD width="3%"></TD>
     <TD width="10%"></TD>
     <TD width="3%"></TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">As of July 31, 2008,</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">As</FONT></B> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Actual</FONT></U></B> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Adjusted</FONT></U></B> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">SHORT-TERM DEBT:</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=center colSpan=4><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(Dollars in thousands)</FONT></B> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Short-term borrowings (1)</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">28,418</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">8,518</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Current portion of long-term debt</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">32,338</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">32,338</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">LONG-TERM DEBT:</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">7.49% senior note, unsecured, due in annual</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">28,571</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">28,571</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">installments of $14,286 beginning in July 2005 through</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">July 2011</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Variable rate lease arrangement, secured by facilities,</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">27,715</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">27,715</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">due December 2014</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">6.59% senior note, unsecured, due in semiannual</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">30,000</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">30,000</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">installments of $3,750 beginning in October 2003</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">through April 2013</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">7.36% senior note, unsecured, due in semiannual</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">12,379</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">12,379</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">installments of $3,095 beginning in May 2001 through</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">November 2010 with final payment of $3,094 due in</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">May 2011</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">6.65% senior note, unsecured, due in annual</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">14,546</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">14,546</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">installments of $3,636 beginning in June 2003 through</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">June 2013</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">5.87% note, secured by facility, due in monthly</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3,191</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3,191</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">installments of $32 through June 2010, with final</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">payment of $3,167 due in July 2010</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">6.48% capital lease, due in monthly installments of $47</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1,263</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1,263</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">beginning in January 2007 through December 2011</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fixed and variable rate mortgages, secured by facilities,</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">129</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">129</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">various maturities</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">CAPITAL STOCK:</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Common Stock, $1 par value, $20 stated value &#150;</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">160,027</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">180,027</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">authorized 15,000,000 shares; outstanding 8,001,372</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">shares, actual; outstanding 9,001,372, as adjusted (2)</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Advance payments on subscriptions to common stock</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1,064</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1,064</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Retained Earnings</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">435,640</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">435,540</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Accumulated Other Comprehensive Income (Loss)</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(62,782</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">)</FONT> </TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(62,782</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">)</FONT> </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" width="4%">&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" width="15%">&nbsp;</TD>
     <TD width="80%"></TD></TR>
<TR vAlign=bottom>
     <TD vAlign=top align=left rowSpan=5><FONT style="WIDTH: 14pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">(1)</FONT></TD>
     <TD vAlign=top align=left colSpan=2 rowSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The borrowings under short-term credit agreements consist of issuances of commercial&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">paper and borrowings under bank lines of credit. We have a $200,000 Five-Year Credit&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Agreement with a group of banks at an interest rate based on the London Interbank&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Offered Rate (LIBOR) that currently expires in May 2012. There were no borrowings&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">outstanding under the Five-Year&nbsp;Credit Agreement at July 31, 2008.</FONT> </TD></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD vAlign=top align=left rowSpan=2></TD>
     <TD vAlign=top align=left colSpan=2 rowSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Company also has a $215,000 accounts receivable securitization program that will&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">expire on October 13, 2009. The securitization program provides for the sale of certain</FONT> </TD></TR>
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<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 14 -</FONT></P>
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<TR>
     <TD width="4%"></TD>
     <TD width="15%">&nbsp;</TD>
     <TD width="80%"></TD></TR>
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     <TD vAlign=top align=left rowSpan=10></TD>
     <TD vAlign=top align=left colSpan=2 rowSpan=10><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of the Company&#146;s trade receivables on a revolving basis to Graybar Commerce&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Corporation (GCC), a wholly owned, bankruptcy-remote, special purpose subsidiary.&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">GCC sells an undivided interest in the receivables to an unrelated multi-seller commercial&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">paper conduit. The Company accounts for the securitization as an on-balance sheet&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">financing arrangement because the Company has maintained effective control of the&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">accounts receivable through a call option that gives GCC the unilateral right to&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">repurchase the undivided interests. Accordingly, the accounts receivable and related debt&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">are included in the Company&#146;s consolidated balance sheets. GCC has granted a security&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">interest in its trade receivables to the commercial paper conduit. There were no&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">borrowings outstanding under the securitization program at July 31, 2008.</FONT> </TD></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom></TR>
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<TR vAlign=bottom></TR>
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<TR vAlign=bottom></TR>
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<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD vAlign=top align=left rowSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(2)</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT></TD>
     <TD vAlign=top align=left colSpan=2 rowSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Does not include 304,299 shares of Common Stock acquired and held in the Company&#146;s&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">treasury. Approximately 80% of the shares of Common Stock outstanding are held under&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the Voting Trust Agreement.</FONT> </TD></TR>
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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">DESCRIPTION OF COMMON STOCK</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Graybar&#146;s authorized capitalization consists of 10,000,000 shares of Delegated Authority Preferred Stock and 15,000,000 shares of Common Stock. The stated value of the Common Stock is $20.00 per share. As of June 30, 2008 there were 1,339 holders of Common Stock and 5,017 holders of Voting Trust Interests for Common Stock. No preferred stock is outstanding.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Dividend Rights</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Dividends may be paid upon the Common Stock at the discretion of the Board of Directors.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Voting Rights</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Except as otherwise required by law, holders of Common Stock have the exclusive right to vote for the election of directors and for all other purposes requiring the approval or consent of shareholders. As a general matter, the Voting Trustees as a group possess the voting power associated with the shares held of record under the Voting Trust Agreement, and such voting power is sufficient to assure the election of the persons nominated by the Board of Directors for election as directors and, except as provided otherwise in the Voting Trust Agreement, approval of any other matters brought before a meeting of shareholders. As of June 30, 2008, approximately 80% of the issued and outstanding shares of Common Stock are held by the Voting Trustees under the Voting Trust Agreement. The powers of the Voting Trustees to exercise the voting powers of the Common Stock are described under the heading &#147;Summary of Certain Provisions of the Voting Trust Agreement.&#148;</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Liquidation Rights</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">In the event of voluntary or involuntary dissolution, liquidation or winding-up of Graybar, after payment in full of the amounts required to be paid to any holders of preferred stock, the holders of Common Stock are entitled to share ratably in all remaining assets.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 15 -</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">In such event, if any preferred stock is outstanding, the holders would be entitled to receive the par value of the shares plus an amount equal to any dividends accrued thereon to the extent earned but unpaid to the date of payment.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Miscellaneous</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Common Stock has no conversion, preemptive or subscription rights and there are no sinking fund or redemption provisions applicable </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">to the Common Stock</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">. The outstanding Common Stock is, and the shares to be sold under the Common Stock Purchase Plan will be, when issued in accordance with the Plan, validly issued, fully paid and non-assessable. Under the New York Business Corporation Law, the ten largest holders of Common Stock are liable under specified conditions for debts, wages or salaries due and not paid by us to any laborers, servants or employees, other than contractors, for services performed by them for us.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Repurchase Option</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The following is a brief summary of the provisions of our Restated Certificate of Incorporation that place restrictions and limitations on the holding and sale, transfer, pledge or other disposition of Common Stock. These provisions also apply to Voting Trust Interests. Each of the shares of Common Stock or Voting Trust Interests were acquired for $20.00 per share.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">No holder of Common Stock may sell, transfer or otherwise dispose of any shares without first offering us the option to purchase those shares within 30 days after the offer for $20.00 per share, with appropriate adjustment for regular dividends, if any, declared and paid at the end of the quarter in which the offer is made.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">We also have the option to purchase for $20.00 per share, adjusted for dividends, the Common Stock of any shareholder who ceases to be an employee for any reason other than death or retirement on a pension (except a deferred pension) at any time after termination of employment until 30 days after the holder makes an offer to sell the Common Stock to us. In the event of the death of any shareholder, we have the option to purchase all or any part of his or her Common Stock from the estate for $20.00 per share, adjusted for dividends, at any time after the expiration of one year from the date of death until 30 days after the Common Stock has been offered to us. If the estate offers to sell the shares to us within the one-year period, our option terminates 30 days from the offer. In the past, we have always exercised these options and we expect to continue to do so.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">No shareholder may hypothecate or pledge Common Stock, except under an agreement of hypothecation or pledge containing provisions permitting us to exercise the repurchase options referred to above and to redeem the pledge of shares in the event of default upon payment of the lesser of the amount due on the pledge or the purchase price, with suitable provisions for redemption by the shareholder or payment of any balance to which the shareholder may be entitled. No shareholder may transfer or place any shares of Common Stock, or Voting Trust Interests representing shares, into a trust, except that we will, under certain circumstances, permit a transfer or placement upon receipt of a written agreement from the trustees and the shareholder in form satisfactory to us providing that the shareholder retains the right to direct the action to be taken by the trustees on any matter submitted to a vote by holders of Common Stock or Voting</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 16 -</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Trust Interests and permitting us to exercise the options referred to above and to redeem the shares, or Voting Trust Interests representing shares, if any party other than the holder or the trustee shall claim or establish ownership of or interest in the shares, or Voting Trust Interests representing shares, and requiring the trustees to comply with all provisions of our Restated Certificate of Incorporation relating to the sale, transfer or other disposition of shares.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The repurchase option described above could have the effect of delaying or preventing a change of control. See &#147;Risk Factors,&#148; beginning on page 7. In addition, any issuance of Delegated Authority Preferred Stock, with voting rights, may affect the outcome of any action requiring shareholder approval. See &#147;Description of Delegated Authority Preferred Stock,&#148; </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">below</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">DESCRIPTION OF DELEGATED AUTHORITY PREFERRED STOCK</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Restated Certificate of Incorporation authorizes 10,000,000 shares of a class of &#147;Delegated Authority&#148; Preferred Stock (the &#147;Delegated Authority Preferred&#148;). The term &#147;Delegated Authority&#148; refers to preferred stock, the creation and issuance of which has been authorized in advance by the shareholders and the terms, rights and limitations of which are determined by the Board of Directors of the Company upon issuance.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Board of Directors is empowered to authorize and issue shares of Delegated Authority Preferred from time to time in one or more series. Subject to the other provisions of the Company&#146;s Restated Certificate of Incorporation and any limitation prescribed by law, the Board of Directors is expressly authorized, at its discretion, to adopt resolutions to issue shares of Delegated Authority Preferred, to fix the number of shares and to change the number of shares constituting any series and to provide for or change the designations, relative rights, preferences and limitations thereof, including in each case voting rights, dividend rights (and whether the dividends are cumulative), dividend rates, terms of redemption (including sinking fund provisions), redemption prices, conversion rights (including convertibility into Common Stock) and liquidation preferences of the shares constituting any series of the Delegated Authority Preferred, all without any further action or vote by the shareholders. The Board of Directors will be required to make any determination to issue shares of Delegated Authority Preferred based on its judgment at the time as to the best interests of the Company and its shareholders. The Executive Committee of the Board will have the authority to take any action the complete Board of Directors may take.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Company currently has no arrangements, understandings, agreements or commitments with respect to the issuance of any shares of Delegated Authority Preferred, and the Company may never issue any Delegated Authority Preferred.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">If the resolutions adopted by the Board of Directors at the time of issuance so provide, the holders of Delegated Authority Preferred may have voting rights and shares of Delegated Authority Preferred may not be subject to the provisions of the Restated Certificate of Incorporation providing that holders of Common Stock may not sell, transfer or otherwise dispose of shares without offering the Company the option to purchase them.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 17 -</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Delegated Authority Preferred is intended to provide the Company with increased flexibility in meeting future financial and operating requirements because it will be available for issuance from time to time for any proper corporate purpose with such features as determined by the Board of Directors or the Executive Committee of the Board at that time. Such purposes would include, if market conditions warrant, issuance of Delegated Authority Preferred for cash to obtain equity capital for use by the Company.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">It should be noted that any issuance of Delegated Authority Preferred with voting rights might, under certain circumstances, have the effect of delaying or preventing a change in control of the Company by increasing the number of outstanding shares entitled to vote and by increasing the number of votes required to approve a change in control of the Company. Also, shares of voting or convertible preferred stock, or rights to purchase such shares, could be issued to render more difficult or discourage an attempt to obtain control of the Company by means of a tender offer, proxy contest, merger or otherwise. The ability of the Board of Directors to issue such additional shares of Delegated Authority Preferred, with the rights and preferences it deems advisable, could discourage an attempt by a party to acquire control of the Company by tender offer or other means. However, the creation of the Delegated Authority Preferred was not intended to be an anti-takeover measure and the Company is not aware of any third party plans to attempt to gain control of the Company.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The actual effect of the issuance of shares of Delegated Authority Preferred upon the rights of holders of the Common Stock cannot be determined until the Board of Directors or the Executive Committee of the Board establishes the specific rights of the holders of such Delegated Authority Preferred. However, the effects might include, among other things, restricting priority of dividends on the Common Stock, diluting the voting power of the Common Stock, reducing the book value of the Common Stock, or impairing the liquidation rights of the Common Stock. Holders of Common Stock will not have preemptive rights with respect to any issuance of the Delegated Authority Preferred.</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">INFORMATION CONCERNING THE VOTING TRUSTEES</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">As of June 30, 2008, approximately 80% of the issued and outstanding shares of Common Stock are held of record in the names of D. E. DeSousa, L. R. Giglio, T. S. Gurganous, R. D. Offenbacher and R. A. Reynolds, Jr., as Voting Trustees under the Voting Trust Agreement. As a result, the Voting Trustees share approximately 80% of the voting power with respect to election of directors and certain other matters requiring shareholder approval or consent. Shares of Common Stock held of record by the Voting Trustees are held for the benefit of holders of Voting Trust Interests issued by the Voting Trustees.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Voting Trust Agreement will terminate on March 15, 2017 unless sooner terminated as provided therein.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The names, positions with the Company and business addresses of the Voting Trustees are as follows:</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 18 -</FONT></P>
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     <TD width="30%"></TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Name and Position</FONT></U></B> </TD>
     <TD align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Business Address</FONT></U></B> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">R. A. Reynolds, Jr., Director and Chairman of the Board,</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">34 North Meramec Avenue</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">President and Chief Executive Officer</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">St. Louis, MO 63105</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">D. E. DeSousa, Director and Senior Vice President-</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">34 North Meramec Avenue</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">U.S. Business</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">St. Louis, MO 63105</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">L. R. Giglio, Director and Senior Vice President-Operations</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">34 North Meramec Avenue</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">St. Louis, MO 63105</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">T. S. Gurganous, Director and District Vice President</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">34 North Meramec Avenue</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">St. Louis, MO 63105</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">R. D. Offenbacher, Director and Senior Vice President-</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">34 North Meramec Avenue</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Sales and Marketing, Electrical</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">St. Louis, MO 63105</FONT> </TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The sole occupation of each Voting Trustee is his employment with the Company. All communications to the Voting Trustees should be addressed to the Voting Trustees, c/o Graybar Electric Company, Inc., P.O. Box 7231, St. Louis, Missouri 63177.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">As of July 31, 2008, each of the Voting Trustees owned Voting Trust Interests of record and beneficially as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0>
<TR>
     <TD width="40%"></TD>
     <TD width="40%"></TD>
     <TD width="20%"></TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Percent of</FONT></B> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Amount</FONT></B> </TD>
     <TD align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Class</FONT></U></B> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Name</FONT></U></B> </TD>
     <TD align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Owned (a)</FONT></U></B> </TD>
     <TD align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Owned</FONT></U></B> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">R. A. Reynolds, Jr.</FONT> </TD>
     <TD align=center><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">22,558</FONT></TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.282</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">D. E. DeSousa</FONT> </TD>
     <TD align=center><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">6,797</FONT></TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.085</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">L. R. Giglio</FONT> </TD>
     <TD align=center><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">10,236</FONT></TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.128</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">T. S. Gurganous</FONT> </TD>
     <TD align=center><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">11,173</FONT></TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.140</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">R. D. Offenbacher</FONT> </TD>
     <TD align=center><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">13,666</FONT></TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.171</FONT> </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" width="5%">&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" width="15%">&nbsp;</TD>
     <TD width="80%"></TD></TR>
<TR vAlign=bottom>
     <TD align=left colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The number of shares of Common Stock to which the Voting Trust Interests relate.</FONT></TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No person owns of record and beneficially shares of Common Stock or Voting Trust</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Interests constituting more than 1%&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of the outstanding Common Stock.</FONT></FONT></TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left colSpan=3 rowSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of July 31, 2008, all officers and directors as a group owned beneficially, directly and</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">indirectly, Voting Trust Interests representing</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">133,466 shares of Common Stock (representing&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">approximately 2% of the outstanding shares).</FONT></TD></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom></TR></TABLE><BR>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 19 -</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">We anticipate that each of the Voting Trustees will acquire a beneficial interest in all or a part of the Common Stock that he will be entitled to purchase under the Plan. The approximate number of shares that each of the Voting Trustees will be entitled to purchase is as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0>
<TR>
     <TD width="49%"></TD>
     <TD width="50%"></TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Name</FONT></U></B> </TD>
     <TD align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Number of Shares</FONT></U></B> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">R. A. Reynolds, Jr.</FONT> </TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2,991</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">D. E. DeSousa</FONT> </TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1,377</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">L. R. Giglio</FONT> </TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1,218</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">T. S. Gurganous</FONT> </TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1,029</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">R. D. Offenbacher</FONT> </TD>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1,323</FONT></TD></TR></TABLE><BR>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SUMMARY OF CERTAIN PROVISIONS OF THE VOTING TRUST AGREEMENT</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The statements under this heading relating to the Voting Trust Agreement are summaries and may not contain all the information that may be important to you and are qualified in their entirety by reference to the Voting Trust Agreement. Copies of the Voting Trust Agreement are on file at our principal executive office and with the SEC in Washington, D.C. See &#147;Where You Can Find More Information.&#148; All section references are to the 2007 Voting Trust Agreement.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">General</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.&nbsp; The Voting Trust Agreement provides for the deposit into the Voting Trust of Common Stock or, if applicable, any voting stock of the Company or a successor corporation issued in respect of the Common Stock in connection with a recapitalization or reclassification of the Common Stock or the merger or consolidation of the Company into another corporation. Common Stock deposited in the Voting Trust will be registered in the name of the Voting Trustees in their capacities as voting trustees. Voting Trust Interests issued by the Voting Trustees will be uncertificated and evidenced by the book-entry system maintained by the Voting Trustees, unless written notice is sent to the Voting Trustees requesting that the Voting Trustees issue one or more voting trust certificates representing the Voting Trust Interests registered in the name of such Participating Shareholder. You may elect to deposit shares of Common Stock into the Voting Trust at any time prior to its expiration or termination. Common Stock deposited in the Voting Trust may not be withdrawn by the beneficial owner before the expiration or earlier termination of the Voting Trust Agreement. The Voting Trustees do not have any power to sell, transfer or dispose of shares deposited with them other than to return them to Participating Shareholders in accordance with the Voting Trust Agreement.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">A voting trust was originally established in 1928 as a security device in connection with the purchase of the wholesale supply business of Western Electric Company, Incorporated. The voting trust arrangement has been continued since its inception by the adoption every ten years, as permitted by applicable law, of successive voting trust agreements by substantially all of the Company&#146;s shareholders. In connection with the adoption of each new voting trust agreement, management has recommended to shareholders that the voting trust arrangement be continued because it believed that the operation of the business had been successfully conducted under this arrangement and that it was in the best interests of the Company and its shareholders.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 20 -</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Voting Trust Agreement will expire March 15, 2017 unless extended or sooner terminated. The Voting Trust Agreement may be terminated at any time by a majority of the Voting Trustees or by the holders of Voting Trust Interests representing at least 75% of the Common Stock deposited. At any time within six months before the expiration of the Voting Trust Agreement, holders of Voting Trust Interests may, by agreement in writing with the Voting Trustees and the Company, extend the duration of the Voting Trust Agreement for an additional period not exceeding ten years. Any extension will be binding only upon holders of Voting Trust Interests who give their consent. (Section 6.03)</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Voting Trust Agreement may be amended or modified at any time by a majority of the Voting Trustees, the Company and the holders of Voting Trust Interests representing at least 75% of the number of shares of Common Stock deposited under the Voting Trust Agreement. Any amendment or modification could affect the rights of the then existing holders of Voting Trust Interests. (Section 6.02)</FONT></P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Voting Trust Agreement is governed by the laws of New York. New York law requires that the Voting Trustees keep available for inspection by the holders of Voting Trust Interests correct and complete books and records of account relating to the 2007 Voting Trust and a record of the names and addresses of the holders of Voting Trust Interests and the number of shares of Graybar Common Stock represented thereby and the dates that they acquired such shares. These books and records and a copy of the 2007 Voting Trust Agreement are available for inspection by any holder of Voting Trust Interests or shares of Graybar Common Stock at the principal executive offices of the Company located at 34 North Meramec Avenue, St. Louis, Missouri 63105. Holders of Voting Trust Interests have the same rights to inspect Graybar&#146;s books and records under New York law </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">as </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">holders of Common Stock . (Section 6.07)</FONT>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Voting Trustees</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.&nbsp;&nbsp;Voting Trustees must be active, full-time employees of the Company. Any Voting Trustee who for any cause, including retirement on a pension, ceases to be an active, full-time employee of the Company automatically ceases to be a Voting Trustee. Voting Trustees may at any time resign and may be removed by holders of Voting Trust Interests representing at least 66 2/3% of the number of shares of Common Stock deposited under the Voting Trust Agreement. (Section 5.01)</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Vacancies in the office of Voting Trustee will be filled by a majority of the remaining Voting Trustees, unless there shall be less than three Voting Trustees in office, in which event the vacancies shall be filled by the Company&#146;s directors. No Voting Trustee who has been previously removed from office may be redesignated or elected a Voting Trustee without the approval of holders of Voting Trust Interests representing at least 66 2/3% of the Common Stock deposited under the Voting Trust Agreement. (Section 5.01)</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Voting Trust Agreement provides that the Voting Trustees shall exercise their best judgment in securing the election of suitable directors and in voting on or consenting to other matters. Voting Trustees may be, and may vote for themselves as, Company directors. No person is disqualified from acting as a Voting Trustee by reason of any personal interest in the Company and a Voting Trustee may deal with the Company as fully as if he were not a Voting Trustee. The Voting Trustees may execute any of the trusts or powers or perform any of the duties under the Voting Trust Agreement either directly or by or through agents or attorneys</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 21 -</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">appointed by them. Any action required or permitted to be taken by the Voting Trustees may be taken by vote or written consent of a majority of the Voting Trustees. (Sections 5.02 and 5.03)</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Voting Trustees and their agents and attorneys are not liable to holders of Voting Trust Interests or the Company except for their individual willful misconduct. The Company has agreed to indemnify the Voting Trustees and their agents or attorneys for, and to hold them harmless against, any tax, loss, liability or expense incurred for any reason, except their own individual willful misconduct, arising out of or in connection with the acceptance or administration of the Voting Trust and the performance of their duties and obligations and the exercise of their rights and powers under the Voting Trust. The Voting Trustees have been informed that, in the opinion of the Securities and Exchange Commission, indemnification for liabilities arising under the Securities Act is against public policy and is unenforceable. Graybar has also agreed to pay reasonable expenses incurred by the Voting Trustees in connection with the performance of their duties and obligations under the Voting Trust Agreement.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">In consideration of the agreement of the Voting Trustees to serve in that capacity for the benefit of the holders of Voting Trust Interests, the Voting Trust Agreement provides that, in the event the Company fails or is unable to provide indemnification or pay expenses, the holders of Voting Trust Interests will do so. In that event, the responsibility for indemnification will be allocated among them ratably in proportion to the Common Stock represented by their Voting Trust Interests. The obligations of the Company and the holders of Voting Trust Interests are payable from any funds or other assets held by the Voting Trustees for their respective accounts. (Sections 5.03 and 5.04)</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">No bond is required to be posted by the Voting Trustees with respect to their performance under the Voting Trust Agreement.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Voting</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.&nbsp; The Voting Trustees are entitled in their discretion and using their best judgment to vote on or consent to the election of directors and, except as described below, the ratification, approval or disapproval of any other action or proposed action requiring a shareholder vote. The Voting Trustees, each of whom is currently a Company director, are specifically authorized to vote for themselves as directors under the terms of the Voting Trust Agreement. The Voting Trustees may not, without the consent of the holders of Voting Trust Interests representing at least 75% of the Common Stock then deposited under the Voting Trust Agreement, vote on or consent to the merger or consolidation of the Company into another corporation, the sale of all or substantially all of the Company&#146;s assets or the Company&#146;s liquidation and dissolution. (Sections 4.02 and 5.02)</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Dividends</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.&nbsp;&nbsp;All dividends payable with respect to Common Stock deposited under the Voting Trust Agreement are payable to the Voting Trustees as the owners of record of these shares. The Voting Trustees will retain, under the terms of the Voting Trust Agreement, all shares of Common Stock received as a stock dividend. The Voting Trustees will make the appropriate book-entry in the case of uncertificated Voting Trust Interests and, upon request, deliver voting trust certificates representing Voting Trust Interests in the shares received as a dividend in a Participating Shareholder&#146;s account. The Voting Trustees will pay or cause to be paid to the holders of Voting Trust Interests an amount equal to any cash dividends received and any distribution made to holders of Common Stock other than in cash or Common Stock or as a</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 22 -</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">result of recapitalization or reclassification of the Common Stock or a reorganization of the Company. (Section 4.03)</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Subscription Offers and Employee Plans</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.&nbsp;&nbsp;Common Stock subscribed for on behalf of, or acquired by, a holder of a Voting Trust Interest pursuant to a subscription offer or employee plan or otherwise must be deposited with the Voting Trustees and will be held by them under the terms of the Voting Trust Agreement. The Voting Trustees will make the appropriate book-entry in the case of uncertificated Voting Trust Interests and, upon request, deliver additional voting trust certificates representing Voting Trust Interests to the holders of Voting Trust Interests on whose behalf Common Stock was so deposited. (Sections 4.04 and 4.05)</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Recapitalization or Reclassification of Common Stock</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.&nbsp;&nbsp;In the event of a recapitalization or reclassification of the Common Stock, the Voting Trustees will hold, under the terms of the Voting Trust Agreement, shares of voting stock issued in respect of Common Stock deposited under the Voting Trust Agreement. In this case, the appropriate book entries will be made in the case of uncertificated Voting Trust Interests and the existing voting trust certificates may remain outstanding and continue to represent the Voting Trust Interests or the Voting Trustees may substitute new voting trust certificates in appropriate form. (Section 4.06)</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Reorganization of the Company</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.&nbsp;&nbsp;Depending on the terms of any agreement under which the Company may be merged or consolidated into another corporation, the Voting Trustees either will hold, under the terms of the Voting Trust Agreement, any shares of voting stock of the successor corporation issued in respect of the Common Stock deposited under the Voting Trust Agreement (in which case the appropriate book entries will be made in the case of uncertificated Voting Trust Interests and the existing voting trust certificates may remain outstanding and continue to represent the Voting Trust Interests or the Voting Trustees may substitute new voting trust certificates in appropriate form), or will distribute those shares to the holders of Voting Trust Interests based on the Common Stock represented by their Voting Trust Interests. In any event, any other consideration received as a result of a reorganization will be distributed ratably to the holders of Voting Trust Interests. (Section 4.08)</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Dissolution of the Company</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.&nbsp;&nbsp;In the event of the dissolution and liquidation of the Company, the Voting Trustees will distribute any money, securities, rights or property received by them as the record owners of Common Stock ratably to the holders of Voting Trust Interests. (Section 4.07)</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Restrictions on Transfer, and Right of the Company to Repurchase Voting Trust Interests Under Certain Circumstances</FONT></I><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">.&nbsp; The Voting Trust Agreement provides that Voting Trust Interests issued under the Voting Trust Agreement are held by each holder under the same terms and conditions upon which Common Stock is held under the provisions of the Company&#146;s </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Restated </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Certificate of Incorporation. It further provides that the Voting Trustees do not need to recognize any claim of a holder of a Voting Trust Interest who has obtained such interest in contravention of any of the provisions of the Company&#146;s </FONT><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">Restated </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Certificate of Incorporation in effect at the time. See &#147;Description of Common Stock -- Repurchase Option.&#148; (Sections 3.01 and 4.09)</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 23 -</FONT></P>
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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">LEGAL MATTERS</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Matters of New York law relating to the validity of the Common Stock and the Voting Trust Interests have been passed upon by Bryan Cave LLP, counsel for the Company and the Voting Trustees.</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">EXPERTS</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The consolidated financial statements of Graybar Electric Company, Inc. included in Graybar Electric Company, Inc.&#146;s Annual Report on Form 10-K for the year ended December 31, 2007, have been audited by Ernst &amp; Young LLP, independent registered public accounting firm, as set forth in their report thereon, included therein, and incorporated herein by reference. Such consolidated financial statements are incorporated herein by reference in reliance upon such report given on the authority of such firm as experts in accounting and auditing.</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">WHERE YOU CAN FIND MORE INFORMATION</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Graybar and the Voting Trustees file reports, information statements and other information with the SEC. You may read and copy this information at the SEC&#146;s Public Reference Room, 100 F Street, N.E., Washington, D.C. 20549-0213. Please call the SEC at 1-800-SEC-0330 for further information regarding the Public Reference Room. The SEC also maintains a website that contains reports, information statements and other information about issuers, including Graybar and the Voting Trust, who file electronically with the SEC. The address of that site is </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">www.sec.gov</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">. Reports and other information filed by Graybar and the Voting Trustees may also be accessed at our website, </FONT><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">www.graybar.com</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">, under the SEC Filings section of the &#147;About Us&#148; page. Except as expressly provided herein, information on our website is not part of this Prospectus. Requests for hard copies of the reports and other information filed by Graybar and the Voting Trustees should be directed to Matthew W. Geekie, Esq., Senior Vice President, Secretary and General Counsel, Graybar Electric Company, Inc., P.O. Box 7231, St. Louis, Missouri 63177, telephone number (314) 573-9200 and e-mail address </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">matthew.geekie@graybar.com</FONT><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">. Graybar intends to furnish copies of its Annual Report to Shareholders to holders of Voting Trust Interests as well as to shareholders of record.</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">INCORPORATION BY REFERENCE</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The SEC allows us to &#147;incorporate by reference&#148; information into this Prospectus. This means that we can disclose important information to you by referring you to another document that we previously filed with the SEC. The information incorporated by reference is considered to be a part of this Prospectus, except for any information that is superseded or updated by information that is included directly in this Prospectus.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">This Prospectus incorporates by reference the documents listed below that the Company has previously filed with the SEC. They contain important information about the Company and its financial condition.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 24 -</FONT></P>
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     <TD align=left><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SEC Filing</FONT></U></B> </TD>
     <TD align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" color=#000000>Filing Date</FONT></B> </TD>
     <TD align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Period</FONT></U></B> </TD></TR>
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     <TD align=left>&nbsp;</TD>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Annual Report on Form 10-K</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Filed March 12, 2008</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Year Ended December 31, 2007</FONT> </TD></TR>
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     <TD align=left>&nbsp;</TD>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Amendment to Annual Report on</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Filed August 7, 2008</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 10-K/A</FONT> </TD>
     <TD align=left>&nbsp; </TD>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Quarterly Report on Form 10-Q</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Filed May 9, 2008</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Quarter Ended March 31, 2008</FONT> </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Amendment to Quarterly Report on</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Filed August 7, 2008</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 10-Q/A</FONT> </TD>
     <TD align=left>&nbsp; </TD>
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     <TD align=left>&nbsp;</TD>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Quarterly Report on Form 10-Q</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Filed August 7, 2008</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Quarter Ended June 30, 2008</FONT> </TD></TR>
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     <TD align=left>&nbsp;</TD>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Current Report on Form 8-K</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Filed March 14, 2008</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Current Report on Form 8-K</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Filed August 1, 2008</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
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     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Information Statement</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Filed April 29, 2008</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Annual Report on Form 10-K </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">for the year ended December 31, 2007 </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">filed with the SEC by the Voting Trustees on March 12, 2008 is also incorporated by reference.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">You may obtain any of the documents incorporated by reference in this Prospectus through the Company or from the SEC through the SEC&#146;s website at the address provided above. Documents incorporated by reference are available on Graybar&#146;s website at </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">http://www.graybar.com/ </FONT><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">or in hard copy, upon written or oral request, from the Company, without charge, excluding any exhibits to those documents unless the exhibit is specifically incorporated by reference into those documents. Certain states require that the offering be made through a dealer registered in that state. The offering will be made to residents of those states through Huntleigh Securities Corporation. Huntleigh Securities Corporation provides financial advice to Graybar on a retainer basis. If you were directed to this Prospectus, or if this Prospectus was provided to you by, Huntleigh Securities Corporation, you should contact the designated representative of Huntleigh Securities Corporation named in the cover letter that accompanied this Prospectus if you have questions. Requests for hard copies should be directed to Matthew W. Geekie, Esq., Senior Vice President, Secretary and General Counsel, Graybar Electric Company, Inc., P.O. Box 7231, St. Louis, Missouri 63177, telephone number (314) 573-9200 and e-mail address matthew.geekie@graybar.com.</FONT></P>
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<P align=right><B><FONT face=Arial-BoldMT,Arial,Helvetica,sans-serif size=2>EXHIBIT A</FONT></B></P>
<P align=center><B><FONT face=Arial-BoldMT,Arial,Helvetica,sans-serif>THREE-YEAR COMMON STOCK PURCHASE PLAN</FONT></B><BR>
<B><FONT face=Arial-BoldMT,Arial,Helvetica,sans-serif>DATED AS OF JUNE 14, 2007</FONT></B><BR>
<B><FONT face=Arial-BoldMT,Arial,Helvetica,sans-serif>RELATING TO UP TO 2,000,000 SHARES OF COMMON STOCK OF</FONT></B><BR>
<B><FONT face=Arial-BoldMT,Arial,Helvetica,sans-serif>GRAYBAR ELECTRIC COMPANY, INC.</FONT></B></P>
<P align=center><FONT face=ArialMT,Arial,Helvetica,sans-serif>~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~</FONT></P>
<P align=left><B><FONT face=Arial-BoldMT,Arial,Helvetica,sans-serif>1.&nbsp;&nbsp;&nbsp;&nbsp; General; Employees entitled to subscribe.</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Plan provides for offerings in each of the years 2007, 2008 and 2009 (each, an &#147;Applicable Year&#148;) to eligible employees, including officers, of Graybar Electric Company, Inc. (the &#147;Company&#148;), and its wholly owned subsidiary, Commonwealth Controls Corporation, and retirees who were active, full-time employees of the Company or Commonwealth Controls Corporation on March 31 of the Applicable Year, of the right to subscribe for shares of the Company&#146;s common stock, par value $1.00 per share with a stated value of $20.00 per share (the &#147;Common Stock&#148;), at a price of $20.00 per share. The aggregate number of shares of Common Stock to be offered in each year and the terms of such offering shall be determined by the Board of Directors. The maximum number of shares of Common Stock that may be issued pursuant to this Plan is 2,000,000. This Plan shall remain in effect until January 31, 2010 unless terminated prior thereto by the Board of Directors of the Company, and thereafter insofar as the provisions relate to shares of Common Stock subscribed for under the Payroll Deduction Method as described in Section 4.2.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each person who on September 30 of the year in which an offering is conducted (the &#147;Applicable Year&#148;) is (a) an active, full-time employee of the Company or Commonwealth Controls Corporation continuously employed by the Company or Commonwealth Controls Corporation since March 31 of the Applicable Year or (b) a person who on March 31 of the Applicable Year is an active, full-time employee of the Company or Commonwealth Controls Corporation and who retires on a pension (except a deferred pension) after March 31 and prior to October 1 of the Applicable Year (a &#147;Qualified Retiree&#148;) will be entitled to subscribe at the price of $20.00 per share for the number of shares of the Company&#146;s Common Stock determined pursuant to Section 3. Such persons are sometimes referred to as &#147;eligible participants&#148; or &#147;Qualified Retirees&#148; and after executing a Subscription Agreement are referred to as &#147;subscribers&#148;; provided, however, that the term &#147;eligible participants&#148; shall not be deemed to include in any Applicable Year: any person (a) who receives a pension (unless he or she is an active, full-time employee on March 31 of an Applicable Year and retired on a pension (except a deferred pension) after said March 31 and prior to October 1 of the Applicable Year), (b) who is employed solely on a contract basis or who by written agreement has released all stock subscription rights, or (c) who is included in a collective bargaining unit represented by a labor organization where the agreement between the Company and the labor organization excludes such person from subscribing for Common Stock of the Company.</FONT></P>
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<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">2.&nbsp;&nbsp;&nbsp;&nbsp; Period for and method of making subscription.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Any eligible participant desiring to subscribe for shares of Common Stock offered for sale under this Plan shall either sign a Subscription Agreement substantially in the form set forth herein, or otherwise approved by the Board of Directors for such purpose for an offering to be made in an Applicable Year, and file it, on or before the date specified for each Applicable Year, with the Secretary at the executive offices of the Company, 34 North Meramec Avenue, Clayton, Missouri 63105 or complete and submit an on-line subscription in the manner set forth at </FONT><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">http://www.planenrollments.com/gbe</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">. No subscription shall be effective and binding unless and until accepted by the Company at its executive offices. No subscription will be accepted after the close of business on the date specified in the applicable Subscription Agreement.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Determination of number of shares for which an eligible participant is entitled to subscribe.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The maximum number of shares for which an eligible participant may subscribe shall be determined as hereinafter provided:</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3.1.&nbsp;&nbsp;&nbsp;&nbsp; The Subscription Right of each eligible participant, subject to increase as provided in Section 3.2 and reduction as provided in Section 3.3, shall be determined by dividing the annual salary rate of each eligible participant in effect on March 31 of the Applicable Year by a dollar amount determined by the Board of Directors for each Applicable Year (or such other dollar amount or other ratio as may hereafter be established with respect to an offering of shares for an Applicable Year by the Board of Directors). Fractional shares resulting from this computation shall be disregarded.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of shares determined in accordance with Section 3.1 shall, in the case of eligible participants who on March 31 of the Applicable Year were in the salary classifications listed below, be multiplied as follows (or using such other multiple as hereafter may be established with respect to an offering of shares for an Applicable Year by the Board of Directors):</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eligible Company participants in Executive classifications EX 1 through EX 5 -- 3.00 times;</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.2.&nbsp;&nbsp;&nbsp;&nbsp; Eligible Company participants in Grades 17 through 20 and Band M1 --2.50 times;</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eligible Company participants in Grades 15 and 16 and Band M2 -- 2.25 times;</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eligible Company participants in Grades P and Q -- 1.90 times;</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.5.&nbsp;&nbsp;&nbsp;&nbsp; Eligible Company participants in Grades N and O -- 1.85 times;</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eligible Company participants in Grade 14 or below who are covered either by the Management Incentive Plan or the&nbsp;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Sales Incentive Plan and Band M3 -- 1.75 times;</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eligible Company participants in Grades J, K, L and M -- 1.50 times;</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other eligible Company participants -- 1.25 times; and</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eligible participants who are employees of Commonwealth Controls Corporation -- As determined by the Board of Directors<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for each participant using the closest comparable salary classification then in effect at Commonwealth Controls Corporation.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fractional shares resulting from the above computations shall be disregarded.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the unlikely event the aggregate number of shares subscribed for by all eligible participants in an offering for an Applicable Year were to exceed the number of shares that the Board of Directors determines shall be offered in such Applicable Year, the number of shares that each eligible participant would be entitled to purchase shall be reduced to a number determined by multiplying the number of shares for which such eligible participant has subscribed (but in no event more than the number to which such employee is entitled to subscribe under this Section) by a fraction, the numerator of which is the number of shares being offered and the denominator of which is the aggregate number of shares subscribed for by all eligible participants. Fractional shares resulting from such computation shall be disregarded.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments for issuance of stock.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Payments for shares subscribed for may be made pursuant to either of the following methods (or such other method as hereafter may be established by the Board of Directors with respect to any offering):</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">4.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Full Payment: Payment in full for the shares subscribed for on or before the date in January of the year following the Applicable Year set by the Board of Directors, in which case the shares paid for will be issued as of that date.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">4.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payroll Deduction: Payments in equal installments made at each of the regular pay periods commencing with the second pay period in January of the year following the Applicable Year and ending with the last pay period in November of that year. The Company shall issue shares no later than the tenth day of March, June, September and December of the year following the Applicable Year to the Voting Trustees or Non-Participating Shareholders (as such terms are defined in Section 5.2), whichever is appropriate, for such number of full shares of Common Stock as have been fully paid for prior to such issue date.</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">4.2.1.&nbsp;&nbsp;&nbsp;&nbsp; Payments shall be made, in the case of a subscriber on the Company&#146;s or Commonwealth Controls Corporation&#146;s payroll, through payroll<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;deductions authorized by the subscriber and, in the case of a subscriber who is no longer on the Company&#146;s or Commonwealth Controls Corporation&#146;s&nbsp;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;payroll but whose subscription has not been cancelled in accordance with Section 5.4, through monthly payments made directly by such person to the&nbsp;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasurer of the Company on or before the last day of each month. Except as provided in Section 5.4, subscriptions made under the Payroll Deduction&nbsp;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Method and the obligations of subscribers to make full payment for all shares subscribed for (including any authorization to the Company or Commonwealth&nbsp;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Controls Corporation to make payroll deductions) shall be irrevocable.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">4.2.2. No interest shall be paid on amounts deducted from a participant&#146;s salary or paid directly to the Treasurer.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">4.2.3. A subscriber, at his or her option exercised at any time, may pay the balance due on all or any portion of the number of shares subscribed for,<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and upon such payment, shares will be issued for which payment is so made.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conditions of subscription.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Each subscription for shares of Common Stock hereunder is expressly subject to, among other things, the following terms, and every subscriber shall agree to all of them by executing a Subscription Agreement:</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Right to receive stock not transferable.</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">No subscriber may sell, pledge or in any manner alienate or suffer to be alienated his or her right to purchase Common Stock under the Plan, including the right to receive Voting Trust Interests or shares of Common Stock. A violation of this provision shall constitute a withdrawal by the subscriber from his or her Subscription Agreement, in which event the only right of the subscriber or his or her assignee shall be to have the Company return to the person entitled thereto the total amount paid under said Subscription Agreement. Such return shall operate as a cancellation and satisfaction of all rights under the Subscription Agreement.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Issuance of stock certificates and Voting Trust Interests.</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Shares or Voting Trust Interests representing the shares subscribed for and purchased pursuant to this Plan by subscribers who are or who, upon executing a Subscription Agreement, become parties to the Voting Trust Agreement (the &#147;Voting Trust Agreement&#148;) dated as of March 16, 2007, relating to shares of Common Stock of the Company, shall be issued to, and deposited by the Company with, the Voting Trustees thereunder (the &#147;Voting Trustees&#148;) in accordance with the provisions of Section 4.05 of the Voting Trust Agreement. The Voting Trustees will record ownership of Voting Trust Interests for such subscribers representing the number of shares subscribed for and purchased by them and deposited in the Voting Trust. Shares subscribed for and purchased pursuant to this Plan by subscribers who are shareholders prior to such subscription and who are not parties to the Voting Trust Agreement (&#147;Non-</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Participating Shareholders&#148;) shall be recorded in a book-entry system maintained by the corporation and shall be uncertificated unless written request is made to the Secretary of the corporation, in which case, certificates shall be issued and delivered directly to such subscribers.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">5.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Subscribers bound by provisions in Restated Certificate of Incorporation, as amended.</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">All shares of Common Stock subscribed for shall be issued and held subject to all the terms, provisions, restrictions and qualifications set forth in the Restated Certificate of Incorporation, as amended, of the Company, which provides, among other things, that the Company has the option to repurchase outstanding shares of Common Stock at the price at which such shares were issued, with appropriate adjustment for current dividends, in the event any shareholder shall desire to sell, transfer or otherwise dispose of any of his or her shares, or in the event of his or her death (in which case the option is exercisable beginning one year after the date of death) or in the event of termination of his or her employment other than by retirement on a pension. Eligibility for or entitlement to a deferred pension under the Graybar Electric Company, Inc. Pension Plan does not constitute a retirement on a pension for purposes of this Section 5.3 or for purposes of the Restated Certificate of Incorporation. The Voting Trust Interests issued and to be issued under the Voting Trust Agreement provide, in substance, that every Voting Trust Interest is issued and held upon and subject to the same terms and conditions upon which shares of Common Stock are issued and held. Each subscriber, by executing a Subscription Agreement, specifically agrees to be bound by all provisions of this Section 5.3 and agrees that all Common Stock or Voting Trust Interests owned by such subscriber shall be subject to such provisions.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Cancellation of subscription on termination of employment.</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">In the event of the death of a subscriber or the termination of his or her employment other than by retirement on a pension (except a deferred pension) or the subscriber receives a &#147;hardship&#148; withdrawal from Account K under the Company&#146;s Profit Sharing and Savings Plan before any or all of the shares of Common Stock subscribed for are issued, his or her subscription shall be cancelled as to shares not then issued, and the subscriber or the subscriber&#146;s estate shall be entitled to receive the total amount of the purchase price, if any, then held by the Company for unissued shares under this Plan, without interest. Payment of such amount by the Company shall operate as a cancellation and satisfaction of all rights under his or her Subscription Agreement. Refund of any balance due employees who terminate service or make a hardship withdrawal shall be made in the quarter following termination. Eligibility for or entitlement to a deferred pension under the Graybar Electric Company, Inc. Pension Plan does not constitute a retirement on a pension for purposes of this Section 5.4.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5.&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Interpretation and implementation; amendment.</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The determination of the Board of Directors of the Company upon any question concerning the application or interpretation of any of the provisions of this Plan or, of the Subscription Agreement or any offering conducted under this Plan shall be final, and no director shall incur any liability or obligation by reason of any error of fact or of law or of any matter or</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">A- 5</FONT></P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">thing done or suffered or omitted to be done in connection with any such determination or interpretation or otherwise, except any attributable to that director&#146;s own willful misconduct. This Plan may be amended, in whole or in part, by the Board of Directors, provided, however that, any amendment to Section 1 or Section 6 shall require the consent of the Shareholders of the Company. The Executive Committee of the Board of Directors shall have the power to exercise all authority granted to the Board of Directors by the Plan and to take any action the Board of Directors may take under or with respect to the Plan.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">6.&nbsp;&nbsp;&nbsp;&nbsp; Certain corporate action not to be taken without notice.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Company will not take any action that would result in a distribution to its shareholders of shares of Common Stock or other assets (except the payment of cash dividends on shares of Common Stock or the issuance of shares of Common Stock pursuant to installment payments made under Section 4.2) without first giving notice of such proposed action to all subscribers who elected the Payroll Deduction Method and have not then paid their subscriptions in full and granting such subscribers an opportunity within such time (not to be less than 20 days) and in such manner as the Board of Directors may determine to be reasonable, to complete their payments on all shares subscribed for by them and thereby to become shareholders entitled to the benefit of and subject to such action.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right of the Company to issue and sell additional shares of Common Stock.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Nothing in this Plan shall be construed to limit or restrict in any way the right of the Company from time to time hereafter to sell any of the shares offered pursuant to this Plan and not issued pursuant to subscriptions made hereunder or any shares that may now or hereafter be authorized or may now or hereafter be reacquired by the Company upon exercise of the repurchase option described in Section 5.3 or otherwise.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">A- 6</FONT></P>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">A- 9</FONT></P>

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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">PART II</FONT></B></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">INFORMATION NOT REQUIRED IN PROSPECTUS</FONT></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Item 13.&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Other Expenses of Issuance and Distribution</FONT></U><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>
<TR>
     <TD width="66%"></TD>
     <TD width="3%"></TD>
     <TD width="15%"></TD>
     <TD width="2%"></TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Securities and Exchange Commission registration fee</FONT></TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">786</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Printing fees and communication expenses</FONT></TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">16,000</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">*</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Legal fees and expenses</FONT></TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">20,000</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">*</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Blue Sky fees and expenses</FONT></TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">25,000</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">*</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Accounting fees and expenses</FONT></TD>
     <TD align=right>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">25,000</FONT> </TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">*</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Miscellaneous</FONT></TD>
     <TD align=right>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">13,214</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">*</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">$</FONT> </TD>
     <TD align=right><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">100,000</FONT> </TD>
     <TD align=left>&nbsp; </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="20%" border=0>
<TR>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" width="20%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">* Estimated.</FONT> </TD></TR></TABLE><BR>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Item 14.&nbsp;&nbsp;&nbsp;&nbsp; Indemnification of Directors and Officers.</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Sections 721 through 726 of the New York Business Corporation Law provide as follows:</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#167; 721.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NONEXCLUSIVITY OF STATUTORY PROVISIONS FOR INDEMNIFICATION OF DIRECTORS AND OFFICERS.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The indemnification and advancement of expenses granted pursuant to, or provided by, this article shall not be deemed exclusive of any other rights to which a director or officer seeking indemnification or advancement of expenses may be entitled, whether contained in the certificate of incorporation or the by-laws or, when authorized by such certificate of incorporation or by-laws, (i) a resolution of shareholders, (ii) a resolution of directors, or (iii) an agreement providing for such indemnification, provided that no indemnification may be made to or on behalf of any director or officer if a judgment or other final adjudication adverse to the director or officer establishes that his acts were committed in bad faith or were the result of active and deliberate dishonesty and were material to the cause of action so adjudicated, or that he personally gained in fact a financial profit or other advantage to which he was not legally entitled. Nothing contained in this article shall affect any rights to indemnification to which corporate personnel other than directors and officers may be entitled by contract or otherwise under law.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#167; 722.&nbsp;&nbsp;&nbsp;&nbsp; AUTHORIZATION FOR INDEMNIFICATION OF DIRECTORS AND OFFICERS.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)&nbsp;&nbsp;&nbsp;&nbsp; A corporation may indemnify any person made, or threatened to be made, a party to an action or proceeding (other than one by or in the right of the corporation to procure a judgment in its favor), whether civil or criminal, including an action by or in the right of any other corporation of any type or kind, domestic or foreign, or any partnership, joint venture, trust, employee benefit plan or other enterprise, which any director or officer of the corporation served in any capacity at the request of the corporation, by reason of the fact that he, his testator or intestate, was a director or officer of the corporation or served such other corporation,</FONT></P>
<P align=center>II-1</P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">partnership, joint venture, trust, employee benefit plan or other enterprise in any capacity, against judgments, fines, amounts paid in settlement and reasonable expenses, including attorneys&#146; fees actually and necessarily incurred as a result of such action or proceeding, or any appeal therein, if such director or officer acted, in good faith, for a purpose which he reasonably believed to be in, or, in the case of service for any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise, not opposed to, the best interests of the corporation and, in criminal actions or proceedings, in addition, had no reasonable cause to believe that his conduct was unlawful.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The termination of any such civil or criminal action or proceeding by judgment, settlement, conviction or upon a plea of nolo contendere, or its equivalent, shall not in itself create a presumption that any such director or officer did not act, in good faith, for a purpose which he reasonably believed to be in, or, in the case of service for any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise, not opposed to, the best interests of the corporation or that he had reasonable cause to believe that his conduct was unlawful.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A corporation may indemnify any person made, or threatened to be made, a party to an action by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he, his testator or intestate, is or was a director or officer of the corporation, or is or was serving at the request of the corporation as a director or officer of any other corporation of any type or kind, domestic or foreign, of any partnership, joint venture, trust, employee benefit plan or other enterprise, against amounts paid in settlement and reasonable expenses, including attorneys&#146; fees, actually and necessarily incurred by him in connection with the defense or settlement of such action, or in connection with an appeal therein, if such director or officer acted, in good faith, for a purpose which he reasonably believed to be in, or, in the case of service for any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise, not opposed to the best interests of the corporation, except that no indemnification under this paragraph shall be made in respect of (1) a threatened action, or a pending action which is settled or otherwise disposed of, or (2) any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation, unless and only to the extent that the court in which the action was brought, or, if no action was brought, any court of competent jurisdiction, determines upon application that, in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such portion of the settlement amount and expenses as the court deems proper.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purpose of this section, a corporation shall be deemed to have requested a person to serve an employee benefit plan where the performance by such person of his duties to the corporation also imposes duties on, or otherwise involves services by, such person to the plan or participants or beneficiaries of the plan; excise taxes assessed on a person with respect to an employee benefit plan pursuant to applicable law shall be considered fines; and action taken or omitted by a person with respect to an employee benefit plan in the performance of such person&#146;s duties for a purpose reasonably believed by such person to be in the interest of the participants and beneficiaries of the plan shall be deemed to be for a purpose which is not opposed to the best interests of the corporation.</FONT></P>
<P align=center>II-2</P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#167; 723.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PAYMENT OF INDEMNIFICATION OTHER THAN BY COURT AWARD.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A person who has been successful, on the merits or otherwise, in the defense of a civil or criminal action or proceeding of the character described in section 722 shall be entitled to indemnification as authorized in such section.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as provided in paragraph (a), any indemnification under section 722 or otherwise permitted by section 721, unless ordered by a court under section 724 (Indemnification of directors and officers by a court), shall be made by the corporation, only if authorized in the specific case:</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(1)&nbsp;&nbsp;&nbsp;&nbsp; By the board acting by a quorum consisting of directors who are not parties to such action or proceeding upon a finding that the director or<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;officer has met the standard of conduct set forth in section 722 or established pursuant to section 721, as the case may be, or,</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(2)&nbsp;&nbsp;&nbsp;&nbsp; If a quorum under subparagraph (1) is not obtainable or, even if obtainable, a quorum of disinterested directors so directs;</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By the board upon the opinion in writing of independent legal counsel that indemnification is proper in the circumstances because the&nbsp;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;applicable standard of conduct set forth in such sections has been met by such director or officer, or</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(B)&nbsp;&nbsp;&nbsp;&nbsp; By the shareholders upon a finding that the director or officer has met the applicable standard of conduct set forth in such sections.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses incurred in defending a civil or criminal action or proceeding may be paid by the corporation in advance of the final disposition of such action or proceeding upon receipt of an undertaking by or on behalf of such director or officer to repay such amount as, and to the extent, required by paragraph (a) of section 725.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#167; 724.&nbsp;&nbsp;&nbsp;&nbsp; INDEMNIFICATION OF DIRECTORS AND OFFICERS BY A COURT.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the failure of a corporation to provide indemnification, and despite any contrary resolution of the board or of the shareholders in the specific case under section 723 (Payment of indemnification other than by court award), indemnification shall be awarded by a court to the extent authorized under section 722 (Authorization for indemnification of directors and officers), and paragraph (a) of section 723. Application therefor may be made, in every case, either:</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the civil action or proceeding in which the expenses were incurred or other amounts were paid, or</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the supreme court in a separate proceeding, in which case the application shall set forth the disposition of any previous application&nbsp;made<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to&nbsp;any&nbsp;court for the same or similar relief and also reasonable cause for the failure to make application</FONT></P>
<P align=center>II-3</P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for such relief in the action or proceeding in which the expenses were incurred or other amounts were paid.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The application shall be made in such manner and form as may be required by the applicable rules of court or, in the absence thereof, by direction of a court to which it is made. Such application shall be upon notice to the corporation. The court may also direct that notice be given at the expense of the corporation to the shareholders and such other persons as it may designate in such manner as it may require.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where indemnification is sought by judicial action, the court may allow a person such reasonable expenses, including attorneys&#146; fees, during the pendency of the litigation as are necessary in connection with his defense therein, if the court shall find that the defendant has by his pleadings or during the course of the litigation raised genuine issues of fact or law.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#167; 725.&nbsp;&nbsp;&nbsp;&nbsp; OTHER PROVISIONS AFFECTING INDEMNIFICATION OF DIRECTORS AND OFFICERS.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All expenses incurred in defending a civil or criminal action or proceeding which are advanced by the corporation under paragraph (c) of section 723 (Payment of indemnification other than by court award) or allowed by a court under paragraph (c) of section 724 (Indemnification of directors and officers by a court) shall be repaid in case the person receiving such advancement or allowance is ultimately found, under the procedure set forth in this article, not to be entitled to indemnification or, where indemnification is granted, to the extent the expenses so advanced by the corporation or allowed by the court exceed the indemnification to which he is entitled.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No indemnification, advancement or allowance shall be made under this article in any circumstance where it appears:</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That the indemnification would be inconsistent with the law of the jurisdiction of incorporation of a foreign corporation which prohibits or<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;otherwise limits such indemnification;</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(2)&nbsp;&nbsp;&nbsp;&nbsp; That the indemnification would be inconsistent with a provision of the certificate of incorporation, a by-law, a resolution of the board or of the<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shareholders, an agreement or other proper corporate action, in effect at the time of the accrual of the alleged cause of action asserted in the threatened or&nbsp;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;pending action or proceeding in which the expenses were incurred or other amounts were paid, which prohibits or otherwise limits indemnification; or</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(3)&nbsp;&nbsp;&nbsp;&nbsp; If there has been a settlement approved by the court, that the indemnification would be inconsistent with any condition with respect to&nbsp;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;indemnification expressly imposed by the court in approving the settlement.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(c)&nbsp;&nbsp;&nbsp;&nbsp; If any expenses or other amounts are paid by way of indemnification, otherwise than by court order or action by the shareholders, the corporation shall, not later than the next annual meeting of shareholders unless such meeting is held within three months from the date of such payment, and, in any event, within fifteen months from the date of such payment, mail to its</FONT></P>
<P align=center>II-4</P>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">shareholders of record at the time entitled to vote for the election of directors a statement specifying the persons paid, the amounts paid, and the nature and status at the time of such payment of the litigation or threatened litigation.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(d)&nbsp;&nbsp;&nbsp;&nbsp; If any action with respect to indemnification of directors and officers is taken by way of amendment of the by-laws, resolution of directors, or by agreement, then the corporation shall, not later than the next annual meeting of shareholders, unless such meeting is held within three months from the date of such action, and, in any event, within fifteen months from the date of such action, mail to its shareholders of record at the time entitled to vote for the election of directors a statement specifying the action taken.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(e)&nbsp;&nbsp;&nbsp;&nbsp; Any notification required to be made pursuant to the foregoing paragraph (c) or (d) of this section by any domestic mutual insurer shall be satisfied by compliance with the corresponding provisions of section one thousand two hundred sixteen of the insurance law.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of this article relating to indemnification of directors and officers and insurance therefor shall apply to domestic corporations and foreign corporations doing business in this state, except as provided in section 1320 (Exemption from certain provisions).</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#167; 726.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INSURANCE FOR INDEMNIFICATION OF DIRECTORS AND OFFICERS.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)&nbsp;&nbsp;&nbsp;&nbsp; Subject to paragraph (b), a corporation shall have power to purchase and maintain insurance:</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(1)&nbsp;&nbsp;&nbsp;&nbsp; To indemnify the corporation for any obligation which it incurs as a result of the indemnification of directors and officers under the provisions<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of this article, and</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(2)&nbsp;&nbsp;&nbsp;&nbsp; To indemnify directors and officers in instances in which they may be indemnified by the corporation under the provisions of this article, and</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To indemnify directors and officers in instances in which they may not otherwise be indemnified by the corporation under the provisions of this&nbsp;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;article provided the contract of insurance covering such directors and officers provides, in a manner acceptable to the superintendent of insurance, for a&nbsp;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;retention amount and for co-insurance.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No insurance under paragraph (a) may provide for any payment other than cost of defense, to or on behalf of any director or officer:</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(1) if a judgment or other final adjudication adverse to the insured director or officer establishes that his acts of active and deliberate dishonesty were&nbsp;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;material to the cause of action so adjudicated, or that he personally gained in fact a financial profit or other advantage to which he was not legally entitled, or</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(2) in relation to any risk the insurance of which is prohibited under the insurance law of this state.</FONT></P>
<P align=center>II-5</P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance under any or all subparagraphs of paragraph (a) may be included in a single contract or supplement thereto. Retrospective rated contracts are prohibited.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The corporation shall, within the time and to the persons provided in paragraph (c) of section 725 (Other provisions affecting indemnification of directors or officers), mail a statement in respect of any insurance it has purchased or renewed under this section, specifying the insurance carrier, date of the contract, cost of the insurance, corporate positions insured, and a statement explaining all sums, not previously reported in a statement to shareholders, paid under any indemnification insurance contract.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This section is the public policy of this state to spread the risk of corporate management, notwithstanding any other general or special law of this state or of any other jurisdiction including the federal government.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Article VIII of the Company&#146;s By-Laws provides:</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">To the full extent authorized by law, the corporation shall and hereby does indemnify any person who shall at any time be made, or threatened to be made, a party in any civil or criminal action or proceeding by reason of the fact that he, his testator or his intestate is or was a director or officer of the corporation or served another corporation in any capacity at the request of the corporation.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Section 5.03(c) of the Voting Trust Agreement provides:</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Corporation covenants and agrees, and in the event the Corporation shall not do so for any reason whatsoever the Participating Shareholders in consideration of the Voting Trustees having agreed to serve in that capacity for the benefit of the Participating Shareholders covenant and agree ratably in accordance with the number of shares of Common Stock represented by their respective Voting Trust Interests, to indemnify each Voting Trustee and each agent or attorney of the Voting Trustees (including, without limitation, Agents, transfer agents and registrars) for, and to hold such Voting Trustee harmless against, any tax, loss, liability or expense incurred for any reason other than his or her own individual willful misconduct, arising out of or in connection with the acceptance or administration of the 2007 Voting Trust, and the performance of his or her duties and obligations hereunder and the exercise of his rights and powers hereunder, including the costs and expenses of defending against any claim of liability. The obligations under this Section 5.03(c) of the Corporation and the Participating Shareholders to indemnify the Voting Trustees and each agent or attorney of the Voting Trustees (including, without limitation, Agents, transfer agents and registrars) shall be payable from any funds or other assets held by the Voting Trustees hereunder for the account of the Corporation or the Participating Shareholders as the case may be.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Effective December 1, 2007, the Company renewed the insurance covering directors and officers along with the fiduciary liability that covers certain other employees, against liabilities imposed on them as a result of their employment with the Company. This insurance is provided by National Union Fire Insurance Company (a member of the AIG Group) and Allied World Assurance Company for a total premium of $175,561 through November 30, 2008.</FONT></P>
<P align=center>II-6</P>
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<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Item 15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recent Sales of Unregistered Securities.</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Item 16.&nbsp;&nbsp;&nbsp;&nbsp; Exhibits and Financial Statement Schedules.</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Articles of Incorporation</FONT></U></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restated Certificate of Incorporation, as amended, filed as Exhibit 4(i) to the Company&#146;s Registration Statement on Form S-1 (Registration No. 333-15761) and incorporated herein by reference.</P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificate of Amendment of Certificate of Incorporation, filed as Exhibit 4(ii) to the Company&#146;s Registration Statement on Form S-2 (Registration No. 333-118575) and incorporated herein by reference.</P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Bylaws</FONT></U></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bylaws, as amended through June 14, 2007,&nbsp;filed as&nbsp;Exhibit 9.01(d)(3)(ii) to the Company&#146;s Current Report on Form 8-K dated June 14, 2007 (Commission File No. 0-255) and incorporated herein by reference.</P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Instruments defining the rights of security holders, including indentures</FONT></U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">:</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(i)&nbsp;&nbsp;&nbsp;&nbsp; Restated Certificate of Incorporation, as amended, filed as Exhibit 4(i) to the Company&#146;s Registration Statement on Form S-1 (Registration No. 333-15761) and incorporated herein by reference.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(ii)&nbsp;&nbsp;&nbsp; Certificate of Amendment of Certificate of Incorporation, filed as Exhibit 4(ii) to the Company&#146;s Registration Statement on Form S-2 (Registration No. 333-118575) and incorporated herein by reference.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(iii)&nbsp;&nbsp;&nbsp;Voting Trust Agreement dated as of March 16, 2007, attached as Annex A to the Prospectus, dated January 18, 2007, constituting a part of the Registration Statement on Form S-1 (Registration No. 333-139992) and incorporated herein by reference.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(iv)&nbsp;&nbsp;&nbsp;Bylaws, as amended through June 14, 2007, filed as Exhibit 9.01(d)(3)(ii) to the Company&#146;s Current Report on Form 8-K dated June 14, 2007 (Commission File No. 0-255) and incorporated herein by reference.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Company hereby agrees to furnish to the Commission upon request a copy of each instrument omitted pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"><U>Opinion re legality&nbsp;<BR>
<BR>
</U></FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Opinion of Bryan Cave LLP.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Voting Trust Agreement</FONT></U></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voting Trust Agreement dated as of March 16, 2007, attached as Annex A to the Prospectus, dated January 18, 2007, constituting a part of the Registration Statement on Form S-1 (Registration No. 333-139992) and incorporated herein by reference.</P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">10.&nbsp;&nbsp;&nbsp;</FONT><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Material Contracts</FONT></U></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management Incentive Plan, filed as Exhibit 4(a)(1) to the Annual Report on Form 10-K for the year ended December 31, 1972 (Commission File No. 0-255), as amended by the Amendment effective January 1, 1974, filed as Exhibit 13-c to the Registration Statement on Form S-1 (Registration No. 2-51832), the Amendment effective January 1, 1977, filed as Exhibit 13(d) to the Registration Statement on Form S-1 (Registration No. 2-59744), and the Amendment effective January 1, 1980, filed as Exhibit 5(f) to the Registration Statement on Form S-7 (Registration No. 2-68938) and incorporated herein by reference.*</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;Form of Deferral Agreement entered into between the Company and certain employees, filed as Exhibit 10(ii) to the Company&#146;s Annual Report on Form 10-K for the year ended December 31, 2002 and incorporated herein by reference.*</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(iii)&nbsp;&nbsp;&nbsp;Form of Supplemental Benefit Plan covering certain employees, filed as Exhibit 10(iii) to the Company&#146;s Annual Report on Form 10-K for the year ended December 31, 2002 and incorporated herein by reference.*</FONT></P>
<P align=center>II-7</P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(iv)&nbsp;&nbsp;&nbsp;Receivables Sale Agreement, dated June 30, 2000, between Graybar Electric Company, Inc. and Graybar Commerce Corporation filed as Exhibit 10.1 to the Company&#146;s Quarterly Report on Form 10-Q for the period ended June 30, 2003 (Commission File No. 0-255) and incorporated herein by reference; and Amendment to Receivables Sale Agreement dated August 15, 2006, filed as Exhibit 10(x) to the Company&#146;s Registration Statement on Form S-1 (Registration No. 333-137249) and incorporated herein by reference.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(v)&nbsp;&nbsp;&nbsp;&nbsp;Receivables Purchase Agreement, dated June 30, 2000, among Graybar Commerce Corporation, as Seller, Graybar Electric Company, Inc., as Servicer, Falcon Asset Securitization Corporation and Bank One, NA, as Agent, and other financial institutions named therein; Amendments to Receivables Purchase Agreement dated January 1, 2001, June 22, 2001, August 29, 2001, October 26, 2001, December 31, 2001, October 23, 2002, and December 23, 2002, filed as Exhibit 10.2 to the Company&#146;s Quarterly Report on Form 10-Q for the period ended June 30, 2003 (Commission File No. 0-255) and incorporated herein by reference; Amendment to Receivables Purchase Agreement, dated October 22, 2003, filed as an exhibit 10(v) to the Company&#146;s Registration Statement on Form S-2 (Registration No. 333-118575) and incorporated herein by reference; Amendment to Receivables Purchase Agreement, dated September 26, 2005, filed as an exhibit 10(v) to the Company&#146;s Annual Report on Form 10-K for the year ended December 31, 2005 and incorporated herein by reference; and Amendment to Receivables Purchase Agreement dated August 15, 2006, filed as Exhibit 10(ix) to the Company&#146;s Registration Statement on Form S-1 (Registration No. 333-137249) and incorporated herein by reference.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(vi)&nbsp;&nbsp; Five-Year Credit Agreement dated May 8, 2007, among Graybar Electric Company, Inc., Bank of America, N.A., as Agent, and other banks named therein, filed as Exhibit 10.1 to the Company&#146;s Quarterly Report on Form 10-Q for the period ended March 31, 2007 (Commission File No. 0-255) and incorporated herein by reference.<BR>
</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">*Compensation arrangement</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">23.&nbsp;&nbsp;&nbsp;</FONT><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Consents of experts and counsel</FONT></U></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Consent of Ernst &amp; Young LLP.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;Consent of Bryan Cave LLP (contained in the opinion filed as Exhibit 5 and incorporated herein by reference).</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">24.&nbsp;&nbsp; </FONT><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Powers of attorney</FONT></U></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Powers of attorney of certain directors and officers of the Company (included on page II-10 of this Registration Statement.)</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Powers of attorney of the Voting Trustees under the Voting Trust dated as of March 16, 2007 (included on page II-11 of this Registration Statement)</FONT></P>
<P align=center>II-8</P>
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<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Item 17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undertakings.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Company or the Voting Trustees pursuant to the foregoing provisions, or otherwise, the Company and the Voting Trustees have been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Company or the Voting Trustees of expenses incurred or paid by a director, officer or controlling person of the Company or the Voting Trustees in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Company or the Voting Trustees will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it or them is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SIGNATURES</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to the requirements of the Securities Act of 1933, as amended, the Company has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the County of St. Louis, State of Missouri on the&nbsp;29th day of August, 2008.</FONT></P>
<DIV align=right>
<TABLE cellSpacing=0 cellPadding=0 width="40%" border=0>
<TR>
     <TD width="3%"></TD>
     <TD width="27%"></TD></TR>
<TR>
     <TD colSpan=2></TD></TR>
<TR vAlign=bottom>
     <TD align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">GRAYBAR ELECTRIC COMPANY, INC.</FONT> </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR>
     <TD colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">By:</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left>&nbsp;/s/ Matthew W. Geekie</TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
     <TD align=left>&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Matthew W. Geekie, Senior Vice</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
     <TD align=left>&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">President, General Counsel and</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
     <TD align=left>&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Secretary</FONT> </TD></TR></TABLE></DIV><BR>
&nbsp;
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints </FONT><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">Matthew W. Geekie</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">, his true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as they might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their substitutes, may lawfully do or cause to be done by virtue hereof.</FONT></P>
<P align=center>II-9</P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities indicated on August 29, 2008.</FONT></P>
<DIV align=left>
<TABLE cellSpacing=0 cellPadding=0 width="90%" border=0>
<TR>
     <TD width="39%"></TD>
     <TD width="2%"></TD>
     <TD width="39%"></TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Signature</FONT></U></TD>
     <TD align=left></TD>
     <TD align=center><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Title</FONT></U></TD></TR>
<TR>
     <TD align=left>&nbsp;</TD>
     <TD align=left></TD>
     <TD align=left></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ R. A. Reynolds, Jr.</FONT> </TD>
     <TD align=left></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Director and Chairman of the Board and</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(R. A. Reynolds, Jr.)</FONT> </TD>
     <TD align=left></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">President (Principal Executive Officer)</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ D. B. D&#146;Alessandro</FONT> </TD>
     <TD align=left></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Director, Senior Vice President (Principal</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(D. B. D&#146;Alessandro)</FONT> </TD>
     <TD align=left></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Financial Officer)</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ M. J. Beagen</FONT> </TD>
     <TD align=left></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Vice President and Controller (Principal</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(M. J. Beagen)</FONT> </TD>
     <TD align=left></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Accounting Officer)</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=center colSpan=3><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Directors:</FONT></B> </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ R. A. Cole</FONT> </TD>
     <TD align=left></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ R. C. Lyons</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(R. A. Cole)</FONT> </TD>
     <TD align=left></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(R. C. Lyons)</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ D. E. DeSousa</FONT> </TD>
     <TD align=left></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ K. M. Mazzarella</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(D. E. DeSousa)</FONT> </TD>
     <TD align=left></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(K. M. Mazzarella)</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ M. W. Geekie</FONT> </TD>
     <TD align=left></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ R. L. Nowak</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(M. W. Geekie)</FONT> </TD>
     <TD align=left></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(R. L. Nowak)</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ L. R. Giglio</FONT> </TD>
     <TD align=left></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ R. D. Offenbacher</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(L. R. Giglio)</FONT> </TD>
     <TD align=left></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(R. D. Offenbacher)</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ T. S. Gurganous</FONT> </TD>
     <TD align=left></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ K. B. Sparks</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(T. S. Gurganous)</FONT> </TD>
     <TD align=left></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(K. B. Sparks)</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ F. H. Hughes</FONT> </TD>
     <TD align=left></TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(F. H. Hughes)</FONT> </TD>
     <TD align=left></TD>
     <TD align=left>&nbsp; </TD></TR></TABLE></DIV>
<P align=center>II-10</P>
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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SIGNATURES</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to the requirements of the Securities Act of 1933, as amended, the Voting Trustees have duly caused this Registration Statement to be signed on their behalf by the undersigned, thereunto duly authorized, in the County of St. Louis, State of Missouri on the&nbsp;29th day of August, 2008.</FONT></P>
<DIV align=right>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0>
<TR>
     <TD width="12%"></TD>
     <TD width="69%"></TD>
     <TD width="17%"></TD></TR>
<TR>
     <TD></TD>
     <TD colSpan=2></TD></TR>
<TR vAlign=bottom>
     <TD align=left colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">D. E. DESOUSA, L. R. GIGLIO, T. S.</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">GURGANOUS, R. D. OFFENBACHER AND R.</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">A. REYNOLDS, JR.,VOTING TRUSTEES</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">UNDER THE VOTING TRUST AGREEMENT,</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">DATED AS OF MARCH 16, 2007</FONT> </TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR>
     <TD colSpan=3>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">By:</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">R</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">. </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">A. Reynolds</FONT> , Jr.</FONT> </TD>
     <TD align=left>&nbsp;</TD></TR>
<TR height=2>
     <TD align=left></TD>
     <TD align=left colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Name: </FONT></TD>
     <TD align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">R</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">. </FONT><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">A. Reynolds</FONT>, Jr., as Voting</FONT> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Trustee</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp;</TD>
     <TD align=left colSpan=2>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints </FONT><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">Matthew W. Geekie</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">, his true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as they might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their substitutes, may lawfully do or cause to be done by virtue hereof.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons, as Voting Trustees under the Voting Trust Agreement dated as of March 16, 2007, on August 29th, 2008.</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>
<TR>
     <TD width="30%"></TD>
     <TD width="5%"></TD>
     <TD width="30%"></TD></TR>
<TR vAlign=bottom>
     <TD align=center colSpan=3><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Signatures</FONT></U> </TD></TR>
<TR>
     <TD align=left>&nbsp;</TD>
     <TD align=left></TD>
     <TD align=left></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ R. A. Reynolds, Jr.</FONT> </TD>
     <TD align=left></TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">T. S. Gurganous</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(R. A. Reynolds, Jr.)</FONT> </TD>
     <TD align=left></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" color=#000000>(T. S. Gurganous)</FONT> </TD></TR>
<TR>
     <TD align=left>&nbsp;</TD>
     <TD align=left></TD>
     <TD align=left></TD></TR>
<TR>
     <TD align=left>&nbsp;</TD>
     <TD align=left></TD>
     <TD align=left></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ D. E. DeSousa</FONT> </TD>
     <TD align=left></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ R</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">. D. Offenbacher</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(D. E. DeSousa)</FONT> </TD>
     <TD align=left></TD>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" color=#000000>(R. D. Offenbacher)</FONT> </TD></TR>
<TR>
     <TD align=left>&nbsp;</TD>
     <TD align=left></TD>
     <TD align=left></TD></TR>
<TR>
     <TD align=left>&nbsp;</TD>
     <TD align=left></TD>
     <TD align=left></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ L. R. Giglio</FONT> </TD>
     <TD align=left></TD>
     <TD align=left>&nbsp; </TD></TR>
<TR>
     <TD align=left>(L. R. Giglio)</TD>
     <TD align=left></TD>
     <TD align=left></TD></TR></TABLE></DIV>
<P align=center>II-11</P>
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<P align=left>&nbsp;</P>

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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">INDEX TO EXHIBITS</FONT></B></P>
<P align=center><B><U><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Exhibits</FONT></U></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3.&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Articles of Incorporation</FONT></I></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restated Certificate of Incorporation, as amended, filed as Exhibit 4(i) to the Company&#146;s Registration Statement on Form S-1 (Registration No. 333-15761) and incorporated herein by reference.</P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificate of Amendment of Certificate of Incorporation, filed as Exhibit 4(ii) to the Company&#146;s Registration Statement on Form S-2 (Registration No. 333-118575) and incorporated herein by reference.</P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Bylaws</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bylaws, as amended through June 14, 2007,&nbsp;filed as&nbsp;Exhibit 9.01(d)(3)(ii) to the Company&#146;s Current Report on Form 8-K dated June 14, 2007 (Commission File No. 0-255) and incorporated herein by reference.</P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">4.&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Instruments defining the rights of security holders, including indentures</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restated Certificate of Incorporation, as amended, filed as Exhibit 4(i) to the Company&#146;s Registration Statement on Form S-1 (Registration No. 333-15761) and incorporated herein by reference.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;Certificate of Amendment of Certificate of Incorporation, filed as Exhibit 4(ii) to the Company&#146;s Registration Statement on Form S-2 (Registration No. 333-118575) and incorporated herein by reference.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;Voting Trust Agreement dated as of March 16, 2007, attached as Annex A to the Prospectus, dated January 18, 2007, constituting a part of the Company&#146;s Registration Statement on Form S-1 (Registration No. 333-139992) and incorporated herein by reference.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(iv)&nbsp;&nbsp;&nbsp; Bylaws, as amended through June 14, 2007,&nbsp;filed&nbsp;as&nbsp;Exhibit 9.01(d)(3)(ii) to the Company&#146;s Current Report on Form 8-K dated June 14, 2007 (Commission File No. 0-255). and incorporated herein by reference.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Opinion re legality</FONT></I></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Opinion of Bryan Cave LLP</FONT></P>
<P align=left>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Voting Trust Agreement</I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voting Trust Agreement dated as of March 16, 2007, attached as Annex A to the Prospectus, dated January 18, 2007, constituting a part of the Company&#146;s Registration Statement on Form S-1 (Registration No. 333-139992) and incorporated herein by reference.</P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">10.&nbsp;&nbsp;&nbsp;</FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Material Contracts</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(i)&nbsp;&nbsp;&nbsp;&nbsp; Management Incentive Plan, filed as Exhibit 4(a)(1) to the Annual Report on Form 10-K for the year ended December 31, 1972 (Commission File No. 0-255), as amended by the Amendment effective January 1, 1974, filed as Exhibit 13-c to the Registration Statement on Form S-1 (Registration No. 2-51832), the Amendment effective January 1, 1977, filed as Exhibit 13(d) to the Registration Statement on Form S-1 (Registration No. 2-59744), and the Amendment effective January 1, 1980, filed as Exhibit 5(f) to the Registration Statement on Form S-7 (Registration No. 2-68938) and incorporated herein by reference.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;Form of Deferral Agreement entered into between the Company and certain employees, filed as Exhibit 10(ii) to the Company&#146;s Annual Report on Form 10-K for the year ended December 31, 2002 and incorporated herein by reference.*</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(iii)&nbsp;&nbsp;&nbsp;Form of Supplemental Benefit Plan covering certain employees, filed as Exhibit 10(iii) to the Company&#146;s Annual Report on Form 10-K for the year ended December 31, 2002 and incorporated herein by reference.*</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(iv)&nbsp;&nbsp;&nbsp;&nbsp;Receivables Sale Agreement, dated June 30, 2000, between Graybar Electric Company, Inc. and Graybar Commerce Corporation filed as Exhibit 10.1 to the Company&#146;s Quarterly Report on Form 10-Q for the period ended June 30, 2003 (Commission File No. 0-255) and incorporated herein by reference; and Amendment to Receivables Sale Agreement dated August 15, 2006, filed as Exhibit 10(x) to the Company&#146;s Registration Statement on Form S-1 (Registration No. 333-137249) and incorporated herein by reference.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables Purchase Agreement, dated June 30, 2000, among Graybar Commerce Corporation, as Seller, Graybar Electric Company, Inc., as Servicer, Falcon Asset Securitization Corporation and Bank One, NA, as Agent, and other financial institutions named therein; Amendments to Receivables Purchase Agreement dated January 1, 2001, June 22, 2001, August 29, 2001, October 26, 2001, December 31, 2001, October 23, 2002, and December 23, 2002, filed as Exhibit 10.2 to the Company&#146;s Quarterly Report on Form 10-Q for the period ended June 30, 2003 (Commission File No. 0-255) and incorporated herein by reference; Amendment to Receivables Purchase Agreement dated October 22, 2003, filed as an exhibit 10(v) to the Company&#146;s Registration Statement on Form S-2 (Registration No. 333-118575) and incorporated herein by reference; Amendment to Receivables Purchase Agreement, dated September 26, 2005, filed as an exhibit 10(v) to the Company&#146;s Annual Report on Form 10-K for the year ended December 31, 2005 and incorporated herein by reference; and Amendment to Receivables Purchase Agreement dated August 15, 2006, filed as Exhibit 10(ix) to the Company&#146;s Registration Statement on Form S-1 (Registration No. 333-137249) and incorporated herein by reference.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(vi)&nbsp;&nbsp;&nbsp;&nbsp;Five-Year Credit Agreement dated May 8, 2007 among Graybar Electric Company, Inc., Bank of America, N.A., as Agent, and other banks named therein, filed as Exhibit 10.1 to the Company&#146;s Quarterly Report on Form 10-Q for the period ended March 31, 2007 (Commission File No. 0-255) and incorporated herein by reference.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">23.&nbsp;&nbsp;&nbsp;</FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Consents of experts and counsel</FONT></I></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consent of Ernst &amp; Young LLP</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(b)&nbsp;&nbsp;&nbsp;&nbsp; Consent of Bryan Cave LLP (contained in the opinion&nbsp;filed as Exhibit 5 to this registration statement)</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">24.&nbsp;&nbsp;&nbsp;<I>Powers of attorney</I></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Powers of attorney of certain directors and officers of the Company (included on page II-10 of this Registration Statement.)</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Powers of attorney of the Voting Trustees under the Voting Trust dated as of March 16, 2007 (included on page II-11 of this Registration Statement)<BR>
</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">*Compensation arrangement</FONT></P>
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{"company-data": {"conformed-name": "GRAYBAR ELECTRIC CO INC", "cik": "0000205402", "assigned-sic": "5063", "irs-number": "130794380", "state-of-incorporation": "NY", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-153266", "film-number": "081048958"}, "business-address": {"street1": "34 N MERAMEC AVE", "city": "ST LOUIS", "state": "MO", "zip": "63105", "phone": "3145129200"}, "mail-address": {"street1": "P O BOX 7231", "city": "ST LOUIS", "state": "MO", "zip": "63177"}}
s-1_forcommonstockpurchasepl.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing
Registration No.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S
-1
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
GRAYBAR ELECTRIC COMPANY, INC.
AND
D. E. DESOUSA, L. R. GIGLIO, T. S. GURGANOUS, R. D. OFFENBACHER AND R. A. REYNOLDS, JR.,
VOTING TRUSTEES UNDER THE VOTING TRUST AGREEMENT, DATED AS OF
MARCH 16, 2007, RELATING TO COMMON STOCK ISSUED BY GRAYBAR ELECTRIC
COMPANY, INC.
(Exact name of registrants as specified in their charters)
New York
(State or other jurisdiction of incorporation of Graybar Electric Company, Inc.)
5063
(Primary Standard Industrial Classification Code Number of Graybar Electric Company, Inc.)
13-0794380
(I.R.S. Employer Identification No. of Graybar Electric Company, Inc.)
34 North Meramec Avenue, St. Louis, Missouri 63105, (314) 573-9200
(Address, including zip code, and telephone number, including area code, of principal executive
offices of Graybar Electric Company, Inc. and of the Voting Trustees)
Matthew W. Geekie, Esq.
Senior Vice President, Secretary and General Counsel
Graybar Electric Company, Inc., 34 North Meramec Avenue, St. Louis, Missouri 63105
(314)
573-9200
(Name, address, including zip code, and telephone number, including area code, of agent
for service for Graybar Electric Company, Inc. and the Voting Trustees)
Copy to:
James R. Levey, Esq.
Bryan Cave LLP
One Metropolitan Square
211 North Broadway, Suite 3600
St. Louis, MO 63102
October 22, 2008
(Approximate date of commencement of proposed sale to the public)
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to
Rule 415 under the Securities Act of 1933, check the following box.
¨
If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act,
please check the following box and list the Securities Act registration statement number of the earlier effective
registration statement for the same offering.
¨
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the
following box and list the Securities Act registration statement number of the earlier effective registration statement
for the same offering.
¨
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the
following box and list the Securities Act registration statement number of the earlier effective registration statement
for the same offering.
¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer,
or a smaller reporting company. See the definitions of "large accelerated filer", "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
¨
Accelerated filer
¨
Non-accelerated filer
x
(Do not check if a smaller reporting company)
Smaller reporting company
¨
CALCULATION OF REGISTRATION FEE
Title of each class of securities to be registered
Amount to be
registered
Proposed
maximum
offering price
per unit
Proposed
maximum
aggregate
offering price
Amount of
registration
fee
Common Stock (par value $1 per share)
1,000,000
shs.
$20
$
20,000,000
$786.00
Voting Trust Interests (1)
--
--
--
--
(1)
Representing the shares of Common Stock offered hereunder.
The registrants hereby amend this Registration Statement on such date or dates as may be necessary to
delay its effective date until the registrants shall file a further amendment which specifically states that this
Registration Statement shall thereafter become effective in accordance with section 8(a) of the Securities Act of
1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to
said section 8(a), may determine.
P R O S P E C T U S
1,000,000 Shares
Graybar Electric Company, Inc.
Common Stock
and related
Voting Trust Interests
offered to
Employees and Qualified Retirees of Graybar Electric Company, Inc.
under the
THREE-YEAR COMMON STOCK PURCHASE PLAN
Graybar Electric Company, Inc. ("Graybar" or the "Company") is offering an aggregate of up to 1,000,000 shares of Common Stock and related Voting Trust Interests in the 2007 Voting Trust to eligible employees and qualified retirees under the second offering pursuant to the Three-Year Common Stock Purchase Plan adopted in June of 2007 (the "Plan"). If you are eligible to subscribe, you may purchase shares by completing a Subscription Agreement in the manner set forth in this Prospectus. As of June 30, 2008, approximately 80% of the presently outstanding Common Stock is held in the Voting Trust established in 2007. The 2007 Voting Trust Agreement is described under the heading "Summary of Certain Provisions of the Voting Trust Agreement" and, unless stated otherwise, all references in this Prospectus to the Voting Trust Agreement mean the 2007 Voting Trust Agreement.
Subscriptions will be irrevocable unless your employment terminates for any cause other than retirement on a pension (other than a deferred pension), or you receive a "hardship" withdrawal from Account K under Graybar's Profit Sharing and Savings Plan, in which case your subscription will be canceled as to shares not yet issued. The Company has the option to repurchase, at $20.00 per share, shares of Common Stock owned by you or Voting Trust Interests representing them
,
in the event you desire to sell, transfer or otherwise dispose of them or in the event of your death or termination of your employment other than by retirement on a pension (other than a deferred pension). See "The 2008 Offering," "Three-Year Common Stock Purchase Plan" and "Description of Common Stock -- Repurchase Option." No public market exists for shares of the Company's Common Stock or for Voting Trust Interests representing them, and no such markets are expected to develop.
Purchasing Graybar Common Stock pursuant to the Three-Year Common Stock Purchase Plan involves certain risks. See "Risk Factors," beginning on page 7.
Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or passed upon the accuracy or adequacy of this
Prospectus. Any representation to the contrary is a criminal offense.
Price to Public
Underwriting Discounts
and Commissions
Proceeds to the
Company
Per Unit
$20
None
$20
Total
$20,000,000
None
$20,000,000
The proceeds to Graybar are before the deduction of expenses payable by us estimated at $100,000. To the extent that subscription rights are not exercised, the proceeds will be reduced by $20.00 for each share not subscribed for. To the extent that shares are purchased under the installment method, receipt of the proceeds will be deferred. See "The 2008 Offering."
The date of this Prospectus is October 22, 2008.
TABLE OF CONTENTS
Page
PROSPECTUS SUMMARY
1
RISK FACTORS
7
THE 2008 OFFERING
8
PURPOSE OF ISSUE
12
DIVIDENDS
12
DETERMINATION OF OFFERING PRICE
13
CAPITALIZATION
13
DESCRIPTION OF COMMON STOCK
15
DESCRIPTION OF DELEGATED AUTHORITY PREFERRED STOCK
17
INFORMATION CONCERNING THE VOTING TRUSTEES
18
SUMMARY OF CERTAIN PROVISIONS OF THE VOTING TRUST AGREEMENT
20
LEGAL MATTERS
24
EXPERTS
24
WHERE YOU CAN FIND MORE INFORMATION
24
INCORPORATION BY REFERENCE
24
THREE-YEAR COMMON STOCK PURCHASE PLAN
Exhibit A
-
You should only rely on the information contained or incorporated by reference in this
Prospectus.
We have not authorized any person to provide you with different
information. If anyone provides you with different or inconsistent information, you
should not rely on it.
-
We are not making an offer to sell these securities in any jurisdiction where the offer or
sale is not permitted. Certain states require that the offering be made through a dealer
registered in that state. The offering will be made to residents of those states through
Huntleigh Securities Corporation. Huntleigh Securities Corporation provides financial
advice to Graybar on a retainer basis. If you were directed to this Prospectus, or if this
Prospectus was provided to you, by Huntleigh Securities Corporation, you should contact
the designated representative of Huntleigh Securities Corporation named in the cover
letter that accompanied this Prospectus if you have questions.
-
You should assume that the information appearing in this Prospectus is accurate as of the
date on the front cover of this Prospectus only.
-
This Prospectus does not constitute an offer to sell, or the solicitation of an offer to buy,
any securities other than the securities to which it relates.
- i -
PROSPECTUS SUMMARY
Because this is a summary, it does not contain all the information that may be important to you. You should read the entire Prospectus before you decide whether to subscribe for Common Stock.
The Plan
This offering is being made under the Three-Year Common Stock Purchase Plan (the "Plan"), which allows for the
issuance in annual offerings in 2007, 2008 and 2009
of up to an aggregate of 2,000,000 shares
of Common Stock
. In the 2007 offering pursuant to the Plan, 883,310 shares were offered to eligible employees and retirees and 557,704 shares were subscribed for. The terms of the 2008 offering, which are described herein, are substantially the same as the terms for the 2007 offering. The text of the Three-Year Common Stock Purchase Plan, which was approved by the directors on March 8, 2007 and by the shareholders on June 14, 2007, is attached as Exhibit A.
Each annual offering affords, with certain limited exceptions, an opportunity to purchase shares of Common Stock to each person who on September 30 of the year in which the offering is being conducted has been an active, full-time employee of the Company or its wholly owned subsidiary, Commonwealth Controls Corporation, continuously since March 31 of that year or who was an active, full-time employee on March 31 and retired thereafter on a pension (except a deferred pension).
The limitation of eligibility to active, full-time employees and
qualified
retirees conforms with the policy initially adopted when the Company's active employees acquired all of
the
Common Stock from Western Electric Company
,
Incorporated in 1929 and continuously followed since then.
Accordingly, with certain limited exceptions, under the Plan, holders of Common Stock or Voting Trust Interests who on September 30 of the year in which the offering is made are not active, full-time employees of the Company or Commonwealth Controls Corporation continuously employed by the Company or Commonwealth Controls Corporation since March 31 of that year will not be entitled to participate in the offering, with the exception of active, full-time employees who retire on a pension (except a deferred pension) on or after March 31 and prior to October 1 of the year in which the offering is made.
Shares of Common Stock subscribed for pursuant to the terms of the Plan will, upon issuance, be deposited in the Voting Trust established by the Voting Trust Agreement and Voting Trust Interests will be issued in respect thereof, except that the Common Stock purchased by subscribers who prior to the offering are already shareholders of record who elected in 2007 not to participate in the Voting Trust Agreement will be recorded in a book-entry system maintained by Graybar and shall be uncertificated unless the subscriber makes (or has made) a written request to the Secretary of Graybar for a certificate, in which case, a certificate shall be issued and delivered directly to such subscriber. The Voting Trust Interests also will be uncertificated and evidenced by a book-entry system maintained by the Voting Trustees unless a subscriber requests (or has previously requested) that voting trust certificates be issued in respect thereof by
- 1 -
checking the appropriate box on the Subscription Agreement or sends (or has sent) a written request to the Voting Trustees.
All subscribed shares of Common Stock will be issued and held subject to the terms, provisions, restrictions and qualifications set forth in the Restated Certificate of Incorporation of the Company, as amended, which, among other things, provides the Company with the option to repurchase shares of its Common Stock at the price at which such shares were issued, with appropriate adjustment for current dividends, in the event any holder of Common Stock wants to sell, transfer or otherwise dispose of any of his or her shares of such Common Stock, or in the event of his or her death or in the event of termination of his or her employment other than by retirement on a pension (except a deferred pension). The Voting Trust Interests to be issued under the Voting Trust Agreement will provide, in substance, that every Voting Trust Interest is issued and held upon and subject to the same terms and conditions (including all restrictions) upon which Common Stock of the Company is issued and held. Each subscriber
,
by completing a Subscription Agreement
,
will specifically agree to be bound by the provisions of the
Company's
Restated Certificate of Incorporation and will agree that all Common Stock or Voting Trust Interests held by such subscriber shall be subject to those provisions.
The Plan provides that no corporate action that would result in a distribution of Common Stock or other assets of the Company to its shareholders (except the payment of cash dividends or the issuance of shares of Common Stock pursuant to the installment payment method) will be taken without first giving notice of such proposed action to subscribers in this offering who have not then completed their installment payments on the Common Stock for which they have subscribed. Such subscribers will be granted not less than 20 days to accelerate their payments on such Common Stock in order that they may obtain the benefits of such action. Subscribers who elected to use payroll deduction have the right at any time to pay the full remaining amount due.
The Plan will remain in effect until January 31, 2010 unless terminated before that date by the Board of Directors of the Company, and thereafter insofar as the provisions relate to shares of Common Stock subscribed for under the installment payment method as described in the Plan, but not yet issued.
The 2008 Offering
We are offering eligible employees and retirees the right to subscribe in the 2008 offering for an aggregate of up to 1,000,000 shares of Common Stock at $20.00 per share pursuant to the Plan. Subject to certain limited exceptions, you are eligible to subscribe if you were an active, full-time employee of the Company or Commonwealth Controls Corporation on March 31, 2008, and thereafter either (a) on September 30, 2008 had been continuously employed since March 31, 2008 by the Company or Commonwealth Controls Corporation, or (b) prior to October 1, 2008 had retired on a pension (except a deferred pension). The maximum number of shares that you may purchase is one share for each $600.00 of your base salary rate at March 31, 2008 increased by the applicable multiplier specified below. The maximum number of shares you may purchase will be reduced on a pro rata basis in the unlikely event that the aggregate number of shares subscribed for by all employees exceeds 1,000,000. If you wish, you may subscribe for less than the maximum number of shares.
- 2 -
This offering will remain open from October 22, 2008 until 5:00 p.m., Central Standard Time, on December 5, 2008. You have the option of paying for all of the shares subscribed for on or before January 9, 2009 or paying for all shares subscribed for on an installment basis.
Shares of Common Stock subscribed for pursuant to the terms of the Plan will, upon issuance, be deposited in the Voting Trust established by the Voting Trust Agreement and Voting Trust Interests will be issued in respect thereof, except that Common Stock subscribed for by subscribers who prior to this offering are already shareholders of record who elected in 2007 not to participate in the Voting Trust Agreement will be recorded in a book-entry system maintained by Graybar and will be uncertificated unless written request for a certificate is made
(or has been made)
to the Secretary of Graybar, in which case
subscribers
will receive stock certificates representing the shares for which they subscribe. The Voting Trust Interests also will be uncertificated and evidenced by the book-entry system maintained by the Voting Trustees unless a subscriber requests (or has previously requested) that voting trust certificates be issued in respect thereof by checking the appropriate box on the Subscription Agreement or sends (or has sent) a written request to the Voting Trustees.
Shares paid for in full will be issued as of January 9, 2009. If chosen, installment payments will commence with the second bi-weekly payroll payment date in January 2009 and end with the last bi-weekly payroll payment date in November 2009. Shares paid for in installments will be issued of record by the tenth day of March, June, September and December to the extent they have been fully paid for. Subscribers who elect to use payroll deduction have the right at any time to pay the full remaining amount due and, upon any such accelerated payment, any shares that have been fully paid for will be issued and the payroll deduction will no longer apply.
The number of shares to be offered to each eligible subscriber in 2008 will be determined by dividing the applicable base salary rate of the subscriber by $600.00 and multiplying that amount by the applicable multiplier shown in the following table based on his or her salary classification on March 31, 2008, with fractional shares being disregarded:
Grade/Band Classifications
Multiplier
Executives EX1 through EX5
3.00
Grades 17, 18, 19 and 20 and Band M1
2.50
Grades 15 and 16 and Band M2
2.25
Grades P and Q
1.90
Grades N and O
1.85
Grade 14 or below covered either by the
Management Incentive Plan or the
Sales Incentive Plan and Band M3
1.75
Grades J, K, L and M
1.50
All others
1.25
The Board of Directors determined the appropriate number of shares to be offered to each eligible employee and eligible retiree of Commonwealth Controls Corporation using salary classifications comparable to those listed in the table above.
- 3 -
The proceeds from this offering will be added to working capital, in part to replenish amounts previously used to repurchase outstanding shares of Common Stock (or Voting Trust Interests representing them) pursuant to our repurchase option. From January 1, 2008 through July 31, 2008, the Company repurchased 269,818 shares (or Voting Trust Interests representing them) for an aggregate purchase price of $5,396,360. To the extent that shares offered are not subscribed for by employees and qualified retirees, they will not be offered for sale to anyone else and the number of shares sold and the proceeds received will be correspondingly reduced.
Business
Graybar is a New York corporation, incorporated on December 11, 1925. We are engaged in the distribution of electrical, telecommunications and networking products and the provision of related supply chain management and logistics services, primarily to construction contractors, industrial plants, telephone companies, power utilities, federal, state and local governments and commercial users in North America. All products sold by us are purchased by us from others. Our business activity is primarily with customers in the United States. We also have subsidiary operations with distribution facilities in Canada and Puerto Rico.
We distribute over one million products (stockkeeping units) made by nearly 4,400 primary manufacturers through our network of distribution facilities located in 13 geographical districts throughout the United States. We operate a main distribution facility in each district along with a number of branch distribution facilities, each of which carries an inventory of products and operates as a wholesale distributor for the territory in which it is located. In addition, we operate seven zone warehouses and three service centers containing inventories of both standard and specialized products. Both the zone warehouses and the service centers replenish the inventories carried at the main and branch distribution facilities and make shipments directly to customers.
Graybar is 100% owned by our active and retired employees and there is no public trading market for our Common Stock. At July 31, 2008, 8,001,372 shares of Common Stock were issued and outstanding and 218,
149
shares subscribed for pursuant to the 2007 offering remained to be paid for on the installment method and had not been issued. An additional 304,299 shares of Common Stock have been acquired by the Company and are held in treasury as of July 31, 2008. As of June 30, 2008, approximately 80% of the issued and outstanding shares of Common Stock were held of record by D. E. DeSousa, L. R. Giglio, T. S. Gurganous, R. D. Offenbacher and R. A. Reynolds, Jr. as Voting Trustees under the Voting Trust Agreement among the Voting Trustees, the Company and the shareholders of the Company who have elected to participate therein (the "Participating Shareholders"). Under the Voting Trust Agreement, Participating Shareholders have deposited their shares of Common Stock with the Voting Trustees and have been issued Voting Trust Interests representing those shares. The Voting Trust was established to permit the owners of shares of Common Stock deposited in the Voting Trust to act together concerning the management of Graybar and the voting on certain matters presented to the shareholders.
Our address and telephone number are 34 North Meramec Avenue, St. Louis, Missouri 63105 (314-573-9200). The mailing address of our principal executive offices is P.O. Box 7231,
- 4 -
St. Louis, Missouri 63177. Graybar also maintains an internet website at
www.graybar.com
. Except as expressly provided herein, information on our website is not part of this Prospectus.
The Voting Trust Agreement
As of June 30, 2008, approximately 80% of the outstanding Common Stock is held in the Voting Trust established by a Voting Trust Agreement that became effective on March 16, 2007. The Voting Trust Agreement will expire on March 15, 2017 unless sooner terminated.
Shares of Common Stock that you purchase will be deposited in the Voting Trust and Voting Trust Interests representing them will be issued to you unless you currently are a shareholder of record of Common Stock who elected in 2007 not to participate in the Voting Trust Agreement with respect to the shares you already own. In that case, Common Stock that you purchase will be recorded in a book-entry system maintained by Graybar and will be uncertificated unless you make
(or have made)
a written request for a certificate to the Secretary of Graybar, in which case, you will receive one or more stock certificates representing any additional shares that you purchase. Likewise, Voting Trust Interests issued to you will be uncertificated unless you request or have requested that voting trust certificates be issued in respect thereof.
Under the Voting Trust Agreement, the Voting Trustees are entitled in their discretion and using their best judgment to vote all the shares deposited in the Voting Trust on the election of directors and the ratification, approval or disapproval of any other action or proposed action of the Company requiring a vote or consent by shareholders, except that the Voting Trustees may not vote on the merger or consolidation of Graybar into or with another corporation, the sale of all or substantially all of our assets or our liquidation or dissolution without the consent of the holders of Voting Trust Interests representing at least 75% of the aggregate number of shares then deposited. The Voting Trustees are not entitled to sell, transfer, or otherwise dispose of shares deposited with them other than to return them to Participating Shareholders in accordance with the Voting Trust Agreement.
Holders of Voting Trust Interests will receive cash dividends paid on Common Stock beneficially owned by them and held by the Voting Trustees. Any Common Stock paid as a stock dividend on beneficially owned shares will be deposited in the Voting Trust and Voting Trust Interests will be issued to the beneficial owner of the Common Stock upon which the stock dividends are paid.
Selected Financial Data
The following selected financial data for the five years ended December 31, 2007 are derived from the audited consolidated financial statements of Graybar Electric Company, Inc. The financial data for the six month periods ended June 30, 2008 and 2007 are derived from unaudited financial statements. The unaudited financial statements include all adjustments, consisting of normal recurring accruals, which Graybar considers necessary for a fair presentation of the financial position and the results of operations for these periods. Operating results for the six months ended June 30, 2008 are not necessarily indicative of the results that may be expected for the entire year ending December 31, 2008.  The data should be read in conjunction with "Management's Discussion and Analysis
- 5 -
of Financial Condition and Results of Operations" and the consolidated financial statements, related notes, and other financial information that are included in the Annual Report on Form 10-K for the year ended December 31, 2007 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 filed with the SEC and incorporated by reference in this Prospectus. See "Incorporation by Reference."
Six Months Ended
June 30,
(Unaudited)
Years Ended December 31,
2003
2004
2005
2006
2007
2007
2008
(In thousands, except for
(In thousands, except for per share data)
per share data)
INCOME STATEMENT DATA:
Net Sales
$
3,802,452
$
4,079,553
$
4,288,043
$
5,009,143
$
5,258,301
$
2,563,016
$
2,703,393
Income Before Cumulative
Effect of Change in
Accounting Principle
$
8,465
$
14,018
$
22,398
$
57,388
$
83,421
$
39,669
$
47,366
Cumulative Effect of
Change in Accounting
Principle, net of $3,587
Tax Effect
(A)
-
-
(5,634
)
-
-
-
-
Net Income
$
8,465
$
14,018
$
16,764
$
57,388
$
83,421
$
39,669
$
47,366
Net Income Applicable to
Common Stock
(B)
$
8,463
$
14,017
$
16,764
$
57,388
$
83,421
$
39,669
$
47,366
Income Per Share of
Common Stock Before
Cumulative Effect of Change
in Accounting Principle
(C)
$
1.02
$
1.77
$
2.91
$
7.42
$
10.58
$
5.04
$
5.91
Cumulative Effect of Change
in Accounting Principle Per
Share of Common Stock
(C)
-
-
(0.73
)
-
-
-
-
Net Income Per Share of
Common Stock
(C)
$
1.02
$
1.77
$
2.18
$
7.42
$
10.58
$
5.04
$
5.91
Cash Dividends Per Share of
Common Stock
$
2.00
$
2.00
$
2.00
$
2.00
$
2.00
$
0.60
$
0.60
BALANCE SHEET DATA:
Working Capital
$
416,612
$
396,589
$
398,889
$
415,465
$
394,291
$
455,032
$
460,397
Total Assets
$
1,422,130
$
1,451,372
$
1,443,387
$
1,508,246
$
1,532,028
$
1,579,252
$
1,571,550
Long-term Debt
$
254,381
$
205,603
$
233,527
$
203,869
$
115,419
$
193,362
$
132,184
Total Liabilities
$
1,034,547
$
1,059,008
$
1,061,952
$
1,065,523
$
1,052,411
$
1,092,348
$
1,044,255
Shareholders' Equity
$
387,583
$
392,364
$
381,435
$
442,723
$
479,617
$
486,904
$
527,295
(A)
2005 results reflect the adoption of Financial Accounting Standards Board Interpretation
No. 46, "Consolidation of Variable Interest Entities – an interpretation of ARB No. 51" (FIN
46), and its subsequent revision FIN 46R.
- 6 -
(B)
Income applicable to common stock reflects net income less preferred dividends.
(C)
All periods adjusted for the declaration of a twenty percent (20%) stock dividend in
December 2007, the declaration of a ten percent (10%) stock dividend in December 2006
and the declaration of a five percent (5%) stock dividend in December 2005.
RISK FACTORS
Before purchasing shares of our Common Stock offered hereby, you should carefully consider the following risk factors together with the others set forth in Item 1A, "Risk Factors" of our Annual Report on Form 10-K for our fiscal year ended December 31, 2007 and in the other information contained or incorporated by reference in this Prospectus, including our historical financial statements and the related notes thereto. These risk factors, among others, could cause actual results to differ materially from those currently anticipated. See "Where You Can Find More Information" and "Incorporation by Reference."
There is no trading market for our Common Stock.
No holder of our Common Stock (or Voting Trust Interests representing our Common Stock) may sell, transfer or otherwise dispose of shares (or the Voting Trust Interests) without first offering Graybar the option to purchase them at the price at which they were issued, $20.00 per share, with appropriate adjustment for current dividends. In the past, Graybar has always exercised its option and we expect to continue to do so. However, were Graybar to elect not to exercise its option at some time in the future, there can be no assurance that a public trading market would develop or as to the price at which shares would trade if a public trading market did develop.
Appreciation of the Common Stock is limited.
The repurchase price for the Common Stock (or Voting Trust Interest representing our Common Stock) under the option to purchase is the same as the offer price, $20.00 per share. Accordingly, as long as Graybar exercises its option to purchase, appreciation in the value of an investment in the Common Stock is dependent solely on the Company's ability and willingness to declare stock dividends.
Although stock dividends and stock splits have been effected from time to time, including a twenty percent (20%) stock dividend issued on February 1, 2008 to shareholders of record as of January 3, 2008, a ten percent (10%) stock dividend issued on February 1, 2007 to shareholders of record as of January 3, 2007 and a five percent (5%) stock dividend issued on February 1, 2006 to shareholders of record as of January 3, 2006, there can be no assurance that additional stock dividends or stock splits will be effected.
The value of the Common Stock is dependent to a substantial degree upon the regular payment of dividends.
As a result of the limited appreciation potential, the value of the Common Stock is derived primarily from the payment of cash dividends. Although cash dividends have been paid on the Common Stock each year since 1929, and at an annual rate of $2.00 per share since 1970
- 7 -
(10% of the price at which shares of Common Stock have been issued historically), there can be no assurance that the Company will continue to be able to pay dividends on the Common Stock.
The fact that, as of June 30, 2008, approximately 80% of the outstanding Common Stock is held in the Voting Trust and voted by the Voting Trustees, the existence of the Company's repurchase option and the authority of the Board of Directors to issue Delegated Authority Preferred stock may deter an attempted change in control.
The Voting Trust and the repurchase option described above and the issuance of Delegated Authority Preferred, as described below, could have the effect of delaying or preventing a change in control of the Company or discouraging an attempt by a third party to acquire control of the Company by tender offer or other means. As long as a substantial number of shares of Common Stock are subject to the Voting Trust Agreement or any successor voting trust agreement, it will not be possible for a third party to gain control of management without the approval of a majority of the then incumbent Voting Trustees. Similarly, unless the Company waives its right to repurchase Common Stock and Voting Trust Interests, which would require approval of the then directors, consummation of a third-party tender offer or other acquisition transaction may not be possible. The Board of Directors could also increase the number of votes required to approve a change in control of the Company by issuing Delegated Authority Preferred with voting rights.
THE 2008 OFFERING
The 2008 offering is the second annual offering made under the Plan. The Company is offering to sell to eligible, active, full-time employees and retirees up to 1,000,000 shares.
Employees entitled to subscribe.
With certain exceptions described below, each person who on September 30, 2008 was an active, full-time employee of the Company or Commonwealth Controls Corporation and had been continuously employed by the Company or Commonwealth Controls Corporation since March 31, 2008, or who on March 31, 2008 was such an active employee and thereafter retired on a pension (other than a deferred pension) prior to October 1, 2008, is entitled to subscribe for the number of shares of the Company's Common Stock, par value $1.00 per share with a stated value of $20.00 per share, determined pursuant to Section 3 of the Plan, at the price of $20.00 per share. Such persons are sometimes referred to as "eligible participants" and after completing a Subscription Agreement are referred to as "subscribers"; provided, however, that the term "eligible participants" shall not include: (a) those who receive pensions (other than eligible persons who retired on or after March 31, 2008), or retainers, whether or not currently employed, (b) those who are employed solely on a contract basis or who by written agreement have released all stock subscription rights, or (c) those included in a collective bargaining unit represented by a labor organization where the agreement between the Company or Commonwealth Controls Corporation and the labor organization excludes such persons from subscribing for Common Stock of the Company.
- 8 -
Period for and method of making subscription.
Any eligible participant desiring to subscribe for shares of Common Stock shall either complete and sign a Subscription Agreement in the form approved for such purpose and file it on or before December 5, 2008 with the Secretary at the executive offices of the Company, P.O. Box 7231, St. Louis, Missouri 63177 or complete and submit an on-line subscription in the manner set forth at
www.planenrollments.com/gbe
before 5:00 p.m., Central Standard Time on that date. No subscription shall be effective and binding unless and until accepted by the Company at its executive offices. Subscriptions must be received prior to 5:00 p.m., Central Standard Time on December 5, 2008.
Determination of number of shares for which an eligible employee is entitled to subscribe.
The maximum number of shares for which an eligible participant may subscribe shall be determined as follows.
Under Section 3.1 of the Plan, the Subscription Right of each eligible participant, subject to increase as provided in Section 3.2 of the Plan and reduction as provided in Section 3.3 of the Plan, shall be one (1) share for each $600.00 of his or her base salary rate at March 31, 2008. Fractional shares resulting from this computation shall be disregarded.
Under Section 3.2 of the Plan, the number of shares determined in accordance with Section 3.1 of the Plan for eligible participants who were, on March 31, 2008, in the salary classifications listed below, shall be increased by the applicable multiplier as follows:
-
Eligible Company participants in Executive classifications EX 1 through EX 5 --
3.00 times;
-
Eligible Company participants in Grades 17 through 20 and Band M1 -- 2.50
times;
-
Eligible Company participants in Grades 15 and 16 and Band M2 -- 2.25 times;
-
Eligible Company participants in Grades P and Q -- 1.90 times;
-
Eligible Company participants in Grades N and O -- 1.85 times;
-
Eligible Company participants in Grade 14 or below who are covered either by
the Management Incentive Plan or the Sales Incentive Plan and Band M3 -- 1.75
times;
-
Eligible Company participants in Grades J, K, L and M -- 1.50 times;
-
All other eligible Company participants -- 1.25 times; and
-
Eligible participants who are employees of Commonwealth Controls Corporation
-- As determined by the Board of Directors for each eligible participant using the
closest comparable salary classification then in effect at Commonwealth Controls Corporation.
- 9 -
Fractional shares resulting from the above computations shall be disregarded.
Under Section 3.3 of the Plan, in the unlikely event the aggregate number of shares subscribed for by all eligible participants were to exceed 1,000,000, the number of shares that each eligible participant will be entitled to purchase shall be reduced to a number determined by multiplying the number of shares such eligible participant has subscribed for (but in no event more than the number to which such participant is entitled to subscribe under Section 3 of the Plan) by a fraction, the numerator of which is 1,000,000, and the denominator of which is the aggregate number of shares subscribed for by all eligible participants. Fractional shares resulting from such computation shall be disregarded.
Subscribers may elect to pay for shares subscribed for in one of the following methods:
-
All shares subscribed for by cash or check on or before January 9, 2009,
-
All shares subscribed for through the installment method through payroll
deductions (or if you are no longer on the Company's payroll, through direct
monthly payments) over an 11-month period.
Shares and Voting Trust Interests will be issued as of January 9, 2009, in the case of shares paid for on or before January 9, 2009, and on a quarterly basis as of the tenth day of March, June, September and December to the extent full payment has been made for shares being purchased under the installment method.
Subscriptions will be irrevocable unless your employment terminates for any cause other than retirement on a pension (other than a deferred pension), or you receive a "hardship" withdrawal from Account K under Graybar's Profit Sharing and Savings Plan, in which case your subscription will be canceled as to shares not yet issued. In that event, the refund of any balance due to you will be made in the following quarter. If you have elected to pay for shares under the installment method, you may prepay the balance due on all or a portion of the shares being paid for under that method
at any time
. Upon prepayment, the shares so purchased shall be issued and such shares or any Voting Trust Interests representing them, shall be recorded and the payroll deduction shall no longer apply to them.
The Common Stock Purchase Plan provides that no corporate action that will result in a distribution of stock or other assets to our shareholders (except the payment of cash dividends or the issuance of shares of Common Stock pursuant to the installment payment method) shall be taken during the term of the Plan without our first giving notice of the proposed action to subscribers under the Plan who shall not then have paid in full for the Common Stock for which they have subscribed. Those subscribers shall have a reasonable opportunity, not less than 20 days, to complete their payment on all shares subscribed for in order that they may obtain the benefits of the contemplated action.
Under the terms of the Plan and your subscription agreement, Common Stock that you purchase will be deposited in the Voting Trust and you will receive Voting Trust Interests in
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exchange unless you are a holder of record of Common Stock as of the date hereof and elected in 2007 not to participate in the Voting Trust Agreement with respect to these shares. In that case, Common Stock that you purchase will be recorded in a book-entry system maintained by Graybar and shall be uncertificated unless written request for a certificate is made
(or has been made)
to the Secretary of Graybar, in which case, you will receive one or more certificates representing the number of shares of Common Stock that you purchase. The Voting Trust Interests also will be uncertificated and evidenced by the book-entry system maintained by the Voting Trustees unless a subscriber requests (or has previously requested) that a voting trust certificate be issued in respect thereof by checking the appropriate box on the Subscription Agreement or sends (or has sent) a written request for a certificate to the Voting Trustees. For information concerning the Voting Trustees and the Voting Trust Agreement, see "Information Concerning the Voting Trustees" and "Summary of Certain Provisions of the Voting Trust Agreement." A copy of the Voting Trust Agreement is being sent or being made available, together with this Prospectus, to each eligible employee who is not either a Participating Shareholder or a holder of record of Common Stock.
Limitation on Transferability.
The Restated Certificate of Incorporation grants the Company the option to repurchase Common Stock held by you, including Common Stock purchased under the Plan, at $20.00 per share if you desire to sell, transfer or otherwise dispose of those shares, or if you die or if your employment terminates otherwise than by retirement on a pension (other than a deferred pension). The Voting Trust Agreement imposes the same restrictions with regard to Voting Trust Interests.
The Company in the past always has exercised its repurchase option and expects to do so in the future. As a result, no trading market exists for the Common Stock or the Voting Trust Interests. If we should decide not to exercise our option at some point in the future, no assurance can be given that a public trading market in the shares of Common Stock or Voting Trust Interests would develop or as to the price at which they would trade if a public market did develop. In that case, it might be difficult for you to sell your Common Stock or Voting Trust Interests. Shares deposited in the Voting Trust may not be withdrawn before its expiration in 2017 or its earlier termination. See "Common Stock Purchase Plan," "Description of Common Stock -- Repurchase Option" and "Summary of Certain Provisions of the Voting Trust Agreement -- Restrictions on Transfer, and Right of the Company to Repurchase Voting Trust Interests Under Certain Circumstances."
Subscription Agreement.
If you desire to purchase shares of Common Stock, you must either complete and submit a Subscription Agreement on-line in the manner set forth at
http://www.planenrollments.com/gbe
or complete and sign a Subscription Agreement and mail it to the Secretary at:
Graybar Electric Company, Inc.
P.O. Box 7231
St. Louis, Missouri 63177
Attention: Secretary
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Subscriptions must be received prior to 5:00 p.m., Central Standard Time, on December 5, 2008.
PURPOSE OF ISSUE
The Common Stock Purchase Plan affords active, full-time employees and qualified retirees of the Company and Commonwealth Controls Corporation an opportunity to purchase Common Stock under the policy formulated in 1929 when the Company became an employee-owned company through acquisition by its then employees of all
the
Common Stock from Western Electric Company, Incorporated.
If fully subscribed, the net proceeds of this offering, after the deduction of estimated expenses, would be approximately $19,900,000. We intend to add all of the net proceeds from this offering to our working capital, in part to replenish amounts that have been used to repurchase Common Stock pursuant to our repurchase option. See "The Offering" and "Description of Common Stock -- Repurchase Option." From January 1, 2008 through July 31, 2008, the Company repurchased 269,818 shares (or Voting Trust Interests representing
such shares
) for an aggregate purchase price of $5,396,360. Payments made for the Common Stock may also be applied to the repayment of short-term indebtedness incurred for working capital purposes and, to the extent not needed for that purpose, will be placed in our general funds or invested in short-term securities. We expect to continue to exercise our option to repurchase outstanding shares of Common Stock and Voting Trust Interests and to use working capital to make these purchases.
To the extent shares offered under the Plan are not purchased, the number of shares sold and the proceeds received by us will be reduced. To the extent subscribers elect to purchase shares under the installment method, receipt of the proceeds by us will be deferred.
DIVIDENDS
We have paid cash dividends on our Common Stock every year since 1929. The following table sets forth the cash dividends per share of Common Stock declared during the periods indicated.
Cash
Dividends
2006
First Quarter
$0.30
Second Quarter
0.30
Third Quarter
0.30
Fourth Quarter
1.10
2007
First Quarter
$0.30
Second Quarter
0.30
Third Quarter
0.30
Fourth Quarter
1.10
2008
First Quarter
$0.30
Second Quarter
0.30
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On December 13, 2007, a twenty percent (20%) stock dividend was declared to shareholders of record as of January 3, 2008. Shares representing this dividend were issued on February 1, 2008. On December 14, 2006, a ten percent (10%) stock dividend was declared to shareholders of record as of January 3, 2007. Shares representing this dividend were issued on February 1, 2007. On December 8, 2005, a five percent (5%) stock dividend was declared to shareholders of record as of January 3, 2006. Shares representing this dividend were issued on February 1, 2006. There can be no assurance that the Company will continue to be able to declare dividends on the Common Stock.
DETERMINATION OF OFFERING PRICE
Shares are being offered at $20.00 per share based on the historical practice of the Company of setting a price which is affordable. It is not based on any formulation of market value.
CAPITALIZATION
The following table sets forth our capitalization as of July 31, 2008 and as adjusted as of that date to reflect the sale of the 1,000,000 shares of Common Stock offered in the current offering under the Common Stock Purchase Plan and our receipt of the net proceeds, assuming that all shares offered will be purchased. Based on historical practice, the Company believes that less than all shares will be purchased, in which event the net proceeds will be less. Because we are unable to estimate the number of shares that will be purchased under the installment method, the "As Adjusted" column assumes that no shares will be purchased
under the installment method
. It also assumes that all of the net proceeds will be applied initially to the repayment of short-term borrowings. However, based on historical practice, the Company believes that a significant number of shares may actually be purchased under the installment method, in which event the receipt of the proceeds will be deferred. Eligible participants should read this table in conjunction with our consolidated financial statements, the related notes and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which are contained in our Annual Report on Form 10-K for the year ended December 31, 2007, and our Quarterly Reports for the quarters ended March 31, 2008 and June 30, 2008, each of which is incorporated herein by reference.
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As of July 31, 2008,
As
Actual
Adjusted
SHORT-TERM DEBT:
(Dollars in thousands)
Short-term borrowings (1)
$
28,418
8,518
Current portion of long-term debt
32,338
32,338
LONG-TERM DEBT:
7.49% senior note, unsecured, due in annual
$
28,571
28,571
installments of $14,286 beginning in July 2005 through
July 2011
Variable rate lease arrangement, secured by facilities,
27,715
27,715
due December 2014
6.59% senior note, unsecured, due in semiannual
30,000
30,000
installments of $3,750 beginning in October 2003
through April 2013
7.36% senior note, unsecured, due in semiannual
12,379
12,379
installments of $3,095 beginning in May 2001 through
November 2010 with final payment of $3,094 due in
May 2011
6.65% senior note, unsecured, due in annual
14,546
14,546
installments of $3,636 beginning in June 2003 through
June 2013
5.87% note, secured by facility, due in monthly
3,191
3,191
installments of $32 through June 2010, with final
payment of $3,167 due in July 2010
6.48% capital lease, due in monthly installments of $47
1,263
1,263
beginning in January 2007 through December 2011
Fixed and variable rate mortgages, secured by facilities,
129
129
various maturities
CAPITAL STOCK:
Common Stock, $1 par value, $20 stated value –
$
160,027
$
180,027
authorized 15,000,000 shares; outstanding 8,001,372
shares, actual; outstanding 9,001,372, as adjusted (2)
Advance payments on subscriptions to common stock
1,064
1,064
Retained Earnings
435,640
435,540
Accumulated Other Comprehensive Income (Loss)
(62,782
)
(62,782
)
(1)
The borrowings under short-term credit agreements consist of issuances of commercial
paper and borrowings under bank lines of credit. We have a $200,000 Five-Year Credit
Agreement with a group of banks at an interest rate based on the London Interbank
Offered Rate (LIBOR) that currently expires in May 2012. There were no borrowings
outstanding under the Five-Year Credit Agreement at July 31, 2008.
The Company also has a $215,000 accounts receivable securitization program that will
expire on October 13, 2009. The securitization program provides for the sale of certain
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of the Company's trade receivables on a revolving basis to Graybar Commerce
Corporation (GCC), a wholly owned, bankruptcy-remote, special purpose subsidiary.
GCC sells an undivided interest in the receivables to an unrelated multi-seller commercial
paper conduit. The Company accounts for the securitization as an on-balance sheet
financing arrangement because the Company has maintained effective control of the
accounts receivable through a call option that gives GCC the unilateral right to
repurchase the undivided interests. Accordingly, the accounts receivable and related debt
are included in the Company's consolidated balance sheets. GCC has granted a security
interest in its trade receivables to the commercial paper conduit. There were no
borrowings outstanding under the securitization program at July 31, 2008.
(2)
Does not include 304,299 shares of Common Stock acquired and held in the Company's
treasury. Approximately 80% of the shares of Common Stock outstanding are held under
the Voting Trust Agreement.
DESCRIPTION OF COMMON STOCK
Graybar's authorized capitalization consists of 10,000,000 shares of Delegated Authority Preferred Stock and 15,000,000 shares of Common Stock. The stated value of the Common Stock is $20.00 per share. As of June 30, 2008 there were 1,339 holders of Common Stock and 5,017 holders of Voting Trust Interests for Common Stock. No preferred stock is outstanding.
Dividend Rights
Dividends may be paid upon the Common Stock at the discretion of the Board of Directors.
Voting Rights
Except as otherwise required by law, holders of Common Stock have the exclusive right to vote for the election of directors and for all other purposes requiring the approval or consent of shareholders. As a general matter, the Voting Trustees as a group possess the voting power associated with the shares held of record under the Voting Trust Agreement, and such voting power is sufficient to assure the election of the persons nominated by the Board of Directors for election as directors and, except as provided otherwise in the Voting Trust Agreement, approval of any other matters brought before a meeting of shareholders. As of June 30, 2008, approximately 80% of the issued and outstanding shares of Common Stock are held by the Voting Trustees under the Voting Trust Agreement. The powers of the Voting Trustees to exercise the voting powers of the Common Stock are described under the heading "Summary of Certain Provisions of the Voting Trust Agreement."
Liquidation Rights
In the event of voluntary or involuntary dissolution, liquidation or winding-up of Graybar, after payment in full of the amounts required to be paid to any holders of preferred stock, the holders of Common Stock are entitled to share ratably in all remaining assets.
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In such event, if any preferred stock is outstanding, the holders would be entitled to receive the par value of the shares plus an amount equal to any dividends accrued thereon to the extent earned but unpaid to the date of payment.
Miscellaneous
The Common Stock has no conversion, preemptive or subscription rights and there are no sinking fund or redemption provisions applicable
to the Common Stock
. The outstanding Common Stock is, and the shares to be sold under the Common Stock Purchase Plan will be, when issued in accordance with the Plan, validly issued, fully paid and non-assessable. Under the New York Business Corporation Law, the ten largest holders of Common Stock are liable under specified conditions for debts, wages or salaries due and not paid by us to any laborers, servants or employees, other than contractors, for services performed by them for us.
Repurchase Option
The following is a brief summary of the provisions of our Restated Certificate of Incorporation that place restrictions and limitations on the holding and sale, transfer, pledge or other disposition of Common Stock. These provisions also apply to Voting Trust Interests. Each of the shares of Common Stock or Voting Trust Interests were acquired for $20.00 per share.
No holder of Common Stock may sell, transfer or otherwise dispose of any shares without first offering us the option to purchase those shares within 30 days after the offer for $20.00 per share, with appropriate adjustment for regular dividends, if any, declared and paid at the end of the quarter in which the offer is made.
We also have the option to purchase for $20.00 per share, adjusted for dividends, the Common Stock of any shareholder who ceases to be an employee for any reason other than death or retirement on a pension (except a deferred pension) at any time after termination of employment until 30 days after the holder makes an offer to sell the Common Stock to us. In the event of the death of any shareholder, we have the option to purchase all or any part of his or her Common Stock from the estate for $20.00 per share, adjusted for dividends, at any time after the expiration of one year from the date of death until 30 days after the Common Stock has been offered to us. If the estate offers to sell the shares to us within the one-year period, our option terminates 30 days from the offer. In the past, we have always exercised these options and we expect to continue to do so.
No shareholder may hypothecate or pledge Common Stock, except under an agreement of hypothecation or pledge containing provisions permitting us to exercise the repurchase options referred to above and to redeem the pledge of shares in the event of default upon payment of the lesser of the amount due on the pledge or the purchase price, with suitable provisions for redemption by the shareholder or payment of any balance to which the shareholder may be entitled. No shareholder may transfer or place any shares of Common Stock, or Voting Trust Interests representing shares, into a trust, except that we will, under certain circumstances, permit a transfer or placement upon receipt of a written agreement from the trustees and the shareholder in form satisfactory to us providing that the shareholder retains the right to direct the action to be taken by the trustees on any matter submitted to a vote by holders of Common Stock or Voting
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Trust Interests and permitting us to exercise the options referred to above and to redeem the shares, or Voting Trust Interests representing shares, if any party other than the holder or the trustee shall claim or establish ownership of or interest in the shares, or Voting Trust Interests representing shares, and requiring the trustees to comply with all provisions of our Restated Certificate of Incorporation relating to the sale, transfer or other disposition of shares.
The repurchase option described above could have the effect of delaying or preventing a change of control. See "Risk Factors," beginning on page 7. In addition, any issuance of Delegated Authority Preferred Stock, with voting rights, may affect the outcome of any action requiring shareholder approval. See "Description of Delegated Authority Preferred Stock,"
below
.
DESCRIPTION OF DELEGATED AUTHORITY PREFERRED STOCK
The Restated Certificate of Incorporation authorizes 10,000,000 shares of a class of "Delegated Authority" Preferred Stock (the "Delegated Authority Preferred"). The term "Delegated Authority" refers to preferred stock, the creation and issuance of which has been authorized in advance by the shareholders and the terms, rights and limitations of which are determined by the Board of Directors of the Company upon issuance.
The Board of Directors is empowered to authorize and issue shares of Delegated Authority Preferred from time to time in one or more series. Subject to the other provisions of the Company's Restated Certificate of Incorporation and any limitation prescribed by law, the Board of Directors is expressly authorized, at its discretion, to adopt resolutions to issue shares of Delegated Authority Preferred, to fix the number of shares and to change the number of shares constituting any series and to provide for or change the designations, relative rights, preferences and limitations thereof, including in each case voting rights, dividend rights (and whether the dividends are cumulative), dividend rates, terms of redemption (including sinking fund provisions), redemption prices, conversion rights (including convertibility into Common Stock) and liquidation preferences of the shares constituting any series of the Delegated Authority Preferred, all without any further action or vote by the shareholders. The Board of Directors will be required to make any determination to issue shares of Delegated Authority Preferred based on its judgment at the time as to the best interests of the Company and its shareholders. The Executive Committee of the Board will have the authority to take any action the complete Board of Directors may take.
The Company currently has no arrangements, understandings, agreements or commitments with respect to the issuance of any shares of Delegated Authority Preferred, and the Company may never issue any Delegated Authority Preferred.
If the resolutions adopted by the Board of Directors at the time of issuance so provide, the holders of Delegated Authority Preferred may have voting rights and shares of Delegated Authority Preferred may not be subject to the provisions of the Restated Certificate of Incorporation providing that holders of Common Stock may not sell, transfer or otherwise dispose of shares without offering the Company the option to purchase them.
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The Delegated Authority Preferred is intended to provide the Company with increased flexibility in meeting future financial and operating requirements because it will be available for issuance from time to time for any proper corporate purpose with such features as determined by the Board of Directors or the Executive Committee of the Board at that time. Such purposes would include, if market conditions warrant, issuance of Delegated Authority Preferred for cash to obtain equity capital for use by the Company.
It should be noted that any issuance of Delegated Authority Preferred with voting rights might, under certain circumstances, have the effect of delaying or preventing a change in control of the Company by increasing the number of outstanding shares entitled to vote and by increasing the number of votes required to approve a change in control of the Company. Also, shares of voting or convertible preferred stock, or rights to purchase such shares, could be issued to render more difficult or discourage an attempt to obtain control of the Company by means of a tender offer, proxy contest, merger or otherwise. The ability of the Board of Directors to issue such additional shares of Delegated Authority Preferred, with the rights and preferences it deems advisable, could discourage an attempt by a party to acquire control of the Company by tender offer or other means. However, the creation of the Delegated Authority Preferred was not intended to be an anti-takeover measure and the Company is not aware of any third party plans to attempt to gain control of the Company.
The actual effect of the issuance of shares of Delegated Authority Preferred upon the rights of holders of the Common Stock cannot be determined until the Board of Directors or the Executive Committee of the Board establishes the specific rights of the holders of such Delegated Authority Preferred. However, the effects might include, among other things, restricting priority of dividends on the Common Stock, diluting the voting power of the Common Stock, reducing the book value of the Common Stock, or impairing the liquidation rights of the Common Stock. Holders of Common Stock will not have preemptive rights with respect to any issuance of the Delegated Authority Preferred.
INFORMATION CONCERNING THE VOTING TRUSTEES
As of June 30, 2008, approximately 80% of the issued and outstanding shares of Common Stock are held of record in the names of D. E. DeSousa, L. R. Giglio, T. S. Gurganous, R. D. Offenbacher and R. A. Reynolds, Jr., as Voting Trustees under the Voting Trust Agreement. As a result, the Voting Trustees share approximately 80% of the voting power with respect to election of directors and certain other matters requiring shareholder approval or consent. Shares of Common Stock held of record by the Voting Trustees are held for the benefit of holders of Voting Trust Interests issued by the Voting Trustees.
The Voting Trust Agreement will terminate on March 15, 2017 unless sooner terminated as provided therein.
The names, positions with the Company and business addresses of the Voting Trustees are as follows:
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Name and Position
Business Address
R. A. Reynolds, Jr., Director and Chairman of the Board,
34 North Meramec Avenue
President and Chief Executive Officer
St. Louis, MO 63105
D. E. DeSousa, Director and Senior Vice President-
34 North Meramec Avenue
U.S. Business
St. Louis, MO 63105
L. R. Giglio, Director and Senior Vice President-Operations
34 North Meramec Avenue
St. Louis, MO 63105
T. S. Gurganous, Director and District Vice President
34 North Meramec Avenue
St. Louis, MO 63105
R. D. Offenbacher, Director and Senior Vice President-
34 North Meramec Avenue
Sales and Marketing, Electrical
St. Louis, MO 63105
The sole occupation of each Voting Trustee is his employment with the Company. All communications to the Voting Trustees should be addressed to the Voting Trustees, c/o Graybar Electric Company, Inc., P.O. Box 7231, St. Louis, Missouri 63177.
As of July 31, 2008, each of the Voting Trustees owned Voting Trust Interests of record and beneficially as follows:
Percent of
Amount
Class
Name
Owned (a)
Owned
R. A. Reynolds, Jr.
22,558
.282
D. E. DeSousa
6,797
.085
L. R. Giglio
10,236
.128
T. S. Gurganous
11,173
.140
R. D. Offenbacher
13,666
.171
(a)
The number of shares of Common Stock to which the Voting Trust Interests relate.
No person owns of record and beneficially shares of Common Stock or Voting Trust
Interests constituting more than 1%
of the outstanding Common Stock.
As of July 31, 2008, all officers and directors as a group owned beneficially, directly and
indirectly, Voting Trust Interests representing
133,466 shares of Common Stock (representing
approximately 2% of the outstanding shares).
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We anticipate that each of the Voting Trustees will acquire a beneficial interest in all or a part of the Common Stock that he will be entitled to purchase under the Plan. The approximate number of shares that each of the Voting Trustees will be entitled to purchase is as follows:
Name
Number of Shares
R. A. Reynolds, Jr.
2,991
D. E. DeSousa
1,377
L. R. Giglio
1,218
T. S. Gurganous
1,029
R. D. Offenbacher
1,323
SUMMARY OF CERTAIN PROVISIONS OF THE VOTING TRUST AGREEMENT
The statements under this heading relating to the Voting Trust Agreement are summaries and may not contain all the information that may be important to you and are qualified in their entirety by reference to the Voting Trust Agreement. Copies of the Voting Trust Agreement are on file at our principal executive office and with the SEC in Washington, D.C. See "Where You Can Find More Information." All section references are to the 2007 Voting Trust Agreement.
General
.  The Voting Trust Agreement provides for the deposit into the Voting Trust of Common Stock or, if applicable, any voting stock of the Company or a successor corporation issued in respect of the Common Stock in connection with a recapitalization or reclassification of the Common Stock or the merger or consolidation of the Company into another corporation. Common Stock deposited in the Voting Trust will be registered in the name of the Voting Trustees in their capacities as voting trustees. Voting Trust Interests issued by the Voting Trustees will be uncertificated and evidenced by the book-entry system maintained by the Voting Trustees, unless written notice is sent to the Voting Trustees requesting that the Voting Trustees issue one or more voting trust certificates representing the Voting Trust Interests registered in the name of such Participating Shareholder. You may elect to deposit shares of Common Stock into the Voting Trust at any time prior to its expiration or termination. Common Stock deposited in the Voting Trust may not be withdrawn by the beneficial owner before the expiration or earlier termination of the Voting Trust Agreement. The Voting Trustees do not have any power to sell, transfer or dispose of shares deposited with them other than to return them to Participating Shareholders in accordance with the Voting Trust Agreement.
A voting trust was originally established in 1928 as a security device in connection with the purchase of the wholesale supply business of Western Electric Company, Incorporated. The voting trust arrangement has been continued since its inception by the adoption every ten years, as permitted by applicable law, of successive voting trust agreements by substantially all of the Company's shareholders. In connection with the adoption of each new voting trust agreement, management has recommended to shareholders that the voting trust arrangement be continued because it believed that the operation of the business had been successfully conducted under this arrangement and that it was in the best interests of the Company and its shareholders.
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The Voting Trust Agreement will expire March 15, 2017 unless extended or sooner terminated. The Voting Trust Agreement may be terminated at any time by a majority of the Voting Trustees or by the holders of Voting Trust Interests representing at least 75% of the Common Stock deposited. At any time within six months before the expiration of the Voting Trust Agreement, holders of Voting Trust Interests may, by agreement in writing with the Voting Trustees and the Company, extend the duration of the Voting Trust Agreement for an additional period not exceeding ten years. Any extension will be binding only upon holders of Voting Trust Interests who give their consent. (Section 6.03)
The Voting Trust Agreement may be amended or modified at any time by a majority of the Voting Trustees, the Company and the holders of Voting Trust Interests representing at least 75% of the number of shares of Common Stock deposited under the Voting Trust Agreement. Any amendment or modification could affect the rights of the then existing holders of Voting Trust Interests. (Section 6.02)
The Voting Trust Agreement is governed by the laws of New York. New York law requires that the Voting Trustees keep available for inspection by the holders of Voting Trust Interests correct and complete books and records of account relating to the 2007 Voting Trust and a record of the names and addresses of the holders of Voting Trust Interests and the number of shares of Graybar Common Stock represented thereby and the dates that they acquired such shares. These books and records and a copy of the 2007 Voting Trust Agreement are available for inspection by any holder of Voting Trust Interests or shares of Graybar Common Stock at the principal executive offices of the Company located at 34 North Meramec Avenue, St. Louis, Missouri 63105. Holders of Voting Trust Interests have the same rights to inspect Graybar's books and records under New York law
as
holders of Common Stock . (Section 6.07)
Voting Trustees
.  Voting Trustees must be active, full-time employees of the Company. Any Voting Trustee who for any cause, including retirement on a pension, ceases to be an active, full-time employee of the Company automatically ceases to be a Voting Trustee. Voting Trustees may at any time resign and may be removed by holders of Voting Trust Interests representing at least 66 2/3% of the number of shares of Common Stock deposited under the Voting Trust Agreement. (Section 5.01)
Vacancies in the office of Voting Trustee will be filled by a majority of the remaining Voting Trustees, unless there shall be less than three Voting Trustees in office, in which event the vacancies shall be filled by the Company's directors. No Voting Trustee who has been previously removed from office may be redesignated or elected a Voting Trustee without the approval of holders of Voting Trust Interests representing at least 66 2/3% of the Common Stock deposited under the Voting Trust Agreement. (Section 5.01)
The Voting Trust Agreement provides that the Voting Trustees shall exercise their best judgment in securing the election of suitable directors and in voting on or consenting to other matters. Voting Trustees may be, and may vote for themselves as, Company directors. No person is disqualified from acting as a Voting Trustee by reason of any personal interest in the Company and a Voting Trustee may deal with the Company as fully as if he were not a Voting Trustee. The Voting Trustees may execute any of the trusts or powers or perform any of the duties under the Voting Trust Agreement either directly or by or through agents or attorneys
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appointed by them. Any action required or permitted to be taken by the Voting Trustees may be taken by vote or written consent of a majority of the Voting Trustees. (Sections 5.02 and 5.03)
Voting Trustees and their agents and attorneys are not liable to holders of Voting Trust Interests or the Company except for their individual willful misconduct. The Company has agreed to indemnify the Voting Trustees and their agents or attorneys for, and to hold them harmless against, any tax, loss, liability or expense incurred for any reason, except their own individual willful misconduct, arising out of or in connection with the acceptance or administration of the Voting Trust and the performance of their duties and obligations and the exercise of their rights and powers under the Voting Trust. The Voting Trustees have been informed that, in the opinion of the Securities and Exchange Commission, indemnification for liabilities arising under the Securities Act is against public policy and is unenforceable. Graybar has also agreed to pay reasonable expenses incurred by the Voting Trustees in connection with the performance of their duties and obligations under the Voting Trust Agreement.
In consideration of the agreement of the Voting Trustees to serve in that capacity for the benefit of the holders of Voting Trust Interests, the Voting Trust Agreement provides that, in the event the Company fails or is unable to provide indemnification or pay expenses, the holders of Voting Trust Interests will do so. In that event, the responsibility for indemnification will be allocated among them ratably in proportion to the Common Stock represented by their Voting Trust Interests. The obligations of the Company and the holders of Voting Trust Interests are payable from any funds or other assets held by the Voting Trustees for their respective accounts. (Sections 5.03 and 5.04)
No bond is required to be posted by the Voting Trustees with respect to their performance under the Voting Trust Agreement.
Voting
.  The Voting Trustees are entitled in their discretion and using their best judgment to vote on or consent to the election of directors and, except as described below, the ratification, approval or disapproval of any other action or proposed action requiring a shareholder vote. The Voting Trustees, each of whom is currently a Company director, are specifically authorized to vote for themselves as directors under the terms of the Voting Trust Agreement. The Voting Trustees may not, without the consent of the holders of Voting Trust Interests representing at least 75% of the Common Stock then deposited under the Voting Trust Agreement, vote on or consent to the merger or consolidation of the Company into another corporation, the sale of all or substantially all of the Company's assets or the Company's liquidation and dissolution. (Sections 4.02 and 5.02)
Dividends
.  All dividends payable with respect to Common Stock deposited under the Voting Trust Agreement are payable to the Voting Trustees as the owners of record of these shares. The Voting Trustees will retain, under the terms of the Voting Trust Agreement, all shares of Common Stock received as a stock dividend. The Voting Trustees will make the appropriate book-entry in the case of uncertificated Voting Trust Interests and, upon request, deliver voting trust certificates representing Voting Trust Interests in the shares received as a dividend in a Participating Shareholder's account. The Voting Trustees will pay or cause to be paid to the holders of Voting Trust Interests an amount equal to any cash dividends received and any distribution made to holders of Common Stock other than in cash or Common Stock or as a
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result of recapitalization or reclassification of the Common Stock or a reorganization of the Company. (Section 4.03)
Subscription Offers and Employee Plans
.  Common Stock subscribed for on behalf of, or acquired by, a holder of a Voting Trust Interest pursuant to a subscription offer or employee plan or otherwise must be deposited with the Voting Trustees and will be held by them under the terms of the Voting Trust Agreement. The Voting Trustees will make the appropriate book-entry in the case of uncertificated Voting Trust Interests and, upon request, deliver additional voting trust certificates representing Voting Trust Interests to the holders of Voting Trust Interests on whose behalf Common Stock was so deposited. (Sections 4.04 and 4.05)
Recapitalization or Reclassification of Common Stock
.  In the event of a recapitalization or reclassification of the Common Stock, the Voting Trustees will hold, under the terms of the Voting Trust Agreement, shares of voting stock issued in respect of Common Stock deposited under the Voting Trust Agreement. In this case, the appropriate book entries will be made in the case of uncertificated Voting Trust Interests and the existing voting trust certificates may remain outstanding and continue to represent the Voting Trust Interests or the Voting Trustees may substitute new voting trust certificates in appropriate form. (Section 4.06)
Reorganization of the Company
.  Depending on the terms of any agreement under which the Company may be merged or consolidated into another corporation, the Voting Trustees either will hold, under the terms of the Voting Trust Agreement, any shares of voting stock of the successor corporation issued in respect of the Common Stock deposited under the Voting Trust Agreement (in which case the appropriate book entries will be made in the case of uncertificated Voting Trust Interests and the existing voting trust certificates may remain outstanding and continue to represent the Voting Trust Interests or the Voting Trustees may substitute new voting trust certificates in appropriate form), or will distribute those shares to the holders of Voting Trust Interests based on the Common Stock represented by their Voting Trust Interests. In any event, any other consideration received as a result of a reorganization will be distributed ratably to the holders of Voting Trust Interests. (Section 4.08)
Dissolution of the Company
.  In the event of the dissolution and liquidation of the Company, the Voting Trustees will distribute any money, securities, rights or property received by them as the record owners of Common Stock ratably to the holders of Voting Trust Interests. (Section 4.07)
Restrictions on Transfer, and Right of the Company to Repurchase Voting Trust Interests Under Certain Circumstances
.  The Voting Trust Agreement provides that Voting Trust Interests issued under the Voting Trust Agreement are held by each holder under the same terms and conditions upon which Common Stock is held under the provisions of the Company's
Restated
Certificate of Incorporation. It further provides that the Voting Trustees do not need to recognize any claim of a holder of a Voting Trust Interest who has obtained such interest in contravention of any of the provisions of the Company's
Restated
Certificate of Incorporation in effect at the time. See "Description of Common Stock -- Repurchase Option." (Sections 3.01 and 4.09)
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LEGAL MATTERS
Matters of New York law relating to the validity of the Common Stock and the Voting Trust Interests have been passed upon by Bryan Cave LLP, counsel for the Company and the Voting Trustees.
EXPERTS
The consolidated financial statements of Graybar Electric Company, Inc. included in Graybar Electric Company, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2007, have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their report thereon, included therein, and incorporated herein by reference. Such consolidated financial statements are incorporated herein by reference in reliance upon such report given on the authority of such firm as experts in accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
Graybar and the Voting Trustees file reports, information statements and other information with the SEC. You may read and copy this information at the SEC's Public Reference Room, 100 F Street, N.E., Washington, D.C. 20549-0213. Please call the SEC at 1-800-SEC-0330 for further information regarding the Public Reference Room. The SEC also maintains a website that contains reports, information statements and other information about issuers, including Graybar and the Voting Trust, who file electronically with the SEC. The address of that site is
www.sec.gov
. Reports and other information filed by Graybar and the Voting Trustees may also be accessed at our website,
www.graybar.com
, under the SEC Filings section of the "About Us" page. Except as expressly provided herein, information on our website is not part of this Prospectus. Requests for hard copies of the reports and other information filed by Graybar and the Voting Trustees should be directed to Matthew W. Geekie, Esq., Senior Vice President, Secretary and General Counsel, Graybar Electric Company, Inc., P.O. Box 7231, St. Louis, Missouri 63177, telephone number (314) 573-9200 and e-mail address
matthew.geekie@graybar.com
. Graybar intends to furnish copies of its Annual Report to Shareholders to holders of Voting Trust Interests as well as to shareholders of record.
INCORPORATION BY REFERENCE
The SEC allows us to "incorporate by reference" information into this Prospectus. This means that we can disclose important information to you by referring you to another document that we previously filed with the SEC. The information incorporated by reference is considered to be a part of this Prospectus, except for any information that is superseded or updated by information that is included directly in this Prospectus.
This Prospectus incorporates by reference the documents listed below that the Company has previously filed with the SEC. They contain important information about the Company and its financial condition.
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SEC Filing
Filing Date
Period
Annual Report on Form 10-K
Filed March 12, 2008
Year Ended December 31, 2007
Amendment to Annual Report on
Filed August 7, 2008
Form 10-K/A
Quarterly Report on Form 10-Q
Filed May 9, 2008
Quarter Ended March 31, 2008
Amendment to Quarterly Report on
Filed August 7, 2008
Form 10-Q/A
Quarterly Report on Form 10-Q
Filed August 7, 2008
Quarter Ended June 30, 2008
Current Report on Form 8-K
Filed March 14, 2008
Current Report on Form 8-K
Filed August 1, 2008
Information Statement
Filed April 29, 2008
The Annual Report on Form 10-K
for the year ended December 31, 2007
filed with the SEC by the Voting Trustees on March 12, 2008 is also incorporated by reference.
You may obtain any of the documents incorporated by reference in this Prospectus through the Company or from the SEC through the SEC's website at the address provided above. Documents incorporated by reference are available on Graybar's website at
http://www.graybar.com/
or in hard copy, upon written or oral request, from the Company, without charge, excluding any exhibits to those documents unless the exhibit is specifically incorporated by reference into those documents. Certain states require that the offering be made through a dealer registered in that state. The offering will be made to residents of those states through Huntleigh Securities Corporation. Huntleigh Securities Corporation provides financial advice to Graybar on a retainer basis. If you were directed to this Prospectus, or if this Prospectus was provided to you by, Huntleigh Securities Corporation, you should contact the designated representative of Huntleigh Securities Corporation named in the cover letter that accompanied this Prospectus if you have questions. Requests for hard copies should be directed to Matthew W. Geekie, Esq., Senior Vice President, Secretary and General Counsel, Graybar Electric Company, Inc., P.O. Box 7231, St. Louis, Missouri 63177, telephone number (314) 573-9200 and e-mail address matthew.geekie@graybar.com.
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EXHIBIT A
THREE-YEAR COMMON STOCK PURCHASE PLAN
DATED AS OF JUNE 14, 2007
RELATING TO UP TO 2,000,000 SHARES OF COMMON STOCK OF
GRAYBAR ELECTRIC COMPANY, INC.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1.     General; Employees entitled to subscribe.
1.1.     This Plan provides for offerings in each of the years 2007, 2008 and 2009 (each, an "Applicable Year") to eligible employees, including officers, of Graybar Electric Company, Inc. (the "Company"), and its wholly owned subsidiary, Commonwealth Controls Corporation, and retirees who were active, full-time employees of the Company or Commonwealth Controls Corporation on March 31 of the Applicable Year, of the right to subscribe for shares of the Company's common stock, par value $1.00 per share with a stated value of $20.00 per share (the "Common Stock"), at a price of $20.00 per share. The aggregate number of shares of Common Stock to be offered in each year and the terms of such offering shall be determined by the Board of Directors. The maximum number of shares of Common Stock that may be issued pursuant to this Plan is 2,000,000. This Plan shall remain in effect until January 31, 2010 unless terminated prior thereto by the Board of Directors of the Company, and thereafter insofar as the provisions relate to shares of Common Stock subscribed for under the Payroll Deduction Method as described in Section 4.2.
1.2.     Each person who on September 30 of the year in which an offering is conducted (the "Applicable Year") is (a) an active, full-time employee of the Company or Commonwealth Controls Corporation continuously employed by the Company or Commonwealth Controls Corporation since March 31 of the Applicable Year or (b) a person who on March 31 of the Applicable Year is an active, full-time employee of the Company or Commonwealth Controls Corporation and who retires on a pension (except a deferred pension) after March 31 and prior to October 1 of the Applicable Year (a "Qualified Retiree") will be entitled to subscribe at the price of $20.00 per share for the number of shares of the Company's Common Stock determined pursuant to Section 3. Such persons are sometimes referred to as "eligible participants" or "Qualified Retirees" and after executing a Subscription Agreement are referred to as "subscribers"; provided, however, that the term "eligible participants" shall not be deemed to include in any Applicable Year: any person (a) who receives a pension (unless he or she is an active, full-time employee on March 31 of an Applicable Year and retired on a pension (except a deferred pension) after said March 31 and prior to October 1 of the Applicable Year), (b) who is employed solely on a contract basis or who by written agreement has released all stock subscription rights, or (c) who is included in a collective bargaining unit represented by a labor organization where the agreement between the Company and the labor organization excludes such person from subscribing for Common Stock of the Company.
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2.     Period for and method of making subscription.
Any eligible participant desiring to subscribe for shares of Common Stock offered for sale under this Plan shall either sign a Subscription Agreement substantially in the form set forth herein, or otherwise approved by the Board of Directors for such purpose for an offering to be made in an Applicable Year, and file it, on or before the date specified for each Applicable Year, with the Secretary at the executive offices of the Company, 34 North Meramec Avenue, Clayton, Missouri 63105 or complete and submit an on-line subscription in the manner set forth at
http://www.planenrollments.com/gbe
. No subscription shall be effective and binding unless and until accepted by the Company at its executive offices. No subscription will be accepted after the close of business on the date specified in the applicable Subscription Agreement.
3.     Determination of number of shares for which an eligible participant is entitled to subscribe.
The maximum number of shares for which an eligible participant may subscribe shall be determined as hereinafter provided:
3.1.     The Subscription Right of each eligible participant, subject to increase as provided in Section 3.2 and reduction as provided in Section 3.3, shall be determined by dividing the annual salary rate of each eligible participant in effect on March 31 of the Applicable Year by a dollar amount determined by the Board of Directors for each Applicable Year (or such other dollar amount or other ratio as may hereafter be established with respect to an offering of shares for an Applicable Year by the Board of Directors). Fractional shares resulting from this computation shall be disregarded.
3.2.     The number of shares determined in accordance with Section 3.1 shall, in the case of eligible participants who on March 31 of the Applicable Year were in the salary classifications listed below, be multiplied as follows (or using such other multiple as hereafter may be established with respect to an offering of shares for an Applicable Year by the Board of Directors):
3.2.1.     Eligible Company participants in Executive classifications EX 1 through EX 5 -- 3.00 times;
3.2.2.     Eligible Company participants in Grades 17 through 20 and Band M1 --2.50 times;
3.2.3.     Eligible Company participants in Grades 15 and 16 and Band M2 -- 2.25 times;
3.2.4.     Eligible Company participants in Grades P and Q -- 1.90 times;
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3.2.5.     Eligible Company participants in Grades N and O -- 1.85 times;
3.2.6.     Eligible Company participants in Grade 14 or below who are covered either by the Management Incentive Plan or the
Sales Incentive Plan and Band M3 -- 1.75 times;
3.2.7.     Eligible Company participants in Grades J, K, L and M -- 1.50 times;
3.2.8.     All other eligible Company participants -- 1.25 times; and
3.2.9.     Eligible participants who are employees of Commonwealth Controls Corporation -- As determined by the Board of Directors
for each participant using the closest comparable salary classification then in effect at Commonwealth Controls Corporation.
Fractional shares resulting from the above computations shall be disregarded.
3.3.     In the unlikely event the aggregate number of shares subscribed for by all eligible participants in an offering for an Applicable Year were to exceed the number of shares that the Board of Directors determines shall be offered in such Applicable Year, the number of shares that each eligible participant would be entitled to purchase shall be reduced to a number determined by multiplying the number of shares for which such eligible participant has subscribed (but in no event more than the number to which such employee is entitled to subscribe under this Section) by a fraction, the numerator of which is the number of shares being offered and the denominator of which is the aggregate number of shares subscribed for by all eligible participants. Fractional shares resulting from such computation shall be disregarded.
4.     Payments for issuance of stock.
Payments for shares subscribed for may be made pursuant to either of the following methods (or such other method as hereafter may be established by the Board of Directors with respect to any offering):
4.1.     Full Payment: Payment in full for the shares subscribed for on or before the date in January of the year following the Applicable Year set by the Board of Directors, in which case the shares paid for will be issued as of that date.
4.2.     Payroll Deduction: Payments in equal installments made at each of the regular pay periods commencing with the second pay period in January of the year following the Applicable Year and ending with the last pay period in November of that year. The Company shall issue shares no later than the tenth day of March, June, September and December of the year following the Applicable Year to the Voting Trustees or Non-Participating Shareholders (as such terms are defined in Section 5.2), whichever is appropriate, for such number of full shares of Common Stock as have been fully paid for prior to such issue date.
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4.2.1.     Payments shall be made, in the case of a subscriber on the Company's or Commonwealth Controls Corporation's payroll, through payroll
deductions authorized by the subscriber and, in the case of a subscriber who is no longer on the Company's or Commonwealth Controls Corporation's
payroll but whose subscription has not been cancelled in accordance with Section 5.4, through monthly payments made directly by such person to the
Treasurer of the Company on or before the last day of each month. Except as provided in Section 5.4, subscriptions made under the Payroll Deduction
Method and the obligations of subscribers to make full payment for all shares subscribed for (including any authorization to the Company or Commonwealth
Controls Corporation to make payroll deductions) shall be irrevocable.
4.2.2. No interest shall be paid on amounts deducted from a participant's salary or paid directly to the Treasurer.
4.2.3. A subscriber, at his or her option exercised at any time, may pay the balance due on all or any portion of the number of shares subscribed for,
and upon such payment, shares will be issued for which payment is so made.
5.     Conditions of subscription.
Each subscription for shares of Common Stock hereunder is expressly subject to, among other things, the following terms, and every subscriber shall agree to all of them by executing a Subscription Agreement:
5.1.
Right to receive stock not transferable.
No subscriber may sell, pledge or in any manner alienate or suffer to be alienated his or her right to purchase Common Stock under the Plan, including the right to receive Voting Trust Interests or shares of Common Stock. A violation of this provision shall constitute a withdrawal by the subscriber from his or her Subscription Agreement, in which event the only right of the subscriber or his or her assignee shall be to have the Company return to the person entitled thereto the total amount paid under said Subscription Agreement. Such return shall operate as a cancellation and satisfaction of all rights under the Subscription Agreement.
5.2.
Issuance of stock certificates and Voting Trust Interests.
Shares or Voting Trust Interests representing the shares subscribed for and purchased pursuant to this Plan by subscribers who are or who, upon executing a Subscription Agreement, become parties to the Voting Trust Agreement (the "Voting Trust Agreement") dated as of March 16, 2007, relating to shares of Common Stock of the Company, shall be issued to, and deposited by the Company with, the Voting Trustees thereunder (the "Voting Trustees") in accordance with the provisions of Section 4.05 of the Voting Trust Agreement. The Voting Trustees will record ownership of Voting Trust Interests for such subscribers representing the number of shares subscribed for and purchased by them and deposited in the Voting Trust. Shares subscribed for and purchased pursuant to this Plan by subscribers who are shareholders prior to such subscription and who are not parties to the Voting Trust Agreement ("Non-
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Participating Shareholders") shall be recorded in a book-entry system maintained by the corporation and shall be uncertificated unless written request is made to the Secretary of the corporation, in which case, certificates shall be issued and delivered directly to such subscribers.
5.3.
Subscribers bound by provisions in Restated Certificate of Incorporation, as amended.
All shares of Common Stock subscribed for shall be issued and held subject to all the terms, provisions, restrictions and qualifications set forth in the Restated Certificate of Incorporation, as amended, of the Company, which provides, among other things, that the Company has the option to repurchase outstanding shares of Common Stock at the price at which such shares were issued, with appropriate adjustment for current dividends, in the event any shareholder shall desire to sell, transfer or otherwise dispose of any of his or her shares, or in the event of his or her death (in which case the option is exercisable beginning one year after the date of death) or in the event of termination of his or her employment other than by retirement on a pension. Eligibility for or entitlement to a deferred pension under the Graybar Electric Company, Inc. Pension Plan does not constitute a retirement on a pension for purposes of this Section 5.3 or for purposes of the Restated Certificate of Incorporation. The Voting Trust Interests issued and to be issued under the Voting Trust Agreement provide, in substance, that every Voting Trust Interest is issued and held upon and subject to the same terms and conditions upon which shares of Common Stock are issued and held. Each subscriber, by executing a Subscription Agreement, specifically agrees to be bound by all provisions of this Section 5.3 and agrees that all Common Stock or Voting Trust Interests owned by such subscriber shall be subject to such provisions.
5.4.
Cancellation of subscription on termination of employment.
In the event of the death of a subscriber or the termination of his or her employment other than by retirement on a pension (except a deferred pension) or the subscriber receives a "hardship" withdrawal from Account K under the Company's Profit Sharing and Savings Plan before any or all of the shares of Common Stock subscribed for are issued, his or her subscription shall be cancelled as to shares not then issued, and the subscriber or the subscriber's estate shall be entitled to receive the total amount of the purchase price, if any, then held by the Company for unissued shares under this Plan, without interest. Payment of such amount by the Company shall operate as a cancellation and satisfaction of all rights under his or her Subscription Agreement. Refund of any balance due employees who terminate service or make a hardship withdrawal shall be made in the quarter following termination. Eligibility for or entitlement to a deferred pension under the Graybar Electric Company, Inc. Pension Plan does not constitute a retirement on a pension for purposes of this Section 5.4.
5.5.
Interpretation and implementation; amendment.
The determination of the Board of Directors of the Company upon any question concerning the application or interpretation of any of the provisions of this Plan or, of the Subscription Agreement or any offering conducted under this Plan shall be final, and no director shall incur any liability or obligation by reason of any error of fact or of law or of any matter or
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thing done or suffered or omitted to be done in connection with any such determination or interpretation or otherwise, except any attributable to that director's own willful misconduct. This Plan may be amended, in whole or in part, by the Board of Directors, provided, however that, any amendment to Section 1 or Section 6 shall require the consent of the Shareholders of the Company. The Executive Committee of the Board of Directors shall have the power to exercise all authority granted to the Board of Directors by the Plan and to take any action the Board of Directors may take under or with respect to the Plan.
6.     Certain corporate action not to be taken without notice.
The Company will not take any action that would result in a distribution to its shareholders of shares of Common Stock or other assets (except the payment of cash dividends on shares of Common Stock or the issuance of shares of Common Stock pursuant to installment payments made under Section 4.2) without first giving notice of such proposed action to all subscribers who elected the Payroll Deduction Method and have not then paid their subscriptions in full and granting such subscribers an opportunity within such time (not to be less than 20 days) and in such manner as the Board of Directors may determine to be reasonable, to complete their payments on all shares subscribed for by them and thereby to become shareholders entitled to the benefit of and subject to such action.
7.     Right of the Company to issue and sell additional shares of Common Stock.
Nothing in this Plan shall be construed to limit or restrict in any way the right of the Company from time to time hereafter to sell any of the shares offered pursuant to this Plan and not issued pursuant to subscriptions made hereunder or any shares that may now or hereafter be authorized or may now or hereafter be reacquired by the Company upon exercise of the repurchase option described in Section 5.3 or otherwise.
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PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13.
Other Expenses of Issuance and Distribution
.
Securities and Exchange Commission registration fee
$
786
Printing fees and communication expenses
16,000
*
Legal fees and expenses
20,000
*
Blue Sky fees and expenses
25,000
*
Accounting fees and expenses
25,000
*
Miscellaneous
13,214
*
$
100,000
* Estimated.
Item 14.     Indemnification of Directors and Officers.
Sections 721 through 726 of the New York Business Corporation Law provide as follows:
§ 721.     NONEXCLUSIVITY OF STATUTORY PROVISIONS FOR INDEMNIFICATION OF DIRECTORS AND OFFICERS.
The indemnification and advancement of expenses granted pursuant to, or provided by, this article shall not be deemed exclusive of any other rights to which a director or officer seeking indemnification or advancement of expenses may be entitled, whether contained in the certificate of incorporation or the by-laws or, when authorized by such certificate of incorporation or by-laws, (i) a resolution of shareholders, (ii) a resolution of directors, or (iii) an agreement providing for such indemnification, provided that no indemnification may be made to or on behalf of any director or officer if a judgment or other final adjudication adverse to the director or officer establishes that his acts were committed in bad faith or were the result of active and deliberate dishonesty and were material to the cause of action so adjudicated, or that he personally gained in fact a financial profit or other advantage to which he was not legally entitled. Nothing contained in this article shall affect any rights to indemnification to which corporate personnel other than directors and officers may be entitled by contract or otherwise under law.
§ 722.     AUTHORIZATION FOR INDEMNIFICATION OF DIRECTORS AND OFFICERS.
(a)     A corporation may indemnify any person made, or threatened to be made, a party to an action or proceeding (other than one by or in the right of the corporation to procure a judgment in its favor), whether civil or criminal, including an action by or in the right of any other corporation of any type or kind, domestic or foreign, or any partnership, joint venture, trust, employee benefit plan or other enterprise, which any director or officer of the corporation served in any capacity at the request of the corporation, by reason of the fact that he, his testator or intestate, was a director or officer of the corporation or served such other corporation,
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partnership, joint venture, trust, employee benefit plan or other enterprise in any capacity, against judgments, fines, amounts paid in settlement and reasonable expenses, including attorneys' fees actually and necessarily incurred as a result of such action or proceeding, or any appeal therein, if such director or officer acted, in good faith, for a purpose which he reasonably believed to be in, or, in the case of service for any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise, not opposed to, the best interests of the corporation and, in criminal actions or proceedings, in addition, had no reasonable cause to believe that his conduct was unlawful.
(b)     The termination of any such civil or criminal action or proceeding by judgment, settlement, conviction or upon a plea of nolo contendere, or its equivalent, shall not in itself create a presumption that any such director or officer did not act, in good faith, for a purpose which he reasonably believed to be in, or, in the case of service for any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise, not opposed to, the best interests of the corporation or that he had reasonable cause to believe that his conduct was unlawful.
(c)     A corporation may indemnify any person made, or threatened to be made, a party to an action by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he, his testator or intestate, is or was a director or officer of the corporation, or is or was serving at the request of the corporation as a director or officer of any other corporation of any type or kind, domestic or foreign, of any partnership, joint venture, trust, employee benefit plan or other enterprise, against amounts paid in settlement and reasonable expenses, including attorneys' fees, actually and necessarily incurred by him in connection with the defense or settlement of such action, or in connection with an appeal therein, if such director or officer acted, in good faith, for a purpose which he reasonably believed to be in, or, in the case of service for any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise, not opposed to the best interests of the corporation, except that no indemnification under this paragraph shall be made in respect of (1) a threatened action, or a pending action which is settled or otherwise disposed of, or (2) any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation, unless and only to the extent that the court in which the action was brought, or, if no action was brought, any court of competent jurisdiction, determines upon application that, in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such portion of the settlement amount and expenses as the court deems proper.
(d)     For the purpose of this section, a corporation shall be deemed to have requested a person to serve an employee benefit plan where the performance by such person of his duties to the corporation also imposes duties on, or otherwise involves services by, such person to the plan or participants or beneficiaries of the plan; excise taxes assessed on a person with respect to an employee benefit plan pursuant to applicable law shall be considered fines; and action taken or omitted by a person with respect to an employee benefit plan in the performance of such person's duties for a purpose reasonably believed by such person to be in the interest of the participants and beneficiaries of the plan shall be deemed to be for a purpose which is not opposed to the best interests of the corporation.
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§ 723.     PAYMENT OF INDEMNIFICATION OTHER THAN BY COURT AWARD.
(a)     A person who has been successful, on the merits or otherwise, in the defense of a civil or criminal action or proceeding of the character described in section 722 shall be entitled to indemnification as authorized in such section.
(b)     Except as provided in paragraph (a), any indemnification under section 722 or otherwise permitted by section 721, unless ordered by a court under section 724 (Indemnification of directors and officers by a court), shall be made by the corporation, only if authorized in the specific case:
(1)     By the board acting by a quorum consisting of directors who are not parties to such action or proceeding upon a finding that the director or
officer has met the standard of conduct set forth in section 722 or established pursuant to section 721, as the case may be, or,
(2)     If a quorum under subparagraph (1) is not obtainable or, even if obtainable, a quorum of disinterested directors so directs;
(A)     By the board upon the opinion in writing of independent legal counsel that indemnification is proper in the circumstances because the
applicable standard of conduct set forth in such sections has been met by such director or officer, or
(B)     By the shareholders upon a finding that the director or officer has met the applicable standard of conduct set forth in such sections.
(c)     Expenses incurred in defending a civil or criminal action or proceeding may be paid by the corporation in advance of the final disposition of such action or proceeding upon receipt of an undertaking by or on behalf of such director or officer to repay such amount as, and to the extent, required by paragraph (a) of section 725.
§ 724.     INDEMNIFICATION OF DIRECTORS AND OFFICERS BY A COURT.
(a)     Notwithstanding the failure of a corporation to provide indemnification, and despite any contrary resolution of the board or of the shareholders in the specific case under section 723 (Payment of indemnification other than by court award), indemnification shall be awarded by a court to the extent authorized under section 722 (Authorization for indemnification of directors and officers), and paragraph (a) of section 723. Application therefor may be made, in every case, either:
(1)     In the civil action or proceeding in which the expenses were incurred or other amounts were paid, or
(2)     To the supreme court in a separate proceeding, in which case the application shall set forth the disposition of any previous application made
to any court for the same or similar relief and also reasonable cause for the failure to make application
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for such relief in the action or proceeding in which the expenses were incurred or other amounts were paid.
(b)     The application shall be made in such manner and form as may be required by the applicable rules of court or, in the absence thereof, by direction of a court to which it is made. Such application shall be upon notice to the corporation. The court may also direct that notice be given at the expense of the corporation to the shareholders and such other persons as it may designate in such manner as it may require.
(c)     Where indemnification is sought by judicial action, the court may allow a person such reasonable expenses, including attorneys' fees, during the pendency of the litigation as are necessary in connection with his defense therein, if the court shall find that the defendant has by his pleadings or during the course of the litigation raised genuine issues of fact or law.
§ 725.     OTHER PROVISIONS AFFECTING INDEMNIFICATION OF DIRECTORS AND OFFICERS.
(a)     All expenses incurred in defending a civil or criminal action or proceeding which are advanced by the corporation under paragraph (c) of section 723 (Payment of indemnification other than by court award) or allowed by a court under paragraph (c) of section 724 (Indemnification of directors and officers by a court) shall be repaid in case the person receiving such advancement or allowance is ultimately found, under the procedure set forth in this article, not to be entitled to indemnification or, where indemnification is granted, to the extent the expenses so advanced by the corporation or allowed by the court exceed the indemnification to which he is entitled.
(b)     No indemnification, advancement or allowance shall be made under this article in any circumstance where it appears:
(1)     That the indemnification would be inconsistent with the law of the jurisdiction of incorporation of a foreign corporation which prohibits or
otherwise limits such indemnification;
(2)     That the indemnification would be inconsistent with a provision of the certificate of incorporation, a by-law, a resolution of the board or of the
shareholders, an agreement or other proper corporate action, in effect at the time of the accrual of the alleged cause of action asserted in the threatened or
pending action or proceeding in which the expenses were incurred or other amounts were paid, which prohibits or otherwise limits indemnification; or
(3)     If there has been a settlement approved by the court, that the indemnification would be inconsistent with any condition with respect to
indemnification expressly imposed by the court in approving the settlement.
(c)     If any expenses or other amounts are paid by way of indemnification, otherwise than by court order or action by the shareholders, the corporation shall, not later than the next annual meeting of shareholders unless such meeting is held within three months from the date of such payment, and, in any event, within fifteen months from the date of such payment, mail to its
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shareholders of record at the time entitled to vote for the election of directors a statement specifying the persons paid, the amounts paid, and the nature and status at the time of such payment of the litigation or threatened litigation.
(d)     If any action with respect to indemnification of directors and officers is taken by way of amendment of the by-laws, resolution of directors, or by agreement, then the corporation shall, not later than the next annual meeting of shareholders, unless such meeting is held within three months from the date of such action, and, in any event, within fifteen months from the date of such action, mail to its shareholders of record at the time entitled to vote for the election of directors a statement specifying the action taken.
(e)     Any notification required to be made pursuant to the foregoing paragraph (c) or (d) of this section by any domestic mutual insurer shall be satisfied by compliance with the corresponding provisions of section one thousand two hundred sixteen of the insurance law.
(f)     The provisions of this article relating to indemnification of directors and officers and insurance therefor shall apply to domestic corporations and foreign corporations doing business in this state, except as provided in section 1320 (Exemption from certain provisions).
§ 726.     INSURANCE FOR INDEMNIFICATION OF DIRECTORS AND OFFICERS.
(a)     Subject to paragraph (b), a corporation shall have power to purchase and maintain insurance:
(1)     To indemnify the corporation for any obligation which it incurs as a result of the indemnification of directors and officers under the provisions
of this article, and
(2)     To indemnify directors and officers in instances in which they may be indemnified by the corporation under the provisions of this article, and
(3)     To indemnify directors and officers in instances in which they may not otherwise be indemnified by the corporation under the provisions of this
article provided the contract of insurance covering such directors and officers provides, in a manner acceptable to the superintendent of insurance, for a
retention amount and for co-insurance.
(b)     No insurance under paragraph (a) may provide for any payment other than cost of defense, to or on behalf of any director or officer:
(1) if a judgment or other final adjudication adverse to the insured director or officer establishes that his acts of active and deliberate dishonesty were
material to the cause of action so adjudicated, or that he personally gained in fact a financial profit or other advantage to which he was not legally entitled, or
(2) in relation to any risk the insurance of which is prohibited under the insurance law of this state.
II-5
(c)     Insurance under any or all subparagraphs of paragraph (a) may be included in a single contract or supplement thereto. Retrospective rated contracts are prohibited.
(d)     The corporation shall, within the time and to the persons provided in paragraph (c) of section 725 (Other provisions affecting indemnification of directors or officers), mail a statement in respect of any insurance it has purchased or renewed under this section, specifying the insurance carrier, date of the contract, cost of the insurance, corporate positions insured, and a statement explaining all sums, not previously reported in a statement to shareholders, paid under any indemnification insurance contract.
(e)     This section is the public policy of this state to spread the risk of corporate management, notwithstanding any other general or special law of this state or of any other jurisdiction including the federal government.
Article VIII of the Company's By-Laws provides:
To the full extent authorized by law, the corporation shall and hereby does indemnify any person who shall at any time be made, or threatened to be made, a party in any civil or criminal action or proceeding by reason of the fact that he, his testator or his intestate is or was a director or officer of the corporation or served another corporation in any capacity at the request of the corporation.
Section 5.03(c) of the Voting Trust Agreement provides:
The Corporation covenants and agrees, and in the event the Corporation shall not do so for any reason whatsoever the Participating Shareholders in consideration of the Voting Trustees having agreed to serve in that capacity for the benefit of the Participating Shareholders covenant and agree ratably in accordance with the number of shares of Common Stock represented by their respective Voting Trust Interests, to indemnify each Voting Trustee and each agent or attorney of the Voting Trustees (including, without limitation, Agents, transfer agents and registrars) for, and to hold such Voting Trustee harmless against, any tax, loss, liability or expense incurred for any reason other than his or her own individual willful misconduct, arising out of or in connection with the acceptance or administration of the 2007 Voting Trust, and the performance of his or her duties and obligations hereunder and the exercise of his rights and powers hereunder, including the costs and expenses of defending against any claim of liability. The obligations under this Section 5.03(c) of the Corporation and the Participating Shareholders to indemnify the Voting Trustees and each agent or attorney of the Voting Trustees (including, without limitation, Agents, transfer agents and registrars) shall be payable from any funds or other assets held by the Voting Trustees hereunder for the account of the Corporation or the Participating Shareholders as the case may be.
Effective December 1, 2007, the Company renewed the insurance covering directors and officers along with the fiduciary liability that covers certain other employees, against liabilities imposed on them as a result of their employment with the Company. This insurance is provided by National Union Fire Insurance Company (a member of the AIG Group) and Allied World Assurance Company for a total premium of $175,561 through November 30, 2008.
II-6
Item 15.     Recent Sales of Unregistered Securities.
None.
Item 16.     Exhibits and Financial Statement Schedules.
3.     (i)
Articles of Incorporation
(a)     Restated Certificate of Incorporation, as amended, filed as Exhibit 4(i) to the Company's Registration Statement on Form S-1 (Registration No. 333-15761) and incorporated herein by reference.
(b)     Certificate of Amendment of Certificate of Incorporation, filed as Exhibit 4(ii) to the Company's Registration Statement on Form S-2 (Registration No. 333-118575) and incorporated herein by reference.
(ii)
Bylaws
Bylaws, as amended through June 14, 2007, filed as Exhibit 9.01(d)(3)(ii) to the Company's Current Report on Form 8-K dated June 14, 2007 (Commission File No. 0-255) and incorporated herein by reference.
4.
Instruments defining the rights of security holders, including indentures
:
(i)     Restated Certificate of Incorporation, as amended, filed as Exhibit 4(i) to the Company's Registration Statement on Form S-1 (Registration No. 333-15761) and incorporated herein by reference.
(ii)    Certificate of Amendment of Certificate of Incorporation, filed as Exhibit 4(ii) to the Company's Registration Statement on Form S-2 (Registration No. 333-118575) and incorporated herein by reference.
(iii)   Voting Trust Agreement dated as of March 16, 2007, attached as Annex A to the Prospectus, dated January 18, 2007, constituting a part of the Registration Statement on Form S-1 (Registration No. 333-139992) and incorporated herein by reference.
(iv)   Bylaws, as amended through June 14, 2007, filed as Exhibit 9.01(d)(3)(ii) to the Company's Current Report on Form 8-K dated June 14, 2007 (Commission File No. 0-255) and incorporated herein by reference.
The Company hereby agrees to furnish to the Commission upon request a copy of each instrument omitted pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K.
5.
Opinion re legality
Opinion of Bryan Cave LLP.
9.
Voting Trust Agreement
Voting Trust Agreement dated as of March 16, 2007, attached as Annex A to the Prospectus, dated January 18, 2007, constituting a part of the Registration Statement on Form S-1 (Registration No. 333-139992) and incorporated herein by reference.
10.
Material Contracts
(i)     Management Incentive Plan, filed as Exhibit 4(a)(1) to the Annual Report on Form 10-K for the year ended December 31, 1972 (Commission File No. 0-255), as amended by the Amendment effective January 1, 1974, filed as Exhibit 13-c to the Registration Statement on Form S-1 (Registration No. 2-51832), the Amendment effective January 1, 1977, filed as Exhibit 13(d) to the Registration Statement on Form S-1 (Registration No. 2-59744), and the Amendment effective January 1, 1980, filed as Exhibit 5(f) to the Registration Statement on Form S-7 (Registration No. 2-68938) and incorporated herein by reference.*
(ii)    Form of Deferral Agreement entered into between the Company and certain employees, filed as Exhibit 10(ii) to the Company's Annual Report on Form 10-K for the year ended December 31, 2002 and incorporated herein by reference.*
(iii)   Form of Supplemental Benefit Plan covering certain employees, filed as Exhibit 10(iii) to the Company's Annual Report on Form 10-K for the year ended December 31, 2002 and incorporated herein by reference.*
II-7
(iv)   Receivables Sale Agreement, dated June 30, 2000, between Graybar Electric Company, Inc. and Graybar Commerce Corporation filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2003 (Commission File No. 0-255) and incorporated herein by reference; and Amendment to Receivables Sale Agreement dated August 15, 2006, filed as Exhibit 10(x) to the Company's Registration Statement on Form S-1 (Registration No. 333-137249) and incorporated herein by reference.
(v)    Receivables Purchase Agreement, dated June 30, 2000, among Graybar Commerce Corporation, as Seller, Graybar Electric Company, Inc., as Servicer, Falcon Asset Securitization Corporation and Bank One, NA, as Agent, and other financial institutions named therein; Amendments to Receivables Purchase Agreement dated January 1, 2001, June 22, 2001, August 29, 2001, October 26, 2001, December 31, 2001, October 23, 2002, and December 23, 2002, filed as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2003 (Commission File No. 0-255) and incorporated herein by reference; Amendment to Receivables Purchase Agreement, dated October 22, 2003, filed as an exhibit 10(v) to the Company's Registration Statement on Form S-2 (Registration No. 333-118575) and incorporated herein by reference; Amendment to Receivables Purchase Agreement, dated September 26, 2005, filed as an exhibit 10(v) to the Company's Annual Report on Form 10-K for the year ended December 31, 2005 and incorporated herein by reference; and Amendment to Receivables Purchase Agreement dated August 15, 2006, filed as Exhibit 10(ix) to the Company's Registration Statement on Form S-1 (Registration No. 333-137249) and incorporated herein by reference.
(vi)   Five-Year Credit Agreement dated May 8, 2007, among Graybar Electric Company, Inc., Bank of America, N.A., as Agent, and other banks named therein, filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2007 (Commission File No. 0-255) and incorporated herein by reference.
*Compensation arrangement
23.
Consents of experts and counsel
(a)    Consent of Ernst & Young LLP.
(b)    Consent of Bryan Cave LLP (contained in the opinion filed as Exhibit 5 and incorporated herein by reference).
24.
Powers of attorney
Powers of attorney of certain directors and officers of the Company (included on page II-10 of this Registration Statement.)
Powers of attorney of the Voting Trustees under the Voting Trust dated as of March 16, 2007 (included on page II-11 of this Registration Statement)
II-8
Item 17.     Undertakings.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Company or the Voting Trustees pursuant to the foregoing provisions, or otherwise, the Company and the Voting Trustees have been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Company or the Voting Trustees of expenses incurred or paid by a director, officer or controlling person of the Company or the Voting Trustees in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Company or the Voting Trustees will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it or them is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the Company has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the County of St. Louis, State of Missouri on the 29th day of August, 2008.
GRAYBAR ELECTRIC COMPANY, INC.
By:
/s/ Matthew W. Geekie
Matthew W. Geekie, Senior Vice
President, General Counsel and
Secretary
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints
Matthew W. Geekie
, his true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as they might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their substitutes, may lawfully do or cause to be done by virtue hereof.
II-9
Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities indicated on August 29, 2008.
Signature
Title
/s/ R. A. Reynolds, Jr.
Director and Chairman of the Board and
(R. A. Reynolds, Jr.)
President (Principal Executive Officer)
/s/ D. B. D'Alessandro
Director, Senior Vice President (Principal
(D. B. D'Alessandro)
Financial Officer)
/s/ M. J. Beagen
Vice President and Controller (Principal
(M. J. Beagen)
Accounting Officer)
Directors:
/s/ R. A. Cole
/s/ R. C. Lyons
(R. A. Cole)
(R. C. Lyons)
/s/ D. E. DeSousa
/s/ K. M. Mazzarella
(D. E. DeSousa)
(K. M. Mazzarella)
/s/ M. W. Geekie
/s/ R. L. Nowak
(M. W. Geekie)
(R. L. Nowak)
/s/ L. R. Giglio
/s/ R. D. Offenbacher
(L. R. Giglio)
(R. D. Offenbacher)
/s/ T. S. Gurganous
/s/ K. B. Sparks
(T. S. Gurganous)
(K. B. Sparks)
/s/ F. H. Hughes
(F. H. Hughes)
II-10
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the Voting Trustees have duly caused this Registration Statement to be signed on their behalf by the undersigned, thereunto duly authorized, in the County of St. Louis, State of Missouri on the 29th day of August, 2008.
D. E. DESOUSA, L. R. GIGLIO, T. S.
GURGANOUS, R. D. OFFENBACHER AND R.
A. REYNOLDS, JR.,VOTING TRUSTEES
UNDER THE VOTING TRUST AGREEMENT,
DATED AS OF MARCH 16, 2007
By:
/s/
R
.
A. Reynolds
, Jr.
Name:
R
.
A. Reynolds
, Jr., as Voting
Trustee
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints
Matthew W. Geekie
, his true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as they might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons, as Voting Trustees under the Voting Trust Agreement dated as of March 16, 2007, on August 29th, 2008.
Signatures
/s/ R. A. Reynolds, Jr.
/s/
T. S. Gurganous
(R. A. Reynolds, Jr.)
(T. S. Gurganous)
/s/ D. E. DeSousa
/s/ R
. D. Offenbacher
(D. E. DeSousa)
(R. D. Offenbacher)
/s/ L. R. Giglio
(L. R. Giglio)
II-11
INDEX TO EXHIBITS
Exhibits
3.     (i)
Articles of Incorporation
(a)     Restated Certificate of Incorporation, as amended, filed as Exhibit 4(i) to the Company's Registration Statement on Form S-1 (Registration No. 333-15761) and incorporated herein by reference.
(b)     Certificate of Amendment of Certificate of Incorporation, filed as Exhibit 4(ii) to the Company's Registration Statement on Form S-2 (Registration No. 333-118575) and incorporated herein by reference.
(ii)
Bylaws
Bylaws, as amended through June 14, 2007, filed as Exhibit 9.01(d)(3)(ii) to the Company's Current Report on Form 8-K dated June 14, 2007 (Commission File No. 0-255) and incorporated herein by reference.
4.
Instruments defining the rights of security holders, including indentures
(i)     Restated Certificate of Incorporation, as amended, filed as Exhibit 4(i) to the Company's Registration Statement on Form S-1 (Registration No. 333-15761) and incorporated herein by reference.
(ii)    Certificate of Amendment of Certificate of Incorporation, filed as Exhibit 4(ii) to the Company's Registration Statement on Form S-2 (Registration No. 333-118575) and incorporated herein by reference.
(iii)    Voting Trust Agreement dated as of March 16, 2007, attached as Annex A to the Prospectus, dated January 18, 2007, constituting a part of the Company's Registration Statement on Form S-1 (Registration No. 333-139992) and incorporated herein by reference.
(iv)    Bylaws, as amended through June 14, 2007, filed as Exhibit 9.01(d)(3)(ii) to the Company's Current Report on Form 8-K dated June 14, 2007 (Commission File No. 0-255). and incorporated herein by reference.
5.
Opinion re legality
Opinion of Bryan Cave LLP
9.
Voting Trust Agreement
Voting Trust Agreement dated as of March 16, 2007, attached as Annex A to the Prospectus, dated January 18, 2007, constituting a part of the Company's Registration Statement on Form S-1 (Registration No. 333-139992) and incorporated herein by reference.
10.
Material Contracts
(i)     Management Incentive Plan, filed as Exhibit 4(a)(1) to the Annual Report on Form 10-K for the year ended December 31, 1972 (Commission File No. 0-255), as amended by the Amendment effective January 1, 1974, filed as Exhibit 13-c to the Registration Statement on Form S-1 (Registration No. 2-51832), the Amendment effective January 1, 1977, filed as Exhibit 13(d) to the Registration Statement on Form S-1 (Registration No. 2-59744), and the Amendment effective January 1, 1980, filed as Exhibit 5(f) to the Registration Statement on Form S-7 (Registration No. 2-68938) and incorporated herein by reference.
(ii)    Form of Deferral Agreement entered into between the Company and certain employees, filed as Exhibit 10(ii) to the Company's Annual Report on Form 10-K for the year ended December 31, 2002 and incorporated herein by reference.*
(iii)   Form of Supplemental Benefit Plan covering certain employees, filed as Exhibit 10(iii) to the Company's Annual Report on Form 10-K for the year ended December 31, 2002 and incorporated herein by reference.*
(iv)    Receivables Sale Agreement, dated June 30, 2000, between Graybar Electric Company, Inc. and Graybar Commerce Corporation filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2003 (Commission File No. 0-255) and incorporated herein by reference; and Amendment to Receivables Sale Agreement dated August 15, 2006, filed as Exhibit 10(x) to the Company's Registration Statement on Form S-1 (Registration No. 333-137249) and incorporated herein by reference.
(v)     Receivables Purchase Agreement, dated June 30, 2000, among Graybar Commerce Corporation, as Seller, Graybar Electric Company, Inc., as Servicer, Falcon Asset Securitization Corporation and Bank One, NA, as Agent, and other financial institutions named therein; Amendments to Receivables Purchase Agreement dated January 1, 2001, June 22, 2001, August 29, 2001, October 26, 2001, December 31, 2001, October 23, 2002, and December 23, 2002, filed as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2003 (Commission File No. 0-255) and incorporated herein by reference; Amendment to Receivables Purchase Agreement dated October 22, 2003, filed as an exhibit 10(v) to the Company's Registration Statement on Form S-2 (Registration No. 333-118575) and incorporated herein by reference; Amendment to Receivables Purchase Agreement, dated September 26, 2005, filed as an exhibit 10(v) to the Company's Annual Report on Form 10-K for the year ended December 31, 2005 and incorporated herein by reference; and Amendment to Receivables Purchase Agreement dated August 15, 2006, filed as Exhibit 10(ix) to the Company's Registration Statement on Form S-1 (Registration No. 333-137249) and incorporated herein by reference.
(vi)    Five-Year Credit Agreement dated May 8, 2007 among Graybar Electric Company, Inc., Bank of America, N.A., as Agent, and other banks named therein, filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2007 (Commission File No. 0-255) and incorporated herein by reference.
23.
Consents of experts and counsel
(a)     Consent of Ernst & Young LLP
(b)     Consent of Bryan Cave LLP (contained in the opinion filed as Exhibit 5 to this registration statement)
24.
Powers of attorney
Powers of attorney of certain directors and officers of the Company (included on page II-10 of this Registration Statement.)
Powers of attorney of the Voting Trustees under the Voting Trust dated as of March 16, 2007 (included on page II-11 of this Registration Statement)
*Compensation arrangement