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Exhibit 10.58    
    

 
  MEDIA ARTS GROUP, INC.    
    
    2002 STOCK PLAN    
    

        1.    Purposes of the Plan.    The purposes of this 2002 Stock Plan are: 

	•
	to
attract and retain the best available personnel for positions of substantial responsibility,

	•
	to
provide additional incentive to Employees, Directors and Consultants, and

	•
	to
promote the success of the Company's business. 

        Options
granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the time of grant. Stock Purchase Rights may also be
granted under the Plan. 

        2.    Definitions.    As used herein, the following definitions shall apply: 

        (a)   "Administrator" means the Board or any of its Committees as shall be administering the Plan, in accordance with
Section 4 of the Plan. 

        (b)   "Applicable Laws" means the requirements relating to the administration of stock option plans under U.S. state corporate
laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or
jurisdiction where Options or Stock Purchase Rights are, or will be, granted under the Plan. 

        (c)   "Board" means the Board of Directors of the Company. 

        (d)   "Change in Control" means the occurrence of any of the following events: 

          (i)  Any
"person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the "beneficial owner" (as defined in Rule 13d-3 of the
Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company's then outstanding voting securities;
or 

         (ii)  The
consummation of the sale or disposition by the Company of all or substantially all of the Company's assets; 

        (iii)  A
change in the composition of the Board occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent
Directors. "Incumbent Directors" means directors who either (A) are Directors as of the effective date of the Plan, or (B) are elected, or nominated for election, to the Board with the
affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but will not include an individual whose election or nomination is in connection with an
actual or threatened proxy contest relating to the election of directors to the Company); or 

        (iv)  The
consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its
parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or
consolidation. 

        (e)   "Code" means the Internal Revenue Code of 1986, as amended. 

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        (f)    "Committee" means a committee of Directors appointed by the Board in accordance with Section 4 of the Plan. 

        (g)   "Common Stock" means the common stock of the Company. 

        (h)   "Company" means Media Arts Group, Inc., a Delaware corporation. 

        (i)    "Consultant" means any natural person, including an advisor, engaged by the Company or a Parent or Subsidiary to render
services to such entity. 

        (j)    "Director" means a member of the Board. 

        (k)   "Disability" means total and permanent disability as defined in Section 22(e)(3) of the Code. 

        (l)    "Employee" means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the
Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or
between the Company, its Parent, any Subsidiary, or any successor. For purposes of Incentive Stock Options, no such leave may exceed ninety days, unless reemployment upon expiration of such leave is
guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then three (3) months following the 91st day
of such leave any Incentive Stock Option held by the Optionee shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option. Neither
service as a Director nor payment of a director's fee by the Company shall be sufficient to constitute "employment" by the Company. 

        (m)  "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        (n)   "Fair Market Value" means, as of any date, the value of Common Stock determined as follows: 

          (i)  If
the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq
SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system
on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

         (ii)  If
the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share of Common Stock shall be
the mean between the high bid and low asked prices for the Common Stock on the day of determination, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable; or 

        (iii)  In
the absence of an established market for the Common Stock, the Fair Market Value shall be determined in good faith by the Administrator. 

        (o)   "Incentive Stock Option" means an Option intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code and the regulations promulgated thereunder. 

        (p)   "Inside Director" means a Director who is an Employee. 

        (q)   "Nonstatutory Stock Option" means an Option not intended to qualify as an Incentive Stock Option. 

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        (r)   "Notice of Grant" means a written or electronic notice evidencing certain terms and conditions of an individual Option or
Stock Purchase Right grant. The Notice of Grant is part of the Option Agreement. 

        (s)   "Officer" means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and
the rules and regulations promulgated thereunder. 

        (t)    "Option" means a stock option granted pursuant to the Plan. 

        (u)   "Option Agreement" means an agreement between the Company and an Optionee evidencing the terms and conditions of an
individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 

        (v)   "Option Exchange Program" means a program whereby outstanding Options are surrendered in exchange for Options with a
lower exercise price. 

        (w)  "Optioned Stock" means the Common Stock subject to an Option or Stock Purchase Right. 

        (x)   "Optionee" means the holder of an outstanding Option or Stock Purchase Right granted under the Plan. 

        (y)   "Outside Director" means a Director who is not an Employee. 

        (z)   "Parent" means a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the
Code. 

        (aa) "Plan" means this 2002 Stock Plan. 

        (bb) "Restricted Stock" means shares of Common Stock acquired pursuant to a grant of Stock Purchase Rights under
Section 11 of the Plan. 

        (cc) "Restricted Stock Purchase Agreement" means a written agreement between the Company and the Optionee evidencing the
terms and restrictions applying to stock purchased under a Stock Purchase Right. The Restricted Stock Purchase Agreement is subject to the terms and conditions of the Plan and the Notice of Grant. 

        (dd) "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any successor to
Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan. 

        (ee) "Section 16(b)" means Section 16(b) of the Exchange Act. 

        (ff)  "Service Provider" means an Employee, Director or Consultant. 

        (gg) "Share" means a share of the Common Stock, as adjusted in accordance with Section 14 of the Plan. 

        (hh) "Stock Purchase Right" means the right to purchase Common Stock pursuant to Section 11 of the Plan, as evidenced by a
Notice of Grant. 

        (ii)   "Subsidiary" means a "subsidiary corporation", whether now or hereafter existing, as defined in Section 424(f) of
the Code. 

        3.    Stock Subject to the Plan.    Subject to the provisions of Section 14 of the Plan, the maximum aggregate
number of Shares that may be optioned and sold under the Plan is 0 Shares plus (a) any Shares which have been reserved but not issued under the Company's 1998 Stock Incentive Plan (the "1998
Plan") as of the date of stockholder approval of this Plan, (b) any Shares returned to the 1998 Plan as a result of termination of options or repurchase of Shares issued under the 1998 Plan and
(c) an annual increase to be added on the first day of the Company's fiscal year beginning in 2003, equal to the lesser of (i) 500,000 shares, (ii) 4% of the outstanding shares on
such date or (iii) a lesser 

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amount
determined by the Board. The Shares may be authorized, but unissued, or reacquired Common Stock. 

        If
an Option or Stock Purchase Right expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an Option Exchange Program, the unpurchased
Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated); provided, however,
that Shares that have actually been issued under the Plan, whether upon exercise of an Option or Right, shall not be returned to the Plan and shall not become available for future distribution under
the Plan, except that if Shares of Restricted Stock are repurchased by the Company at their original purchase price, such Shares shall become available for future grant under the Plan. 

        4.    Administration of the Plan.    

        (a)   Procedure. 

          (i)  Multiple Administrative Bodies. Different Committees with respect to different groups of Service Providers may
administer the Plan. 

         (ii)  Section 162(m). To the extent that the Administrator determines it to be desirable to qualify Options granted
hereunder as "performance-based compensation" within the meaning of Section 162(m) of the Code, the Plan shall be administered by a Committee of two or more "outside directors" within the
meaning of Section 162(m) of the Code. 

        (iii)  Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under
Rule 16b-3, the transactions contemplated hereunder shall be structured to satisfy the requirements for exemption under Rule 16b-3. 

        (iv)  Other Administration. Other than as provided above, the Plan shall be administered by (A) the Board or
(B) a Committee, which committee shall be constituted to satisfy Applicable Laws. 

        (b)   Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the
specific duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion: 

          (i)  to
determine the Fair Market Value; 

         (ii)  to
select the Service Providers to whom Options and Stock Purchase Rights may be granted hereunder; 

        (iii)  to
determine the number of shares of Common Stock to be covered by each Option and Stock Purchase Right granted hereunder; 

        (iv)  to
approve forms of agreement for use under the Plan; 

         (v)  to
determine the terms and conditions, not inconsistent with the terms of the Plan, of any Option or Stock Purchase Right granted hereunder. Such terms and conditions
include, but are not limited to, the
exercise price, the time or times when Options or Stock Purchase Rights may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions,
and any restriction or limitation regarding any Option or Stock Purchase Right or the shares of Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole
discretion, shall determine; 

        (vi)  to
reduce the exercise price of any Option or Stock Purchase Right to the then current Fair Market Value if the Fair Market Value of the Common Stock covered by such
Option or Stock Purchase Right shall have declined since the date the Option or Stock Purchase Right was granted; 

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       (vii)  to
institute an Option Exchange Program; 

      (viii)  to
construe and interpret the terms of the Plan and awards granted pursuant to the Plan; 

        (ix)  to
prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the
purpose of satisfying applicable foreign laws; 

         (x)  to
modify or amend each Option or Stock Purchase Right (subject to Section 16(c) of the Plan), including the discretionary authority to extend the
post-termination exercisability period of Options longer than is otherwise provided for in the Plan; 

        (xi)  to
allow Optionees to satisfy withholding tax obligations by electing to have the Company withhold from the Shares to be issued upon exercise of an Option or Stock
Purchase Right that number of Shares having a Fair Market Value equal to the minimum amount required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined on the date
that the amount of tax to be withheld is to be determined. All elections by an Optionee to have Shares withheld for this purpose shall be made in such form and under such conditions as the
Administrator may deem necessary or advisable; 

       (xii)  to
authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Option or Stock Purchase Right previously granted by the
Administrator; 

      (xiii)  to
make all other determinations deemed necessary or advisable for administering the Plan. 

        (c)   Effect of Administrator's Decision. The Administrator's decisions, determinations and interpretations shall be final and
binding on all Optionees and any other holders of Options or Stock Purchase Rights. 

        5.    Eligibility.    Nonstatutory Stock Options and Stock Purchase Rights may be granted to Service Providers.
Incentive Stock Options may be granted only to Employees. 

        6.    Limitations.    

        (a)   Each
Option shall be designated in the Option Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to
the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Optionee during any calendar year (under all plans
of the Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive Stock Options shall be
taken into account in the order in which they were granted. The Fair Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is granted. 

        (b)   Neither
the Plan nor any Option or Stock Purchase Right shall confer upon an Optionee any right with respect to continuing the Optionee's relationship as a Service
Provider with the Company, nor shall they interfere in any way with the Optionee's right or the Company's right to terminate such relationship at any time, with or without cause. 

        (c)   The
following limitations shall apply to grants of Options: 

          (i)  No
Service Provider shall be granted, in any fiscal year of the Company, Options to purchase more than 600,000 Shares. 

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         (ii)  In
connection with his or her initial service, a Service Provider may be granted Options to purchase up to an additional 600,000 Shares, which shall not count against
the limit set forth in subsection (i) above. 

        (iii)  The
foregoing limitations shall be adjusted proportionately in connection with any change in the Company's capitalization as described in Section 14. 

        (iv)  If
an Option is cancelled in the same fiscal year of the Company in which it was granted (other than in connection with a transaction described in Section 14),
the cancelled Option will be counted against the limits set forth in subsections (i) and (ii) above. For this purpose, if the exercise price of an Option is reduced, the transaction will
be treated as a cancellation of the Option and the grant of a new Option. 

        7.    Term of Plan.    Subject to Section 20 of the Plan, the Plan shall become effective upon its adoption by
the Board. It shall continue in effect for a term of ten (10) years unless terminated earlier under Section 16 of the Plan. 

        8.    Term of Option.    The term of each Option shall be stated in the Option Agreement. In the case of an Incentive
Stock Option, the term shall be ten (10) years from the date of grant or such shorter term as may be provided in the Option Agreement. Moreover, in the case of an Incentive Stock Option granted
to an Optionee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or
any Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5) years from the date of grant or such shorter term as may be provided in the Option Agreement. 

        9.    Option Exercise Price and Consideration.    

        (a)   Exercise Price. The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be
determined by the Administrator, subject to the following: 

          (i)  In
the case of an Incentive Stock Option 

        (A)  granted
to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of
stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant. 

        (B)  granted
to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price shall be no less than 100% of the Fair
Market Value per Share on the date of grant. 

         (ii)  In
the case of a Nonstatutory Stock Option, the per Share exercise price shall be determined by the Administrator. In the case of a Nonstatutory Stock Option intended
to qualify as "performance-based compensation" within the meaning of Section 162(m) of the Code, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on
the date of grant. 

        (iii)  Notwithstanding
the foregoing, Options may be granted with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of grant
pursuant to a merger or other corporate transaction. 

        (b)   Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator shall fix the period within which
the Option may be exercised and shall determine any conditions that must be satisfied before the Option may be exercised. 

        (c)   Form of Consideration. The Administrator shall determine the acceptable form of consideration for exercising an Option,
including the method of payment. In the case of an 

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Incentive
Stock Option, the Administrator shall determine the acceptable form of consideration at the time of grant. Such consideration may consist entirely of: 

          (i)  cash; 

         (ii)  check; 

        (iii)  promissory
note; 

        (iv)  other
Shares which, in the case of Shares acquired directly or indirectly from the Company, (A) have been owned by the Optionee for more than six
(6) months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be
exercised; 

         (v)  consideration
received by the Company under a cashless exercise program implemented by the Company in connection with the Plan; 

        (vi)  a
reduction in the amount of any Company liability to the Optionee, including any liability attributable to the Optionee's participation in any Company-sponsored
deferred compensation program or arrangement; 

       (vii)  any
combination of the foregoing methods of payment; or 

      (viii)  such
other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws. 

        10.    Exercise of Option.    

        (a)   Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder shall be exercisable according to the terms
of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement. Unless the Administrator provides otherwise, vesting of Options
granted hereunder shall be suspended during any unpaid leave of absence. An Option may not be exercised for a fraction of a Share. 

        An
Option shall be deemed exercised when the Company receives: (i) written or electronic notice of exercise (in accordance with the Option Agreement) from the person entitled to
exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by the Optionee, in the name of
the Optionee and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to
vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be
issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as
provided in Section 14 of the Plan. 

        Exercising
an Option in any manner shall decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to
which the Option is exercised. 

        (b)   Termination of Relationship as a Service Provider. If an Optionee ceases to be a Service Provider, other than upon the
Optionee's death or Disability, the Optionee may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent that the Option is vested on the date of
termination (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement, the Option shall
remain exercisable for three (3) months following the 

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Optionee's
termination. If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan.
If, after termination, the Optionee does not exercise his or her Option within the time specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert
to the Plan. 

        (c)   Disability of Optionee. If an Optionee ceases to be a Service Provider as a result of the Optionee's Disability, the
Optionee may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent the Option is vested on the date of termination (but in no event later than the
expiration of the term of such Option as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve
(12) months following the Optionee's termination. If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the
Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such
Option shall revert to the Plan. 

        (d)   Death of Optionee. If an Optionee dies while a Service Provider, the Option may be exercised following the Optionee's
death within such period of time as is specified in the Option Agreement to the extent that the Option is vested on the date of death (but in no event may the option be exercised later than the
expiration of the term of such Option as set forth in the Option Agreement), by the Optionee's designated beneficiary, provided such beneficiary has been designated prior to Optionee's death in a form
acceptable to the Administrator. If no such beneficiary has been designated by the Optionee, then such Option may be exercised by the personal representative of the Optionee's estate or by the
person(s) to whom the Option is transferred pursuant to the Optionee's will or in accordance with the laws of descent and distribution. In the absence of a specified time in the Option Agreement, the
Option shall remain exercisable for twelve (12) months following Optionee's death. If, at the time of death, Optionee is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall immediately revert to the Plan. If the Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares covered by such
Option shall revert to the Plan. 

        11.    Stock Purchase Rights.    

        (a)   Rights to Purchase. Stock Purchase Rights may be issued either alone, in addition to, or in tandem with other awards
granted under the Plan and/or cash awards made outside of the Plan. After the Administrator determines that it will offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing
or electronically, by means of a Notice of Grant, of the terms, conditions and restrictions related to the offer, including the number of Shares that the offeree shall be entitled to purchase, the
price to be paid, and the time within which the offeree must accept such offer. The offer shall be accepted by execution of a Restricted Stock Purchase Agreement in the form determined by the
Administrator. 

        (b)   Repurchase Option. Unless the Administrator determines otherwise, the Restricted Stock Purchase Agreement shall grant the
Company a repurchase option exercisable upon the voluntary or involuntary termination of the purchaser's service with the Company for any reason (including death or Disability). The purchase price for
Shares repurchased pursuant to the Restricted Stock Purchase Agreement shall be the original price paid by the purchaser and may be paid by cancellation of any indebtedness of the purchaser to the
Company. The repurchase option shall lapse at a rate determined by the Administrator. 

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        (c)   Other Provisions. The Restricted Stock Purchase Agreement shall contain such other terms, provisions and conditions not
inconsistent with the Plan as may be determined by the Administrator in its sole discretion. 

        (d)   Rights as a Stockholder. Once the Stock Purchase Right is exercised, the purchaser shall have the rights equivalent to
those of a stockholder, and shall be a stockholder when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company. No adjustment will be made for a dividend
or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 14 of the Plan. 

        12.    Transferability of Options and Stock Purchase Rights.    Unless determined otherwise by the Administrator, an
Option or Stock Purchase Right may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of the Optionee, only by the Optionee. If the Administrator makes an Option or Stock Purchase Right transferable, such Option or Stock Purchase Right shall contain such
additional terms and conditions as the Administrator deems appropriate. 

        13.    Formula Option Grants to Outside Directors.    All grants of Options to Outside Directors pursuant to this
Section shall be automatic and nondiscretionary and shall be made strictly in accordance with the following provisions: 

        (a)   All
Options granted pursuant to this Section shall be Nonstatutory Stock Options and, except as otherwise provided herein, shall be subject to the other terms and
conditions of the Plan. 

        (b)   No
person shall have any discretion to select which Outside Directors shall be granted Options under this Section or to determine the number of Shares to be covered by
such Options. 

        (c)   Each
person who first becomes an Outside Director following the effective date of this Plan, as determined in accordance with Section 7 hereof, shall be
automatically granted an Option to purchase [5,000] Shares (the "First Option") or the date on which such person first becomes an Outside Director, whether through election by
the stockholders of the Company or appointment by the Board to fill a vacancy; provided, however, that an Inside Director who ceases to be an Inside Director but who remains a Director shall not
receive a First Option. 

        (d)   Each
Outside Director shall be automatically granted an Option to purchase 5,000 Shares (a "Subsequent Option") on the date of each Annual Meeting of Stockholders
beginning with the 2002 Annual Meeting. 

        (e)   Notwithstanding
the provisions of subsections (c) and (d) hereof, any exercise of an Option granted before the Company has obtained stockholder approval of
the Plan in accordance with Section 20 hereof shall be conditioned upon obtaining such stockholder approval of the Plan in accordance with Section 20 hereof. 

        (f)    The
terms of each Option granted pursuant to this Section shall be as follows: 

          (i)  the
term of the Option shall be ten (10) years. 

         (ii)  the
exercise price per Share shall be 85% of the Fair Market Value per Share on the date of grant of the Option. 

        (iii)  subject
to Section 14 hereof, the First Option shall vest and become exercisable immediately. 

        (iv)  subject
to Section 14 hereof, the Subsequent Option shall vest and become exercisable immediately. 

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        14.    Adjustments Upon Changes in Capitalization, Merger or Change in Control.    

        (a)   Changes in Capitalization. Subject to any required action by the stockholders of the Company, the number of shares of
Common Stock that have been authorized for issuance under the Plan but as to which no Options or Stock Purchase Rights have yet been granted or which have been returned to the Plan upon cancellation
or expiration of an Option or Stock Purchase Right, the number of Shares that may be added annually to the Plan pursuant to Section 3(i), the number of shares which may be granted pursuant to
the automatic grant provisions of Section 13 and the number of shares of Common Stock as well as the price per share of Common Stock covered by each such outstanding Option or Stock Purchase
Right, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration by the Company; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Such adjustment shall be made by the Board, whose determination in
that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option or Stock Purchase Right. 

        (b)   Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator
shall notify each Optionee as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for an Optionee to have the right to
exercise his or her Option until ten (10) days prior to such transaction as to all of the Optioned Stock covered thereby, including Shares as to which the Option would not otherwise be
exercisable. In addition, the Administrator may provide that any Company repurchase option applicable to any Shares purchased upon exercise of an Option or Stock Purchase Right shall lapse as to all
such Shares, provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has not been previously exercised, an Option or Stock Purchase
Right will terminate immediately prior to the consummation of such proposed action. 

        (c)   Merger or Change in Control. In the event of a merger of the Company with or into another corporation, or a Change in
Control, each outstanding Option and Stock Purchase Right shall be assumed or an equivalent option or right substituted by the successor corporation or a Parent or Subsidiary of the successor
corporation. With respect to Options granted to an Outside Director pursuant to Section 13 that are assumed or substituted for, if following such assumption or substitution the Optionee's
status as a Director or a director of the successor corporation, as applicable, is terminated other than upon a voluntary resignation by the Optionee, then the Optionee shall fully vest
in and have the right to exercise the Option as to all of the Optioned Stock, including Shares as to which it would not otherwise be vested or exercisable. 

        In
the event that the successor corporation refuses to assume or substitute for the Option or Stock Purchase Right, the Optionee shall fully vest in and have the right to exercise the
Option or Stock Purchase Right as to all of the Optioned Stock, including Shares as to which it would not otherwise be vested or exercisable. If an Option or Stock Purchase Right becomes fully vested
and exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Administrator shall notify the Optionee in writing or electronically that the Option or Stock
Purchase Right shall be fully vested and exercisable for a period of fifteen (15) days from the date of such notice, and the Option or Stock Purchase Right shall terminate upon the expiration
of such period. 

10

 

        For
the purposes of this subsection (c), the Option or Stock Purchase Right shall be considered assumed if, following the merger or Change in Control, the option or right confers the
right to purchase or receive, for each Share of Optioned Stock subject to the Option or Stock Purchase Right immediately prior to the merger or Change in Control, the consideration (whether stock,
cash, or other securities or property) received in the merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered
a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or Change in
Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon
the exercise of the Option or Stock Purchase Right, for each Share of Optioned Stock subject to the Option or Stock Purchase Right, to be solely common stock of the successor corporation or its Parent
equal in fair market value to the per share consideration received by holders of Common Stock in the merger or Change in Control. 

        15.    Date of Grant.    The date of grant of an Option or Stock Purchase Right shall be, for all purposes, the date
on which the Administrator makes the determination granting such Option or Stock Purchase Right, or such other later date as is determined by the Administrator. Notice of the determination shall be
provided to each Optionee within a reasonable time after the date of such grant. 

        16.    Amendment and Termination of the Plan.    

        (a)   Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan. 

        (b)   Stockholder Approval. The Company shall obtain stockholder approval of any Plan amendment to the extent necessary and
desirable to comply with Applicable Laws. 

        (c)   Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan shall impair the
rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Administrator, which agreement must be in writing and signed by the Optionee and the Company. Termination of the
Plan shall not affect the Administrator's ability to exercise the powers granted to it hereunder with respect to Options granted under the Plan prior to the date of such termination. 

        17.    Conditions Upon Issuance of Shares.    

        (a)   Legal Compliance. Shares shall not be issued pursuant to the exercise of an Option or Stock Purchase Right unless the
exercise of such Option or Stock Purchase Right and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company
with respect to such compliance. 

        (b)   Investment Representations. As a condition to the exercise of an Option or Stock Purchase Right, the Company may require
the person exercising such Option or Stock Purchase Right to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present
intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required. 

        18.    Inability to Obtain Authority.    The inability of the Company to obtain authority from any regulatory body
having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 

        19.    Reservation of Shares.    The Company, during the term of this Plan, will at all times reserve and keep
available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 

        20.    Stockholder Approval.    The Plan shall be subject to approval by the stockholders of the Company within twelve
(12) months after the date the Plan is adopted. Such stockholder approval shall be obtained in the manner and to the degree required under Applicable Laws. 

11

QuickLinks

Exhibit 10.58

MEDIA ARTS GROUP, INC. 2002 STOCK PLANQuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 10.8    
    

 
 

WORLD-WIDE SUPPLY AGREEMENT BETWEEN
  HONEYWELL INTERNATIONAL AND
  AGREEMENT CONTROL NUMBER FPHW2084    
    

        Whereas Honeywell International, acting through and on behalf of its Home and Building Control North America Region (NAR) Automation & Control Products
(ACP) ("Buyer") and Axcess, Inc. ("Seller") are desirous of entering into a comprehensive
agreement for the purchase and sale of Radio Frequency Identification and other related technology and complementary products. 

        Whereas,
Seller has represented to Buyer that  Seller will be able to sell equipment and parts, and perform services
in accordance with this Agreement; and in consideration of the premises of the
mutual undertakings hereunder, the parties agree as follows: 

1.) TERM/TERMINATION  

A.)
Term 

        Unless
terminated earlier pursuant to paragraph 1B below, this Agreement shall be in effect for a period of 2 years, commencing June 30, 2003 and ending
June 30, 2005 and may be extended on a year to year basis by mutual written agreement of the parties on 60 days' prior written notice by  Buyer to Seller prior to termination hereof via a dual signature amendment letter. 

B.)
Termination 

        The
intent of this agreement between Buyer and Seller is that it remain in effect for a
period of 2 years pursuant to paragraph 1A above; however, Buyer may terminate this Agreement at any time, with or cause, upon sixty
(60) days' prior written notice to Seller. 

2.) AGREEMENT SCOPE  

A.)
Equipment/Parts/Material/Products 

        Seller agrees to sell to Buyer and Buyer
may elect to purchase from Seller as a preferred supplier, the equipment and services as summarized in attached Schedule "A". 

        Buyer's plants or branch business units will issue purchase orders and/or releases under this supply agreement. Such purchase orders or
releases shall govern the type and quantity to be purchased. If Buyer submits such purchase orders,  Seller shall sell the products set forth pursuant to
the terms of this Agreement and the Purchase Order, subject to the provisions of Section 12
of this Agreement. 

B.)
WEB PURCHASING SYSTEM 

        Seller agrees to work with Buyer's third party provider to be set up on the web purchasing
system (ACeSS). The Buyer purchasing web site will be the primary outlet for Honeywell branch level purchases, the secondary outlet is orders placed
with MasterCard. It is Seller's responsibility to ensure pricing on the web based purchasing system catalog is current, correct and is reflective of the
price structure established in this agreement. 

C.)
COVERAGE 

        All
of Buyer's domestic and international operating departments and subsidiary company plants shall be afforded pricing structure as
defined herein. Additionally, third party contractors and design engineering firms will receive Buyer's pricing upon presentation of  Buyer's agreement
control number 

1

 

D.) EXPECTATIONS 

	•
	Executive
management commitment

	•
	World
class quality (zero defects)

	•
	Reduced
cycle time

	•
	Reduced
cost

	•
	Technical
/ service support

	•
	Document—product
confidentiality

	•
	Mutual
development of long range plans

	•
	Continuing
involvement / assistance after installation

	•
	Commitment
to constant, measurable productivity improvement as defined in Section 7

	•
	Responsiveness
to changing conditions, problems, and requests

	•
	Joint
efforts to advance the objectives of the agreement

	•
	Cost
Reduction Strategies

	•
	Electronic
catalog and electronic catalog capabilities

	•
	On-Time
Delivery

	•
	Lead
Time Reduction to meet Benchmarks

	•
	Employee
Training Programs, e.g. Buyers, Process Improvement Skills

	•
	Participate
in Early Supplier Involvement on Buyer New Product Development Programs

	•
	Inventory
Reduction Programs

	•
	Metrics
and Targets (as defined by Commodity Team)

	•
	Early
Communication on product obsolescence 

3.) QUANTITY  

        Buyer will purchase from Seller such quantities of equipment,
parts, and services available hereunder as it elects. Any forecasts of purchases provided by Buyer to  Seller are for planning purposes only and shall not
constitute a commitment to purchase. 

4.) PRICE/PAYMENT TERMS AND SHIPMENT  

	a.
	The
purchase prices and applicable price structure of the Product during the term of this Agreement shall be as specified in Attachment A. Requests for pricing adjustments after
initial firm price period (12 months from the effective date of this agreement) must be submitted in writing at least 90 days prior to proposed price change date. Any price adjustment
must be fully documented and provide comparison to previous pricing, and is subject to Honeywell review 

        Seller is expected to be forthcoming with price decreases as market conditions change and as productivity and efficiencies reduce costs
for all and will seek to offset unavoidable price increases by driving productivity initiatives and cost reduction opportunities. If a price change is accepted,  Buyer will issue a written amendment to
this Agreement. If unacceptable, Buyer may terminate that
portion of the Agreement on which the prices are unacceptable. 

2

 

	b.
	The
FOB point shall be Carrollton, TX. 

Freight
charges shall be paid by Buyer. 

The
parties agree to work together to determine the most effective methods of transportation. 

	c.
	Payment
terms shall be Net 60. Payment terms for international orders shall be negotiated between the Honeywell buying location and the supplier. All payments shall be made in U.S.
currency unless otherwise noted in Schedule A. Order placement and payment may also be made with Master Card if agreed to by both parties.

	d.
	Duty,
taxes, and customs clearance are normally paid by consignee. The parties agree to work together to determine the most economical means of processing orders. 

6.) REBATES  

	•
	In
addition to competitive discount pricing, Seller agrees to provide Buyer
with a mutually agreed upon Rebate Schedule (See Schedule B)

	•
	Seller will extend discounted pricing to Buyer's Subcontractors and Business
Partners (such as Business Contractor Initiative [BCI])

	•
	Seller will include specified Buyer Subcontractors' and Partners' volume when
calculating rebate

	•
	Seller will remit payment for earned rebates to Buyer quarterly as
established in Schedule D 

7.) MOST FAVORED NATIONS  

        Seller will not sell products to others at a lower price than that provided to  Buyer where
volume levels are equal to or less than Buyer volume as measured on an annualized basis
provided the terms of purchase are comparable. 

8.) PRODUCTIVITY IMPROVEMENT  

        Seller will identify and implement cost reduction opportunities, without sacrificing quality.  Seller agrees to aggressively seek out and advise Buyer of cost reduction opportunities in the areas of,
but not limited to: cycle time reduction, distribution, standardization, paperwork reduction, scrap reduction, material substitution and packaging. 

11.) DELIVERY  

        The parties hereto recognize that on-time deliveries are an important consideration to Buyer in
managing its operations. Therefore, Seller will deliver equipment/product/material no later than the delivery date specified by  Seller at the time of order
release. If Buyer does subsequently alter a Purchase Order, both parties
shall mutually agree on a new delivery date. Seller will maintain a record of its performance compared to delivery dates specified, and agrees to
aggressively pursue programs to accomplish delivery on time, all the time. 

12.) SUBCONTRACTOR PERFORMANCE  

        Subcontractor performance where permitted by Buyer (see Schedule "C" paragraph 4) shall be under the
control and responsibility of Seller and Seller shall be liable for the acts or omission of its subcontractors in failing to comply with its obligations to Buyer hereunder.  Seller recognizes its
responsibility for delivery of items supplied by third parties as well as direct deliveries by Seller.  Seller agrees to follow up as promptly as practicable on quality problems and past-due orders, and
to keep appropriate  Buyer locations advised as to the status of such on a timely basis. Seller agrees to establish 

3

 

a
system to track and evaluate such performance of third parties, and to consider such performance in selecting third party suppliers. 

13.) QUALITY  

        A.) Seller shall maintain a quality control program with the objective to yield one hundred percent (100%)
conformance with quality requirements (i.e., zero defects). 

        B.)  Seller shall use its best efforts to maintain a system designed to minimize defective performance by  Seller's suppliers and subcontractors. 

        C.)
Seller shall actively pursue meeting Buyer's own certification requirements as may be
provided by buyer 

        D.)
Seller shall have electronic catalog and electronic supply chain capabilities. 

14.) SPECIFICATIONS  

        Seller will perform work hereunder in accordance with any specifications provided with the Purchase Order and such
other applicable standards that are incorporated into subject specifications. 

15.) PURCHASE ORDERS/F.A.R. REQUIREMENTS  

        Individual Purchase Orders may contain provisions and conditions in addition to those set forth herein, in accordance with  Buyer's
material policies. Buyer's Standard Terms and Conditions as noted in Schedule "C" constitute an
integral a part of this Agreement and, by reference, a part of each subsequent Purchase Order. In the event of a conflict between the terms and conditions on the reverse side of such Purchase Orders
and the terms and conditions of this Agreement as noted in Schedule "C", the terms and conditions of this Agreement (Schedule "C") shall prevail. 

        Individual
Purchase Orders or other release documents may be subject to Federal Acquisition Regulations. Where required, these orders may be subject to Cost Accounting Standards,
Disclosure Statements, Clean Air and Water Certificates, Certificates of Current Cost and Pricing Data and other Public Laws and Government Regulations. 

16.) INVENTORY  

        Seller will maintain inventory levels to service Buyer's
operations based on historical buying habits as stated lead times as defined in attachment A and as forecasted in discussions between designated Seller
and Buyer representatives. 

17.) RECORDS AND INSPECTION  

	(i)
	For
"list and discount" or "cost-plus" pricing agreements, Seller agrees to maintain, in accordance with
Generally Accepted Accounting Principles and Practices, suitably detailed records as may be necessary to adequately reflect the accuracy of Seller's
charges and invoices for reimbursement under this Agreement. Seller shall permit Buyer's auditors to
have access at all reasonable times to Seller's books and other records pertaining thereto and Seller shall require each of its Subcontractors to do
likewise with respect to their books and records. Seller and each Subcontractor shall also furnish such other information as may be needed by  Buyer's
representatives in auditing the aforesaid accounts. 

Buyer may perform audits at any time prior to two (2) years following completion of this Agreement. If, as a result of any such review or audit,
any invoice submitted by Seller is found to be in error, appropriate adjustment shall be made to such invoice or the next succeeding invoice following
the discovery of such error. If any invoice is found to be in error after 

4

 

submission
of Seller's final invoice for equipment, components, or parts, such error shall be appropriately corrected and any amount due as a result
thereof shall be promptly paid by Seller or Buyer, as the case may be. 

	(ii)
	Buyer's duly authorized representatives shall have the right to visit, observe, and inspect  Seller'sproduction and related
facilities utilized to accomplish the objectives of this Agreement at any time during  Seller's normal business hours. 

18.) METRICS  

        Seller shall monitor and report quarterly (at a minimum) and/or as directed by the Honeywell Commodity Supply
Leader, the following metrics: 

	1.
	Sales/Purchase
volume for Honeywell International, Subcontracts and Business Partners.

	2.
	Rebate
$'s earned based on sales/purchase volume. This report shall segregate and report special negotiated pricing when applicable.

	3.
	Problem
response and resolution

	4.
	Delivery
performance to order delivery schedules

	5.
	Product
quality performance 

        Other
metrics to be mutually agreed as needs change or as warranted, and will use those commercially reasonable efforts to establish targets for improvement for each parameter. 

19.) DOCUMENTS/NOTICES  

        Except as the parties may otherwise agree, all documents and notices concerning this agreement shall be forwarded as follows: 

	A.)
	To: Honeywell

1985
Douglass Drive N

Golden Valley, MN 55422 

        Invoices
and other project specific documents shall be submitted to appropriate Buyer Sites as specified by the Purchase Order or Release
Order under which equipment, components, or parts are to be delivered. 

	B.)
	To: Supplier

3208
Commander Dr.

Carrollton, TX 75006 

20.) ASSIGNMENT  

        This Agreement may not be assigned by either party without the prior written consent of the other party, which consent will not be unreasonably withheld 

21.) ENTIRETIES  

        This Agreement, along with the Schedules incorporated herein, embodies the entire agreement between the parties with respect to the subject matter hereof, and all
prior agreements concerning the same subject are superseded hereby. No modification of this Agreement shall be of any force or effect unless reduced to writing and signed by both parties. 

5

 

        IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives. 

	

Supplier	
 	

Honeywell International
	

By:	
 	

By:
	

Title:	
 	

Title: Commodity Leader
	

Date:	
 	

Date: June xx, 2003

SCHEDULE A  

LEAD TIMES:

AXCESS
PRODUCT LEAD TIMES ARE 4-6 WEEKS A.R.O. 

PRICING LEVEL:  

D2:
THIS PRICING LEVEL REPRESENTS THE DEEPEST DISCOUNT DISTRIBUTOR PRICING THAT AXCESS OFFERS TO IT'S MOST FAVORED NATION RESELLERS. 

	MODEL
	 	ITEM DESCRIPTION
	 	HON Price
	 	List

	 ACTIVE TAG (AT SERIES) ACTIVATORS AND RECEIVERS
	
  AT-132-AT

000.009.011	
 	

ActiveTag Activator—Standalone tag activation transmitter (requires no ATU)	
 	
$	

 	
 	
$	

765
	
AT-132-NR-S

000.010.003	
 	

ActiveTag Network Receiver-Standard—Receiver with both Wiegand and RS-232 serial interface.	
 	
$	

 	
 	
$	

545
	
AT-132-NR-IP

000.010.004	
 	

ActiveTag Network Receiver (IP)—Receiver with both Wiegand and Ethernet TCP/IP interface.	
 	
$	

 	
 	
$	

1,425
	
ACTIVE TAG (AT SERIES) ANTENNAS
	
AT-132-A-PT

800.091.402	
 	

ActiveTag Plex Antenna-Thin—wall mount Plexiglas activation antenna, Size: 0.4 × 4.5 × 37 inches, Range: 6-8 ft with Personnel Tag.	
 	
$	

 	
 	
$	

495
	
AT-132-A-PW

800.091.400	
 	

ActiveTag Plex Antenna-Wide—post/ballard mount Plexiglas activation antenna, Size: 0:5 × 9 × 52 inches, Range: 6-8 ft with Vehicle Tag.	
 	
$	

 	
 	
$	

545
	
At-132-A-PO

800.091.401	
 	

ActiveTag Plex Antenna-Overhead—ceiling mount Plexiglas activation antenna, Size: 0.5 × 21 × 21 inches (2 inch clearance below ceiling) Range: 4 × 4 ft coverage at 9 ft height with Personnel or Asset Tag.	
 	
$	

 	
 	
$	

605
	
AT-132-A-F

800.091.002	
 	

ActiveTag Flex Antenna—thin, flexible activation antenna mounts under carpet, behind pictures, or overhead, Size: 0:2 × 10.5 × 21 inches, Range: 6-8 ft. with Personnel Tag, 4-6 ft. with Asset Tag.	
 	
$	

 	
 	
$	

655
	 	 	 	 	 	 	 	 	 

6

 

	
AT-132-A-F8

800.026.009	
 	

Picture Frame Antenna only—no antenna tuning unit Same as above but used with AT-132-AT and NR series applications	
 	
$	

 	
 	
$	

655
	
AT-132-AF10

800.026.011	
 	

Picture Frame Antenna only—no antenna tuning unit Same as above but used with AT-132-AT and NR series applications	
 	
$	

 	
 	
$	

715
	
AT-132-VL-S

000.005.038	
 	

ActiveTag Road Loop Antenna-Single Lane—in-pavement loop antenna kit for AT-132-AT Activator. Covers single lane up to 16' feet wide (4' X 16' saw cut loop). Includes TX antenna loop cable and AT-132-AW RX antenna kit with bracket, BNC
connectors and mounting hardware.	
 	
$	

 	
 	
$	

325
	
AT-132-VL-D

000.005.039	
 	

ActiveTag Road Loop Antenna-Double Lane—in-pavement loop antenna kit for AT-132-AT Activator. Covers single lane up to 36' feet wide (4' X 36' saw cut loop). Includes TX antenna loop cable and AT-132-AW RX antenna kit with bracket, BNC
connectors and mounting hardware.	
 	
$	

 	
 	
$	

385
	
AT-132-AW

000.005.050	
 	

Receive Antenna-Whip—315 MHz whip RX antenna kit. Includes antenna, bracket, coaxial cable, BNC connectors & mounting hardware.	
 	
$	

 	
 	
$	

105
	
AT-132-AW-B

800.028.002	
 	

Antenna Mounting Bracket-Whip—bracket assembly with BNC connector.	
 	
$	

 	
 	
$	

55
	
RFID TAGS

STANDARD COLOR IS BEIGE (BGE) UNLESS OTHERWISE SPECIFIED

BLACK (BLK) ONLY AVAILABLE WHERE INDICATED, SUBJECT TO AVAILABILITY
	

AT-132RF

800.115.001	
 	

Basic Ruggedized Key Fob Tag—ActiveTag for Personnel ID & Key Control. BLACK	
 	
 	

 	
 	
 	

33.00
	
AT-132PF

800.100.009	
 	

Basic Key Fob Tag — Replaceable Battery—No switch BLACK	
 	
 	

 	
 	
 	

31.00
	
AT-132P

800.100.007	
 	

Personnel Tag—ActiveTag for Personnel ID. Recessed case for PVC insert. Slotted. BLACK	
 	
 	

 	
 	
 	

28.00
	
AT-132PF-C

800.100.011	
 	

Personnel Fob Tag with Duress Button—ActiveTag for Personnel ID w/ button activated duress alarm, Replaceble Battery with Push Button. BLACK.	
 	
 	

 	
 	
 	

49.00
	
AT-132PB

800.097.013	
 	

Personnel Beacon Tag. ActiveTag with beacon signal.	
 	
 	

 	
 	
 	

42.00
	
AT-132V

800.097.008	
 	

Basic Vehicle Tag—ActiveTag for Vehicle ID. BEIGE ONLY.	
 	
 	

 	
 	
 	

28.00
	
AT-132W

800.112.001	
 	

Personnel Wrist Band Tag with Tamper Detect and Beacon	
 	
 	

 	
 	
 	

35.00
	
AT-132V-D	
 	

Vehicle Tag w/ Tamper Alarm & Disable upon removal.	
 	
 	

 	
 	
 	

35.00
	 	 	 	 	 	 	 	 	 

7

 

	
AT-132V-M

800.097.011	
 	

Metal Mount Equipment Tag—ActiveTag for equipment or vehicle ID. Mounts directly to exterior metal surfaces. Operates at extreme temperatures (-40 to +185 F). BLACK ONLY.	
 	
 	

 	
 	
 	

47.00
	
AT-132A

800.100.004	
 	

Basic Asset Tag—ActiveTag for Asset ID. BEIGE OR BLACK	
 	
 	

 	
 	
 	

33.00
	
AT-132A-T

800.097.003	
 	

Asset Tag with Tamper Detect—ActiveTag for Asset ID. Tamper alarm upon removal. BEIGE OR BLACK.	
 	
 	

 	
 	
 	

39.00
	
AT-132AB

800.100.003	
 	

Asset Beacon Tag—ActiveTag with beacon signal for Asset ID. BLACK ONLY.	
 	
 	

 	
 	
 	

47.00
	
AT-132AB-T

800.097.003	
 	

Asset Beacon Tag w/ Tamper Detect—Active Tag w/ beacon signal for Asset ID. Tamper alarm upon removal. BLACK ONLY.	
 	
 	

 	
 	
 	

50.00
	
AT-132AM

800.097.001	
 	

Asset Tag—ActiveTag for Asset ID. Mounts directly to metal surfaces.	
 	
 	

 	
 	
 	

47.00
	
AT-132AM-T

800.097.001	
 	

Asset Tag with Tamper Detect—ActiveTag for Asset ID. Tamper alarm upon removal. Mounts directly to metal surfaces.	
 	
 	

 	
 	
 	

53.00
	
AT-132AMB

800.097.001	
 	

Asset Beacon Tag—ActiveTag with beacon signal for Asset ID. Mounts directly to metal surfaces. BLACK ONLY.	
 	
 	

 	
 	
 	

61.00
	
AT-132AMB-TA

800.097.001	
 	

Asset Beacon Tag w/ Tamper Detect—Active Tag w/ beacon signal for Asset ID. Tamper alarm upon removal. Mounts directly to metal surfaces. BLACK ONLY.	
 	
 	

 	
 	
 	

66.00
	
AT-132AMBA

800.097.001	
 	

Asset Beacon Tag w/ Temperature Monitoring—ActiveTag w/ temperature monitoring for Asset ID. Mounts directly to metal surfaces.	
 	
 	

 	
 	
 	

70.00
	
AT-132AMB-TA

800.097.001	
 	

Asset Beacon Tag w/ Tamper Detect and Temperature Monitoring—ActiveTag w/ tamper alarm upon removal and temperature monitoring for Asset ID. Mounts directly to metal surfaces.	
 	
 	

 	
 	
 	

74.00
	
AT-132-L

800.097.002	
 	

Cargo Tag. Loop Mounted with Tamper detect. Black	
 	
 	

 	
 	
 	

26.00
	
AT-132-V-V

304.003.022	
 	

Hook and Loop Tape for tag mounting RFID Software and Accessories	
 	
 	

 	
 	
 	

2.00
	
RFID SOFTWARE AND ACCESSORIES
	
e/OLS

for EBI 400.020.001	
 	

e/OLS for EBI Axcess Asset Locator point server software (ordered through EBI Specifier)	
 	
 	

 	
 	
 	

4,047.00
	
AT-132-LED

800.061.001	
 	

LED Tag—Installation and diagnostic tool.	
 	
 	

 	
 	
 	

53.00
	 	 	 	 	 	 	 	 	 

8

 

	
AT-132-APS

800.054.001	
 	

Proximity Antenna	
 	
 	

 	
 	
 	

112.00
	
AT-DCR-1

133.001.001	
 	

Dry Contact Relay-Single- dry contact TTL relay for use with AT receivers 12-24VDC, 2 amp.	
 	
 	

 	
 	
 	

48.00
	
AT-132-AT-PS

141.002.006	
 	

Power supply for AT-132-AT (sold as replacement)	
 	
 	

 	
 	
 	

48.00
	
AT-132-NR-S-PS

141.002.007	
 	

Power supply for AT-132-NR-S (sold as replacement)	
 	
 	

 	
 	
 	

27.00
	
AT-132-NR-IP-PS	
 	

Power supply for AT-132-NR-IP (sold as replacement)	
 	
 	

 	
 	
 	

45.00
	
LCR55	
 	

LCR Inductance Meter	
 	
 	

 	
 	
 	

656.00

SCHEDULE B  

        Rebate Process 

SCHEDULE C  

        See Schedule C of this agreement 

9

 
 
 

SCHEDULE C
  PURCHASE ORDER TERMS AND CONDITIONS
  BETWEEN HONEYWELL AND SUPPLIER    
    

1.) ACCEPTANCE AND TERMS AND CONDITIONS:  

        A.) Seller shall accept this Strategic Agreement and any subsequent purchase orders and any amendments thereto by signing the Acceptance Copy and returning it to
the Buyer promptly. 

        B.)
By acceptance of this Strategic Agreement and the subsequent purchase orders, Seller agrees to be bound by, and to comply with all the Terms and Conditions, including any amendments
thereto, and all specifications and other documents referred to in the purchase orders. However, performance of the work called for in the purchase orders, in the absence of the Seller's written
acknowledgment thereto shall be deemed acceptance of the purchase orders. 

        C.)
This Strategic Agreement, and any subsequent purchase order, does not constitute an acceptance by Buyer of any offer to sell, any quotation, or any proposal. Reference in this
Strategic Agreement, or any subsequent purchase order, to any such offer to sell, quotation, or proposal shall in no way constitute a modification of any of the Terms and Conditions in this Strategic
Agreement. 

        ANY ACKNOWLEDGMENT OF THIS STRATEGIC AGREEMENT CONTAINING TERMS AND CONDITIONS INCONSISTENT WITH OR IN ADDITION TO THE TERMS AND CONDITIONS OF THIS STRATEGIC
ALLIANCE IS NOT BINDING UPON BUYER AND, UNLESS SPECIFICALLY ACCEPTED BY BUYER IN WRITING, BUYER HEREBY OBJECTS THERETO.

2.) PRICE AND TAXES:  

        Firm prices specified herein which are accepted by Seller shall not be subject to change without the written approval of Buyer. Buyer generally purchases such
products, goods or equipment referenced herein for resale; thus, in certain circumstances, no taxes should be imposed on the transactions undertaken pursuant to this agreement. Except where otherwise
indicated by Buyer in a Purchase Order or release submitted to Seller, the total price shall not include any federal, state and local sales, use, excise, privilege, payroll, occupational or other
taxes applicable to the goods furnished to Buyer hereunder. 

3.) DELIVERY AND DELAYS:  

        Seller shall deliver the equipment, materials or work ordered by Buyer (herein "goods"), in accordance with the delivery schedule and destination stated in the
purchase orders. Delay beyond the required schedule shall be excused by Buyer in writing (i) if due to an unforeseeable labor dispute or other force majeure cause beyond Seller's control and
without the fault or negligence of Seller and (ii) provided Seller notifies Buyer promptly of the cause of such delay and the date when performance will be resumed by Seller, and Buyer approves
in writing an extension of the time to perform. 

        Seller
shall furnish and maintain ample and competent labor, supervisors, management and engineers of all classes, as well as ample resources and facilitates both in its shops and at the
job-site to meet the schedule specified in the purchase orders. Seller shall begin the work at such time as will ensure its progress and completion as established pursuant to the purchase
orders and shall complete same, free of all liens and charges, at the time specified for completion. 

        If,
in the opinion of the Buyer, Seller fails to prosecute the work with all necessary means and diligence to ensure its completion within the time specified, Buyer may give Seller
written notice to that effect and order Seller at Seller's expense to employ more personnel, have personnel work overtime, extra shifts, Saturdays, Sundays or holidays, and use more machinery,
equipment, tools, and 

10

 

other
resources upon the work. Seller shall specify to Buyer the additional resources to be employed by Seller and Buyer shall decide whether or not such additional resources will be sufficient in the
Buyer's judgment, for the successful prosecution of the work. Should Seller fail to comply with such written demand within ten (10) working days from the date thereof, or within such other time
as Buyer may in writing prescribe, Buyer may without prejudice to any other remedy it may have, employ any necessary means to complete the work within the time specified, including, at Buyer's option,
declaring Seller to be in default and take action as provided for herein or at law or in equity. 

4.) SUB-ORDERS:  

        Buyer has the right to approve or reject any of Seller's sub-suppliers. Seller must submit for Buyer's prior approval, the names of all major
sub-suppliers prior to placing the sub-orders. A sub-supplier shall be considered "major" if the work supplied constitutes more than 10% of the value of the
purchase order. Seller shall incorporate all pertinent Terms and Conditions of this purchase order with Seller's sub-suppliers. Seller shall furnish Buyer one (1) copy of all
sub-orders (unpriced) showing required shipping date, shipping point and the mode of transport. Seller shall advise Buyer in writing of any delivery date not being met by
sub-suppliers as soon as Seller becomes aware of any potential or actual slippage in delivery. 

5.) PACKING AND SHIPPING:  

        The price shall include all charges for packing, freight and transportation to the FOB Point, unless otherwise specified in the purchase orders. All goods shall
be properly marked for identification with Buyer's purchase order and identification numbers. Packaging shall be in accordance with good commercial practices. All packages shall contain a packing
slip, a copy of which shall be mailed directly to the Buyer. Seller shall not make partial shipments, nor deviate from Buyer's shipping instructions, without Buyer's prior written consent. Buyer may
return to Seller or store at Seller's expense any goods delivered in advance of delivery dates shown in the purchase orders. 

6.) INSPECTION AND RECEIPT OF GOODS:  

        All goods covered by the purchase orders are subject to inspection, testing and final acceptance or rejection by Buyer at destination, unless otherwise specified
therein. The goods are also subject to inspection by Buyer at Seller's plant, or Seller's sub-supplier's plant. If after delivery Buyer finds the goods to be defective in workmanship,
material or design or otherwise not in conformity herewith or with the drawings and/or specifications pertaining hereto, Buyer will notify Seller of the defect or non-conformity and
request that the defect or nonconformity be corrected by Seller in an expeditious manner. If, in the opinion of Buyer, Seller has not taken steps to correct the breach within a reasonable time, then
Buyer may, at its discretion, by written notice to Seller (i) rescind the purchase order and, if applicable, return the defective goods to Seller freight collect, (ii) accept the
defective goods at an equitable reduction in price, or (iii) reject and hold the defective goods at Seller's expense subject to their disposal, and require the delivery of replacement goods, or
payment to Buyer of the replacement cost of the goods. If Seller fails to deliver such required replacements promptly, Buyer may (i) replace such goods and charge Seller with the cost incurred
thereby or (ii) terminate the purchase order for default as provided in Clause 16. No inspection, test, or acceptance of goods by Buyer shall relieve Seller of its warranty obligations
or other obligations to meet the requirements hereof. Rights granted to Buyer are in addition to any other remedies provided at law or in equity. If Buyer is to witness inspection as specified in the
purchase orders, the goods shall not be shipped without written release by Buyer's inspectors or a written waiver of inspection. Seller shall notify Buyer's Purchasing Department in writing at least
ten (10) days prior to Seller's scheduled final or, if applicable, preliminary or intermediate inspection dates. 

11

 

7.) RISK OF LOSS/PASSAGE OF TITLE:  

        Seller shall bear all risk of loss or damage to goods covered by the purchase orders until acceptance of delivery by Buyer at the FOB Point. This does not relieve
Seller of risk of loss responsibility for hidden damages discovered after acceptance of delivery. Title to goods shall pass to Buyer at the FOB Point, or sooner if so provided in the purchase order. 

8.) PAYMENT AND INVOICING:  

        Terms of payment, unless otherwise specified in the purchase order, are Net 60 days, less any applicable retention, after receipt of invoice or delivery of
goods at destination, whichever is later. If the purchase order provides for any progress (or advance) payments based on specific milestones or activities, Seller's invoice shall certify to the
accomplishment or performance by Seller of said milestone or activity, and that Buyer has obtained a security interest in such goods to the extent of any payment so made. Final payment for the
purchase orders shall be made by Buyer after Seller has satisfied all contractual requirements, including the submittal requirements as specified in the purchase order. After
each shipment, Seller shall send a separate invoice for each such shipment, stating the purchase order and item numbers, in triplicate, with original Bill of Lading or express shipping receipt.
Payment of invoices made as specified herein, shall not constitute acceptance of goods ordered, and shall be subject to appropriate adjustment for failure of Seller to meet the requirements hereof.
Any applicable cash discount period shall commence on receipt of invoice or delivery of acceptable goods at destination, whichever is later. 

9.) DRAWINGS:  

        Seller shall not fabricate, ship or invoice goods that require Buyer's drawing review without first obtaining such review. Seller shall reimburse Buyer for any
excess expense incurred by Buyer caused by Seller's failure to comply herewith. 

10.) GENERAL WARRANTY:  

        In addition to any other express or implied warranties, Seller warrants to Buyer and each of its Customers that the goods furnished pursuant to the purchase
orders shall be: 

	A)
	Free
of any claim of any nature by any third person and that Seller will convey clear title thereto to Buyer as provided hereunder:

	B)
	Of
merchantable quality, free from all defects in design, workmanship and materials, and will be fit for the particular purposes for which they are purchased and that the goods are
provided in strict accordance with the specifications, samples, drawings, designs or other requirements (including performance specification) approved and adopted by Buyer:

	C)
	In
addition to any other remedies Buyer may have, if goods delivered pursuant to the purchase orders and accepted by Buyer are found within twelve (12) months from the date of
initial installation or eighteen (18) months from shipment whichever is greater, not to be as warranted, Buyer may, upon oral or written notification to Seller and at Seller's expense, require
Seller to take all necessary action to correct the breach in the most expeditious manner as dictated by existing circumstances by repair or replacement of such goods at the job-site.
Seller shall further compensate Buyer for additional direct costs, without respect to margin or fee consideration, it reasonably incurs and documents as a result of the failure clearly demonstrated to
be the fault of Seller, not to exceed $2,000 per failure. If the Seller does not expeditiously take steps to correct the breach, Buyer may do so. However, such action on Buyer's part will not relieve
Seller of its responsibility. 

12

 

Any
goods corrected or furnished in replacement shall also be subject to all the provisions of this clause to the same extent as items initially furnished and a like warranty period commencing with
acceptance of the completed correction or replacement. For any repairs to replacements, Seller will perform all normal tests necessary to verify conformance to the purchase order. Costs for tests
shall be borne by Seller. 

	D)
	Buyer
shall give Seller prompt notice of any breach of the foregoing warranty. The performance of Seller's corrective work shall be scheduled by Buyer and Seller, so as to conform to
the operational requirement of the plant.

	E)
	Any
attempt by Seller to limit, disclaim, or restrict any such warranties or remedies of Buyer, by acknowledgment or otherwise, in accepting or performing under the purchase orders,
shall be null, void, and ineffective without Buyer's written consent. 

11.) SET-OFF:  

        Buyer shall be entitled at all times to set off any amount owing at any time from Seller to Buyer or any of its affiliated companies against any amount payable at
any time by Buyer in connection with the purchase orders. 

12.) CONFIDENTIALITY AND REPRODUCTION RIGHTS:  

        All designs, drawings or other written information obtained by Seller from Buyer in connection with the purchase orders are received in confidence and shall
remain the property of the Buyer. Seller shall not use or disclose any details to any third party and/or any employees other than to the extent necessary for the performance of the purchase orders,
without obtaining the prior written consent of Buyer. Buyer does not grant or convey to Seller by virtue of the purchase orders any reproduction rights to the goods hereunder. Any knowledge or
information which the Seller shall have disclosed or may hereafter disclose to Buyer and which in any way relates to the goods or services covered by the purchase orders shall not, unless otherwise
specifically agreed to in writing by Buyer, be deemed to be confidential or proprietary information, and shall be acquired by Buyer, free from any restrictions (other than a claim for patent
infringement), as part of the consideration of the purchase orders. Furthermore the Seller agrees not to disclose the existence and details of established price, discounts and or rebates negotiated in
this agreement. 

13.) PATENTS:  

        Seller shall defend any allegation, suit or proceeding brought against Buyer or its Customers that is based on a claim that any article or apparatus, or any part
thereof constituting goods furnished under these purchase orders, as well as any device or process necessarily resulting from the use thereof, constitutes an infringement of any patent, if notified
promptly in writing and given authority, information, and assistance (at Seller's expense) for the defense of same, and Seller shall pay all damages and costs awarded therein. In case use of said
article or apparatus, part or device is enjoined, Seller shall, at its own expense (a) procure for Buyer the right to continue using said article or apparatus, part or device or
(b) replace same with a non-infringing equivalent and pay for any installation costs thereof and any other damages incurred by Buyer due to the infringement. 

14.) INDEMNITY AND INSURANCE:  

        Seller shall indemnify and hold harmless Buyer against loss and liability for all personal injury, including death, and property damage caused by equipment,
goods, parts or services provided by Seller or work performed by Seller hereunder, and wherever located, whether performed by its employees or subcontractors. Seller shall defend or settle any suit or
proceeding and pay any judgment and expenses brought against Buyer arising from its purchase and/or use of the goods and services covered by the 

13

 

purchase
orders. Seller shall also hold Buyer free and harmless from all liability and litigation expenses arising out of claims of title to any goods furnished hereunder, claims of trademark or
copyright infringement, or claims or failure to comply with safety and health inspection and labeling statutes. Seller shall maintain insurance coverage satisfactory to Buyer to cover the above and,
upon Buyer's request, shall furnish to Buyer appropriate evidence of such insurance. 

15.) CHANGES:  

        The Buyer may at any time, in writing, make changes within the general scope of the purchase orders, in any one or more of the following: (i) drawings,
designs, or specifications where the goods to be furnished are to be specially manufactured for the Buyer in accordance therewith, (ii) the method of shipment or packing, (iii) the place
of delivery, or (iv) the amount of furnished goods. If any such change causes an increase or decrease in the cost of, or the time required for the performance of any work under the purchase
order, an equitable adjustment shall be made in the contract price or delivery schedule, or both, and the purchase order shall be modified in writing accordingly. Any claim by the Seller for
adjustment under this claim must be asserted within ten (10) days from the date of receipt by the Seller of the notification of change; provided, however, that the Buyer, if it so chooses, may
receive and act upon any such claim asserted at any time prior to the final payment under the purchase order. Any change in the purchase order shall be authorized only by a duly executed Purchase
Order Amendment. 

16.) TERMINATION FOR DEFAULT:  

        Time is of the essence for the purchase order. If (i) Seller fails to make any delivery, perform any services in accordance with the specified delivery
dates, ceases to conduct its operations in the normal course of business, including the inability to meet its obligations as they mature, or otherwise fails to comply with the purchase order or
(ii) Seller fails to make progress to such an extent that performance of the work is endangered, or (iii) any proceeding is filed by or against Seller in bankruptcy or insolvency, or for
appointment for the benefit of creditors, and Seller does not remedy such failure within five (5) days after written notice by Buyer, Buyer may (in addition to any other remedy provided by law)
terminate all or any part of the purchase order by written notice to Seller without any liability, except for deliveries made and/or for goods then completed and subsequently delivered in accordance
with the terms of the purchase order. Buyer may purchase substitute goods elsewhere and Seller shall be liable to and reimburse Buyer for any excess cost occasioned thereby. Upon such termination
herein or under Clause 17, Seller shall stop work, notify subcontractors to stop work and protect any of Buyer's property in its or in its subcontractor's possession until transfer of such
property by Buyer. 

17.) TERMINATION FOR CONVENIENCE:  

        Buyer may at any time by written notice to Seller cancel the purchase order or any part thereof at its convenience for reasons other than default as provided in
Clause 16 hereof, in which event Buyer shall pay Seller's actual costs incurred in the execution of Seller's work hereunder to date of cancellation. If any goods covered hereby are standard
stock merchandise, Buyer may return such goods to Seller for credit less 15% restocking fee. Products will be returned complete in as shipped condition, or if not the restocking fee shall be 25%.
Buyer shall have no liability for any anticipated profit and/or overhead. 

18.) RIGHT TO ASSURANCES:  

        Whenever Buyer in good faith has reason to question Seller's intent to perform, he may demand in writing that Seller give a written unqualified assurance of his
intent to perform. In the event that no assurance is given within five (5) days of such demand, Buyer may treat Seller's failure to provide such assurance as an anticipated repudiation of the
purchase order. 

14

 

19.) EXTRA CHARGES:  

        No extra charge of any kind will be allowed unless specifically agreed to in writing by Buyer's authorized representative. 

20.) NON-ASSIGNMENT AND SUBCONTRACTS:  

        Seller shall not assign the purchase order or any rights hereunder or subcontract all (or substantially all) of the work called for hereunder without the prior
written consent of Buyer, and any attempted assignment without Buyer's written approval shall be voidable at the option of Buyer. 

21.) BUYER'S PROPERTY:  

        Unless otherwise agreed in writing, all tools, equipment, or material of every description furnished to Seller by Buyer or specially paid for by Buyer, and any
replacement thereof, or any materials affixed or attached thereto, shall be and remain the personal property of Buyer. Such property, and whenever practical each individual item thereof, shall be
plainly marked or otherwise adequately identified by Seller as "Property of Honeywell" and shall be safely stored separate and apart from Seller's property. Seller shall not substitute any other
property for Buyer's property and shall not use such property except in filling Buyer's purchase orders. Such property of Buyer, while in Seller's custody or control, shall be held at Seller's risk,
shall be kept insured by Seller at Seller's expense in any amount equal to the replacement costs with loss payable to Buyer and shall be subject to removal at Buyer's written request, in which event
Seller shall prepare such property for shipment and shall redeliver to Buyer in the same condition as originally received by Seller, reasonable wear and tear excepted, all at Seller's expense. 

22.) COMPLIANCE WITH LAWS:  

        Seller agrees to comply with all applicable provisions of any federal, state, or local law or ordinance and all lawful orders, rules and regulations issued there
under; and any provisions, representations or agreements, or contractual clauses required thereby to be included or incorporated by reference or operation of law in the contract resulting from
acceptance of the order and dealing with: 

	

Equal Opportunity	
 	

(Executive Order 11246 as amended by Executive Orders 11375 and 12086)
	

Employment of Veterans	
 	

(Executive Order 11701)
	

Employment of Handicapped	
 	

(Executive Order 11758 as amended by Executive Order 11867)
	

Employment Discrimination Because of Age	
 	

(Executive Order 11141)
	

Utilization of Disadvantaged Business	
 	

(Executive Order 11625 & Public Law 95507) Enterprises

        Seller
certifies that with respect to purchase orders which exceed $10,000, Seller is in compliance with the requirements for non-segregated facilities set for in 41C60 1.8. 

        Seller
warrants that each chemical substance constituting or contained in goods sold or otherwise transferred to Buyer hereunder is on the list of chemical substances compiled and
published by the Administrator of the Environmental Protection Administration pursuant to the Toxic Substances Control Act (P.L. 94. 469), as amended. 

15

 

        Seller
certifies and guarantees that the goods supplied hereunder are in compliance with applicable sections of the Federal Consumer Product Safety Act (P.L. 92. 573), as amended, and
lawful standards and regulations thereunder. Further, in accepting the purchase order, Seller represents that the goods to be furnished hereunder were or will be produced in compliance with the
requirements of the Fair Labor Standards Act of 1938, as amended, including Section 12(a) and Seller shall insert a certificate to that effect on all invoices submitted in connection with the
purchase order. 

        Seller
agrees to comply with all requirements of 29CFR Part 1910.1200, Hazard Communication, of the Occupational Safety and Health Act and PA Worker and Community Right to Know
Act 1984-159, including the submittal by the Seller of all applicable Material Safety Data Sheets prior to shipment of ordered goods to the Buyer. 

23.) WAIVER:  

        The waiver by Buyer of any nonperformance or breach by Seller of any provisions of the purchase order must be in writing and shall not be construed as waiving any
such provision in the future. 

24.) ENTIRE AGREEMENT AND ORDER OF PRECEDENCE:  

        The purchase order with such documents as are expressly incorporated herein by reference, is intended by the parties as a final expression of their agreement with
respect to such terms as are included herein, and is intended also as a complete and exclusive statement of the terms of their agreement. No course or prior dealings between the parties and no usage
of the trade shall be relevant to determine the meaning of this agreement even though the accepting or acquiescing party has knowledge of the nature of the performance and opportunity for objection. 

        In
case of any conflict between these Terms and Conditions and the other more specific provisions of the purchase order, such other more specific provisions shall control. The Terms and
Conditions of this agreement shall govern unless specific provisions have been called out in the body of the Purchase Order. 

25.) WAIVER OF LIENS:  

        Before the Seller shall be entitled to final payment, Seller shall satisfy Buyer that all bills for labor, material, services, licenses, and other expenses for
which Buyer might be sued or for which a lien might be filed, have been fully satisfied. The Seller shall execute and file with Buyer a release, whereby the Seller shall release any and all claims,
actions, and liens against Buyer on account of the purchase
order and shall agree to save harmless the Seller from future claims, actions, and liens. Application for final payment shall be accompanied by Waivers and Releases of Liens for all subcontractors and
material men, if required, by Buyer. 

26.) FOREIGN PURCHASES:  

        A.) If the front side indicates Purchaser is Importer of Record, the following applies to all transactions involving imported goods; Paragraph B does not
apply. 

        ANTI-DUMPING:
Seller warrants that all sales made hereunder are or will be made at not less than fair value under the United States Anti-dumping Law (19 U.S.C.
Sec. 160 et seq), and Seller will indemnify, defend and hold Purchaser harmless from and against any costs or expenses (including but not limited to any anti-dumping duties which may be
imposed) arising out of or in connection with any breach of this warranty. 

16

 

        B.)
If front side indicates Seller is Importer of Record, the following applies to all transactions involving imported goods; Paragraph A does not apply: 

        IMPORTER
OF RECORD: Seller agrees that Purchaser will not be a party to the importation of the goods, that the transaction(s) represented by this order will be consummated subsequent to
importation, and that Seller will neither cause nor permit Purchaser's name to be shown as "Importer of Record" on any customs declaration. 

        DRAWBACK:
Upon request and where applicable, Seller will provide Purchaser Customs Form 7543 entitled "Certificate of Delivery" properly executed. 

SCHEDULE E  

        This schedule shall document: 

	•
	Axcess's
Product fulfillment support organization and process

	•
	AXCESS Inc.
Product Fulfillment Support Organization and Process: 

        Purchase
Order Contacts: 

V.P.
Business Development

Production Mgr.

Channel Sales Support Mgr. 

Process: 

	1.
	P.O.s
are received and quality assessed for correctness by one of the above contacts

	2.
	Production
processes P.O. and assigns ship dates.

	3.
	Production
sends PO to accounting for order entry and assignment of Sales Order number.

	4.
	When
order is ready to ship production generates picking sheet and packing list

	5.
	Accounting
generates an Invoice and mails it to the customer

	6.
	Product
is assigned to a shipper for delivery. 

SCHEDULE—F  

Axcess'
Product Sales and Technical support organization and process 

Technical
Support Contacts: 

Technical
Service Hotline: 

Contact: 

Customer
Support Mgr. 

        For
technical support or Return Authorization information contact Tom Beadle. 

        No
product will be accepted at our shipping dock without a valid RMA # written on the outside of the package. 

17

QuickLinks

Exhibit 10.8

WORLD-WIDE SUPPLY AGREEMENT BETWEEN HONEYWELL INTERNATIONAL AND AGREEMENT CONTROL NUMBER FPHW2084

SCHEDULE C PURCHASE ORDER TERMS AND CONDITIONS BETWEEN HONEYWELL AND SUPPLIER

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