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Exhibit 4.3    
    

CASCADES INC.

71/4% Senior Notes due 2013  

REGISTRATION RIGHTS AGREEMENT 

New
York, New York

July 8, 2003 

Citigroup
Global Markets Inc.

CIBC World Markets Corp.

Scotia Capital (USA) Inc. 

As
Representatives of the Initial Purchasers

c/o Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013 

Dear
Sirs: 

        Cascades Inc.,
a corporation organized under the laws of the Province of Quebec (the "Company"), proposes to issue and sell its 71/4% Senior Notes due 2013 (the
"Notes") to certain purchasers (the "Initial Purchasers"), upon the terms set forth in a Purchase Agreement, dated as of June 30, 2003 (the
"Purchase Agreement"), between the Company, the subsidiary guarantors signatory thereto and the Initial Purchasers listed on Schedule I hereto, relating to the initial placement of the Notes
(the "Initial Placement"). The Notes will be guaranteed (the "Guarantees" and, together with the Notes, the "Securities") on an unsecured senior basis by each of the Company's direct and indirect
Canadian and U.S. restricted subsidiaries set forth on the signature page hereto (the "Guarantors"). To induce the Initial Purchasers to enter into the Purchase Agreement and to satisfy a condition of
our obligations thereunder, the Company and the Guarantors agree with you for your benefit and the benefit of the holders from time to time of the Securities (including the Initial Purchasers) (each a
"Holder" and, together, the "Holders"), as follows: 

        1.    Definitions.    Capitalized terms used herein without definition shall have their respective meanings set forth
in the Purchase Agreement. As used in this Agreement, the following capitalized defined terms shall have the following meanings: 

        "Act"
shall mean the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder. 

        "Affiliate"
of any specified Person shall mean any other Person that, directly or indirectly, is in control of, is controlled by, or is under common control with, such specified Person.
For purposes of this definition, control of a Person shall mean the power, direct or indirect, to direct or cause the direction of the management and policies of such Person whether by contract or
otherwise; and the terms "controlling" and "controlled" shall have meanings correlative to the foregoing. 

        "Broker-Dealer"
shall mean any broker or dealer registered as such under the Exchange Act. 

        "Business
Day" shall mean any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorized or obligated by law to close
in New York City or Montreal. 

        "Commission"
shall mean the Securities and Exchange Commission. 

        "Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder. 

 

        "Exchange
Offer Registration Period" shall mean the 90-day period following the consummation of the Registered Exchange Offer, exclusive of any period during which any stop
order shall be in effect suspending the effectiveness of the Exchange Offer Registration Statement. 

        "Exchange
Offer Registration Statement" shall mean a registration statement of the Company and the Guarantors on an appropriate form under the Act with respect to the Registered Exchange
Offer, all amendments and supplements to such registration statement, including post-effective amendments thereto, in each case including the Prospectus contained therein, all exhibits
thereto and all material incorporated by reference therein. 

        "Exchanging
Dealer" shall mean any Holder (which may include any Initial Purchaser) that is a Broker-Dealer and elects to exchange for New Securities any Securities that it acquired for
its own account as a result of market-making activities or other trading activities (but not directly from the Company or any Affiliate of the Company) for New Securities. 

        "Offering
Memorandum" shall have the meaning set forth in the Purchase Agreement. 

        "Holder"
shall have the meaning set forth in the preamble hereto. 

        "Indenture"
shall mean the Indenture relating to the Securities, dated as of February 5, 2003 and as amended by the First Supplemental Indenture, dated as of May 30, 2003,
between the Company, the Guarantors and The Bank of New York, as trustee, as the same may be amended from time to time in accordance with the terms thereof. 

        "Initial
Placement" shall have the meaning set forth in the preamble hereto. 

        "Initial
Purchaser" shall have the meaning set forth in the preamble hereto. 

        "Losses"
shall have the meaning set forth in Section 7(d) hereof. 

        "Majority
Holders" shall mean the Holders of a majority of the aggregate principal amount of Securities registered under a Registration Statement. 

        "Managing
Underwriters" shall mean the investment banker or investment bankers and manager or managers that shall administer an underwritten offering. 

        "New
Securities" shall mean debt securities issued as evidence of the same continuing debt of the Company and the Guarantors identical in all material respects to the Securities (except
that the cash interest and interest rate step-up provisions and the transfer restrictions shall be modified or eliminated, as appropriate) and to be issued under the Indenture. 

        "Prospectus"
shall mean the prospectus included in any Registration Statement (including, without limitation, a prospectus that discloses information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A under the Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Securities or the New Securities covered by such Registration Statement, and all amendments and supplements thereto and all material incorporated by reference therein. 

        "Purchase
Agreement" shall have the meaning set forth in the preamble hereto. 

        "Registered
Exchange Offer" shall mean the proposed offer of the Company to issue and deliver to the Holders of the Securities that are not prohibited by any law or policy of the
Commission from participating in such offer, in exchange for the Securities, a like aggregate principal amount of the New Securities. 

        "Registration
Statement" shall mean any Exchange Offer Registration Statement or Shelf Registration Statement that covers any of the Securities or the New Securities pursuant to the
provisions of this Agreement, any amendments and supplements to such registration statement, 

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including
post-effective amendments (in each case including the Prospectus contained therein), all exhibits thereto and all material incorporated by reference therein. 

        "Securities"
shall have the meaning set forth in the preamble hereto. 

        "Shelf
Registration" shall mean a registration effected pursuant to Section 3 hereof. 

        "Shelf
Registration Period" has the meaning set forth in Section 3(b)(ii) hereof. 

        "Shelf
Registration Statement" shall mean a "shelf" registration statement of the Company and the Guarantors pursuant to the provisions of Section 3 hereof which covers some or
all of the Securities on an appropriate form under Rule 415 under the Act, or any similar rule that may be adopted by the Commission, amendments and supplements to such registration statement,
including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein. 

        "Trustee"
shall mean the trustee with respect to the Securities under the Indenture. 

        "underwriter"
shall mean any underwriter of Securities in connection with an offering thereof under a Shelf Registration Statement. 

        2.    Registered Exchange Offer.    

        (a)   The
Company and the Guarantors shall prepare and, not later than 90 days following the date of the original issuance of the Securities (or if such 90th day is not
a Business Day, the next succeeding Business Day), shall file with the Commission the Exchange Offer Registration Statement with respect to the Registered Exchange Offer. The Company and the
Guarantors shall use their respective reasonable best efforts to cause the Exchange Offer Registration Statement to become effective under the Act within 180 days of the date of the original
issuance of the Securities (or if such 180th day is not a Business Day, the next succeeding Business Day). 

        (b)   Upon
the effectiveness of the Exchange Offer Registration Statement, the Company and the Guarantors shall promptly commence the Registered Exchange Offer, it being the
objective of such Registered Exchange Offer to enable each Holder electing to exchange Securities for New Securities (assuming that such Holder is not an Affiliate of the Company, acquires the New
Securities in the ordinary course of such Holder's business, has no arrangements with any Person to participate in the distribution of the New Securities and is not prohibited by any law or policy of
the Commission from participating in the Registered Exchange Offer) to trade such New Securities from and after their receipt without any limitations or restrictions under the Act and without material
restrictions under the securities laws of a substantial proportion of the several states of the United States. 

        (c)   In
connection with the Registered Exchange Offer, the Company and the Guarantors shall: 

        (i)    mail
or electronically transmit to each Holder a copy of the Prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of
transmittal and related documents; 

        (ii)   keep
the Registered Exchange Offer open for not less than 30 Business Days and not more than 45 Business D ays after the date notice thereof is mailed to the Holders
(or, in each case, longer if required by applicable law); 

        (iii)  use
their respective reasonable best efforts to keep the Exchange Offer Registration Statement continuously effective under the Act, supplemented and amended as
required under the Act, to ensure that it is available for sales of New Securities by Exchanging Dealers during the Exchange Offer Registration Period; 

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        (iv)  utilize
the services of a depositary for the Registered Exchange Offer with an address in the Borough of Manhattan in New York City, which may be the Trustee or an
Affiliate of either of them; 

        (v)   permit
Holders to withdraw tendered Securities at any time prior to the close of business, New York time, on the last Business Day on which the Registered Exchange Offer
is open; 

        (vi)  prior
to effectiveness of the Exchange Offer Registration Statement, provide a supplemental letter to the Commission (A) stating that the Company and the
Guarantors are conducting the Registered Exchange Offer in reliance on the position of the Commission in Exxon Capital Holdings Corporation (pub. avail.
May 13, 1988) and Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991); and (B) including a representation that the
Company and the Guarantors have not entered into any arrangement or understanding with any Person to distribute the New Securities to be received in the Registered Exchange Offer and that, to the best
of the Company's and the Guarantors' information and belief, each Holder participating in the Registered Exchange Offer is acquiring the New Securities in the ordinary course of business and has no
arrangement or understanding with any Person to participate in the distribution of the New Securities; and 

        (vii) comply
in all material respects with all applicable laws. 

        (d)   As
soon as practicable after the close of the Registered Exchange Offer, the Company and the Guarantors shall: 

        (i)    accept
for exchange all Securities validly tendered and not validly withdrawn pursuant to the Registered Exchange Offer; 

        (ii)   deliver
to the Trustee for cancellation in accordance with Section 5(s) all Securities so accepted for exchange; and 

        (iii)  cause
the Trustee promptly to authenticate and deliver to each Holder of Securities a principal amount of New Securities equal to the principal amount of the
Securities of such Holder so accepted for exchange. 

        (e)   Each
Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder using the Registered Exchange Offer to participate in a distribution of the New
Securities, if the resales are of New Securities obtained by such Holder in exchange for Securities acquired by such Holder directly from the Company or one of its Affiliates, (x) could not
under Commission policy as in effect on the date of this Agreement rely on the position of the Commission in Morgan Stanley and Co., Inc. (pub.
avail. June 5, 1991) and Exxon Capital Holdings Corporation (pub. avail. May 13, 1988), as interpreted in the Commission's letter to
Shearman & Sterling dated July 2, 1993 and similar no-action letters; and (y) must comply with the registration and prospectus delivery requirements of the Act in
connection with any secondary resale transaction and such transaction must be covered by an effective registration statement containing the selling security holder information required by Item 507 or
508, as applicable, of Regulation S-K under the Act. Accordingly, each Holder participating in the Registered Exchange Offer shall be required in writing to represent to the Company
and the Guarantors that, at the time of the consummation of the Registered Exchange Offer: 

        (i)    any
New Securities received by such Holder will be acquired in the ordinary course of business; 

        (ii)   such
Holder will have no arrangement or understanding with any Person to participate in the distribution of the Securities or the New Securities within the meaning of
the Act; 

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        (iii)  such
Holder is not an Affiliate of the Company or any of the Guarantors (or if it is, that it will comply with the registration and prospectus delivery requirements of
the Act to the extent applicable); and 

        (iv)  if
such Holder is a broker-dealer, that it will receive New Securities for its own account in exchange for Securities that were acquired as a result of market-making
activities or other trading activities and that it will deliver a prospectus in connection with any resale of such New Securities. 

        (f)    If
any Initial Purchaser determines that it is not eligible to participate in the Registered Exchange Offer with respect to the exchange of Securities constituting any
portion of an unsold allotment, at the request of such Initial Purchaser, the Company and the Guarantors shall issue and deliver to such Initial Purchaser or the Person purchasing New Securities from
such Initial Purchaser, in each case if such New Securities have been registered under a Shelf Registration Statement as contemplated by Section 3 hereof, in exchange for such Securities, a
like principal amount of New Securities. The Company and the Guarantors shall use their respective best efforts to cause the CUSIP Service Bureau to issue the same CUSIP number for such New Securities
as for New Securities issued pursuant to the Registered Exchange Offer. 

        3.    Shelf Registration.    

        (a)   If
(i) due to any change in law or applicable interpretations thereof by the Commission's staff, the Company determines upon advice of its outside counsel that it
is not permitted to effect the Registered Exchange Offer as contemplated by Section 2 hereof; or (ii) for any other reason the Exchange Offer Registration Statement is not declared
effective by the Commission under the Act within 180 days of the date of the original issuance of the Securities or the Registered Exchange Offer is not consummated within 45 Business Days of
the date of the effectiveness of the Exchange Offer Registration Statement; (iii) any Initial Purchaser so requests with respect to Securities that are not eligible to be exchanged for New Securities
in the Registered Exchange Offer and that are held by it following consummation of the Registered Exchange Offer; (iv) any Holder (other than an Initial Purchaser) is not eligible to participate in
the Registered Exchange Offer, or in the case of any Holder that participates in the Registered Exchange Offer, does not receive freely tradable New Securities in the Registered Exchange Offer, other
than by reason of such Holder being an Affiliate of the Company (it being understood that the requirement that a participating Broker-Dealer deliver the prospectus contained in the Exchange Offer
Registration Statement in connection with sales of New Securities shall not result in such New Securities being not "freely tradable"); or (v) in the case of any Initial Purchaser that
participates in the Registered Exchange Offer or acquires New Securities pursuant to Section 2(f) hereof, such Initial Purchaser does not receive freely tradeable New Securities in exchange for
Securities constituting any portion of an unsold allotment, other than by reason of such Holder being an Affiliate of the Company (it being understood that (x) the requirement that an Initial
Purchaser deliver a Prospectus containing the information required by Item 507 or 508 of Regulation S-K under the Act in connection with sales of New Securities acquired in
exchange for such Securities shall not result in such New Securities being not "freely tradeable"; and (y) the requirement that an Exchanging Dealer deliver a Prospectus in connection with
sales of New Securities acquired in the Registered Exchange Offer in exchange for Securities acquired as a result of market-making activities or other trading activities shall not result in such New
Securities being not "freely tradeable"), the Company and the Guarantors shall effect a Shelf Registration Statement in accordance with subsection (b) below. 

        (b)   (i)  The
Company and the Guarantors shall as promptly as practicable (but in no event more than 90 days after so required or requested pursuant to this
Section 3), file with the Commission and thereafter shall use their respective reasonable best efforts to cause to be declared effective under the Act a Shelf Registration Statement in
accordance with Rule 415 under 

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the
Act relating to the offer and sale of the Securities or the New Securities, as applicable, by the Holders thereof from time to time in accordance with the methods of distribution elected by such
Holders and set forth in such Shelf Registration Statement; provided, however, that no Holder shall be entitled to have the Securities held by it
covered by such Shelf Registration Statement unless such Holder agrees in writing to be bound by all of the provisions of this Agreement applicable to such Holder; and provided
further, that with respect to New Securities received by an Initial Purchaser in exchange for Securities constituting any portion of an unsold allotment, the Company and the
Guarantors may, if permitted by current interpretations by the Commission's staff, file a post-effective amendment to the Exchange Offer Registration Statement containing the
information required by Item 507 or 508 of Regulation S-K, as applicable, in satisfaction of their obligations under this subsection with respect thereto, and any such Exchange
Offer Registration Statement, as so amended, shall be referred to herein as, and governed by the provisions herein applicable to, a Shelf Registration Statement. 

        (ii)   The
Company and the Guarantors shall use their respective reasonable best efforts to keep the Shelf Registration Statement continuously effective, supplemented and
amended as required by the Act, in order to permit the Prospectus forming part thereof to be usable by Holders for a period of two years from the date the Shelf Registration Statement is declared
effective by the Commission or such shorter period that will terminate when all the Securities or New Securities, as applicable, covered by the Shelf Registration Statement (i) have been
sold pursuant to the Shelf Registration Statement (in any such case, such period being called the "Shelf Registration Period") or (ii) are eligible for resale under Rule 144(k). The
Company and the Guarantors shall be deemed not to have used their respective reasonable best efforts to keep the Shelf Registration Statement effective during the requisite period if they voluntarily
take any action that would result in Holders of Securities covered thereby not being able to offer and sell such Securities during that period, unless (A) such action is required by applicable
law; or (B) such action is taken by the Company and the Guarantors in good faith and for valid business reasons (not including avoidance of the Company's and the Guarantors' obligations
hereunder), including the acquisition or divestiture of assets (to the extent permitted by the terms of the Indenture), so long as the Company and the Guarantors promptly thereafter comply with the
requirements of Section 5(k) hereof, if applicable. 

        (iii)  The
Company and the Guarantors shall cause the Shelf Registration Statement and the related Prospectus and any amendment or supplement thereto, as of the effective
date of the Shelf Registration Statement or such amendment or supplement, (A) to comply as to form in all material respects with the applicable requirements of the Act; and (B) not to
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. 

        4.    Special Interest.    If (a) on or prior to the 90th day following the original issue date of the
Securities, neither the Exchange Offer Registration Statement nor the Shelf Registration Statement has been filed with the Commission, (b) on or prior to the 180 th day following the original
issue date of the Securities, neither the Exchange Offer Registration Statement nor the Shelf Registration Statement has been declared effective by the Commission, (c) on or prior to the 45th
Business Day following the date the Exchange Offer Registration Statement is declared effective, the Registered Exchange Offer has not been consummated, or (d) after either the Exchange Offer
Registration Statement or the Shelf Registration Statement has been declared effective, such Registration Statement thereafter ceases to be effective or usable (other than as permitted by the proviso
to Section 5(k)) in connection with resales of Securities or New Securities in accordance with and during the periods specified in this Agreement unless such Registration Statement ceases to be
effective or usable as a result of the failure by any Holder to provide the Company with any information required to be so provided by Items 507 or 508 

6

 

of
Regulation S-K, as applicable (each such event referred to in clauses (a) through (d), a "Registration Default"), interest ("Special Interest") will accrue on the
principal amount of the Securities and the New Securities (in addition to the stated interest on the Securities and New Securities) from and including the date on which any such Registration Default
shall occur to but excluding the date on which all Registration Defaults have been cured. Special Interest will accrue at a rate of 0.25% per annum during the 90-day period immediately
following the occurrence of such Registration Default and shall increase by 0.25% per annum at the end of each subsequent 90-day period, but in no event shall such rate exceed 1.00% per
annum. 

        All
obligations of the Company and the Guarantors set forth in the preceding paragraph that are outstanding with respect to any Security at the time such Security is exchanged for a New
Security shall survive until such time as all such obligations with respect to such Security have been satisfied in full. 

        5.    Additional Registration Procedures.    In connection with any Shelf Registration Statement and, to the extent
applicable, any Exchange Offer Registration Statement, the following provisions shall apply. 

        (a)   The
Company and the Guarantors shall: 

        (i)    furnish
to you, not less than five (5) Business Days prior to the filing thereof with the Commission, a copy of any Exchange Offer Registration Statement and any
Shelf Registration Statement, and not less than three (3) Business Days prior to the filing thereof with the Commission, a copy of each amendment thereof and each amendment or supplement, if
any, to the Prospectus included therein (including, upon request, all documents incorporated by reference therein after the initial filing), and shall use their respective reasonable best efforts to
reflect in each such document, when so filed with the Commission, such comments as you reasonably propose; 

        (ii)   include
the information substantially as set forth in, Annex A hereto on the facing page of the Exchange Offer Registration Statement, in Annex B hereto in the forepart
of the Exchange Offer Registration Statement in a section setting forth details of the Exchange Offer, in Annex C hereto in the underwriting or plan of distribution section of the Prospectus contained
in the Exchange Offer Registration Statement, and in Annex D hereto in the letter of transmittal delivered pursuant to the Registered Exchange Offer; 

        (iii)  if
requested by an Initial Purchaser, include the information required by Item 507 or 508 of Regulation S-K, as applicable, in the Prospectus
contained in the Exchange Offer Registration Statement, provided that such names and such other information are provided in writing to the Company by
the Initial Purchasers at least five (5) Business Days prior to the filing of the Shelf Registration Statement; and 

        (iv)  in
the case of a Shelf Registration Statement, include the names of the Holders that propose to sell Securities pursuant to the Shelf Registration Statement as selling
security holders and the other information required under Item 507 of Regulation S-K under the Act, provided that such names and such other information are provided in
writing to the Company by the Initial Purchasers at least five (5) Business Days prior to the filing of the Shelf Registration Statement. 

        (b)   The
Company and the Guarantors shall use their respective reasonable best efforts to ensure that: 

        (i)    any
Registration Statement and any amendment thereto and any Prospectus forming part thereof and any amendment or supplement thereto complies as to form in all material
respects with the Act and the rules and regulations thereunder; and 

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         (ii)  any
Registration Statement and any amendment thereto does not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading. 

        (c)   The
Company and the Guarantors shall advise you, the Holders of Securities covered by any Shelf Registration Statement that have individually indicated in the selling
noteholder questionnaire that they wish to be so advised and any Exchanging Dealer under any Exchange Offer Registration Statement, that has provided in writing to the Company and the Guarantors a
telephone or facsimile number and address for notices, and, if requested by you or any such Holder or Exchanging Dealer, shall confirm such advice in writing (which notice pursuant to
clauses (ii) through (v) hereof shall be accompanied by an instruction to suspend the use of the Prospectus until the Company and the Guarantors shall have remedied the basis for such
suspension): 

          (i)  when
the Registration Statement and any amendment thereto has been filed with the Commission and when the Registration Statement or any post-effective
amendment thereto has become effective; 

         (ii)  of
any request by the Commission for any amendment or supplement to the Registration Statement or the Prospectus or for additional information; 

        (iii)  of
the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; 

        (iv)  of
the receipt by the Company and the Guarantors of any notification with respect to the suspension of the qualification of the securities included therein for sale in
any jurisdiction or the initiation of any proceeding for such purpose; and 

         (v)  of
the happening of any event that requires any change in the Registration Statement or the Prospectus so that, as of such date, the statements therein are not
misleading and do not omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of the Prospectus, in the light of the circumstances under
which they were made) not misleading. 

        (d)   The
Company and the Guarantors shall use their respective reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of any Registration
Statement, or the qualification of the securities therein for sale in any jurisdiction as may be reasonably required by any Holder, at the earliest possible time. 

        (e)   The
Company and the Guarantors shall furnish to each Holder of Securities covered by any Shelf Registration Statement that has indicated in the selling noteholder
questionnaire that they wish to receive, without charge, at least one copy of such Shelf Registration Statement and any post-effective amendment thereto, including all material
incorporated therein by reference, and, if the Holder has so requested in writing, all exhibits thereto (including exhibits incorporated by reference therein). 

        (f)    The
Company and the Guarantors shall, during the Shelf Registration Period, deliver to each Holder of Securities covered by any Shelf Registration Statement, without
charge, as many copies of the Prospectus (including each preliminary Prospectus) included in such Shelf Registration Statement and any amendment or supplement thereto as such Holder may reasonably
request. The Company and the Guarantors consent to the use of the Prospectus or any amendment or supplement thereto by each of the selling Holders of securities in connection with the offering and
sale of the securities covered by the Prospectus, or any amendment or supplement thereto, included in the Shelf Registration Statement for the Shelf Registration Period. 

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        (g)   The
Company and the Guarantors shall furnish to each Exchanging Dealer which so requests, without charge, at least one copy of the Exchange Offer Registration Statement
and any post-effective amendment thereto, including all material incorporated by reference therein, and, if the Exchanging Dealer so requests in writing, all exhibits thereto (including
exhibits incorporated by reference therein). 

        (h)   The
Company and the Guarantors shall promptly deliver to each Initial Purchaser, each Exchanging Dealer and each other Person required to deliver a Prospectus during the
Exchange Offer Registration Period, without charge, as many copies of the Prospectus included in such Exchange Offer Registration Statement and any amendment or supplement thereto as any such Person
may reasonably request. The Company and the Guarantors consent to the use of the Prospectus or any amendment or supplement thereto by any Initial Purchaser, any Exchanging Dealer and any such other
Person that may be required to deliver a Prospectus following the Registered Exchange Offer in connection with the offering and sale of the New Securities covered by the Prospectus, or any amendment
or supplement thereto, included in the Exchange Offer Registration Statement for the Exchange Offer Registration Period. 

        (i)    Prior
to the Registered Exchange Offer or any other offering of Securities or New Securities pursuant to any Registration Statement, the Company and the Guarantors shall
use their respective reasonable best efforts to arrange, if necessary, for the qualification of the Securities or the New Securities for sale under the laws of such jurisdictions as any Holder shall
reasonably request in writing to the Company to maintain such qualification in effect so long as reasonably required; provided that in no event shall
the Company or the Guarantors be obligated to qualify to do business in any jurisdiction where they are not then so qualified or to take any action that would subject them to service of process in
suits, other than suits arising out of the Initial Placement, the Registered Exchange Offer or any offering pursuant to a Shelf Registration Statement to the extent applicable, or to taxation in any
such jurisdiction where they are not then so subject. 

        (j)    The
Company and the Guarantors shall cooperate with the Holders of Securities to facilitate the timely preparation and delivery of certificates representing New
Securities or Securities to be issued or sold pursuant to any Registration Statement free of any restrictive legends and in such denominations and registered in such names as Holders may request in a
reasonable period of time prior to sales of the Securities or New Securities pursuant to the Registration Statement. 

        (k)   Upon
the occurrence of any event contemplated by subsections (c)(ii) through (v) above during the period of time in which the Company is required to maintain an
effective Registration Statement, the Company and the Guarantors shall promptly prepare a post-effective amendment to the applicable Registration Statement or an amendment or supplement to
the related Prospectus or file any other required document so that, as thereafter delivered to initial purchasers of the securities included therein, the Prospectus will not include an untrue
statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;  provided that the
Company shall not be required to amend or supplement a Shelf Registration Statement or Prospectus on no more than two occasions, for a
reasonable period of time, but not in excess of 90 days in any consecutive twelve-month period if the Company determines reasonably and in good faith that such amendment or supplement would
require the disclosure of non-public material information that, in the reasonable judgment of the Company, would be detrimental to the Company if so disclosed or would otherwise materially
adversely affect a financing, acquisition, disposition, merger or other material transaction. In such circumstances, the period of effectiveness of the Exchange Offer Registration Statement provided
for in Section 2 and the Shelf Registration Statement provided for in Section 3(b) shall each be extended by the number of days from and including the date of the 

9

 

giving
of a notice of suspension pursuant to Section 5(c) to and including the date when the Initial Purchasers, the Holders of the Securities and any known Exchanging Dealer shall have
received such amended or supplemented Prospectus pursuant to this Section. 

        (l)    Not
later than the effective date of any Registration Statement, the Company and the Guarantors shall provide a CUSIP number for the Securities or the New Securities, as
the case may be, registered under such Registration Statement and provide the Trustee with printed certificates for such Securities or New Securities, in a form eligible for deposit with The
Depository Trust Company. 

        (m)  The
Company and the Guarantors shall comply with all rules and regulations of the Commission to the extent and so long as they are applicable to the Registered Exchange
Offer and the Shelf Registration and shall make generally available or otherwise provide to their security holders as soon as practicable after the effective date of the applicable Registration
Statement an earnings statement satisfying the provisions of Section 11(a) of the Act. 

        (n)   The
Company and the Guarantors shall cause the Indenture to be qualified under the Trust Indenture Act in a timely manner. 

        (o)   The
Company and the Guarantors may require each Holder of Securities or New Securities to be sold pursuant to any Shelf Registration Statement to furnish to the Company
and the Guarantors such information regarding the Holder and the distribution of such Securities or New Securities as the Company and the Guarantors may from time to time reasonably require for
inclusion in such Registration Statement. The Company and the Guarantors may exclude from such Shelf Registration Statement the Securities or New Securities of any Holder that fails to furnish such
information within a reasonable time after receiving such request. 

        (p)   In
the case of any Shelf Registration Statement, the Company and the Guarantors shall enter into such agreements and take all other appropriate actions reasonably
requested by any Holder of the Securities or New Securities, as the case may be (which may include an underwriting agreement in customary form), in order to expedite or facilitate the registration or
the disposition of the Securities or New Securities, and in connection therewith, if an underwriting agreement is entered into, cause the same to contain indemnification provisions and procedures no
less favorable than those set forth in Section 7 (or such other provisions and procedures acceptable to the Majority Holders and the Managing Underwriters, if any), with respect to all parties
to be indemnified pursuant to Section 7. 

        (q)   In
the case of any Shelf Registration Statement, the Company and the Guarantors shall: 

          (i)  make
reasonably available for inspection by the Holders of Securities or New Securities to be registered thereunder, any underwriter participating in any disposition
pursuant to such Registration Statement, and any attorney, accountant or other agent retained by the Holders or any such underwriter all relevant financial and other records, pertinent corporate
documents and properties of the Company and its subsidiaries; 

         (ii)  cause
the Company's officers, directors and employees to supply all relevant information reasonably requested by the Holders or any underwriter, attorney, accountant or
agent in connection with any such Registration Statement as is customary for similar due diligence examinations; provided,  however, that (i) the
foregoing inspection and information gathering shall be coordinated on behalf of all parties by one counsel designated by
the Majority Holders and (ii) each Holder and any underwriter, attorney, accountant or agent conducting an inspection under this section will be required to agree that information obtained by
it as a result of such inspections will be deemed confidential and will not be disclosed by it or used by it as the basis for any transaction in any securities of the Company unless and until such
information is generally available to the public; 

10

 

        (iii)  in
the case of any Shelf Registration that involves an underwritten public offering, make such representations and warranties to the Holders of Securities or New
Securities registered thereunder and the underwriters, if any, in form, substance and scope as are customarily made by issuers to selling security holders and underwriters, respectively, in
underwritten offerings; 

        (iv)  in
the case of any Shelf Registration that involves an underwritten public offering, obtain opinions of counsel to the Company and the Guarantors and updates thereof
(which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the Managing Underwriters, if any), addressed to each selling Holder and the managing underwriters, if
any, covering such matters as are customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by such Holders and underwriters, if any; 

         (v)  in
the case of any Shelf Registration that involves an underwritten public offering, obtain "cold comfort" letters and updates thereof from the independent certified
public accountants of the Company (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial
statements and financial data are, or are required to be, included in the Registration Statement), addressed to each selling Holder of Securities or New Securities registered thereunder and the
underwriters, if any, in customary form and covering matters of the type customarily covered in "cold comfort" letters in connection with primary underwritten offerings,  provided that each such Holder
and underwriter makes such representations as may be required for such independent certified public accountants to
deliver such letters; and 

        (vi)  deliver
such documents and certificates as may be reasonably requested by the Majority Holders and the Managing Underwriters, if any, including those to evidence
compliance with Section 5(k) and with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company and the Guarantors. 

The
actions set forth in clauses (iii), (iv), (v) and (vi) of this Section shall be performed at (A) the effectiveness of such Registration Statement and each post-effective
amendment thereto;
and (B) each closing under any underwriting or similar agreement as and to the extent required thereunder. 

        (r)   In
the case of any Exchange Offer Registration Statement, the Company and the Guarantors shall: 

	(i)
	make
reasonably available for inspection by such Initial Purchaser, and any attorney, accountant or other agent retained by such Initial Purchaser, all relevant financial and other
records, pertinent corporate documents and properties of the Company and its subsidiaries; and

	(ii)
	cause
the Company's officers, directors and employees to supply all relevant information reasonably requested by such Initial Purchaser or any such attorney, accountant or agent in
connection with any such Registration Statement as is customary for similar due diligence examinations; provided, however, that (i) the foregoing
inspection and information gathering shall be coordinated on behalf of all parties by one counsel designated by the Majority Holders and (ii) each Holder and any underwriter, attorney,
accountant or agent conducting an inspection under this section will be required to agree that information obtained by it as a result of such inspections will be deemed confidential and will not be
disclosed by it or used by it as the basis for any transaction in any securities of the Company unless and until such information is generally available to the public. 

11

 

        (s)   If
a Registered Exchange Offer is to be consummated, upon delivery of the Securities by Holders to the Company (or to such other Person as directed by the Company) in
exchange for the New Securities, the Company shall mark, or cause to be marked, on the Securities so exchanged that such Securities are being canceled in exchange for the New Securities. In no event
shall the Securities be marked as paid or otherwise satisfied. 

        (t)    The
Company and the Guarantors will use their respective reasonable best efforts (i) if the Securities have been rated prior to the initial sale of such
Securities, to confirm such ratings will apply to the Securities or the New Securities, as the case may be, covered by a Registration Statement; or (ii) if the Securities were not previously
rated, to cause the Securities covered by a Registration Statement to be rated with at least one nationally recognized statistical rating agency, if so requested by Majority Holders with respect to
the related Registration Statement or by any Managing Underwriters. 

        (u)   In
connection with any Shelf Registration Statement, in the event that any Broker-Dealer shall underwrite any Securities or participate as a member of an underwriting
syndicate or selling group or
"assist in the distribution" (within the meaning of the Conduct Rules of the National Association of Securities Dealers, Inc.) thereof, whether as a Holder of such Securities or as an
underwriter, a placement or sales agent or a broker or dealer in respect thereof, or otherwise, the Company and the Guarantors shall assist such Broker-Dealer in complying with the requirements of
such Rules and By-Laws, including, without limitation, by: 

          (i)  if
such Rules or By-Laws shall so require, engaging a "qualified independent underwriter" (as defined in such Rules) to participate in the preparation of
the Registration Statement, to exercise usual standards of due diligence with respect thereto and, if any portion of the offering contemplated by such Registration Statement is an underwritten
offering or is made through a placement or sales agent, to recommend the yield of such Securities; 

         (ii)  indemnifying
any such qualified independent underwriter to the extent of the indemnification of underwriters provided in Section 7 hereof; and 

        (iii)  providing
such information to such Broker-Dealer as may be required in order for such Broker-Dealer to comply with the requirements of such Rules. 

        (v)   The
Company and the Guarantors shall use their respective reasonable best efforts to take all other steps necessary to effect the registration of the Securities or the
New Securities, as the case may be, covered by a Registration Statement. 

        6.    Registration Expenses.    The Company shall bear all expenses incurred in connection with the performance of its
and the Guarantors' obligations under Sections 2, 3 and 5 hereof (other than any underwriting discounts and commissions, and the fees of any counsel retained by or on behalf of the
underwriters, and transfer taxes, if any, related to the sale or disposition of such Holder's Notes pursuant to any underwritten public offering pursuant to a Shelf Registration Statement, which shall
be for the expense of the Holders), including filing fees, if any, in respect of the trade of the New Securities by way of private placement to Holders in Canada and, in the event of any Shelf
Registration Statement, will reimburse the Holders for the reasonable fees and disbursements of not more than one counsel designated by the Majority Holders to act as counsel for the Holders in
connection therewith, and, in the case of any Exchange Offer Registration Statement, will reimburse the Initial Purchasers for the reasonable fees and disbursements of not more than one counsel acting
in connection therewith. 

        7.    Indemnification and Contribution.    

        (a)   The
Company and the Guarantors, jointly and severally, agree to indemnify and hold harmless each Holder of Securities or New Securities, as the case may be, covered by
any Registration Statement (including each Initial Purchaser and, with respect to any Prospectus 

12

 

delivery
as contemplated in Section 5(h) hereof, each Exchanging Dealer), the directors, officers, employees and agents of each such Holder and each Person who controls any such Holder within
the meaning of either the Act or the Exchange Act against any and all losses, claims, damages, or liabilities, joint or several, to which they or any of them may become subject under the Act, the
Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement as originally filed or in any amendment thereof, or in any preliminary
Prospectus or the Prospectus, or in any amendment thereof or supplement thereto, or in any "wrapped" version thereof constituting an offering memorandum under applicable Canadian provincial securities
laws, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they are made, not misleading, and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, damage, liability or action; provided, however, that (i) the Company and the Guarantors
will not be liable in any case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged
omission made therein in reliance upon and in conformity with written information furnished to the Company and the Guarantors by or on behalf of any such Holder specifically for inclusion therein and
(ii) with respect to any untrue statement or omission or alleged untrue statement or omission made in any preliminary prospectus relating to a Registration Statement, the indemnity agreement
contained in subsection (a) shall not inure to the benefit of any such indemnified party from whom the person asserting any such losses, claims, damages or liabilities purchased the securities
concerned, if a copy of the prospectus relating to such Securities or New Securities (as amended or supplemented at the time of sale) was required to be delivered by such indemnified party and was not
delivered as given by or on behalf of such indemnified party to such person and if such prospectus (as so amended or supplemented) would have corrected the defect giving rise to such loss, claim,
damage or liability. This indemnity agreement will be in addition to any liability which the Company and the Guarantors may otherwise have. 

        The
Company and the Guarantors also, jointly and severally, agree to indemnify or contribute as provided in Section 7(d) to Losses of any underwriter of any Securities or New
Securities, as the case may be, registered under a Shelf Registration Statement, their directors, officers, employees or agents and each Person who controls such underwriter (within the meaning of the
Act or the Exchange Act) on substantially the same basis as that of the indemnification of the Initial Purchasers and the selling Holders provided in this Section 7(a) and shall, if requested
by any Holder, enter into an underwriting agreement reflecting such agreement, as provided in Section 5(p) hereof. 

        (b)   Each
Holder of securities covered by a Registration Statement (including each Initial Purchaser and, with respect to any Prospectus delivery as contemplated in
Section 5(h) hereof, each Exchanging Dealer) severally agrees to indemnify and hold harmless the Company and the Guarantors, each of their directors, each of their officers who sign such
Registration Statement and each Person who controls the Company or any of the Guarantors within the meaning of either the Act or the Exchange Act, to the same extent as the foregoing indemnity from
the Company and the Guarantors to each such Holder, but only with reference to written information relating to such Holder furnished to the Company or the Guarantors by or on behalf of such Holder
specifically for inclusion in the documents referred to in the foregoing indemnity; and, subject to the limitation set forth immediately preceding this clause, shall reimburse, as incurred, the
Company for any legal or other expenses reasonably incurred by the Company or any such person in connection with investigating or defending or appearing in any judicial or extra-judicial 

13

 

proceeding,
in any capacity, including but not limited to, defendant, co-defendant, third-party defendant or witness, in connection with any loss, claim, damage, liability or action in
respect thereof. This indemnity agreement will be in addition to any liability which any such Holder may otherwise have. 

        (c)   Promptly
after receipt by an indemnified party under this Section 7 of notice of the commencement of any action, such indemnified party will, if a claim in
respect thereof is to be made against the indemnifying party under this Section, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying
party (i) will not relieve it from liability under paragraph(a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture
by the indemnifying party of substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the indemnifying party's choice at the indemnifying party's
expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any
separate counsel retained by the indemnified party or parties except as set forth below); provided, however, that such counsel shall be reasonably
satisfactory to the indemnified party. Notwithstanding the indemnifying party's election to appoint counsel to represent the indemnified party in an action, the indemnified party shall have the right
to employ separate counsel for all indemnified parties (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if
(i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential defendants
in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to
it and/or other indemnified parties which are different from or additional to those available to the indemnifying party; (iii) the indemnifying party shall not have employed counsel
satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize
the indemnified party in writing to employ separate counsel at the expense of the indemnifying party. An indemnifying party will not, without the prior written consent of the indemnified parties,
settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be
sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent (i) includes an unconditional
release of each indemnified party from all liability
arising out of such claim, action, suit or proceeding and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified
party. 

        (d)   In
the event that the indemnity provided in paragraph (a) or (b) of this Section is unavailable to or insufficient to hold harmless an indemnified party for any
reason, then each applicable indemnifying party shall have a joint and several obligation to contribute to the aggregate losses, claims, damages and liabilities (including legal or other expenses
reasonably incurred in connection with investigating or defending same) (collectively "Losses") to which such indemnified party may be subject in such proportion as is appropriate to reflect the
relative benefits received by such indemnifying party, on the one hand, and such indemnified party, on the other hand, from the Initial Placement and the Registration Statement which resulted in such
Losses; provided, however, that in no case shall any Initial Purchaser of any Security or New Security be responsible, in the aggregate, for any amount
in excess of the purchase discount or commission applicable to such Security, or in the case of a New Security, applicable to the Security that was exchangeable into such New Security, as set forth on
the cover page of the Offering 

14

 

Memorandum,
nor shall any underwriter be responsible for any amount in excess of the underwriting discount or commission applicable to the securities purchased by such underwriter under the
Registration Statement which resulted in such Losses, nor shall any subsequent Holder of any Security or New Security be responsible for any amount in excess of the amount by which the net proceeds
received by such Holder from the sale of the Securities or New Securities pursuant to a Registration Statement exceed the amount of damages which such Holder would have otherwise been required to pay
by reason of such untrue statement or omission or alleged omission. If the allocation provided by the immediately preceding sentence is unavailable for any reason, the indemnifying party and the
indemnified party shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of such indemnifying party, on the one hand, and such
indemnified party, on the other hand, in connection with the statements or omissions which resulted in such Losses as well as any other relevant equitable considerations. Benefits received by the
Company and the Guarantors shall be deemed to be equal to the sum of (x) the total net proceeds from the Initial Placement (before deducting expenses) as set forth on the cover page of the
Offering Memorandum and (y) the total amount of additional interest which the Company was not required to pay as a result of registering the securities covered by the Registration Statement
which resulted in such Loses. Benefits received by the Initial Purchasers shall be deemed to be equal to the total purchase discounts and commissions as set forth on the cover page of the Offering
Memorandum, and benefits received by any other Holders shall be deemed to be equal to the proceeds received from the sale of the Securities or New Securities, as applicable. Benefits received by any
underwriter shall be deemed to be equal to the total underwriting discounts and commissions, as set forth on the cover page of the Prospectus forming a part of the Registration Statement which
resulted in such Losses. Relative fault shall be determined by reference to, among other things, whether any alleged untrue statement or omission relates to information provided by the indemnifying
party, on the one hand, or by the indemnified party, on the other hand, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such untrue
statement or omission. The parties agree that it would not be just and equitable if contribution were determined by pro rata allocation (even if the Holders were treated as one entity for such
purpose) or any other method of allocation which does not take account of the equitable considerations referred to above. Notwithstanding the provisions of this paragraph (d), no Person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For
purposes of this Section, each Person who controls a Holder within the meaning of either the Act or the Exchange Act and each director, officer, employee and agent of such Holder shall have the same
rights to contribution as such Holder, and each Person who controls the Company or any of the Guarantors within the meaning of either the Act or the Exchange Act, each officer, director, employee and
agent of the Company or any of the Guarantors shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this
paragraph (d). 

        (e)   The
provisions of this Section will remain in full force and effect, regardless of any investigation made by or on behalf of any Holder or the Company and the Guarantors
or any of the officers, directors or controlling Persons referred to in this Section hereof, and will survive the sale by a Holder of securities covered by a Registration Statement. 

        8.    Underwritten Registrations.    

        (a)   If
any of the Securities or New Securities, as the case may be, covered by any Shelf Registration Statement are to be sold in an underwritten offering, the Managing
Underwriters shall be selected by the Majority Holders. 

        (b)   No
Person may participate in any underwritten offering pursuant to any Shelf Registration Statement, unless such Person (i) agrees to sell such Person's
Securities or New 

15

 

Securities,
as the case may be, on the basis reasonably provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements; and (ii) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements. 

        9.    No Inconsistent Agreements.    The Company has not, as of the date hereof, entered into, nor shall it, on or
after the date hereof, enter into, any agreement with respect to its securities that is inconsistent with the rights granted to the Holders herein or otherwise conflicts with the provisions hereof. 

        10.    Amendments and Waivers.    The provisions of this Agreement, including the provisions of this sentence, may not
be amended, qualified, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Company has obtained the written consent of the Majority
Holders (or, after the consummation of any Registered Exchange Offer in accordance with Section 2 hereof, of New Securities); provided that, with
respect to any matter that directly or indirectly affects the rights of any Initial Purchaser hereunder, the Company shall obtain the written consent of each such Initial Purchaser against which such
amendment, qualification, supplement, waiver or consent is to be effective. Notwithstanding the foregoing, a waiver or consent to departure from the provisions hereof with respect to a matter that
relates exclusively to the rights of Holders whose Securities or New Securities, as the case may be, are being sold pursuant to a Registration Statement and that does not directly or indirectly affect
the rights of other Holders may be given by the Holders representing a majority of the aggregate principal amount of the Securities or the New Securities, as the case may be, being sold rather than
registered under such Registration Statement, voting together as a single class. 

        11.    Notices.    All notices and other communications provided for or permitted hereunder shall be made in writing
by hand-delivery, first-class mail, telex, telecopier or air courier guaranteeing overnight delivery: 

        (a)   if
to a Holder, at the most current address given by such holder to the Company in accordance with the provisions of this Section, which address initially is, with
respect to each Holder, the address of such Holder maintained by the Registrar under the Indenture, with a copy in like manner to Citigroup Global Markets Inc.; 

        (b)   if
to you, initially at the respective addresses set forth in the Purchase Agreement; and 

        (c)   if
to the Company or the Guarantors, initially at its respective address set forth in the Purchase Agreement. 

16

  

        All such notices and communications shall be deemed to have been duly given when received. 

        The
Initial Purchasers, the Company or the Guarantors by notice to the other parties may designate additional or different addresses for subsequent notices or communications. 

        12.    Successors.    This Agreement shall inure to the benefit of and be binding upon the successors and assigns of
each of the parties, including, without the need for an express assignment or any consent by the Company thereto, subsequent Holders of Securities and the New Securities. The Company hereby agrees to
extend the benefits of this Agreement to any Holder of Securities and the New Securities, and any such Holder may enforce the provisions of this Agreement as if an original party hereto. 

        13.    Counterparts.    This agreement may be in signed counterparts, each of which shall an original and all of which
together shall constitute one and the same agreement. 

        14.    Headings.    The headings used herein are for convenience only and shall not affect the construction hereof. 

        15.    Applicable Law.    This Agreement shall be governed by and construed in accordance with the laws of the State
of New York applicable to contracts made and to be performed in the State of New York. 

        16.    Severability.    In the event that any one of more of the provisions contained herein, or the application
thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions hereof shall not be in any way impaired or affected thereby, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent
permitted by law. 

        17.    Securities Held by the Company, etc.    Whenever the consent or approval of Holders of a specified percentage
of principal amount of Securities or New Securities is required hereunder, Securities or New Securities, as applicable, held by the Company or its Affiliates (other than subsequent Holders of
Securities or New Securities if such subsequent Holders are deemed to be Affiliates solely by reason of
their holdings of such Securities or New Securities) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. 

        18.    Agent for Service; Submission to Jurisdiction; Waiver of Immunities.    By the execution and delivery of this
Agreement, the Company (i) acknowledges that it has, by separate written instrument, irrevocably designated and appointed CT Corporation System (and any successor entity), as its authorized
agent upon which process may be served in any suit or proceeding arising out of or relating to this Agreement that may be instituted in any federal or state court in the State of New York or brought
under federal or state securities laws, and acknowledges that CT Corporation System has accepted such designation, (ii) submits to the nonexclusive jurisdiction of any such court in any such
suit or proceeding, and (iii) agrees that service of process upon CT Corporation System and written notice of said service to the Company shall be deemed in every respect effective service of
process upon it in any such suit or proceeding. The Company further agrees to take any and all action, including the execution and filing of any and all such documents and instruments, as may be
necessary to continue such designation and appointment of CT Corporation System in full force and effect so long as any of the Securities shall be outstanding. To the extent that the Company may
acquire any immunity from jurisdiction of any court or from any legal process (whether through service of notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise)
with respect to itself or its property, it hereby irrevocably waives such immunity in respect of this Agreement, to the fullest extent permitted by law. 

17

 

        If
the foregoing is in accordance with your understanding of our agreement, please sign and return to us the enclosed duplicate hereof, whereupon this Agreement and your acceptance shall
represent a binding agreement among the Company, the Guarantors and the several Initial Purchasers. 

	 	 	Very truly yours,
	

 	
 	
CASCADES INC.
	

 	
 	

 	

 	

 
	 	 	By:	/s/  ROBERT F. HALL      

	 	 	 	Name:	ROBERT F. HALL
	 	 	 	Title:	VICE PRESIDENT, LEGAL AFFAIRS AND CORPORATE SECRETARY
	

 	
 	

 	

 	

 
	 	 	 	 	 

18

 

	 	 	CADMUS AND CASCADES RECYCLING, INC.

CASCADES AGRI-PAK, INC.

CASCADES AUBURN FIBER INC.

CASCADES BOXBOARD GROUP INC.

CASCADES BOXBOARD INC.

CASCADES BOXBOARD U.S., INC.

CASCADES BOXBOARD U.S. HOLDINGS, INC.

CASCADES DIAMOND, INC.

CASCADES DOMINION INC.

CASCADES EAST ANGUS INC.

CASCADES ENVIROPAC INC.

CASCADES FINE PAPERS GROUP (SALES) INC.

CASCADES FINE PAPERS GROUP (USA) INC.

CASCADES FINE PAPERS GROUP INC.

CASCADES FINE PAPERS GROUP THUNDER BAY INC.

CASCADES FJORDCELL INC.

CASCADES FORMA-PAK INC.

CASCADES INOPAK INC.

CASCADES LUPEL INC.

CASCADES MOULDED PULP, INC.

CASCADES MULTI-PRO INC.

CASCADES PLASTICS INC.

CASCADES SPG HOLDING INC.

CASCADES TISSUE GROUP—CALIFORNIA INC.

CASCADES TISSUE GROUP—IFC DISPOSABLES INC.

CASCADES TISSUE GROUP—MECHANICVILLE INC.

CASCADES TISSUE GROUP—NEW YORK INC.

CASCADES TISSUE GROUP—NORTH CAROLINA INC.

CASCADES TISSUE GROUP—OREGON INC.

CASCADES TISSUE GROUP—PENNSYLVANIA INC.

CASCADES TISSUE GROUP—WISCONSIN INC.

CASCADES TISSUE GROUP INC.

DÉSENCRAGE C.M.D. INC.

MARATHON GRAPHIC ART DISTRIBUTOR INC.

MATÉRIAUX CASCADES INC.

PLASTIQUES CASCADES INC.

WOOD WYANT INC.

2851-5351 QUÉBEC INC. (COMMEC ENR.)

3815285 CANADA INC.

3815315 CANADA INC.

4089235 CANADA INC.

4089260 CANADA INC.

4089278 CANADA INC.

4089294 CANADA INC.
	

 	
 	

 	

 	

 
	 	 	By:	/s/  ROBERT F. HALL      

	 	 	 	Name:	ROBERT F. HALL
	 	 	 	Title:	 

19

 

	The foregoing Agreement is hereby

confirmed and accepted as of the

date first above written.	 	 
	

Citigroup Global Markets Inc.	
 	

 
	

 	

 	

 	
 	

 
	By:	CITIGROUP GLOBAL MARKETS INC.	 	 
	

 	

 	

 	
 	

 
	By:	/s/  WHITNER MARSHALL      
	 	 
	 	Name:	WHITNER MARSHALL	 	 
	 	Title:	VICE PRESIDENT	 	 
	For themselves and the other several Initial

Purchasers named in Schedule I to

the foregoing Agreement.	 	 

20

 
 
 

SCHEDULE 1    
    

Initial
Purchasers 

Citigroup
Global Markets Inc.

CIBC World Markets Corp.

Scotia Capital (USA) Inc.

21

 
 
 

ANNEX A    
    

        Each Broker-Dealer that receives New Securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such New Securities. The Letter of Transmittal states that by so acknowledging and by delivering a prospectus, a Broker-Dealer will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act. This Prospectus, as it may be amended or supplemented from time to time, may be used by a Broker-Dealer in connection with resales of the New
Securities received in exchange for Securities where such Securities were acquired by such Broker-Dealer as a result of market-making activities or other trading activities. The Company has agreed to,
starting on the Expiration Date (as defined herein) and ending on the close of business 90 days after the Expiration Date, make this Prospectus available to any Broker-Dealer for use in
connection with these resales. See "Plan of Distribution." 

22

 
 
 

ANNEX B    
    

        Each Broker-Dealer that receives New Securities for its own account in exchange for Securities, the Securities were acquired by the Broker-Dealer as a result of
market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of the New Securities. See "Plan of Distribution." 

23

 
 
 

ANNEX C    
    

PLAN OF DISTRIBUTION  

        Each Broker-Dealer that receives New Securities for its own account in the Exchange Offer must acknowledge that it will deliver a prospectus in connection with
any resale of these New Securities. This Prospectus, as it may be amended or supplemented from time to time, may be used by a Broker-Dealer in connection with resales of New Securities received in
exchange for Securities where such Securities were acquired as a result of market-making activities or other trading activities. The Company and the Guarantors have agreed to, starting on the
Expiration Date and ending on the close of business 90 days after the Expiration Date, make this Prospectus, as amended or supplemented, available to any Broker-Dealer for use in connection
with these resales. In addition, until                        , 200  , all dealers effecting transactions in the New
Securities may be required to deliver a prospectus. 

        The
Company will not receive any proceeds from any sale of New Securities by broker-dealers. New Securities received by Broker-Dealers for their own account in the Exchange Offer may be
sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions, through the writing of options on the New Securities or a
combination of
such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or negotiated prices. Any of these resales may be made directly to
purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or concessions from these Broker-Dealers and/or the purchasers of New Securities. Any
Broker-Dealer that resells New Securities that were received by it for its own account in the Exchange Offer and any broker or dealer that participates in a distribution of these New Securities may be
deemed to be an "underwriter" within the meaning of the Securities Act and any profit of any of these resales of New Securities and any commissions or concessions received by any such Persons may be
deemed to be underwriting compensation under the Securities Act. The Letter of Transmittal states that by acknowledging that it will deliver and by delivering a prospectus, a Broker-Dealer will not be
deemed to admit that it is an "underwriter" within the meaning of the Securities Act. 

        For
a period of 90 days after the Expiration Date, the Company and the Guarantors will promptly send additional copies of this Prospectus and any amendment or supplement to this
Prospectus to any Broker-Dealer that requests such documents in the Letter of Transmittal. The Company has agreed to pay all expenses incident to the Exchange Offer (including the expenses of one
counsel for the holder of the Securities) other than commissions or concessions of any brokers or dealers and will indemnify the holders of the Securities (including any Broker-Dealers) against
certain liabilities, including liabilities under the Securities Act. 

24

 
 
 

ANNEX D    
    

	Rider A	 	 	 	 	 
	

 	
 	

CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.	
 	

 
	

 	
 	

Name:	

    
	
 	

 
	 	 	Address:	    
    
	 	 
	

Rider B	
 	

 	

 	
 	

 
	

If the undersigned is not a Broker-Dealer, the undersigned represents that it acquired the New Securities in the ordinary course of its business, it is not engaged in, and does not intend to engage in, a distribution of New Securities and it has no
arrangements or understandings with any Person to participate in a distribution of the New Securities. If the undersigned is a Broker-Dealer that will receive New Securities for its own account in exchange for Securities, it represents that the
Securities to be exchanged for New Securities were acquired by it as a result of market-making activities or other trading activities and acknowledges that it will deliver a prospectus in connection with any resale of New Securities; however, by so
acknowledging and by delivering a prospectus, the undersigned will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act.

25

QuickLinks

Exhibit 4.3

SCHEDULE 1

ANNEX A

ANNEX B

ANNEX C

ANNEX DQuickLinks
 -- 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 2years, 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'sresponsibility 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's production 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 feee consideration, it reasonably incurs and documents as a result of the failure clearly demonstarted
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
thereunder; 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 Enterprises	
 	

(Executive Order 11625 & Public Law 95507)

        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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