Document:

a5823424ex10-2.htm

    Exhibit
10.2

     

    Execution
Copy

     

    
      LICENSE
AGREEMENT

       

      This
License Agreement (the “AGREEMENT”) is made and executed effective this 28th day
of July, 2008 (“EFFECTIVE DATE”), by and among HONEYWELL INTERNATIONAL INC., a
Delaware corporation, acting through its HONEYWELL INTELLECTUAL PROPERTY
INTERNATIONAL business unit (hereinafter “HONEYWELL”) and B/E Aerospace, Inc., a
Delaware corporation (“LICENSEE” and together with HONEYWELL, the “PARTIES” and
each a “PARTY”).

       

      RECITALS

       

      WHEREAS, HONEYWELL is now and
has been engaged in the BUSINESS (as defined below);

       

      WHEREAS, the PARTIES have
entered into that certain STOCK AND ASSET PURCHASE AGREEMENT dated June 9,
2008 (“APA”) pursuant to which HONEYWELL has sold to LICENSEE certain assets
related to the BUSINESS;

       

      WHEREAS, HONEYWELL owns
certain technical information, know-how, business data and intellectual property
rights as more particularly described below that will not be sold to LICENSEE
but that are related to the BUSINESS which it desires to license to
LICENSEE;

       

      WHEREAS, the PARTIES, simultaneously
herewith, are entering into a Supply Agreement dated as of the EFFECTIVE DATE
(the “SUPPLY AGREEMENT”), pursuant to which LICENSEE will have manufactured and
sell the LICENSED PRODUCTS (as defined below) to HONEYWELL using such technical
information, know-how, business data and intellectual property rights related to
the BUSINESS and owned by HONEYWELL as more particularly described below;
and

       

      WHEREAS, LICENSEE desires to
obtain a license from HONEYWELL to such technical information, know-how,
business data and intellectual property rights to have manufactured, sell, have
sold, import and distribute certain proprietary parts (“PARTS”) related to
the BUSINESS.

       

      NOW, THEREFORE, for and in
consideration of the mutual covenants and agreement of the PARTIES and the
faithful performance thereof, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the PARTIES hereto
agree as follows:

       

      ARTICLE
1.

      DEFINITIONS

       

      Capitalized
terms used and not otherwise defined herein shall have the meanings set forth
below:

       

      
        	
                1.1.

              	
                “AFFILIATES”
      shall mean with respect to a PARTY, an entity that is controlling,
      controlled by or under common control with the PARTY; and “control” means
      (a) having the right to elect a majority of the directors, or
      (b) in the case of an entity that does not have directors,
      (i) having the right to elect or appoint a majority of the persons
      performing functions similar to directors, or (ii) by contract or
      otherwise having the right to control the management, policies and
      direction of the entity.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                1.2.

              	
                “BUSINESS”
      shall have the meaning assigned to it in the
  APA.

              

      

       

      
        	
                1.3.

              	
                “EXCLUSIVE
      LICENSED PRODUCTS” shall mean, individually and collectively, the EXISTING
      EXCLUSIVE LICENSED PRODUCTS and any NEW LICENSED
  PRODUCTS.

              

      

       

      
        	
                1.4.

              	
                “EXISTING
      EXCLUSIVE LICENSED PRODUCTS” shall mean those PARTS identified on
      EXHIBIT B, as such exhibit may be amended by mutual agreement of the
      PARTIES.

              

      

       

      
        	
                1.5.

              	
                “EXISTING
      NON-EXCLUSIVE LICENSED PRODUCTS” shall mean those PARTS identified on
      EXHIBIT C, as such exhibit may be amended by mutual agreement of the
      PARTIES.

              

      

       

      
        	
                1.6.

              	
                “FORCE
      MAJEURE” shall mean that neither PARTY shall be in default for any delay
      or failure to perform hereunder due to causes beyond its control despite
      the exercise of all commercially reasonable efforts, and without its fault
      or negligence; provided, that any delay or failure to perform caused by
      the default of a supplier of LICENSEE at any lower-tier shall be excused
      only if (a) it is beyond the control of both LICENSEE and such
      supplier and without the fault or negligence of either, (b) the parts
      to be furnished are not attainable from other sources in sufficient time
      to permit LICENSEE to meet the delivery schedule, and (c) LICENSEE
      furnishes prompt written notice to HONEYWELL of the occurrence of any such
      cause that will or may delay LICENSEE’S performance; and that no delay or
      failure to perform shall be excused if it is caused by a labor strike,
      stoppage, slow-down or other labor dispute.  If delivery of any
      item is delayed by any excusable delay for more than
      forty-five (45) days, HONEYWELL may exercise any of its remedies
      in accordance with this AGREEMENT.

              

      

       

      
        	
                1.7.

              	
                “GROSS
      REVENUES” shall mean the gross revenues invoiced by and/or received by
      LICENSEE or its AFFILIATES or RESELLERS during the TERM for sales of the
      THIRD PARTY LICENSED PRODUCTS that are NEW LICENSED
      PRODUCTS.  GROSS REVENUES shall not include any revenues
      received by LICENSEE (or any of its AFFILIATES or RESELLERS) from
      transactions with its AFFILIATES where the NEW LICENSED PRODUCTS in
      question will be resold to an independent third party purchaser by the
      AFFILIATE and where the revenue received by the AFFILIATE from such sale
      is included in GROSS REVENUES.  GROSS REVENUES received by
      LICENSEE (or any of its AFFILIATES or RESELLERS) from transactions with an
      AFFILIATE of LICENSEE, where the NEW LICENSED PRODUCTS in question are
      used by the AFFILIATE solely for such AFFILIATE’S internal purposes, shall
      also be included in GROSS REVENUES at a price equal to the fair market
      value of such transfer(s).

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
        	
                1.8.

              	
                “HONEYWELL
      EXCLUSIVE PERIOD” shall mean the period of time commencing with the
      EFFECTIVE DATE and terminating upon the first to occur
      of:  (a) the expiration or termination of the SUPPLY
      AGREEMENT, or (b) the termination or suspension of any exclusivity
      period granted to LICENSEE under the SUPPLY AGREEMENT (subject to
      LICENSEE’S right to have any suspended exclusivity reinstated pursuant to
      the terms and conditions of the SUPPLY AGREEMENT, in which case the
      HONEYWELL EXCLUSIVE PERIOD shall also be
  reinstated).

              

      

       

      
        	
                1.9.

              	
                “HONEYWELL
      LICENSED PRODUCTS” shall mean the EXISTING EXCLUSIVE LICENSED PRODUCTS,
      EXISTING NON-EXCLUSIVE LICENSED PRODUCTS and NEW LICENSED PRODUCTS to be
      manufactured for HONEYWELL pursuant to this AGREEMENT and the SUPPLY
      AGREEMENT.  A current list of such HONEYWELL LICENSED PRODUCTS
      is attached hereto as EXHIBIT D, as such exhibit may be revised,
      updated and/or amended from time to time by the PARTIES during the TERM in
      accordance with Section 14.6 or the SUPPLY
  AGREEMENT.

              

      

       

      
        	
                1.10.

              	
                “IMPROVEMENTS”
      shall mean, individually and collectively, all discoveries, inventions,
      know-how, techniques, methodologies, modifications, improvements, works of
      authorship, designs and data and all proprietary rights therein or
      associated therewith (whether or not protectable under patent, copyright,
      trade secrecy or similar laws) relating to additions, enhancements,
      updates, alterations, modifications, derivative works or other changes to
      any TECHNOLOGY or to any of the LICENSED PRODUCTS made by or on behalf of
      HONEYWELL or LICENSEE.

              

      

       

      
        	
                1.11.

              	
                “INTELLECTUAL
      PROPERTY RIGHTS” shall mean all rights in, arising out of, or associated
      with:  (a) published and unpublished works of authorship,
      including without limitation audiovisual works, collective works,
      software, compilations, databases, derivative works, literary works, mask
      works, and sound recordings, including without limitation rights granted
      under the United States Copyright Act or similar foreign acts,
      (b) inventions and discoveries, whether or not patentable, including
      without limitation articles of manufacture, designs, business methods,
      compositions of matter, improvements, know-how, machines, methods, and
      processes and new uses for any of the preceding items, including without
      limitation rights granted under the United States Patent Act or similar
      foreign acts, (c) CONFIDENTIAL INFORMATION, including without
      limitation rights granted under the Uniform Trade Secrets Act or any
      applicable state or foreign statute, and (d) rights of attribution
      and integrity and other moral rights of an
  author.

              

      

       

      
        	
                1.12.

              	
                “LICENSED
      PRODUCTS” shall mean, individually and collectively, the EXCLUSIVE
      LICENSED PRODUCTS and the EXISTING NON-EXCLUSIVE LICENSED
      PRODUCTS.

              

      

       

      
        	
                1.13.

              	
                “NEW
      LICENSED PRODUCTS” shall mean PARTS (other than the EXISTING
      EXCLUSIVE LICENSED PRODUCTS or the EXISTING NON-EXCLUSIVE LICENSED
      PRODUCTS) for new products or for new product applications (a) that
      (i) are based on or otherwise use any or all of the TECHNOLOGY
      (including any IMPROVEMENTS) or INTELLECTUAL PROPERTY RIGHTS therein, or
      (ii) absent the licenses granted herein, would infringe or
      misappropriate any INTELLECTUAL PROPERTY RIGHTS of HONEYWELL, and
      (b) that are consistent with the type of products sold through, by or
      on behalf of the BUSINESS as of the EFFECTIVE DATE.  NEW
      LICENSED PRODUCTS will automatically be added to EXHIBIT F unless
      otherwise agreed to by both
PARTIES.

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
        	
                1.14.

              	
                “PERSON”
      means any individual, partnership, corporation, limited liability company,
      joint venture, association, trust, unincorporated organization or entity,
      and any government or department, agency or political subdivision
      thereof.

              

      

       

      
        	
                1.15.

              	
                “PRE-EXISTING  AGREEMENTS”
      shall mean all license agreements and distribution agreements between
      HONEYWELL and any third party in effect prior to the EFFECTIVE DATE
      pursuant to which HONEYWELL has granted to such third party a license or
      distribution right to the EXISTING NON-EXCLUSIVE LICENSED PRODUCTS, and
      such agreements are identified on EXHIBIT G.  In the event
      that HONEYWELL becomes aware of any other pre-existing license or
      distribution agreement that it inadvertently failed to schedule on
      EXHIBIT G, it will promptly notify LICENSEE and amend EXHIBIT G
      accordingly and HONEYWELL will have no liability to LICENSEE with respect
      to any inadvertent failure to schedule any such
  agreement.

              

      

       

      
        	
                1.16.

              	
                “QUALIFYING
      CHANGE IN CONTROL” shall be deemed to occur when (a) with respect to
      LICENSEE, any transaction or series of related transactions occurs in
      which a QUALIFYING ENTITY would acquire, directly or indirectly, including
      pursuant to a sale of assets, tender offer, exchange offer, merger,
      consolidation, business combination, recapitalization, liquidation,
      dissolution or similar transaction, more than fifty percent (50%) of the
      outstanding voting securities of LICENSEE or all or substantially all of
      the assets of LICENSEE, or (b) assignment or transfer is made by
      LICENSEE pursuant to Section 14.5 of this AGREEMENT to a QUALIFYING
      ENTITY.  LICENSEE will provide HONEYWELL with written notice of
      any QUALIFYING CHANGE OF CONTROL no later than five (5) days
      after the date that any binding agreement is executed in respect of any
      such QUALIFYING CHANGE IN CONTROL.

              

      

       

      
        	
                1.17.

              	
                “QUALIFYING
      ENTITY” means any entity listed in
  EXHIBIT H.

              

      

       

      
        	
                1.18.

              	
                “REGULATORY
      AUTHORITY” shall mean any national, supra-national, regional, state or
      local regulatory agency, department, bureau, commission, council or other
      governmental entity, including the Federal Aviation Administration (“FAA”)
      or any comparable foreign regulatory
authority.

              

      

       

      
        	
                1.19.

              	
                “RESELLER”
      shall mean a third party appointed by LICENSEE to distribute the LICENSED
      PRODUCTS directly to end users, subject to the terms and conditions
      imposed by this AGREEMENT.

              

      

       

      
        	
                1.20.

              	
                “TECHNOLOGY”
      shall mean certain information, data, know-how, trade secrets, inventions,
      designs, drawings, specifications, manuals, and software (including source
      and object code) described on EXHIBIT A existing within HONEYWELL’S
      Aerospace division as of the EFFECTIVE DATE and related primarily to the
      manufacture of the LICENSED PRODUCTS, and all INTELLECTUAL PROPERTY RIGHTS
      therein.

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      
        	
                1.21.

              	
                “TERM”
      shall have the meaning assigned to it in
  Section 11.1.

              

      

       

      
        	
                1.22.

              	
                “TERRITORY”
      shall mean the world.

              

      

       

      
        	
                1.23.

              	
                “THIRD
      PARTY EXCLUSIVE PERIOD” shall mean the period of time commencing with the
      EFFECTIVE DATE and terminating thirty (30) years after the EFFECTIVE
      DATE.

              

      

       

      
        	
                1.24.

              	
                “THIRD
      PARTY LICENSED PRODUCTS” shall mean the EXISTING EXCLUSIVE LICENSED
      PRODUCTS, EXISTING NON-EXCLUSIVE LICENSED PRODUCTS and NEW LICENSED
      PRODUCTS manufactured by or on behalf of LICENSEE for a third party
      pursuant to this AGREEMENT.  A list of such THIRD PARTY LICENSED
      PRODUCTS is attached hereto as EXHIBIT E, as such exhibit may be
      revised, updated and/or amended from time to time by the PARTIES during
      the TERM in accordance with
Section 14.6.

              

      

       

      ARTICLE
2.

      GRANT
OF LICENSE

       

      
        	
                2.1.

              	
                License
      Grant. For good and valuable consideration, including, without
      limitation, the consideration paid by LICENSEE to HONEYWELL pursuant to
      the APA, and subject to LICENSEE’S compliance with the terms and
      conditions of this AGREEMENT, HONEYWELL hereby grants to LICENSEE, and
      LICENSEE hereby accepts, the
following:

              

      

      
         

      

      
        	
                 
      

              	
                (a)

              	
                a
      non-transferable and non-assignable (except as provided in
      Section 14.5), exclusive license, without the right to sublicense,
      within the TERRITORY (i) to use the TECHNOLOGY to have manufactured,
      sell, have sold, import and distribute the EXCLUSIVE LICENSED PRODUCTS,
      and (ii) to use, reproduce, copy, prepare derivative works and
      otherwise revise and modify the TECHNOLOGY to generate IMPROVEMENTS solely
      for the manufacture and support of the EXCLUSIVE LICENSED PRODUCTS,
      subject to the provisions of Section 3.4;
  and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                a
      non-transferable and non-assignable (except as provided in
      Section 14.5), exclusive license (subject to the PRE-EXISTING
      AGREEMENTS), without the right to sublicense, within the TERRITORY
      (i) to use the TECHNOLOGY to have manufactured, sell, have sold,
      import and distribute the EXISTING NON-EXCLUSIVE LICENSED PRODUCTS; and
      (ii) use, reproduce, copy, prepare derivative works and otherwise
      revise and modify the TECHNOLOGY to generate IMPROVEMENTS solely for the
      manufacture and support of the EXISTING NON-EXCLUSIVE LICENSED PRODUCTS,
      subject to the provisions of Section 3.4.  For the
      avoidance of doubt, the foregoing license is exclusive, subject only to
      the PRE-EXISTING AGREEMENTS and
accordingly,

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      

      HONEYWELL
agrees not to (A) grant any new licenses to use the TECHNOLOGY in
connection with the EXISTING NON-EXCLUSIVE LICENSED PRODUCTS to any PERSON, and
(B) during the HONEYWELL EXCLUSIVE PERIOD, use the TECHNOLOGY itself in
connection with the EXISTING NON-EXCLUSIVE LICENSED
PRODUCTS.  HONEYWELL further agrees not to grant any renewal of,
extend the term of or expand any of the rights granted in, the PRE-EXISTING
AGREEMENTS, unless otherwise requested by LICENSEE; and

       

      
        	
                 
      

              	
                (c)

              	
                a
      non-transferable and non-assignable (except as provided in
      Section 14.5), non-exclusive license, without the right to
      sublicense, within the TERRITORY to access the data and specifications
      described on EXHIBIT A (which data and specifications are included in
      the TECHNOLOGY for purposes of this AGREEMENT) for the sole purpose of
      exercising LICENSEE’S right set forth in Section 2.1(a)(i) and (b)(i)
      above provided that LICENSEE complies and continues to comply at all times
      during the TERM with HONEYWELL’S requirements, procedures and
      certifications reasonably required by HONEYWELL for access to such
      TECHNOLOGY.  The PARTIES agree to work together in good faith to
      promptly establish the foregoing access rights for
      LICENSEE.  Nothing in this AGREEMENT shall prohibit or limit
      HONEYWELL’S ability to update or modify (including substituting alternate
      applications) the applications set forth on EXHIBIT A, Part II,
      provided that any such update or modification shall still allow LICENSEE
      to access the data and specifications included in the TECHNOLOGY licensed
      to LICENSEE hereunder.  LICENSEE will be responsible, at its
      sole cost and expense, for obtaining and maintaining any third party
      hardware or software that is necessary to access such data and
      specifications.

              

      

       

      
        	
                2.2.

              	
                Exclusivity.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Exclusive
      Periods.  The licenses granted in Sections 2.1(a)
      and 2.1(b) shall be exclusive (i) with respect to the HONEYWELL
      LICENSED PRODUCTS, until the expiration of the HONEYWELL EXCLUSIVE PERIOD,
      [...***...].

              

      

       

      
        	
                 
      

              	
                (b)

              	
                [...***...]

              

      

       

      

      
         

         

         

        ***CONFIDENTIAL
TREATMENT REQUESTED

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

      

      

      [...***...]

      

      
        	
                2.3.

              	
                Third Party
      Negotiations.   Notwithstanding anything to the contrary
      herein, commencing [...***...] of the HONEYWELL EXCLUSIVE PERIOD, [...***...] in
      connection with the manufacture, sale, import and distribution of
      EXCLUSIVE LICENSED PRODUCTS in the TERRITORY; provided that no rights
      granted in such agreements with third parties shall be effective prior to
      the expiration of the HONEYWELL EXCLUSIVE
  PERIOD.

              

      

       

      ARTICLE
3.

      OWNERSHIP

       

      
        	
                3.1.

              	
                Ownership. Notwithstanding anything contained
      in this AGREEMENT to the contrary, HONEYWELL shall retain all ownership
      rights (including all INTELLECTUAL PROPERTY RIGHTS) in and to the
      TECHNOLOGY, including all IMPROVEMENTS thereto and all rights not
      expressly granted to LICENSEE hereunder are reserved to HONEYWELL,
      including but not limited to the rights to:  (a) enforce
      the TECHNOLOGY against third parties and collect damages awarded in any
      such enforcement action or settlement thereof, except as otherwise
      provided in Article 9 hereof, (b) use or grant licenses to the
      TECHNOLOGY to manufacture, have manufactured, sell, have sold, import and
      distribute products other than the LICENSED PRODUCTS, and
      (c) prosecute patents (or register or apply to register for any other
      INTELLECTUAL PROPERTY RIGHTS) in respect of the
      TECHNOLOGY.  From and after the EFFECTIVE DATE, HONEYWELL will
      use commercially reasonable efforts, at its expense, to (i) prosecute
      and maintain any registrations or applications issued by, filed with, or
      recorded by, any REGULATORY AUTHORITY with respect to the TECHNOLOGY, and
      (ii) to maintain the confidentiality of all CONFIDENTIAL INFORMATION
      within the TECHNOLOGY.  In the event of a breach of the
      foregoing (ii), HONEYWELL shall (A) use reasonable best efforts to
      cure such unauthorized disclosure of CONFIDENTIAL INFORMATION, and
      (B) take all reasonable precautions to prevent any such unauthorized
      disclosure in the future.  For the avoidance of doubt, HONEYWELL
      will not be obligated to prosecute any new registrations or applications
      before any REGULATORY AUTHORITY with respect to the
      TECHNOLOGY.  However, in the event HONEYWELL elects to prosecute
      any new registrations or applications before any REGULATORY AUTHORITY with
      respect to the TECHNOLOGY, it will use commercially reasonable efforts to
      prosecute and maintain such new registrations or
    applications.

              

      

       

      
        	
                3.2.

              	
                HONEYWELL
      Covenant to LICENSEE. Subject to the terms and conditions of this
      AGREEMENT, HONEYWELL covenants to LICENSEE not to assert any claims
      against LICENSEE, its RESELLERS, its manufacturers, suppliers or customers
      for infringement of any patent or other INTELLECTUAL PROPERTY RIGHTS of
      HONEYWELL’S, where such infringement results from or arises out of
      (a) LICENSEE having made, using, offering to sell, selling,
      exporting, importing or otherwise disposing of
  LICENSED

              

      

       

       

       

       

      
        ***CONFIDENTIAL
TREATMENT REQUESTED

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

      

      PRODUCTS
in accordance with the terms and conditions of this AGREEMENT, or
(b) LICENSEE’S marketing or advertising activities with respect to LICENSED
PRODUCTS in accordance with the terms and conditions of this
AGREEMENT.

       

      
        	
                3.3.

              	
                Covenant
      Restrictions.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Inadvertent
      Assertion.  The covenant set forth in Section 3.2
      will not be deemed breached if HONEYWELL asserts a claim or sues without
      actual knowledge that the products that are the subject of such assertion
      are LICENSED PRODUCTS and are subject to this AGREEMENT, provided that
      HONEYWELL promptly retracts its assertion and/or dismisses any claim in
      any such lawsuit to the extent that LICENSEE reasonably demonstrates by
      written documentation that the covenant applies to such
    claim.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Limited Scope of
      Covenants.  Except as expressly provided herein, the
      covenant set forth in Section 3.2 above does not extend to the
      making, having made, using, offering to sell, selling, exporting,
      importing or otherwise disposing of products, unless such products are
      LICENSED PRODUCTS provided by or on behalf of LICENSEE in accordance with
      the terms and conditions of this
AGREEMENT.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                No Effect On Present
      NDAs.  The covenant set forth in Section 3.2 above
      is not intended to, and does not, amend, supersede or otherwise affect the
      PARTIES’ rights and duties under any non-disclosure agreements and
      confidential disclosure agreements between them that are in force on the
      EFFECTIVE DATE.

              

      

       

      
        	
                 
      

              	
                (d)

              	
                Survival of
      Covenant.  Notwithstanding anything in this AGREEMENT to
      the contrary, the covenant set forth in Section 3.2 shall survive any
      assignment of this AGREEMENT and shall apply to any subsequent purchaser
      or assignee of any INTELLECTUAL PROPERTY RIGHTS of HONEYWELL but shall
      apply only with respect to the INTELLECTUAL PROPERTY RIGHTS of HONEYWELL
      acquired by such purchaser or
assignee.

              

      

       

      
        	
                3.4.

              	
                Improvements. Any IMPROVEMENTS
      to any TECHNOLOGY or to any of the LICENSED PRODUCTS conceived or created
      or reduced to practice or fixed in a tangible medium of expression during
      the TERM by:  (a) one or more REPRESENTATIVES of LICENSEE
      (or its AFFILIATES) (“LICENSEE IMPROVEMENTS”), or (b) one or more
      employees, consultants or sublicensees of HONEYWELL (or its AFFILIATES)
      will be the sole and exclusive property of HONEYWELL (“HONEYWELL
      IMPROVEMENTS”).  In the case of LICENSEE IMPROVEMENTS, LICENSEE
      shall and does hereby, irrevocably and unconditionally assign to HONEYWELL
      all right, title and interest in and to such LICENSEE
      IMPROVEMENTS.  LICENSEE will, without further consideration,
      take such further action and execute and deliver such further instruments
      in order to vest in HONEYWELL ownership of the LICENSEE
      IMPROVEMENTS.  For purposes of this AGREEMENT, all LICENSEE
      IMPROVEMENTS, and any HONEYWELL IMPROVEMENTS having application solely to
      the LICENSED PRODUCTS, will be automatically, and without further action
      on the part of LICENSEE, included in the definition of TECHNOLOGY and
      HONEYWELL hereby licenses such IMPROVEMENTS to LICENSEE in accordance with
      the terms and conditions set forth in Sections 2.1(a) and (b), as
      applicable.  LICENSEE hereby agrees that it shall not prosecute
      any patents related to the
IMPROVEMENTS.

              

      

       

      
         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

      

      
        	
                3.5.

              	
                Prior Approval. Any LICENSEE
      IMPROVEMENTS must be reviewed and expressly approved in writing by
      HONEYWELL prior to reducing the IMPROVEMENT to practice; and/or using or
      incorporating the IMPROVEMENT in or in connection with any LICENSED
      PRODUCT.

              

      

       

      
        	
                3.6.

              	
                Technology Transfer. HONEYWELL
      shall transfer or provide access to, as applicable, the TECHNOLOGY to
      LICENSEE as soon as practical after the EFFECTIVE DATE and provide related
      technical transfer assistance as more fully set forth in the TRANSITION
      SERVICES AGREEMENT between the PARTIES dated of even date
      herewith.

              

      

       

      
      

       

      ARTICLE
4.

      ROYALTIES

       

      [...***...]

      

      

      

      

      

      

      ***CONFIDENTIAL TREATMENT
REQUESTED

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

      [...***...]

      

      ARTICLE
5.

      REPORTS
AND RECORDS

       

      
        	
                5.1.

              	
                Reports.  LICENSEE
      shall, together with each payment of ROYALTIES, furnish HONEYWELL with a
      written report setting forth the following with respect to the period
      covered by such report:
[...***...]

              

      

       

      
        	
                5.2.

              	
                Recordkeeping.  LICENSEE
      shall maintain complete and accurate books of account and records
      containing all financial information relating to the ROYALTIES and all
      other amounts due and payable to HONEYWELL under this
      AGREEMENT.  Such books and records shall be maintained at
      LICENSEE’S principal place of business, or at such other office as
      LICENSEE shall notify
HONEYWELL.

              

      

       

      
      

      ARTICLE
6.

      RIGHT
TO AUDIT FACILITY AND RECORDS

       

      
        	
                6.1.

              	
                Audit and Inspection.  HONEYWELL,
      or its duly authorized agents, has the right upon reasonable notice and
      during normal business hours during the TERM of this AGREEMENT to visit
      LICENSEE and its AFFILIATES and RESELLERS and
  have

              

      

       

       

       

       

      ***CONFIDENTIAL
TREATMENT REQUESTED

      
      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      reasonable
access to the inside and outside of LICENSEE’S and its AFFILIATES’ and
RESELLERS’ facilities solely for the purpose of inspecting, observing and
evaluating LICENSEE’S and its AFFILIATES’ and RESELLERS’ total performance under
this AGREEMENT, including:  (a) compliance with all provisions of
this AGREEMENT, (b) any noncompliance with the provisions of this
AGREEMENT, (c) possession, access and control of HONEYWELL CONFIDENTIAL
INFORMATION, (d) adherence to HONEYWELL’S quality assurance requirements
including inspection inventory of the LICENSED PRODUCTS, work-in-process, raw
materials to be used for any LICENSED PRODUCTS, production records, quality
manuals and such other matters as may be pertinent to proper quality assurance
of any LICENSED PRODUCTS, (e) books, records, people and reports to
determine compliance with the terms of this AGREEMENT, (f) observing the
manner and method of operating under this AGREEMENT, and (g) unauthorized
access, use and control of HONEYWELL CONFIDENTIAL INFORMATION; provided, that
HONEYWELL conducts the inspection, observation and evaluation in a manner that
protects LICENSEE’S CONFIDENTIAL INFORMATION and does not disrupt LICENSEE’S
operation of its business, including without limitation, abiding by LICENSEE’S
reasonable procedures and policies regarding confidential information and
execution of confidentiality agreements.

       

      
        	
                6.2.

              	
                Notice. Inspections
      shall occur no more than once per year and will take place no earlier
      [...***...] after HONEYWELL notifies LICENSEE of HONEYWELL’S intent to conduct
      a facility audit provided, however, that HONEYWELL may carry out such
      inspection more than once per year if HONEYWELL reasonably believes that
      LICENSEE is not in compliance with LICENSEE’S obligations under this
      AGREEMENT.

              

      

       

      
        	
                6.3.

              	
                Reporting. LICENSEE
      will comply with the audit reporting requirements set forth in
      Article 5 “Reports and Records” of this
    AGREEMENT.

              

      

       

      
        	
                6.4.

              	
                Corrective Action.  LICENSEE
      shall use its commercially reasonable efforts to (a) immediately take
      such action as is required to correct any material deficiencies identified
      by HONEYWELL relating to the production of any LICENSED PRODUCTS, and
      (b) correct any non-material deficiencies identified by HONEYWELL
      relating to the production of any LICENSED PRODUCTS in a timely
      manner.  LICENSEE further agrees to use commercially reasonable
      efforts to provide such documentation or conduct such analyses as
      HONEYWELL may reasonably request in connection with any regulatory
      submission or audit.

              

      

       

      
        	
                6.5.

              	
                [...***...]

              

      

       

      
      

       

       

       

       

      ***CONFIDENTIAL
TREATMENT REQUESTED

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      ARTICLE
7.

      CONFIDENTIALITY

       

      
        	
                7.1.

              	
                Definition of CONFIDENTIAL
      INFORMATION.  As
      used in this AGREEMENT, “CONFIDENTIAL INFORMATION” shall mean (a) the
      terms and conditions of this AGREEMENT, excluding the existence of this
      AGREEMENT, and (b) all information, data and materials that either
      PARTY (the “RECEIVING PARTY”) obtains from the other (the “DISCLOSING
      PARTY”) under this AGREEMENT, including, without limitation, the
      TECHNOLOGY, (i) which is marked as confidential, or (ii) which
      the RECEIVING PARTY should reasonably know, by its nature or the manner of
      its disclosure, to be confidential that the RECEIVING PARTY may receive or
      have access to in connection with this AGREEMENT.  The RECEIVING
      PARTY acknowledges and agrees that (A) CONFIDENTIAL INFORMATION
      constitute valuable trade secrets of the DISCLOSING PARTY, and are not
      within the public domain, (B) the DISCLOSING PARTY has and shall
      retain exclusive (except as expressly provided herein) valuable property
      rights in and to CONFIDENTIAL INFORMATION, (C) CONFIDENTIAL
      INFORMATION shall remain valuable trade secrets proprietary to the
      DISCLOSING PARTY unless and until the DISCLOSING PARTY places CONFIDENTIAL
      INFORMATION in the public domain or authorizes placement of the
      CONFIDENTIAL INFORMATION in the public domain, and (D) but for this
      AGREEMENT, the RECEIVING PARTY would have no rights in or access to the
      CONFIDENTIAL INFORMATION.

              

      

       

      
      

      
        	
                7.2.

              	
                Exceptions.  Notwithstanding
      Section 7.1, CONFIDENTIAL INFORMATION does not include, or shall
      cease to include as appropriate, information (a) that is lawfully
      received free of restriction from another source that, to the RECEIVING
      PARTY’S knowledge or knowledge it should have, has the right to furnish
      such information, (b) after it has become generally available to the
      public by acts not attributable to the RECEIVING PARTY or its employees,
      subcontractors, consultants or advisors, or (c) which, at the time of
      disclosure to the RECEIVING PARTY, was known to the RECEIVING PARTY free
      of restriction. Only the specific information that meets such exclusions
      will be excluded, and not any other information that happens to appear in
      proximity to such excluded portions (for example, a portion of a document
      may be excluded without affecting the confidential nature of those
      portions that do not themselves qualify for
    exclusion).

              

      

       

      
        	
                7.3.

              	
                Confidentiality Obligations.  The
      RECEIVING PARTY shall not use the CONFIDENTIAL INFORMATION for any purpose
      except in performance of its obligations hereunder or to exercise the
      rights granted to it hereunder.  The RECEIVING PARTY shall
      maintain all CONFIDENTIAL INFORMATION in strict confidence.  The
      RECEIVING PARTY shall not, without the prior written consent of the
      DISCLOSING PARTY, disclose, in any manner or via any media whatsoever, any
      CONFIDENTIAL INFORMATION, other than to its employees, manufacturing
      agents, resellers, consultants and contractors (“REPRESENTATIVES”)
      (a) who have a specific need to know such CONFIDENTIAL INFORMATION in
      order to exercise the RECEIVING PARTY’S rights hereunder, (b) who are
      informed of the confidential nature of the CONFIDENTIAL INFORMATION, and
      (c) who agree in writing to act in accordance with and be bound by
      terms and conditions at least as restrictive as the terms and conditions
      herein regarding the safeguarding and disclosure of CONFIDENTIAL
      INFORMATION.  HONEYWELL shall have the right to disclose the
      existence and the terms of this AGREEMENT to potential purchasers or
      licensees of any INTELLECTUAL PROPERTY RIGHTS of HONEYWELL without the
      prior written consent of, or the requirement to provide notice to,
      LICENSEE.

              

      

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      
        	
                7.4.

              	
                Required Disclosures.  Notwithstanding
      the foregoing, in the event disclosure of CONFIDENTIAL INFORMATION by the
      RECEIVING PARTY is mandated by applicable law, rule or regulation, or by
      an order of a court or governmental or law enforcement agency or other
      authority, each of competent jurisdiction, then (a) the RECEIVING
      PARTY will promptly notify the DISCLOSING PARTY of such requirement,
      provided that, such notice is not prohibited by a regulatory, law
      enforcement, other governmental authority or an order of court of
      competent jurisdiction, and (b) the RECEIVING PARTY shall use good
      faith efforts, in consultation with the DISCLOSING PARTY, to challenge
      such disclosure or, failing in such challenge, secure a protective order
      or other appropriate confidential treatment of the CONFIDENTIAL
      INFORMATION so disclosed. Any such required disclosure shall not alter the
      nature of the information so disclosed as CONFIDENTIAL INFORMATION for
      purposes of this AGREEMENT.

              

      

       

      
      

      
        	
                7.5.

              	
                Breaches.  The
      RECEIVING PARTY will be responsible for any breach of this Article 7
      by any of its REPRESENTATIVES.  The RECEIVING PARTY shall notify
      the DISCLOSING PARTY immediately upon discovery of any unauthorized
      disclosure (inadvertent or otherwise) and shall, within
      thirty (30) days of such notice (a) use reasonable best
      efforts to cure such unauthorized disclosure of CONFIDENTIAL INFORMATION,
      (b) take all reasonable precautions to prevent any such unauthorized
      disclosure in the future, and (c) cooperate in good faith with the
      DISCLOSING PARTY to assist the DISCLOSING PARTY to regain possession of
      its CONFIDENTIAL INFORMATION and/or to prevent further unauthorized use or
      disclosure.

              

      

       

      
        	
                7.6.

              	
                Remedies.  The
      RECEIVING PARTY acknowledges and agrees that the violation of its
      obligations under this Article 7 would cause irreparable harm to the
      DISCLOSING PARTY, which harm may not be compensable solely by monetary
      damages, and that, therefore, in the event of an actual or threatened
      breach by the RECEIVING PARTY of this Article 7, the DISCLOSING PARTY
      shall be entitled to injunctive and other equitable relief, without the
      necessity of proving monetary damages or posting bond or other
      security.  Any such equitable relief granted shall be without
      limitation of or prejudice to any other rights and remedies as the
      DISCLOSING PARTY may have under this
  AGREEMENT.

              

      

       

      
      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      ARTICLE
8.

      REPRESENTATIONS
AND WARRANTIES

       

      
        	
                8.1.

              	
                Mutual.  Each
      PARTY hereby represents, covenants and warrants to the other PARTY
      that:

              

      

       

      
      

      
        	
                 
      

              	
                (a)

              	
                it
      has the corporate power to enter into this AGREEMENT and to grant the
      rights and licenses granted herein and otherwise perform this
      AGREEMENT;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                the
      entering into of this AGREEMENT will not (i) violate any provision of
      law, statute, rule or regulation or any ruling, writ, injunction, order,
      judgment or decree of any court, administrative agency or other
      governmental body, or (ii) conflict with or result in any breach of
      any of the terms, conditions or provisions of, or constitute a default (or
      give rise to any right of termination, cancellation or acceleration)
      under, or result in the creation of any lien, security interest, charge or
      encumbrance upon any of the properties or assets under its organizational
      documents, as amended to date, or any material note, indenture, mortgage,
      lease, agreement, contract, purchase order or other instrument, document
      or agreement in which such PARTY is a party or by which it or any of its
      properties or assets is bound or
affected;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                when
      executed and delivered by it, this AGREEMENT will constitute a legal,
      valid and binding obligation of it, enforceable against it in accordance
      with the provisions of this AGREEMENT;
and

              

      

       

      
        	
                 
      

              	
                (d)

              	
                it
      shall perform its obligations under this AGREEMENT in compliance with all
      laws.

              

      

       

      
        	
                8.2.

              	
                HONEYWELL.  HONEYWELL
      represents and warrants that (a) to its knowledge, it owns all
      INTELLECTUAL PROPERTY RIGHTS in and to the TECHNOLOGY (excluding LICENSEE
      IMPROVEMENTS) or has the right to grant the rights granted herein,
      (b) to its knowledge, the TECHNOLOGY (excluding LICENSEE
      IMPROVEMENTS) is not subject to any lien, encumbrance, security interest,
      restriction, license or adverse claim of any nature, and (c) there is
      no legal action pending or, to its knowledge, threatened, against
      HONEYWELL that challenges the ownership of the
      TECHNOLOGY.

              

      

       

      
        	
                8.3.

              	
                DISCLAIMER.  EXCEPT
      AS EXPRESSLY PROVIDED OTHERWISE IN THIS AGREEMENT, THE SUPPLY AGREEMENT OR
      THE APA, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY
      EXPRESSLY DISCLAIMS AND HAS NOT MADE AND SHALL NOT BE DEEMED TO HAVE MADE
      ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND OR CHARACTER, EXPRESS OR
      IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY,
      FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT WITH RESPECT TO THE
      TECHNOLOGY, IMPROVEMENTS, THE MARK (AS DEFINED IN SECTION 13.10
      BELOW) AND THE LICENSED PRODUCTS.  EXCEPT AS TO ANY LIABILITY OR
      DAMAGES

              

      

       

      
      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      ARISING
FROM THE INDEMNITY OBLIGATIONS SET FORTH IN ARTICLE 10 OR BREACH OF THE
CONFIDENTIALITY OBLIGATIONS AS SET FORTH IN ARTICLE 7, TO THE MAXIMUM
EXTENT PERMITTED BY APPLICABLE LAW, NEITHER PARTY SHALL BE LIABLE FOR ANY
SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE, CONSEQUENTIAL DAMAGES, INCLUDING LOSS
OF PROFITS, LOSS OF BUSINESS OPPORTUNITY, LOSS OF PROPERTY OR CAPITAL, OR OTHER
DAMAGES ARISING FROM OR RELATED TO THIS AGREEMENT OR THE OPERATION OR USE OF THE
TECHNOLOGY, IMPROVEMENTS, MARK AND THE LICENSED PRODUCTS, INCLUDING WITHOUT
LIMITATION, THE INFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS BY THE
LICENSED PRODUCTS, DAMAGES ARISING FROM LOSS OF REVENUE OR PROFITS, FAILURE TO
REALIZE SAVINGS OR OTHER BENEFITS, DAMAGE TO EQUIPMENT, THE USE OR INABILITY TO
USE ANY TECHNOLOGY OR LICENSED PRODUCTS, REGARDLESS OF HOW SUCH LOSS OR DAMAGE
MAY HAVE OCCURRED AND EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES.

       

      WITHOUT
LIMITING THE GENERALITY OF THE FOREGOING AND, EXCEPT AS EXPRESSLY SET FORTH IN
THIS AGREEMENT, THE TECHNOLOGY AND THE MARK ARE BEING DELIVERED TO LICENSEE AND
LICENSEE IMPROVEMENTS ARE BEING PROVIDED TO HONEYWELL ON AN “AS IS” AND “WHERE
IS” BASIS, SUBJECT TO ACTUAL AVAILABILITY, IN THE DATA FORMAT EXISTING AS OF THE
EFFECTIVE DATE WHICH MAY INCLUDE, WITHOUT LIMITATION, PAPER AND ELECTRONIC
FORMATS.

       

      ARTICLE
9.

      LITIGATION

       

      
        	
                9.1.

              	
                ENFORCEMENT BY HONEYWELL.  HONEYWELL
      shall take whatever steps it deems necessary or desirable to protect the
      TECHNOLOGY, including, without limitation, the filing, prosecution and
      defense and settlement of litigation, at its own expense; provided,
      however, that except as expressly set forth in Section 9.2, nothing
      in this AGREEMENT shall obligate HONEYWELL to assume any responsibility or
      liability respecting any action or possible action.  Each PARTY,
      upon receiving knowledge thereof, shall give the other PARTY notice of any
      and all threatened or actual claims, disputes, controversies, actions,
      lawsuits, proceedings, investigations, or the issuance of any order, writ,
      injunction, award, judgment or decree before or of any court, tribunal,
      arbitration panel, agency or governmental instrumentality against
      HONEYWELL, LICENSEE or a third party that is related to the TECHNOLOGY
      and/or the LICENSED PRODUCTS.  Such notice will not obligate
      HONEYWELL to take action on such information.  In the event
      HONEYWELL chooses to enforce its rights in the TECHNOLOGY, all costs and
      expenses of any such litigation shall be borne solely by HONEYWELL and all
      benefits, damages and settlement, shall be the sole property of
      HONEYWELL.  LICENSEE shall, at HONEYWELL’S expense, cooperate
      with and assist HONEYWELL and shall make available all evidence,
      information or particulars in its possession which might assist HONEYWELL
      in such defense.  HONEYWELL shall keep LICENSEE informed
      concerning the progress of such
suit.

              

      

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      
        	
                9.2.

              	
                ENFORCEMENT BY LICENSEE.  If
      HONEYWELL does not elect to enforce its rights in the TECHNOLOGY and/or
      defend any proceedings described in Section 9.1 within a [...***...] by
      HONEYWELL of the aforesaid notice, LICENSEE may initiate an action in
      respect of the TECHNOLOGY and/or INTELLECTUAL PROPERTY RIGHTS therein, in
      its own name and entirely under its own direction and control as provided
      in this Section 9.2.  In the event LICENSEE requests that
      HONEYWELL enforce its rights in the TECHNOLOGY, within
      sixty (60) days from receiving such notice, HONEYWELL may either
      elect to do so, or require that LICENSEE bring such action in each case,
      at the sole cost and expense of LICENSEE.  In the event LICENSEE
      brings an action, HONEYWELL shall, at LICENSEE’S expense, cooperate with
      and assist LICENSEE (including being joined into such action if required)
      and shall make available all evidence, information or particulars in its
      possession which might assist LICENSEE in such defense.  All
      costs and expenses of any such litigation shall be borne solely by
      LICENSEE and all benefits, damages and settlement, shall be the sole
      property of LICENSEE; provided, however that any monies recovered that are
      attributable to infringement relating to INTELLECTUAL PROPERTY RIGHTS in
      the NEW LICENSED PRODUCTS (as opposed to EXISTING EXCLUSIVE LICENSED
      PRODUCTS or EXISTING NON-EXCLUSIVE LICENSED PRODUCTS) shall be treated as
      GROSS REVENUES and royalties in respect of such GROSS REVENUES shall be
      due to HONEYWELL.  LICENSEE shall keep HONEYWELL informed
      concerning the progress of such suit.  Notwithstanding the
      foregoing, LICENSEE shall not, under any circumstances, be permitted to
      initiate an action in respect of the TECHNOLOGY and/or INTELLECTUAL
      PROPERTY RIGHTS therein,  in its own name and entirely under its
      own direction and control, or request that HONEYWELL enforce its rights in
      the TECHNOLOGY, (a) with respect to any EXISTING NON-EXCLUSIVE
      LICENSED PRODUCTS so long as the PRE-EXISTING AGREEMENTS are in effect, or
      (b) against any supplier, competitor or customer of HONEYWELL or any
      licensee or distributor under a PRE-EXISTING AGREEMENT (collectively,
      “PROTECTED PERSONS”) in the event such lawsuit will have a material
      adverse effect, as reasonably determined by HONEYWELL, on HONEYWELL or the
      operation of its businesses or its commercial relationships; provided,
      however that HONEYWELL acknowledges and agrees that PMA design houses are
      not PROTECTED PERSONS and manufacturers are not PROTECTED PERSONS unless
      they supply to HONEYWELL.

              

      

       

      
      

       

      
        	
                9.3.

              	
                [...***...]

              

      

       

       

       

       

      
        ***CONFIDENTIAL
TREATMENT REQUESTED

         

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

      

      ARTICLE
10.

       

      

       

      [...***...]

       

      

      

      

      

      

      

      

      

      

      ***CONFIDENTIAL TREATMENT
REQUESTED

      

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      [...***...]

      

      ARTICLE
11.

      TERM

       

      
        	
                11.1.

              	
                Term.  This
      AGREEMENT shall commence on the EFFECTIVE DATE and shall, unless earlier
      terminated in accordance with this AGREEMENT, continue in perpetuity
      (“TERM”).

              

      

       

      
      

      
        	
                11.2.

              	
                [...***...]

              

      

       

      
      

      
        	
                11.3.

              	
                [...***...]

              

      

       

      
      

       

       

       

       

      ***CONFIDENTIAL
TREATMENT REQUESTED

      
 

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      [...***...]

       

      
        	
                11.4.

              	
                Return of Information.  For
      a period not to exceed six (6) months after the effective date of
      termination of this AGREEMENT, LICENSEE may retain any CONFIDENTIAL
      INFORMATION and the right to use such CONFIDENTIAL INFORMATION and
      TECHNOLOGY (and IMPROVEMENTS, as necessary) in accordance with the terms
      and conditions of this AGREEMENT for the sole purpose of transitioning the
      maintenance and support of LICENSED PRODUCTS distributed prior to the
      termination date to HONEYWELL or a third party designated by
      HONEYWELL.  After expiration of such six (6) month period,
      (a) the licenses granted in Section 2.1 shall immediately
      terminate, and (b) all notes, compilations, and other types of
      extracts that contain Confidential Information shall be destroyed by
      LICENSEE within the thirty (30) day period following any such termination
      and the destruction certified by an officer of LICENSEE in writing
      delivered to HONEYWELL within such thirty (30) day
      period.

              

      

       

      
      

      ARTICLE
12.

      INSURANCE

       

      
        	
                12.1.

              	
                Insurance.  LICENSEE
      will maintain and carry liability insurance which includes but is not
      limited to commercial general liability (including product liability and
      for services to be performed, completed operations liability) in a sum no
      [...***...], automobile liability in a sum no [...***...], workmen’s compensation
      in an amount no less than the applicable statutory minimum requirement and
      employer’s liability in an amount of no [...***...], with insurance carriers
      acceptable to HONEYWELL.  LICENSEE will, if requested by
      HONEYWELL, furnish certificates of insurance from its carrier(s) on the
      foregoing coverages, which shall provide that such coverage shall not be
      changed without [...***...] advance written notification to HONEYWELL from the
      carrier(s).

              

      

       

      
      

      ARTICLE
13.

      DESIGN
AUTHORITY AND DIRECT SHIP AUTHORITY

       

      
        	
                13.1.

              	
                Design Authority.  HONEYWELL
      shall maintain design authority with respect to all LICENSED
      PRODUCTS.  Any LICENSEE IMPROVEMENTS must be reviewed and
      approved in writing by HONEYWELL prior to use by LICENSEE as permitted
      under this AGREEMENT in connection with LICENSED
      PRODUCTS.

              

      

       

      
      

      
        	
                13.2.

              	
                Direct Ship Authority.  Pursuant
      to the terms of this AGREEMENT, LICENSEE shall be permitted to have
      manufactured, sell, have sold, import and distribute the LICENSED PRODUCTS
      pursuant to HONEYWELL’S Direct Ship Authority.  In order to
      maintain and meet the requirements of HONEYWELL’S Direct Ship Authority,
      LICENSEE agrees to use the TECHNOLOGY in strict accordance with the terms
      and conditions set forth in this AGREEMENT, and not to use the TECHNOLOGY
      for any other purpose, including without limitation, to design or
      manufacture products, compare a product or design of a product, or obtain
      FAA PMA, Designated Engineering Representative approval, or other
      governmental approval to manufacture or repair a product.  At
      all times

              

      

       

      
      

       

      ***CONFIDENTIAL
TREATMENT REQUESTED

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      during the
TERM and subject to the terms hereof, LICENSEE will be entitled to ship LICENSED
PRODUCTS under HONEYWELL’S Direct Ship Authority as HONEYWELL’S Tier 1
Supplier.

       

      
        	
                13.3.

              	
                Manufacturing Requirements.  (a)  LICENSEE
      will have manufactured on its behalf only by those manufacturers
      authorized by HONEYWELL pursuant to HONEYWELL’S Direct Ship Authority
      (“APPROVED MANUFACTURERS”) any LICENSED PRODUCTS in accordance with the
      then-current guidelines of HONEYWELL’S Direct Ship Authority and other
      pertinent laws, rules and regulations of any REGULATORY AUTHORITIES in all
      applicable jurisdictions.  In the event that LICENSEE fails to
      comply with the guidelines of HONEYWELL’S Direct Ship Authority set forth
      in this Article 13, HONEYWELL may, at its option, have manufactured,
      sell, have sold, import and distribute the LICENSED PRODUCTS through
      (a) one of the licensees to the PRE-EXISTING AGREEMENTS, or
      (b) a manufacturer of the LICENSED PRODUCTS to have manufactured
      and/or procure those LICENSED PRODUCTS in respect of which LICENSEE is
      failing to comply with HONEYWELL’S Direct Ship Authority, until HONEYWELL
      determines in its reasonable discretion that LICENSEE has cured such
      failure.  The exercise of such right by HONEYWELL shall not be
      deemed to be a breach of LICENSEE’S exclusive rights under this AGREEMENT
      or the SUPPLY AGREEMENT, provided that HONEYWELL does not grant to any
      third party during such period, a license or sublicense to the TECHNOLOGY
      to have manufactured, sell, have sold, import or distribute the LICENSED
      PRODUCTS.  In the event that LICENSEE fails to comply with the
      guidelines of HONEYWELL’S Direct Ship Authority, HONEYWELL shall, at
      LICENSEE’s request and expense, use reasonable efforts to assist LICENSEE
      in regaining compliance as soon as
  possible.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                If
      LICENSEE desires to identify a new manufacturer for the LICENSED PRODUCTS,
      LICENSEE shall identify such manufacturer to HONEYWELL and request that
      such manufacturer become an APPROVED MANUFACTURER, and HONEYWELL shall
      analyze and consider the authorization of the proposed manufacturer as an
      APPROVED MANUFACTURER in respect of the LICENSED PRODUCTS, which
      authorization shall not be unreasonably withheld by HONEYWELL; provided
      that (a) LICENSEE will reimburse HONEYWELL for all out-of-pocket
      costs and expenses incurred by HONEYWELL in connection with its review and
      consideration of such authorization, and (b) the following shall be
      reasonable grounds for HONEYWELL to make its determination of whether or
      not to grant such authorizations:  (1) whether or not the
      proposed supplier has an AS9100 quality system or other equivalent quality
      system reasonably satisfactory to HONEYWELL, (2) the extent to which
      technical resubstantiation and/or requalification of the products supplied
      by such manufacturer is required in order to meet HONEYWELL design
      specifications, and (3) whether or not such manufacturer has obtained
      a score of at least 3 on the HONEYWELL supplier common assessment
      scorecard.

              

      

       

      
        	
                13.4.

              	
                Regulatory Requirements.  LICENSEE
      will maintain or cause to be maintained the LICENSED PRODUCTS’
      distribution facility’s registration with all applicable REGULATORY
      AUTHORITIES, if any.  LICENSEE will (a) report to every
      applicable REGULATORY AUTHORITY within any relevant time periods all
      events that are required to be reported by LICENSEE (including any death
      or serious bodily injury caused by any LICENSED PRODUCTS), and
      (b) deliver, within the permitted time periods, all annual or other
      periodic reports required to be delivered by LICENSEE to every applicable
      REGULATORY AUTHORITY.

              

      

       

      
      

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      
        	
                13.5.

              	
                Quality Assurance.  LICENSEE
      shall maintain ongoing quality assurance policies sufficient to satisfy
      its obligations under this
AGREEMENT.

              

      

       

      
      

      
        	
                13.6.

              	
                Distribution Service Levels.  HONEYWELL
      represents and warrants to LICENSEE that in connection with its operation
      of the BUSINESS, HONEYWELL maintained and requires its current third party
      distributors to maintain the following service standards (set forth in
      subsections (a)-(d) below) with respect to distribution of THIRD PARTY
      LICENSED PRODUCTS (“SERVICE LEVELS”).  LICENSEE shall maintain
      the following SERVICE LEVELS in connection with LICENSEE’S distribution of
      the THIRD PARTY LICENSED PRODUCTS pursuant to HONEYWELL’S Direct Ship
      Authority: [...***...]

              

      

       

       

       

       

      ***CONFIDENTIAL
TREATMENT REQUESTED

      
      

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      [...***...]

      

      

      
        	
                13.7.

              	
                Notices.  LICENSEE
      shall notify HONEYWELL in a timely manner when it becomes aware of any
      issue relating to regulatory compliance of any LICENSED PRODUCTS or any
      malfunction of any LICENSED PRODUCTS or any regulatory inspections or
      other communications with REGULATORY AUTHORITIES related to any LICENSED
      PRODUCTS or that would in any way impact any LICENSED PRODUCTS or
      LICENSEE’S performance of its responsibilities
      hereunder.  LICENSEE will notify HONEYWELL immediately if it
      becomes aware of any issue relating to the safety of any LICENSED PRODUCTS
      or of any death or bodily injury caused by any LICENSED PRODUCTS (or
      suspected to be caused by any LICENSED
  PRODUCTS).

              

      

       

      
        	
                13.8.

              	
                Regulatory Audit.  LICENSEE
      will permit authorized representatives of any REGULATORY AUTHORITY to
      inspect LICENSEE’S or its manufacturers’ plant and production facilities
      relating to or used in connection with the manufacture of the LICENSED
      PRODUCTS and will promptly notify HONEYWELL when LICENSEE receives notice
      of any such inspection.  LICENSEE will advise HONEYWELL of the
      findings of any regulatory inspection and will promptly take the necessary
      steps to correct any compliance deficiencies found by the REGULATORY
      AUTHORITY relating to the production of the LICENSED
      PRODUCTS.  LICENSEE further agrees to use commercially
      reasonable efforts to provide to HONEYWELL such documentation
      or

              

      

       

      
      

       

       

       

       

      ***CONFIDENTIAL
TREATMENT REQUESTED

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      conduct
such analyses as HONEYWELL may reasonably request in connection with any
regulatory submission or audit concerning the LICENSED PRODUCTS.

       

      
        	
                13.9.

              	
                Force Majeure.  LICENSEE
      is not liable for a breach of this Article 13 in the event and to the
      extent that such breach is caused by a FORCE MAJEURE, provided, that such
      FORCE MAJEURE shall not prevent or restrict HONEYWELL’S right to have
      manufactured or procure LICENSED PRODUCTS during the pendency of any such
      FORCE MAJEURE in accordance with
  Section 13.3.

              

      

       

      
        	
                13.10.

              	
                Use of HONEYWELL
      Name.

              

      

       

      
      

      (a)           Subject
to the restrictions set forth herein, during the TERM, HONEYWELL hereby grants
to LICENSEE effective as of the EFFECTIVE DATE, a limited, personal,
non-exclusive, non-assignable (except as provided in Section 14.5),
royalty-free license to use the HONEYWELL name and word mark (the “MARK”)
solely:

       

      (i) to
have the LICENSED PRODUCTS marked with the MARK and/or other HONEYWELL
trademarks, and/or the letters “HON” and/or the applicable PART number by
APPROVED MANUFACTURERS, if and only to the extent required by the drawings and
specifications for such LICENSED PRODUCTS,

       

      (ii) to
identify LICENSEE as Honeywell’s authorized exclusive distributor of the
applicable specific LICENSED PRODUCTS in LICENSEE’S sales literature, marketing
materials, and other communications made to REGULATORY AUTHORITIES, customers or
the public, and

       

      (iii) generally,
in communications made to the REGULATORY AUTHORITIES, to customers or to the
public, to accurately identify the LICENSED PRODUCTS as products manufactured by
HONEYWELL APPROVED MANUFACTURERS under HONEYWELL’S production approval, that
LICENSEE is distributing such LICENSED PRODUCTS under HONEYWELL’S Direct Ship
Authority, to otherwise accurately identify that LICENSEE is authorized to
distribute the LICENSED PRODUCTS, and/or to otherwise make use of the MARK which
qualifies as a statutory fair use described in Section 1115(b)(4) of the
Lanham Act and which is not prohibited by law.

       

      This
license does not include the right to sublicense, except to the extent necessary
to have LICENSED PRODUCTS bearing the MARK manufactured by APPROVED
MANUFACTURERS as permitted herein.  Except as expressly provided in
this Section 13.10 and in Section 5.14 of the APA, LICENSEE shall have
no further rights to use the MARK.  All use of the MARK as permitted
hereunder shall inure to the benefit of HONEYWELL.

       

      (b)           LICENSEE
shall use reasonable and good faith commercial efforts to safeguard the
established goodwill symbolized by the MARK and maintain the quality and
performance standards with respect to the LICENSED PRODUCTS as set forth in this
AGREEMENT.  LICENSEE shall not take any action or omit to take any
action which may reasonably be expected to derogate, erode or tarnish the Mark,
or otherwise diminish

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      the value
of the Mark.  If at any time, HONEYWELL determines that LICENSEE is
using or displaying the MARK in a manner which is or may likely be detrimental
to HONEYWELL’S interest or that degrades or tarnishes the value of the MARK or
the goodwill associated therewith, HONEYWELL may issue reasonable instructions
to LICENSEE concerning the manner in which, if any, LICENSEE may continue to use
the MARK and LICENSEE will promptly comply with such instructions and
discontinue such offending use.

       

      (c)           LICENSEE
acknowledges that the MARK is the sole and exclusive property of
HONEYWELL.  HONEYWELL is not conveying, and LICENSEE is not acquiring,
any right, title or interest, express or implied, in the MARK or its use,
individually or collectively, or to any associated trade names, corresponding
trademarks or other source indicators
of  HONEYWELL.  LICENSEE shall not knowingly at any time,
either during the life of or after expiration of this AGREEMENT,
(i) contest the validity of the MARK or HONEYWELL’S rights therein, or
(ii) assert or claim any other right to manufacture, sell or offer for sale
products or services under the MARK, or any trademark confusingly similar
thereto or knowingly assist any third party in such activities, or
(iii) register, or attempt to register, in connection with any products or
services anywhere in the world in any medium, any trademarks, trade names or
domain names that include, are identical to or are confusingly similar to the
MARK or any derivation therefrom.

       

      (d)           In
the event that LICENSEE fails to comply with any of its obligations set forth in
this Section 13.10, HONEYWELL shall provide LICENSEE with written notice of
such failure and LICENSEE shall have a period of thirty (30) days from
the date of such notice to cure such failure.  LICENSEE acknowledges
that an uncured breach of LICENSEE’S obligations set forth in this
Section 13.10 may cause HONEYWELL irreparable damage which cannot be
remedied in monetary damages in an action at law and may also constitute
infringement of the MARK.  In any such event, notwithstanding anything
to the contrary contained in Section 14.8 of this AGREEMENT, HONEYWELL
shall be entitled to an immediate injunction to cease or prevent such
irreparable harm, without being required to show actual damage or post an
injunction bond, in addition to any other legal or equitable remedies available
under this AGREEMENT or at law.  In addition, in the event of a
dispute between the parties regarding the MARK, the prevailing party shall be
entitled to recover its costs, expenses and attorneys’ fees incurred in
connection with enforcing the terms of this AGREEMENT as it relates to the
MARK.  A “prevailing party” shall mean a party who receives all or
substantially all of the relief sought by such party in an adjudication of its
claims arising out of or related to this AGREEMENT before a court of law or
other agreed upon tribunal.

       

      ARTICLE
14.

      MISCELLANEOUS

       

      
        	
                14.1.

              	
                Expenses.  Except
      as specifically set forth elsewhere herein, each of the PARTIES hereto
      shall pay its own expenses and costs incurred or to be incurred by it in
      negotiating, closing and carrying out this
    AGREEMENT.

              

      

       

      
      

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      
        	
                14.2.

              	
                Labeling and Marking.  Except
      as specifically set forth in Section 13.10 of this AGREEMENT and in
      the APA, LICENSEE shall not at any time during or after the TERM of this
      AGREEMENT use any trademark or trade name of HONEYWELL, including but not
      limited to Honeywell®, on any advertising or sales literature, brochures,
      packaging, documentation or the
like.

              

      

       

      
      

       

      
        	
                14.3.

              	
                Entire Agreement.  The
      AGREEMENT, the SUPPLY AGREEMENT and the APA, including all exhibits and
      schedules attached hereto and thereto,  constitute the entire
      agreement between the PARTIES hereto with respect to the subject matter
      hereof and supersedes any and all prior communications, representations,
      agreements and understandings between the PARTIES hereto, whether oral or
      written.  In the event of any conflict among the provisions of
      this AGREEMENT, the SUPPLY AGREEMENT and the APA, the provisions of this
      AGREEMENT shall control.

              

      

       

      
      

       

      
        	
                14.4.

              	
                Notices. All notices or
      other communications given or made pursuant to this AGREEMENT by a PARTY
      hereto to the other PARTY shall be in writing and shall be deemed to have
      been duly given or made (a) on the date of delivery if delivered
      personally, or by telecopy or facsimile, upon confirmation of receipt (if
      received on a business day or, if not received on a business day, on the
      first business day following such date of receipt), (b) on the first
      business day following the date of dispatch if delivered by a recognized
      next-day courier service, or (c) on the fifth business day following
      the date of mailing if delivered by registered or certified mail return
      receipt requested, postage prepaid and shall be delivered personally or
      mailed by registered or certified mail (postage prepaid, return receipt
      requested), sent by overnight courier or sent by telecopy, to the
      applicable PARTY at the following addresses or telecopy numbers (or at
      such other address or telecopy number for a PARTY as shall be specified by
      like notice):

              

      

       

      
        	
                 
      

              	
                If
      to HONEYWELL:

              

      

       

      
        	
                 
      

              	
                Honeywell
      International Inc.

              

      

      
        	
                 
      

              	
                101
      Columbia Road

              

      

      
        	
                 
      

              	
                P.O.
      Box 4000

              

      

      
        	
                 
      

              	
                Morristown,
      New Jersey  07962-2487

              

      

      
        	
                 
      

              	
                Attention:  General
      Counsel and Senior Vice President

              

      

      
        	
                 
      

              	
                Telecopy
      No.:  (973) 455-4217

              

      

       

      
        	
                 
      

              	
                If
      to LICENSEE:

              

      

       

      
        	
                 
      

              	
                BE
      Aerospace, Inc.

              

      

      
        	
                 
      

              	
                1400
      Corporate Center Way

              

      

      
        	
                 
      

              	
                Wellington,
      Florida 33414

              

      

      
        	
                 
      

              	
                Attention:  Thomas
      P. McCaffrey

              

      

      
        	
                 
      

              	
                Telecopy
      No. (561) 791-3966

              

      

       

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      
        	
                 
      

              	
                with
      a copy to:

              

      

       

      
        	
                 
      

              	
                M
      & M Aerospace Hardware, Inc., a B/E Aerospace
  Company

              

      

      
        	
                 
      

              	
                10000
      NW 15th Terrace

              

      

      
        	
                 
      

              	
                Miami,
      FL 33172

              

      

      
        	
                 
      

              	
                Attention:  John
      Cuomo

              

      

      
        	
                 
      

              	
                Telecopy
      No. (305) 629-2779

              

      

       

      
        	
                14.5.

              	
                Assignment. Each PARTY may
      assign or otherwise transfer all of its rights or obligations under this
      AGREEMENT without the consent of the other PARTY in connection with a
      merger, reorganization or sale of all or substantially all of the assets
      or business to which this AGREEMENT relates.  Each PARTY will
      provide the other PARTY with written notice of any such assignment or
      transfer no later than ten (10) days after the effective date of
      such assignment or transfer.  HONEYWELL may assign this
      AGREEMENT, or any portion of its rights or obligations hereunder, to one
      or more AFFILIATES without the prior written consent of
      LICENSEE.  LICENSEE may delegate its rights and obligations to M
      & M Aerospace Hardware, Inc. but LICENSEE remains liable for the
      performance by M & M Aerospace Hardware, Inc.  LICENSEE may
      assign or delegate any portion of its rights and obligations hereunder to
      any other AFFILIATES with the prior written consent of HONEYWELL, such
      consent not be unreasonably withheld.  Any other assignment,
      transfer or delegation of this AGREEMENT or the rights or obligations of a
      PARTY hereunder will require the consent of the other PARTY.  In
      the event of any assignment permitted hereunder, the assignee shall agree
      in writing to be bound by the terms and conditions of this AGREEMENT and
      to assume all of the obligations of the assigning PARTY
      hereunder.  Any other assignment or transfer of this AGREEMENT
      shall be void.  All terms and conditions of this AGREEMENT shall
      be binding on and inure to the benefit of the legal representatives,
      successors and permitted assigns of the
PARTIES.

              

      

       

      
      

      
        	
                14.6.

              	
                Amendment. The AGREEMENT may be
      amended only by written agreement duly executed by representatives of the
      PARTIES hereto.

              

      

       

      
      

      
        	
                14.7.

              	
                Applicable Law.  The
      AGREEMENT shall in all respects be interpreted, construed, and governed by
      and in accordance with the laws of the State of New York, disregarding any
      conflict of laws provisions which may require the application of the law
      of another jurisdiction.

              

      

       

      
      

      
        	
                14.8.

              	
                Dispute Resolution;
      Mediation; Jurisdiction.

              

      

       

      
      

      
        	
                 
      

              	
                (a)

              	
                In
      the event of any dispute, controversy or claim in any way arising out of
      or relating to this AGREEMENT (a “DISPUTE”), upon the written notice of
      either PARTY hereto, the PARTIES hereto shall attempt to negotiate a
      resolution of the DISPUTE.  If the PARTIES hereto are unable for
      any reason to resolve a DISPUTE within thirty (30) days after
      the receipt of such notice, the DISPUTE shall be submitted to mediation in
      accordance with Section 14.8(b)
hereof.

              

      

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      
        	
                 
      

              	
                (b)

              	
                Any
      DISPUTE not resolved pursuant to Section 14.8(a) hereof shall, at the
      request of either PARTY hereto (a “MEDIATION REQUEST”), be submitted to
      non-binding mediation in accordance with the then current CPR Mediation
      Procedure (the “PROCEDURE”), except as modified herein.  The
      mediation shall be held in New York, New York.  The PARTIES
      shall have twenty (20) days from receipt by a PARTY of a
      MEDIATION REQUEST to agree on a mediator.  If no mediator has
      been agreed upon by the PARTIES within twenty (20) days of
      receipt by a PARTY (or PARTIES) of a MEDIATION REQUEST, then any PARTY may
      request (on written notice to the other PARTIES), that the CPR appoint a
      mediator in accordance with the PROCEDURE.  All mediation
      pursuant to this clause shall be confidential and shall be treated as
      compromise and settlement negotiations, and no oral or documentary
      representations made by the PARTIES during such mediation shall be
      admissible for any purpose in any subsequent proceedings.  No
      PARTY hereto shall disclose or permit the disclosure of any information
      about the evidence adduced or the documents produced by the other PARTIES
      in the mediation proceedings or about the existence, contents or results
      of the mediation without the prior written consent of such other PARTIES
      except in the course of a judicial or regulatory proceeding or as may be
      required by LAW (as defined in the APA) or requested by a REGULATORY
      AUTHORITY or securities exchange.  Before making any disclosure
      permitted by the preceding sentence, the PARTY intending to make such
      disclosure shall give the other PARTIES reasonable written notice of the
      intended disclosure and afford the other PARTIES a reasonable opportunity
      to protect its interests.  If the DISPUTE has not been resolved
      within sixty (60) days of the appointment of a mediator, or
      within ninety (90) days of receipt by a PARTY of a MEDIATION
      REQUEST (whichever occurs sooner), or within such longer period as the
      PARTIES may agree to in writing, then any PARTY may file an action on the
      DISPUTE in any court having jurisdiction in accordance with
      Section 14.8(c).

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Each
      of the PARTIES hereby irrevocably and unconditionally consents to submit
      to the exclusive jurisdiction of the courts of the State of New York
      sitting in New York County and the courts of the United States of America
      located in New York County, New York for any litigation arising out of or
      relating to this AGREEMENT or the transactions contemplated hereby or any
      of the other transactions contemplated hereby (and agrees not to commence
      any litigation relating hereto except in such courts), and further agrees
      that service of any process, summons, notice or document by U.S.
      registered mail to its respective address set forth in Section 14.4,
      shall be effective service of process for any litigation brought against
      it in any such court.  Each of the PARTIES hereby irrevocably
      and unconditionally waives any objection to the laying of venue of any
      litigation arising out of this AGREEMENT or the transactions contemplated
      hereby or any of the other transactions contemplated hereby in the courts
      of the State of New York sitting in New York County or the courts of the
      United States of America located in New York County, New York and hereby
      further irrevocably and unconditionally waives and agrees not to plead or
      claim in any such court that any such litigation brought in any such court
      has been brought in an inconvenient forum.  EACH OF THE PARTIES
      HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE
      TO TRIAL BY JURY IN CONNECTION WITH ANY LITIGATION ARISING OUT OF OR
      RELATING IN ANY WAY TO THIS
AGREEMENT.

              

      

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

      
        	
                14.9.

              	
                Export
      Compliance.  This AGREEMENT is subject to all applicable
      laws and regulations of the U.S. Government.  LICENSEE shall be
      responsible for obtaining, and for retaining documentation evidencing
      compliance with, any necessary import licenses, export licenses or other
      governmental authorizations required in connection with any disclosure by
      it under this AGREEMENT, including disclosures to foreign nationals
      located within a facility of a PARTY hereto, as the case may
      be.  Furnishing of information shall be subject to prior receipt
      of all necessary governmental
approvals.

              

      

       

      
      

      
        	
                14.10.

              	
                No Third Party Rights.  The
      AGREEMENT is not intended and shall not be construed to create any rights
      in any party other than HONEYWELL and LICENSEE and no other person shall
      assert any rights as a third party beneficiary
      hereunder.

              

      

       

      
      

      
        	
                14.11.

              	
                Counterparts.  The
      AGREEMENT may be executed simultaneously in two or more
      counterparts (including by facsimile or electronic .pdf submission),
      each of which shall be deemed an original, but all of which together shall
      constitute one and the same
instrument.

              

      

       

      
      

      
        	
                14.12.

              	
                Exhibits.  EXHIBITS
      attached hereto are incorporated into this AGREEMENT and shall be deemed a
      part hereof as if set forth herein in full.  References herein
      to “this AGREEMENT” and the words “therein”, “hereof” and words of similar
      import refer to this AGREEMENT (including EXHIBITS) as an
      entirety.  In the event of any conflict between the provisions
      of this AGREEMENT and any such EXHIBIT, the provisions of this AGREEMENT
      shall control.

              

      

       

      
      

       

      
        	
                14.13.

              	
                Waivers.  Any waiver
      of rights hereunder must be set forth in writing.  A waiver of
      any breach or failure to enforce any of the terms or conditions of this
      AGREEMENT shall not in any way affect, limit or waive any PARTY’S rights
      at any time to enforce strict compliance thereafter with every term or
      condition of this AGREEMENT.

              

      

       

      
      

      
        	
                14.14.

              	
                Severability.  If any
      term or other provision of this AGREEMENT is invalid, illegal or incapable
      of being enforced by any rule of Law or public policy, all other
      conditions and provisions of this AGREEMENT shall nevertheless remain in
      full force and effect so long as the economic or legal substance of the
      transactions contemplated hereby is not affected in any manner materially
      adverse to any PARTY.  Upon a determination that any term or
      other provision is invalid, illegal or incapable of being enforced, the
      PARTIES shall negotiate in good faith to modify this AGREEMENT so as to
      affect their original intent as closely as possible in an acceptable
      manner to the end that the transactions contemplated hereby are fulfilled
      to the maximum extent possible.

              

      

       

      
      

      
        	
                14.15.

              	
                Construction.  The
      headings of Articles and Sections in this AGREEMENT are provided for
      convenience only and will not affect its construction or
      interpretation.  The
language

              

      

       

      
      

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      used in
this AGREEMENT is the language chosen by the PARTIES to express their mutual
intent, and no rule of strict construction shall be applied against any
PARTY.

       

      [Remainder
of page left intentionally blank]

       

       

       

       

       

       

      
 

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      IN WITNESS
WHEREOF, HONEYWELL and LICENSEE have duly executed and delivered this AGREEMENT
as of the day and year first above written.

       

      
        
          	 	
                  HONEYWELL
      INTERNATIONAL INC.

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ ANNE
      T. MADDEN	 
	 	 	
                  Name:  Anne
      T. Madden

                	 
	 	 	Title:	 
	 	 	 	 

        

      

      
        	
                 
      

              	
                 

              

      

       

      
        
          	 	
                  LICENSEE

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ THOMAS
      P. MCCAFFREY	 
	 	 	
                  Name:  Thomas
      P. McCaffrey

                	 
	 	 	
                  Title:

                	 
	 	 	 	 

        

      

       

       

       

      
        Signature
Page to Intellectual Property License Agreement

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      EXHIBIT
A

       

      TECHNOLOGY

       

      
        	
                (I)

              	
                Technology to be
      provided to LICENSEE for the PARTS listed on Exhibits B, C, D, E and
      F

              

      

       

      
        	
                 
      

              	
                ·

              	
                PART
      prints which include product dimensions, definitions, tolerances,
      applicable processing, materials, specifications and approved
      vendors.

              

      

      
        	
                 
      

              	
                ·

              	
                Specifications

              

      

      
        	
                 
      

              	
                ·

              	
                Supplementary
      Purchase Order Conditions (SPOC)
Manual

              

      

      
        	
                 
      

              	
                ·

              	
                Listing
      of APPROVED MANUFACTURERS for each
PART

              

      

      
        	
                 
      

              	
                ·

              	
                Direct
      Ship Authority Letter

              

      

      
        	
                 
      

              	
                ·

              	
                HONEYWELL
      data that the REGULATORY AUTHORITIES advise LICENSEE are necessary for
      exercising ODAR/ODA privileges at the LICENSEE
  facilities.

              

      

       

      
        	
                (II)

              	
                Access
      to the data contained in or generated by the following applications of
      Honeywell Systems related to the Licensed Products to be provided to
      LICENSEE:

              

      

       

      
        	
                 
      

              	
                ·

              	
                Honeywell
      Product Data Management (PDM) System, the repository of the data required
      to manufacture a PART.

              

      

      
        	
                 
      

              	
                ·

              	
                Approved
      Processing Supplier List (APSL) for each process specification via the
      Supplier Portal web-based system that LICENSEE is already
      using

              

      

      
        	
                 
      

              	
                ·

              	
                FAIR
      Tracker to assure a first article Is on file every three (3)
      years.

              

      

      
        	
                 
      

              	
                ·

              	
                eCats
      in case a Request for Material Review Action (RMRA) deviation is requested
      to ship Parts.

              

      

      
        	
                 
      

              	
                ·

              	
                FAA
      Production Approval System (FPAS), FAA’s approved parts list to generate
      the 8130-3 tags.

              

      

      
        	
                 
      

              	
                ·

              	
                Honeywell
      Consumable Solutions’ Procedures/Work Instructions Repository for each
      Part.

              

      

      
        	
                 
      

              	
                ·

              	
                MACPAC
      (HON Engines MRP ordering System).

              

      

      
        	
                 
      

              	
                ·

              	
                View
      Rights only to FPAD (Federal Production Approval Database), which is a
      Honeywell database that transfers 8130-3 data from FPAS via
      SAP

              

      

      
        	
                 
      

              	
                ·

              	
                HON
      Electronic Store Front (HON Sky Harbor ordering system), and any successor
      system thereto

              

      

      
        	
                 
      

              	
                ·

              	
                User
      IDS, passwords or other authorizations provided to LICENSEE to access the
      foregoing applications.

              

      

       

      (III)           LICENSEE
to receive:

       

      
        	
                 
      

              	
                ·

              	
                Any
      Honeywell Aerospace Quality Alerts.

              

      

      
        	
                 
      

              	
                ·

              	
                Any
      HONEYWELL “Stop Orders” to purge
inventory.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      EXHIBIT
B

       

      EXISTING
EXCLUSIVE LICENSED PRODUCTS

       

      [...***...]

       

       

       

       

       

       

      ***CONFIDENTIAL
TREATMENT REQUESTED ON 783 PAGES

    

    
      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

      EXHIBIT
C

       

      EXISTING
NON-EXCLUSIVE LICENSED PRODUCTS

       

      [...***...]

       

       

       

       

       

      
        ***CONFIDENTIAL
TREATMENT REQUESTED ON 135 PAGES

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
D

       

      HONEYWELL
LICENSED PRODUCTS

       

      Exhibit D
consists of the combination of Exhibit C (Existing Non-Exclusive Licensed
Products) and Attachment 1B of the Supply Agreement (which attachment is
incorporated by reference herein).

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
E

       

      THIRD
PARTY LICENSED PRODUCTS

       

       

       

      [To be
provided by LICENSEE after Closing]

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
F

       

      NEW
LICENSED PRODUCTS

       

       

       

       

      [To be
provided by HONEYWELL after Closing]

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
G

       

      PRE-EXISTING
AGREEMENTS

       

      [...***...]

       

      ***
CONFIDENTIAL TREATMENT REQUESTED

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
H

      QUALIFYING
ENTITIES

       

       

      
 

        [...***...]

         

        ***
CONFIDENTIAL TREATMENT REQUESTEDa5823424ex10-3.htm

    
      Exhibit
10.3

      

      Execution
Copy

     

     

     

     

     

     

    STOCKHOLDERS
AGREEMENT

     

    between

     

    BE
AEROSPACE, INC.

     

    and

     

    SELLER
ENTITIES ON SIGNATURE PAGES HERETO

     

    dated

     

    July 28,
2008

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      Table
of Contents

       

      Page     

       

    

    
      	
              Article I

              CERTAIN
      DEFINITIONS

            
	 
	
              1.01.

            	
              Certain
      Definitions

            	
              1

            
	 	 	 
	
              Article
      II

              RESTRICTIONS
      ON TRANSFERABILITY

            
	 
	
              2.01.

            	
              General

            	
              4

            
	
              2.02.

            	
              Improper
      Sale or Encumbrance

            	
              4

            
	
              2.03.

            	
              Restrictive
      Legends

            	
              4

            
	 	 	 
	
              Article
      III

              REGISTRATION
      RIGHTS

            
	 
	
              3.01.

            	
              Demand
      Registration

            	
              5

            
	
              3.02.

            	
              Piggyback
      Registration

            	
              6

            
	
              3.03.

            	
              Blackout
      Periods

            	
              7

            
	
              3.04.

            	
              Registration
      Procedures

            	
              8

            
	
              3.05.

            	
              Stockholder
      Information and Undertakings.

            	
              10

            
	
              3.06.

            	
              Expenses

            	
              11

            
	
              3.07.

            	
              Indemnification
      and Contribution

            	
              11

            
	
              3.08.

            	
              Certain
      Additional Limitations on Registration Rights

            	
              13

            
	
              3.09.

            	
              No
      Inconsistent Agreements

            	
              13

            
	
              3.10.

            	
              Selection
      of Underwriters to Serve as Book-Running Manager

            	
              14

            
	
              3.11.

            	
              Reports

            	
              14

            
	 	 	 
	
              Article
      IV

              ADDITIONAL
      RIGHTS

            
	 
	
              4.01.

            	
              No
      Participation in a Group or Solicitation of Proxies

            	
              14

            
	
              4.02.

            	
              Limitation
      on the Prohibition on Ownership of Common Stock

            	
              15

            
	 	 	 
	
              Article
      V

              MISCELLANEOUS

            
	 
	
              5.01.

            	
              Termination

            	
              15

            
	
              5.02.

            	
              Notices

            	
              16

            
	
              5.03.

            	
              Expenses

            	
              16

            
	
              5.04.

            	
              Headings

            	
              16

            
	
              5.05.

            	
              Severability

            	
              17

            
	
              5.06.

            	
              Entire
      Agreement; No Third-Party Beneficiaries

            	
              17

            
	
              5.07.

            	
              Amendment;
      Waiver

            	
              17

            
	
              5.08.

            	
              Binding
      Effect; Assignment

            	
              17

            
	
              5.09.

            	
              Specific
      Performance

            	
              17

            

    

     

     

    
       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

    

    
      Table
of Contents

       

      Page

    

     

    
      	
              5.10.

            	
              Governing
      Law

            	
              17

            
	
              5.11.

            	
              Dispute
      Resolution; Mediation; Jurisdiction

            	
              18

            
	
              5.12.

            	
              Public
      Announcements

            	
              19

            
	
              5.13.

            	
              Construction

            	
              19

            
	
              5.14.

            	
              Counterparts

            	
              19

            

    

     

     

     

    
       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

    

    
      STOCKHOLDERS
AGREEMENT

       

      This
Stockholders Agreement (this “Agreement”) is made
effective as of July 28, 2008, between BE Aerospace, Inc., a Delaware
corporation (the “Company”) and Seller
Entities on the signature pages hereto (collectively, the “Stockholder”).

       

      W I T N E S S E T
H:

       

      WHEREAS,
the Company and the Stockholder have entered into a Stock and Asset Purchase
Agreement, dated as of June 9, 2008 (the “Stock and Asset Purchase
Agreement”), pursuant to which the Company intends to acquire (the “Acquisition”) certain
entities and assets comprising the Stockholder’s “Consumables Solutions”
division;

       

      WHEREAS,
upon consummation of the transactions contemplated by the Stock and Asset
Purchase Agreement, the Stockholder will be issued in connection with the
Acquisition, an aggregate of 6,000,000 shares of Common Stock (the “Stockholder Stock”,
which includes any other shares of Common Stock acquired by the Stockholder by
way of stock dividend or stock split on the Stockholder Stock), constituting
approximately 6.05% of the shares of Common Stock outstanding on such date;
and

       

      WHEREAS,
the Company and the Stockholder wish to enter into this Agreement to set forth
their agreement as to the matters set forth herein with respect to the
Stockholder’s ownership of shares of Common Stock.

       

      NOW,
THEREFORE, in consideration of the premises and the mutual agreements and
covenants hereinafter set forth, and for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company and the
Stockholder hereby agree as follows:

       

      ARTICLE
I

      CERTAIN
DEFINITIONS

       

      1.01.      
Certain
Definitions.  As
used in this Agreement, the following terms shall have the following respective
meanings:

       

      “Affiliate” means,
with respect to any specified Person, any Person that directly, or indirectly
through one or more intermediaries, Controls, is Controlled by, or is under
common Control with, such specified Person.

       

      “Beneficial Ownership”
or “Beneficially
Own” has the meaning given such term in Rule 13d-3 under the
Exchange Act.

       

      “Board” means the
board of directors of the Company.

       

      “Business Day” means
any day except a Saturday, Sunday or other day on which commercial banking
institutions in the State of New York are authorized or required by Law to
close.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       “Commission” means the
Securities and Exchange Commission.

       

      “Common Stock” means
the Common Stock, par value $0.01 per share, of the Company.

       

      “Control” (including
the terms “Controlled
by” and “under
common Control with”) means, the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, as trustee or
executor, by contract or otherwise, including, without limitation, the
ownership, directly or indirectly, of securities having the power to elect a
majority of the board of directors or similar body governing the affairs of such
Person.

       

      “Encumbrance” means
any security interest, pledge, mortgage, lien, charge, adverse claim of
ownership or use, or other encumbrance of any kind other than pursuant to a
bona fide financing
transaction.

       

      “Exchange Act” means
the United States Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

       

      “Group” means a group
within the meaning of Section 13d-3 of the Exchange Act.

       

      “Law” means any
statute, law, ordinance, regulation, rule, code, executive order, injunction,
judgment, decree or other order issued or promulgated by any national,
supranational, state, federal, provincial, local or municipal government or any
administrative or regulatory body with authority therefrom with jurisdiction
over the Company and its Subsidiaries or the Stockholder and its Subsidiaries,
as the case may be.

       

      “Person” means, any
individual, partnership, firm, corporation, association, trust, unincorporated
organization or other entity, as well as any syndicate or group that would be
deemed to be a person under Section 13(d)(3) of the Exchange
Act.

       

      The terms
“register,”
“registered”
and “registration” refer
to a registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement by the Commission.

       

      “Registrable
Securities” means (a) the shares of Stockholder Stock held by the
Stockholder and (b) any securities issuable or issued or distributed in
respect of the Stockholder Stock identified in clause (a) by way of
stock dividend or stock split or in connection with a combination of shares,
recapitalization, reorganization, merger, consolidation or otherwise; provided that (x) Registrable
Securities shall cease to be Registrable Securities from and after the time that
such Registrable Securities have been sold by the Stockholder and (y) all Common
Stock Beneficially Owned by Stockholder shall cease to be Registrable Securities
upon the earlier of (A) the time that the aggregate number of shares of
Common Stock held by the Stockholder constitute less than 25% of the shares of
Common Stock received by the Stockholder pursuant to the Stock and Asset
Purchase Agreement and (B) five years after the date hereof.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Registration
Statement” means any Demand Registration Statement the registration
statement related to a Piggyback Registration, or any filing that may be made by
the Company, which would permit the offer and sale of the Stockholder Stock
pursuant to a registration statement of the Company.

       

      “Representative”
means, as to any Person, its directors, officers, employees, agents, advisors
(including, without limitation, financial advisors, counsel and
accountants).

       

      “Sale” means, in
respect of any Common Stock, any sale, assignment, transfer, distribution or
other disposition thereof or of a participation therein, or other conveyance of
legal or beneficial interest therein, or any short position in the Common Stock
or any other action or position with respect to the Common Stock otherwise
reducing risk related to ownership through hedging or other derivative
instruments.

       

      “Securities Act” means
the United States Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

       

      “Sell” means to
complete a Sale.

       

      “Subsidiary” or “Subsidiaries” of any
Person means any corporation, partnership, limited liability company, joint
venture, association or other legal entity of which such Person (either alone or
together with any other Subsidiary), owns, directly or indirectly, more than 50%
of the stock or other equity interests, the holders of which are generally
entitled to vote for the election of the board of directors or other governing
body of such corporation or other legal entity.

       

      “Third Party” means,
with respect to the Stockholder, any other Person other than the Stockholder,
the Company and any affiliate of the Company or the Stockholder.

       

      Each of
the following terms is defined in the Section set forth opposite such
term:

       

      
        	
                Term

              	
                Section

              
	 	 
	
                Acquisition

              	
                Preamble

              
	
                Agreement

              	
                Preamble

              
	
                Blackout
      Period

              	
                3.03

              
	
                Company

              	
                Preamble

              
	
                Demand
      Registration

              	
                3.01(a)

              
	
                Demand
      Registration Statement

              	
                3.01(a)

              
	
                Indemnified
      Party

              	
                3.07(d)

              
	
                Indemnifying
      Party

              	
                3.07(d)

              
	
                Initial
      Restricted Period

              	
                2.01(a)

              
	
                Initial
      Sale Period

              	
                2.01(c)

              
	
                Maximum
      Number of Securities

              	
                3.02(c)

              
	
                Piggyback
      Registration

              	
                3.02(a)

              
	
                Stockholder

              	
                Preamble

              
	
                Stock
      and Asset Purchase Agreement

              	
                Preamble

              
	
                Stockholder
      Stock

              	
                Preamble

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
II

      RESTRICTIONS
ON TRANSFERABILITY

       

      2.01.        General.  (a)  The
Stockholder understands and agrees that the Stockholder Stock has not been
registered and constitutes restricted securities under the Securities
Act.

       

      (b)           During
the period ending one year after the date hereof (the “Initial Restricted
Period”), the Stockholder may not make any Sale of, or create, incur or
assume any Encumbrance with respect to, any of the shares of Common Stock
acquired by the Stockholder pursuant to the Stock and Asset Purchase Agreement
or any other shares of Stockholder Stock other than pursuant to (i) a
transaction expressly approved by the Board or (ii) the terms of a Piggyback
Registration.

       

      (c)           During
the period beginning after the Initial Restricted Period and ending on the one
year anniversary thereof (the “Initial Sale
Period”), the Stockholder may make or solicit (i) any Sale of, or create,
incur or assume any Encumbrance with respect to, up to 50% of the Stockholder
Stock or (ii) a Sale pursuant to (A) a transaction expressly approved by the
Board or (B) the terms of a Piggyback Registration.

       

      (d)           The
Stockholder shall be permitted at anytime to Sell any Common Stock to any direct
or indirect wholly-owned Subsidiary of the Honeywell International Inc.; provided that (i) any such
wholly-owned Subsidiary becomes subject to the restrictions on transferability
contained in this Article II and (ii) Sales of Common Stock to Honeywell Holding
France SAS prior to January 1, 2009 shall not exceed $28,000,000 in the
aggregate (as determined by reference to the fair market value of Common Stock
on the date of the applicable Sale or Sales) and (iii) no Sale of Common Stock
will be made to Honeywell Deutschland GmbH prior to January 1,
2009.

       

      (e)           After the Initial Sale Period, the
Stockholder may make any Sale of all of the Stockholder Stock.  The
Stockholder agrees that it will not make any such Sale of any of the
Stockholder Stock except in compliance with the Securities
Act.

       

      2.02.        Improper Sale or
Encumbrance.  Any
attempt to make any Sale of, or create, incur or assume any Encumbrance with
respect to, any shares of Common Stock not in compliance with this Agreement
shall be null and void and of no force and effect, and the Company shall not
give any effect in the Company’s stock records to such attempted Sale or
Encumbrance.

       

      2.03.        Restrictive
Legends.  (a)  Each
certificate representing the shares of Stockholder Stock shall be stamped or
otherwise imprinted with legends in substantially the form reflected in
Section 2.03(a)(i) and Section 2.03(a)(ii) below (in addition to any legends
required by agreement or by applicable state securities laws);

       

      (i)           THE
SHARES OF COMMON STOCK OF BE AEROSPACE, INC, REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE
BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE
SALE OR DISTRIBUTION THEREOF.  SUCH SHARES GENERALLY MAY NOT BE SOLD
OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR PURSUANT TO AN APPLICABLE
EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID
ACT.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (ii)           THE
SHARES OF COMMON STOCK OF BE AEROSPACE INC. REPRESENTED HEREBY ARE SUBJECT TO
CERTAIN RESTRICTIONS UNDER THE TERMS OF THE STOCKHOLDER AGREEMENT DATED JULY 28,
2008, AS AMENDED FROM TIME TO TIME, BETWEEN BE AEROSPACE, INC. AND THE HOLDER
HEREOF AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT
IN ACCORDANCE WITH THE TERMS OF THAT AGREEMENT.

       

      (b)           The
Stockholder consents to the Company making a notation on its records and giving
instructions to any transfer agent of its capital stock in order to implement
the restrictions on transfer established in this Agreement.

       

      (c)           At
the request of the Stockholder, the Company shall provide any necessary
instructions to the transfer agent for its Common Stock to, (i) after the
Initial Restricted Period and in connection with a Sale of Stockholder Stock,
remove the legends described in Section 2.03(a) from each certificate evidencing
shares of Stockholder Stock transferred in compliance with the terms of
Section 2.01 and remove any transfer agent instructions prohibiting such
transfer and (ii) after the Initial Sale Period, with written notice from the
Stockholder to the Company, remove from the certificates evidencing all of the
Stockholder Stock the legends described in Section 2.03(a) and remove any
transfer agent instructions prohibiting such transfer.

       

      ARTICLE
III

      REGISTRATION
RIGHTS

       

      3.01.        Demand
Registration.  (a)  Subject
to Section 2.01 hereof, after receipt of a written request from the Stockholder
requesting that the Company effect a registration (each, a “Demand Registration”)
under the Securities Act covering all or part of the Stockholder’s Registrable
Securities (which such written request specifies information solely with respect
to the Stockholder required by the Company to prepare necessary documentation to
effect such Demand Registration regarding the intended method or methods of
disposition thereof and the number of shares to be disposed of) the Company
shall, no later than 30 days after receipt of the written request for a Demand
Registration, file with the Commission and use its reasonable best efforts to
cause to be declared effective a registration statement or other appropriate
filing with the Commission (a “Demand Registration
Statement”), which filing shall be compliant with Section 3.04, relating
to all shares of Registrable Securities which the Company has been so requested
by the Stockholder be registered for Sale; provided, however, that the
Company shall not be required to effect more than two (2) Demand Registrations;
and provided,
further, that
the Company shall not be required to effect a Demand Registration
(i) unless the aggregate number of the Registrable Securities requested to
be registered constitute at least 25% of the shares of Common Stock received by
the Stockholder pursuant to the Stock and Asset Purchase Agreement or
(ii) at the time when, because the Company’s independent public accounting
firm has not completed its audit or review of the Company’s annual or quarterly
financial statements, the Company is not able to file a registration statement
that complies with Securities Act (it being understood that the Demand
Registration shall be delayed until such filing is made).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (b)           If
the Demand Registration Statement has not been made available to the Stockholder
within sixty (60) days after receipt of the written request for a Demand
Registration as required by Section 3.01(a), the Stockholder shall be entitled
to withdraw such request for a Demand Registration Statement by written notice
to the Company and such request for a Demand Registration shall not be
considered a Demand Registration pursuant to this Agreement.  Upon
receipt of such notice withdrawing such request for a Demand Registration, the
Company shall be permitted to cease all activities related to such request for a
Demand Registration.

       

      (c)           Subject
to Section 3.01(b), if the Company complies with the requirements applicable to
it in connection with a Demand Registration, and there is no material adverse
event relating to the Company the result of which, in the judgment of the
underwriter(s) selected to be book-running manager(s) for such Demand
Registration, adversely impacts the ability of the Stockholder to consummate a
Sale or the pricing related to such Sale pursuant to a Demand Registration, and
the Stockholder is unable or unwilling to sell Registerable Securities, such
Demand Registration shall constitute a Demand Registration pursuant to Section
3.01 and the Company shall be permitted to cease all activities related to such
request for a Demand Registration.

       

      (d)           The
Company and any other securityholder of the Company shall be permitted to Sell
Common Stock pursuant to a Demand Registration Statement; provided that, to the extent
the underwriter(s) acting as book-running manager(s) of such Demand Registation
determines that aggregate number of shares of Common Stock to be sold in the
Demand Registration is greater than the total number of shares of Common Stock
which can be sold in the offering without having an adverse impact on the
distribution or pricing of such Common Stock or otherwise having an adverse
impact on the marketability thereof, the Stockholder shall be permitted to Sell
all the shares of Common Stock it intends to dispose of as set forth in the
request for a Demand Registration delivered pursuant Section 3.01(a) of this
Agreement.

       

      3.02.        Piggyback
Registration.  (a)  If
the Company proposes to conduct an underwritten offering of Common Stock or
facilitate the sale of Common Stock by any other holder of its Common Stock in
an underwritten offering (other than through a resale registration statement, a
registration statement on Form S-4 or S-8 or any successor form for securities
to be offered in a transaction of the type referred to in Rule 145 under
the Securities Act or of stock issued to employees of the Company pursuant to
any employee benefit plan, respectively) (a “Piggyback
Registration”), it will give written notice to the Stockholder at least
ten (10) Business Days before the filing with the Commission of the registration
statement related to such Piggyback Registration, which notice shall set forth
the intended method of disposition of the Common Stock proposed to be
registered.  The notice shall offer to include in such filing such
shares of Registrable Securities as the Stockholder may request, subject to the
restrictions and limitations described in this Agreement.

       

      (b)           The
Stockholder shall advise the Company in writing within seven (7) Business Days
after the date of such offer from the Company, setting forth the number of such
Registrable Securities for which registration is requested.  The
Company shall thereupon include in such filing the number of Registrable
Securities for which registration is so requested, subject to paragraph (c)
below.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (c)           If
the underwriter(s) acting as book-running manager(s) of such proposed public
offering advises that the amount of Registrable Securities requested to be
included in the Piggyback Registration in addition to the securities being
registered by the Company and any other selling security holders would be
greater than the total number of securities which can be sold in the offering
without having an adverse impact on the distribution or pricing of such
securities or otherwise having a having an adverse impact on the marketability
thereof (the “Maximum
Number of Securities”), then:

       

      (i)       in
the event the Company initiated the Piggyback Registration, the Company shall
include in such Piggyback Registration first, all the shares of
Common Stock the Company proposes to register and second, the shares of Common
Stock of all other selling security holders, including the Stockholder, to be
included in such Piggyback Registration in an amount which together with the
shares of Common Stock the Company proposes to register, shall not exceed the
Maximum Number of Securities, such amount to be allocated among the Stockholder
and the other selling security holders on a pro rata basis (based on the
number of shares of Common Stock of the Company held by each such selling
security holder, including the Stockholder);

       

      (ii)           in
the event any holder of Common Stock of the Company (other than the Stockholder)
initiated the Piggyback Registration, the Company shall be permitted to include
in such Piggyback Registration first, the shares of Common
Stock such initiating security holder proposes to register, second, the shares of Common
Stock of any other selling security holders (including the Stockholder), in an
amount which together with the shares of Common Stock the initiating security
holder proposes to register, shall not exceed the Maximum Number of Securities,
such amount to be allocated among such other selling security holders on a pro rata basis (based on the
number of shares of Common Stock of the Company held by each such selling
security holder, including the Stockholder) and third, any shares of Common
Stock of the Company proposes to register, in an amount which together with the
securities the initiating security holder and the other selling security holders
propose to register, shall not exceed the Maximum Number of
Securities;

       

      (d)           Nothing
in this Section 3.02 shall prohibit the Company from withdrawing a Piggyback
Registration.

       

      3.03.        Blackout
Periods.  The
Company shall have the right to delay the filing or effectiveness of a
Registration Statement and any related actions required pursuant to
Section 3.01 or 3.02 in connection with a Demand Registration or Piggyback
Registration for periods aggregating not more than ninety (90) days in any
twelve-month period (each such period, a “Blackout Period”) in
the event that there is a possible acquisition or business combination or other
transaction, financing, business development or event involving the Company that
would in the good faith determination of the Board require disclosure in a
Registration Statement or prospectus, and the Company determines in the exercise
of its reasonable judgment that such disclosure is not in the best interest of
the Company or obtaining any financial statements relating to any such
acquisition or business combination required to be included in the Registration
Statement, after using its reasonable best efforts to obtain such financial
statements, would be impractical.  The Company shall promptly give the
Stockholder written notice of such determination.  Upon receipt of notice from the Company of its delay in
the filing or declaring the effectiveness of a Registration Statement during a
Blackout Period, the Stockholder may withdraw its Demand Registration at any
time prior to the expiration of the Blackout Period and such withdrawn Demand
Registration will not be counted as a Demand Registration for purposes of the
limitations in Section 3.01(a).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3.04.       Registration
Procedures.  If
the Company is effecting a registration pursuant to Section 3.01 or Section
3.02, the Company will:

       

      (a)           prepare
and file with the Commission a Registration Statement with respect to such
securities that complies in all respects with the Securities Act and use its
reasonable best efforts to cause such Registration Statement promptly to become
and remain effective for such period of time as may be reasonably necessary for
the disposition of the Stockholder Stock, taking into account the nature of the
Sale contemplated by such registration;

       

      (b)         prepare
and file with the Commission such amendments and supplements to such
Registration Statement and the prospectus used in connection with such
Registration Statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
Registration Statement, and keep such Registration Statement effective for such
period of time necessary for the disposition of the Stockholder Stock, taking
into account the nature of the Sale contemplated by such
registration;

       

      (c)           furnish
to the Stockholder two conformed copies of the applicable Registration Statement
and each such amendment and supplement thereto, and a number of copies of any
prospectus, including a preliminary prospectus, in conformity with the
requirements of the Securities Act, and such other documents, as the Stockholder
may reasonably request in order to facilitate the disposition of Registrable
Securities owned by them contemplated by such Sale;

       

      (d)         if
required by applicable law, use its reasonable best efforts to register and
qualify the securities covered by such Registration Statement under such other
securities or “Blue Sky” laws of such U.S. jurisdictions as shall be reasonably
requested by the Stockholder (and maintain such registrations and qualifications
effective for the applicable period of time set forth in Section 3.04(a) above,
and to do any and all other acts and things reasonably necessary or advisable to
enable the Stockholder to consummate the disposition in such jurisdictions of
such shares as contemplated by such registration); provided that the Company
shall not be required in connection therewith or as a condition thereto to
qualify to do business or to file a general consent to service of process in any
such states or jurisdictions;

       

      (e)         furnish,
at the request of the Stockholder requesting registration of Registrable
Securities pursuant to Section 3.01, or Section 3.02, on the date that the
shares of Registrable Securities are delivered to the underwriters for sale
pursuant to such registration, (i) the signed opinions, dated such date, of
the internal and independent legal counsel representing the Company for the
purpose of such registration, addressed to the underwriters as to such matters
as such underwriters may reasonably request and as would be customary for the
Company in such a transaction; (ii) a customary “comfort letter” from the
independent certified public accountants of the Company, addressed to the
underwriters;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (f)         enter
into customary agreements (including an underwriting agreement in customary form
for the Company) and take such other actions as are reasonably required in order
to expedite or facilitate the disposition of such Registrable
Securities;

       

      (g)         use
its reasonable best efforts to cause all such Registrable Securities subject to
a permitted Sale hereunder to be listed on each securities exchange or quotation
system on which similar securities issued by the Company are listed or
traded;

       

      (h)         use
its reasonable best efforts to prevent the issuance or obtain the withdrawal of
any order suspending the effectiveness of such Registration Statement at the
earliest possible time;

       

      (i)         use
its reasonable best efforts to comply with all applicable rules and regulations
of the Commission;

       

      (j)         give
written notice to the Stockholder:

       

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

       

      (ii)           of
any request by the Commission for amendments or supplements to such Registration
Statement or the prospectus included therein or for additional
information;

       

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

       

      (iv)           of
the receipt by the Company or its legal counsel of any notification with respect
to the suspension of the qualification of the Common Stock for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose; and

       

      (v)           of
the happening of any event that requires the Company to make changes in such
Registration Statement or the prospectus in order to make the statements made or
incorporated therein not misleading (which notice shall be accompanied by an
instruction to suspend the use of the prospectus until the requisite changes
have been made);

       

      (k)         furnish
to the Stockholder, without charge, at least one copy of such Registration
Statement and any post-effective amendment thereto, including financial
statements and schedules, and, if the Stockholder so requests in writing, all
exhibits (including those, if any, incorporated by reference);

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (l)         upon
the occurrence of any event contemplated by Section 3.04(j)(ii), (iii),
(iv) and (v) above, where necessary, promptly prepare a post-effective amendment
to such Registration Statement or a supplement to the related prospectus or file
any other required document so that, as thereafter delivered to the Stockholder,
the prospectus will not contain or incorporate an untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements made therein or incorporated therein not
misleading.  If the Company notifies the Stockholder in accordance
with Section 3.04(j)(v) above to suspend the use of the prospectus until
the requisite changes to the prospectus have been made, then the Stockholder
shall suspend use of such prospectus and, if asked to do so by the Company, will
use its reasonable efforts to return to the Company all copies of such
prospectus (at the Company’s expense), and the period of effectiveness of such
Registration Statement provided for above shall be extended by the number of
days from and including the date of the giving of such notice to the date the
Stockholder shall have received such amended or supplemented prospectus pursuant
to this Section 3.04(l);

       

      (m)           comply
with all applicable FINRA requirements and promptly respond to any Commission
and FINRA comments received in connection with the preparation and filing of a
Registration Statement and any related documents, and, where such comments
directly relate to the Stockholder or the Stockholder’s inclusion in the
Registration Statement, furnish the Stockholder with copies of such FINRA
comments and Company’s responses;

       

      (n)           make
reasonably available for inspection by any underwriter participating in any
disposition pursuant to such Registration Statement and any attorney, accountant
or other agent retained by such underwriter, all relevant corporate documents,
financing information and other records of the Company that the Company
customarily provides to underwriters in similar underwritten offerings by the
Company and cause the Company’s officers, directors and employees to supply the
underwriter all relevant information that the Company customarily provides to
underwriters in similar underwritten offerings by the Company in connection with
their diligence reviews; and

       

      (o)           use
reasonable best efforts to procure the cooperation of the Company’s transfer
agent in settling any offering or sale of Registrable Securities, including with
respect to the transfer of physical stock certificates into book-entry form in
accordance with any procedures reasonably requested by the Stockholder or the
underwriters.

       

      3.05.        Stockholder Information and
Undertakings.     
It shall be a condition precedent to the obligation of the Company to take any
action pursuant to this Agreement in respect of the Registrable Securities which
are to be registered at the request of the Stockholder that the Stockholder
shall furnish to the Company such information regarding the Stockholder and the
Registrable Securities held by the Stockholder as the Company shall reasonably
request and as shall be required to be provided for a selling stockholder to
effect a sale of Common Stock on a Registration Statement.

       

      Additionally, the Stockholder agrees to
(a) enter into customary agreements (including an underwriting agreement in
customary form) with the underwriter or underwriters selected for an
underwritten offering and (b) furnish the underwriters a signed opinion of the
Stockholder’s independent legal counsel addressing such matters as the
underwriters may reasonably request and as would be customary for a selling
stockholder in such a transaction.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3.06.        Expenses.  The
Company shall pay all the fees and expenses associated with the sale of
Registrable Securities by the Stockholder, including filings, printer and
accounting fees and fees and disbursements of counsel of the Company; provided that the fees and expenses
of a Stockholder’s advisors, its counsel and its representatives and all
underwriters’ discounts and commissions associated with any Sale of Common Stock
sold by a Stockholder shall be borne by such Stockholder.

       

      3.07.        Indemnification and
Contribution.  (a)  The
Company shall indemnify and hold harmless the Stockholder, the Stockholder’s
directors and officers, employees, stockholders, agents and representatives of
the Stockholder, each person who participates in the offering of such
Registrable Securities, including underwriters (as defined in the Securities
Act), and each Person, if any, who Controls the Stockholder or participating
person within the meaning of the Securities Act (collectively, the “Stockholder
Parties” and each, a “Stockholder Party”) against any losses, claims, damages or
liabilities, joint or several, to which they may become subject under the
Securities Act, the Exchange Act, other federal or state law or otherwise,
insofar as such losses, claims, damages or liabilities (or proceedings in
respect thereof) arise out of or are based upon any of the following statements,
omissions or violations (collectively, a “Violation”): (i) any untrue statement
or alleged untrue statement of any material fact contained in such registration
statement on the effective date thereof (including any preliminary or final
prospectus under the Securities Act or any amendments or supplements thereto);
(ii) the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading,
or (iii) any violation or alleged violation by the Company of the Securities
Act, the Exchange Act, any state securities law or any rule or regulation
promulgated under the Securities Act, the Exchange Act or any state securities
law, and the Company shall reimburse, as incurred, each the Stockholder Parties
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 the
Company shall not be liable to the Stockholder Parties in any such case for any
such loss, claim, damage, liability or action to the extent that it arises out
of or is based upon an untrue statement or alleged untrue statement or omission
or alleged omission made in connection with such registration statement,
preliminary prospectus, final prospectus or amendments or supplements thereto,
in reliance upon and in conformity with written information expressly furnished
for use in connection with such registration by any of the Stockholder
Parties.  Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of any the Stockholder
Parties and shall survive the transfer of such securities by the
Stockholder.

       

      (b)           The
Stockholder shall indemnify and hold harmless the Company, each of its directors
and officers, each person, if any, who controls the Company within the meaning
of the Securities Act, and each agent and any underwriter for the Company
(within the meaning of the Securities Act) against any losses, claims, damages
or liabilities, joint or several, to which the Company or any such director,
officer, controlling person, agent or underwriter may become subject, under the
Securities Act or otherwise, to the extent that such losses, claims, damages or
liabilities (or proceedings in respect thereof) arise out of or are based upon
any Violation, in each case to the extent, but only to the extent, that such
Violation was made in such registration statement, preliminary or final
prospectus, or amendments or supplements thereto, in reliance upon and in
conformity with written information expressly furnished by or on behalf of the
Stockholder  for use in connection with such registration; provided, however, that the
Stockholder’s liability under this Section 3.07(b) shall not exceed the net
proceeds from the offering received by the Stockholder.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (c)           If
the indemnification provided for in this Section 3.07 from the indemnifying
party is unavailable to an indemnified party hereunder in respect of any losses,
claims, damages, liabilities or expenses referred to therein, then the
indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, liabilities or expenses in such proportion as
is appropriate to reflect the relative fault of the indemnifying party and
indemnified parties in connection with the actions which resulted in such
losses, claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations.  The relative fault of such indemnifying
party and indemnified parties shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material
fact, has been made by, or relates to information supplied by, such indemnifying
party or indemnified parties, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such
action.  The amount paid or payable by a party as a result of the
losses, claims, damages, liabilities and expenses referred to above shall be
deemed to include any legal or other fees or expenses reasonably incurred by
such party in connection with any investigation or proceeding.  If the
allocation provided in this Section 3.07(c) is not permitted by applicable
Law, the parties shall contribute based upon the relative benefits received by
the Company from the initial sale of the Registrable Securities on the one hand
and the net proceeds received by the Stockholder from the sale of Registrable
Securities on the other.

       

      The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 3.07(c) were determined by pro rata allocation or by any
other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraph.  No
Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation.

       

      Notwithstanding
anything in this Section 3.07(c), no contribution by the Stockholder, when
combined with any amounts paid pursuant to Section 3.07(b), shall exceed the net
proceeds from the offering received by the Stockholder.

       

      (d)           Any
Person entitled to indemnification hereunder (the “Indemnified Party”)
agrees to give prompt written notice to the indemnifying party (the “Indemnifying Party”)
after the receipt by the Indemnified Party of any written notice of the
commencement of any action, suit, proceeding or investigation or threat thereof
made in writing for which the Indemnified Party intends to claim indemnification
or contribution pursuant to this Agreement; provided, that the
failure so to notify the Indemnified Party shall not relieve the Indemnifying
Party of any liability that it may have to the Indemnifying Party hereunder
unless such failure is materially prejudicial to the Indemnifying
Party.  If notice of commencement of any such action is given to the
Indemnifying Party as above provided, the Indemnifying Party shall be entitled
to participate in and, to the extent it may wish, to assume the defense of such
action at its own expense, with counsel chosen by it and reasonably satisfactory
to the Indemnified Party.  The Indemnified Party shall have the right
to employ separate counsel in any such action and participate in the defense
thereof, but the fees and expenses of such counsel shall be paid by the
Indemnified Party unless (i) the Indemnifying Party agrees to pay the same,
(ii) the Indemnifying Party fails to assume the defense of such action, or
(iii) the named parties to any such action (including any impleaded
parties) have been advised by such counsel that either (A) representation
of such Indemnified Party and the Indemnifying Party by the same counsel would
be inappropriate under applicable standards of professional conduct or
(B) there are one or more legal defenses available to it which are
substantially different from or additional to those available to the
Indemnifying Party.  No Indemnifying Party shall be liable for any
settlement entered into without its written consent, which consent shall not be
unreasonably withheld.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (e)           The
agreements contained in this Section 3.07 shall survive the transfer of the
Registered Securities by the Stockholder and sale of all the Registrable
Securities pursuant to any registration statement and shall remain in full force
and effect, regardless of any investigation made by or on behalf of the
Stockholder or such director, officer or participating or controlling
Person.

       

      3.08.        Certain Additional
Limitations on Registration Rights.  Notwithstanding
the other provisions of this Agreement, the Company shall not be obligated to
register the Registrable Securities of the Stockholder (a) if the
Stockholder shall fail to furnish to the Company information regarding the
Stockholder required pursuant to the Securities Act or Section 3.05 of this
Agreement in respect of the distribution of such Registrable Securities or
(b) in connection with a Piggyback Registration, such Registrable
Securities are not included in such underwritten offering on the same terms and
conditions as shall be applicable to the other Common Stock being sold through
underwriters in the registration.

       

      The
Stockholder agrees to enter into a customary ninety (90) day lock-up agreement
with the underwriters for an offering, under any Demand Registration Statement,
or any registration statement in connection with a Piggyback Registration in
which the Stockholder was entitled to participate; provided that all executive
officers who typically provide lock-up in an offering of Common Stock and
directors of the Company enter into similar agreements in connection with such
offering; provided
further that if the underwriters in an offering of Common Stock in which
the Stockholder provided a lock-up grants any waivers to any executive officer
or director of the Company in connection with such agreements, then the
Stockholder shall be entitled to a waiver on similar terms and on a similar
scope.

       

      3.09.        No Inconsistent
Agreements.  As
of the date of this Agreement, the Company has not granted registration rights
with respect to shares of its Common Stock to any holders of Common Stock,
except as may have been granted pursuant to employee benefits arrangements of
the Company.  The Company will not hereafter enter into any agreement
with respect to its securities, which is inconsistent in any material respects
with the rights granted to the Stockholder in this Agreement and the Company
will not grant a holder of Common Stock “piggyback” rights with respect to such
holders Common Stock that give such holder priority over the Stockholder in
connection with a registration of Common Stock.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3.10.        Selection of
Underwriters to
Serve as Book-Running Manager.  In
the event the Stockholder has made a request for a Demand Registration, the
underwriter(s) serving as book-running manager (s) and the other underwriter(s)
shall be selected by the Company and, if the Company is not also offering to
issue and sell shares of Common Stock pursuant to such underwritten offering,
shall be approved by the Stockholder, which approval shall not be unreasonably
withheld or delayed.  Any or all of the conditions precedent to the
obligations of such underwriters under the underwriting agreement shall be
conditions precedent to the obligations of the Stockholder (other than
conditions the fulfillment of which is within the power of the
Stockholder).  The Stockholder shall not be required to make any
representations or warranties to or agreements with the Company or the
underwriters other than representations, warranties or agreements regarding the
Stockholder, the Registrable Securities of the Stockholder and the Stockholder’s
intended method of distribution and any other representations required by
Law.

       

      3.11.        Reports.  The
Company agrees to provide such information as may be necessary under the Unites
States securities laws to enable the Stockholder to Sell the Stockholder Stock
on an unrestricted basis in compliance with Rule 144 under the Securities
Act.

       

      ARTICLE
IV

      ADDITIONAL
RIGHTS 

       

      4.01.        No Participation in a Group
or Solicitation of Proxies.  The
Stockholder agrees that, prior to the later of the two year anniversary of the
date hereof or such time the Stockholder no longer Beneficially Own 4% or more
of the then-outstanding shares of Common Stock (the “Standstill Period”),
it will not, and it will cause its Affiliates not to, without the prior written
consent of the Company or its Board, directly or indirectly:

       

      (a)           acquire,
offer to acquire or agree to acquire, directly or indirectly, by purchase or
otherwise, any equity or equity-linked securities of the Company or debt
securities convertible or exchangeable into equity securities of the Company or
direct or indirect rights to acquire any equity or equity-linked securities or
any material amount of assets of the Company (other than pursuant to ordinary
course commercial transactions) or any division thereof;

       

      (b)           seek
or propose to influence or control the management or policies of the Board or
the Company or any Subsidiary thereof including through bylaw amendments or
seeking to elect a representative to the Board or seek removal of any members of
the Board, or make or in any way participate, directly or indirectly, in any
“solicitation” of “proxies” (as such terms are used in the rules of the
Commission) to vote any voting securities of the Company, or seek to advise or
influence any person or entity with respect to the voting of any voting
securities of the Company;

       

      (c)           make
any public announcement with respect to, or publicly submit a proposal for or
offer of (with or without conditions), any merger, recapitalization,
reorganization, business combination or other extraordinary transaction
involving the Company or any Subsidiary thereof or any of their securities or
material assets;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (d)           enter
into any discussions, negotiations, arrangements or understandings with any
Third Party with respect to any of the foregoing, or otherwise form, join or in
any way engage in discussions relating to the formation of, or participate in, a
Group, with the purposes of engaging in any of the foregoing; or

       

      (e)           publicly
request that the Company or any of its Representatives, directly or indirectly,
to amend or waive any provision of this paragraph (including this
sentence);

       

      provided however, that none of
the foregoing (x) shall prevent the Stockholder from Selling or voting its
Common Stock with respect to any matter as to which a stockholder vote is
solicited or (y) shall prohibit the Stockholder from soliciting, offering,
seeking to effect and negotiating with any Person with respect to transfers of
Common Stock permitted by Section 2.01.

       

      4.02.        Limitation on the
Prohibition on Ownership of Common
Stock.  Notwithstanding
Section 4.01, the following shall not be deemed to be a breach by the
Stockholder or its Affiliates on the prohibition from purchasing or otherwise
acquiring, directly or indirectly, Beneficial Ownership of Common Stock: (a) by
way of stock dividends or other distributions by the Company to holders of
Common Stock generally in accordance with their pro rata security ownership, and
(b) by Stockholder’s or any of its Affiliate’s pension trust or similar employee
benefit plan investment vehicle, provided that any
securities acquired shall be held for investment purposes only and such benefit
plans shall comply with the ERISA requirements as to the independence of
investment decisions.   

       

      ARTICLE
V

      MISCELLANEOUS

       

      5.01.        Termination.  (a)  This
Agreement shall terminate only:

       

      (i)           by
virtue of a written agreement to that effect, signed by all parties hereto or
all parties then possessing any rights hereunder; or

       

      (ii)           upon
the expiration of (A) all rights created hereunder and (B) all statutes of
limitations applicable to the enforcement of claims hereunder;

       

      provided that no
termination of this Agreement pursuant to paragraph (i) or (ii) above shall
affect the right of any party to recover damages or collect indemnification for
any breach of the representations, warranties or covenants herein that occurred
prior to such termination.

       

      (b)           The
restrictions contained in Section 2.01 and Section 4.01 of this Agreement
shall terminate upon the final closing with respect to, whether accomplished
through one or a series of related transactions, (i) a merger,
consolidation or other business combination following which the outstanding
Common Stock immediately prior to such transaction will represent less than 50%
of the outstanding Common Stock of the Company or other entity surviving such
transaction or any entity Controlling the Company immediately after the
completion of the transaction, (ii) a Sale of all or substantially all of
the assets of the Company and its subsidiaries, or (iii) a transaction as a
result of which any Person or Group acquires at least 50% of the outstanding
Common Stock of the Company or pursuant to which such Person or Group has the
right to elect the majority of the members of the Board.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5.02.        Notices.  All
notices, requests, claims, demands and other communications hereunder shall be
in writing and shall be given (and shall be deemed to have been duly given upon
receipt) by delivery in person, by courier service, by fax or by registered or
certified mail (postage prepaid, return receipt requested) to the respective
parties at the following addresses (or at such other address for a party as
shall be specified by notice given in accordance with this
Section 5.02):

       

      (a)           if
to the Company:

       

      BE
Aerospace, Inc.

      1400
Corporate Center Way

      Wellington,
Florida 33414

      Attention:
Thomas P. McCaffrey

       

      with a
copy to:

      

      Shearman
& Sterling LLP

      599
Lexington Avenue

      New York,
New York 10020

      Attention:
Creighton Condon

       

      (b)           if
to the Stockholder:

       

      Honeywell
International Inc.

      101
Columbia Road

      P.O. Box
4000

      Morristown,
New Jersey 07962-2487

      Attention:
General Counsel and Senior Vice President

      Telecopy
No.: (973) 455-4217

      

      with a
copy to:

      

      David
Robbins, Esq.

      Bingham
McCutchen LLP

      355 S.
Grand Avenue, Suite 4400

      Los
Angeles, California 90071

      Telecopy
No.: (213) 680-6499

      

      5.03.        Expenses.  Except
as otherwise specified in this Agreement, all costs and expenses, including,
without limitation, fees and disbursements of counsel, financial advisors and
accountants, incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring such costs or
expenses.

       

      5.04.        Headings.  When
a reference is made in this Agreement to Articles or Sections, such reference is
to an Article or a Section of this Agreement, unless otherwise
indicated.  When a reference is made in this Agreement to a party or
parties, such reference is to parties to this Agreement, unless otherwise
indicated.  The table of contents and headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.  Whenever the words
“include,” “includes” or “including” are used in this Agreement, they shall be
understood to be followed by the words “without limitation.”  The
definitions in this Agreement are applicable to the singular as well as the
plural forms of such terms.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5.05.        Severability.  If
any term or other provision of this Agreement is invalid, illegal or incapable
of being enforced by any rule of Law or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to any
party.  Upon a determination that any term or other provision is
invalid, illegal or incapable of being enforced, the Company and the Stockholder
shall negotiate in good faith to modify this Agreement so as to affect their
original intent as closely as possible in an acceptable manner to the end that
the transactions contemplated hereby are fulfilled to the maximum extent
possible.

       

      5.06.        Entire Agreement; No
Third-Party Beneficiaries.  This
Agreement constitutes the entire agreement and supersedes any and all other
prior agreements and undertakings, both written and oral, among the parties
hereto, or any of them, with respect to the subject matter hereof and does not,
and is not intended to, confer upon any Person any rights or remedies
hereunder.

       

      5.07.        Amendment;
Waiver.  This
Agreement may be amended only in a writing signed by all parties
hereto.  Any waiver of rights hereunder must be set forth in
writing.  A waiver of any breach or failure to enforce any of the
terms or conditions of this Agreement shall not in any way affect, limit or
waive either party’s rights at any time to enforce strict compliance thereafter
with every term or condition of this Agreement.

       

      5.08.        Binding Effect;
Assignment.  This
Agreement shall inure to the benefit of and be binding upon the parties hereto
and their respective legal representatives and
successors.  Notwithstanding the foregoing, this Agreement shall not
be assigned by any party hereto by operation of Law or otherwise without the
express written consent of the other party.

       

      5.09.        Specific
Performance. The parties agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with their specific terms or were
otherwise breached.  It is accordingly agreed that the parties shall
be entitled to an injunction or injunctions to prevent breaches of this
Agreement and to enforce specifically the terms and provisions of this
Agreement, this being in addition to any other remedy to which they are entitled
at law or in equity.  Nothing contained herein shall prevent a party
from seeking damages in the event that specific performance is not
available.

       

      5.10.        Governing
Law.  Any
and all claims, disputes or controversies in any way arising out of or relating
to this Agreement, and the existence or validity of any and all defenses to such
claims, disputes or controversies, shall be governed and resolved exclusively by
the laws of the State of New York, notwithstanding the existence of any conflict
of laws principles that otherwise would dictate the application of any other
state’s law.  Each party irrevocably and unconditionally waives any
right to object to the application of New York law or argue against its
applicability to any of the matters referenced in the immediately preceding
sentence.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5.11.        Dispute Resolution;
Mediation; Jurisdiction.

       

      (a)           Subject
to Section 5.09, in the event of any dispute, controversy or claim in any way
arising out of or relating to this Agreement (a “Dispute”), upon the
written notice of either party hereto, the parties hereto shall attempt to
negotiate a resolution of the Dispute.  If the parties hereto are
unable for any reason to resolve a Dispute within 30 days after the receipt of
such notice, the Dispute shall be submitted to mediation in accordance with
Section 5.11(b).

       

      (b)           Subject
to Section 5.09, any Dispute not resolved pursuant to Section 5.11(a) shall, at
the request of either party hereto (a “Mediation Request”),
be submitted to non-binding mediation in accordance with the then current CPR
Mediation Procedure (the “Procedure”), except
as modified herein.  The mediation shall be held in New York, New
York.  The parties shall have 20 days from receipt by a party of a
Mediation Request to agree on a mediator.  If no mediator has been
agreed upon by the parties within 20 days of receipt by a party (or parties) of
a Mediation Request, then any party may request (on written notice to the other
parties), that the CPR appoint a mediator in accordance with the
Procedure.  All mediation pursuant to this clause shall be
confidential and shall be treated as compromise and settlement negotiations, and
no oral or documentary representations made by the parties during such mediation
shall be admissible for any purpose in any subsequent proceedings.  No
party hereto shall disclose or permit the disclosure of any information about
the evidence adduced or the documents produced by the other parties in the
mediation proceedings or about the existence, contents or results of the
mediation without the prior written consent of such other parties except in the
course of a judicial or regulatory proceeding or as may be required by Law or
requested by a governmental authority or securities exchange.  Before
making any disclosure permitted by the preceding sentence, the party intending
to make such disclosure shall give the other parties reasonable written notice
of the intended disclosure and afford the other parties a reasonable opportunity
to protect its interests.  If the Dispute has not been resolved within
60 days of the appointment of a mediator, or within 90 days of receipt by a
party of a Mediation Request (whichever occurs sooner), or within such longer
period as the parties may agree to in writing, then any party may file an action
on the Dispute in any court having jurisdiction in accordance with Section
5.11(c).

       

      (c)           Each
of the parties hereby irrevocably and unconditionally consents to submit to the
exclusive jurisdiction of the courts of the State of New York sitting in New
York County and the courts of the United States of America located in New York
County, New York for any litigation arising out of or relating to this Agreement
or the transactions contemplated hereby (and agrees not to commence any
litigation relating hereto except in such courts), and further agrees that
service of any process, summons, notice or document by U.S. registered mail to
its respective address set forth in Section 5.02, shall be effective service of
process for any litigation brought against it in any such court.  Each
of the parties hereby irrevocably and unconditionally waives any objection to
the laying of venue of any litigation arising out of this Agreement or the
transactions contemplated hereby in the courts of the State of New York sitting
in New York County or the courts of the United States of America located in New
York County, New York and hereby further irrevocably and unconditionally waives
and agrees not to plead or claim in any such court that any such litigation
brought in any such court has been brought in an inconvenient
forum.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN CONNECTION WITH
ANY LITIGATION ARISING OUT OF OR RELATING IN ANY WAY TO TRANSACTION
MATTERS.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5.12.        Public
Announcements.  Unless
otherwise required by applicable law, listing requirements or as may be
customary in connection with the transactions contemplated by this Agreement,
the Stockholder shall not make, or cause to be made, any press release or public
announcement in respect of this Agreement or the transactions contemplated by
this Agreement without the prior consent of the Company, which shall not be
unreasonably withheld.

       

      5.13.        Construction.  The
headings of Articles and Sections in this Agreement are provided for convenience
only and will not affect its construction or interpretation.  The
language used in this Agreement is the language chosen by the parties to express
their mutual intent, and no rule of strict construction shall be applied against
any party.

       

      5.14.        Counterparts.  This
Agreement may be executed simultaneously in one or more
counterparts (including by facsimile or electronic .pdf submission), and by
the different parties in separate counterparts, each of which when executed
shall be deemed to be an original, but all of which shall constitute one and the
same agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the date first
set forth above.

       

      
        
          	 	BE
      AEROSPACE, INC.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ THOMAS
      P. MCCAFFREY	 
	 	 	Name:
      Thomas P. McCaffrey	 
	 	 	Title:   Senior
      Vice President and	 
	 	 	
                  Chief
      Finacial Officer

                	 

        

      

      

       

      
      

      

      
        
          	 	SELLERS:	 
	 	 	 
	 	HONEYWELL
      INTERNATIONAL INC.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ ANNE
      T. MADDEN	 
	 	 	Name:  Anne
      T. Madden	 
	 	 	

                  Title:    Vice
      President,

                	 
	 	 	            
      Corporate Development and	 
	 	 	            
      Global Head of M & A	 

        

      

       

       

      
        
          	 	HONEYWELL
      UK LIMITED	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ ANNE
      T. MADDEN	 
	 	 	Name:  Anne
      T. Madden	 
	 	 	Title:   Authorized
      Signatory	 

        

      

       

       

      
        
          	 	HONEYWELL
      HOLDING FRANCE SAS	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ ANNE
      T. MADDEN	 
	 	 	Name:  Anne
      T. Madden	 
	 	 	Title:   Authorized
      Signatory	 
	 	 	 	 

        

      

      
      

       

      
        
          	 	

                  HONEYWELL
      DEUTSCHLAND GMBH

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ ANNE
      T. MADDEN	 
	 	 	Name:  Anne
      T. Madden	 
	 	 	Title:   Authorized
      Signatory	 
	 	 	 	 

        

      

       

      
         

         

        [Signature
Page to Stockholders Agreement]

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