Document:

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                                                                   EXHIBIT 10.16

                       ADMINISTRATIVE SERVICES AGREEMENT

     THIS ADMINISTRATIVE SERVICES AGREEMENT ("Agreement") is entered into
effective as of October 1, 1999, between X10.com, Inc. a Delaware corporation
("X10.com"), and Orca Monitoring Services, LLC, a Washington limited liability
company ("Orca").

                                   RECITALS

     A.   X10.com is engaged in the business of designing, developing, marketing
and selling home automation, home security and home entertainment products;

     B.   Orca is engaged in the business of professional security monitoring
and alarm system product support, and operates a Customer Support Center with
employees providing 24-hour customer service by telephone; and

     C.   X10.com desires that Orca provide X10.com with certain administrative
and customer service support, and Orca is willing to provide those services to
X10.com under the terms and conditions set forth below.

     In consideration of the mutual covenants and conditions contained herein,
the parties agree as follows:

                                   AGREEMENT

     1.   Term.  The term of this Agreement shall commence on October 1, 1999
(the "Effective Date"), and will be for a term of one (1) year, to be
automatically renewed for subsequent one-year terms unless terminated by mutual
agreement of the parties or as otherwise provided herein. In the event of a
material breach by either party in the performance of its obligations hereunder,
the non-breaching party may terminate this Agreement by giving thirty (30) days
written notice to the other party.

     2.   Description of Corporate Services.  From and after the Effective Date,
Orca agrees to provide X10.com with administrative and customer service support
as may be requested by X10.com (the "Services"), including the following:

               a.   General telephone reception services during regular office
          hours;

               b.   Twenty-four hour overflow telephone customer service and
          technical support in accordance with information, manuals and training
          provided by X10.com; and

               c.   General office administration and support, including
          utilities, telephone, conference rooms, janitorial service and other
          office services, equipment and facilities.

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     3.   Service Fees.  Orca shall be entitled to fees for the performance of
the Services rendered under this Agreement in amounts determined in accordance
with Schedule A attached hereto. Such fees shall be payable within thirty (30)
days after receipt of invoice from Orca for Services rendered during the
preceding month.

     4.   Training.  X10.com shall provide at its expense such information,
manuals and employee training as may be necessary for employees of Orca to
initially perform the Services. Orca shall thereafter be responsible, at its
expense, for training new employees to perform the Services.

     5.   Independent Contractor.  Orca is an independent contractor. This
Agreement shall not create the relationship of an employer and employee, a
partnership, or a joint venture. Orca shall be responsible for all wages,
benefits, income taxes, unemployment taxes, social security, workers'
compensation insurance and other taxes, withholdings, expenses and deductions
arising out of the services rendered by Orca or its employees under this
Agreement.

     6.   Assignment.  This Agreement shall not be assigned by either party and
any attempt to assign shall be void and without any effect, except upon the
express mutual consent of the parties.

     7.   Notices.  All notices or other communications hereunder shall be in
writing and shall be made by hand delivery or registered or certified mail,
postage prepaid, return receipt requested, addressed as follows:

          X10.com:     X10.com
                       15200 52nd Avenue South
                       Seattle, WA 98188-2335
                       Attn: CFO

          Orca:        Orca Monitoring Services, LLC
                       15200 52nd Avenue South
                       Seattle, WA 98188-2335
                       Attn: President

or at such other address as shall be furnished by any of the parties by like
notice, and such notice or communication shall be deemed to have been given or
made as of the date so delivered, if delivered personally, and three (3)
calendar days after so mailed, if sent by registered or certified mail.

     8.   Entire Agreement.  This Agreement constitutes the entire agreement
between the parties, and all prior arrangements and negotiations between the
parties are hereby deemed to be merged therein. This Agreement may be modified
or amended only by mutual written consent of the parties.

     9.   Confidentiality.  Orca understands and agrees that all financial and
other information of X10.com is proprietary and confidential information. Orca
agrees to protect and preserve as confidential all financial and other
information of X10.com. Orca will not disclose such

                                       2
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information to any person or entity (including affiliates of Orca) except to
Orca's employees who have a need to know such information for use in furtherance
of this Agreement and who agree, in writing, to hold all such information in
confidence. Orca will use such information only to perform its obligations under
this Agreement, and will not use any of such information for any other purpose
and will not allow any other person or entity (including affiliates of Orca) to
use any of X10.com's proprietary or confidential information in any other way,
without X10.com's prior written consent. Orca further agrees that all materials
which result from services performed hereunder shall be and remain the property
of X10.com and, upon termination on this Agreement or earlier request, shall be
delivered to X10.com

     10.  Governing Law.  This Agreement shall be governed by and construed in
accordance with the Laws of the State of Washington without reference to
conflict of laws.

     11.  Severability.  If any portion of this Agreement shall be held invalid
or inoperative, then, so far as is reasonable and possible, the remainder of
this Agreement shall be considered valid and operative, and effect shall be
given to the intent manifested by the portion held invalid or inoperative.

     12.  Attorneys' Fees.  The prevailing party in any action between the
parties which is based on this Agreement or any document related hereto shall
have its reasonable attorneys' fees and other costs incurred in such action or
proceeding including any incurred for pre-suit, trial, arbitration,
post-judgment and appeal, paid by the other party.

     Executed as of the date first above written.

                                        X10.COM, INC.,
                                        a Delaware corporation,

                                        By  /s/ Wade Pfeiffer CFO
                                          -------------------------------------

                                        ORCA MONITORING SERVICES, LLC,
                                        a Washington limited liability company,

                                        By  /s/ Alex Peder
                                          --------------------------------------

                                       3
<PAGE>

                                  Schedule A
                                  ----------

                          Calculation of Service Fees

A.   Telephone service:  Fee based on actual charges for dedicated phone lines
     and a percentage of combined lines based on head count. Updated quarterly.

B.   Utilities and janitorial service:  Allocated based on percentage of floor
     space. Updated quarterly.

C.   General office administration services:  Fees based on combination of head
     count and percentage of floor space. Updated quarterly.

D.   Overflow Call Coverage:  Fees based on percentage of calls answered as
     follows:

<TABLE>
<S>                                     <C>
CSR average rate of pay
  answer overflow sales calls for X10.com
      From HR manager: CSR hrly rate    Average hourly rate of customer service reps (updated quarterly)
      Burden and OH                     25%     15% benefit rate; 10% OH. CSR would be on site regardless of overflow calls
      Commission per hour*              Average commission per hour
                                        -------------------------------------------------------------------------------------------
          average rate of pay           Total rate of pay (hourly)
                                        ===========================================================================================

      *Commission per hour
          average $                     Average dollars rec'd as commissions (updated quarterly based on actual)
          # of calls                    Actual number of calls answered by CSR's
          Duration (min)                Average duration of each call (updated quarterly based on actual)
          time on calls (hrs)           Calculation
          $/hr                          Total commission per hour

Tech Services average rate of pay
  answer tech questions for active home - assigned 800 number
      From HR manager: CSR hrly rate    Average hourly rate of customer service reps (updated quarterly)
      Burden and OH                     25%     15% benefit rate; 10% OH. CSR would be on site regardless of overflow calls
                                        -------------------------------------------------------------------------------------------
         average rate of pay            Total rate of pay (hourly)
                                        ===========================================================================================
</TABLE>

                                       4<PAGE>

                                                                   EXHIBIT 10.17

                                    FORM OF
                          STOCK SUBSCRIPTION AGREEMENT

     I, ____________, hereby subscribe for ____________ shares of common stock
of X10.com, Inc., a Washington corporation, (the "Company") and represent that I
intend to acquire these securities for my own account with no present intention
of selling or otherwise distributing them to the public.  In consideration for
the issuance of such shares to me, I agree to pay to the Company ____________
Dollars (US$____________) under the terms and conditions of that certain
promissory note dated October 1, 1999, reflecting the undersigned as maker and
the Company as holder, a copy of which is attached hereto as Exhibit A.
                                                             ---------

     In connection with my acquisition of these securities, I understand that
they will not be registered under the Securities Act of 1933 (the "Act"), and
will not be so registered because the transaction in which I am acquiring them
is exempt from registration pursuant to Section 4(2) of the Act as not involving
a public offering.

     I further understand that in accordance with the policies of the Securities
and Exchange Commission, the Company will place the following legend upon the
certificates representing my shares:

     These shares have not been registered under the Securities Act of 1933, as
     amended, and are acquired by the registered holder pursuant to
     representation that the holder is acquiring these shares for the holder's
     own account, for investment.  These shares may not be pledged,
     hypothecated, sold, transferred or offered for sale in the absence of an
     effective registration statement as to the shares under the Securities Act
     of 1933, as amended, or in the absence of an exemption from such
     registration requirement.

     I have carefully read the foregoing and understand that it relates to
restrictions upon my ability to sell or transfer the securities I am purchasing
hereunder.

     IN WITNESS WHEREOF, the undersigned has executed this Stock Subscription
Agreement as of this   1   day of     October    , 1999.
                     -----        ---------------
<TABLE>
<S>                                                  <C>
--------------------------------------------------   -----------------------------------------------------
--------------------------------------------------   -----------------------------------------------------
                                                     (spouse)

--------------------------------------------------   -----------------------------------------------------
          (Social Security Number)                                 (Social Security Number)

------------------------------------------(Address)  --------------------------------------------(Address)
------------------------------------------           --------------------------------------------
</TABLE>
Please indicate the manner in which the Shares are to be held:

-----  Community Property (If Shares are to be held in both spouses' names, both
       spouses must sign)

-----  Separate Property

<TABLE>
<S>                                            <C>
SUBSCRIPTION ACCEPTED BY:                      Date:                ______________________
-------------------------
X10.com, Inc.                                  Subscriber:          ___________

                                               No. Shares:          ___________

By /s/ Alex Peder
  ----------------------                       Subscription Price:  $0.001 per share
   Alex Peder, President
</TABLE>
<PAGE>

                                PROMISSORY NOTE

USD $__________                                                  October 1, 1999

     The undersigned, ____________ ("Maker"), promises to pay to X10.com, Inc.,
a Delaware corporation, or order ("Payee"), the principal sum of ______________
Dollars ($________), in lawful money of the United States of America, together
with interest thereon from the date hereof, all as hereinafter provided and upon
the following terms and conditions.

     The principal and interest under this Note shall be paid as follows:

     1. Interest shall accrue on the diminishing principal balance of this Note
from the date hereof at a rate equal to seven percent (7%) per annum. Monthly
payments of principal and interest in the amount of $________ each shall be due
commencing on November 1, 1999 and continuing on the Twelfth Day of each
calendar month until the maturity date of this Note.

     2.   The entire balance of principal and all accrued interest due under
this Note shall be paid in full no later than one year from the date of this
Note.

     3.   Maker shall have the right at any time during the term of this Note to
pay the entire balance of principal and interest due hereunder without penalty.

     4.   All payments pursuant to this Note shall be made to Payee at 15200
52nd Ave. Sth., Seattle, WA, 98188, or such other address as Payee may hereafter
designate from time to time.

     Maker shall be in default in the payment of this Note if any payment due
hereunder is not paid within ten (10) days after written notice from Payee that
such payment is past due. Upon default in the payment of any principal or
interest due hereunder, or default in the performance of any terms or conditions
of this Note or the Deed of Trust securing this Note, then the entire principal
balance and accrued interest hereunder shall at once become due and payable
without notice, time being the essence of this Note.

     In the event Payee retains an attorney to collect any amount payable under
this Note, or to enforce any of the provisions hereof, Maker agrees to pay all
costs of collection or enforcement, including court costs and attorney's fees,
whether or not a lawsuit is commenced. At the option of Maker, the venue of any
action pursuant to this Note may be in the Superior Court for King County,
Washington.

     Maker hereby waives presentment and demand for payment, notice of dishonor,
protest and notice of protest.
<PAGE>

     Any notice to Maker or Payee shall be delivered or mailed. If mailed, a
notice shall be sent by certified or registered mail, postage prepaid, return
receipt requested as follows, or to such other address as either party may
hereafter designate in writing to the other party:

          To Maker:        ___________________
                           ___________________
                           ___________________

          To Payee:        X10.com, Inc.
                           15200 52nd Avenue South
                           Seattle, Washington 98188-2335
                           Attention: Chief Financial Officer

A notice shall be deemed given on the date of delivery or the date marked on the
return receipt (if mailed).

     This Note shall inure to the benefit of Payee and any successor of Payee,
but shall not be assigned by Payee without Maker's consent. This Note shall be
binding upon Maker and Maker's successors, assignees, personal representatives
and heirs.

     This Note shall be governed by and construed under the laws of the state of
Washington.

     ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, TO EXTEND CREDIT, OR TO
FORBEAR FORM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON
LAW.

                                       MAKER:

                                       _______________________

                                       By:
                                          ______________________

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