Document:

<PAGE>

                                                                   EXHIBIT 10.12

                             AMENDED AND RESTATED
                           PRODUCT SUPPLY AGREEMENT

     This Amended and Restated Product Supply Agreement (this "Agreement") is
effective as of October 1, 1999, between X10 Ltd., a Bermuda corporation
("Supplier"), and X10 Wireless Technology, Inc., a Delaware corporation
("Purchaser").

                                   RECITALS

     A.   Supplier is in the business of manufacturing and selling home and
small office networking products;

     B.   Purchaser is in the business of designing, developing, marketing,
selling and distributing broadband wireless- and powerline-based home and small
office networking products;

     C.   Supplier and Purchaser have previously entered into that certain
Product Supply Agreement (the "Original Agreement") dated and effective as of
October 1, 1999, pursuant to which Purchaser provided purchase orders to
Supplier for broadband wireless- and powerline-based home and small office
networking products to be manufactured by Supplier and sold to Purchaser for
resale to customers;

     D.   The Original Agreement did not adequately set forth the entire
understanding between the parties with respect to the manufacture and delivery
of products under the Original Agreement and with respect to certain other terms
incidental thereto; and

     E.   The parties now wish to amend and restate the Original Agreement in
order to clarify and memorialize the correct understanding of the parties with
respect to the manufacture and delivery of the products under the Original
Agreement and to further describe the obligations and existing practices of the
parties in connection therewith;

                                   AGREEMENT

     Now, therefore, in consideration of the foregoing, the mutual promises
contained herein and for other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties agree as follows:

     1.   Products.  Supplier agrees to manufacture, at the direction of
Purchaser, all wireless-, telephone-, infrared- and powerline-based home and
small office networking products currently manufactured by Supplier, together
with any and all future additions, modifications, changes, improvements and
replacements to such products and any new products developed by Supplier or
Purchaser (the "Products").  The Products, as they presently exist, are listed
on Exhibit A attached hereto.

     2.   Product Delivery Requests.  Purchaser shall provide Supplier with
product delivery requests specifying each Product to be ordered, the quantity
requested and the required
<PAGE>

date of receipt at Purchaser's designated warehouse(s) (each, a "Product
Delivery Request"). Upon receipt of each Product Delivery Request, Supplier
shall have ten (10) days to notify Purchaser of its acceptance or rejection of
such Product Delivery Request. The Product Delivery Request shall be deemed
accepted by Supplier if Supplier does not notify Purchaser of its rejection
within such ten (10) day period. Notwithstanding the foregoing, Supplier may
only reject a Product Delivery Request if it is unable to obtain the components
necessary to manufacture the Products subject to the Product Delivery Request in
a timely manner after using its best efforts to do so. At the time of
acceptance, Supplier shall notify Purchaser whether it will meet the delivery
schedule set forth in the Product Delivery Request using sea freight. If it is
unable to meet the delivery schedule using sea freight, then Purchaser may by
notice to Supplier elect either to cancel the Product Delivery Request or
proceed with the Product Delivery Request on the condition that Purchaser shall
be responsible for all additional costs of shipment by air freight. If Supplier
accepts the Product Delivery Request and cannot subsequently meet the agreed
delivery timetable using sea freight, any additional costs of shipment by air
freight shall be borne by Supplier.

     3.   Purchase Orders.  Supplier shall sell the Products to Purchaser in
accordance with all of the terms, conditions and specifications contained in
orders received by Supplier from Purchaser from time to time, if such terms,
conditions and specifications are accepted by Supplier, which acceptance shall
not be unreasonably withheld.  Each order from Purchaser will be submitted by
written or electronic purchase order specifying the quantity of each Product
being ordered (each, a "Purchase Order").  Each Purchase Order is subject to and
limited by the terms and conditions set forth in Purchaser's standard purchase
order, a copy of which is attached hereto as Exhibit B, as such purchase order
may be amended from time to time by Purchaser (the "Standard Purchase Order")
with the consent of Supplier, which consent shall not be unreasonably withheld.
If any Purchase Order is delivered to Supplier by Purchaser which does not
contain the terms and conditions set forth in the Standard Purchase Order, or
which contains terms and conditions that conflict with those set forth in the
Standard Purchase Order, such Purchase Order shall be deemed to contain the
terms and conditions set forth in the Standard Purchase Order. Purchaser shall
not be required to order or purchase any specific quantity of any Product.
PURCHASER HEREBY OBJECTS TO ANY TERMS IN ANY PURCHASE ORDER OR ACCEPTANCE FORMS
OR ANY OTHER DOCUMENTS TRANSMITTED ON BEHALF OF SUPPLIER THAT CONFLICT WITH OR
ARE NOT CONTAINED IN THE TERMS OF THE STANDARD PURCHASE ORDER, UNLESS THE
WRITTEN CONSENT OF PURCHASER IS FIRST OBTAINED.

     4.   Most Favored Purchaser.  As between Product Delivery Requests and
Purchase Orders placed by Purchaser and those placed by Supplier's other
customers, Purchaser's Product Delivery Requests and Purchase Orders shall take
priority over those of Supplier's other customers, to the extent such priority
is necessary in order for Supplier to accept and meet the terms set forth in
such documents including, without limitation, each delivery schedule.

     5.   Pricing and Payment Terms; Audit.

          a.   The prices for existing Products shall be as set forth in each
Purchase Order, and shall be the actual cost to produce the Products as mutually
agreed upon by Purchaser

                                       2.
<PAGE>

and Supplier in a separate written confirmation on at least an annual basis. The
prices for new Products shall be determined by agreement of the parties prior to
the submission of any Purchase Order for such Products. For purposes of this
Agreement, "costs" of production consist of:

          (i)    the actual costs paid by Supplier to purchase raw materials
                 used in the Products;
          (ii)   factory overhead, including labor costs;
          (iii)  incoming freight for raw materials; and
          (iv)   consumables, including, without limitation, tools, solder and
                 other items incident to the manufacturing of the Products.

Notwithstanding the foregoing, Supplier shall not, in any 12-month period,
increase the price at which it sells the Products to Purchaser in excess of the
annual Consumer Price Index rate in the United States during such 12-month
period.

          b.   Payment shall be due net 120 days from delivery by Supplier of
the Products subject to each Product Delivery Request to the F.O.B. shipping
point. Purchaser shall be responsible for all sales, use, excise and/or transfer
taxes and other charges payable in connection with the sale of the Products to
Purchaser.

          c.   Within ninety (90) days after the end of each calendar year,
Supplier shall provide Purchaser an annual audited statement prepared by an
internationally-recognized auditor, agreeable to both parties, that documents
the aggregate costs of all Products sold to Purchaser during the entire year
ended December 31.  Purchaser shall bear the costs of such audit.  If these
costs are more than 2% lower than the actual costs invoiced to Purchaser,
Supplier shall refund the difference to Purchaser within thirty (30) days of
providing such audited statement.  If these costs are more than 2% greater than
the actual costs invoiced to Purchaser, Purchaser shall pay the difference to
Supplier.

     6.   Product Delivery.  Upon receipt of a Product Delivery Request, and in
no event later than the delivery date set forth therein, Supplier shall deliver
manufactured Products to the F.O.B. shipping point for delivery to fulfillment
locations designated by Purchaser for warehousing and holding on consignment at
such fulfillment locations pending sale to Purchaser and sale and delivery
directly to Purchaser's customers. Purchaser shall be responsible for
identifying the applicable laws and regulations associated with importing the
Products into the United States (or any other country into which the Products
are imported) and communicating such requirements to Supplier, and Supplier
shall be responsible to complying with such laws and regulations as are
communicated by Purchaser. Except as provided in this Agreement, Purchaser shall
also be responsible for payment of all customs duties and freight costs for
shipment of the Products from Supplier to Purchaser's designated fulfillment
locations. In the event this Agreement is terminated for any reason, Supplier
shall reimburse Purchaser, within thirty (30) days after the effective date of
the termination, for any customs duties and/or freight costs incurred by
Purchaser in connection with Products for which Purchaser did not submit a
Purchaser Order prior to the effective date of the termination. Title and risk
of loss with respect to the Products shall remain with Supplier until
transferred pursuant to Section 7 of this Agreement.

                                       3.
<PAGE>

     7.   Passage of Title; Protection of Purchaser's Interest.  Prior to July
1, 2000, title to and risk of loss of Products subject to a Product Delivery
Request shall pass from Supplier to Purchaser upon Supplier's receipt of a
Purchase Order for such Products from Purchaser. On and after July 1, 2000,
title to and risk of loss of Products subject to a Product Delivery Request
shall pass from Supplier to Purchaser upon the earlier of (i) Supplier's receipt
of a Purchase Order for such Products from Purchaser, or (ii) payment by
Purchaser of the full purchase price for such Products. Purchaser shall be
entitled to file any financing statements and other documents necessary to
protect Purchaser's interest in any Products subject to outstanding Purchase
Orders, and Supplier agrees to cooperate in any manner necessary to effectuate
such filings.

     8.   Returns; Defective Products.  Supplier shall accept all returns of
Products supplied under this Agreement and returned by Purchaser's customer(s)
to Supplier, Purchaser or Purchaser's warehousing and fulfillment agent.
Supplier shall replace each returned Product that breaches the warranties set
forth in Section 9 or is otherwise defective.

     9.   Warranties of Supplier.  Supplier represents and warrants that:

          a.   All of the Products sold to Purchaser hereunder are in good
operating condition, were manufactured in a workmanlike manner in accordance
with prevailing professional standards, are fit and safe for the use for which
they were intended, and said Products and the resale thereof by Purchaser do not
and will not violate any laws, regulations, orders or ordinances of the country
of origin of the Products or any federal laws of the United States or any rules
or regulations of any agency of the United States or any other country in which
the Products may be sold.

          b.   Supplier shall replace any products that are proved to be
defective free of charge.  Purchaser shall be responsible for all shipping costs
to and from Purchaser's customer.

          c.   Supplier shall obtain and maintain during the term of this
Agreement a policy of product liability insurance in an amount not less than $5
million per claim.  Such insurance policy shall be issued by an insurance
company acceptable to Purchaser and shall name Purchaser as an additional
insured.

          d.   The Products will meet Purchaser's specifications as set forth in
each Product Delivery Request and will be free of patent and latent defects.

          e.   In the event of a breach of this Agreement by Supplier, Seller
shall be entitled to set-off any amounts owed by Seller hereunder against losses
incurred by Seller arising out of Supplier's breach of this Agreement.

     10.  Indemnity.

          a.   Indemnification.  Each party (the "Indemnifying Party") shall
defend, indemnify and hold the other party and its officers, directors, agents,
customers and sublicensees harmless from and against any loss, damage, injury,
liability, claims, causes of action or other expense, including reasonable
attorneys' fees involved in the defense of any such action, that the

                                       4.
<PAGE>

other party may suffer arising out of or resulting from such Indemnifying
Party's services performed pursuant to this Agreement including, without
limitation, (i) any claim based on the negligence, or willful misconduct of the
indemnifying party or any of such Indemnifying Party's affiliates; and (ii) any
breach of the representations and warranties in Section 9 of this Agreement.

          b.   Indemnification Procedure.  In the event the Indemnifying Party
is obligated to indemnify the other Party (the "Indemnified Party") under this
Agreement, the Indemnified Party will, as soon as is reasonably practicable, (i)
provide the Indemnifying Party with prompt written notice of any claim for which
indemnification is required, (ii) tender the defense of any such claim to the
Indemnifying Party, (iii) provide full cooperation for such defense at the
Indemnifying Party's expense, and (iv) not settle without the Indemnifying
Party's prior written approval, not to be unreasonably withheld. Notwithstanding
the foregoing, failure to give prompt notice as required by this Section 10.b
shall not preclude any claim for indemnification unless such failure has the
effect of prejudicing the rights of the Indemnifying Party with respect to such
claim. The Indemnified Party may participate in any such defense or settlement
with counsel of its own choosing at its expense.

     11.  Limitation of Liability.  In no event will Supplier be liable for any
consequential, indirect, exemplary, special or incidental damages including,
without limitation, any lost profits, arising from or relating to this
Agreement.  Supplier's total cumulative liability in connection with this
Agreement, whether in contract, tort or otherwise, will not exceed the amount of
fees actually paid to Supplier hereunder.

     12.  Confidentiality.

          a.   Confidential Information.  "Confidential Information" shall
consist of all information and materials clearly identified in writing as
Confidential Information including, without limitation, formulas, methods, know
how, processes, designs, new products and the terms and pricing under this
Agreement.

          b.   Confidentiality Obligations.  Supplier agrees not to use or
disclose any Confidential Information of Purchaser, except as may be necessary
to (i) third parties who have a specific need to know in order to facilitate the
design, development and manufacture of prototypes and products, who agree in
writing, to hold such information in confidence, or (ii) employees of Supplier
who have a specific need to know in order to fulfill the terms of this Agreement
and who agree, in writing, to hold all such information in confidence.  Further,
Supplier agrees not to disclose any Confidential Information of Purchaser to any
third party, including affiliates of Supplier, without the prior express written
permission of Purchaser.  These confidentiality provisions of this Section 12
shall not apply to any information that is or becomes generally available to the
public through no fault of the party seeking to disclose the information, or any
information properly obtained from a completely independent source under no
obligation of confidentiality.  The confidentiality provisions of this Section
12 shall also not apply to prohibit disclosure of Confidential Information (x)
as required by applicable disclosure laws; or (y) in connection with a court
order requiring disclosure, in which case Supplier must provide immediate notice
of such order to Purchaser and cooperate in any attempt to quash such order.

                                       5.
<PAGE>

     13.  Term and Termination.

          a.   Term.  The term of this Agreement (the "Term") shall commence on
the effective date hereof and continue in effect until December 31, 2019.
Thereafter, the Term shall be renewed automatically for subsequent five-year
terms unless terminated by Purchaser by written notice to Supplier at least
ninety (90) days prior to the expiration of the preceding term or as otherwise
provided herein.

          b.   Termination.  This Agreement may be terminated by either party
upon breach of any material obligation or condition hereof by the other,
effective thirty (30) days after giving written notice to the other of such
termination specifying such breach; provided, however, that if the default or
breach is cured or shown not to exist within such period, the notice shall be
deemed withdrawn and of no effect; provided, further, that this Agreement may be
terminated immediately by Purchaser upon breach of the confidentiality
obligations in Section 11 hereof by Supplier.  The right to terminate hereunder
is not exclusive and may be exercised in conjunction with or in addition to any
other right or remedy such party might have, at law or equity.

     14.  Continuing Obligations.  Upon Purchaser's termination of this
Agreement for any reason, Purchaser shall be obligated to purchase all Products
relating to any work in process, orders in production or Products in the
possession of Supplier which have been manufactured by Supplier pursuant to a
Purchase Order delivered prior to the effective date of the termination.  Except
as provided in this Section, Purchaser shall have no further obligation to
purchase any Products after the date of termination.  The provisions of this
section and Sections 5 ("Pricing and Payment Terms; Audit"), 8 ("Returns;
Defective Products"), 9 ("Warranties of Supplier"), 10 ("Indemnity"), 12
("Confidentiality"), 20 ("Waiver"), 21 ("Governing Law"), 22 ("Severability")
and 23 ("Attorneys' Fees") shall survive termination or expiration of this
Agreement for any reason.

     15.  Force Majeure.  No failure or omission by either party in the
performance of any obligation hereunder shall be deemed a breach of this
Agreement, nor create any liability if same shall arise from acts of God, acts
of war, condemnation, appropriation, governmental regulations or orders, floods,
the elements, fire, explosions and other casualties, transportation delays,
embargo, or any other occurrences beyond the reasonable control of such party
("Force Majeure").  Each party agrees to promptly notify the other party of any
of the foregoing occurrences and the non-performing party shall be excused from
performance, to the extent it relates to the Force Majeure, so long as such
conditions prevail, provided, however, that if the non-performing party remains
unable to perform for a continuous period of ninety (90) days, the other party
may terminate this Agreement on ten (10) days written notice to the non-
performing party.

     16.  Relationship of Parties.  The relationship between Supplier and
Purchaser is and during the term of this Agreement shall be solely that of
independent contractors.  Supplier will not have, and will not represent that it
has, any power, right or authority to bind Purchaser, or to assume or create any
obligation or responsibility express or implied, on behalf of Purchaser or in
Purchaser's name, except as herein expressly provided.  Nothing stated in this
Agreement shall be construed as making partners of Supplier and Purchaser, nor
as creating any agency, employment or franchise relationship between the
parties.

                                       6.
<PAGE>

     17.  Assignment.  Neither Supplier nor Purchaser may assign, encumber or in
any way transfer or delegate any interest, right or duty under this Agreement
without prior written consent of Purchaser.

     18.  Notices.  All notices or other communications hereunder shall be in
writing and shall be made by hand delivery, internationally-recognized overnight
courier, electronic mail, or registered or certified mail, postage prepaid,
return receipt requested, addressed as follows:

          X10 Wireless
          Technology, Inc.:     X10 Wireless Technology, Inc.
                                15200 52nd Avenue South
                                Seattle, WA  98188-2335
                                Attn:  President
                                e-mail: wade@x10.com

          X10 Ltd.:             X10 Ltd.
                                Room 1103-4,
                                Hilder Center
                                2 Sung Ping Street
                                Hunghom, Kowloon,
                                Hong Kong
                                e-mail: gseow@ibm.net

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, one (1) day after
deposit with an internationally-recognized overnight courier and three (3)
calendar days after so mailed, if sent by registered or certified mail.

     19.  Entire Agreement.  This Agreement, together with all the Purchase
Orders, constitutes the entire agreement between the parties, and supersedes all
prior arrangements and negotiations between the parties. This Agreement may be
modified or amended only by mutual written consent of the parties; provided,
however, that after the effective date of the Purchaser's first firm commitment
underwritten public offering of its securities registered under the Securities
Act of 1933, as amended, any such modification or amendment shall be effective
only if it is approved by a majority of the directors serving on the Audit
Committee of the Board of Directors of Purchaser.

     20.  Waiver.  Failure by either party to enforce at any time any term or
condition under this Agreement shall not be a waiver of the right to act on the
failure of such term or condition and shall not impair or waive that party's
right thereafter to enforce each and every term and condition of this Agreement.

     21.  Governing Law.  This Agreement will be governed and construed in
accordance with the laws of the State of Washington as applied to transactions
taking place wholly within Washington between Washington residents. The parties
hereby expressly consent to the exclusive personal jurisdiction of and venue in
the state and federal courts located in King County, Washington. Notwithstanding
the foregoing, however, Purchaser may bring an action

                                       7.
<PAGE>

for injunctive or equitable relief in any jurisdiction it deems reasonably
necessary to protect its proprietary rights. This Agreement shall not be subject
to or governed by the United Nations Convention on Contracts for the
International Sale of Goods, which is specifically disclaimed by the parties.

     22.  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.

     23.  Attorneys' Fees.  The substantially 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.

     24.  Waiver of Conflicts.  Each party to this Agreement acknowledges that
Cooley Godward LLP ("Cooley Godward"), outside general counsel to the Purchaser,
represents only the Purchaser with respect to the matters contained in this
Agreement and does not represent Supplier in connection herewith. Supplier
understands that and agrees that it should not rely upon the advice of Cooley
Godward with respect to the matters contained herein, and that it has had
adequate opportunity to obtain the advice of independent legal counsel with
respect to the matters contained in this Agreement.

     In Witness Whereof, the parties hereby execute this Amended and Restated
Product Supply Agreement as of the date set forth below.

X10 Ltd., a Bermuda corporation           X10 Wireless Technology, Inc., a
                                          Delaware corporation

By: /s/ George Stevenson                  By: /s/ Wade Pfeiffer
   ---------------------------------         ---------------------------------
George Stevenson, President               Wade Pfeiffer, CFO

Date: August 9, 2000                      Date: August 9, 2000

                                       8.
<PAGE>

                                   EXHIBIT A
                            Description of Products

<TABLE>
<CAPTION>
Product #         Product Name
---------         ------------
<C>               <S>
AK10A             MP3 Audio Sender
AK11A             MP3 Audio Sender + MP3 Remote
AR10A             MP3 Audio Receiver
AT10A             MP3 Audio Transmitter
CK17A             FireCracker Interface
CK18A             FireCracker
CK19A             FireCracker II
CM17A             Computer Interface, 310 MHz RF Transmitter, powered from serial port
CR12A             Camera Scanning Remote
KR19A             Keychain remote (SlimFIRE) for Home Control
KR21A             Keychain remote (similar to KR19A but 4 # buttons + On/Br-Off/Dim)
KR22A             Key chain remote (similar to KR19A but 4 separate ON-OFFs + Br/Dim)
MK19A             Mouse Remote and Receiver Kit
MR26A             MP3/Multimedia RF Receiver for use with UR51A and UR52A remotes
MS13A             HawkEye Indoor Motion Sensor
MS14A             EagleEye Indoor/Outdoor Motion Sensor
PHR04             Pro SlimLITE Key fob
PHR05             Pro Keychain Remote, similar to KR19A but 3 ON-OFF buttons
PHW03             Pro 3 unit + Bright/dim Wireless W.S. (for use with any X-10 RF  Receiver)
PHW04D            Pro HomePlate(TM)
PHW04D            HomePlate(TM) Gold
PMS02             Pro HawkEye(TM) Indoor Motion Sensor
PS10A             Addressable Power Supply for Video Senders (replaced by XM10A)
PT30A             Power Supply for VT30A
PT30A             Power Supply for VT30A
PT31A             Power supply for SC16A
PT31A             Power supply for SC16A
RCR17             Retail Camera Scanning Remote
RKR24             Retail SlimLITE Key fob
RLM20             Retail Mini Screw-In Lamp Module
RMS19             NITEOwl(TM) Retail Indoor/Outdoor Motion Sensor
RSC20             Retail version of SC15A-W. (WHITE)
RSS18             Retail HomePlate(TM)
RSS20             Retail HomePlate(TM) Gold
RVK35             Retail Video Sender
RVK54             Retail Scan Cam
RVR35             Retail Video Receiver + PR30A Power Supply
RVT35             Retail Video Transmitter + PT30A Power Supply
RXC15             Retail camera with 2.4 GHz transmitter built-in
RXC16             Retail b/w version Camera with 2.4 GHz transmitter built-in
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
Product #         Product Name
---------         ------------
<C>               <S>
RXM15             Retail version of XM10A
RXX16             Retail XC10A camera with 2.4 GHz transmitter built-in + XM10A P.S.
RXX17             Retail XC11A b/w camera with 2.4 GHz transmitter plus power supply
SC15A             Xcam Anywhere (Indoor/Outdoor) Camera with mic. (GRAY)
SC15A-W           Xcam Anywhere (Indoor/Outdoor) Camera with mic. (WHITE)
SC16A             Xcam Anywhere (Indoor/Outdoor) Camera with mic. (GRAY)
SC17A             Xcam Anywhere (Indoor/Outdoor) Camera with mic. (WHITE)
SC18A             Xcam Anywhere (Indoor/Outdoor) Camera with mic. (GRAY) new IC + XM10A
SC20A             B/W Xcam Anywhere (GRAY)
SC21A             B/W version of Xcam Anywhere (GRAY 60 ft. cord + XM10A)
SS13A             StyleSwitch 3 unit + dim
SS15A             StyleSwitch 3 unit + dim (Gold Trim)
SW10A             MacroRecorder Software
SW11A             Fuse Software
SW12A             Boom Software
SW15A             X-Ray Vision Software
SW16A             Boom II Software
SW17A             IR Commander software for use with UX17A
UR47A             X-10 DVD 6-in-1 RF: TV, VCR, CBL, AUX, ,SAT, DVD
UR51A             MP3 Remote, same as UR47A but with PC features added.
UR52A             Real Media Remote, same as UR47A but with PC features added.
UX17A             RF to IR A/V Blaster with plug-in power supply
VA10A             USB to Video Adapter
VA23A             VGA to Video Adapter
VC10A             Indoor Color Camera
VC12A             Indoor Color Camera with mic
VK20A             Video Sender kit
VK22A             Video Sender kit + UR23A
VK25A             Big Picture Kit
VK30A             New Video Sender kit
VK32A             XCam kit. Includes VR30A, VT30A, PR30A, PT30A, VC10A
VK34A             XCam Anywhere kit. Includes VR30A, VT30A, PR30A, PT30A, SC15A
VK35A             DVD Anywhere kit. Includes VR30A, VT30A, PR30A, PT30A, MK19A + cable
VK36A             MP3 Anywhere kit. Includes VR30A, VT30A, PR30A, PT30A, MK19A + cable
VK37A             Xcam with mic Video Sender kit (VR30A, VT30A, PR30A, PT30A, VC12A)
VK38A             Video Sender kit with camera, CR12A, XM10A, (qty and mix to TBT)
VK41A             SC15A-W and VT30A (includes PT30A)
VK42A             VK40A plus IN19A (instructions) Now VR30A + IN19A
VK43A             VC10A and VT30A (includes PT30A)
VK44A             SC15A-W + PT31A + 60 ft. cable
VK45A             XX10A, VR30A, RCA/RCA cable, FF cable (replaced by VK48A)
VK47A             UR51A MP3 Remote plus MR26A Receiver
VK48A             XX10A, VR31A (mono), RCA/RCA cable, FF cable
VK49A             XC10A camera + XM10A addressable PS + VR31A Video Receiver
VK50A             VA10A USB Video Adapter + SW15A Xray Vision Software
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
Product #         Product Name
---------         ------------
<C>               <S>
VK51A             SC15A + VK30A + VK50A (VA10A + SW15A) + IN22A instructions
VK52A             MP3 Anywhere 2000 kit (VK30A, VK47A, SW16A, ZC13A, IN23A
VK53A             DVD Anywhere 2000 kit (VK30A, VK47A, SW16A, ZC13A, IN24A
VK55A             XRay Vision: XX10A, VR30A, VA10A, SW15A, IN25A
VK56A             XCam Anywhere Kit white (VK30A, SC15A-W, IN13A)
VR20A             Large Video Receiver (part of VK20A and VK22A Kits)
VR30A             Small Video Receiver + PR30A Power Supply (* was VK40A)
VR31A             Small Video Receiver (ONE audio connector) + PR30A Power Supply
VT20A             Large Video Transmitter (part of VK20A and VK22A Kits)
VT24A             Large Video Transmitter (part of VK25A Big Picture Kit)
VT30A             Small Video Transmitter + PT30A Power Supply (* was VK39A)
XC10A             Camera with 2.4 GHz transmitter built-in
XC11A             b/w version of XC10A Camera with 2.4 GHz transmitter built-in
XM10A             100mA X10 controlled power supply for the XC10A camera.
XM11A             200mA X10 controlled power supply for the XC10A camera
XPC10             Pro VC10A and VT30A (includes PT30A)
XPC20             Pro SC15A-W and VT30A (includes PT30A)
XSC15             Pro Xcam Anywhere (Indoor/Outdoor) Camera with mic. (WHITE)
XSC17             Pro SC15A-W + PT31A + 60 ft. cable
XVC10             Pro Indoor Color Camera
XX10A             XC10A camera with 2.4 GHz transmitter built-in + PT30A power supply
XX11A             XC10A camera with 2.4 GHz transmitter built-in + XM10A power supply
XX12A             XC11A b/w camera with 2.4 GHz transmitter plus power supply
ZB10A-100         Battery Pack for XC10A camera
ZB10A-200         Battery Pack for XC10A camera with on/off switch
ZC13A             MP3 cable
ZC14A             XCam Anywhere Adapter Cable
ZT10A             Tripod for XCams

RC5000            Wireless Remote Control System (includes RT504 and RR501)
RT504             8 Button Remote Control
HR12A             PalmPad(TM) 8 Button Remote Control
RC6500            Wireless Remote Control System (includes KC674 and TM751)
KC674             2 Button Remote Control
RW684             Stick-A-Switch(TM) Wireless Wall Switch, 2 unit
RW694             Stick-A-Switch(TM) Wireless Wall Switch, 4 unit
RW724             Stick-A-Switch(TM) Wireless Wall Switch, 3 unit + Bright/Dim
MC460             Mini Controller
SC503             Maxi Controller
SD533             SUNDOWNER(TM)
PR511             Dual-Floodlight Motion Detector
MT522             Mini Timer
MT10A             Mini Timer
TR551             Telephone Responder
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
Product #         Product Name
---------         ------------
<C>               <S>
TR16A             Telephone Responder
CP290             Home Automation Interface (for IBM PC compatibles)
CM11A             Two-Way Universal Computer Interface (for IBM PC compatibles)
TH2807            Thermostat Set-Back
LM465             Lamp Module
LM14A             2-Way Lamp Module
WS467             Wall Switch Module
WS4777            3-Way Wall Switch (includes WS477 Master Switch and CS277 Companion Switch)
AM486             Appliance Module (2 pin polarized)
AM14A             2-Way Appliance Module (2 pin polarized)
AM466             Appliance Module (3 pin grounded)
AM15A             2-Way Appliance Module (3 pin grounded)
SR227             SuperSocket(TM) Split Receptacle Module
HD243             Heavy Duty 220V Appliance Module (15 A)
HD245             Heavy Duty 220V Appliance Module (20 A)
SC546             Remote Controlled Chime Module
UM506             Universal Module
SL575             Screw-in Lamp Module
LM15A             SocketRocket(TM) Miniature Screw-in Lamp Module
RR501             Two-Way Wireless Transceiver/Appliance Module
TM751             Wireless Transceiver/Appliance Module
WS13A             3-Way Fluorescent Wall Switch Module
WS14A             Decorator Dimmer Switch Module
PM5900            POWERMID(TM) Infrared Remote Extender
ST539             POWERMID Infrared Transmitter
RE549             POWERMID Infrared Receiver
RX569             POWERMID Infrared Extender
IR543             Infrared Gateway Controller
UR41A             TV Buddy Universal TV Remote
DS7000            Protector Plus 7 Piece Security System with Voice Dialer
VS5600            Protector Plus Security Console/Voice Dialer System (PS561 and SH624)
DC8700            Monitor Plus Monitored 7 Piece Security System with Digital Communicator
DC821             Monitored Console
SH624             Security/Home Automation Remote Control
KF574             Key Chain Remote
KR10A             Key Chain Remote
DW534             Door/Window Sensor
DS10A             Door/Window Sensor
SP554A            Motion Detector
MS10A             Motion Detector
PH508             POWERHORN Remote Siren
SH10A             POWERHORN Remote Siren
PF284             POWERFLASH Burglar Alarm Interface
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
Product #         Product Name
---------         ------------
<C>               <S>
SR731             Smart RF Repeater
PA5800            Personal Assistance Security Console/Voice Dialer with Heart-Shaped Panic Pendant
PC9200            Personal Assistance Security Console with Digital Communicator
PC902             Monitored Console
HP564A            Water-Resistant Call Pendant
KR15A             Big Red(TM) Panic Button
WR10A             Wrist Watch Panic Button
ORCA 2000         Panic Alarm System
PK9000            RoboDog(TM) Barking Dog Alarm
DM10A             Outdoor Motion Detector for use with RoboDog
</TABLE>
<PAGE>

                                   EXHIBIT B

                    Terms and Conditions of Purchase Orders

Payment Terms:
-------------

120 days after delivery to F.O.B. shipping point.

General Terms and Conditions:
----------------------------

1.   This order is not valid unless signed or otherwise authorized in writing by
     the Purchaser's representative. If the terms specified on this order do not
     appear on or agree with Supplier's invoice as rendered, Supplier agrees
     that Purchaser may change the invoice to conform to this order and make
     payment accordingly.

2.   In the event Supplier is unable to deliver any part or all of the
     merchandise called for by this order, Supplier agrees to notify the
     Purchaser immediately.

3.   All goods furnished under this order shall be subject to inspection and
     testing by representatives of Purchaser or its agents. Payments for goods
     prior to inspection shall not constitute acceptance and Purchaser reserves
     the right to hold for Supplier or return to Supplier, any rejected goods.

4.   Delivery shall be F.O.B. Hong Kong, unless otherwise specified on the face
     of this order. Prior to July 1, 2000, title to and risk of loss of Products
     subject to a Product Delivery Request shall pass from Supplier to Purchaser
     upon Supplier's receipt of a Purchase Order for such Products from
     Purchaser. On and after July 1, 2000, title to and risk of loss of Products
     subject to a Product Delivery Request shall pass from Supplier to Purchaser
     upon the earlier of (i) Supplier's receipt of a Purchase Order for such
     Products from Purchaser, or (ii) payment by Purchaser of the full purchase
     price for such Products. Purchaser shall be entitled to file any financing
     statements and other documents necessary to protect Purchaser's interest in
     any Products subject to outstanding Purchase Orders, and Supplier agrees to
     cooperate in any manner necessary to effectuate such filings.

5.   Supplier hereby assigns to Purchaser all assignable warranty rights with
     respect to the merchandise in this order, including without limitation all
     rights of Supplier under warranties of any manufacturer of any of the
     merchandise or any part or component thereof.

6.   Supplier warrants that the merchandise shipped under this order, including
     packaging and labeling: (a) was produced in compliance with all applicable
     laws, regulations, orders and ordinances of the country of origin and of
     the federal laws of the United States or any agency thereof, including
     without limitation any hazardous substance laws; (b) is accurately labeled
     and clearly identifies the country of origin; and (d) is labeled in
     accordance with and complies in all respects with any and all applicable
     federal regulations, orders and ordinances.

7.   A waiver of or failure to perform any one or more of the conditions of this
     order shall not constitute a waiver of or an excuse for nonperformance as
     to any other part of this or any other order.

8.   In the event of any proceeding, voluntary or involuntary, in bankruptcy or
     insolvency by or against the Supplier, including any proceeding under the
     United States bankruptcy laws, or any bankruptcy, insolvency or
     receivership laws of any state or any foreign country, or any political
     subdivision thereof or in the event of the appointment with or without
     Supplier's consent of a receiver or an assignee for the benefit of
     creditors, Purchaser may, at its option, cancel this order as to any
     undelivered portion of the merchandise.

9.   This order and the rights and obligations of the parties hereunder shall be
     determined in accordance with the laws of the State of Washington and shall
     not be subject to or governed by the U.N. Convention on Contracts for the
     International Sale of Goods. If litigation arises hereunder or as a
     consequence of any transaction contemplated or resulting from this or
     either party's performance or breach thereof, jurisdiction and venue of
     such litigation shall be in the Superior Court for the State of Washington
     for King County, or the United States District Court for the Western
     District of Washington in Seattle, at the option of Purchaser, and Supplier
     hereby consents to such jurisdiction and venue. Any award or judgment of
     any of said courts may be entered and enforced in any other domestic or
     foreign court of competent jurisdiction, and shall be awarded full faith
     and credit.<PAGE>

                                                                   EXHIBIT 10.13

                             AMENDED AND RESTATED
                        FULFILLMENT SERVICES AGREEMENT

     This Amended and Restated Fulfillment Services Agreement ("Agreement") is
made effective as of October 1, 1999, between X-10 (USA) Inc., a New Jersey
corporation ("X-10 (USA)"), and X10 Wireless Technology, Inc., a Delaware
corporation ("X10 Wireless").

                                   RECITALS

     A.   X-10 (USA) wishes to act as warehousing agent of broadband wireless-
and powerline-based products consigned to X10 (USA) by manufacturers of such
products for sale to X10 Wireless and resale to its customers;

     B.   X10 Wireless is in the business of designing, developing,
manufacturing, marketing, selling and distributing broadband wireless- and
powerline-based home and small office networking products, and purchases such
products manufactured by X-10 Ltd. pursuant to purchase orders under an Amended
and Restated Product Supply Agreement between X10 Wireless and X-10 Ltd. (the
"Supply Agreement"), as well as similar products manufactured under other
manufacturing agreements (collectively, "Products");

     C.   X10 Wireless expects to develop and acquire Products for resale to its
customers, and the parties desire to establish an order fulfillment arrangement
pursuant to the terms of this Agreement to provide for the delivery of Products
to the customers of X10 Wireless;

     D.   X10 Wireless and X10 (USA) have previously entered into that certain
Fulfillment Services Agreement (the "Fulfillment Services Agreement") dated as
of October 1, 1999, pursuant to which X10 (USA) agreed to provide certain
warehousing and fulfillment services to X10 Wireless;

     E.   The Fulfillment Services Agreement did not fully set forth the entire
understanding between the parties with respect to the fulfillment services to be
provided under the Fulfillment Services Agreement; and

     F.   The parties now wish to amend and restate the Fulfillment Services
Agreement in order to clarify and memorialize the correct understanding of the
parties with respect to the fulfillment services to be provided under the
Fulfillment Services Agreement and to further describe the obligations and
practices of the parties in connection therewith.

                                       1.
<PAGE>

                                   AGREEMENT

     In consideration of the foregoing, the mutual covenants and conditions
contained in this Agreement and other good and valuable consideration, the
receipt of which is hereby acknowledged, the parties agree as follows:

     1.   Warehousing of Products.  To the extent requested by X10 Wireless, X-
10 (USA) shall act as warehousing agent for Products to be shipped by X-10 (USA)
on behalf of X10 Wireless. Warehousing services shall include (a) receiving
Products from X-10 Ltd. or other manufacturers designated by X10 Wireless; (b)
storing the Products in a separate, specifically identified area of X-10 (USA)'s
facility; and (c) fulfilling orders from X10 Wireless in accordance with the
provisions of Sections 2 and 3 of this Agreement. Products shipped by X-10 Ltd.
shall be warehoused by X-10 (USA) on a consignment basis, pursuant to the terms
of the Supply Agreement.

     2.   Fulfillment.

          a.   Fulfillment Orders.  X10 Wireless shall submit to X-10 (USA)
written or electronic orders for the fulfillment of customer orders
("Fulfillment Orders"). Each order shall include the following information: (a)
description and quantity of each Product to be shipped, (b) customer name and
address, and (c) required timing and method for shipment and delivery. X10
Wireless shall not be required to submit Fulfillment Orders at any time or for
any specific quantity of any Product. Each Fulfillment Order submitted by X10
Wireless shall be subject to and limited by all of the terms and conditions as
stated in X10 Wireless's standard fulfillment order form, attached hereto as
Exhibit A (the "Standard Form"), as such terms and conditions may be amended
from time to time by X10 Wireless and approved by X-10 (USA), which approved
shall not be unreasonably withheld. If any Fulfillment Order is delivered to X-
10 (USA) by X10 Wireless which does not contain the terms and conditions set
forth in the Standard Form, including any Fulfillment Order delivered
electronically or by facsimile, such Fulfillment Order shall be deemed to
contain the terms and conditions set forth in the Standard Form. The terms and
conditions set forth in the Standard Form shall control over any conflicting
terms in a Fulfillment Order, unless X10 Wireless consents in writing, and X10
WIRELESS HEREBY OBJECTS TO ANY DIFFERENT OR ADDITIONAL TERMS IN ANY ACCEPTANCE
FORMS OR ANY OTHER DOCUMENTS TRANSMITTED ON BEHALF OF X-10 (USA), UNLESS THE
WRITTEN CONSENT OF X10 WIRELESS IS FIRST OBTAINED. X10 Wireless shall be
entitled to file any financing statements and other documents necessary to
protect X10 Wireless's interest in any Products, and X-10 (USA) agrees to
cooperate in any manner necessary to effectuate such filings.

          b.   Inserts.  From time to time, X10 Wireless may deliver, at no cost
to X-10 (USA), copies of custom insertions that X10 Wireless requests to be
included with shipments of Products to customers of X10 Wireless ("Inserts"). X-
10 (USA) shall notify X10 Wireless if X-10 (USA) believes that its supply of
Inserts is not sufficient to meet anticipated needs for the next seven (7) days.
All Inserts shall be deemed accepted upon delivery to X-10 (USA). At X10
Wireless's request, X-10 (USA) shall promptly notify X10 Wireless of the number
of Inserts remaining in its possession.

                                       2.
<PAGE>

          c.   Shipments.  After receipt of a Fulfillment Order, X-10 (USA)
shall (a) print, in accordance with X10 Wireless's instructions, the text of any
special message on the standard packing slip included with the Fulfillment
Order; (b) include X10 Wireless's return policy (including instructions that
customers should return Products to X-10 (USA)'s return center address) and any
additional packing slips (including Inserts) requested by X10 Wireless in the
Fulfillment Order; (c) print and affix appropriate shipping labels on each
shipment; (d) pursuant to X10 Wireless's instructions and based upon
availability of Products in stock, ship the Products ordered in the Fulfillment
Order to the customer; (e) promptly notify X10 Wireless of any Products that X-
10 (USA) does not have in stock at the time a Fulfillment Order is submitted for
them ("Back Ordered Products"); and (f) ship any Back Ordered Products when
received by X-10 (USA) in accordance with this Section 2. X-10 (USA) shall
fulfill all Fulfillment Orders no later than the business day following the day
that X-10 (USA) receives the order. If X-10 (USA) does not ship all of the
Products ordered in a Fulfillment Order as provided in this Section 2(c), X-10
(USA) shall notify X10 Wireless no later than the next business day, and X10
Wireless may without obligation cancel such Fulfillment Order.

          d.   Lost Shipments.  To the extent practicable, X-10 (USA) shall
cooperate with X10 Wireless in tracking lost shipments and shall file claims
with the appropriate carrier in the event of lost shipments.

          e.   Delivery Services.  X-10 (USA) shall deliver Products directly to
X10 Wireless's customers pursuant to each Fulfillment Order. Products shall be
delivered in correct quantities, to the correct address and within shipment and
delivery times, as specified in each Fulfillment Order.

          f.   Reports to X10 Wireless.

          (1)  On a daily basis, X-10 (USA) shall report to X10 Wireless: (i)
     all shipments made the preceding business day by Fulfillment Order number
     and tracking number, all Products contained in each Fulfillment Order, and
     all Back Ordered Products by Fulfillment Order Number; and (ii) all Product
     returns received by X-10 (USA) on the preceding business day, indicating
     quantity and amount, and the processing status of each return.

          (2)  On a monthly basis, X-10 (USA) shall deliver to X10 Wireless a
     statement of account which details (i) all invoices sent to X10 Wireless
     during the prior calendar month, (ii) all payments received from X10
     Wireless during the prior calendar month, and other credits made against
     X10 Wireless's payment obligations, and (iii) all unpaid invoices.

At X10 Wireless's request, the reports described in subsections (1) and (2)
above shall be delivered electronically. In addition, X-10 (USA) shall use
commercially reasonable efforts to make all such information available to X10
Wireless on a real-time basis from a secure FTP or HTTP site.

                                       3.
<PAGE>

          g.   License.  X10 Wireless hereby grants to X-10 (USA) a non-
exclusive, non-sublicensable license to (a) distribute the Inserts in connection
with shipment of the Products in accordance with this Section 2, and (b) use the
copyrights, trade names, logos, trademarks and service marks owned or licensed
by X10 Wireless on Product invoices and other materials provided to customers,
but only in accordance with X10 Wireless's specifications and the provisions of
this Section 2. X10 Wireless may terminate the foregoing trademark license if it
believes, in its reasonable discretion, that the quality of X-10 (USA)'s use or
the Product quality does not meet X10 Wireless's standards.

          h.   Non-Exclusive Dealing.  X10 Wireless may, in its sole discretion,
use alternative suppliers of warehousing and fulfillment for the Products, in
addition to or instead of X-10 (USA).

          i.   Order Cancellation.  X10 Wireless shall have the right to cancel
any Fulfillment Order that has not yet been shipped and shall receive full
credit for the Fulfillment Order.

     3.   Shipments and Returned Products.

          a.   Shipment Quality.  X-10 (USA) shall use commercially reasonable
efforts to: (a) ship all Products in accordance with the shipping methods
specified by X10 Wireless, (b) avoid shipping Products which contain
manufacturing defects or are damaged, shop worn or soiled, and (c) pack
shipments in a manner to prevent damage during shipment.

          b.   Returns.  X-10 (USA) shall accept returns in accordance with X10
Wireless's return policies.  Within twenty (20) days of X-10 (USA)'s receipt of
returned Products, X-10 (USA) shall: (a) log such Products as having been
returned; (b) provide X10 Wireless with sufficient information (via email or
such other method as X10 Wireless may reasonably request) to allow X10 Wireless
to properly credit customers for such returns, including, without limitation,
customer name and address, Fulfillment Order number and the types of Products
(and quantities thereof) returned; and (c) follow X10 Wireless's instructions
regarding the processing, destocking, refurbishment or return to manufacturer of
any returned Products.

     4.   Service Fees.  X10 Wireless shall pay X-10 (USA) a service fee for
each delivery made by X-10 (USA) pursuant to a Fulfillment Order. Unless
otherwise specifically agreed between the parties, the service fee for all
Fulfillment Orders during the preceding calendar month shall be equal to the
lower of (x) ten percent (10%) of X10 Wireless's gross receipts for products
delivered by X-10 (USA) pursuant to a Fulfillment Order, net of sales and other
taxes, or (y) the amount to be charged in a bona fide written competitive offer
received by X10 Wireless. Service fees shall be payable net 30 days after
receipt of invoice by X10 Wireless. Notwithstanding the foregoing, in any event,
the monthly service fees charged to X10 Wireless shall be competitive with third
party rates for substantially similar services.

     5.   Taxes.  X10 Wireless shall be responsible for all sales, use, excise
and/or transfer taxes payable in connection with the sale of the Products to
customers of X10 Wireless.

                                       4.
<PAGE>

     6.   Warranties of X-10 (USA).  X-10 (USA) represents and warrants that:

          a.   The Products will be delivered in correct quantities and to the
address provided by X10 Wireless, as specified in each Fulfillment Order.  The
Products will also be shipped from the fulfillment center within the time
provided in each Fulfillment Order.

          b.   X-10 (USA) will comply with all applicable laws, regulations,
orders and ordinances of the United States and any state, or any agency or
political subdivision thereof, including without limitation any environmental or
hazardous substance laws and regulations, the Federal Fair Labor Standards Act,
the National Labor Relations Act and other state and local wage and hour and
wage payment laws and regulations.

     7.   Indemnity.

          a.   Indemnification.  Each party (the "Indemnifying Party") shall
defend, indemnify and hold the other party and its officers, directors, agents,
customers and sublicensees harmless from and against any loss, damage, injury,
liability, claims, causes of action or other expense, including reasonable
attorneys' fees involved in the defense of any such action, that the other party
may suffer arising out of or resulting from (i) any breach or alleged breach of
any of the terms or conditions of this Agreement or any representations or
warranties of the Indemnifying Party made in this Agreement, in any Fulfillment
Order, or otherwise, or (ii) any act or omission of the Indemnifying Party, or
the servants, agents or subcontractors of the Indemnifying Party, in the
delivery of Products or in the performance of any work hereunder.

          b.   Indemnification Procedure.  In the event the Indemnifying Party
is obligated to indemnify the other Party (the "Indemnified Party") under this
Agreement, the Indemnified Party will, as soon as is reasonably practicable, (i)
provide the Indemnifying Party with prompt written notice of any claim for which
indemnification is required, (ii) tender the defense of any such claim to the
Indemnifying Party, (iii) provide full cooperation for such defense at the
Indemnifying Party's expense, and (iv) not settle without the Indemnifying
Party's prior written approval, not to be unreasonably withheld. Notwithstanding
the foregoing, failure to give prompt notice as required by this Section 7.b.
shall not preclude any claim for indemnification unless such failure has the
effect of prejudicing the rights of the Indemnifying Party with respect to such
claim. The Indemnified Party may participate in any such defense or settlement
with counsel of its own choosing at its expense.

     8.   Limitation of Liability.  In no event will X-10 (USA) be liable for
any consequential, indirect, exemplary, special or incidental damages including,
without limitation, any lost profits, arising from or relating to this
Agreement. X-10 (USA)'s total cumulative liability in connection with this
Agreement, whether in contract, tort or otherwise, will not exceed the amount of
fees actually paid to X-10 (USA) hereunder.

     9.   Term and Termination.

          a.   Term.  The term of this Agreement (the "Term") shall commence on
the date hereof and continue in effect until December 31, 2004, to be renewed
automatically

                                       5.
<PAGE>

for subsequent five-year terms unless terminated by X10 Wireless by written
notice to X-10 (USA) at least ninety (90) days prior to the expiration of the
preceding term or as otherwise provided herein.

          b.   Termination.  This Agreement may be terminated by X10 Wireless at
any time, effective thirty (30) days after giving written notice to X-10 (USA),
if X10 Wireless determines in its reasonable discretion that the monthly service
fees charged to X10 Wireless are not competitive with third party rates for
substantially similar services.  In addition, this Agreement may be terminated
by either party upon breach of any material obligation or condition hereof
(other than a default) by the other, effective thirty (30) days after giving
written notice to the other of such termination specifying such breach;
provided, however, that if the default or breach is cured or shown not to exist
within such period, the notice shall be deemed withdrawn and of no effect.  This
Agreement may be terminated immediately by either Party upon a breach by the
other Party of the provisions of Section 11 of this Agreement.  The right to
terminate hereunder is not exclusive and may be exercised in conjunction with or
in addition to any other right or remedy such party might have, at law or
equity.

     10.  Continuing Obligations.  Upon termination of this Agreement, unless
otherwise agreed, X-10 (USA) shall deliver to X10 Wireless, or, if so directed
by X10 Wireless, to another location, in the manner requested by X10 Wireless
and at X10 (USA)'s expense, all Products that are then the subject of any
Fulfillment Orders previously submitted by X10 Wireless that have not already
been shipped to X10 Wireless's customers. Except as provided in this Section,
the parties shall have no further obligations hereunder after the effective date
of the termination. In no event will X10 Wireless be obligated to purchase or
otherwise be responsible for any Products that are not then the subject of
Fulfillment Orders previously submitted by X10 Wireless. In addition to this
Section 10, the terms and conditions set forth in Sections 7, 11 and 18 shall
survive expiration or termination of this Agreement for any reason.

     11.  Confidentiality.  X-10 (USA) shall not disclose to any third party,
including its affiliates: (a) any information or data collected or received
regarding X10 Wireless customers (including, without limitation, any personally
identifiable information, demographic or similar statistical data, customer
purchasing habits or customer information contained on a Fulfillment Order), or
(b) information regarding Product quantities, dollar volumes, Product revenues,
Product returns, wholesale prices and similar information. Furthermore, X-10
(USA) shall not use the foregoing information for any purpose other than as
necessary to deliver purchased goods to customers in accordance with Fulfillment
Orders. X-10 (USA) shall use, at minimum, industry-standard methods to protect
the security of all information subject to this Section 11.

     12.  Force Majeure.  No failure or omission by either party in the
performance of any obligation hereunder shall be deemed a breach of this
Agreement, nor create any liability if the same shall arise from acts of God,
acts of war, condemnation, governmental regulations or orders, floods, the
elements, fire, explosions and other casualties, riots, public commotion,
embargo, or any other occurrences beyond the reasonable control of such party
("Force Majeure"). Each party agrees to promptly notify the other party of any
of the foregoing occurrences and the non-performing party shall be excused from
performance, to the extent it relates to the Force Majeure, so long as such
conditions prevail, provided, however, that if the non-performing party remains
unable to perform for a continuous period of ninety (90) days, the

                                       6.
<PAGE>

other party may terminate this Agreement on ten (10) days written notice to the
non-performing party.

     13.  Relationship of Parties.  The relationship of X-10 (USA) to X10
Wireless is and during the term of this Agreement shall be solely that of an
independent contractor. X-10 (USA) will not have, and will not represent that it
has, any power, right or authority to bind X10 Wireless, or to assume or create
any obligation or responsibility express or implied, on behalf of X10 Wireless
or in X10 Wireless's name, except as herein expressly provided. Nothing stated
in this Agreement shall be construed as making partners of X-10 (USA) and X10
Wireless, nor as creating any agency, employment or franchise relationship
between the parties.

     14.  Assignment.  Neither X-10 (USA) nor X10 Wireless may assign, encumber
or in any way transfer or delegate any interest, right or duty under this
Agreement without prior written consent of the other.

     15.  Notices.  All notices or other communications hereunder shall be in
writing and shall be made by hand delivery, nationally-recognized overnight
courier, electronic mail or registered or certified mail, postage prepaid,
return receipt requested, addressed as follows:

          X10.com, Inc.:     X10 Wireless Technology, Inc.
                             15200 52nd Avenue South
                             Seattle, WA  98188-2335
                             Attn:  President
                             e-mail: wade@x10.com

          X-10 (USA):        X-10 (USA) Inc.
                             91 Ruckman Road
                             Closter, NJ 07624-0420
                             Attn: Tony Braathen, Finance Director
                             e-mail: tonyx10@aol.com

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, one (1) day after
deposit with a nationally-recognized overnight courier, and three (3) calendar
days after so mailed, if sent by registered or certified mail.

     16.  Entire Agreement.  This Agreement, together with the Fulfillment
Orders, constitutes the entire agreement between the parties, and supersedes all
prior arrangements and negotiations between the parties. This Agreement may be
modified or amended only by mutual written consent of the parties; provided,
however, that after the effective date of the X10 Wireless's first firm
commitment underwritten public offering of its securities registered under the
Securities Act of 1933, as amended, any such modification or amendment shall be
effective only if it is approved by a majority of the directors serving on the
Audit Committee of the Board of Directors of X10 Wireless.

                                       7.
<PAGE>

    17.   Waiver.  Failure by either party to enforce at any time any term or
condition under this Agreement shall not be a waiver of the right to act on the
failure of such term or condition and shall not impair or waive that party's
right thereafter to enforce each and every term and condition of this Agreement.

     18.  Governing Law.  This Agreement will be governed and construed in
accordance with the laws of the State of Washington as applied to transactions
taking place wholly within Washington between Washington residents. Seller
hereby expressly consents to the exclusive personal jurisdiction of and venue in
the state and federal courts located in King County, Washington for any lawsuit
filed there arising from or related to this Agreement. This Agreement shall not
be subject to or governed by the United Nations Convention on Contracts for the
International Sale of Goods, which is specifically disclaimed by the parties.

     19.  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.

     20.  Attorneys' Fees.  The substantially 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.

     21.  Waiver of Conflicts.  Each party to this Agreement acknowledges that
Cooley Godward LLP ("Cooley Godward"), outside general counsel to X10 Wireless,
represents only Wireless with respect to the matters contained in this Agreement
and does not represent X-10 (USA) in connection herewith. X-10 (USA) understands
that and agrees that it should not rely upon the advice of Cooley Godward with
respect to the matters contained herein, and that it has had adequate
opportunity to obtain the advice of independent legal counsel with respect to
the matters contained in this Agreement.

                                       8.
<PAGE>

     In Witness Whereof, the parties have executed this Amended and Restated
Fulfillment Services Agreement as of the date set forth below.

X-10 (USA) Inc.:                          X10 Wireless Technology, Inc.:

By /s/ Tony Braathen                      By /s/ Wade Pfeiffer
  ----------------------------------        ----------------------------------
Tony Braathen, Finance Director           Wade Pfeiffer, CFO

Dated August 9, 2000                      Dated: August 9, 2000

                                       9.
<PAGE>

                                   EXHIBIT A

              Standard Terms and Conditions of Fulfillment Orders

General Terms and Conditions:
----------------------------

1.   All Fulfillment Orders must be authorized by X10 Wireless's representative.
     If the terms specified on this order do not appear on or agree with X-10
     (USA)'s invoice as rendered, X-10 (USA) agrees that X10 Wireless may change
     the invoice to conform to this order and make payment accordingly.

2.   X-10 (USA) assumes responsibility for the costs associated with the
     delivery of all goods delivered prior to receipt by X-10 (USA) of the
     Fulfillment Order duly signed or otherwise authorized.

3.   In the event X-10 (USA) is unable to deliver any part or all of the
     merchandise called for by this order, X-10 (USA) agrees to notify the X10
     Wireless immediately. Such notice will not limit the remedies available to
     X10 Wireless or the liability of X-10 (USA) for non-performance.

4.   X10 Wireless or X10 Wireless's agent or customer may refuse delivery or
     return goods at X-10 (USA)'s cost for:
     a.   Shipments of incorrect quantities or delivered to incorrect addresses.
     b.   Shipments which are not received by X10 Wireless's customer within the
          delivery time specified in this order.
     c.   Shipments which are not in compliance with the instructions and
          invoicing specified in this order.
     d.   Goods which are damaged due to inadequate packaging or shipping
          procedures.

5.   Payments for delivery shall not constitute acceptance and X10 Wireless
     reserves the right to hold for X-10 (USA) or return to X-10 (USA), at X-10
     (USA)'s expense, any refused or rejected goods.

6.   X-10 (USA) will comply with all applicable laws, regulations, orders and
     ordinances of the United States and any state, or any agency or political
     subdivision thereof, including without limitation any environmental or
     hazardous substance laws and regulations, the Federal Fair Labor Standards
     Act, the National Labor Relations Act and other state and local wage and
     hour and wage payment laws and regulations.

7.   X-10 (USA) agrees to defend (with counsel acceptable to X10 Wireless),
     indemnify and save harmless X10 Wireless from any and all claims, suits,
     liabilities, damages, losses or expenses, including attorneys' fees,
     asserted against or incurred by X10 Wireless by reason of, or arising out
     of or occurring in connection with (a) any breach or alleged breach of any
     of the terms or conditions of this order or any representations or
     warranties of X-10 (USA) made in this order or otherwise, or (b) any act or
     omission of X-10 (USA), or the servants, agents or subcontractors of X-10
     (USA), in the performance of work hereunder. X-10 (USA) agrees that X10
     Wireless may maintain records of X-10 (USA)'s compliance with the
     representations and warranties of X-10 (USA) made in this order or
     otherwise and that X10 Wireless may at any time, upon notice to X-10 (USA),
     undertake inspection of X-10 (USA)'s facilities in order to determine such
     compliance.

8.   X10 Wireless reserves the right to cancel all or any part of this order
     which has not actually been shipped by X-10 (USA) in the event X10
     Wireless's business is interrupted because of strikes, labor disturbances,
     lockout, riot, fire, act of God, or the public enemy, or any other cause,
     whether like or unlike the foregoing, if beyond the reasonable efforts of
     X10 Wireless to control. X-10 (USA)'s timely performance hereunder shall
     not be excused or deemed to have been made impracticable by reason of any
     delay or failure to perform by X-10 (USA) or any agent, subcontractor or X-
     10 (USA) of X-10 (USA), caused by or related to any computer system
     incompatibility with the year 2000.

9.   A waiver of or failure to perform any one or more of the conditions of this
     order shall not constitute a waiver of or an excuse for nonperformance as
     to any other part of this or any other order.

10.  In addition to any other remedies available to X10 Wireless, failure to
     comply with any terms and conditions of this purchase order may result in
     additional handling charges and expenses being charged to X-10 (USA). In
     any dispute hereunder, whether or not litigation is commenced, the
     prevailing party shall be entitled to its costs and expenses incurred,
     including reasonable attorneys' fees. The rights and remedies herein
     expressly provided shall be in addition to any other rights and remedies
     given by law, including without limitation the right to recover all
     incidental and consequential damages. All warranties, representations and
     guaranties made by X-10 (USA) herein are in addition to any and all express
     or implied warranties provided by law.

11.  In the event of any proceeding, voluntary or involuntary, in bankruptcy or
     insolvency by or against X-10 (USA), including any proceeding under the
     United States bankruptcy laws, or any bankruptcy, insolvency or
     receivership laws of any state or any foreign country, or any political
     subdivision thereof or in the event of the appointment with or without X-10
     (USA)'s consent of a receiver or an assignee for the benefit of creditors,
     X10 Wireless may, at its option, cancel this order as to any undelivered
     portion of the merchandise.

12.  This order and the rights and obligations of the parties hereunder shall be
     determined in accordance with the laws of the State of Washington. If
     litigation arises hereunder or as a consequence of any transaction
     contemplated or resulting from this or either party's performance or breach
     thereof, jurisdiction of and venue in such litigation shall be in the
     Superior Court for the State of Washington for King County, or the United
     States District Court for the Western District of Washington in Seattle, at
     the option of X10 Wireless, and X-10 (USA) hereby consents to such
     jurisdiction and venue. Any award or judgment of any of said courts may be
     entered and enforced in any other domestic or foreign court of competent
     jurisdiction, and shall be awarded full faith and credit.

                                      10.

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