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Exhibit 10.8    
    

 
 

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

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

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

1.) TERM/TERMINATION  

A.)
Term 

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

B.)
Termination 

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

2.) AGREEMENT SCOPE  

A.)
Equipment/Parts/Material/Products 

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

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

B.)
WEB PURCHASING SYSTEM 

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

C.)
COVERAGE 

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

1

 

D.) EXPECTATIONS 

	•
	Executive
management commitment

	•
	World
class quality (zero defects)

	•
	Reduced
cycle time

	•
	Reduced
cost

	•
	Technical
/ service support

	•
	Document—product
confidentiality

	•
	Mutual
development of long range plans

	•
	Continuing
involvement / assistance after installation

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

	•
	Responsiveness
to changing conditions, problems, and requests

	•
	Joint
efforts to advance the objectives of the agreement

	•
	Cost
Reduction Strategies

	•
	Electronic
catalog and electronic catalog capabilities

	•
	On-Time
Delivery

	•
	Lead
Time Reduction to meet Benchmarks

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

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

	•
	Inventory
Reduction Programs

	•
	Metrics
and Targets (as defined by Commodity Team)

	•
	Early
Communication on product obsolescence 

3.) QUANTITY  

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

4.) PRICE/PAYMENT TERMS AND SHIPMENT  

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

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

2

 

	b.
	The
FOB point shall be Carrollton, TX. 

Freight
charges shall be paid by Buyer. 

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

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

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

6.) REBATES  

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

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

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

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

7.) MOST FAVORED NATIONS  

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

8.) PRODUCTIVITY IMPROVEMENT  

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

11.) DELIVERY  

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

12.) SUBCONTRACTOR PERFORMANCE  

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

3

 

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

13.) QUALITY  

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

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

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

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

14.) SPECIFICATIONS  

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

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

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

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

16.) INVENTORY  

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

17.) RECORDS AND INSPECTION  

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

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

4

 

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

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

18.) METRICS  

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

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

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

	3.
	Problem
response and resolution

	4.
	Delivery
performance to order delivery schedules

	5.
	Product
quality performance 

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

19.) DOCUMENTS/NOTICES  

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

	A.)
	To: Honeywell

1985
Douglass Drive N

Golden Valley, MN 55422 

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

	B.)
	To: Supplier

3208
Commander Dr.

Carrollton, TX 75006 

20.) ASSIGNMENT  

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

21.) ENTIRETIES  

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

5

 

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

	

Supplier	
 	

Honeywell International
	

By:	
 	

By:
	

Title:	
 	

Title: Commodity Leader
	

Date:	
 	

Date: June xx, 2003

SCHEDULE A  

LEAD TIMES:

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

PRICING LEVEL:  

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

	MODEL
	 	ITEM DESCRIPTION
	 	HON Price
	 	List

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

000.009.011	
 	

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

 	
 	
$	

765
	
AT-132-NR-S

000.010.003	
 	

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

 	
 	
$	

545
	
AT-132-NR-IP

000.010.004	
 	

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

 	
 	
$	

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

800.091.402	
 	

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

 	
 	
$	

495
	
AT-132-A-PW

800.091.400	
 	

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

 	
 	
$	

545
	
At-132-A-PO

800.091.401	
 	

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

 	
 	
$	

605
	
AT-132-A-F

800.091.002	
 	

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

 	
 	
$	

655
	 	 	 	 	 	 	 	 	 

6

 

	
AT-132-A-F8

800.026.009	
 	

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

 	
 	
$	

655
	
AT-132-AF10

800.026.011	
 	

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

 	
 	
$	

715
	
AT-132-VL-S

000.005.038	
 	

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

 	
 	
$	

325
	
AT-132-VL-D

000.005.039	
 	

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

 	
 	
$	

385
	
AT-132-AW

000.005.050	
 	

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

 	
 	
$	

105
	
AT-132-AW-B

800.028.002	
 	

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

 	
 	
$	

55
	
RFID TAGS

STANDARD COLOR IS BEIGE (BGE) UNLESS OTHERWISE SPECIFIED

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

AT-132RF

800.115.001	
 	

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

 	
 	
 	

33.00
	
AT-132PF

800.100.009	
 	

Basic Key Fob Tag — Replaceable Battery—No switch BLACK	
 	
 	

 	
 	
 	

31.00
	
AT-132P

800.100.007	
 	

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

 	
 	
 	

28.00
	
AT-132PF-C

800.100.011	
 	

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

 	
 	
 	

49.00
	
AT-132PB

800.097.013	
 	

Personnel Beacon Tag. ActiveTag with beacon signal.	
 	
 	

 	
 	
 	

42.00
	
AT-132V

800.097.008	
 	

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

 	
 	
 	

28.00
	
AT-132W

800.112.001	
 	

Personnel Wrist Band Tag with Tamper Detect and Beacon	
 	
 	

 	
 	
 	

35.00
	
AT-132V-D	
 	

Vehicle Tag w/ Tamper Alarm & Disable upon removal.	
 	
 	

 	
 	
 	

35.00
	 	 	 	 	 	 	 	 	 

7

 

	
AT-132V-M

800.097.011	
 	

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

 	
 	
 	

47.00
	
AT-132A

800.100.004	
 	

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

 	
 	
 	

33.00
	
AT-132A-T

800.097.003	
 	

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

 	
 	
 	

39.00
	
AT-132AB

800.100.003	
 	

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

 	
 	
 	

47.00
	
AT-132AB-T

800.097.003	
 	

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

 	
 	
 	

50.00
	
AT-132AM

800.097.001	
 	

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

 	
 	
 	

47.00
	
AT-132AM-T

800.097.001	
 	

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

 	
 	
 	

53.00
	
AT-132AMB

800.097.001	
 	

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

 	
 	
 	

61.00
	
AT-132AMB-TA

800.097.001	
 	

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

 	
 	
 	

66.00
	
AT-132AMBA

800.097.001	
 	

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

 	
 	
 	

70.00
	
AT-132AMB-TA

800.097.001	
 	

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

 	
 	
 	

74.00
	
AT-132-L

800.097.002	
 	

Cargo Tag. Loop Mounted with Tamper detect. Black	
 	
 	

 	
 	
 	

26.00
	
AT-132-V-V

304.003.022	
 	

Hook and Loop Tape for tag mounting RFID Software and Accessories	
 	
 	

 	
 	
 	

2.00
	
RFID SOFTWARE AND ACCESSORIES
	
e/OLS

for EBI 400.020.001	
 	

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

 	
 	
 	

4,047.00
	
AT-132-LED

800.061.001	
 	

LED Tag—Installation and diagnostic tool.	
 	
 	

 	
 	
 	

53.00
	 	 	 	 	 	 	 	 	 

8

 

	
AT-132-APS

800.054.001	
 	

Proximity Antenna	
 	
 	

 	
 	
 	

112.00
	
AT-DCR-1

133.001.001	
 	

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

 	
 	
 	

48.00
	
AT-132-AT-PS

141.002.006	
 	

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

 	
 	
 	

48.00
	
AT-132-NR-S-PS

141.002.007	
 	

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

 	
 	
 	

27.00
	
AT-132-NR-IP-PS	
 	

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

 	
 	
 	

45.00
	
LCR55	
 	

LCR Inductance Meter	
 	
 	

 	
 	
 	

656.00

SCHEDULE B  

        Rebate Process 

SCHEDULE C  

        See Schedule C of this agreement 

9

 
 
 

SCHEDULE C
  PURCHASE ORDER TERMS AND CONDITIONS
  BETWEEN HONEYWELL AND SUPPLIER    
    

1.) ACCEPTANCE AND TERMS AND CONDITIONS:  

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

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

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

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

2.) PRICE AND TAXES:  

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

3.) DELIVERY AND DELAYS:  

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

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

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

10

 

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

4.) SUB-ORDERS:  

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

5.) PACKING AND SHIPPING:  

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

6.) INSPECTION AND RECEIPT OF GOODS:  

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

11

 

7.) RISK OF LOSS/PASSAGE OF TITLE:  

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

8.) PAYMENT AND INVOICING:  

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

9.) DRAWINGS:  

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

10.) GENERAL WARRANTY:  

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

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

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

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

12

 

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

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

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

11.) SET-OFF:  

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

12.) CONFIDENTIALITY AND REPRODUCTION RIGHTS:  

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

13.) PATENTS:  

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

14.) INDEMNITY AND INSURANCE:  

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

13

 

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

15.) CHANGES:  

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

16.) TERMINATION FOR DEFAULT:  

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

17.) TERMINATION FOR CONVENIENCE:  

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

18.) RIGHT TO ASSURANCES:  

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

14

 

19.) EXTRA CHARGES:  

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

20.) NON-ASSIGNMENT AND SUBCONTRACTS:  

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

21.) BUYER'S PROPERTY:  

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

22.) COMPLIANCE WITH LAWS:  

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

	

Equal Opportunity	
 	

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

Employment of Veterans	
 	

(Executive Order 11701)
	

Employment of Handicapped	
 	

(Executive Order 11758 as amended by Executive Order 11867)
	

Employment Discrimination Because of Age	
 	

(Executive Order 11141)
	

Utilization of Disadvantaged Business	
 	

(Executive Order 11625 & Public Law 95507) Enterprises

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

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

15

 

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

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

23.) WAIVER:  

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

24.) ENTIRE AGREEMENT AND ORDER OF PRECEDENCE:  

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

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

25.) WAIVER OF LIENS:  

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

26.) FOREIGN PURCHASES:  

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

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

16

 

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

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

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

SCHEDULE E  

        This schedule shall document: 

	•
	Axcess's
Product fulfillment support organization and process

	•
	AXCESS Inc.
Product Fulfillment Support Organization and Process: 

        Purchase
Order Contacts: 

V.P.
Business Development

Production Mgr.

Channel Sales Support Mgr. 

Process: 

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

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

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

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

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

	6.
	Product
is assigned to a shipper for delivery. 

SCHEDULE—F  

Axcess'
Product Sales and Technical support organization and process 

Technical
Support Contacts: 

Technical
Service Hotline: 

Contact: 

Customer
Support Mgr. 

        For
technical support or Return Authorization information contact Tom Beadle. 

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

17

QuickLinks

Exhibit 10.8

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

SCHEDULE C PURCHASE ORDER TERMS AND CONDITIONS BETWEEN HONEYWELL AND SUPPLIERQuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 10.9    
    

 
 

PARTNER AGREEMENT    
    

This
partner agreement (hereafter called AGREEMENT) made this 20th day of December 1999 is entered into by and between Sonitrol Corp., a corporation chartered under the laws of
the State of Virginia with principal place of business located at 211 N. Union St., Suite 350 Alexandria, VA 22314 (hereafter called Sonitrol) and AXCESS Inc. (hereinafter
called AXCESS) with principal place of business located at 3208 Commander, TX 75006. 

WITNESSED:

WHEREAS,
AXCESS is engaged in the manufacture and sale of the PRODUCT as hereinafter defined; and WHEREAS, SONITROL desires to purchase the PRODUCT from AXCESS in order to enhance its product line and
to resell said PRODUCT as a Original Equipment Manufacturer (OEM) under SONITROL' Trade name; and WHEREAS, AXCESS and SONITROL wish to avail themselves of each other's technical
expertise and sales and marketing capabilities in order to increase the sales and distribution of the PRODUCT; and WHEREAS, AXCESS desires to sell to SONITROL for ultimate resale of the PRODUCT; NOW,
THEREFORE, in consideration of the mutual promises and covenants hereinafter contained, the parties agree as follows: 

Article 1—Definitions  

	1.01
	PRODUCT:

Shall mean AXCESS' products as described in Appendix 1 of this AGREEMENT and any derivatives thereof. 

Article 2—Distributorship  

	2.01
	AXCESS
hereby grants to SONITROL the non-exclusive right to sell and distribute the PRODUCT worldwide. 
	2.02
	SONITROL
and AXCESS understand and agree that this AGREEMENT does not constitute or authorize either party to act as the agent or legal representative of the other party for any
purpose whatsoever. This AGREEMENT is an agreement of distributorship and not of agency. Neither party has granted to the other party any right of authority to assume or to create any obligation or
responsibility, express or implied, on behalf of the other party or in the name of the other party, or to bind the other party in any manner whatsoever. 
	2.02
	SONITROL
agrees to publicize the PRODUCT including, without limitation, publication or advertisements, pamphlets and/or other literature. AXCESS will furnish original design/master
copies of all standard pamphlets and other marketing materials to SONITROL free of charge. 
	2.03
	The
prices SONITROL will pay to AXCESS contained in appendix 1 represent the current standard design as generally marketed by AXCESS. SONITROL agrees to pay a negotiated price
differential and NRE for any special designs or component substitutions they may request. Any such negotiated price differential shall be incorporated in appendix 2 by amendment to this
AGREEMENT. Negotiated NRE charges shall be authorized by a SONITROL purchase order referencing this AGREEMENT and negotiated amounts. (NRE excludes changes to increase portfolio of connectivity and/or
enhancements to the general product as well as printing of screen shots directly, pre-alarm tracking and event log.) 
	2.04
	If
desired by SONITROL, AXCESS will create a version of the RXWIN in which the AXCESS icons and logos are replaced with SONITROL logos for a one time charge of $        . The
software will retain the AXCESS copyright embedded in the code. Any such version of RXWIN shall be authorized by an SONITROL purchase order referencing this AGREEMENT. 

1

 

Article 3—SONITROL' Duty to Market the Product  

	3.01
	SONITROL
shall, at all times, use its best efforts to promote, maintain, and market the Product, which obligations shall include, but not be limited to:

	a.
	SONITROL
shall maintain adequate and secure offices and places of business for storage, display, and sale of the PRODUCT. 
	b.
	SONITROL
shall maintain adequate and properly-trained sales and technical support staff qualified to sell, market, install and service the PRODUCT and to provide technical advise and
support to end users.

	3.02
	SONITROL
acknowledges that one of its primary obligations under this AGREEMENT is to develop and expand the market for the PRODUCT and shall direct its promotional and marketing
efforts to that end. Failure to actively market the PRODUCT in the TERRITORY may result in termination of the agreement.

	3.03
	In
addition Sonitrol will: 
	a.
	Make
Axcess Inc. products available to the entire Sonitrol network 
	b.
	Purchase
the Prism Video SDK (Cost $        ) in order to make VSLE (Prism video compression) the exclusive video codec in the Sonitrol Sonnt central monitoring software platform 
	c.
	Pay
Axcess Inc. a one time per seat license fee based upon each user of the Prism features within the Sonitrol Sonnt central monitoring software platform (see 13.02a) 
	d.
	Appoint
a Prism Video corporate "ombudsman" to aggressively manage project activities between the two companies. 
	e.
	Create
and distribute Sonitrol collateral material highlighting Axcess Inc's capabilities as a module available as part of Sonitrol's central station software system and how the
Sonitrol organization can use and acquire it. 
	f.
	Develop
training program for Sonitrol network that gets the message out promptly and leaves the Dealer/office prepared to sell and to support new business. (Note: plan on a mix of;
regional sessions with attendance from dealers/offices in a defined region, local sessions if a branch or Dealer has active prospects that require Axcess Inc. regional sales, or a combination
of both. 
	g.
	Develop
operations guide for central station managers to use when installing and using Prism Video technology. Axcess agrees to support the development effort as requested by Sonitrol. 
	h.
	Create
an Axcess Inc. Prism Video sales incentive component to the Sonitrol sales incentive plan. 
	i.
	Develop
and support regional and national demo sites that can be used by the Sonitrol network for end-user. 
	j.
	Offer
special demo kits to all Sonitrol offices to facilitate professional and consistent representation of the products and it's application. 
	k.
	Provide
Axcess Inc. presence at all Sonitrol national conferences to which vendors are invited in order to present product updates, announcements, etc. 
	l.
	Provide
Axcess Inc. with a corporate directory of Sonitrol dealers and primary contact points in order to deliver manuals and to aid communications with entire network. 

Article 4—Delivery  

	4.01
	During
the term of this AGREEMENT, any purchase of the PRODUCT by SONITROL from AXCESS shall be in accordance with the terms and conditions as defined in this AGREEMENT. All
purchases by SONITROL shall be contained on a SONITROL purchase order form. Unless otherwise agreed AXCESS shall sell the products to SONITROL and shall be FAC AXCESS' shipping point. All expenses
relating to the movement of the product beyond the shipping point 

2

 

shall
be the responsibility of SONITROL including all freight charges, local, state and federal excise taxes, and the risk of loss from the shipping point. 

	4.02
	Title
shall pass to SONITROL in accordance with Article 4. 

Article 5—Payment  

	5.01
	Payment
terms are     days from date of AXCESS' invoice. 
	5.02
	Payment
shall be made from SONITROL to AXCESS in U.S. dollars. 

Article 6—Price  

	6.01
	The
price list for the PRODUCTS is enclosed in Appendix 1. AXCESS holds the right to change price list and included items providing it gives Sonitrol
     days notice. Pricing for SDK (and related seat licensing for central station) is noted in 13.02a, and for private label in 2.05. 

Article 7—Resale  

	7.01
	SONITROL
may resell the PRODUCT for its own account at any time during the term of this AGREEMENT, at any price, and on such terms and conditions as SONITROL, in its sole discretion,
may determine to be proper but, in the normal course of business, SONITROL shall refrain from selling the PRODUCT at pricing less than defined in Article 6 of this AGREEMENT. 

Article 8—Secrecy  

	8.01
	Performance
under this AGREEMENT may require the disclosure to one or another of proprietary information.

	8.02
	Each
party acknowledges that certain manufacturing processes, devices, techniques, plans, methods, drawings, blueprints, reproductions, calculations, computer programs, algorithms,
technical know-how, financial, sales and marketing data to be disclosed hereunder (hereinafter referred to as "Information") were developed by the other party at great expense and over
lengthy periods of time, are secret and confidential, are unique and constitute the exclusive property and trade secrets of the other party and that use by either party of the Information of the other
party for any purpose other than performance under this AGREEMENT is not permitted, would be wrongful and would cause irreparable injury to the other party.

	8.03
	In
consideration for receiving such Information, the recipient party agrees to use the Information only for the purpose of this AGREEMENT, to disclose the Information only to its
employees, representatives or agents who have a need-to-know for that purpose and who are bound to confidentiality, and to maintain the Information in confidence using the same
degree of care to avoid disclosure thereof as that party employs with respect to its own Information of like importance, but in no case less than reasonable care.

	8.04
	This
AGREEMENT shall pose no obligation upon either party with respect to any portion of the received Information which:

	(i)
	is
possessed by the recipient party at the time of the disclosure as evidenced by written or other tangible records, 
	(ii)
	is
independently developed by the recipient party, provided that the person or persons developing same have not had access to the Information furnished hereunder, 
	(iii)
	is
hereafter rightfully furnished to the recipient party by a third party without restriction on disclosure, 
	(iv)
	is
now, or which hereafter, through no act or failure to act on the recipient party's part becomes generally known or available, 

3

 

	(v)
	is
disclosed in writing and not conspicuously marked "PROPRIETARY" or "CONFIDENTIAL" or some similar notation at the time of disclosure, 
	(vi)
	is
disclosed orally and not identified to the recipient party in writing as "PROPRIETARY" within thirty (30) calendar days following the oral disclosure, 
	(vii)
	is
released from confidentiality in writing by submitting party, or 
	(viii)
	was
properly exchanged and five (5) years from the date of disclosure have subsequently elapsed.

	8.05.
	The
recipient party agrees to promptly return or certify destruction of all copies of any disclosed Information and of any additional documents in any media containing any of the
disclosed Information, upon termination of this AGREEMENT or upon written request of the other party; except, one copy may be retained solely for record purposes. 

Article 9—Term of AGREEMENT  

	9.01
	This
AGREEMENT shall remain and continue in effect for three (3) years from the date first written and shall be automatically renewed each year thereafter for an additional
period of one year unless terminated as provided for in Article 10 of this agreement. 

Article 10—Termination of AGREEMENT  

	10.01
	Either
party may terminate this AGREEMENT for any or no reason by giving a written notice of termination to the other party effective ninety (90) days from date of notice.

	10.02
	Either
party may terminate this AGREEMENT by giving a written notice of termination to the other party which shall be effective upon receipt if:

	a.
	The
other party becomes insolvent, or any voluntary or involuntary petition in bankruptcy, or any similar relief is filed by, or against the other party; or

	b.
	The
other party defaults in payment of sums due under this AGREEMENT or otherwise defaults in any of the provisions of this AGREEMENT and does not make the payment and/or does not
remedy the default within thirty (30) days after written notice is given requesting said party to make the payment or to remedy the default. 

Article 11—Effect of Termination  

	11.01
	Termination
of this AGREEMENT under Article 9 or Article 10 for any other reason shall have the following effect:

	a.
	Termination
of this AGREEMENT howsoever caused shall not affect any obligations of either party to the other, rights, or liabilities accrued under this AGREEMENT prior to the date of
termination. 
	b.
	No
severance or termination compensation damages or other damages of the nature of goodwill or otherwise shall be payable by either party to the other. 
	c.
	Each
party shall dispose of any proprietary information of the other party in accordance with article 8.05 of this AGREEMENT.

	d.
	SONITROL
shall be entitled following termination hereof to sell, distribute, or dispose of any PRODUCTS in its inventory or AXCESS products that are available for re-sale
from third party vendors and SONITROL will be allowed to continue to use the software integrated into the Sonnt central station, the AXCESS SDK, video codec and other AXCESS receiving software. 

4

 

Article 12—AXCESS' Warranty  

	12.01
	AXCESS
agrees that the PRODUCT sold to SONITROL under the terms of this AGREEMENT shall be free from defects in material and workmanship at the time the PRODUCT is delivered to
SONITROL, and for a period of 12 or 24 months thereafter as defined in appendix 3. Within the warranty period, AXCESS shall, at its own expense, repair or replace the defective PRODUCT.
The repaired or replaced PRODUCT shall have the same warranty period as the original provided PRODUCT. AXCESS will carry out warranty work at its facility and SONITROL shall pay for transportation of
the PRODUCT to AXCESS and for return transportation of the PRODUCT if no problem is found by the AXCESS repair facility. AXCESS will pay for return transportation of any products found to be in need
of repair during the warranty period. 

Article 13—Intellectual Property Rights  

	13.01
	SONITROL
and AXCESS expressly acknowledge that all of the other party's Trademarks are the exclusive property of the other party, and that each party has and shall have no right
title or interest in the other party's Trademarks or any goodwill related thereto during or after the term of this AGREEMENT.

	13.02
	AXCESS
licenses to Sonitrol (for integration with it's central station monitoring platform) it's proprietary video codec and the use of the software developers kit (SDK), including
derivatives, updates, modifications, and related documentation (hereafter "AXCESS SOFTWARE") to SONITROL as follows:

	a.
	Grant
of License. AXCESS grants to SONITROL a non-exclusive, non-transferable license to use the AXCESS SOFTWARE for testing, demonstration, advertising, or any
other use to the extent that such use is for the purpose of implementing this AGREEMENT. AXCESS also grants to SONITROL a license to distribute and sublicense AXCESS SOFTWARE in conjunction with the
resale of PRODUCTS to SONITROL customers. Title to AXCESS SOFTWARE is not transferred by this license; ownership and title to the AXCESS SOFTWARE is retained by AXCESS. Consideration is defined as
$        for SDK, plus $      per copy of the finished product sold and or used in a Sonitrol central station or by a Sonitrol customer. 
	b.
	Copyright.
AXCESS SOFTWARE is owned by AXCESS and is protected by United States copyright laws and international treaty provisions. SONITROL may make copies of AXCESS SOFTWARE for its
internal use and for providing product support to its customers. SONITROL may also copy AXCESS SOFTWARE for sale and distribution to its customers providing that SONITROL pays to AXCESS the license
fee equivalent to the master distributor price of the RXWIN software package. Derivation or attempted derivation of the source code or structure of all or any portion of the Software by reverse
engineering, decompiling, disassembly, or any other means and/or creating derivative works based on the Software are prohibited. Software code and related documentation are confidential to AXCESS and
are subject to the provisions of Article 8 of this AGREEMENT. 

Article 14—Obligations of AXCESS  

	14.01
	Upon
request AXCESS shall provide SONITROL with information and details concerning advertising and promotion used by AXCESS with respect to the PRODUCT.

	14.02
	Upon
request AXCESS shall provide SONITROL with all written information regarding the PRODUCT (brochures, system descriptions, installation descriptions, handbooks, etc.) on
electronic media if available. Likewise drawings and pictures should be provided on electronic media, if available. 

5

 
	14.03
	AXCESS
shall provide repair services for out-of-warranty PRODUCT repairs at its standard prevailing rates for repair services or $    per hour
whichever is less.

	14.04
	AXCESS
will provide a two (2) day product training course to be scheduled within six (6) months of signing this agreement at AXCESS' facility in Carrollton, Texas for
up to ten (10) persons without cost to SONITROL. SONITROL will pay all expenses incurred by SONITROL personnel for travel and living cost. The course will include applications engineering,
operation, installation, maintenance and diagnostic procedures of the Products. If such additional training course is held at a SONITROL facility, SONITROL will reimburse AXCESS for actual reasonable
travel and living expenses incurred by the AXCESS instructors in addition to the standard course fee of $1,000.00 per day.

	14.05
	All
technical advice, recommendations, and information provided by AXCESS are intended for use only by persons having the requisite skill. AXCESS will accept no liability whatsoever
for the level of expertise attained by SONITROL' staff. 
	14.06
	In
addition, AXCESS agrees to the following

	a.
	Master
Distributor pricing to Sonitrol Corp. for all products listed on the published AXCESS Inc. price list. 
	b.
	Updates
via email (to defined contact) when applicable. 
	c.
	A
Dealer/distributor resource manual and CD (with applicable video files and presentations) to all Sonitrol dealers and offices 
	d.
	Updates
to manual as applicable 
	e.
	Point
of contact for sales and marketing 
	f.
	Tech
support escalation procedures 
	g.
	Product
development and integration 
	h.
	Sales
Training and Support: At it's discretion AXCESS Inc. is prepared to provide sales training necessary to ensure success of the product launch and ongoing sales activity.
Working with our contact person, we will plan on a mix of; regional sessions with attendance from dealers/offices in a defined region, local sessions if a branch or Dealer has active prospects that
require Axcess Inc. regional sales, or a combination of both. 
	i.
	Professional
representation to all Sonitrol national events in order to further educate and communicate the Axcess Inc. product line 

Article 15—Notices  

	15.01
	Any
notice, consent, demand, or other communication concerning rights or obligations under this AGREEMENT given or required, shall be in writing. They will be deemed given when:
(a) delivered personally; (b) sent by confirmed telex or facsimile; (c) sent by commercial overnight courier with written verification of receipt; or (d) sent by registered
or certified mail, return receipt requested, postage prepaid. 

	 	 	a.	 	If to SONITROL, mail to:	 	            , VP Logistics

Sonitrol Corporation

211 N. Union Street, Suite 350

Alexandria, VA 22314
	

 	
 	

 	
 	

If to AXCESS, Inc., mail to:	
 	

            , Director of Products

AXCESS, Inc.

3208 Commander Drive

Carrollton, TX 75006

6

 

Article 16—Applicable Law  

	16.01
	This
AGREEMENT shall be governed and construed in accordance with the Laws of the State of Virginia. 

Article 17—Force Majeur  

	17.01
	Neither
party will be liable for any failure or delay in performance under this AGREEMENT, which might be due, in whole or in part, directly or indirectly, to any contingency,
delay, failure, or cause of, any nature beyond the reasonable control of such party (Force Majeure), including, without in any way limiting the generality of the foregoing, fire explosion, earthquake,
storm, flood or other weather, unavailability of necessary utilities or raw materials, strike, lockout, unavailability of components, activities of a combination of workmen or other labor
difficulties, war, insurrection, riot, act of God or the public enemy, law, act, order, export control regulation, proclamation, decree, regulation, ordinance, or instructions of Government or other
public authorities, or judgment of decree of a court of competent jurisdiction (not arising out of breach by such party of this Agreement). In the event of the happening of such a cause, the party
whose performance is so affected will give prompt, written notice to the other party, stating the period of time the same is expected to continue. If AXCESS' production is curtailed for any of the
reasons set forth in this section, AXCESS may allocate its production among its customers in a manner AXCESS deems, in its sole discretion, to be fair and reasonable.

	17.02
	In
the event of the continuance of Force Majeur as defined above for a period in excess of 6 months, the parties shall meet to review the situation and jointly decide on a
course of action. If the parties are unable to decide within 28 days of the end of such period, either party may serve notice terminating the AGREEMENT whereupon the AGREEMENT shall be
terminated, and a settlement agreement shall be concluded by the parties setting out the amounts due to AXCESS or SONITROL. 

Article 18—Miscellaneous  

	18.01
	If,
for any reason whatsoever, any Paragraph of this AGREEMENT is found to be invalid, such findings shall not invalidate any other provision of this AGREEMENT.

	18.02
	Each
of the parties hereto shall take such other action and shall execute and deliver to the other party hereto such other instruments as may be reasonably required in connection
with the consummation of the transactions covered hereby.

	18.03
	Neither
this AGREEMENT nor any interest herein may be assigned, in whole or in part, by either party hereto without the prior written consent of the other party hereto, except that
without securing such prior consent, either party hereto shall have the right to assign this AGREEMENT to any successor or to such party by way of merger or consolidation or the acquisition of
substantially all of the entire business and assets of such party relating to the subject matter of this AGREEMENT, provided that such successor shall expressly assume all of the obligations and
liabilities of such party under this AGREEMENT, and provided further, that such party shall remain liable and responsible to the other party hereto for the performance and observance of all such
obligations

	18.04
	With
the exception of injunctive relief sought by either party, any dispute or claim arising out of or relating to this Agreement, or the breach thereof, that cannot be resolved
between AXCESS and SONITROL shall be settled by binding arbitration. The prevailing party shall be entitled to reasonable costs and attorney fees. Judgment upon any award may be entered in any court
having jurisdiction thereof. 

7

 
	18.05
	PRODUCT
LIABILITY; MUTUAL INDEMNIFICATION. In the event SONITROL receives a claim that a PRODUCT or any component thereof has caused personal injury or damage to property of others,
SONITROL shall immediately notify AXCESS in writing of all such claims. AXCESS shall be authorized the sole power to defend or settle such claims and shall indemnify and hold SONITROL harmless for any
costs or damages as a result of the defective PRODUCT or the negligence of AXCESS, its agents, or its employees. 

SONITROL
shall hold harmless and indemnify AXCESS from and against all claims, demands, losses and liability arising out of damage to property or injury to persons occasioned by or in connection with
any SONITROL modification to a PRODUCT, use of a PRODUCT with or in combination with SONITROL products, and acts or omissions of SONITROL and its agents and employees. 

	18.06
	INFRINGEMENT
CLAIMS, MUTUAL INDEMNIFICATION. AXCESS agrees to indemnify and hold harmless SONITROL, its officers, directors, employees, agents, and customers against any claims,
actions or demands alleging that the manufacture or distribution of the PRODUCTS infringe any copyrights, patents, trade secrets, mask works or other proprietary rights of any third parties arising
under United States law. To terminate such obligation, AXCESS may, at its option: (1) modify or replace the PRODUCTS with those which are functionally equivalent; (2) obtain a license
for the SONITROL to continue the use and distribution of the PRODUCT; or (3) accept the return of the PRODUCTS held by SONITROL or its customers and return the amounts paid by SONITROL for the
PRODUCTS. The foregoing states SONITROL' sole and exclusive remedy with respect to claims of infringement of proprietary rights of any kind. This obligation is contingent upon: (1) SONITROL
giving prompt written notice to AXCESS of any such claim, action or demand; (2) SONITROL allowing AXCESS to control any defense and related settlement negotiations; and (3) SONITROL
providing reasonable assistance, at its expense, in any defense. AXCESS shall have no obligation hereunder for any such claims, actions or demands which result from: (1) SONITROL' or its
customers use of the PRODUCTS in a combination which violates the rights of third parties or in a combination with materials or products not supplied by AXCESS; (2) the modification or
attempted modification the PRODUCTS other than as authorized by AXCESS or the use or distribution of such modified PRODUCTS; (3) the use of other than the latest version of the Software or
Hardware of AXCESS, if such claim would have been avoided by the use of such later release; or (4) the sale or use of PRODUCTS which were designed in accordance with SONITROL' specifications. 

SONITROL
agrees to indemnify and hold AXCESS, it officers, directors, employees and agents harmless against any claim, actions or demands alleging that the development, manufacture or distribution of
the PRODUCTS infringe on any copyrights, patents, trade secrets, make works or other third party proprietary rights based on: (1) SONITROL' use of the Products in a combination which violates
the rights of third parties or in a combination with materials or products not supplied by AXCESS; (2) the modification or attempted modification of the PRODUCT other than as authorized by
AXCESS or the use or distribution of such modified Products; (3) the use of other than the latest version of the Software or Hardware of AXCESS, if such claim would have been avoided by the use
of such later release; or (4) the use, manufacturing or sale of Products which were designed in accordance with SONITROL' specifications. The obligation is contingent upon: (1) AXCESS
giving prompt written notice to SONITROL of any such claim, action or demand; (2) AXCESS allowing SONITROL to control the defense and related settlement negotiations; and (3) AXCESS
providing reasonable assistance, at is expense, in the defense 

8

 

IN
WITNESS WHEREOF, each of the parties hereto has caused this AGREEMENT to be duly executed to be effective as of the date first-above written. 

	For AXCESS, Inc.
	

 	
 	

 
	/s/  ALLAN GRIEBENOW      
 Allan Griebenow, President & CEO	 	Date: 12/23/99

	

 	
 	

 
	For Sonitrol Corporation
	

 	
 	

 
	/s/  WILLIAM A. MEARES      
 William A. Meares, COO	 	Date: 12/20/99

9

 

APPENDIX #2  

	1.	 	Dealer Rollout Special	 	$            	 	 
	 	 	Includes:	 	 	 	 
	 	 	Qty.1    RX6000-MTX

Qty.1    MM-100

Qty.1    RXWIN	 	 	 	 
	

Offer Valid until June 30, 2000.

10

 

APPENDIX #3  

Product warranty periods:

TX-300/800-XXX units    12 months

TX300/800 DVR units    24 months

MM-100/300 units    24 months

LC-100 (LANcam) units    24 months

11

QuickLinks

Exhibit 10.9

PARTNER AGREEMENT

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