Document:

<PAGE>

                                                                   EXHIBIT 10.29
                                                                   -------------

                          [incuVest L.P. Letterhead]

AXCESS Inc
December 26, 2000
3208 Commander Drive
Carrollton, Texas 75006

            Re:   Demand Note dated September 14, 2000, executed by AXCESS Inc.
                  (the "Company") payable to incuVest LLC. ("incuVest") (the
                  "Note")

Ladies and Gentlemen:

     incuVest and the Company hereby desire to amend the Note such that
$3,300,000 of the outstanding principal balance of the Note shall be convertible
into Series 2000 Non-Voting Preferred Stock.

     1.   Amendment to Note; Conversion of Debt. incuVest and the Company hereby
          --------------------------------------
agree to amend the Note by permitting incuVest to convert $3,300,000 of the
outstanding principal balance of the Note into shares of the Company's Series
2000 Non-Voting Preferred Stock. The certificates of Designations, Preferences,
Powers and Rights of the Series 2000 Non-Voting Preferred Stock is attached
hereto as Exhibit "A." Accordingly incuVest hereby elects to convert $3,300,000
of the Note into 330 shares of the Series 2000 Non-Voting Preferred Stock (the
"Series 2000 Shares"). Subject to Section 3 below, the Company hereby consents
to the conversion and agrees to issue those shares to incuVest.

     2.   Securities Act Legend; Registration Rights.
          ------------------------------------------

          2.1  The Series 2000 Shares (hereinafter collectively, the "Shares")
will not be registered under the Securities Act of 1933, as amended (the
"Securities Act"). Certificates representing the Shares shall bear a restrictive
legend substantially to the effect of the following:

     THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
     SECURITIES ACT OF 1933, OR APPLICABLE STATE SECURITIES LAWS, OR THE
     SECURITIES LAWS OF ANY OTHER JUSRISDICTION. THEY MAY NOT BE SOLD OR
     TRANSFERRED IN THE ABSENSE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER
     THOSE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION THEREFROM. ADDITIONAL
     RESTRICTIONS REGARDING THE TERMS UNDER WHICH THE SHARES REPRESENTED BY THIS
     CERTIFICATE MAY BE CONVERTED INTO VOTING OR NON-VOTING COMMON STOCK OF THE
     COMPANY, AS THE CASE MAY BE, ARE SET FORTH IN THE RESPECTIVE CERTIFICATES
     OF DESIGNATIONS, PREFERENCES, POWERS AND RIGHTS FOR THE SHARES.

     3.   Representations and Warranties by the Company. The Company hereby
          ---------------------------------------------
represents and warrants to incuVest as follows:

          3.1  The Company is a corporation duly organized, validly existing and
in good standing under the laws of the state of Delaware, and has the corporate
power and authority to execute and deliver this agreement, to issue the Shares
on the basis described herein and otherwise to perform its obligations under
this agreement.
<PAGE>

          3.2  The execution and delivery by the Company of this letter
agreement, the issuance of the Shares, and the performance by the Company of its
obligations hereunder, have been duly authorized by all requisite corporation
action on the part of the Company and will not (a) violate any provision of law,
statute, rule or regulation or any order of any court or other agency of
government, (b) conflict with or violate the Certificate of Incorporation or By-
Laws of the Company, in each case as amended, or (c) violate, conflict with or
constitute (with due notice or lapse of time or both) a default under any
indenture, mortgage, lease, license, agreement or other contract or instrument
or result in the creation or imposition of any lien, charge or encumbrance of
any nature upon the properties or assets of the Company or any of its
subsidiaries, in each case if such violation, conflict, default, lien, charge or
encumbrance would have a material adverse effect on the Company.

          3.3  This letter has been duly executed and delivered by the Company
and constitutes the valid and legally binding obligation of the Company,
enforceable in accordance with its terms, except to the extent the
enforceability hereof may be limited by applicable bankruptcy, moratorium or
similar laws affecting the rights of creditors generally.

          3.4  Based in part upon the representations and warranties of incuVest
by, any federal, state or other governmental department, commission, board,
bureau, agency, or instrumentality or any third party is or will be necessary
for the execution and delivery of this agreement by the Company and the issuance
of the Shares hereunder, other that the filing of a notice of sale on Form D
with the Securities and Exchange Commission in accordance with the rules and
regulations thereof under the Securities Act.

          3.5  The Shares are duly authorized, validly issued, fully paid and
non-assessable shares of Series 2000 Non-Voting Preferred Stock and are not
subject to any preemptive rights.

4.   Representations and Warranties of incuVest. incuVest hereby represents and
     ------------------------------------------
warrants to the Company as follows:

          4.1  incuVest is acquiring the Shares for its own account, for
investment and not with a view to the distribution thereof within the meaning of
the Securities Act.

          4.2  incuVest understands that the Shares have not been registered
under the Securities Act, by reason of their issuance by the Company in
transactions exempt from the registration requirements of the Securities Act,
and that the Shares must be held by incuVest indefinitely unless a subsequent
disposition thereof is registered under the Securities Act or is exempt from
such registration.

          4.3  incuVest further understands that the exemption from registration
afforded by Rule 144 (the provisions of which are known to it) promulgated under
the Securities Act depends on the satisfaction of various conditions, and that,
if applicable, Rule 144 may afford the basis for sales only in limited amounts,
after compliance with the holding periods and other provisions thereof.

          4.4  incuVest understands that its investment hereunder involves
substantial risks and represents and warrants that it has made such independent
examinations and investigations of the Company as it has deemed necessary in
making its investment decision, and incuVest further represents and warrants
that it has had sufficient access to the officers, directors, books and records
of the Company as it has deemed necessary to conduct such examination and
investigation and make such investment decision.

          4.5  incuVest is able to bear the economic risk of the investment
contemplated by this agreement and has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and
risks of the investment contemplated by this agreement.

5.   Miscellaneous.
     --------------
<PAGE>

          5.1  This letter agreement constitutes our entire agreement with
respect to the subject matter hereof. This letter agreement may not be modified
or amended of any provision hereof waived except by an instrument in writing
signed by the Company and incuVest.

          5.2  This letter agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns. The rights of incuVest hereunder shall be assignable to any other
holder of the Shares. Except as provided in the immediately preceding sentence,
this agreement and the rights of incuVest hereunder shall not be assignable, and
any purported assignment hereof or thereof shall be void.

          5.3  This letter agreement may be executed in any number of
counterparts and on separate counterparts, each of which shall be an original
instrument, but all of which together shall constitute a single agreement. One
or more signature pages from any counterpart of this letter agreement may be
attached to any other counterpart of this letter agreement without in any way
changing the effect thereof. This letter agreement shall be effective when
executed and delivered by the Company and incuVest.

          5.4  All notices, requests, demands, consents, waivers, or other
communications made hereunder to any party or holder of Shares shall be in
writing and shall be deemed to have been duly given if delivered personally or
sent by nationally-recognized overnight courier, facsimile or by first class
registered or certified mail, return receipt requested, postage prepaid,
addressed to such party at the address set forth below:

          if to the Company, to the Company address
          first set forth above,:

          with a copy to:

          Haynes and Boone, LLP
          901 Main Street, Suite #3100
          Dallas, Texas 75202-3789
          Attention: William Kleinman; and
          if to incuVest, to incuVest at its address
          first set forth above,

or to such other address as the party to whom such communication is to be given
may have furnished to the other party in writing in accordance herewith. All
such notices, requests, demands, consents, waivers or other communications shall
be deemed to have been delivered (a) in the case of personal delivery, on the
date of delivery, (b) if sent by facsimile, on the date sender receives a
confirmation receipt, (c) if sent by overnight courier, on the next business day
following the date sent and (d) in the case of mailing, on the third business
day following such mailing.

          5.5  All representations, warranties and agreements contained herein
shall survive the execution and delivery of this Agreement and the Sale of the
Shares hereunder.
<PAGE>

         If the foregoing correctly sets forth your understanding of our
agreement, please so indicate by signing and returning the enclosed counterpart
of this letter agreement.

                                        Very truly yours,
                                        incuVest L.P.

                                        By:  incuVest LLC.

                                        By: /s/  Robert J. Bertoldi
                                            ---------------------------------
                                            Robert Bertoldi, President

The undersigned agrees with and
Accepts the foregoing terms and provisions
As of the date first above written

AXCESS INC.

By: /s/  James R. Craig
   -----------------------------------------
   James R. Craig, Chief Financial Officer and Secretary<PAGE>

                                                                   EXHIBIT 10.30
                                                                   -------------

                       [Amphion Ventures L.P. Letterhead]

AXCESS Inc.                                                    December 29, 2000
3208 Commander Drive
Dallas, Texas 75006

               Re:  Series A, B and C Preferred Stock Dividends
                    -------------------------------------------

Ladies and Gentlemen:

         Amphion Ventures L.P., a Delaware limited partnership ("Amphion"),
hereby notifies and directs AXCESS Inc. (the "Company") to pay all accrued, but
unpaid dividends which are outstanding as of December 31, 2000 (approximately
$295,355) on the shares of Series A, B and C Convertible Preferred Stock of the
Company held by Amphion as of December 31, 2000 (collectively the "Accrued
Dividends") in kind by issuing to Amphion additional shares of Series A, B or C
Preferred Stock, respectively, of the Company.

         1.   Payment of Accrued Dividends; Issuance of Shares. Amphion hereby
              -------------------------------------------------
directs the Company to issue 4,520 shares of Series A Convertible Preferred
Stock, 4,138 shares of Series B Convertible Preferred Stock and 1,997 shares of
Series C Convertible Preferred Stock in exchange as payment in full for the
Accrued Dividends (the "Shares"). On and as of the date of this letter, the
Accrued Dividends shall automatically be converted and discharged in full and
Amphion shall be the due and valid holder of record of the Shares.

         2.   Securities Act Legend; Registration Rights.
              ------------------------------------------

              2.1   The Shares will not be registered under the Securities Act
of 1933, as amended (the "Securities Act"). Certificates representing the Shares
shall bear a restrictive legend substantially to the effect of the following:

         THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
         SECURITIES ACT OF 1933, OR APPLICABLE STATE SECURITIES LAWS, OR THE
         SECURITIES LAWS OF ANY OTHER JURISDICTION. THEY MAY NOT BE SOLD OR
         TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER
         THOSE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION THEREFROM. ADDITIONAL
         RESTRICTIONS REGARDING THE TERMS UNDER WHICH THE SHARES REPRESENTED BY
         THIS CERTIFICATE MAY BE CONVERTED INTO VOTING OR NON-VOTING COMMON
         STOCK OF THE COMPANY, AS THE CASE MAY BE, ARE SET FORTH IN
<PAGE>

AXCESS Inc.
December 29, 2000
Page 2

         THAT CERTAIN NOTE PAYABLE CONVERSION AGREEMENT EFFECTIVE AS OF DECEMBER
         31, 1998.

                  3.   Representations and Warranties by the Company. The
                       ----------------------------------------------
         Company hereby represents and warrants to Amphion as follows:

                       3.1   The Company is a corporation duly organized,
         validly existing and in good standing under the laws of the State of
         Delaware, and has the corporate power and authority to execute and
         deliver this agreement, to issue the Shares on the basis described
         herein and otherwise to perform its obligations under this agreement.

                       3.2   The execution and delivery by the Company of this
         Agreement, the issuance of the Shares, and the performance by the
         Company of its obligations hereunder, have been duly authorized by all
         requisite corporate action on the part of the Company and will not (a)
         violate any provision of law, statute, rule or regulation or any order
         of any court or other agency of government, (b) conflict with or
         violate the Certificate of Incorporation or By-Laws of the Company, in
         each case as amended, or (c) violate, conflict with or constitute (with
         due notice or lapse of time or both) a default under any indenture,
         mortgage, lease, license, agreement or other contract or instrument or
         result in the creation or imposition of any lien, charge or encumbrance
         of any nature upon the properties or assets of the Company or any of
         its subsidiaries, in each case if such violation, conflict, default,
         lien, charge or encumbrance would have a material adverse effect on the
         Company.

                       3.3   This agreement has been duly executed and delivered
         by the Company and constitutes the valid and legally binding obligation
         of the Company, enforceable in accordance with its terms, except to the
         extent the enforceability hereof may be limited by applicable
         bankruptcy, moratorium or similar laws affecting the rights of
         creditors generally.

                       3.4   Based in part upon the representations and
         warranties of Amphion contained in this agreement, no registration or
         filing with, or consent or approval of, or other action by, any
         federal, state or other governmental department, commission, board,
         bureau, agency or instrumentality or any third party is or will be
         necessary for the execution and delivery of this agreement by the
         Company and the issuance of the Shares hereunder, other than the filing
         of a notice of sale on Form D with the Securities and Exchange
         Commission in accordance with the rules and regulations thereof under
         the Securities Act.

                       3.5   The Shares are duly authorized, validly issued,
         fully paid and non-assessable shares of Series A, B or C Convertible
         Preferred Stock and are not subject to any preemptive rights.
<PAGE>

Axcess Inc.
December 29, 2000
Page 3

                       3.6   The Company shall cause to be delivered to Amphion
         a true copy of the Series A, B or C Convertible Preferred Certificate
         of Designation, which was approved and adopted by the Board of
         Directors of the Company.

                  4.   Representations and Warranties of Amphion. Amphion hereby
                       ------------------------------------------
         represents and warrants to the Company as follows:

                       4.1   Amphion is acquiring the Shares for its own
         account, for investment and not with a view to the distribution thereof
         within the meaning of the Securities Act.

                       4.2   Amphion understands that the Shares have not been
         registered under the Securities Act, by reason of their issuance by the
         Company in transactions exempt from the registration requirements of
         the Securities Act, and that the Shares must be held by Amphion
         indefinitely unless a subsequent disposition thereof is registered
         under the Securities Act or is exempt from such registration.

                       4.3   Amphion further understands that the exemption from
         registration afforded by Rule 144 (the provisions of which are known to
         it) promulgated under the Securities Act depends on the satisfaction of
         various conditions, and that, if applicable, Rule 144 may afford the
         basis for sales only in limited amounts, after compliance with the
         holding periods and other provisions thereof.

                       4.4   Amphion understands that its investment hereunder
         involves substantial risks and represents and warrants that it has made
         such independent examinations and investigations of the Company as it
         has deemed necessary in making its investment decision, and Amphion
         further represents and warrants that it has had sufficient access to
         the officers, directors, books and records of the Company as it has
         deemed necessary to conduct such examination and investigation and make
         such investment decision.

                       4.5   Amphion is able to bear the economic risk of the
         investment contemplated by this agreement and has such knowledge and
         experience in financial and business matters that it is capable of
         evaluating the merits and risks of the investment contemplated by this
         agreement.

                  5.   Miscellaneous.
                       -------------

                  5.1  This agreement constitutes our entire agreement with
respect to the subject matter hereof. This agreement may not be modified or
amended or any provision hereof waived except by an instrument in writing signed
by the Company and Amphion.
<PAGE>

AXCESS Inc.
December 29, 2000
Page 4
                  5.2  This agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns. The rights of Amphion hereunder shall be assignable to any holder of
the Shares. Except as provided in the immediately preceding sentence, this
agreement and the rights of Amphion hereunder shall not be assignable, and any
purported assignment hereof or thereof shall be void.

                  5.3  This Agreement may be executed in any number of
counterparts and on separate counterparts, each of which shall be an original
instrument, but all of which together shall constitute a single agreement. One
or more signature pages from any counterpart of this Agreement may be attached
to any other counterpart of this Agreement without in any way changing the
effect thereof. This Agreement shall be effective when executed and delivered by
the Company and Amphion.

                  5.4  All notices, requests, demands, consents, waivers, or
other communications made hereunder to any party or holder of Shares shall be in
writing and shall be deemed to have been duly given if delivered personally or
sent by nationally-recognized overnight courier, facsimile or by first class
registered or certified mail, return receipt requested, postage prepaid,
addressed to such party at the address set forth below:

                  if to the Company, to the Company at its address
                  first set forth above,:

                  with a copy to:

                  Haynes and Boone, LLP
                  901 Main Street, Suite 3100
                  Dallas, TX  75202-3789
                  Attention: William Kleinman.; and

                  if to Amphion, to Amphion at its address
                  first set forth above,

or to such other address as the party to whom such communication is to be given
may have furnished to the other party in writing in accordance herewith. All
such notices, requests, demands, consents, waivers or other communications shall
be deemed to have been delivered (a) in the case of personal delivery, on the
date of delivery, (b) if sent by facsimile, on the date sender receives a
confirmation confirming receipt, (c) if sent by overnight courier, on the next
business day following the date sent and (iv) in the case of mailing, on the
third business day following such mailing.

                  5.5  All representations, warranties and agreements contained
herein shall survive the execution and delivery of this Agreement and the sale
of the Shares hereunder.

                  5.6  This agreement, and all rights, obligations and
liabilities hereunder, shall be construed according to the laws of the State of
New York applicable to contracts made and to
<PAGE>

AXCESS Inc.
December 29, 2000
Page 5

be performed wholly therein. Any judicial proceeding brought against the Company
to enforce, or otherwise in connection with, this agreement may be brought in
any court of competent jurisdiction in the City of New York, and, by execution
and delivery of this agreement, the Company (i) accepts, generally and
unconditionally, the nonexclusive jurisdiction of such courts and any related
appellate court and irrevocably agrees to be bound by any final judgment
rendered thereby in connection with this agreement and (ii) irrevocably waives
any objection it may now or hereafter have as to the venue of any such
proceeding brought in such a court or that such a court is an inconvenient
forum.

         If the foregoing correctly sets forth your understanding of our
agreement, please so indicate by signing and returning to the Company the
enclosed counterpart of this Agreement.

                              Very truly yours,

                              AMPHION VENTURES L.P.

                              By:  Amphion Partners L.L.C., its general partner

                              By:  /s/ Robert J. Bertoldi
                                  ----------------------------------------------
                                   Robert Bertoldi, President

The undersigned agrees with and
accepts the foregoing terms and provisions
as of the date first above written

AXCESS INC.

By: /s/ James R. Craig
   -----------------------------------------
    James R. Craig, Chief Financial Officer and Secretary

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