Document:

exv10w9

 

EXHIBIT 10.9

Borrowed Employees and Advisory Agreement

This Borrowed Employees and Advisory Agreement is made effective as of March 2006, between
Amphion Innovations US Inc. (“AI”) and Axcess International, Inc. (“AXCESS”). AXCESS is publicly
traded on the Bulletin Board as OTCBB: AXSI. AXCESS is a provider of hardware and software
solutions in the security and transportation industry. AI will assist in a variety of areas
relating to the investor relations and technology research for AXCESS under the following terms and
conditions:

1. Use of AI Employees. AXCESS requires certain unique and specialized services as
described in section 2 below, to operate and maintain its business. However, the rendering of such
services does not rise to the level of AXCESS hiring full time employees. AI hereby agrees to
allow AXCESS to utilize, on an “as needed” part-time basis, three of its current employees who have
the ability to provide the services needed by AXCESS. It is understood and agreed by the parties
that the compensation described herein shall be all the compensation required to be paid by AXCESS
for use of the AI employees and AXCESS, under no circumstances, will pay the employees directly or
be responsible for payment of any withholding taxes or benefits. It is further understood and
agreed that neither party, for any purpose, will make any claim that the AI employees are employees
of AXCESS.

2. Services of AI.

     For the Term of this Agreement (as hereinafter defined), AI will work cooperatively with
AXCESS to assist in the growth of AXCESS as set forth below. AI will provide AXCESS with the use
of employees as described above who will be dedicated, on a part-time basis, to provide these
services, in addition to the services of Robert Bertoldi and Richard Morgan. AI will provide
AXCESS the following:

	 	a.	 	Identification, evaluation and advice on a variety of options for AXCESS to
undertake to enhance its current technology offerings, including sources of
complementary technology and technology partnering;
	 
	 	b.	 	Investor relations services, including becoming the initial point of contact for
the Preferred Equity Investors, providing both materials and information to interested
parties;
	 
	 	c.	 	Advice and assistance with strategies relating to asset development, asset
enhancement and maximization of asset utilization, including those associated with any
intellectual property assets.

     AI will provide a written report to the Chairman of the Audit Committee, with a copy to the
President and CEO of Axcess, outlining the services provided to Axcess and results from the
previous month. AI will have the opportunity to present to the Audit Committee on a quarterly
basis if they so desire.

3. Non-Exclusivity of Relationship.

     It is understood and acknowledged by AXCESS that AI presently has, and anticipates having
throughout the Term, other clients for which it performs the same or similar services to those to
be performed in accordance herewith, and that AI shall be under no obligation to restrict its
ability in any way to perform services for any other client-companies.

     It is understood that AXCESS, from time to time, will employ investment bankers, analysts,
finders, brokers, public relations firms, and consultants to assist AXCESS. This Agreement shall
only refer to those opportunities and services introduced by AI, or introduced by AXCESS for the
assistance and help from AI.

4. Term of Agreement.

     The Agreement shall be effective for a period of twelve (12) months, commencing on the date
first appearing above (the “Term of Agreement”) and will renew on an annual basis unless either
party notifies the other in writing, not less than 30 days before the end of the term, of their
desire to terminate the agreement.

5. Compensation to AI from AXCESS.

     In consideration for the services rendered by AI to AXCESS pursuant to the Agreement (and in
addition to the expenses provided for in Paragraph 6 hereof), and throughout the Term of Agreement,
AXCESS shall compensate AI as follows:

Monthly Retainer and Additional Compensation. AI shall be compensated at the
rate of $10,000 per month payable in advance on the first day of each month. This
cash payment will automatically be suspended for any month in which AXCESS’ cash
position falls below $500,000 on the first day of the month with an additional month
being added on to the end of the contract to compensate AI for their services.

6. Expenses.

     It is anticipated that expenses incurred in the fulfillment in connection with the services
performed by AI pursuant to this Agreement shall be addressed on a case by case basis and
pre-approved by an officer of AXCESS.

 

 

7. Role of Finder.

     In connection with any Financing Transactions hereunder, AXCESS acknowledges that AI is not a
registered broker-dealer under Section 15A of the U.S. Securities Exchange Act of 1934, or any
similar state law, and that AI cannot, and shall not be required hereunder to, engage in the offer
or sale of securities for or on behalf of AXCESS. While AI has pre-existing relationships and
contacts with various investors, registered broker-dealers and investment funds, AI’s participation
in any actual or proposed offer or sale of Company securities shall be limited to that of an
advisor to AXCESS.

     AXCESS acknowledges and agrees that the solicitation and consummation of any purchases of
AXCESS’ securities shall be handled by AXCESS or one or more NASD member firms engaged by AXCESS
for such purposes.

8. Third Party Fees.

     Any third party fees payable in connection with the services described shall be the exclusive
responsibility of, and shall be paid by AI.

9. Limitation on Use of Certain Information.

     AXCESS acknowledges that all services and advice (written or oral) provided by AI to AXCESS in
connection with the Agreement are intended solely for the benefit and use of AXCESS in considering
the subject matter to which they relate, and AXCESS agrees that no person or entity (including any
shareholders of AXCESS) other than AXCESS shall be entitled or advised to make use of or rely upon
the advice of AI provided pursuant hereto. In any event, neither AXCESS nor any other parties may
use the AI name in any public references, press releases or public filings in connection with
AXCESS without AI’s prior written consent.

10. Reliance by AI on Accuracy of Information; 12(b) 5 Representation.

     AXCESS recognizes and acknowledges that, in advising AXCESS and in fulfilling the Agreement
hereunder, AI will use and rely on data, material and other information furnished to AI by AXCESS.
AXCESS agrees that AI may do so without independently verifying the accuracy or completeness of
such data, material or other information. AXCESS represents and warrants that any such data,
material or information shall be true and accurate and shall not, as of the time communicated,
contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.

11. Confidentiality.

     If any of the data, material or other information is non-public or confidential when revealed
or otherwise shared with representatives of AI, and identified in writing as such at the time it is
revealed or shared (“Confidential Information”), AI and its officers, directors, employees, agents
and associates shall hold all Confidential Information in complete and strict confidence and will
not, without prior written consent of AXCESS, in each instance, disclose any Confidential
Information, in whole or part, to any other person or for any other purpose than is expressly
approved by AXCESS in writing. To the extent that AXCESS in writing approves disclosure of
Confidential Information, excepting information required to be disclosed by legal process, law or
regulation, AI agrees that each party or individual to whom such disclosure is made shall be
informed of the confidential nature of the information disclosed and be obligated to sign standard
non-disclosure agreements.

12. Indemnification.

     Each party (an “Indemnifying Party”) hereby agrees to indemnify and hold the other party and
its respective affiliates, directors, officers, employees and agents (collectively, the
“Indemnified Parties”) harmless from, and to reimburse each of the Indemnified Parties for, any
loss, damage, deficiency, claim, obligation, suit, action, fee, cost or expense of any nature
whatsoever (including, but not limited to, reasonable attorney’s fees and costs) arising out of,
based upon or resulting from any breach of any of the representations, warranties, covenants,
agreements or undertakings of the Indemnifying Party contained in or made pursuant to this
Agreement Letter.

13. Nature of Agreement; Limitation on Authority of AI to Bind.

     AI shall perform its services hereunder as an independent contractor and not as an employee of
AXCESS or an affiliate thereof. It is expressly understood and agreed to by the parties hereto
that AI shall have no authority to act for, represent or bind AXCESS or any affiliate thereof in
any manner, except as may be agreed to expressly by AXCESS in writing from time to time.

14. Miscellaneous.

	 	(a)	 	This Agreement constitutes the entire agreement and understanding
of the parties hereto, and supersedes any and all previous agreements and
understandings, whether oral or written, between the parties with respect to the
matters set forth herein.

 

 

	 	(b)	 	Any notice or communication permitted or required hereunder shall
be in writing and shall be deemed sufficiently given if hand-delivered via
courier or overnight service or sent (i) postage prepaid by registered mail,
return receipt requested, to the respective parties as set forth below, or to
such other address as either party may notify the other of in writing:

	 	 	 	 	 
	 

	 	If to AI, Inc. to:
	 	Robert J. Bertoldi, President
	 

	 	 	 	Amphion Innovations US Inc.
	 

	 	 	 	330 Madison Avenue, 31st Floor
	 

	 	 	 	New York, NY 10017
	 

	 	 	 	212-210-6201
	 
	 	 	 	 
	 

	 	If to AXCESS, to:
	 	Allan Griebenow, CEO
	 

	 	 	 	Axcess International, Inc.
	 

	 	 	 	3280 Commander Drive
	 

	 	 	 	Carrolton, TX 75006
	 

	 	 	 	Direct: 972-250-5978

            (c) This Agreement shall be binding upon and inure to the benefit of each of the parties
hereto and their respective successors, legal representatives and assigns.

            (d) AXCESS represents that it has the power to enter into this Agreement and to carry out its
obligations hereunder. This Agreement constitutes the valid and binding obligation of AXCESS and
is enforceable in accordance with its terms. AXCESS further represents that this Agreement does
not conflict with or breach any agreement to which it is subject or by which it is bound.

            (e) This Agreement may be executed in any number of counterparts, each of which together shall
constitute one and the same original document.

            (f) No provision of this Agreement may be amended, modified or waived, except in writing and
signed by all of the parties hereto.

            (g) This Agreement shall be construed in accordance with and governed by the laws of the State
of Texas, without giving effect to its conflict of law principles. The parties hereby agree that
any dispute between them arising out of or in connection with this Agreement shall be adjudicated
before a court located in Collin County, Texas, and they hereby submit to the exclusive
jurisdiction of the courts of the State of Texas.

            (h) AXCESS hereby acknowledges that it shall bear the burden of proof in any action or
proceeding involving a claim by AI to any Additional Compensation due hereunder arising out of any
Compensable Event involving a third party claimed by AI to have been originally introduced to
AXCESS by AI.

            (i) Whenever used in this agreement, Company shall include its officers, directors, employees,
agents, associates, affiliates, subsidiaries, successors and assigns.

          If the foregoing correctly sets forth the understanding between AI and AXCESS with respect to
the foregoing, please so indicate by signing in the place provided below, at which time this
Agreement shall become a binding agreement.

	 	 	 	 	 
	 	Axcess International, Inc.

 	 
	 	By:  	 	 
	 	 	Allan Griebenow 	 
	 	 	President 	 
	 

Accepted and Agreed:

Amphion Innovations US Inc.

                                        

By Robert J. Bertoldi

Date:exv10w10

 

EXHIBIT 10.10

2005 Preferred Stock Purchase Agreement

Ladies and Gentlemen:

     This Agreement sets forth the terms and conditions on which Axcess International Inc., a
Delaware Corporation, of 3208 Commander Drive, Carrollton, Texas, 75006 (the “Company”) will issue
and sell to                     , of                                         (the “Purchaser”) shares of Series 2005
Preferred Stock of the Company, par value $0.01 per share (the “Preferred”) and Series 2005
Warrants (the “Warrants”) which provide the right to purchase shares of the Company’s Common Stock.

     1. Type of Security and Purchase Price. The Purchaser hereby agrees to subscribe for
and purchase from the Company, and the Company hereby agrees to issue and sell to the Purchaser
887,671 (eight hundred and eighty-seven thousand six hundred and seventy-one) Preferred Shares and
an equal number of Warrants. The purchase price shall be Seven Hundred and Fifty-Four Thousand
Five Hundred and Twenty US Dollars and Fifty-Five cents ($754,520.55) payable in cash. Preferred
shares shall bear no dividends. The Warrants shall have an exercise life of five (5) years
following closing and the exercise price of the warrants is One Dollar and Fifty Cents ($1.50).
Each Warrant will be callable by the Company if and when the Company’s common stock share price
exceeds $3.00 per share for 20 consecutive trading days. The purchase and sale shall be effective
as of December 22, 2005 (the “Effective Date”).

     2. Purchase Dates and Delivery of Shares. The Company wishes to close on the sale
during December of 2005. Upon its receipt of the purchase price, the Company shall issue and sell
to the Purchaser the number of Preferred and Warrants based on paragraph 1 above. On and as of the
Effective Date, the Company shall execute and deliver to the Purchaser stock and warrant
certificates in proper form representing the Shares.

     3. Conversion and Lock-up of Series 2004 Preferred Stock to Common Stock. When the
Company achieves a full quarter of profitability (EBIDTA) or when the share price surpasses Two
Dollars and Fifteen Cents ($2.15) based on the average closing price for the 20 trading days
preceding, the preferred shares shall be converted on a one to one basis into common stock, $0.01
par value per share. Purchaser shall not sell more than 1/6 of the common shares issued to them in
connection with this offering in any calendar month.

     4. Securities Act Legend; Registration Rights.

          4.1 The Shares will not be registered under the Securities Act of 1933, as amended (the
“Securities Act”). Prior to registration, 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 NON-VOTING COMMON STOCK OF THE
COMPANY ARE SET FORTH IN THE CERTIFICATE OF DESIGNATIONS, PREFERENCES, POWERS AND
RIGHTS OF THE SERIES 2003 PREFERRED STOCK.

          4.2 The Company has committed to register the Common Stock Underlying the Series 2005
Preferred Stock and Warrants under Form SB-2 (or comparable form, the “Registration Statement”)
within 30 days of the date of the last closing of the 2005 Preferred Equity and to make its best
efforts to have the Registration Statement declared effective at the earliest possible date.

     5. Representations and Warranties by the Company. The Company hereby represents and
warrants to the Purchaser as follows:

          5.1 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.

          5.2 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 (i) violate any provision of law, statute, rule or regulation or
any order of any court or other agency of government, (ii) conflict with or violate the Certificate
of Incorporation (after amendment to authorize the additional shares of non-voting common stock) or
By-Laws of the Company, in each case as amended, or (iii) 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.

          5.3 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.

          5.4 Based in part upon the representations and warranties of the Purchaser 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 and any other required
jurisdictions in accordance with the rules and regulations thereof under the Securities Act and
applicable state law.

          5.5 The Preferred Shares are duly authorized, validly issued, fully paid and non-assessable
shares of Series 2005 Preferred Stock, and are not subject to any preemptive rights.

     6. Representations and Warranties of the Purchaser. The Purchaser hereby represents
and warrants to the Company as follows:

          6.1 The Purchaser 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.

          6.2 The Purchaser 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 Common shares must be held by the Purchaser until
registered under the Securities Act.

          6.3 The Purchaser 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.

          6.4 The Purchaser 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 the Purchaser 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. Purchaser agrees to keep confidential the confidential information
provided for the purpose of evaluating the purchase herein.

          6.5 The Purchaser is a qualified investor 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.

     7. Reaffirmation of Representations and Warranties. The date Units are purchased
shall constitute a reaffirmation of each and every one of the representations and warranties of the
Company set forth in Section 5 of this Agreement and those of the Purchaser set forth in Section 6
of this Agreement as if made as of each Effective Date, unless otherwise restated or corrected by
either the Purchaser or the Company, as the case may be.

     8. Miscellaneous.

          8.1 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 the Purchaser.

          8.2 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 the Purchaser hereunder shall be
assignable to any holder of the

 

 

Shares. Except as provided in the immediately preceding sentence, this Agreement and the
rights of the Purchaser hereunder shall not be assignable, and any purported assignment hereof or
thereof shall be void.

          8.3 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 the Purchaser.

          8.4 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:

Axcess International Inc.

3208 Commander Drive

Carrollton, TX 75006

Attention: Chief Financial Officer

          with a copy to:

Vial, Hamilton, Koch, and Knox

1700 Pacific, Suite 2800

Dallas, TX 75201

214-712-4441

Attention: Craig Ongley; and

          if to the Purchaser:

to the Purchaser 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 (i) in the case of
personal delivery, on the date of delivery, (ii) if sent by facsimile, on the date sender receives
a confirmation confirming receipt, (iii) 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.

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

          8.6 This Agreement, and all rights, obligations and liabilities hereunder, shall be construed
according to the laws of the State of Texas applicable to contracts made and to 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,

AXCESS INTERNATIONAL INC.

 	 
	 	By:  	 	 
	 	 	Allan Griebenow, Chief Executive Officer 	 
	 	 	 	 
	 

The undersigned agrees with and

accepts the foregoing terms and provisions

as of the date first above written.

By:                                                             ,

Printed Name:                                                             ,

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