[CISCO SYSTEMS
CAPITAL LOGO]
Monday, October 25, 1999
David Walsh
Globaltron Communications Corporation
111 N.E. 1st St.
Miami, FL 33132
Dear Mr. Walsh,
Cisco systems Capital Corporation ("CSC"), a wholly owned subsidiary of Cisco
Systems, Inc., specialized in providing innovative finance solutions for Cisco
Systems products and services. We are pleased to present this proposal
("Proposal") for the transaction described below:
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LESSON: Cisco Systems Capital Corporation
LESSEE: Globaltron Communication Corporation.
EQUIPMENT: Cisco Systems Products as presented by
Sheldon Friedberg of Cisco Systems, Inc.
MAXIMUM EQUIPMENT COSTS: In the aggregate up to $3,600,000.
SHIP TO: Locations within the U.S. as advised
PARTIAL SHIPMENTS: Please indicate at the bottom of
this letter whether Lessee will accept
scheduling of partial purchase order
shipments. (If not, please note that Cisco
Systems will retain shipments until
complete.)
ORIGINAL TERM: 3 Monthly payments interest only of $29,880.
33 Monthly payments of $125,2180.
ADVANCE PAYMENTS: None, but deemed acceptance of the equipment
will take place 30 days after shipment of
the final piece of equipment per schedule.
There is no interim rent, and commencement
will take place according to the date
referenced above
Maintenance Maintenance Factor of .0875% for
1 year and .0460% for 2 years. See
Maintenance section for financing 3 or more
years of SmartNet Maintenance.
Notwithstanding the foregoing, CSC is not
responsible for maintenance software or
ancillary services relating to the
equipment, nor for ensuring that any
necessary maintenance or services agreements
or software licenses with Cisco Systems or
any other third party are in effort at any
time.
MAINTENANCE: When Maintenance is purchased for 3 years or
more, it may be included into the lease at
0% Financing over the term of the lease.
Take the cost of maintenance over the term
of the lease and divide by 36 to calculate
the monthly payment.
NET LEASE
This is a net lease transaction under which
all costs, including without limitation,
insurance, maintenance and taxes, are paid
by Lessee for the term of the lease.
Manufacturer's guarantees or warranties will
be passed on to the Lessee.
ADJUSTMENT OF
RENTAL FACTORS: The rental amount quoted in this
Proposal will be adjusted prior to the date
of preparation of any Equipment Lease
Schedule to reflect changes equal to or
greater than one quarter of one percent
(.25%) in the weekly average of the three
Year Treasury Note interest rate, as
specified in Federal Reserve statistical
release H.15
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October 25, 1999
Page 2
from the week preceding the date of this
Proposal to the week preceding the date of
preparation of the Schedule. Changes to the
benchmark rate of less than one quarter of
one percent (.25%) will not affect the Lease
Rate Factor quoted herein. The Three
Treasury Note H.15 statistic is updated
weekly by the U.S. Federal Reserve for the
preceding week's average yield. The
statistic is publicly available on the
Internet at http://www.bog.frb.fed.us/releases/h15/.
INVOICING: A single invoice will be furnished monthly,
detailing all Lease Schedules and rental
payments due. Freight charge will be added
to CSC's invoice and billed to lessee with
the first rental payment.
END OF LEASE OPTION: At the end of the Original Term of the
Lease, Lessee may purchase equipment for
$1.00
UTILIZATION PERIOD: All Purchase Orders for equipment under this
proposal shall be submitted no later than 90
days from the date of acceptance.
DOCUMENTATION FEE: None
OTHER FEES: None
EXPIRATION DATE: This Proposal shall terminate 30 days from
today's date.
CREDIT APPROVAL: This Proposal includes only a brief
description of the substantive terms and
conditions of the contemplated lease
transactions and is not intended as a formal
commitment of credit by CSC or Cisco
Systems. Any funding by CSC for the purchase
of equipment is subject to the ongoing
credit approval of CSC (including the
absence of any material adverse change in
the judgment of CSC, in the business of
financial condition or prospects of Lessee)
and to satisfactory documentation including
as described below. You agree to provide two
years' audited financial statements, bank
references, a completed credit application
and any other required credit information
along with the signed copy of this Proposal.
You hereby authorize CSC and/or its agents
to make a complete credit investigation and
to relate this information to others as
necessary to secure credit approval.
The parties acknowledge that the financing
contemplated by this Proposal is subject to
the above-referenced conditions and the
execution and delivery of all appropriate
documents (in form and substance
satisfactory to CSC), including without
limitations to the extent applicable, the
Master Agreement to Lease Equipment, any
Schedule Lessee Assignment of Purchase
Order, financing statements, legal opinion
and other documents and agreements
reasonably required by CSC.
By signing this document, you hereby
authorize CSC to order, when appropriate for
manufacture and delivery, the equipment
configuration described herein (or in the
attached or future purchase orders) and to
file a financing statement in accordance
with the Uniform Commercial Code signed only
by CSC or signed by CSC as Lessee's attorney
in fact with respect to any of the
Equipment.
If for any reason, you and CSC shall fail to consummate all or any portion of
the financing contemplated by this Proposal, you shall be solely responsible for
the payment in full of the purchase price (and all related costs and expenses,
including Soft Costs), incurred by CSC or Cisco Systems associated with any such
outstanding orders. All such orders shall be subject to the standard Terms and
Conditions of Sale of Cisco Systems or a Cisco Value Added Reseller, including
by not limited to the "net 30" payment terms commencing from date of shipment.
Please indicate your acceptance of all of the terms and conditions set forth
herein by signing and dating this Proposal in the space provided below by no
later than November 25, 1999 at which time this Proposal will expire if not
accepted.
This Proposal is confidential and may not be disclosed to any person or entity
without our consent.
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October 25, 1999
Page 3
Thank you for the opportunity to present this Proposal. We look forward to doing
business with you. If you have any questions, please do not hesitate to call me
at 408-525-5710.
Sincerely,
Bob Nakano ACKNOWLEDGED AND AGREED:
CISCO SYSTEMS CAPITAL CORPORATION
170 West Tasman Drive
San Jose, CA 95134-1706 USA Globaltron Communications (lessee)
Fax: 408-527-1632
Email: [email protected] By: _______________________________
-----------------
(Authorized Signature)
Name: _____________________________
Title: ____________________________
Dated: ____________________________
Lessee is/is not (CIRCLE ONE)
willing to accept scheduling of
partial purchase order shipments.
(Note: Failure to circle either
option shall be deemed an
instruction not to schedule partial
purchase order shipments.)
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