September 22, 1999
Xx. Xxxxxxx Xxx-Xxxxx
c/o GlobeWave Inc.
Teliran Electronic Industries Ltd.
000 Xxxxx 00 Xxxxx
Xxxxxxxx Xxxx, Xxx Xxxxxx 00000
Re: CyNet, Inc., Teliran & GlobeWave Strategic Alliance
Dear Mr. Xxx-Xxxxx:
This letter summarizes the understanding among CyNet, Inc., Teliran Electronic
Industries Ltd. & GlobeWave following our August 19, 1999 meeting in Houston,
Texas. The terms and conditions are as follows:
1. GlobeWave Inc. ("GlobeWave") is the wholly owned marketing arm of
Teliran Electronic Industries Ltd. ("Teliran") and Teliran is an
Israeli corporation. Collectively, GlobeWave and Teliran are referred
to as the "Company." CyNet, Inc. is a Texas corporation ("CyNet").
2. CyNet desires to be the exclusive sales agent of the Company and the
Company desires CyNet to be its exclusive sales agent in a defined
territory in the United States (US) that consists of the states of
Florida, Georgia, Alabama, Tennessee, Mississippi, Arkansas,
Louisiana, Oklahoma, Texas, New Mexico, Colorado, Arizona, Nevada,
California, Utah, Oregon, Washington, and Hawaii. Based upon CyNet's
sales performance in the above defined territory, the Company will
consider appointing CyNet as the Company's exclusive sales agent in
the US and its territories.
3. As consideration for the Company appointing CyNet as its exclusive
sales agent in the defined territories from September 1999 through
December 1999, CyNet agrees to purchase 1,000 units of the GlobeWave
Cellular Modem with delivery schedules for the 1,000 units to be
completed on or before December 31, 1999. The purchase price for
this order is $400 each. GlobeWave will provide CyNet with a special
$50 discount on each unit. This discount is in recognition of
CyNet/Teliran/GlobeWave
Letter of Understanding
September 22, 1999
Page 2
CyNet's marketing and sales effort. Terms for this specific order
are net 60.
4. As consideration for the Company appointing CyNet as its exclusive
sales agent in the defined territories after December 1999, CyNet
agrees to purchase 5,714 units of the GlobeWave Cellular Modem at a
purchase price of $350. The purchase commitment is to be secured by
a $2,000,000 standby letter of credit from a financial institution
having a term of 300 days.
5. The Company shall provide CyNet with training and support on the
sale and deployment of the Company's products.
We are eagerly looking forward to completing the agreements that will make this
a great alliance between us.
Please confirm your agreement to move forward by executing below.
Sincerely,
CyNet, Inc.
/s/ Xxxxxxx X. Xxxxx
__________________________
Xxxxxxx X. Xxxxx
Executive Vice President
AGREED:
GlobeWave, Inc.
By: /s/ Xxxxxxx Xxx-Xxxxx
__________________________
Xxxxxxx Xxx-Xxxxx
President
Teliran Electronic Industries, Ltd.
By: /s/ Xxxxxxx Xxxxx
_________________________
Xxxxxxx Xxxxx
President
Addendum to 10.26
October 22, 1999
Xx. Xxxxxxx Xxx-Xxxxx
c/o GlobeWave Inc.
Teliran Electronic Industries Ltd.
000 Xxxxx 00 Xxxxx
Xxxxxxxx Xxxx, Xxx Xxxxxx 00000
Re: Addendum to Contract dated September 22, 1999
This is the first addendum to the Contract by and between GlobeWave, Inc.
("GlobeWave") and CyNet, Inc. ("CyNet") stating additional terms and
conditions as follows:
1) CyNet desires to be the exclusive sales agent of the GlobeWave 33.6
wireless modem and GlobeWave desires CyNet to be its exclusive sales
agent in the defined territory of the entire United States (US) for
the time period of October, November, and December 1999, and January 2000.
2) Delivery schedule of 1,000 units will be in receipt by CyNet within the
following time frames:
Immediate delivery - 300 units
On or before December 1999 delivery - 300 units
On or before January 2000 delivery - 400 units
3) CyNet and GlobeWave agree to consider an extension of the exclusivity
agreement on or before January 2000.
This Addendum is binding when executed by both parties.
GlobeWave, Inc. CYNET, Inc.
By: /s/ Xxxxxxx Xxx-Xxxxx By: /s/ Xxxxxxx X. Xxxxx
Name: Xxxxxxx Xxx-Xxxxx Name: Xxxxxxx X. Xxxxx
Title: President Title: Executive Vice President
