World Surveillance Group Inc (fka WSGI)

[DonG]

From 10K-

"Network Installation Agreement


On June 7, 2006, the Company entered into an Initial Network Installation Agreement with VPN de Mexico, S.A. de C.V. (“VPN”) exclusively for the purposes of setting forth the terms whereby GlobeTel Wireless will install an initial wireless broadband network in Mexico utilizing its HotZone Wireless technology. GlobeTel will install an Initial Test Network in an area not to exceed 10 sq. km. VPN has paid a $225,000 deposit to GlobeTel as 50% of the initial cost of the network. Once the initial test area has been installed and deployed, VPN will evaluate the network and, upon acceptance, will pay the balance due of $225,000, which is anticipated to occur during the three months ended September 30, 2006. In the event VPN determines that the network does not operate in accordance with its expectations, then the $225,000 deposit will be returned to VPN by the Company.


Upon the acceptance of the initial test area, VPN and the Company intend to proceed with the agreement’s joint venture arrangement, which provides that VPN will pay $5,000,000 to the joint venture for the next stage of implementation, which will call for an installed area of no more than 100 sq. km. The same payment terms will apply whereby VPN will pay a 50% into the joint venture with the balance due at completion and acceptance of this stage."

http://investor.globetel.net/phoenix.zhtml?c=67726&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd...

Don