Replies to post #73895 on World Surveillance Group Inc (fka WSGI)

[rocky301]

good2be,

Why outsource Hotzone deployment by using Trimax as an authorized reseller?

Globetel has made the decision to opt out of manufacturing
the hardware of the Hotzone products. Trimax will also provide all support( Support means ongoing technical development, repair, patches, installation support, engineering, etc...) He will receive 50% of hardware sales from customers that HE brings,not on all sales, no revenues.

Looks like GTEM just re-negotiating what they already had (Uli and Hotzone tech). What am I missing/not following?

They did not have Uli anymore. Globetel owns Hotzone technology. Trimax will assemble and test, hire employees for both the assembly and support issues. Example: Globetel orders 5K 4010 units for Mexico. Trimax gets the $45K per month, no hardware % and no revenues from network. While there is money to be made in manufacturing and support issues the big money flows from establishing networks and the recurring revenues, that is where Globetel has chosen to concentrate.


Would you please post the terms on the orig acquisition? TIA—I know you have everything so well organized and easily retrieved……..

from last 10K..

NOTE 8 - ASSET ACQUISITION AND INTANGIBLE ASSETS - HOTZONE

In September 2004, the Company entered into an independent contractor agreement with Hotzone Wireless, LLC (HotZone), a service provider for consulting/engineering services related to the Sanswire Stratellite project. The non-exclusive service provider provided engineering / consulting services, transmission equipment, and installation and testing of equipment. The term of the agreement was for six (6) months and was automatically renewable for additional one (1) year terms after the initial term unless terminated by either party. As initial compensation, Company paid the service provider $10,000 per month. This agreement was terminated during fiscal year 2005.

On June 2, 2005, the Company entered into an agreement to acquire assets of HotZone, an advanced developer of WIMAX and extended range WIFI Systems with operations in the United States and Europe. The acquisition transaction, which closed during the three months ended September 30, 2005, was paid with $27,000 cash and provides for a total of 2 million (post split) shares of the Company's common stock to be issued in increments of 666,667 shares on each of the first, second, and third anniversary dates of the agreement, assuming that certain milestones are achieved. Additionally, the HotZone staff is entering into employment agreements with the Company.

The assets acquired under the HotZone agreement consist primarily of intellectual property and proprietary rights in intellectual property. As of September 30, 2005, the Company had placed all of HotZone's tangible assets into GlobeTel Wireless Corp. (GlobeTel Wireless), its Florida-based, wholly

from last 10Q..

On June 2, 2005, the Company entered into an agreement to acquire certain assets of HotZone Wireless, Inc. (“HotZone”), an advanced developer of WIMAX and extended range WIFI Systems with operations in the United States and Europe. The acquisition transaction, which closed during the three months ended September 30, 2005, was paid with $27,000 cash and provides for a total of 2 million shares of the Company's common stock to be issued in increments of 666,667 shares on each of the first, second, and third anniversary dates of the agreement, assuming that certain milestones are achieved. Additionally, the HotZone staff has entered into employment agreements with the Company.
In June 2006, the Company issued the first increment of 666,667 shares of the Company’s common stock. The balance due to HotZone as of June 30, 2006 is $4,598,333, of which $2,211,666 is the current portion and $2,386,667 is the long-term portion.
The assets acquired under the HotZone agreement consist primarily of intellectual property and proprietary rights in intellectual property. As of September 30, 2005, the Company had placed all of HotZone's tangible assets into GlobeTel Wireless Corp. (GlobeTel Wireless), its Florida-based, wholly-owned subsidiary.