EXHIBIT 10.36
[LOGO]
1 June 1998
Mike Healy Exodus Communications 2650 San Tomas Expressway Santa Clara, CA 95051
Dear Mr. Healy
Cisco Systems Capital Corporation ("CSC"), a wholly owned subsidiary of Cisco Systems, Inc., specializes in providing innovative finance solutions for Cisco Systems products and services. We are pleased to present this proposal ("Proposal") for the transaction described below:
LESSOR: Cisco Systems Capital Corporation.
LESSEE: Exodus Communications
EQUIPMENT: Cisco Systems Products, presented in quotations
from Cisco Account Manager Tom Packo
EQUIPMENT COST: $4,000,000 (This will be adjusted as necessary per
the needs of Exodus and the credit approval of
CSC)
EQUIPMENT SHIP TO LOCATION: CA, USA.
INITIAL TERM: 36 months.
36 MONTH RENTAL: 36 Month Fair Market Value Lease: The rental
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amount, expressed as a percentage of Equipment
Costs, is 2.75% per month, payable on the 1st day
of each month.
Lease Rate Factor: .0275
MONTHLY PAYMENT: In accordance to the pricing and configuration
referenced above, the monthly payment will be the
hardware cost multiplied by the lease rate factor.
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 the
1st of the month after acceptance.
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 Lessee.
ADJUSTMENT OF RENTAL FACTORS: The rental amount quoted in this proposal will be
adjusted prior to the commencement date of each
schedule in accordance with changes equal to or
greater than one quarter of one percent (.25%) in
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