Still too early to tell if there is any value here. They are going to be implementing a new business plan and there may still be some as yet undefined contingencies. On the plus side, the ELNK deal could add as much as $8.75 million to NPLI's coffers:
freeedgar.com
"Approximately 50,000 of the Company's customers were transferred to EarthLink's service on March 12, 2001. The agreement calls for EarthLink to pay the Company $175 for each customer who transfers to the EarthLink service and who remains an Earthink customer through two monthly billing cycles."
NPLI will still be required to provide access services to approximately 5,000 customers through November 2001 and there appear to be some significant contingencies attached that this requirement:
"In July 2000, the Company entered into a network service agreement with AT&T Corp. to provide Internet service to its customers. Under the agreement, the Company is obligated to pay minimum commitment amounts over the term of the agreement equaling $405,000, $7.3 million, $14.3 million and $10.4 million for calendar years 2000, 2001, 2002 and 2003, respectively. The agreement may be terminated by the Company for any reason upon 60 days prior written notice upon the payment of a termination fee, which is based on a percentage of the then current commitment level and the remaining term of the agreement. In July 2000, the Company entered into a network services agreement with Genuity Solutions, Inc. to provide dial-up Internet service to its customers. Under this agreement, the Company is obligated to pay minimum commitment amounts over the three year term of the agreement equaling $200,000 per month. The agreement may be terminated by the Company for any reason upon 60 days prior written notice upon the payment of a termination fee which is based on a percentage of the then current commitment level and the remaining term of the agreement." |
