ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. One Laptop per Child Robert Fadel, Finance and Operations Charles Kane, CFO One Laptop per Child

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. Essential Questions What is the timeframe to launch? How do we advance the procurement process? Who else should OLPC be discussing terms with?

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. Core Principles Child Ownership Low Ages Saturation Connection Free and Open Source

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. Objectives Cooperative Principles of Distribution Incorporate Expectations Keep costs low Define Deliverables

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. Distribution One laptop per Child Scale No secondary, commercial re-distribution Global = 3m/3countries/2continents Prompt Deployment

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. Expectations: Country Price Specification Delivery Schedule Warranty Maintenance

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. Expectations: Partners Irrevocable Letter of Credit, 20% Cash Agreement is Absolute Intellectual Property and Patents Commitment to Scale Opportunity to Explore Commercial Interests

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. Cost Saving Measures Cash up-front/Irrevocable Letter of Credit Delivery Ex-Works Factory Localized “Warranty” Service Production Ramp and Schedule Innovation

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. OLPC IP and Patents Software is licensed under GNU GPL v2  Distribute freely Modifications follow suit Hardware patents  Defense, cross-licensing, leverage Limited exclusivity with manufacturers

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. Citibank Partnership Pro-bono Financial Services Cut-rate terms Seeks to reduce the cost of capital Utilize existing bank relationships  Reduce risk  Leverage established credit

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. Physical Movements Time Line (Days) Goods received by Quanta Goods completed and shipped to Sovereign Governments Goods received by Sovereign Governments Shipped goods from suppliers directly to Quanta. Assume 5 days for Quanta to receive goods. Assume 10 days for Quanta to manufacture goods. Completed goods shipped to Sov. Governments. Assume 25 to 45 days for Sov. Governments to receive completed goods.

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. Timeline Manufacturers, Partners based in China Three Month lead time to Manufacturing Ten days for work in progress Delivery time from factory to country  Ocean: 25 to 75 days  Air: < 7 days

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. asdfkasdlkfjasfd asdlkfasldkfja;ls asdfkasldkfj asdfkasodfkj Reports LC Worksheet Shipment Release Freight Forwarders Forwarder Instructions Transport Doc or Data Document Presentation ArgentinaBrazilLibyaUruguayNigeria Invoice Data Under One Roof LC Process

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. Structure, Risk Mitigation Quanta can receive payment on its invoices to Brightstar within 3 days Quanta receives a net discount on its invoices less the amounts it owes to Brightstar. Payment to all parties made by Citibank through Brightstar for each production period.

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. Program Flows

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. Program Benefits Brightstar, Citibank do financing and pack out in spirit of charitable pricing and financing. Confidentiality on pricing assured throughout. Component manufacturers receive cash in 2 to 5 days. Quanta records sale as laptops transition through factory to Brightstar pack out station, where title transfer and sale occurs. Liquidity is available to all parties, no party is cash deprived. Citibank provides secured inventory loans to Brightstar.

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. Letter of Credit Irrevocable Standard SWIFT, UCP terms Concise terms and conditions Leverage existing Citibank, corresponding bank relationships  Transaction terms  Existing lines of credit

ONE LAPTOP PER CHILD This works are licensed under a Creative Commons Attribution 2.5 License. Structure Risk Mitigation L/C should be issued on behalf of governments by local Citibank branches (Citibank confirms/guarantees the L/C if issued by another bank). L/C is advised to OLPC. OLPC is beneficiary to L/C, gives Citibank a blanket assignment of proceeds. Funds are paid under the L/C to OLPC Citibank account. Brightstar and Citibank track payments to each party during each phase of production.