EQUIPMENT PURCHASE ORDERP.O. No.: ___________Date: May 10, 2012
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Business Finance
- Purchase Agreements
EX-10.4 5 velatel_8k-ex1004.htm PURCHASE ORDER FOR EQUIPMENT BETWEEN VELATEL GLOBAL COMMUNICATIONS, INC., NOVI-NET, D.O.O, AND ZTE CORPORATION velatel_8k-ex1004.htm
Exhibit 10.4
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| EQUIPMENT PURCHASE ORDER | |
| P.O. No.: ___________ | Date: May 10, 2012 |
Customer:Novi-Net, d.o.o and VelaTel Global Communications, Inc.
Address (VelaTel): 12526 High Bluff Drive, Suite 155, San Diego, CA 92130
Contact Person (VelaTel): Mario Alvarez
Address (Novi-Net): Karlo Vlah
Contact Person (Novi-Net): Merhatovec 5, 40314, Čakovec, Croatia
Bank Item: [ ] (Accounting Bank name, A/C number)
Supplier: ZTE CORPORATION
Address: ZTE Plaza, Keji Road South, Hi-Tech Industrial Park, Nanshan District, Shenzhen, P.R.China
Bank Item: BANK OF CHINA SHENZHEN BRANCH
US Dollar Account: 810100277908092014
Contact Person: Gao Ping
| 1. | Contract Amount & Price |
| Item Description | Total Price – USD |
| Equipment (One Year Warranty Included) | $ 1,280,256.81 |
| Value Added Tax (referred to in Croatia as “PDV”) | Paid by Customer |
| Delivery and Other Expenses | Paid by Customer |
| Total Contract Price | $ 1,280,256.81 |
| 2. | Bill of this PO shall be detailed in Attachment 1: Bill of Quotation. |
| 3. | Trade Term: FCA. |
| 4. | Delivery Port: Hong Kong, China. |
| 5. | Delivery Date: Within __ days after execution of this PO. |
| 6. | Payment Terms: |
| a. | Down Payment: $274,267.47, of which $182,844.98 has been previously paid, $54,853.49 is due within 15 days of this PO, and $36,569.00 is due within 15 days of goods available for Customer’s inspection at Delivery Port. |
| b. | Vendor Financing: Per the following credit facility: |
| Facility amount: | $1,005,989.34 (Total Contract Price less Down Payment) |
| Currency: | United States Dollars. |
| Tenor: | 2.5 years (Including Grace Period). |
| Grace period: | 1 year commencing from first Bill of Lading date under this PO. |
| Interest Rate | 6 months Libor plus 2.5% per annum |
| Principal Repayment: | Three semi-annually equal installments, with first one beginning on the 180th day from end of Grace Period. |
| Interest Payment: | Together with each principal repayment. |
| Security: | 1. Unconditional and irrevocable Corporate Guarantee by VelaTel Global Communications, Inc. for 100% of the financed amount. 2. Mortgage of 100% of System Equipment that are supplied by ZTE. |
| Assignment: | Supplier has right to assign all the account receivables to a third party with a written notice to Customer. Customer shall accommodate necessary assistance to complete such assignment, including but not limited to acknowledging and signing any receivable assignment notice. A detailed financing agreement shall be entered into between Customer and Supplier for the financing arrangement. |
| PROPRIETARY AND CONFIDENTIAL | Page 1 of 2 |
| 7. | The implementation schedule shall be detailed in a separate Service Contract. |
| 8. | The Supplier shall provide the one year warranty to the Customer for the equipment supplied under this PO. |
| 9. | Other clauses refer to the Equipment Contract signed by and between Customer and Supplier on May __, 2012 (Contract No. DTZF2012050801WMXTH403). |
| VELATEL GLOBAL COMMUNICATIONS, INC. | ZTE CORPORATION | |||
| By | /s/ Colin Tay | By | /s/ Gong Yue Zhong | |
| Name: | Colin Tay | Name: | Gong Yue Zhong | |
| Title: | President | Title: | Executive Vice President | |
| Date: | May __, 2012 | Date: | May __, 2012 | |
| NOVI-NET, d.o.o | ||||
| By | /s/ Karlo Vlah | |||
| Name: | Karlo Vlah | |||
| Title: | Deputy Chief Executive Officer | |||
| Date: | May __, 2012 | |||
Attachment 1: Bill of Quotation
| PROPRIETARY AND CONFIDENTIAL | Page 2 of 2 |
