SOFTWARE PURCHASE ORDERP.O. No.: ___________Date: May 10, 2012
Contract Categories:
Business Finance
- Purchase Agreements
EX-10.6 7 velatel_8k-ex1006.htm PURCHASE ORDER FOR SOFTWARE BETWEEN VELATEL GLOBAL COMMUNICATIONS, INC., HERLONG INVESTMENTS, LTD., AND ZTE CORPORATION velatel_8k-ex1006.htm
Exhibit 10.6
 |  |
| SOFTWARE PURCHASE ORDER | |
| P.O. No.: ___________ | Date: May 10, 2012 |
Customer:Herlong Investments Limited and VelaTel Global Communications, Inc.
Address (VelaTel): 12526 High Bluff Drive, Suite 155, San Diego, CA 92130
Contact Person (VelaTel): Mario Alvarez
Address (Herlong): Salvator Levis
Contact Person (Herlong): Agapinoros 2, Iris Tower, 7th Floor Flat/Office 702 Nicosia, Cyprus
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 |
| Software (One Year Warranty Included) | $ 4,901.309.20 |
| Value Added Tax (referred to in Croatia as “PDV”) | Paid by Customer |
| Delivery and Other Expenses | Paid by Customer |
| Total Contract Price | $ 4,901,309.20 |
| 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:$1,050,000.00, of which $700,000.00 has been previously paid, $210,000.00 is due within 15 days of this PO, and $140,000.00 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: | $3,851,309.20 (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 purchase order. |
| PROPRIETARY AND CONFIDENTIAL | Page 1 of 2 |
| 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 Software that is 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. |
| 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 Software supplied under this PO. |
| 9. | Other clauses refer to the Software Contract signed by and between Customer and Supplier on May __, 2012 (Contract No. DTZF2012050803WMXTH403). |
| 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 | |
| HERLONG INVESTMENTS LIMITED | ||||
| By | /s/ Salvator Levis | |||
| Name: | Salvator Levis | |||
| Title: | Chief Executive Officer | |||
| Date: | May __, 2012 | |||
Attachment 1: Bill of Quotation
| PROPRIETARY AND CONFIDENTIAL | Page 2 of 2 |
