velatel_8k-ex1004.htm


Exhibit 10.4


 



		
	 	 
	
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.







 




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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


 




 



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