This memo is made to identify the general terms of the standby letter of credit from the contracting parties, the seller who is issuing the letter of credit is Nueva Vision in favor to the buyer which is the Spanish government. Nuvie vision signed a contract with the Government of Spain to use the technology in training simulations for search and rescue missions.
Description of the Goods and Services .
NV will manufacture the handheld devices, provide training and set up mobile telecenters to lease or sale handsets. NV will be making small computing handheld devices, having a display screen with touch input and a miniature keyboard and weighing less than two pounds. NV will be also provide training and setting up mobile telecasters, where people can access computers, the Internet, and other digital technologies that enable them to gather information, create, learn, and communicate with others, for the Government to lease or sale these handsets.
Quantity.
Under the contract between NV and Spanish government, NV will manufacture 40.000 handheld devices for the Government. It is agreed by NV to manufacture and deliver 10.000 devices and the agreed amount of training. That is due at the end of every four and half months with the confirmation and acceptance of the Government.
Constructing of the Payment.
The payment of the US $10,000,000. from the government to NV will be divided to four separate installments. Each payment will be due after receiving an amount of work that parties will agree on; except the first down payment. .
.
I. The installments of the total amount will be due by the government to NV over 18 months period of time: The first payment will be the (down payment) which is %2 of the total amount. That is worth US$200,000.
II. The rest of the installments will be paid to NV after receiving a letter from NV that shows the amount of work has been done, and the amount of devices that have been delivered.
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