Exhibit 10.10
SUPPLEMENTARY CONTRACT I
FIRST PARTY: GUANGDONG ZHUHAI HIGH TECHNOLOGY RESULTS INDUSTRIALIZATION
DEMONSTRATION BASE COMPANY, LTD.
SECOND PARTY: ZHUHAI OPLINK COMMUNICATIONS COMPANY, LTD.
In accordance with the PEOPLE'S REPUBLIC OF CHINA CONTRACTS ACT and the
relevant laws, First and Second Parties have reached the following agreement
through friendly negotiations based on the principles of mutual benefit, mutual
support and joint development:
[1] Due to the rapid development of the operations of Zhuhai Oplink
Communications Company, Ltd., Second Party urgently needs a large quantity of
dormitories to resolve the problem of living quarters for its employees.
[2] After negotiations between the two parties, First Party agrees to build
one new dormitory building (dormitory building number 2--Explanation: First
Party's original dormitory building is called dormitory building number 1 in
this contract; the new dormitory building as referred to in this contract is
called dormitory building number 2) within the Guangdong Zhuhai High Technology
Results Industrialization Demonstration Base, to be used to resolve Second
Party's urgent need for a large quantity of dormitories. Ownership of the
dormitory newly built by First Party (dormitory building number 2) shall belong
to First Party.
[3] Second Party shall lease from First Party One Hundred Twenty-five
ordinary rooms in dormitory building number 2, with a lease term of five years,
from December 1, 2000 through November 30, 2005. The total rent, service fees
and property management fees for each room per month shall be 440 YUAN (of
which, rent shall be 200 YUAN/month, service fees shall be 200 YUAN/month, and
property management fees shall be 1 YUAN/square meter per month (with the
exception of dormitory building number 2, the property management fees for other
properties belonging to First Party and leased by Second Party shall remain at
1.5 YUAN/square meter per month) (Note: The building area of each room is
approximately 40 square meters). When this contract has been signed for three
full years, with the consent of First Party, property leased by Second Party may
be subleased by Second Party to a third party, in which case Second Party shall
collect rent, management fees and other fees from the third party. However, this
shall not affect any terms of the contractual agreements in execution for the
five-year term by First and Second Parties.
[4] In order to accelerate the construction of dormitory building number 2,
Second Party shall prepay to First Party rent and management fees equivalent to
45% of the total cost of building dormitory building number 2 totaling THREE
MILLION FIVE HUNDRED THOUSAND YUAN RENMINBI. In order to satisfy the Zhuhai
municipal government regulation relating to capital construction, i.e. "the
constructing unit must have funding of 90% of the total cost of building in
place prior to reporting and beginning construction," Second Party must effect
payment of prepaid rent and prepaid management fees totaling not less than Three
Million One Hundred Fifty Thousand YUAN RENMINBI to First Party by April 15,
2000, in order to ensure the timely beginning and completion of construction;
the balance of
Three Hundred Fifty Thousand YUAN shall be paid by Second Party in accordance
with project progress.
[5] The standard for ordinary rooms as referred to in paragraph [3] of this
contract shall be: building area of approximately 40 square meters per room,
each room being equipped with a toilet.
[6] Second Party shall prepay to First Party rent for factory building,
dormitory building and office building space and service fees and property
management fees totaling Three Million Five Hundred Thousand YUAN. Said rent,
service fees and property management fees prepaid by Second Party shall be
deducted in full over three years from rent, services fees and property
management fees paid by Second Party to First Party as follows: in the first
year, 800,000 YUAN shall be deducted; in the second year, 1,000,000 YUAN shall
be deducted; and in the third year, 1,700,000 YUAN shall be deducted. The
specific deduction plan for each month within the stipulated term shall be
separately agreed upon by persons authorized by the two parties.
[7] In order to compensate Second Party for the nearly three years' worth
of interest on the rent and management fees for One Hundred Twenty-five ordinary
rooms in dormitory building number 2 prepaid by Second Party to First Party,
First Party shall not increase the rent on the One Hundred Twenty-five ordinary
rooms leased by Second Party for a period of three years.
[8] Upon execution of this Agreement, First Party shall immediately design
and commence construction of dormitory building number 2, in order to ensure
availability of use according to schedule. If Second Party remodels the leased
building space, Second Party must provide drawings and other related information
to First Party for its records. If Second Party does not renew the lease upon
expiration of the lease term, Second Party must restore the building space to
its original appearance (the state in which First Party originally provided the
building space to Second Party), unless First Party consents to the return of
the building space to First Party in the then current condition of the
buildings.
[9] This Agreement shall take effect once both parties have signed it and
affixed their seals thereto.
[10] Losses incurred by the opposite party as the result of one party's
breach of contract shall be compensated by the defaulting party.
[11] There are four identical copies of this Agreement, two copies to be
held by each of First and Second Parties, with equal legal effect.
[12] This Contract is a supplementary contract to Contract (Yue-Ke-Ji-Di
2000-011).
Seal of First Party: Seal of Second Party:
Guangdong Zhuhai High Technology Zhuhai Oplink Communications
Results Industrialization Demonstration Company, Ltd.
Base Company, Ltd.
Legal Representative of First Party: Legal Representative of Second Party
/s/ illegible /s/ illegible
March 28, 2000 (Zhuhai, China)
