EXHIBIT 10.20
[FIBERCORE INC. GRAPHIC]
FIRST AMENDMENT TO
OPTICAL FIBER SUPPLY AGREEMENT
THIS FIRST AMENDMENT TO OPTCAL FIBER SUPPLY AGREEMENT (this "First
Amendment") is effective as of the 1st day of January, 2002 by and between
OPTICAL CABLE CORPORATION of VIRGINIA, a Virginia Corporation ("OCC") and
FIBERCORE, INC, a Nevada corporation, and its subsidiaries and affiliates
(collectively, "FiberCore").
BACKGROUND STATEMENT
--------------------
The parties hereto previously entered into an Optical Fiber Supply
Agreement dated as of April 25, 2001 (the "Supply Agreement"), pursuant to which
FiberCore agreed to supply and OCC agreed to purchase certain quantities of
multimode and single-mode optical fiber during the term of the Supply Agreement.
The parties now desire to modify and amend, in certain respects, the Supply
Agreement, in order to evidence the agreement between the parties.
STATEMENT OF AGREEMENT
----------------------
NOW, THEREFORE, in consideration of the mutual premises contained herein,
and other good and valuable consideration, the legal sufficiency of which is
hereby acknowledged, OCC and FiberCore hereby agree as follows:
1. Up to 10% of the multimode requirement for FY 2002 (6,000 km) may be
rolled into FY 2003. Any amount rolled into FY2003 will be in addition to
the FY 2003 requirements. Minimum multimode requirements are as follows
based on Take or Pay percentage:
FY 2002: 60,000 km (10% may be rolled into FY 2003)
FY 2003: 60,000 km
FY: 2004: 66,000 km
2. Single-mode fiber volumes (standard use) will be reduced by 50% for all
three years. New minimum single-mode requirements are as follows based on
Take or Pay percentage:
FY 2002: 75,000km (10% may be rolled into FY 2003)
FY 2003: 93,750 km
FY 2004: 120,000 km
Any amount rolled into FY2003 will be in addition to the FY 2003
requirements. In consideration of FiberCore reducing the originally
contracted amounts of single-mode fiber for FY 2002 through 2004, OCC
agrees to purchase 50% of its single-mode fiber requirements over and
above the revised minimum quantities from FiberCore during this period.
TAKE OR PAY TERMS: if OCC fails to purchase, on an annual basis, the
minimum quantities of multimode and single-mode optical fiber as specified above
for either FY 2002, 2003 or 2004, than OCC is required to pay FiberCore an
amount equal to the "remaining dollar value" of the Agreement for such year. The
term "remaining dollar value" shall equal the quantity of fiber set forth for
the applicable year that is not purchased multiplied by the last price of such
Product shipped by FiberCore to OCC. If OCC cancels any or all of this
Agreement, they are required to pay FiberCore for the remaining amount of fiber
(minimum quantities) on this Agreement at the last price paid for such
Product(s).
IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be
executed as of the day and year first written above.
OPTICAL CABLE CORPORATION OF VIRGINIA
By:
-------------------------------------
Xxxx X. Xxxxxx
Acting President and CFO
FIBERCORE, INC.
By:
-------------------------------------
Xxx Xxxxxxx
Vice President, Sales & Marketing
