Exhibit 10.11
SUPPLEMENTARY CONTRACT (II)
First Party: Guangdong Zhuhai High-technology Results
Industrialization Demonstration Base Co., Ltd.
SECOND PARTY: ZHUHAI OPLINK COMMUNICATIONS TECHNOLOGY CO., LTD.
Pursuant to the ECONOMIC CONTRACT LAW OF THE PEOPLE'S REPUBLIC OF CHINA
and related laws, First Party and Second Party, having conducted amicable
consultations in adherence to the principles of mutual benefit, mutual support,
and shared growth, reach the following agreement:
(1) Pursuant to the provisions regarding "Exemption within the zone from
the increased power and water capacity fee and 20% drop in electricity
and water prices" in the Zhuhai (Guangdong Province) Municipal
Government Document No. (2000) 21, and in accordance with the "they who
use shall invest" principle for construction of transformer and
distribution facilities, Second Party urgently needs, on account of the
actual rapid expansion of its production at the Base (Guangdong Zhuhai
High-technology Results Industrialization Demonstration Base), to
establish two transformer and distribution facilities with capacities
of approximately 1,000 KVA each (said facilities include: high-tension
lines, high-voltage board, transformers, low-voltage distribution
facilities, low-voltage transmission facilities, distribution housing,
and other such facilities connecting from No. 1 Factory Building,
hereinafter abbreviated as transformer and distribution facilities).
(2) Title to the transformer and distribution facilities demanded by Second
Party shall belong to Second Party after Second Party has invested the
funds and completed construction. First Party shall assist Second Party
with performing the relevant formalities such as reporting on
construction.
(3) First Party shall, for consideration, provide Second Party with the
building unit needed for construction of the transformer and
distribution facilities: The building unit is located at First Floor of
First Party's Factory Building No. 2. The building unit area is 116.83
square meters (the final use area plus a reasonable portion of the
common area). First Party shall collect from Second Party rent and
service fees amounting to 12 yuan per square meter monthly fees (rent
of 3 yuan per square meter per month, with the balance being service
fees). The building will be leased for five years (from June 1, 2000 to
May 30, 2005). Building property management fees, rent increases, and
water and electricity charges shall be paid according to the terms in
the relevant lease for Factory No. 2 (expenses are calculated in the
same ways as for floors 3, 4, 5, and 6 of Factory Building No. 2).
(4) If, after all the contracts and agreements made between Second Party
and First Party expire, Second Party does not lease First Party's
property again, First Party promises that it shall at that time
repurchase the transformer and distribution facilities that Second
Party constructed itself. (After First Party repurchases, title shall
belong to First Party.)
The price at which First Party purchases the transformer and
distribution facilities of Second Party = the original price of Second
Party's transformer and distribution facilities
-- (Years of use x Annual depreciation expense for Second Party's
transformer and distribution facilities) -- Scrap value of Second
Party's transformer and distribution facilities -- Cost of repairing
equipment.
Where:
The depreciation period for Second Party's transformer and
distribution facilities is eight years, the depreciation
method is the straight-line method, the scrap value of Second
Party's transformer and distribution facilities is 5% of the
original price of Second Party's transformer and distribution
facilities, and the cost of repairing the equipment refers to
transformer and distribution facilities repair costs incurred
during the period of use by Second Party.
(5) The original price of Second Party's transformer and distribution
facilities is determined according to the bid invitation price. It
shall be the lower of the budget price according to the budget and
financial statement center of the Bank of Construction and the actual
bid invitation price.
(6) The use period for Second Party's transformer and distribution
facilities begins on the day that Second Party's transformer and
distribution facilities have been completed and have passed an
acceptance check. After Second Party completes construction of the
transformer and distribution facilities, it shall provide the relevant
contracts and technical drawings to First Party so that it can use them
to determine the original price of Second Party's transformer and
distribution facilities. When First Party repurchases Second Party's
transformer and distribution facilities, Second Party shall guarantee
that the entire set of equipment can function perfectly. Moreover, it
shall provide First Party with the entire set of drawings, acceptance
information, and necessary documents.
(7) This agreement takes effect after the two parties sign it and affix to
it their seals.
(8) This agreement exists in duplicate. Each party possesses one, and each
has equal legal effect.
(9) This contract is a supplementary contract for contract (Yue-Ke-Ji-Di
2000-011).
Seal of First Party: Seal of Second Party:
Guangdong Zhuhai
High-technology Results Industrialization
Demonstration Base Co., Ltd.
Legal Representative of First Party: Legal Representative of Second Party:
/s/ illegible [seal:] Co., Ltd.
Date: [illegible] 28, 2000 (Zhuhai, China)
