Exhibit 10.11


 


Supplementary Agreement on Payment Method


 


Seller: UTStarcom Telecom Co.,
Ltd (hereinafter called “Party A”)


Address: No 368, Liu He Road,
Binjiang District, Hangzhou


Legal Representative: Yanya
Sheng


 


Buyer: Hangzhou Zhong Nan Wen
Chuang Information Technical Co., Ltd. (hereinafter called “Party B”)


Address: Room 2402-2407,
No 245 Bin Kang Road, Changhe Jie Dao, Binjiang


District, Hangzhou.


Legal Representaive: Wu Jian
Rong


 


Party A and Party B signed a “Property
Transfer and Leaseback Agreement” on 19th December, 2009. Since there is a delay in the
transaction date, both parties agreed on the new payment term and handover date
as follows:


 


Article One  Payment Term of
the Property Transfer


 


1.     Party B has paid
Party A RMB95 million as deposit and first installment of the Property Transfer
according to the “Property Transfer and Leaseback Agreement”.


 


2.     Party A agreed to
open the banking accounts with the High Tech Zone sub branch of Hangzhou
branch, Shanghai Pudong Development Bank(SPDB) to receive the 80% property
transfer payment, that is RMB760 million. The account is an escrow account by
the bank. Both parties and the bank will sign a “Designated Fund Escrow
Agreement” concurrently.


 


3.     After the opening
of the accounts, within 2 business days, Party B will pay RMB380 million into
the Escrow bank account. After Party A confirms receipt of the payment, both
parties shall go together to Property Transaction


 

















 


Center
of to submit property title transfer application.


 


4.       Within three days
after the property title certificate is changed into Party B’s name, Party B
promises to pay Party A another RMB380 million of property transfer payment.


 


5.       According to Article 4 of the “Property
Transfer and Leaseback Agreement”,  the
remaining payment of RMB95 million will be paid by Party B to Party A within 3
working days after Party B’s confirmation of the handover and inspection of the
overall Property, after the deduction of the RMB50 million tax payment.


 


6.       Party B promised to pay Party A the
interest incurred from the installment payments. The calculation method is 8%
annual rate of the RMB760 million. The days of interest incurred starts from
the day Party A receives the first property transfer payment of RMB380 million
to the day Party A receives the second property transfer payment of RMB380
million. The interest payment should be paid by Party B to Party A on the same
day Party A receives the second property payment of RMB380 million, and should
be paid to the banking accounts designated by party A.


 


7.       Pursuant to the < Designated Fund Escrow Agreement >,
Party B agrees to pay any related escrow banking fee if any to the designated
banking acccount required by party A. This fee will be deducted by the bank
from the escrow account. Party B agrees to pay the escrow fee to Party A within
3 business days after the deduction of the fee by the bank, or, no later than
when the Party B pays the second property payment of RMB380 million.


 


8.       Within three days after Party A opens the invoice for
property transfer, Party B should pay Party A RMB46,350,000 into Party A’s
designated tax account for the tax payment of the property transfer. After
Party B pays all the taxes of the property transaction, Party B should provide
photocpies of the official tax receipts to Party A.


 


Article Two  Property
Handover Date


 


1.     According to the “Hangzhou
Real Estate Transfer Contract” signed by both parties on 30th March, 2010, the handover date of the Property
is “the day after the


 

















 


property
deed is changed to Party B’s name”. Now the handover date is changed to “the
day after Party A receives 90% of the Property Transfer payment from Party B,
that is RMB855 million, and the escrow funds have been unrestricted to allow
Party A to move them into any account at any bank it selects. In addition,
Party B should provide the new title certificate under Party B’s name to allow
Party A to confirm that the title transfer is completed”.


 


Party A: UTStarcom Telecom Co.,
Ltd  (Company Chop)


Authorized Representative
(Signature):


 


 


Date:        Year/   
Month/    Day


 


Party
B: Hangzhou Zhong Nan Wen Chuang Information Technical Co., Ltd. (Company Chop)


Authorized
Representative (Signature):       


 


 


Date:        Year/   
Month/    Day