Document:

exv4w40

Exhibit 4.40

 

Framework Agreement for Engineering and Information Technology Services

 

Between

China Network Communications Group Corporation

&

China Unicom Corporation Limited

     This Framework Agreement for Engineering and Information Technology Services (hereinafter
referred to as this “Framework Agreement”) is signed on August 12, 2008 in Beijing, the People’s
Republic of China (“PRC”) by and between the following two parties:

	 	 	 	 	 
	     Party A:	 	China Network Communications Group Corporation (hereinafter referred to as
“Netcom Group”)
	 

	 	Registered Address:
	 	No. 156, Fu Xing Men Nei Street, Xicheng District, Beijing
	 

	 	Legal Representative:
	 	Zhang Chunjiang
	 
	 	 	 	 
	     Party B:	 	China Unicom Corporation Limited (hereinafter referred to as “CUCL”)
	 

	 	Registered Address:
	 	Level 12, Tower A, Henderson Center, No. 18, Jian Guo Men Nei
Avenue, Beijing
	 

	 	Legal Representative:
	 	Chang Xiaobing

Whereas:

	(1)	 	Netcom Group is a state owned duly enterprise incorporated and validly existing under the
laws of the PRC;
	 
	(2)	 	CUCL is a foreign funded enterprise duly incorporated and validly existing under the laws of
PRC, whose equity is 100% held by China United Telecommunications Corporation Limited (the
“Unicom Red-chip Company”, a company duly incorporated and validly existing under the laws of
the Hong Kong Special Administration Region and dually listed on the Hong Kong Stock
Exchange). Approved by the former Ministry of Information Industry (“MII”) of the PRC, CUCL is
mainly engaged in nationwide provision of international and domestic long-distance
communications services (excluding international telecommunications facilities services);
Internet services and IP Telephony services; as well as mobile communications services in 31
provinces, autonomous regions and municipalities, including Beijing, Tianjin, Shanghai,
Liaoning, Hebei, Shandong, Jiangsu, Zhejiang, Fujian, Guangdong, Hubei, Anhui, Sichuan,
Guizhou, Xinjiang, Chongqing, Shaanxi, Guangxi, Henan, Heilongjiang, Jilin, Jiangxi, Shanxi,
Inner Mongolia, Hunan, Hainan, Yunnan, Ningxia, Gansu, Qinghai and Tibet;
	 
	(3)	 	On May 24, 2008, the Ministry of Industry and Information Technology, the National
Development and Reform Commission and the Ministry of Finance jointly issued the “Notice on
Deepening the Reform of China’s Telecommunications System”, which is seen as the guidepost for
the Chinese government to deepen the reform of its telecommunications system by endorsing the
formation of three leading competitive carriers with nationwide network resources, similar
size and strength and

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	 	 	the capacity of full service operation. In the above notice, China Telecom is encouraged to
buy China Unicom’s CDMA network and China Unicom is encouraged to merge with China Netcom. As
a response to the call for deepening the reform in regard to telecommunications
restructuring, the Unicom Red-chip Company is to merge with Netcom’s red-chip counterpart via
an agreement (the “Merger Transaction”). Following the merger, the Netcom Red-chip Company
will withdraw from the Hong Kong Stock Exchange and the New York Stock Exchange to become a
wholly owned subsidiary of the Unicom Red-chip Company;
	 
	(4)	 	In operation of related telecommunications services, Party B needs China Netcom Group to
provide corresponding engineering and IT services.
	 
	 	 	On the basis of equity and fairness and following friendly consultation, the following
framework agreement concerning the provision of engineering and IT services was entered into
between Party A (including the subsidiaries and affiliates and other entities under the
control of Party A, but excluding subsidiaries and affiliates and other entities under the
control of Unicom Red-chip Company, the same below) and Party B (including the subsidiaries
and affiliates and other entities under the control of Party B, the same below):
	 
	1.	 	Basic principles

	 	1.1	 	In accordance with the stipulations of this Framework Agreement, Party A is
entitled to impose reasonable service charges over the engineering and IT services
provided to Party B under this Framework Agreement, and Party B shall fulfil its
responsibility in making the related payment.
	 
	 	1.2	 	The terms of the engineering and IT services provided by Party A under this
agreement, shall be no worse than the terms offered by Party A in identical or similar
services provided to any other third party.
	 
	 	1.3	 	If, due to reasons other than its own fault, Party A can not provide or fully
provide the engineering and IT services under this Framework Agreement, Party A shall
timely notify Party B in writing, and try its best to assist Party B in obtaining
identical or similar services from other channels.
	 
	 	1.4	 	When Party A provides the engineering and IT services under this Framework
Agreement to Party B, it must be restricted to the usage agreed by both parties and
complies with the appropriate national rules.
	 
	 	1.5	 	Any Party under this Framework Agreement, which causes damage to the other Party
by a breach of this Framework Agreement, shall compensate the other Party timely and in
full.
	 
	 	1.6	 	Any Party under this Framework Agreement, in fulfilling its obligations thereof,
shall provide justifiable and necessary assistance to the other Party.

	2.	 	The basic contents of engineering and IT services

	 	2.1	 	The engineering and IT services under this Framework Agreement provided by Party
A to Party B mainly includes:

	 	(1)	 	Engineering design, which includes:
	 
	 	 	 	Planning and design, engineering survey, communications circuit engineering
(including channel engineering, optical and cable engineering, pole line
engineering, etc.), communications equipment engineering (including telephone
switching engineering, transmission engineering, data and multimedia
engineering, communications power and air conditioner engineering, microwave
communications engineering, technical support system engineering), enterprise
communications engineering;

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	 	(2)	 	Engineering implementation, which includes:
	 
	 	 	 	Communications equipment, communication lines, communication power (including
air conditioner for communications purposes), communication pipes, and
technical services support system;
	 
	 	(3)	 	Engineering supervision.

	 	2.2	 	The IT services provided by Party A to Party B under this Framework Agreement
includes: office automation, software testing, network upgrade, new business R&D and
support system development, etc.

	3.	 	Pricing principles

	 	3.1	 	Except in cases as provided in provision 3.2 of this article, the pricing of
services and/or charging rate under this Framework Agreement, shall be determined with
reference to the relevant market rates. The “market rate” mentioned in this provision
refers to the rate made by the operator itself and finally fixed in the process of
market competition. The market rate is determined in the following order: (1) in and
around the areas where the services are provided, and while under normal conditions of
trading, the rate charged by an independent third party in providing such services; or
(2) the rate charged by an independent third party to the provision of such services
under normal trading conditions in the PRC.
	 
	 	3.2	 	Both parties have agreed unanimously that the receiving party shall determine the
service providing party, which will provide the engineering design and technical
services, by way of bidding. The service providing party’s qualification and terms for
service provision shall not be inferior to that of an independent third party, and this
party shall attend the bidding process in equal status as the independent third party.
	 
	 	3.3	 	The specific amount of service charge under this Framework Agreement, shall be
calculated in accordance with related accounting principles of the PRC (if applicable),
that are applicable from time to time.
	 
	 	3.4	 	Both parties shall conduct a review on the pricing standard of next fiscal year
for each service and facility which are provided under this Framework Agreement before
December 31 of each year (if necessary).

	4.	 	Payment of service charge

	 	4.1	 	Party B shall, in accordance with pricing and charging standards set forth in
this Framework Agreement, the supplement agreement to this Framework Agreement (if there
is any) and the concrete implementation documents, pay Party A or its trustee in a
timely manner for the services provided.
	 
	 	4.2	 	If Party B fails to pay in time the corresponding service charge stipulated in
this Framework Agreement, the supplement agreement to this Framework Agreement (if there
is any) and the concrete implementation documents, it shall pay Party A the late fee
which is 0.05% of the unpaid amount due for each (1) day (refers to calendar day, and
similarly hereinafter); if it is late for sixty (60) days, Party A may notify Party B in
writing the termination of corresponding services; if Party B still fails to pay the
corresponding service fee after receiving the written notification for thirty (30) days,
Party A could declare the termination of such services. However, the suspension or
termination of these services shall not affect the rights and obligations of both
parties already in effect under this Framework Agreement.

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	5.	 	Rights and obligations of both parties

	 	5.1	 	Rights and obligations of Party B

	 	5.1.1	 	Rights of Party B

	 	(1)	 	Party B is entitled to obtain services provided by
Party A under this Framework Agreement;
	 
	 	(2)	 	Concerning the connected transactions under this
Framework Agreement, the auditors of Unicom Red-chip Company are entitled
to audit the accounting records of Party A and the related parties.

	 	5.1.2	 	Obligations of Party B

	 	(1)	 	Guarantee and/or promote its subsidiaries or
affiliates or other entities under its control to sign the concrete
implementation documents with Party A, in accordance with this Framework
Agreement or supplement agreement to this Framework Agreement (if there is
any) ;
	 
	 	(2)	 	Coordinate issues in connection with the concrete
implementation documents;
	 
	 	(3)	 	Pay related service fee in accordance with this
Framework Agreement and the concrete implementation documents;
	 
	 	(4)	 	Guarantee the compensation for any damage caused to
Party A or the targeting Party in the concrete implementation documents
due to the violation of a provision under this Framework Agreement or that
under the concrete implementation documents.

	 	5.2	 	Rights and obligations of Party A

	 	5.2.1	 	Rights of Party A

	 	(1)	 	Party A is entitled by law to obtain the service fee
under this Framework Agreement;
	 
	 	(2)	 	Under the prerequisite that services under this
Framework Agreement are provided to Party B, it has the option to provide
similar services to a third party.

	 	5.2.2	 	Obligations of Party A

	 	(1)	 	Guarantee and/or promote its subsidiaries or
affiliates or other entities under its control to sign the concrete
implementation documents with Party B, in accordance with this Framework
Agreement or supplement agreement to this Framework Agreement (if there is
any);
	 
	 	(2)	 	Provide high quality service and supervise its
subsidiaries or affiliates or other entities under its control to provide
high quality services in accordance with the rules of this Framework
Agreement;
	 
	 	(3)	 	Coordinate issues in connection with the concrete
implementation documents;
	 
	 	(4)	 	Guarantee the compensation for any damage caused to
Party B or the targeting Party in the concrete implementation documents
due to the violation of a provision under this Framework Agreement or that
under the concrete implementation documents.

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	 	5.3	 	Both parties confirm hereby, that they are obliged to take further necessary
actions and measures, to guarantee the achievement of the its purpose and the successful
implementation of this Framework Agreement, and ensure those rules of Hong Kong Stock
Exchange concerning connected transactions are followed in the event that Party B is a
subsidiary of Unicom Red-chip Company.

	6.	 	Priorities

	 	6.1	 	Unless otherwise provided in this Framework Agreement, and if the terms and
conditions proposed by an independent third party to Party B are no better than those of
offered by Party A for the same services, Party B shall give preference to Party A.
	 
	 	6.2	 	Party A undertakes to Party B that the terms provided by Party A to a third party
on same or similar services under this Framework Agreement shall not be better than
those conditions provided by Party A to Party B.
	 
	 	6.3	 	Party A is entitled to provide related services to a third party under the
condition that the services provided by Party A to Party B under this Framework
Agreement are not affected.

	7.	 	Representations, warranties and commitments
	 
	 	 	Each party of this Framework Agreement makes the following representations, assurances and
commitments to the other party:

	 	7.1	 	Each party is an independent legal person incorporated for effective duration in
accordance with Chinese laws, with full power and authority (including but not limited
to the approval, permission or consent given by competent government departments) to
sign and implement this Framework Agreement;
	 
	 	7.2	 	No provision contained in this Framework Agreement is in violation of either
party’s association documents or Chinese laws and regulations;
	 
	 	7.3	 	Each party will do its utmost to take or cause other people to take any
necessary, appropriate or desirable action in line with Chinese laws, regulations as
well as this Framework Agreement, with a view to enabling the effective implementation
of those matters prescribed in this Framework Agreement.

	8.	 	Effective date and term of this Framework Agreement

	 	8.1	 	This Framework Agreement shall come into effect since the next day when all of
the following conditions are met, and will be valid for 3 years;

	 	(1)	 	The general shareholder meeting of China United Telecommunications
Corporation Limited (“China Unicom A Share Corporation”) has approved this
Framework Agreement;
	 
	 	(2)	 	The general shareholder meeting of Unicom Red-chip Company has
approved this Framework Agreement;
	 
	 	(3)	 	The Merger Transaction is executed and completed.

	 	8.2	 	Unless Party B notifies Party A in writing 60 days in advance, that it does not
want to continue the contract, this Framework Agreement could be extended to a term
agreed by both parties in writing in accordance with appropriate laws, regulations or
other supervision rules, when this Framework Agreement or its extension expires.

	9.	 	Force majeure

	 	9.1	 	If a party is unable to implement or fully implement the obligations prescribed
in this Framework Agreement as a result of force majeure, then it will not undertake any
liability for

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	 	 	 	breach of the agreement, in which case the it shall, within fifteen (15) days following
the occurrence of force majeure, inform the case to the other party in writing and
provide proof therewith, and at the same time make every effort to minimize the losses
incurred by force majeure. Within a reasonable period of time in the wake of force
majeure, the party falling victim to force majeure shall undertake to continue
implementation of this Framework Agreement.
	 
	 	9.2	 	Force majeure in this Framework Agreement means all objective situations that are
unforeseeable, unavoidable and that cannot be overcome.

	10.	 	Confidentiality
	 
	 	 	Without the written permission of the other party, neither party shall make any announcement
in regard to, or provide or disclose to a third party any data or information in relation to
the businesses of the other party or items under this Framework Agreement, unless otherwise
required by legal or government departments or securities regulatory bodies, or for the
purpose of maintaining the listing status of the Unicom Red-chip Company.
	 
	11.	 	Transfer of the rights and obligations
	 
	 	 	Without the written consent of the other party, neither party shall proceed to transfer any
right and obligation prescribed in this Framework Agreement.
	 
	12.	 	Non-waiver
	 
	 	 	Unless otherwise provided by laws, non-exercise or delayed exercise of the rights, powers or
privileges prescribed in this Framework Agreement by either party shall not be regarded as a
waiver of such rights, powers or privileges. Moreover, the exercise in part of such rights,
powers or privilege shall not keep the party from exercising such rights, powers or
privileges in the future.
	 
	13.	 	Notification
	 
	 	 	Notices concerning this Framework Agreement shall be in written form and may be delivered
personally from one party to the other or sent by facsimile or mail. Notices given by
personal delivery shall be deemed effectively given on the date of personal delivery; notices
sent by facsimile transmission shall be deemed effectively given on the date of transmission
as indicated on the fax machine of the sender; notices sent by mail shall be deemed
effectively given on the third (3rd) day (not including statutory holidays) after they were
sent. The notice will become effective once it is delivered.
	 
	14.	 	Applicable laws
	 
	 	 	This Framework Agreement is governed by PRC laws and shall be interpreted and implemented in
accordance with PRC laws.
	 
	15.	 	Dispute settlement
	 
	 	 	In the event of a dispute between the two parties regarding the effectiveness, interpretation
or execution of this Framework Agreement, friendly consultation shall be sought in the first
place. If a case can not be settled through negotiation within thirty (30) days after the
dispute arises, either party is entitled to file a lawsuit with the people’s court of the
corresponding jurisdiction.
	 
	16.	 	Miscellaneous

	 	16.1	 	On condition that the Unicom Red-chip Company complies with or meets the
regulatory requirements on connected transactions, the two parties can proceed to amend
or supplement this Framework Agreement based upon consensus.

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	 	16.2	 	Upon signing of this Framework Agreement, in case of conflict with any agreement
reached prior to this Framework Agreement on any matter relating to the provisions
established in this Framework Agreement, the contents of this Framework Agreement shall
prevail.
	 
	 	16.3	 	This Framework Agreement is divisible, i.e., if any provision of this Framework
Agreement is identified as illegal, invalid or unenforceable at any time, the validity
and execution of other provisions of this Framework Agreement shall not be affected.
	 
	 	16.4	 	This Framework Agreement is produced in four (4) copies, with each party holding
two (2) copies and all the original copies being equally authentic.

     IN WITNESS WHEREOF, this Framework Agreement is executed by the legal representatives or his
authorized representatives of both parties on the date first written above.

Page for Signatures:

China Network Communications Group Corporation (seal)

Legal representative or his authorized representative: (signature)

China Unicom Corporation Limited (seal)

Legal representative or his authorized representative: (signature)

7exv4w41

Exhibit 4.41

 

Framework Agreement for Property Leasing Services

 

Between

China Network Communications Group Corporation

&

China Unicom Corporation Limited

     This Framework Agreement for Property Leasing Services (hereinafter referred to as this
“Framework Agreement”) is signed on August 12, 2008 in Beijing, the People’s Republic of China
(“PRC”) by and between the following two parties:

	 	 	 	 	 
	Party A:	 	China Network Communications Group Corporation (hereinafter referred to as “Netcom Group”)
	 

	 	Registered Address:
	 	No. 156, Fu Xing Men Nei Street, Xicheng District, Beijing
	 

	 	Legal Representative:
	 	Zhang Chunjiang
	 
	 	 	 	 
	Party B:	 	China Unicom Corporation Limited (hereinafter referred to as “CUCL”)
	 

	 	Registered Address:
	 	Level 12, Tower A, Henderson Center, No. 18, Jian Guo Men Nei Avenue, Beijing
	 

	 	Legal Representative:
	 	Chang Xiaobing

Whereas:

	(1)	 	Netcom Group is a state owned enterprise duly incorporated and validly existing under the
laws of the PRC;
	 
	(2)	 	CUCL is a foreign funded enterprise duly incorporated and validly existing under the laws of
PRC, whose equity is 100% held by China United Telecommunications Corporation Limited (the
“Unicom Red-chip Company”, a company duly incorporated and validly existing under the laws of
the Hong Kong Special Administration Region and dually listed on the Hong Kong Stock
Exchange). Approved by the former Ministry of Information Industry (“MII”) of the PRC, CUCL is
mainly engaged in nationwide provision of international and domestic long-distance
communications services (excluding international telecommunications facilities services);
Internet services and IP Telephony services; as well as mobile communications services in 31
provinces, autonomous regions and municipalities, including Beijing, Tianjin, Shanghai,
Liaoning, Hebei, Shandong, Jiangsu, Zhejiang, Fujian, Guangdong, Hubei, Anhui, Sichuan,
Guizhou, Xinjiang, Chongqing, Shaanxi, Guangxi, Henan, Heilongjiang, Jilin, Jiangxi, Shanxi,
Inner Mongolia, Hunan, Hainan, Yunnan, Ningxia, Gansu, Qinghai and Tibet;
	 
	(3)	 	On May 24, 2008, the Ministry of Industry and Information Technology, the National
Development and Reform Commission and the Ministry of Finance jointly issued the “Notice on
Deepening the Reform of China’s Telecommunications System”, which is seen as the guidepost for
the Chinese government to deepen the reform of its telecommunications system by endorsing the
formation of three leading competitive carriers with nationwide network resources, similar
size and strength and the capacity of full service operation. In the above notice, China
Telecom is encouraged to buy China Unicom’s CDMA network and China Unicom is encouraged to
merge with China Netcom. As a response to the call for deepening the reform in regard to
telecommunications restructuring, the Unicom Red-chip Company is to merge with Netcom’s
red-chip counterpart via an agreement (the

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	 	 	“Merger Transaction”). Following the merger, the Netcom Red-chip Company will withdraw from
the Hong Kong Stock Exchange and the New York Stock Exchange to become a wholly owned
subsidiary of the Unicom Red-chip Company;
	 
	(4)	 	Party B needs to establish building rental arrangement with Netcom Group in the service
operation.
	 
	 	 	According to the particular context, “the Lessee” and “the Lessor” refer to Party A (including
Party A’s branches, subsidiaries and other units under its control, but excluding Netcom
Red-chip Company and its affiliates, subsidiaries and other units under its control, the same
below) or Party B (including Party B’s branches, subsidiaries and other units under its
control) or Party A and Party B.
	 
	 	 	According to the Contract Law of the People’s Republic of China and other laws and regulations,
in order to define the rights and obligations of the two parties, the two parties sign this
Framework Agreement as below through friendly consultation:
	 
	1.	 	Lease Scope and Purpose

	 	1.1	 	For the need of production and operation, the two parties agreed to lease the
buildings owned by its branch companies, subsidiary companies, affiliated companies or
enterprises or units under its control (“subordinate companies”) to each other. The two
parties confirm that their subordinate companies have agreed to commission the two
parties to exert the building lease rights under this Framework Agreement.
	 
	 	 	 	Party A agreed to lease the buildings owned by itself (“Buildings of Party A”) under items
of this Framework Agreement to Party B; Party B agreed to rent buildings owned by Party A
and pay the consideration according to this Framework Agreement. At the same time, Party B
agreed to lease the buildings owned by itself (“Buildings of Party B”) under items of this
Framework Agreement to Party A; Party A agreed to rent buildings owned by Party B and pay
the consideration according to this Framework Agreement.
	 
	 	1.2	 	The two parties agreed that the buildings rented by either party are used for
legal service operation in the licensed scope of the buildings. With the written consent
by either party of this Framework Agreement, the other party could sublease the
buildings to the third party, but the sublessor still assumes the rights and obligations
under this Framework Agreement for the buildings.

	2.	 	Leasehold

	 	2.1	 	The leasehold of the buildings under this Framework Agreement is determined by
the two parties according to the specific conditions of these rental buildings, but it
is subjected to Article 2.2 of this Framework Agreement.
	 
	 	2.2	 	The Lessor may terminate the lease of building under this Framework Agreement
immediately if:

	 	(1)	 	without the consent of the Lessor, the Lessee subleases or lends
buildings owed by the Lessor to others (except for subleasing or lending to
affiliated or associated companies of the Lessee );
	 
	 	(2)	 	The Lessee violates regulations of the rental purpose agreed by the
two parties, or uses buildings owned by the Lessor for any unlawful purpose and
damages public interests.

	 	2.3	 	If the Lessee does not execute renewal rights according to this Framework
Agreement but can not return the buildings to the Lessor owing to business operations,
the Lessor shall extend the leasehold as appropriate and is entitled to charge the
Lessee rentals for the extended leasehold.

	3.	 	Rental and Method of Payment

	 	3.1	 	The two parties have agreed that the specific rental of the buildings rented by
each other will be determined on the basis of the market price or depreciation and tax
and refer to the rental

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	 	 	 	standard prescribed by local commodity price departments, and take into account the
specific needs of the two parties. The rental determined could not be higher than the
market price.
	 
	 	3.2	 	The two parties have agreed that the specific executing documents for the rental
of individual building can be signed to set forth terms and conditions applicable to the
individual building, but the executing documents shall conform to the principle,
compendium and terms and conditions stipulated in this Framework Agreement.
	 
	 	3.3	 	The rents stated in the term shall be re-examined once every year. The two
parties shall consult to determine whether to adjust and the specific rents after
adjustment, but the rents after adjustment shall not be higher than the market price.
	 
	 	3.4	 	The rents shall be charged quarterly. The settlement day is the last day of each
quarter. In case of Saturday, Sunday or public holidays, the settlement day shall be
extended to the first working day after holidays.
	 
	 	3.5	 	All the overhead expenses and other expenditure charged by the State or local
government for the rental buildings caused by the rental of buildings owned by Party A
or Party B shall be born by the Lessor, except as otherwise set forth in this Framework
Agreement.

	4.	 	Building Repair During the Leasehold
	 
	 	 	The Lessor shall be responsible for repairing the buildings it rents out and bear the resulting
costs. The Lessee shall carry out necessary maintenance of the rented buildings including the
reconstruction of main structure after getting the Lessor’s consent and reaching written
framework agreement, except as set forth in this Framework Agreement. But the Lessor shall not
refuse or delay the main structure reconstruction required by the Lessee except for legitimate
reasons. For the modification and addition not touching upon the main structure, the Lessee may
carry out the maintenance at its own expense without giving notification to and getting consent
of the Lessor. If the Lessee or Lessor conducts maintenance, modification or addition during
the leasehold, the additions or value added to the buildings shall be granted to the Lessor.
	 
	5.	 	The Alteration of the Lessor

	 	5.1	 	If the Lessor transfers buildings owned by itself to the third party, this Framework
Agreement shall be valid to the new building owner.
	 
	 	5.2	 	If the Lessor sells its building ownership, it is required to notify the Lessee three
months in advance. The Lessee has, under equal conditions, the right of first refusal to
purchase.

	6.	 	Representations, Assurances and Commitments

	 	6.1	 	Each party makes the following statement and assurance to the other party that
each party is the enterprise or organization incorporated for effective duration in
accordance with PRC laws, with full power and authority (including laws, rights and
warrant inside the company or in other fields):

	 	(1)	 	holds, leases, rents and operates its property;
	 
	 	(2)	 	signs and implements this Framework Agreement.

	 	6.2	 	The Lessor makes the statement and promise to the Lessee as below:

	 	(1)	 	The Lessor is the only legitimate possessor of the ownership of its
rental buildings and entitled to lease the buildings to the Lessee for payment by
itself under regulations set forth in this Framework Agreement;
	 
	 	(2)	 	The rented buildings are with complete structure and in good
condition when delivered to the Lessee. The purpose of the Lessee stated in this
Framework Agreement could be fulfilled;

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	 	(3)	 	The Lessor promises that if any inaccuracy lies in the guarantee, the
Lessee has rights to terminate this Framework Agreement at any moment. At the same
time; the Lessor agrees to hold the liability for all the economic losses of the
Lessee.

	 	6.3	 	The Lessee makes the statement and promise to the Lessee as below:

	 	(1)	 	The Lessee shall pay rents to the Lessor pursuant to Article 3 in
this Framework Agreement. If the Lessee fails to pay the rents by the due date,
then the Lessee shall pay the delaying payment at the rate of 0.05% on a daily
basis (calendar day, the same hereinafter).
	 
	 	(2)	 	During the leasehold, the Lessee shall abide by corresponding laws
and regulations of the PRC. In case of problems such as security, fire prevention,
environment protection etc., the Lessee shall hold the liability by itself.

	 	6.4	 	Party B promises to provide the accounting records of Party B and its connected
persons about connected transaction to auditors of Unicom Red Chip Company.
	 
	 	6.5	 	The two parties make a statement and promise to each other that any terms and
conditions in this Framework Agreement does not violate its constitution or laws and
regulations of the PRC.
	 
	 	6.6	 	The two parties affirm that each party is obligated to take further necessary
actions or measures in order to achieve the tenet of this Framework Agreement and its
content and provisions of connected transactions in the listing rules stipulated by the
Stock Exchange of Hong Kong in the case of Party B as the subsidiary of the listed
company.

	7.	 	Effectiveness
	 
	 	 	This Framework Agreement will take effect on the next day following the final
implementation of the Merger Transaction.
	 
	8.	 	Force Majeure

	 	8.1	 	If a party is unable to implement or fully implement the obligations prescribed
in this Framework Agreement as a result of force majeure, then it will not undertake any
liability for breach of the agreement, in which case the it shall, within fifteen (15)
days following the occurrence of force majeure, inform the case to the other party in
writing and provide proof therewith, and at the same time make every effort to minimise
the losses incurred by force majeure. Within a reasonable period of time in the wake of
force majeure, the party falling victim to force majeure shall undertake to continue
implementation of this Framework Agreement.
	 
	 	8.2	 	Force majeure in this Framework Agreement means all objective situations that are
unforeseeable, unavoidable and that cannot be overcome.

	9.	 	Confidentiality
	 
	 	 	Without the written permission of the other party, neither party shall make any announcement in
regard to, or provide or disclose to a third party any data or information in relation to the
businesses of the other party or items under this Framework Agreement, unless otherwise
required by legal or government departments or securities regulatory bodies, or for the purpose
of maintaining the listing status of the Unicom Red-chip Company.
	 
	10.	 	Transfer
	 
	 	 	Without the written consent of the other party, neither party shall proceed to transfer any
right and obligation prescribed in this Framework Agreement.

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	11.	 	Non-Waiver
	 
	 	 	Unless otherwise provided by laws, non-exercise or delayed exercise of the rights, powers or
privileges prescribed in this Framework Agreement by either party shall not be regarded as a
waiver of such rights, powers or privileges. Moreover, the exercise in part of such rights,
powers or privilege shall not keep the party from exercising such rights, powers or privileges
in the future.
	 
	12.	 	Notification
	 
	 	 	Any notification relating to this Framework Agreement shall be made in writing by one party to
the other party via personal delivery, fax or mail. A notification shall be regarded as
“issued” upon delivery by hand, or the “sent” indication is displayed on the sender’s fax
machine, or on the third working day (subject to extension in case of statutory holidays) after
sending of the mail. Any notification upon issuance shall be regarded as entering into force.
	 
	13.	 	Liability for Breach of Contract

	 	13.1	 	Failure in performing any of its obligations by either party shall be deemed as
breach of this Framework Agreement. The party in breach shall rectify such default
within five (5) days following the receipt of notice of setting forth the specifics of
such default (except for the case agreed in Paragraph 1 of Article 6.3). If the default
has not been cured after five (5) days, the party in breach shall hold the liability for
all the direct and predictable losses arising from the default.
	 
	 	13.2	 	If the extension of use of rental buildings is caused by the Lessor as a result
of negligence, the leasehold under this Framework Agreement shall be extended.

	14.	 	Applicable Laws and Disputes Settlement

	 	14.1	 	This Framework Agreement is governed by PRC laws and shall be interpreted and
implemented in accordance with PRC laws.
	 
	 	14.2	 	All the disputes arising from the execution of or related with this Framework
Agreement shall be settled through friendly consultation between the two parties. In
case of failure to settle such disputes through consultation, either party is entitled
to file a lawsuit with the people’s court of the corresponding jurisdiction.

	15.	 	Miscellaneous

	 	15.1	 	On condition that the Unicom Red-chip Company complies with or meets the
regulatory requirements on connected transactions, the two parties can proceed to amend
or supplement this Framework Agreement based upon consensus.
	 
	 	15.2	 	Upon signing of this Framework Agreement, in case of conflict with any agreement
reached prior to this Framework Agreement on any matter relating to the provisions
established in this Framework Agreement, the contents of this Framework Agreement shall
prevail.
	 
	 	15.3	 	This Framework Agreement is divisible, i.e., if any provision of this Framework
Agreement is identified as illegal, invalid or unenforceable at any time, the validity
and execution of other provisions of this Framework Agreement shall not be affected.
	 
	 	15.4	 	The original Framework Agreement is produced in four (4) copies, with each party
holding two (2) copies and all the original copies being equally authentic.

     IN WITNESS WHEREOF, this Framework Agreement is executed by the legal representatives or his
authorized representatives of both parties on the date first written above.

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Page for Signatures:

China Network Communications Group Corporation (seal)

Legal representative or his authorized representative: (signature)

China Unicom Corporation Limited (seal)

Legal representative or his authorized representative: (signature)

6

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