Document:

exv4w42

Exhibit 4.42

 

Framework Agreement for Ancillary Telecommunications Services

 

between

China Network Communications Group Corporation

and

China Unicom Corporation Limited

     This Framework Agreement for Ancillary Telecommunications 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: 12/F, 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 “Merger Transaction”). Following the merger, the
Netcom Red-chip Company will withdraw from the Hong Kong Stock

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	 	 	Exchange and the New York Stock Exchange to become a wholly owned subsidiary of the Unicom
Red-chip Company;

	(4)	 	Netcom Group shall provide corresponding ancillary telecommunications services to Party B in
operation of related telecommunications services.
	 
	 	 	On the basis of equity and fairness and following friendly consultation, Party A (including
Party A’s branches, subsidiaries and other units under its control, but excluding the Netcom
Red-chip Company and its affiliates, subsidiaries and other units under its control, the same
below) and Party B (including Party B’s branches, subsidiaries and other units under its
control, the same below) enters into the following Framework Agreement concerning the provision
of ancillary telecommunications services:
	 
	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 ancillary telecommunications
services provided to Party B under this Framework Agreement, and Party B shall fulfil its
obligations in making the related payment.
	 
	 	1.2	 	The terms of the ancillary telecommunications services provided by Party A under
this Framework Agreement shall be no inferior to the terms of the same 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 ancillary telecommunications services under this Framework Agreement, Party A
shall notify Party B in writing in a timely manner, and try its best to assist Party B in
obtaining the same or similar services from other channels.
	 
	 	1.4	 	The ancillary telecommunications services provided under this Framework Agreement
by Party A to Party B shall comply with the usage agreed by both parties and the related
national standards.
	 
	 	1.5	 	For the damages caused by any Party to the other under this Framework Agreement due
to the breach of this agreement, the defaulting Party shall be responsible to make timely
and full compensation to the other for the breach.
	 
	 	1.6	 	Any Party under this Framework Agreement, in fulfilling its obligations under this
agreement, shall be provided with reasonable and necessary assistance by the other Party.

	2.	 	The basic contents of the ancillary telecommunications services

	 	2.1	 	The ancillary telecommunications services under this Framework Agreement provided
by Party A to Party B includes: various pre-sale, on-sale and after-sale
telecommunications services such as assembling, dismantling, removing and repairing of
telecommunications equipments in the customer end, sales agency services of some of the
communications products, printing and invoice delivery services, collection of phone
bills, production of phone cards, and development of customers, etc.; collection and
feedback of the market and customer information; maintenance of the ancillary facilities
(such as the air-conditioner and fire control equipments) in the communications equipment
rooms, and maintenance of the telephone booths, etc.

	3.	 	Pricing principles

	 	3.1	 	The pricing of the ancillary telecommunications services and/or charging rate under
this Framework Agreement shall be determined with reference to the principles and order
set forth in this article: follow the government-fixed price if there is any; follow the
government-recommended price if there is any; follow the market price if there is no
government-fixed price nor government-recommended price; if there is no government-fixed
price, government-recommended price nor market price, the price shall be determined
through consultation by both parties. However, the agreed price should be composed of the
reasonable costs and the reasonable profits, among which the “reasonable costs” refers to
the costs agreed by both parties after consultation.
	 
	 	 	 	The “government-fixed price” in this article refers to the price set up by the price
administrations or other related departments according to the Price Law of the People’s
Republic of China, and the authority and scope of the pricing.

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	 	 	 	The “government-recommended price” in this article refers to the price set up by the
operators according to the Price Law of the People’s Republic of China, and guided by the
benchmark price and its floating rate provided by the price administrations or other
related departments according to the pricing authority and scope.
	 
	 	 	 	The “market price” in this article refers to the price set up by the operators and formed
through market competition. The market price is determined according to the following
order: (1) the price charged by an independent third party in providing the service under
normal trading conditions in the service provision areas or the neighborhoods; or (2) the
price charged by an independent third party in providing the service under normal trading
conditions in the PRC.
	 
	 	3.2	 	The specific amount of service charge under this Framework Agreement, shall be
calculated in accordance with related accounting principles of the PRC (if applicable)
which are applicable from time to time.
	 
	 	3.3	 	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).
	 
	 	3.4	 	It is estimated that both parties will formulate concrete implementation document
from time to time on providing related service according to the needs; this concrete
implementation document should record the specific service needed by Party B at that
time, as well as the binding principles, guide lines, terms and conditions of this
Framework Agreement.

	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 service provision.
	 
	 	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 penalty 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.

	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 connected 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 fees in accordance with this
Framework Agreement and the concrete implementation documents;

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	 	(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 fees
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 and supervise its subsidiaries or affiliates or
other entities under its control to provide high quality service 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.

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

	6.	 	Priorities

	 	6.1	 	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 service, Party B shall give
preference to Party A.
	 
	 	6.2	 	Party A undertakes to Party B that the conditions provided by Party A to a third
party concerning the same or similar service in this Framework Agreement shall not be
better to those conditions provided by Party A to Party B.
	 
	 	6.3	 	Party A is entitled to provide related service to a third party under the condition
that the service provided by Party A to Party B according to this Framework Agreement
shall not be affected.

	7.	 	Representations, Assurances and Commitments
	 
	 	 	Each party of this Framework Agreement makes the following statements, 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;

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	 	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.	 	Effectiveness
	 
	 	 	This Framework Agreement will take effect on the next day following the final implementation of
the Merger Transaction.
	 
	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 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.
	 
	 	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 of this Framework Agreement
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 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
	 
	 	 	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.
	 
	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
	 
	 	 	Any dispute between the two parties concerning the effectiveness, interpretation or
implementation of this Framework Agreement shall be settled through friendly consultation. 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.

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	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.
	 
	 	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)

6exv4w43

Exhibit 4.43

 

Framework Agreement for Support Services

 

between

China Network Communications Group Corporation

and

China Unicom Corporation Limited

     This Framework Agreement for Support 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

1

 

	 	 	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 “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 is in need of the support services provided by Netcom Group in the operations of its
telecommunications business.
	 
	 	 	On the basis of equality and reasonableness and through friendly consultations, Party A and
Party B reach the following framework agreements on the matters with respect to the provision
of support services by Party A (including subsidiaries and branches of Party A and other
entities controlled by Party A and excluding Netcom Red Chip, subsidiaries and branches of
Netcom Red Chip, and other entities controlled by Netcom Red Chip, the same below) to Party B
(including subsidiaries and branches of Party B and other entities controlled by Party B, the
same below).
	 
	1.	 	Basic Principles

	 	1.1	 	With respect to the support services provided by Party A for Party B pursuant to
this Framework Agreement, Party A has the right to charge reasonable service fees
pursuant to this Framework Agreement and Party B has the obligation to make such
payments.
	 
	 	1.2	 	The terms and conditions for the provision of support services under this
Framework Agreement by Party A shall be no worse than the terms and conditions offered
by Party A for any third party for the provision of identical or similar services.
	 
	 	1.3	 	In the event that Party A fails to perform all or part of its obligations to
provide the support services under this Framework Agreement due to any reasons other
than its own fault, Party A shall promptly inform Party B in writing and make the utmost
efforts to assist Party B in obtaining identical or similar services from other
channels.
	 
	 	1.4	 	The support services provided by Party A for Party B shall comply with the
purposes agreed by the Parties and related standards of the State.
	 
	 	1.5	 	In the event that one party suffers loss as a result of the violation against the
provisions of this Framework Agreement by the other party, the breaching party shall
undertake timely and full liability to pay compensation for the breach of contract.
	 
	 	1.6	 	When one party performs the obligations under this Framework Agreement, the other
party shall provide reasonable and necessary assistance.

	2.	 	Basic Contents of Support Services
	 
	 	 	The compressive services provided by Party A under this Framework Agreement include:
	 
	 	 	dining services, equipment leasing services (excluding the facilities/equipment covered in
this Framework Agreement for Telecommunications Facilities Leasing), motor vehicles services,
medical and healthcare services, labour services, security services, hotel services,
conference services, flower and gardening services (landscaping), decoration services,
commodity sales services, basic construction agency services, equipment maintenance services,
market development services, technical support services, research and development services,
hospitality services, parking services, employee training services, warehousing services
(such as warehousing telecommunications-related equipment, including spare parts and
circuits), advertising (such as the production and publication of Party B’s advertisements on
Party A’s media) and publicity/printing services, and property management services.

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	3.	 	Pricing Principles

	 	3.1	 	The pricing and/or charging standards for the support services under this
Framework Agreement shall follow the principles and procedures stipulated in this
clause. Where the Government fixes a price for such a service, the price fixed by the
Government shall be followed. Where the Government recommends (or sets a guidance price)
a price for such a service, the price shall be determined with the reference to the
price recommended by the Government. Where there is neither a government-fixed price nor
a government-recommended price but there is a market-based price for such a service, the
price shall be determined with reference to the market-based price. Where there is
neither a government-fixed price nor a government-recommended price, nor the
market-based price, the price shall be determined by the Parties through negotiations.
The negotiated price shall be determined on a reasonable cost plus reasonable profit
basis. The reasonable cost shall be the cost agreed by the Parties through negotiations.
	 
	 	 	 	The government-fixed price referred in this clause is the price fixed by the price
administration authorities of the Government or other related agencies within their
pricing purview and scope in accordance with the provisions of the Price Law of the
PRC.
	 
	 	 	 	The government-recommended price (or government-guidance price) referred in this
clause is a basic price and floating ranges set by the price administration
authorities of the Government or other related agencies within their pricing purview
and scope in accordance with the provisions of the Price Law of the PRC. The
enterprises could, within the limits of the guidance, make their own decisions on
prices.
	 
	 	 	 	The market-based price referred in this clause is the price set by the enterprises
with consideration to the competition in the market. The market-based price shall be
determined in the follow procedures: (1) the price charged by the independent third
party for providing such a service at the same place or in the neighbouring areas
under normal market conditions; or (2) the price charged by the independent third
party for providing such a service in the territory of China under normal market
conditions;
	 
	 	3.2	 	The specific amount of service fees under this Framework Agreement shall be
calculated in accordance with the accounting standards of the PRC (if applicable) from
time to time.
	 
	 	3.3	 	Party A and Party B shall audit the pricing standards for the next financial year
for every service and facility provided under this Framework Agreement before December
31 of the year (if necessary).
	 
	 	3.4	 	It is expected that Party A and Party B shall conclude specific implementation
agreements for related services from time to time as necessary. This specific
implementation agreements shall identify the specific services required by Party B and
contain provisions in relation to the binding principles, standards, terms and
conditions of this Framework Agreement.

	4.	 	Payment of Service Fees

	 	4.1	 	Party B shall pay service fees for related services it obtains from Party A or
Party A’s consignee in accordance with the pricing and charging standards stipulated in
this Framework Agreement, the supplementary agreements to this Framework Agreement (if
any) and the specific implementation agreement.
	 
	 	4.2	 	In case that Party B fails to pay service fees for related services on time in
accordance with this Framework Agreement, the supplementary agreements to this Framework
Agreement (if any) and the specific implementation agreements, Party B shall pay a late
fee of 0.05% of the amount of the outstanding amount per day (calendar day, the same
below) as of the day when the payment is overdue. When the overdue days exceed 60
(sixty) days, Party A may inform Party B in writing of terminating related services. If
Party B fails to make payment for related services 30 (thirty) days after it receives
the notice, Party A may declare the termination of related services. When such services
are terminated or suspended, it shall not

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	 	 	 	affect the rights and obligations of both Party A and Party B arising out of this
Framework Agreement.

	5.	 	Rights and Obligations of the Parties

	 	5.1	 	Rights and Obligations of Party B

	 	5.1.1	 	Rights of Party B

	 	(1)	 	Party B has the right to obtain services from
Party A pursuant to the provisions of this Framework Agreement;
	 
	 	(2)	 	With respect to the connected transactions under
this Framework Agreement, the auditor of Unicom Red-chip Company has the
right to examine the accounting records of Party A and Party A’s
connected parties.

	 	5.1.2	 	Obligations of Party B

	 	(1)	 	Party B shall ensure that its subsidiaries,
branches and other controlled entities will sign specific implementation
agreement with Party A pursuant to this Framework Agreement and the
supplementary agreements to this Framework Agreement (if any) and/or
urge its subsidiaries, branches and other controlled entities to do so;
	 
	 	(2)	 	Party B is obliged to coordinate the matters in
relation to the specific implementation agreement;
	 
	 	(3)	 	Party B is obliged to pay related service fees
pursuant to the provisions of this Framework Agreement and the specific
implementation agreements;
	 
	 	(4)	 	Party B pledges to compensate for any loss caused
upon Party A or the other party of the specific implementation agreement
by its violation against any of the provisions of this Framework
Agreement or the specific implementation agreement.

	 	5.2	 	Rights and Obligations of Party A

	 	5.2.1	 	Rights of Party A

	 	(1)	 	Party A has the right to obtain service fees from
Party B pursuant to the provisions of this Framework Agreement;
	 
	 	(2)	 	Party A has the right to provide the same type of
services to the third party on the conditions of guaranteeing the
offering of the services stipulated in this Framework Agreement to Party
B.

	 	5.2.2	 	Obligations of Party A

	 	(1)	 	Party A shall ensure that its subsidiaries,
branches and other controlled entities will sign specific implementation
agreement with Party B pursuant to this Framework Agreement, the
supplementary agreements to this Framework Agreement (if any) and/or
urge its subsidiaries, branches and other controlled entities to do so;
	 
	 	(2)	 	Party A is obligated to provide services of
outstanding quality for Party B and supervise its subsidiaries, branches
and other controlled entities to provide services of outstanding quality
for Party B;
	 
	 	(3)	 	Party A is obliged to coordinate the matters in
relation to the specific implementation agreement;

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	 	(4)	 	Party A pledges to compensate for any loss caused
upon Party B or the other party of the specific implementation agreement
by its violation against any of the provisions of this Framework
Agreement or the specific implementation agreement.

	 	5.3	 	Party A and Party B hereby confirm that they have the obligation to further take
other necessary actions and measures for the fulfilment of the purposes and agreed
contents of this Framework Agreement and that under the conditions that Party B is a
subsidiary of Unicom Red-chip Company, this Framework Agreement is in compliance with
the rules governing connected transactions in the Listing Rules of Hong Kong Stock
Exchange.

	6.	 	Priorities

	 	6.1	 	For the same service, Party B shall grant preference to Party A if terms and
conditions offered by the third party are no better than those offered by Party A.
	 
	 	6.2	 	Party A pledges that the conditions offered by Party A for the same or similar
services under this Framework Agreement to the third party will not be better than the
terms offered to Party B.
	 
	 	6.3	 	Party A has the right to provide the same type of services to third parties on
the condition of not affecting the offering of the services pursuant to this Framework
Agreement to Party B.

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

	 	7.1	 	Each party is independent legal person duly established and existing under the
laws of China and it has full power and authorization (including but not limited to
obtaining the approval, agreement or license from related government authorities) to
make and execute this Framework Agreement;
	 
	 	7.2	 	No provision in this Framework Agreement shall constitute a violation against the
Articles of Association, documents of such nature or the laws and regulations of the
PRC;
	 
	 	7.3	 	Each party shall make the utmost efforts to adopt or urge others to adopt any
necessary, appropriate or possible actions in accordance with the laws and regulations
of China and this Framework Agreement.

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

	 	9.1	 	In the event that either party of this Framework Agreement fails to perform part
or all of the obligations stipulated in this Framework Agreement owing to a Force
Majeure event, the prevented party shall be exempted from the breach of contract
liabilities. But the prevented party shall inform the other party and provide
authoritative proof regarding the Force Majeure event in writing within 15 (fifteen)
days when the Force Majeure event happens and make the utmost efforts to minimize the
loss caused by the Force Majeure event. Within a reasonable period time after the
influence of the Force Majeure event is eliminated, the prevented party shall continue
to execute this Framework Agreement.
	 
	 	9.2	 	Force majeure in this Framework Agreement means all objective situations that are
unforeseeable, unavoidable and that cannot be overcome.

5

 

	10.	 	Confidentiality
	 
	 	 	Without the written agreement of the other party, one party shall not make public
announcement regarding the materials and information in relation to the business of the other
party or the matters of this Framework Agreement or provide or disclose such materials and
information for or to the third party, except as otherwise required by the laws of China,
government authorities, or securities regulatory authorities or for the purpose of
maintaining Unicom Red-chip Company.
	 
	11.	 	Transfer of Rights and Obligations
	 
	 	 	Without the written consent of the other party, neither party shall transfer any rights and
obligations under this Framework Agreement.
	 
	12.	 	Non-Waiver
	 
	 	 	Unless otherwise stipulated by the laws, failure or delay on the part of any party to
exercise any right, power or privilege under this Framework Agreement shall not operate as
the waiver of such right, power or privilege thereof and the exercise of such right, power or
privilege in part by one party shall not affect the exercise of such right, power or
privilege in the future.
	 
	13.	 	Governing Laws
	 
	 	 	This Framework Agreement is governed by PRC laws and shall be interpreted and implemented in
accordance with PRC laws.
	 
	14.	 	Notification
	 
	 	 	Notifications required to be given by one party pursuant to this Framework Agreement shall be
made in writing and may be delivered personally, by facsimile transmission or by courier
service. 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
at the time as indicated by the printer. Notices sent by courier service shall be deemed
effectively given on the third working day (to be extended to the next day in case of
statutory holidays) after they are posted. The notice shall come into effect since the date
of delivery.
	 
	15.	 	Dispute Settlement
	 
	 	 	Any dispute over the effect, interpretation or exercise of this Framework Agreement shall be
first resolved through friendly consultations by both parties. In the event that the dispute
is not resolved within 30 (thirty) days since the start of the dispute, either party can
submit the dispute case to the local people’s court that have jurisdiction over the case for
legal proceedings.
	 
	16.	 	Miscellaneous

	 	16.1	 	Unicom Red-chip Company, for the purpose of complying with or satisfying the
regulatory requirements on connected transactions, may amend and supplement this
Framework Agreement after the friendly consultations.
	 
	 	16.2	 	In case of any discrepancy between this Framework Agreement and the agreements
made by the Parties prior to the signing of this Framework Agreement, this Framework
Agreement shall prevail after being signed by the Parties.
	 
	 	16.3	 	This Framework Agreement is severable. If any provision of this Framework
Agreement is held illegal, invalid or unenforceable, the effect and exercise of other
provisions of this Framework Agreement shall not be affected.
	 
	 	16.4	 	This Framework Agreement is made in 4 (four) original copies, with each party
holding two copies. All the copies are equally binding.

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     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)

7

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