Document:

exv4w46

Exhibit 4.46

 

TRANSFER AGREEMENT

IN CONNECTION WITH THE COMPREHENSIVE SERVICES AGREEMENT

 

between

China United Telecommunications Corporation Limited

and

China Unicom Corporation Limited

and

China Netcom Group Corporation Limited

August 12, 2008

     This Transfer Agreement in connection with the Comprehensive Services Agreement (hereinafter
referred to as this “Transfer Agreement”) is entered into on October 26, 2006 in Beijing, the
People’s Republic of China (hereinafter referred to as the “PRC”) by and among the following
parties:

	(1)	 	Transferor:
	 
	 	 	China United Telecommunications Corporation Limited (hereinafter referred to as “Unicom A
Share Company”)

Address: 29/F, No.1033, Changning Road, Shanghai

Legal Representative: Chang Xiaobing
	 
	(2)	 	Transferee:
	 
	 	 	China Unicom Corporation Limited (hereinafter referred to as “Unicom Operating Company”)

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

Legal Representative: Chang Xiaobing
	 
	 	 	China Netcom (Group) Corporation Limited (hereinafter referred to as “Netcom Operating
Company”)

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

Legal Representative: Zuo Xunsheng

WHEREAS:

	(1)	 	China United Telecommunications Corporation (hereinafter referred to as “Unicom Group”) is a
limited liability company duly incorporated and validly existing under the laws of PRC and
engages in the operation of comprehensive telecommunications business. Unicom A Share Company
is a joint stock limited company duly incorporated and validly existing under the laws of PRC
and its shares have been listed and traded on the Shanghai Stock Exchange (hereinafter
referred to as the “SSE”) since October 9, 2002. Unicom Group is the controlling shareholder
of Unicom A Share Company;
	 
	(2)	 	Unicom A Share Company indirectly controls China Unicom Limited (hereinafter referred to as
“Unicom Red Chip”) through China Unicom (BVI) Limited (hereinafter referred to as “Unicom

1

 

	 	 	BVI”). Unicom Red Chip is a limited liability company duly incorporated and validly existing
under the laws of the Hong Kong Special Administrative Region (hereinafter referred to as
“Hong Kong”) and its shares are listed and traded in Hong Kong and the U.S. respectively;
	 
	(3)	 	Unicom Operating Company is a foreign funded enterprise duly incorporated and validly
existing under the laws of PRC, whose equity is 100% held by Unicom Red Chip. Unicom Operating
Company 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;
	 
	(4)	 	Netcom Operating Company is a foreign funded enterprise duly incorporated and validly
existing under the laws of PRC, and is wholly owned by China Netcom Group (Hong Kong) Limited
(a company duly incorporated and validly existing under the laws of Hong Kong with its shares
listed on the Stock Exchange of Hong Kong Limited and New York Stock Exchange, hereinafter
referred to as “Netcom Red Chip”). Netcom Operating Company mainly engages in the operation of
related telecommunications business in 10 provinces, autonomous regions and municipalities,
including Beijing, Tianjin, Hebei, Henan, Shandong, Liaoning, Heilongjiang, Jilin, Inner
Mongolia and Shanxi;
	 
	(5)	 	On August 22, 2002, Unicom Group and Unicom A Share Company signed a Memorandum in respect to
transactions between Unicom Group or its subsidiaries (excluding Unicom A Share Company and
subsidiaries controlled by Unicom A Share Company) and Unicom Red Chip indirectly controlled
by Unicom A Share Company and its subsidiaries after the listing of the shares of Unicom A
Share Company (hereinafter referred to as “Memorandum on Connected Transactions”). According
to the understanding reached under the Memorandum on Connected Transactions, if based on the
Rules Governing the Listing of Shares on Shanghai Stock Exchange (hereinafter referred to as
the “SSE Listing Rules”) applicable from time to time, transactions between Unicom Red Chip
Company or its subsidiaries and Unicom Group or its subsidiaries (excluding Unicom A Share
Company and its subsidiaries) are subject to the approval of minority shareholders of Unicom A
Share Company, and at the same time, based on the Rules Governing the Listing of Securities on
the Stock Exchange of Hong Kong Limited (hereinafter referred to as the “HKSE Listing Rules”)
applicable from time to time, they are deemed to be connected transactions that are subject to
the approval of the minority shareholders of Unicom Red Chip, such connected transactions
shall be conducted in two steps. First step: an agreement shall be entered into between Unicom
Group or its subsidiaries (excluding Unicom A Share Company and subsidiaries controlled by it)
and Unicom A Share Company or Unicom BVI in respect of any proposed transaction to specify the
rights and obligations of the parties under the agreement (including but not limited to Unicom
Group agreeing to the transfer of rights and obligations of Unicom A Share Company or Unicom
BVI under agreement to Unicom Red Chip or its subsidiaries); Second step: the transfer of the
rights and obligations under the above-mentioned agreement by Unicom A Share Company or Unicom
BVI to Unicom Red Chip or its subsidiaries;
	 
	(6)	 	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 services 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 is to merge with Netcom Red Chip 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;

2

 

	(7)	 	For the purpose of the operation of telecommunications business by Unicom Red Chip and its
subsidiaries, pursuant to the relevant provisions under the SSE Listing Rules, HKES Listings
Rules and Memorandum on Connected Transactions, Unicom Group and its subsidiaries (excluding
Unicom A Share Company and subsidiaries controlled by it), through Unicom A Share Company,
entered into the Comprehensive Services Agreement, the Comprehensive Services Agreement based
on the Artificial Platform and the Building Lease Agreement (hereinafter referred to as the
“Original Comprehensive Services Agreement”) with Unicom Operating Company in 2006 and
pursuant to the above agreements, arrangements have been made for a series of continuing
connected transactions (hereinafter referred to as “Continuing Connected Transaction
Arrangements”), which have been announced in accordance with the respective listing rules
applicable to Unicom A Share Company and Unicom Red Chip and approved by their respective
independent shareholders. The above Continuing Connected Transaction Arrangements have a term
of 3 years, commencing on January 1, 2007 and ending on December 31, 2009.
	 
	(8)	 	On October 26, 2006, Unicom Group and Unicom A Share Company entered into the Comprehensive
Services Agreement.

     Based on the actual implementation and amendments made since the Original Comprehensive
Services Agreement came into effect, after the joint review and discussion and on the basis of
equality and mutual benefit, the parties hereby agree on the following:

	1.	 	Subject to the fulfillment of the conditions specified in Article 6 of this Transfer
Agreement, the Transferor hereby agrees to transfer all its rights and obligations under the
Comprehensive Services Agreement and its annexes to the Transferee, and the Transferee hereby
agrees to accept the transfer of the rights and obligations of the Transferor under the
Comprehensive Services Agreement.
	 
	2.	 	Once the Transferor has transferred its rights and obligations under the Comprehensive
Services Agreement to the Transferee, the Transferee shall immediately assume all the rights
and obligations of the Transferor under the Comprehensive Services Agreement. The Transferor
shall immediately terminate such rights and obligations under the Comprehensive Services
Agreement that have been assumed by the Transferee.
	 
	3.	 	The Transferor hereby confirms that pursuant to Article 6 of the Comprehensive Services
Agreement, Unicom Group has irrevocably agreed that the Transferor may transfer its rights and
obligations under the Comprehensive Services Agreement to the Transferee, and the transfer of
the Transferor’s rights and obligations under the Comprehensive Services Agreement to the
Transferee is not subject to any further consent from Unicom Group.
	 
	4.	 	Each of the parties hereto warrants that it has the rights, powers and authority to enter
into and perform this Transfer Agreement. Upon execution, this Transfer Agreement shall
constitute legal, valid and binding obligations of the parties.
	 
	5.	 	The Transferee agrees to retain and perform the past and future rights and obligations of the
Transferor under the Comprehensive Services Agreement in accordance with the terms and
conditions specified in the Comprehensive Services Agreement within the effective term of the
Comprehensive Services Agreement.
	 
	6.	 	Effectiveness
	 
	 	 	Subject to the fulfillment of the following conditions, this Transfer Agreement shall become
effective simultaneously with the Comprehensive Services Agreement:

	 	6.1	 	The shareholders’ general meeting of Unicom Red Chip approves the transfer by the
Transferor of its rights and obligations under the Comprehensive Services Agreement to
the Transferee pursuant to the applicable laws, regulations and listing rules;

3

 

	 	6.2	 	The shareholders’ general meeting of the Transferor approves the execution and
performance of the Comprehensive Services Agreement pursuant to the applicable laws,
regulations and listing rules;
	 
	 	6.3	 	The Merger Transaction is executed and completed.

	7.	 	Force Majeure
	 
	 	 	If any party is unable to perform the relevant obligations under this Transfer Agreement in
accordance with the applicable provisions as a result of any force majeure events, the
occurrence and consequence of which is unforeseeable or unavoidable and cannot be overcome,
such party shall immediately inform the other party of the situation and within fifteen (15)
days of such occurrence, provide the relevant details and valid supporting documents for the
failure or partial failure in performing or the reasons for the postponement of the
performance of the relevant obligations under this Transfer Agreement and the related
annexes. The parties shall negotiate with each other and decide whether to terminate, partly
waive or postpone the performance of such obligations according to the extent of impact of
the force majeure events on the performance of the obligations.
	 
	8.	 	Confidentiality
	 
	 	 	Save as otherwise required by the laws or relevant regulatory authorities, or for the purpose
of any disclosures to be made by the Transferor to the SSE, or Unicom Red Chip to the HKSE,
neither party shall be entitled to provide or disclose any data or information relating to
the operation of the other party to any companies, enterprises, organizations or individuals
without the permission in writing from the other party.
	 
	9.	 	Non-Waiver
	 
	 	 	Unless otherwise required by the laws, no failure or delay by either party in exercising any
of its rights, powers or privileges shall be deemed to be a waiver of such rights, powers or
privileges, and any partial exercise of the rights, powers or privileges shall not prejudice
the future exercise of such rights, powers or privileges.
	 
	10.	 	Notification
	 
	 	 	Any notice relating to this Transfer Agreement shall be made in writing and delivered by one
party hereto to the other party by hand, by way of facsimile or by mail. If such notice is
delivered by hand, it shall be deemed to have been served upon delivery. If it is sent by
facsimile, it shall be deemed to have been serviced when the fax machine indicates the fax
has been sent. If such notice is sent by mail, it shall be deemed to have been served on the
third working day (extended in the event of any statutory holidays) after dispatch of the
mail. Any notice shall take effect once served.
	 
	11.	 	Applicable Laws
	 
	 	 	This Framework Agreement is governed by PRC laws and shall be interpreted and implemented in
accordance with PRC laws.
	 
	12.	 	Disputes Settlement
	 
	 	 	All disputes resulting from the execution of this Transfer Agreement or relating to this
Transfer Agreement shall be settled by the parties through friendly negotiations. If an
agreement for the settlement of the dispute cannot be reached within thirty (30) days upon
the request by one party for settling the dispute through negotiation, either party shall be
entitled to refer the dispute to China International Economic and Trade Arbitration
Commission to be solved through arbitration in Beijing by three (3) arbitrators pursuant to
the then effective arbitration rules. The language for arbitration shall be Chinese. The
arbitration decision shall be final and binding on both parties. Unless otherwise required by
the arbitration tribunal, the arbitration fees shall be born by the losing party.

4

 

	13.	 	Miscellaneous

	 	13.1	 	Upon reaching agreements through negotiation, the parties may amend or supplement
this Transfer Agreement and any such amendments or supplements shall take effect after
executed in writing by the legal or authorized representatives of the parties and sealed
with their common seals.
	 
	 	13.2	 	This Transfer Agreement is severable, that is, if any articles under this
Transfer Agreement is confirmed to be in violation of the laws or unenforceable, this
shall not affect the validity and enforceability of any other articles of this Transfer
Agreement.
	 
	 	13.3	 	This Transfer Agreement is signed in six copies with each party holding two
copies. All copies shall have equal legal force.

Page for signatures:

China United Telecommunications Corporation Limited (seal)

Legal representative or his authorized representative: (signature)

China Unicom Corporation Limited (seal)

Legal representative or his authorized representative: (signature)

China Netcom (Group) Corporation Limited (seal)

Legal representative or his authorized representative: (signature)

5exv4w47

Exhibit 4.47

Agreement

On

 

Absorption and Merger of China Netcom (Group) Co., Limited by China United Telecommunications

Corporation Limited

 

Between

China United Telecommunications Corporation Limited,

China Netcom (Group) Co., Limited,

China Unicom (Hong Kong) Limited and

China Netcom Group Corporation (Hong Kong) Limited

October 15, 2008

 

 

Contents

	 	 	 	 	 
	1. FORM OF MERGER

	 	 	5	 
	2. MERGER REFERENCE DATE AND EFFECTIVE DATE OF MERGER

	 	 	5	 
	3. PROFILE OF UNICOM OPERATING COMPANY AFTER COMPLETION OF MERGER

	 	 	6	 
	4. MERGER OF ASSETS

	 	 	7	 
	5. SCHEME FOR SUCCESSION OF CREDITOR’S RIGHTS AND LIABILITIES

	 	 	8	 
	6. INSTITUTIONAL MERGER

	 	 	8	 
	7. ALLOCATION OF EMPLOYEES

	 	 	8	 
	8. AGREEMENT AND THE UNDERTAKING OF AGREEMENT

	 	 	8	 
	9. SUCCESSION OF LITIGATION

	 	 	9	 
	10. TAXES AND EXPENSES

	 	 	9	 
	11. PREREQUISITE FOR MERGER TO TAKE EFFECT

	 	 	9	 
	12. REPRESENTATIONS AND WARRANTIES

	 	 	9	 
	13. APPLICABLE LAWS AND RESOLUTION OF DISPUTES

	 	 	10	 
	14. NOTICE

	 	 	10	 
	15. INTEGRAL AGREEMENT

	 	 	11	 
	16. SEVERABILITY

	 	 	11	 
	17. AMENDMENT

	 	 	11	 
	18. COPY OF AGREEMENT

	 	 	12	 
	19. FORCE MAJEURE

	 	 	12	 
	20. SUCCESSION AND TRANSFER OF RESPONSIBILITIES AND RIGHTS UNDER THE AGREEMENT

	 	 	12	 
	21. DEFAULT AND REMEDIES

	 	 	12	 
	22. TITLES AND HEADINGS

	 	 	12	 

2

 

This Agreement on Absorption and Merger of China Netcom (Group) Co., Limited by China United
Telecommunications Corporation Limited (hereinafter referred to “Merger Agreement” or “this
Agreement”) is entered by the following parties in Beijing, the People’s Republic of China:

1. China United Telecommunications Corporation Limited (hereinafter referred to “Unicom Operating
Company” or “the Merging Party”)

Legal
location: Floor 12, Building 1, Henderson Center, 18 Jianguomennei
Street, Beijing

Legal representative: Chang Xiaobing

2. China Netcom (Group) Co., Limited (hereinafter referred to “Netcom Operating Company” or “the
Combined Party”)

Legal location: Building C, 156 Fuxingmennei Street, Xicheng District, Beijing

Legal representative: Zuo Xunsheng

3. China
Unicom (Hong Kong) Limited (hereinafter referred to “New Unicom
Red-chip Company”)

Legal location: 75th Floor, The Center, 99 Queen’s Road Central, Hong Kong

Legal representative: Chang Xiaobing

4. China Netcom Group Corporation (Hong Kong) Limited (hereinafter referred to “Netcom Red-chip
Company”)

Legal location: Room 6701, The Center, 99 Queen’s Road Central, Hong Kong

Legal representative: Zuo Xunsheng

Whereas

	(1)	 	On May 24, 2008, the Ministry of Industry and Information Technology (MIIT), the National
Development and Reform Commission (NDRC) and the Ministry of Finance jointly issued the
“Announcement on Deepening the Reform of the Structure of the Telecommunications Sector”.
Pursuant to such Announcement, the Chinese Government will continue to deepen the reform of
the structure of the telecommunications sector, supporting the formation of three
telecommunications services providers of comparable scale and standing, each with nationwide
network resources, full-service capabilities and competitive strength, in order to help
optimize the allocation of telecommunications resources and foster market competition. As a
part of the restructuring in the telecommunication sector, China Unicom Limited (hereinafter
referred to “Unicom Red-chip Company”) and Netcom Red-chip Company merged (hereinafter
referred to “Red-chip Company Merger”) by way of agreement arrangement. After the completion
of the Red-chip Company Merger, China Unicom Limited is changed to China Unicom (Hong Kong)
Limited (namely “New Unicom Red-chip Company”). The Red-chip Company Merger took effect on
October 15, 2008.
	 
	(2)	 	After the Red-chip Company Merger took effect, New Unicom Red-chip Company holds 100% of the
equity interest of Netcom Red-chip Company, which holds 100% of

3

 

	 	 	the equity interest of Netcom Operating Company, and New Unicom Red-chip Company holds 100% of
the equity interest of Unicom Operating Company;
	 
	(3)	 	Unicom Operating Company is a foreign invested enterprise incorporated under the PRC law and
legally continuing its operations. Its business scope is as follows: operating fixed-line
local telephone service (including local wireless loop), public telegraphy and user telegraphy
service, domestic communications facilities service in 10 provinces, cities and autonomous
regions including Beijing, Tianjin, Liaoning, Hebei, Shandong, Henan, Shanxi, Jilin, Inner
Mongolia and Heilongjiang; operating nationwide fixed-line domestic long distance telephone
service, fixed-line international long distance telephone service, IP telephone service
(limited to Phone-Phone service), 900/1800MHz GSM 2G digital cellular mobile communications
service, Internet data transmission service, international data communications service, and
26GHz wireless access service; and operating 3.5GHz wireless access service in Beijing,
Shanghai, Tianji, Hebei (excluding Shijiazhuang), Shanxi, Inner Mongolia, Liaoning, Jilin,
Harbin, Hefei, Nanchang, Shandong (excluding Jinan and Qingdao), Zhengzhou, Hunan, Guangdong,
Guangxi, Haikou, Sichuan, Guizhou, Yunnan (excluding Kunming), Shaanxi, Xining, Ningxia and
Xinjiang. It operates domestic Very Small Aperture Terminal (VSAT) communications service,
fixed-line domestic data transmission service, Customer Premises Network (CPN) service,
network hosting service, online data processing and transaction processing service, domestic
Internet virtual private network (VPN) service, Internet data center service, voice mailbox
service, facsimile store and forward service, Internet access service and information service
across the country. It operates wireless data transmission service, X.400 e-mail service and
electronic notice service in Internet information service in 10 provinces, cities and
autonomous regions including Beijing, Tianjin, Liaoning, Hebei, Shandong, Henan, Shanxi,
Jilin, Inner Mongolia and Heilongjiang. It operates communications and information service
related system integration, equipment manufacturing and sales, design and engineering service,
technical development, technical service, technical consulting, technical training; sales and
maintenance of pagers and handset accessories; preparation and sales of telecommunications
cards; customer service; property leasing; and editing, publishing and distributing telephone
directories. (As for those services related with license or special regulations of the
country, they must be operated with license or relevant formalities have to be handled
according to such special regulations).
	 
	(4)	 	Netcom Operating Company is a foreign invested enterprise incorporated under the PRC law and
legally continuing its operations. Its business scope is as follows: As authorized by China
Netcom (Group) Co., Limited, it operates domestic fixed-line telecommunications network and
facilities (including wireless local loop) service, fixed-line telecommunications network
based voice, data, image, multimedia communications and information service; external
settlement in international telecommunications service and exploration in the international
communications market in 10 provinces, cities and autonomous regions including Beijing,
Tianjin, Hebei, Henan, Liaoning, Shandong, Shanxi, Inner Mongolia, Jilin and Heilongjiang. It
operates communications and information service related system integration,

4

 

	 	 	technical development, technical service, information consulting, equipment manufacturing and
sales, design and engineering service; property leasing; design, preparation, release and
agency service of various domestic and foreign advertisements; and editing, publishing and
distributing telephone directories.
	 
	(5)	 	In order to integrate the telecommunications services of New Unicom Red-chip Company in the
territory of China, Unicom Operating Company will merge with Netcom Operating Company by means
of absorption and merger. After such merger, Unicom Operating Company will continue its
operations, Netcom Operating Company will de dissolved and its legal status will be cancelled.

In order to define related rights and obligations of various parties in the merger, an agreement
has been reached as follows:

	1.	 	FORM OF MERGER
	 
	1.1	 	According to terms and conditions of this Agreement, Unicom Operating Company and Netcom
Operating Company agree to conduct this merger by means of absorption and merger, namely
Unicom Operating Company will merge with and absorb Netcom Operating Company. After completion
of this merger, as the absorbing party and continuing party of this merger, Unicom Operating
Company should handle relevant modification registration formalities; as the absorbed party
and discontinuing party of this merger, all the assets, liabilities, rights, businesses and
employees and so on of Netcom Operating Company will enter Unicom Operating Company meanwhile
Unicom Operating Company will handle cancellation registration formalities of Netcom Operating
Company;
	 
	1.2	 	As a wholly-owned subsidiary of New Unicom Red-chip Company, Netcom Red-chip Company agrees
to transfer all its rights in Unicom Operating Company after this merger to New Unicom
Red-chip Company or vest them in New Unicom Red-chip Company without obligation. Namely after
completion of this merger, New Unicom Red-chip Company will hold all equity interests of
Unicom Operating Company after this merger, and Unicom Operating Company will become a
wholly-owned subsidiary of New Unicom Red-chip Company.
	 
	2.	 	MERGER REFERENCE DATE AND EFFECTIVE DATE OF MERGER
	 
	2.1	 	The merger reference date for this merger is December 31, 2008, all the parties agree to
handle property transfer formalities and handover of this merger on the basis of the audited
financial statements on the same day of the merger reference date.
	 
	2.2	 	On the merger reference date and prior to such date, all businesses, assets and all their
resulting gains and losses of Unicom Operating Company and Netcom Operating Company will be
shared and undertaken respectively by them. Following the merger reference date, all
businesses, assets and all their resulting gains and losses of Unicom Operating Company and
Netcom Operating Company will be shared and undertaken by Unicom Operating Company according
to law.
	 
	2.3	 	All the parties under this Agreement hereby confirm that the effective date of the merger is
January 1, 2009 subject to satisfaction of all prerequisites specified in Article

5

 

	 	 	11 of this Agreement.

	3.	 	PROFILE OF UNICOM OPERATING COMPANY AFTER COMPLETION OF MERGER

	 	 	 
	Company Name

	 	China United Telecommunications Corporation Limited
	 
	 	 
	Operating Duration

	 	From April 21, 2000 to April 20, 2050
	 
	 	 
	Legal Representative

	 	Chang Xiaobing
	 
	 	 
	Registered Address

	 	Floor 12, Building 1, Henderson Center, 18
Jianguomennei Street, Beijing
	 
	 	 
	Registration Number

	 	100000400008460
	 
	 	 
	Total Amount of
Investment

	 	RMB 285,422,055,252 yuan
	 
	 	 
	Registered Capital

	 	RMB 138,091,677,827.69 yuan
	 
	 	 
	Scope of Business

	 	It operates fixed-line local telephone service
(including local wireless loop), public telegraphy
and user telegraphy service, domestic
communications facilities service in 10 provinces,
cities and autonomous regions including Beijing,
Tianjin, Liaoning, Hebei, Shandong, Henan, Shanxi,
Jilin, Inner Mongolia and Heilongjiang; operating
nationwide fixed-line domestic long distance
telephone service, fixed-line international long
distance telephone service, IP telephone service
(limited to Phone-Phone service), 900/1800MHz GSM
2G digital cellular mobile communications service,
Internet data transmission service, international
data communications service, and 26GHz wireless
access service; and operating 3.5GHz wireless
access service in Beijing, Shanghai, Tianji, Hebei
(excluding Shijiazhuang), Shanxi, Inner Mongolia,
Liaoning, Jilin, Harbin, Hefei, Nanchang, Shandong
(excluding Jinan and Qingdao), Zhengzhou, Hunan,
Guangdong, Guangxi, Haikou, Sichuan, Guizhou,
Yunnan (excluding Kunming), Shaanxi, Xining,
Ningxia and Xinjiang. It operates domestic Very
Small Aperture Terminal (VSAT) communications
service, fixed-line domestic data transmission
service, Customer Premises Network (CPN) service,
network hosting service, online data processing and
transaction processing service, domestic Internet
virtual private network (VPN) service, Internet
data center service, voice mailbox service,
facsimile store and forward service, Internet
access service and information service across the
country. It operates wireless data transmission
service, X.400 e-mail service and electronic notice
service in Internet information service in 10
provinces, cities and autonomous regions including
Beijing, Tianjin, Liaoning, Hebei, Shandong, Henan,
Shanxi, Jilin, Inner Mongolia and Heilongjiang. It
operates communications and information service
related system integration, equipment manufacturing
and sales, design

6

 

	 	 	 
	 

	 	and engineering service,
technical development, technical service, technical
consulting, technical training; sales and
maintenance of pagers and handset accessories;
preparation and sales of telecommunications cards;
customer service; property leasing; and editing,
publishing and distributing telephone directories.
(As for those services related with license or
special regulations of the country, they must be
operated with license or relevant formalities have
to be handled according to such special
regulations).

	4.	 	MERGER OF ASSETS
	 
	4.1	 	All assets, including but not limited to fixed assets, current assets and so on owned by,
possessed by or used by Netcom Operating Company will be completely given to Unicom Operating
Company.
	 
	4.2	 	Fixed assets

(1) By fixed assets, they refer to those fixed assets owned by, possessed by or used by Netcom
Operating Company prior to the effective date of the merger, including but not limited to
telecommunications equipment, facilities, transportation equipment, office equipment,
properties, the right to use land, buildings and on-going constructions and so on. All such
fixed assets will be given to Unicom Operating Company.

(2) Specific items in the fixed assets of Netcom Operating Company are subject to the fixed asset
items confirmed by all parties under this Agreement. Netcom Operating Company shall handover
all existing documents such as relevant ownership documents, descriptions, certificates and
registrations to Unicom Operating Company. Of which, ownership modification registration
formalities of vehicles, property ownership, the right to use land and industrial ownership in
the above fixed assets shall be completed within 180 days of the effective date of the merger,
all the other assets shall be transferred to Unicom Operating Company on the effective date of
the merger.

	4.3	 	Current assets
	 
	(1)	 	Current assets of Netcom Operating Company mainly include monetary funds, short-term
investment, receivables and prepaid money and so on shall be given to Unicom Operating
Company.
	 
	(2)	 	Specific items in the current assets of Netcom Operating Company are subject to those current
asset items confirmed in the audit report.

4.4 External equity interest investments

Equity interest rights as a result of external investments of Netcom Operating Company shall be
given to Unicom Operating Company, including but not limited to 100% of the equity interest of
China Netcom Group System Integration Limited Corporation held by Netcom Operating Company, 100% of
the equity interest of China Netcom Broadband Online Company and 100% of the equity interest of
Zhongrong Information Service Limited.

7

 

	5.	 	SCHEME FOR SUCCESSION OF CREDITOR’S RIGHTS AND LIABILITIES
	 
	5.1	 	After respectively obtaining the approval of Ministry of Commerce in principle on this merger
scheme by Unicom Operating Company and Netcom Operating Company, they shall implement the
announcement and notice procedure of creditor according to provisions of relevant laws and
regulations, liquidate debts or provide guarantee in advance in accordance with the
requirements of their respective creditors raised within the statutory period (of which, as
for those corresponding rights of holders of enterprise coupons and short term fund-raising
coupons issued by Netcom Operating Company that are still within continuing operations period,
they will be executed according to relevant laws, regulations and procedures specified in
prospectus).
	 
	5.2	 	Creditor’s rights and liabilities of Unicom Operating Company and Netcom Operating Company
will be undertaken by the continuing party after the absorption and merger following the
effective date of the merger namely Unicom Operating Company.
	 
	5.3	 	Creditor’s rights and liabilities of subsidiaries of Unicom Operating Company and Netcom
Operating Company will still be undertaken by their respective subsidiaries.
	 
	6.	 	INSTITUTIONAL MERGER
	 
	6.1	 	After the effective date of the merger, all functional departments and their branch
institutions of Netcom Operating Company will be merged with corresponding functional
departments of Unicom Operating Company.
	 
	6.2	 	Various parties in this merger hereby agree that Netcom Operating Company following this
merger shall make adjustments according to the actual condition of its business development.
	 
	7.	 	ALLOCATION OF EMPLOYEES

Following the completion of this merger, various parties agree that all registered employees of
Unicom Operating Company and Netcom Operating Company will be completely received by Unicom
Operating Company. Any and all rights and obligations of Unicom Operating Company and Netcom
Operating Company as employers of their existing employees will be completely shared and undertaken
by Unicom Operating Company from the effective date of the merger.

	8.	 	AGREEMENT AND THE UNDERTAKING OF AGREEMENT
	 
	8.1	 	Agreement in which Netcom Operating Company acts as one party before the effective date of
this Agreement will be undertaken by Unicom Operating Company from the effective date of this
Agreement.
	 
	8.2	 	Within 30 days from Unicom Operating Company receives the modified operating license, Unicom
Operating Company shall issue a notice of changing agreement mainbody to all the other parties
in an agreement entered by Netcom Operating Company in accordance with the requirements of
relevant laws and regulations and implement corresponding notice procedure.
	 
	8.3	 	During the period from the signature date of this Agreement to the effective date of the

8

 

	 	 	merger, rights and obligations under relevant contracts signed in the name of Unicom Operating
Company but actually implemented by Netcom Operating Company will be shared and undertaken by
Netcom Operating Company.

	9.	 	SUCCESSION OF LITIGATION
	 
	9.1	 	Prior to the effective of this Agreement, all litigations or arbitrations related with Netcom
Operating Company that are pending or decided but not implemented will be undertaken by Unicom
Operating Company.
	 
	9.2	 	Litigations, claims, losses, compensations, payments, expenses and costs related with assets,
rights, liabilities or obligations of Netcom Operating Company that are vested in according to
this Agreement occurred after the effective date of this Agreement shall be the responsibility
of Unicom Operating Company and undertaken by Unicom Operating Company.
	 
	10.	 	TAXES AND EXPENSES

Unicom Operating Company hereby commits and guarantees to undertake the following:

	10.1	 	Taxes and expenses payable irrespective of the effective date of this Agreement that are
related to transferred businesses and assets of Unicom Operating Company.
	 
	10.2	 	Taxes and expenses related to operating actives and properties undertaken by Unicom Operating
Company after the effective date of this Agreement.
	 
	11.	 	PREREQUISITE FOR MERGER TO TAKE EFFECT

This merger is subject to satisfaction of the following prerequisite:

	11.1	 	New Unicom Red-chip Company and Netcom Red-chip Company have made decision on this merger in
accordance with applicable laws, regulations and rules;
	 
	11.2	 	Unicom Operating Company and Netcom Operating Company have executed internal approval
procedures in accordance with applicable laws, regulations and rules;
	 
	11.3	 	All parties under this Agreement have implemented the required necessary procedure of
applicable laws and/or binding agreements and documents, including but not limited to the
consent of relevant creditors (if applicable);
	 
	11.4	 	Approval of related issues about this merger by Ministry of Commerce and other related
governmental departments.
	 
	12.	 	REPRESENTATIONS AND WARRANTIES

Any party under this Agreement hereby makes the following representations and warranties to the
other parties:

12.1
Legal status

Our company is a company incorporated under laws of jurisdiction and effectively continuing our
operations, having independent legal status, being capable of making a lawsuit or being sued in our
own name, owning our assets and specializing in our

9

 

businesses existing or proposed to exist, implementing our obligations.

12.2 Power and authorization

Our company and our authorized person have power and are authorized to sign and deliver our
participating agreement, implement their obligations under such agreement, all corporate actions
and other actions necessary for authorizing their signing participating agreement and implementing
their obligations under such agreement have been officially handled.

12.3 No
conflict 

In accordance with specifications of participating agreements signed and delivered, our company
executes our rights, implements or abides by obligations, which are or will not in contradiction
with, against or beyond any rights or restrictions allowed or specified by the following documents:

(1) Any other agreements in which we participate or that have binding force to our assets;

(2) Our organizational documents; or

(3) Any applicable laws and approvals that have binding force to us.

12.4 References

We provide relevant documents and materials in accordance with the requirements of the merger and
guarantee authenticity and integrity of such references.

13. APPLICABLE LAWS AND RESOLUTION OF DISPUTES

13.1 This Agreement shall be governed by, and interpreted in accordance with PRC laws.

13.2 All parties hereto shall resolve any disputes, conflicts or claims (“Dispute”) arising out of
or in connection with the interpretation or implementation of this Agreement through friendly
consultation. If the parties can not come to an agreement on the resolution to a Dispute within 60
days after one party raises the Dispute, then such Dispute shall be referred to arbitration.

13.3 The Dispute shall be resolved by arbitration in China International Economic and Trade
Arbitration Commission (“CIETAC”) in accordance with the CIETAC Arbitration Rules then in effect.

13.4 The arbitration will be presided over by the CIETAC as the presiding body. The arbitration
will be in Chinese, unless agreed otherwise, and will be in Beijing.

13.5 The arbitral award given in compliance with the arbitration procedures will be final and
binding on all the parties and will be enforceable.

14. NOTICE

14.1 Any notice to be given under this Agreement shall be in writing. It shall be served by sending
it by telex, telegraphy or facsimile to the following address(es) under this Agreement or relevant
address(es) specified by one party to any other party from time to time:

China United Telecommunications Corporation Limited

Address: A133, Xidan North Street, Xicheng District, Beijing

10

 

Telephone: 010 66505783

To the attention of: Jia Yongzeng

China Netcom (Group) Co., Limited

Address: Building C, 156 Fuxingmennei Street, Xicheng District, Beijing

Telephone: 010 66259602

To the attention of: Wang Yueping

China Unicom (Hong Kong) Limited

Address: 75th Floor, The Center, 99 Queen’s Road Central, Hong Kong

Telephone: 852 2121 3220

To the attention of: Corporate Secretary

China Netcom Group Corporation (Hong Kong) Limited

Address: 67th Floor, The Center, 99 Queen’s Road Central, Hong Kong

Telephone: 852 2626 8862

To the attention of: Corporate Secretary

14.2 In the case of notice delivery by hand, it shall be deemed to have been duly given when
delivered; In the case of post, the date of acknowledgement; in the case of telegraphy, when the
transmission receipt is collected; in the case of facsimile, upon confirmation of transmission.

15. INTEGRAL AGREEMENT

All parties hereto have reached full agreement and understanding concerning this merger. This
Agreement replaces all the previous agreements and understanding reached on subject issues of this
Agreement, such previous agreements and understanding shall no longer have any effects; at the
signature of this Agreement, neither party relies on any representations, guarantees or commitments
specified or mentioned other than in this Agreement.

16. SEVERABILITY

If any provision under this Agreement is held to be invalid or unenforceable, then such provision
shall be given no effect, and should be deemed as not included in this Agreement, but the rest of
this Agreement shall still be valid. The parties shall then use all reasonable efforts to replace
the invalid or unenforceable provision by a valid and enforceable substitute provision the effect
of which shall be as close as possible to the intended effect of the invalid or unenforceable
provision.

17. AMENDMENT

Any amendment to this Agreement (or any documents mentioned in this Agreement) shall only be made
in writing, and become effective if signed by every party or their authorized

11

 

representative under this Agreement. Amendment refers to modifications, supplements, deletions or
changes in any form.

18. COPY OF AGREEMENT

This Agreement has 10 original copies with the same legal effect.

	19.	 	FORCE MAJEURE
	 
	19.1	 	Force majeure refers to events that can not be predicted by the affected party, beyond its
control and prevent it from performing its obligations, which include but not limited to
earthquakes, typhoons, explosions, serious fire disasters or other natural calamities,
strikes, changes in law and policy, or any other events that lead to severe consequences or
conflict situations such as wars.
	 
	19.2	 	The occurrence of force majeure: If one party under this Agreement cannot fully or partially
perform its obligations due to force majeure, then such party will not be held responsible for
being unable to perform its obligations during the period of force majeure or direct
consequences as a result of force majeure. The parties hereto shall make efforts to minimize
consequences as a result of force majeure.
	 
	19.3	 	Notice of force majeure: The affected party shall, upon the occurrence of force majeure,
promptly give the other parties a notice of specific information of force majeure and the
effects on the performance of its obligations under this Agreement; when such force majeure
terminates, the affected party shall promptly give the other parties a notice of the
termination.

20. SUCCESSION AND TRANSFER OF RESPONSIBILITIES AND RIGHTS UNDER THE AGREEMENT

This Agreement shall have integral legal binding force to any party and its lawful successor and
assignee. Without the consent of the other party, any party under this Agreement shall not impawn
or transfer any rights, interests, obligations and responsibilities of such other party under this
Agreement in any form.

21. DEFAULT AND REMEDIES

If any party under this Agreement violates its obligations and other statutory responsibilities
hereof, it should undertake corresponding compensation responsibility.

22. TITLES AND HEADINGS

All titles and headings of this Agreement are inserted for convenience only and shall not have any
effect on the construction of this Agreement.

(There is no text below.)

12

 

(There is no text in this page, which is used for the signature of Agreement on Absorption and
Merger of China Netcom (Group) Co., Limited by China United Telecommunications Corporation Limited)

China United Telecommunications Corporation Limited (seal)

Legal Representative (signature): Chang Xiaobing

China Netcom (Group) Co., Limited (seal)

Legal Representative (signature): Zuo Xunsheng

China Unicom (Hong Kong) Limited (seal)

Legal Representative (signature): Chang Xiaobing

China Netcom Group Corporation (Hong Kong) Limited (seal)

Legal Representative (signature): Zuo Xunsheng

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]