Document:

Exhibit
4.23

 

 

Transfer
Agreement

 

with
respect to the Comprehensive Operator Services Agreement

 

between

 

China
Unicom Corporation Limited

 

Unicom
New Century Telecommunications Corporation

 

Unicom
New World Telecommunication Corporation

 

and

 

China
United Telecommunications Corporation Limited

 

 

November 20,
2003

 

 

	
   

  	
   

  	
  THIS AGREEMENT is
  hereby entered into on November 20, 2003, in Beijing, People’s Republic
  of China by and between:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (1)

  	
   

  	
  Transferor:

  	
   

  	
  China Unicom Telecommunications Corporation Limited
  (“Unicom A Share Company”)

  
	
   

  	
   

  	
   

  	
   

  	
  Address: 88
  Century Boulevard, Jinmao Tower, 40th Floor, Shanghai

  
	
   

  	
   

  	
   

  	
   

  	
  Legal
  Representative: Wang Jianzhou

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  and

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  Transferees:

  	
   

  	
  China Unicom Corporation Limited (“CUCL”)

  
	
   

  	
   

  	
   

  	
   

  	
  Address: 18 Jianguomenneidajie, Hengji Center, Tower
  One, 12th Floor, Beijing

  
	
   

  	
   

  	
   

  	
   

  	
  Legal Representative: Wang Jianzhou

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Unicom New Century Telecommunications Corporation
  (“Unicom New Century”)

  
	
   

  	
   

  	
   

  	
   

  	
  Address: 18 Jianguomenneidajie, Hengji Center, Tower
  One, 10th Floor, Suite 1012, Beijing

  
	
   

  	
   

  	
   

  	
   

  	
  Legal Representative: Wang Jianzhou

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Unicom New World Telecommunications Corporation
  (“Unicom New World”)

  
	
   

  	
   

  	
   

  	
   

  	
  Address: 18 Jianguomenneidajie, Hengji Center, Tower
  One, 10th Floor, Suite 1009, Beijing

  
	
   

  	
   

  	
   

  	
   

  	
  Legal Representative: Wang Jianzhou

  

 

WHEREAS:

 

(1)                                  China
United Telecommunications Corporation (“Unicom Group”), a limited liability
company duly incorporated and validly existing in China and engaging in
integrated telecommunications business, is the controlling shareholder of
Unicom A Share Company;

 

(2)                                  Unicom
A Share Company, a limited liability company duly incorporated and validly
existing in China, has had its common stock listed on the Shanghai Stock
Exchange since October 9, 2002, with Unicom Group holding 74.6017% of its
total shares;

 

(3)                                  CUCL,
a wholly owned subsidiary of China Unicom Limited (“Unicom Red-Chip Company”)
engages in the following businesses: domestic and international long-distance
telecommunications; mobile telecommunications service in Beijing, Tianjin,
Hebei, Liaoning, Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, Shangdong, Hubei
and Guangdong (collectively the “12 Provinces and Municipalities”); wireless
beep-paging; internet and IP call; technical advice and service;

 

3

 

Unicom
New Century, a wholly owned subsidiary of Unicom Red-Chip Company engaging in
integrated telecommunications service, with the approval of the document of
Xin-bu-dian-han [2002] No. 299 formulated by the Ministry of Information
Industry of PRC (“MII”) has been authorized by Unicom Group to operate mobile
telecommunications business in Sichuan, Xinjiang, Chongqing, Shaanxi, Guangxi,
Henan, Heilongjiang, Jilin and Jiangxi (collectively the “9A Regions”);

 

(4)                                  Unicom
New World, a limited liability company engaging in integrated
telecommunications service, was established by Unicom Group on November 4,
2003, and is wholly owned by Unicom Group. Unicom Group has contributed its GSM
mobile service assets (the “GSM Assets”) in Shanxi, Neimenggu, Hunan, Hainan,
Yunnan, Tibet (no GSM Assets), Gansu, Qinghai and Ningxia (collectively “the 9B
Regions”) into Unicom New World, which, with the approval of the document of
Xin-bu-dian-han [2003] No. 443 formulated by MII, has been authorized to
provide mobile service in the 9B Regions;

 

(5)                                  Unicom
Group and Unicom A Share Company signed a memorandum on August 12, 2002,
on the transaction matters, after the stock offering of Unicom A Share Company,
between Unicom Group or its subsidiaries (excluding Unicom A Share Company and
any subsidiaries controlled by Unicom A Share Company) and Unicom Red-Chip
Company, indirectly controlled by Unicom A Share Company, and its subsidiaries;

 

(6)                                  Unicom
Group, through its wholly owned overseas subsidiaries, is to transfer all the
stock equity of Unicom New World to Unicom Red-Chip Company (the “Assets
Injection Project”). After the completion of the Assets Injection Project,
Unicom New World shall be one of the subsidiaries of Unicom Red-Chip Company
operating domestic telecommunications business;

 

(7)                                  Guoxin
Paging Corporation Limited (“Guoxin Paging”), a limited liability company duly
incorporated and validly existing in China, has its stock equities entirely
held by CUCL. Pursuant to a transfer agreement entered into by Guoxin Paging,
CUCL and Unicom New Century regarding the assets of 1001 phone code resource,
Guoxin Paging shall engage in customer service business by means of the 1001
phone code resource within the areas where Unicom Red-Chip Company provides
mobile telecommunications service;

 

(8)                                  Unicom
Group, through its holding company, Unicom A Share Company, is to
counterpurchase all the stock equities of Guoxin Paging from CUCL (the “Paging
Counterpurchase Project”); and

 

(9)                                  the
Comprehensive Operator Services Agreement (the “Services Agreement”) was
entered into on November 20, 2003, by Unicom Group, Guoxin Paging and
Unicom A Share Company.

 

NOW THEREFORE, for
the purpose of the Paging Counterpurchasing Project and the Assets Injection
Project, on the ground of equality and mutual benefits and through friendly
consultations, the parties hereto reach this Agreement as follows:

 

4

 

1.                                       Subject
to the satisfaction of the conditions set forth in Section 6 herein under
which this Agreement becomes effective, the Transferor hereby agrees to
transfer all the rights and obligations set out in the Services Agreement and
the annexes thereto to the Transferees, who shall accept such rights and
obligations respectively in their own areas of mobile telecommunications
service (namely, CUCL in the 12 Provinces and Municipalities, Unicom New
Century in the 9A Regions and Unicom New World in the 9B Regions).

 

2.                                       Once
such rights and obligations under the Services Agreement and the annexes
thereto have been transferred to each of the Transferees, the Transferees shall
immediately succeed to such rights and obligations while the Transferor shall
immediately terminate such rights and obligations.

 

3.                                       The
Transferor acknowledges that, pursuant to Section 7 in the Services
Agreement, Unicom Group has irrevocably agreed to have the Transferor assign
the Transferor’s rights and obligations under the Services Agreement and the
annexes thereto to the subsidiaries of Unicom Red-Chip Company operating
domestic telecommunications business, and that no other consents of Unicom
Group shall be required for such assignment.

 

4.                                       Each
party hereto warrants to have its own full rights, power and ability to execute
and perform this Agreement, which shall become a legal, effective and binding
obligation to each party hereto upon execution.

 

5.                                       The
Transferees agree to enjoy and perform on the ground of the clauses and
conditions under the Services Agreement all the Transferor’s rights and obligations
thereunder in the past or in the future within the effective term of the
Services Agreement.

 

6.                                       Effectiveness
of this Agreement:

 

Subject
to the satisfaction of the following conditions, this Agreement shall become
effective simultaneously with the Services Agreement:

 

6.1                                 In
accordance with the applicable laws, regulations and listing rules, a general
meeting of the shareholders of Unicom Red-Chip Company approves the Transferor
to transfer all its rights and obligations under the Services Agreement to the
Transferees; and

6.2                                 The
conditions set forth in Section 8 of the Services Agreement have been
satisfied.

 

7.                                       Force
Majeure

 

In the
event that any party hereto is prevented from performing any of its obligations
under this Agreement and the annexes hereto as a consequence of any Force
Majeure events, which are unforeseeable and the occurrence and results of which
are unavoidable, such party shall notify the other party without delay, and
within 15 days thereafter provide detailed

 

5

 

information
concerning such events and certification concerning the reasons for its
inability to perform all or part of, or for deferring the performance of, the
obligations under this Agreement and the annexes hereto. The parties hereto
shall, through consultations, decide whether to terminate this Agreement or to
partly exempt the performance of or to defer the performance of the obligation
according to the extent to which the performance of this Agreement is affected
by such Force Majeure event.

 

8.                                       Confidentiality

 

Except
to the extent that disclosure is required by law or by the rules of the
relevant supervisory authorities, or for the purpose of information disclosure
submitted to the Shanghai Stock Exchange by the Transferor or to the Hong Kong
Stock Exchange by Unicom Red-Chip Company, no party hereto shall, without the
other party’s written consent, provide or disclose to any company, enterprise,
organization or individual any data or information relating to the other
party’s businesses.

 

9.                                       Non-waiver

 

Unless
otherwise required by law, any party’s failure or delay to exercise any right,
power or privilege shall not be deemed as a waiver of them, and any partial
exercise of any right, power or privilege shall not preclude the exercise of
such right, power or privilege in the future.

 

10.                                 Notice

 

All
notices relating to this Agreement shall be in writing and may be delivered
either by special messenger, fax or mail. Notices delivered by messenger shall
be deemed served upon their handover; notices delivered by fax shall be deemed
served when the sent signal appears on the sender’s fax machine; notices
delivered by mail shall be deemed served on the third working day (extension is
allowed for any statutory holiday) after the date of sending. Any notice shall
immediately come into force upon being served.

 

The mailing addresses of the parties hereto are as
follows:

 

China United Telecommunications
Corporation Limited

 

Attention: Zhao Yilei

Address:   88
Century Boulevard, Jinmao Tower, 40th Floor, Shanghai

Zipcode:  
200121

 

China Unicom Corporation

 

Attention: Yang Xiaowei

Address:   A133
Xidanbeidajie, 10th Floor, Suite 1029, Xicheng District, Beijing

Zipcode:  
10032

 

6

 

Unicom New Century Telecommunications Corporation

 

Attention:
Jia Yongzeng

Address:   A133
Xidanbeidajie, 9th Floor, Suite 976, Xicheng District, Beijing

Zipcode:   10032

 

Unicom New World Telecommunications Corporation

Attention:
Song Xiaoxi

Address:   A133
Xidanbeidajie, 8th Floor, Suite 828, Xicheng District, Beijing

Zipcode:   10032

 

11.                                 Applicable
Law

 

This Agreement shall be governed by the PRC law, and
interpreted and implemented in accordance with the PRC law.

 

12.                                 Dispute
Settlement

 

The
parties hereto shall primarily endeavor to resolve any dispute with respect to
the validity, interpretation or performance of this Agreement through friendly
consultation. In the event that a resolution fails to be reached by the parties
hereto within 30 days after the occurrence of the dispute, any party may submit
the dispute for litigation to a people’s court that has jurisdiction.

 

13.                                 Miscellaneous

 

13.1                           Upon
unanimous agreement the parties hereto may amend or supplement this Agreement
and its annexes, and all the amendments or supplements shall become effective
upon written execution by the signatures of the legal representatives of the
parties hereto or its duly authorized representatives and by the corporate
seals of the parties hereto.

 

13.2                           This
Agreement is severable, and the invalidity or non-enforcement of any provision
of this Agreement and its annexes shall not affect the validity and enforcement
of any other provision hereof.

 

13.3                           This
Agreement has eight originals with each having equal legal effect and each
party hereto holding two of them.

 

7

 

Signature page

 

 

	
  China United Telecommunications
  Corporation Limited (Corporate Seal)

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Sun Qian

  	
   

  
	
  (Legal Representative
  or Authorized Representative)

  
	
   

  	
   

  
	
   

  	
   

  
	
  China Unicom Corporation (Corporate
  Seal)

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Tong Jilu

  	
   

  
	
  (Legal Representative
  or Authorized Representative)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Unicom New Century
  Telecommunications Corporation (Corporate Seal)

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Tong Jilu

  	
   

  
	
  (Legal Representative
  or Authorized Representative)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Unicom New World Telecommunications
  Corporation (Corporate Seal)

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Tong Jilu

  	
   

  
	
  (Legal Representative
  or Authorized Representative)

  

 

8Exhibit
4.24

 

 

(English
Translation)

 

 

21
June 2002

 

 

CHINA
UNICOM LIMITED

 

 

and

 

 

William
Lo Wing Yan

 

 

 

SERVICE
AGREEMENT

 

 

 

CONTENTS

 

	
  CLAUSE

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions and
  Interpretation

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Conditions Precedent

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Term of Employment

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Duties

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Remuneration

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Holidays

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Confidential Information

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Non-Solicitation

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Non-Competition

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Return of Papers

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Effect of Restrictions

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Termination of Employment

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Takeover

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Other Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  17.

  	
  The Articles

  	
   

  
	
   

  	
   

  	
   

  
	
  18.

  	
  Language

  	
   

  
	
   

  	
   

  	
   

  
	
  19.

  	
  Governing Law

  	
   

  

 

 

THIS AGREEMENT is entered into on 21 June 2002 by
and between:

 

CHINA UNICOM LIMITED whose registered office is at 75th
Floor, 99 Queen’s Road Central, Hong Kong (the Company); and

 

WILLIAM LO WING YAN of Room A, 18th Floor,
Monterey Court, No. 47 Bai Jian Shi Road, Hong Kong (the Employee).

 

IT IS AGREED as follows:

 

1.             Definitions and
Interpretation

 

1.1           In this Agreement:

 

Articles means the articles of association of the
Company for the time being in force.

 

Board means the board of directors of the
Company or a duly constituted committee of the board of directors.

 

Companies Ordinance means the Companies Ordinance (Chapter
32 of the Laws of Hong Kong).

 

Listing Rules means the Rules Governing the Listing of
Securities on the Stock Exchange of Hong Kong Limited.

 

NYSE means the New York Stock Exchange.

 

PRC means the People’s Republic of China.

 

Stock Exchange means the Stock Exchange of Hong Kong
Limited.

 

Subsidiary means any company which is from time to
time a subsidiary of the Company (as defined in section 2 of the Companies
Ordinance).

 

1.2           In this Agreement:

 

(a)           a word in the singular includes the plural and
vice-versa;

 

(b)           a party is a party to this Agreement and shall include
its successor or permitted transferee;

 

(c)           no provision shall be taken as preventing this
Agreement from being extended, modified, changed or supplemented from time to
time;

 

(d)           all references to laws and regulations are to those
laws and regulations as amended, supplemented or otherwise modified from time
to time; and

 

(e)           all headings are used for ease of reference and shall
have no effect on the interpretation of this Agreement.

 

2.             Conditions
Precedent

 

2.1           The Employee makes the
following warranties to the Company, and confirms that the Company will not
sign this Agreement unless the Employee has satisfied the following conditions:

 

2.1.1        The Employee shall be
qualified, pursuant to the Companies Ordinance and the Listing

 

1

 

Rules, for the position of director of a listing
company; and

 

2.1.2        The Employee has never,
according to the relevant laws and regulations, been prohibited to be a
director of any company.

 

2.2           The
resolution of the Board authorizes the Employee to assume the responsibility of
a director.

 

3.             Term of Employment

 

3.1           The
Company shall appoint and employ the Employee as its executive director and
vice-president.

 

3.2           The
term of employment shall take effect on 8 July 2002 (“Employment Date”)
until the termination of the relevant provisions under this Agreement.

 

3.3           There
is a six-month probation starting from the Employment Date (“Probation”).

 

4.             Duties

 

4.1           The Employee’s normal place of work shall
be in the PRC including Hong Kong, or at such other places as the Company may
from time to time determine.

 

4.2           The Employee hereby undertakes to the
Company that during his employment, he:

 

(a)           shall report
directly to the Company and the Board, and give to the Board such information
regarding the affairs of the Company as the Board may require and at all times
conform to the reasonable and lawful directions of the Board;

 

(b)           shall faithfully
and diligently perform in respect of the Company such duties and exercise such
powers as may be reasonably assigned to or vested in him from time to time by
the executives and the Board;

 

(c)           shall comply with all rules and
regulations of the Company from time to time concerning its executives and
directors;

 

(d)           shall devote his full time and attention
to the business of the Company (except in case of incapacity through illness or
accident, in which case he shall forthwith notify the secretary of the Board of
such incapacity and shall provide evidence of such incapacity as may be
required by the Board) and use his best efforts and exercise the best of his skill
and ability to develop and extend the business of the Company, promote the
interests of the Company and carry out his duties in a proper, loyal and
efficient manner;

 

(e)           shall travel to such places within and
outside of the PRC at such times as the Company may from time to time
reasonably require, provided that the Company gives reasonable prior notice;

 

(f)            shall observe and comply with the
following, as the same may be amended, supplemented or otherwise modified from
time to time:

 

(i)            the Articles;

 

(ii)           all relevant and
applicable PRC laws and regulations;

 

(iii)          all relevant and
applicable Hong Kong laws and regulations including, but not limited to:

 

2

 

(A)    the Listing Rules, including the listing agreement
between the Stock Exchange and the Company;

 

(B)    the Hong Kong Codes on Takeovers and Mergers and Share
Repurchases;

 

(C)    the Securities (disclosure of interests) Ordinance;

 

(D)    the Model Code for Securities Transactions by
Directors of Listed Companies;

 

(iv)          all relevant and
applicable laws of the United States and regulations of the     NYSE;

 

(g)           shall, in the
exercise of his powers and discharge of his duties, exercise the care,
diligence and skill that a reasonably prudent person would exercise in
comparable circumstances;

 

(h)           shall, in the
exercise of powers of the Company entrusted to him, observe obligations of a
fiduciary not to place himself in a position where his duty and his interest
may conflict; this principle includes without limitation a duty:

 

(i)    to act honestly in the best
interests of the Company;

 

(ii)          to exercise the
powers vested in him for their intended purpose;

 

(iii)       to exercise the discretion
vested in him personally and not allow himself to act under the direction of another
and, unless and to the extent permitted by law or with the informed consent of
shareholders in general meeting, not to delegate the exercise of his
discretion;

 

(iv)      to treat shareholders of the
same class equally and to treat shareholders of different classes fairly;

 

(v)         except in
accordance with the Articles or with the informed consent of shareholders in
general meeting, not to enter into a contract, transaction or arrangement with
the Company or any Subsidiary;

 

(vi)      without the informed consent
of shareholders in general meeting, not to use the Company’s or any
Subsidiary’s property for his own benefit;

 

(vii)   not to use his powers as a
means to accept bribes or any other unlawful income, and not to expropriate in
any way the Company’s or any Subsidiary’s property, including without
limitation, not to usurp the Company’s or any Subsidiary’s opportunities;

 

(viii)not
to use his position and powers to make personal gains;

 

(ix)        without the informed consent
of shareholders in general meeting, not to accept commissions in connection
with the Company’s or any Subsidiary’s transactions; and

 

(x)           without the
informed consent of shareholders in general meeting, not to compete with the
Company or any Subsidiary.

 

4.3           The Company may at any time during the appointment of
the Employee under this Agreement suspend the Employee from the performance of
his duties or exclude him from any premises of the Company or any Subsidiary
and need not give any reason for so doing.

 

4.4           For the purposes of this Agreement, the Employee
shall, if and so long as he is so reasonably required by the Company:

 

3

 

(a)           carry
out the duties of his office on behalf of any Subsidiary;

 

(b)           act
as director, officer or employee of any such Subsidiary; and

 

(c)           carry
out such duties relating to any such appointment as if they were duties to be
performed by him on behalf of the Company under this Agreement.

 

4.5           The Employee shall at all times keep the
board promptly and fully informed (in writing if so requested) of his conduct
of the business or affairs of the Company and provides such explanations as the
Board may require in connection therewith.

 

4.6           The Employee agrees that the Company
shall have the remedies provided in the Articles and that neither this
Agreement nor his office is capable of assignment.

 

4.7           The Employee also undertakes to the
Company acting as agent for each shareholder to observe and comply with his
obligations to shareholders stipulated in the Articles.

 

5.             Remuneration

 

5.1           In consideration of the performance of
his duties, the Employee shall be paid HK$150,000 per month (or at a rate
approved by the general meeting of shareholders and agreed by the Company and
the Employee from time to time) during his employment at the end of each month.
The Company shall pay the fee (the amount shall be calculated according to the
Employment Ordinance) of the 13th month to the Employee pursuant to
the Employment Ordinance of Hong Kong.

 

5.2           At least once in each twelve (12) months,
the Company shall review, but shall not be obliged to increase, the fee payable
to the Employee referred to in Section 5.1.

 

5.3           In addition to the fee referred to in
Section 5.1, the Employee:

 

(a)   shall be entitled to such
allowances and benefits as the Company grants to all its employees;

 

(b)   shall be entitled to such
other allowances and benefits commensurate with his position as the Board may
from time to time determine;

 

(c)   may in respect of each
financial year of the Company during his employment under this Agreement
receive a year end bonus to be determined by the Board, subject in each case to
approval by the shareholders in general meeting; and

 

(d)   may receive equity options of
the Company through the equity option plan with the approval and authorization
of the Board.

 

5.4           As for working
overtime or on vacations or public holidays, the Company assumes no liability
to pay additional subsidy or any other fees.

 

6.             Expenses

 

The Company shall reimburse the Employee, pursuant to
relevant rules of the Company, against production of receipts and vouchers if
requested, for all necessary and reasonable expenses (including travel, hotel,
entertainment and other out-of-pocket expenses) properly incurred in the
performance of his duties under this Agreement.

 

7.             Holidays

 

7.1           The working hours of the Company are from
9 am to 5:30 pm, Monday to Friday.

 

4

 

7.2           The Employee will be entitled to paid
leave of 21 working days for each calendar year.  In relation to the first and last calendar year of employment,
the number of days of paid leave will be apportioned accordingly.  Notice of intention to take leave should be
given, pursuant to relevant to rules of the Company, to the relevant department
of the Company at least half month in advance.

 

8.             Confidential
Information

 

The Employee shall not either during or after the
termination of his appointment without limit in point of time:

 

(a)   divulge or communicate to any
person or persons except to those officers of the Company whose province it is
to know the same and except as required by law; or

 

(b)   use for his own purposes or
for any purposes other than those of the Company; or

 

(c)   through any failure to
exercise all due care and diligence cause any unauthorized disclosure of any
secret confidential or private information of the Company or any Subsidiary
including, but not limited to:

 

(i) marketing plans, customer
lists, business development plans, inventions, technical data and know-how;

 

(ii)   information relating to
corporate activities or transactions which have been or are proposed to be
undertaken by the Company or any Subsidiary; or

 

(iii)  any information in respect of
which the Company or any Subsidiary is bound by an obligation of confidence to
any third party,

 

provided, however, that these restrictions
shall cease to apply to any information or knowledge which may (otherwise than
through the default of the Employee) become available to the public generally
without requiring a significant expenditure of labor, skill or money.

 

9.             Non-Solicitation

 

The Employee undertakes that he will not during, or
for a period of twelve (12) months after the termination of his employment with
the Company (howsoever caused), within the PRC or in any other country where
the Company or any Subsidiary has transacted business, either personally or
through an agent:

 

(a)   solicit or endeavor to entice
away from the Company or any Subsidiary:

 

(i)    any person, firm, Company or
other organization which within twelve (12) months prior to or at the date of
such termination was a customer or client of, or in the habit of dealing with
the Company or any Subsidiary and with whom the Employee had contact or about
whom he became aware or informed of in the course of his employment; or

 

(ii)   any other person, firm,
Company or other organization with whom the Employee had regular, substantial
or a series of business dealings on behalf of the Company or any Subsidiary; or

 

(iii)  any employee, director,
adviser or consultant of the Company or any Subsidiary;

 

(b)   accept into employment or
otherwise engage or use the services of any person who is an employee, adviser,
consultant of or under a contract of services with the Company or any
Subsidiary.

 

5

 

10.          Non-Competition

 

10.1         During his employment the Employee shall
not, without obtaining the prior approval of the shareholders in general
meeting, be directly or indirectly engaged or concerned in the conduct of any
other business or have any financial interest in any other business which, in
the reasonable opinion of the Board or the shareholders in general meeting:

 

(a)   is a body which competes or
tends to compete with the business of the Company or any Subsidiary; or

 

(b)   is an association which could
harm the reputation of the Company; or

 

(c)   is an engagement which would
reduce the Employee’s ability to perform his duties under this Agreement fully
and properly.

 

10.2         The Employee will not, for a period of
twelve (12) months after the termination of his employment with the Company
(howsoever caused), either personally or through an agent, carry on or be
interested or engaged in (other than as a holder of not more than 5% of the
issued shares or debentures of any Company listed on any recognized stock
exchange), or be concerned directly or indirectly in any executive, technical,
advisory or other capacity in, any business concern (of whatever kind) which is
in direct competition with the business of the Company or any of the
Subsidiaries.  However, this restriction
shall not restrain the Employee from being engaged or concerned in any business
concern insofar as the Employee’s duties or work shall relate solely to:

 

(a)   geographical areas outside the
PRC where the Company and the Subsidiaries have not transacted any business; or

 

(b)   services or activities of a
kind with which the Employee was not concerned to a material extent during his
employment with the Company.

 

11.          Return
of Papers

 

The Employee shall promptly whenever requested by the
Company and in any event upon the termination of his employment, deliver up to
the Company or its nominees all lists of clients or customers, correspondence
and all other records, documents, papers, tapes, computer diskettes, laptops,
mobile phones, keys and assets which may have been prepared by him or have come
into his possession, custody or control in the course of his employment, and
the Employee shall not be entitled to and shall not retain any copies
thereof.  Title and copyright in these
items shall vest in the Company.

 

12.          Effect
of Restrictions

 

While the restrictions contained in this Agreement are
considered by the parties to be reasonable in all the circumstances, it is
agreed that if such restrictions as a whole are adjudged to go beyond what is
reasonable for the protection of the confidential information and other
legitimate interests of the Company, and to be unenforceable, but would be
adjudged reasonable and enforceable if any part or parts thereof were deleted
or any periods or areas reduced, such restrictions shall apply as if such part
or parts had been deleted or such periods or areas reduced so that such
restrictions would be adjudged reasonable and enforceable.

 

13.          Termination
of Employment

 

13.1         During the probation, either party may
terminate this Agreement by giving to the other party a one-month notice in
writing or remuneration in lieu of notice. After the probation, either party
may terminate this Agreement by giving to the other party a six-month notice in
writing or by payment

 

6

 

of remuneration in
lieu of notice.

 

13.2         The Company shall be entitled to
terminate the Employee’s employment under this Agreement forthwith by notice in
writing if the Employee shall:

 

(a)   become disqualified or
prohibited by any applicable law or regulation including those applied by the
Stock Exchange or Securities & Futures Commission of Hong Kong or the NYSE
or the Securities and Exchange Commission, from being or acting as a director
or from being directly or indirectly concerned in the promotion, formation or
management of a Company, or from carrying out any of the duties or functions he
is employed to carry out under this Agreement; or

 

(b)   be or become incapacitated by
reason of ill-health, accident or otherwise from efficiently performing his
duties under this Agreement for four (4) consecutive months or for one hundred
and twenty (120) working days in aggregate in any period of twelve consecutive
months; or

 

(c)   become bankrupt or make any
arrangement or composition or analogous arrangement with his creditors; or

 

(d)   be guilty of misconduct or
default in the course of his employment or commit any serious, persistent or
material breach of any of his obligations to the Company or any of the
Subsidiaries (whether under this Agreement, the Listing Rules or otherwise); or

 

(e)   be convicted of any criminal
offence punishable by imprisonment (other than a motoring offence involving
imprisonment of three months or less).

 

13.3         The Employee shall have no claim against
the Company by reason of termination under Section 13.1 or
Section 13.2.  Any delay or
forbearance by the Company in exercising any right of termination under
Section 13.2 shall not constitute a waiver of it.

 

13.4         If the Employee shall cease to be a director
of the Company, his appointment under this Agreement shall automatically
terminate.  But if such cessation shall
be caused by any act or omission of either party without the consent,
concurrence or complicity of the other, then such act or omission shall be
deemed a breach of this Agreement and termination hereunder shall be without
prejudice to any claim for damages in respect of such breach.

 

13.5         On the termination of his appointment
under Section 13.2 howsoever arising:

 

(a)   the Employee shall at the
request of the Company immediately resign in writing from his office as a
director of the Company, the Subsidiaries or any other office held by him with
the Company and any of the Subsidiaries; and

 

(b)   the Employee shall not at any
time thereafter unless he has been appointed to a different post in the Company
represent himself still to be connected with the Company or any of the
Subsidiaries.

 

13.6         Termination of the Employee’s appointment under this
Agreement shall be without prejudice to any rights which have accrued at the
time of termination or to Sections 8, 9, 10, 12, 13, 18 and 19 (all of which
shall remain in full force and effect).

 

14.          Takeover

 

In the event of an offer for the Company within the
meaning of the Hong Kong Code on Takeovers and Mergers and subject to the
approval of the shareholders in general meeting, the Employee shall be entitled
to compensation for the unexpired period of his term of employment under this
Agreement for any loss of office as a result of such offer for the Company.

 

7

 

15.          Notices

 

15.1         All notices and communications given or
made under or in connection with this Agreement shall be in writing and shall,
unless otherwise specified, be in Chinese.

 

15.2         Any such notice or other communication
shall be addressed to the registered address for the time being of the Company
and, in the case of the Employee, to the address stated above or as notified
from time to time and, if so addressed, shall be deemed to have been duly given
or made as follows:

 

(a)   if sent by personal delivery,
upon delivery at the address of the relevant party;

 

(b)   if sent by post, five (5) days
after the date of posting; and

 

(c)   if sent by facsimile, at the
time when sending is complete.

 

16.          Other
Agreements

 

The Employee acknowledges and warrants that there are
no agreements or arrangements whether written, oral or implied between the
Company and the Employee relating to the employment of the Employee other than
those referred to in this Agreement and that he is not entering into this
Agreement in reliance on any representation not expressly set out herein (save
that this Section 16 shall not exclude liability for, or remedy in respect
of, fraudulent misrepresentation).

 

17.          The
Articles

 

Insofar as any terms of this Agreement shall be
inconsistent with the Articles, the Articles shall prevail.

 

18.          Language

 

This Agreement is made in the Chinese language.

 

19.          Governing
Law

 

This Agreement shall be governed by and construed in
accordance with Hong Kong law.

 

8

 

IN WITNESS whereof this Agreement has been signed by
or on behalf of the parties on the day and year first before written

 

 

	
  SIGNED by

  
	
  on behalf of

  
	
  CHINA UNICOM LIMITED:

  	
  /s/ Shi Cuiming

  	
   

  
	
   

  
	
   

  
	
  in the presence of:

  	
  /s/ Maurice Ngai

  	
   

  
	
   

  
	
  SIGNED by

  
	
  WILLIAM LO WING YAN:

  	
  /s/  Lo Wing Yan

  	
   

  
	
   

  
	
   

  
	
  in the presence of:

  	
  /s/ Maurice Ngai

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