Document:

exv4w44

Exhibit 4.44

 

Framework Agreement for Telecommunications Facilities Leasing

 

Between

China Network Communications Group Corporation

&

China Unicom Corporation Limited

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

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

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

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

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

	 	Legal Representative:
	 	Chang Xiaobing

Whereas:

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

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	 	 	New York Stock Exchange to become a wholly owned subsidiary of the Unicom Red-chip Company;
	 
	(4)	 	In its operations of telecommunications services, Party B desires to use Netcom Group’s
telecommunications facilities.
	 
	 	 	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 a Framework Agreement on telecommunications facilities
leasing and other related matters as follows:
	 
	1.	 	Telecommunications Facilities Leasing
	 
	 	 	The two parties agree that Party B can lease Party A’s international communications channel
gateways (including international submarine cable landing stations, international land cable
entry points, stations or entry extension terminal stations, as well as international satellite
earth stations), international communications services gateways (including international
telephone exchanges, the STPs of the international telephone network, ATM/FR, DDN,
international IP exchanges), the international submarine cable capacity, international land
cables and international satellite transponders and other international telecommunications
resources (“International Telecommunications Resources”); the inter-provincial optical fiber
facilities (“Inter-Provincial Transmission Fibers”) owned by Party A but located within Party
B’s business areas; as well as other telecommunications facilities owned by Party A but needed
by Party B in its services operations (“Telecommunications Resources and Facilities”).
	 
	2.	 	Basic Principles

	 	2.1	 	The leasing of Telecommunications Resources and Facilities from Party A to Party B
pursuant to this Framework Agreement is regarded as a paid business transaction between
the two parties. Based on the principle of equity and fairness, Party A is entitled to
charge Party B a reasonable amount of rental fees for the resources and facilities to be
leased.
	 
	 	2.2	 	The conditions governing the leasing of Telecommunications Resources and Facilities
from Party A to Party B pursuant to this Framework Agreement shall be no less favourable
than those granted to any other third-party from Party A as and when the same or similar
facilities are provided.
	 
	 	2.3	 	If Party B requests Party A to provide more resources and/or facilities under this
Framework Agreement, Party B shall make its best efforts to provide such facilities as
required by Party B. The conditions governing the leasing of such resources and/or
facilities shall be no less favourable than those granted to any other third parties as
and when the same or similar resources and/or facilities are provided.
	 
	 	2.4	 	If the resources and/or facilities under this Framework Agreement could not be
provided in part or in full as a result of Party A’s oversight, Party A shall notify Party
B promptly in writing, and make its best efforts to assist Party B in receiving the same
or similar resources and/or facilities from other sources.
	 
	 	2.5	 	The provision of resources and/or facilities under this Framework Agreement shall
comply with the purpose of use provided in this Framework Agreement as well as relevant
state standards.
	 
	 	2.6	 	Party A undertakes to provide to the auditor of the Unicom Red-chip Company the
accounting records between Party A and its connected persons in respect of the connected
transaction.
	 
	 	2.7	 	In the event of losses incurred to either party as a result of breach of this
Framework Agreement, the party in breach shall claim in time full responsibilities with
regard to the breach (including but not limited to direct or indirect losses inflicted
upon the other party). However, if the loss in question is caused by force majeure, no
party shall be held responsible.
	 
	 	2.8	 	During implementation of the obligations prescribed in this Framework Agreement by
either party, the other party shall undertake to provide assistances where necessary.

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	 	2.9	 	It is confirmed that the two parties are obligated to take further actions and
measures where necessary to ensure the realization of the purposes and provisions
prescribed in this Framework Agreement. Moreover, the provisions relating to connected
transactions in the listing rules of the Hong Kong Stock Exchange will be observed if
Party B is a subsidiary of the Unicom Red-chip Company.

	3.	 	Basic Contents about Leasing of Telecommunications Resources and Facilities

	 	3.1	 	Party B can lease Party A’s International Telecommunications Resources.
	 
	 	3.2	 	Party B can lease Party A’s Inter-Provincial Transmission Fibers.
	 
	 	3.3	 	Party B can lease other Telecommunications Resources and Facilities owned by Party A.
	 
	 	3.4	 	The two parties can make adjustments where necessary to the scope, type and quantity
of Telecommunications Resources and Facilities at any time. Such adjustments shall be
mutually confirmed once a year.

	4.	 	Obligations

	 	4.1	 	Party B is responsible for maintaining the rented International Telecommunications
Resources and Inter-Provincial Transmission Fibers at its own expense in accordance with
relevant regulations and specifications.
	 
	 	4.2	 	The two parties can determine through consultation which party is to undertake the
maintenance task in part or in full of the telecommunications facilities, in which case
the relevant costs shall be borne by Party B (unless otherwise agreed by the two parties);
if Party A undertakes the maintenance task in part or in full of the telecommunications
facilities, Party B shall make compensations to Party A for the costs arising therefrom.
	 
	 	4.3	 	Party B shall make good use of the leased Telecommunications Resources and
Facilities. In the life of this Framework Agreement and to the extent permitted by the
laws where applicable, Party B is entitled to lease the Telecommunications Resources and
Facilities to third parties as part of its normal Network Element (NE) leasing services,
for which the rates shall be based on relevant state regulations and the principles of
equity and fairness.
	 
	 	4.4	 	If Party B deems it necessary to cut off the Telecommunications Resources and
Facilities for the sake of maintenance and other reasons, a prior notice shall be issued
to Party A within a reasonable period of time.

	5.	 	Quality Assurance

	 	5.1	 	Party A shall ensure that the quality of its Telecommunications Resources and
Facilities to be leased are in line with national standards and regulations.
	 
	 	5.2	 	Party B shall ensure that its telecommunications equipment to be connected to the
Telecommunications Resources and Facilities is in line with the quality standards and
technical requirements provided by the competent national authorities.

	6.	 	Fees and Payment

	 	6.1	 	The rental fee to be paid by Party B for the Telecommunications Resources and
Facilities shall be equal to the annual depreciation of such resources and facilities and
no higher than the market price.
	 
	 	6.2	 	Within three months following the end of each year, the two parties shall carry out a
review of the rental fee of the Telecommunications Resources and Facilities (if necessary)
provided pursuant to this Framework Agreement. Adjustments shall be made in the next year
with regard to the rental fee errors (if any) identified in the review process.

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	 	6.3	 	The expenses to be paid under 4.2 of this Framework Agreement shall be determined
with reference to the market price. In case that no market price is available, the price
shall be worked out by the two parties through negotiation. However, the price shall be
negotiated on a cost-plus basis, and the cost acceptable to the two parties shall also be
determined through negotiation.
	 
	 	6.4	 	Within ten working days following the end of each quarter, Party B shall provide to
Party A a list of rental charges of the previous quarter, as well as a list of the charges
and fees provided pursuant to Article 6.3 of this Framework Agreement. Meanwhile, Party B
shall pay Party A the balance of rental charges after deduction of the relevant charges
provided pursuant to Article 6.3 of this Framework Agreement. After receipt of the
payment, Party A shall issue a statement of payment to Party B. Where dispute arises,
adjustments can be made in the next quarter upon confirmation by the two parties.
	 
	 	6.5	 	The two parties shall pay rental charges and fees therewith in light of the articles
heretofore. In the event of overdue payment, a penalty charge of 0.05% of the amount due
will be imposed on the party owing the payment for each day (1 day) of outstanding
payment.

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

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

	8.	 	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 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

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	 	 	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
	 
	 	 	In the event of a dispute between the two parties regarding the effectiveness, interpretation
or execution of this Framework Agreement, friendly consultation shall be sought in the first
place. If a case can not be settled through negotiation within thirty (30) days after the
dispute arises, either party is entitled to file a lawsuit with the people’s court of the
corresponding jurisdiction.
	 
	16.	 	Miscellaneous

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

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Page for Signatures:

China Network Communications Group Corporation (seal)

Legal representative or his authorized representative: (signature)

China Unicom Corporation Limited (seal)

Legal representative or his authorized representative: (signature)

6exv4w45

Exhibit 4.45

 

COMPREHENSIVE SERVICES AGREEMENT

 

between

China Unicom Corporation Limited

and

China United Telecommunications Corporation Limited

August 12, 2008

 

 

Table of Contents

	 	 	 	 	 
	1. Basic principles

	 	 	3	 
	 
	 	 	 	 
	2. Basic contents of the comprehensive services

	 	 	4	 
	 
	 	 	 	 
	3. Principles of pricing and payments

	 	 	5	 
	 
	 	 	 	 
	4. Terms

	 	 	5	 
	 
	 	 	 	 
	5. Statements, warranties and undertakings

	 	 	5	 
	 
	 	 	 	 
	6. Transfer

	 	 	7	 
	 
	 	 	 	 
	7. Effectiveness

	 	 	7	 
	 
	 	 	 	 
	8. Force majeure

	 	 	7	 
	 
	 	 	 	 
	9. Confidentiality

	 	 	8	 
	 
	 	 	 	 
	10. Non-waiver

	 	 	8	 
	 
	 	 	 	 
	11. Notification

	 	 	8	 
	 
	 	 	 	 
	12. Governing laws

	 	 	8	 
	 
	 	 	 	 
	13. Disputes settlement

	 	 	8	 
	 
	 	 	 	 
	14. Miscellaneous

	 	 	8	 
	 
	 	 	 	 
	Annex 1: Interconnection Arrangements

	 	 	10	 
	 
	 	 	 	 
	Annex 2: Supply of Telephone Cards

	 	 	12	 
	 
	 	 	 	 
	Annex 3: Equipment Procurement Services

	 	 	14	 
	 
	 	 	 	 
	Annex 4: Premises

	 	 	15	 
	 
	 	 	 	 
	Annex 5: International Telecommunications Network Gateways Services

	 	 	17	 
	 
	 	 	 	 
	Annex 6: Operator-Based Value-Added Services

	 	 	19	 
	 
	 	 	 	 
	Annex 7: Value-Added Telecommunications Services

	 	 	20	 
	 
	 	 	 	 
	Annex 8: “10010/10011” Customer Services

	 	 	21	 
	 
	 	 	 	 
	Annex 9: Agency Services

	 	 	23	 
	 
	 	 	 	 
	Annex 10: Engineering Design and Technical Services

	 	 	24	 

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

	(1)	 	Party A: China Unicom Corporation Limited (hereinafter referred to as the “Unicom Group”)

Address: Room 615, Office Tower 3, Henderson Center, 18 Jianguomen Neidajie, Beijing

Legal Representative: Chang Xiaobing
	 
	(2)	 	Party B: 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

Party A and Party B shall be hereinafter collectively referred to as the “Parties” and each
individually as a “Party”.

WHEREAS:

	(1)	 	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
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)	 	China Unicom Corporation Limited (hereinafter referred to as “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)	 	China Netcom (Group) Company Limited (hereinafter referred to as “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,

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	 	 	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 this 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;
	 
	(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.
	 
	 	 	Based on the actual implementation of the relevant Continuing Connected Transaction
Arrangements, after the joint review and negotiations and on the basis of equality and mutual
benefit, the Parties hereby agree on the followings:
	 
	1.	 	Basic principles
	 
	1.1	 	The “Comprehensive Services” under this Agreement refers to certain services and facilities
provided by one Party hereto to the other Party or provided by the Parties hereto to each
other and the related expenses (hereinafter referred to as the “Service Fees”) are to be paid
by the recipient to the provider. Unless otherwise agreed, each Party shall be entitled to
arrange any of its subsidiary (as determined under the Enterprise Accounting Standards revised
from time to time by the Ministry of Finance) to provide or receive any related services in
accordance with the terms and conditions stipulated in this Agreement and receive or pay the
Service Fees.
	 
	1.2	 	Services and/or facilities provided by either Party hereto to the other Party under this
Agreement
are non-gratuitous transactions based on the economic relationship between enterprises. One

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	 	 	party shall be entitled to charge reasonable Service Fees for the services and/or facilities
it provides based on the fair market principles and the other party shall perform its
corresponding payment obligations.
	 
	1.3	 	Conditions and quality of the services and/or facilities provided under this Agreement by any
Party hereto to the other Party shall not be inferior to the condition and quality of the same
or similar services and/or facilities provided by such party to any third party. The exercise
of the rights under this Agreement or the performance of the obligations under this Agreement
by any Party hereto shall be conducted on an arm’ length basis.
	 
	1.4	 	If any Party hereto requires the other Party to increase the supply of any of the services
and/or facilities under this Agreement, the other Party shall make its best efforts to provide
such requested services and/or facilities, of which the conditions and quality shall not be
inferior to the conditions and quality of the services and/or facilities provided to any third
party.
	 
	1.5	 	In the event that any Party hereto is unable to provide, in whole or in part, the services
and/or facilities under this Agreement due to any reasons other than its own fault, such Party
shall notify the other Party in a timely manner, and make its best efforts to assist the other
Party in obtaining the same or similar services and/or facilities through other channels.
	 
	1.6	 	The supply of any services and/or facilities under this Agreement shall comply with the use
purposes as agreed by the Parties and relevant national standards.
	 
	1.7	 	In case that either Party breaches this Agreement, which has caused the other Party to incur
any damages, such Party shall bear the corresponding liabilities for such breach (including
but not limited to the direct and indirect damages caused to the other Party due to such
breach). However, either Party shall be liable for any damages caused to the other Party due
to force majeure.
	 
	1.8	 	When either Party hereto performs its obligations under this Agreement, the other Party shall
provide reasonable and necessary assistance to such Party.
	 
	1.9	 	Subject to Article 1.3 under this Agreement and on condition that the fee standards of the
provider not higher than those of any independent third parties, the recipient agrees to
select the services provided by the provider.
	 
	1.10	 	In the event that there is an independent third party in the area where the provider provides
its services, and if (i) the quality of the services provided by such third party is better
than that provided by the provider; or (ii) the fee standards for supplying services of the
same standards are lower than the fee standards of the provider, the recipient shall, after
giving a notice in writing to the provider, be entitled to terminate the supply of the related
services provided by the provider within such area, and the recipient shall not be liable for
any compensation.
	 
	2.	 	Basic contents of the comprehensive services
	 
	2.1	 	The comprehensive services to be provided by the Parties hereto to each other under this
Agreement and the related agreements are set out in the following annexes:

Annex 1: Interconnection Arrangements (to be provided by the Parties to each other);

Annex 2: Supply of Telephone Cards (to be provided by Party A to Party B);

Annex 3: Equipment Procurement Services (to be provided by Party A to Party B);

Annex 4: Premises (to be provided by the Parties to each other);

Annex 5: International Telecommunications Network Gateways Services (to be provided by Party A to Party B);

Annex 6: Operator-Based Value-Added Services (to be provided by Party A to Party B);

Annex 7: Value-Added Telecommunications Services (to be provided by Party A to Party B);

Annex 8: “10010/10011” Customer Services (to be provided by Party A to Party B);

Annex 9: Agency Services (to be provided by Party A to Party B);

Annex 10: Engineering Design and Technical Services (to be provided by Party A to Party B).

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	3.	 	Principles of pricing and payments
	 
	3.1	 	The principles of pricing and/or fee standards for the services under this Agreement are set
out in various annexes to this Agreement.
	 
	3.2	 	The specific amounts of the service fees under this Agreement shall be calculated pursuant to
the relevant PRC accounting principles as applicable from time to time.
	 
	3.3	 	If the Parties fail to agree upon the amount of any service fees under this Agreement, it
shall be submitted to the relevant authority, which shall make a decision with the reference
to the spirits and terms of this Agreement and pursuant to the relevant national pricing
policies and regulations. The decision made by such authority shall be final and binding on
both Parties.
	 
	3.4	 	Either Party shall comply with the principles of pricing and fee standards as set out in this
Agreement and its annexes, and pay the service fees in a timely manner in respect of the
services provided by the other Party.
	 
	3.5	 	Either Party hereto, if failing to pay the relevant service fees in a timely manner as
agreed, shall pay to the other Party an overdue fine of 0.05% of the outstanding amount for
each overdue day. If any amount has been overdue for 60 days, the other Party may terminate
the relevant services by giving a notice in writing to such Party. If such Party fails to pay
the relevant service fees after 30 days of receipt of such written notice, the other Party
shall be entitled to announce the immediate termination of the relevant services. However, the
suspension or termination of such services shall not prejudice the rights and obligations
previously generated or incurred by both Parties under this Agreement.
	 
	3.6	 	In October every year, the Parties shall review the pricing standards and other terms for
each service and facility to be provided in the next accounting year under this Agreement and
enter into a supplemental agreement. If the Parties fail to reach any agreements on the terms
of the supplemental agreement before the specified time, the pricing standards and related
terms of the current year shall apply in the next accounting year until the Parties reach an
agreement or the dispute can be solved pursuant to Article 3.3.
	 
	4.	 	Terms
	 
	4.1	 	This Agreement shall be valid for a term of 3 years (the “Valid Term”), commencing on the
next day subject to the fulfillment of the conditions under Article 7 of this Agreement.
	 
	4.2	 	Unless Party B gives a notice for not renewing this Agreement in writing to Party A 60 days
in advance, this Agreement shall be extended for another Valid Term upon the expiry of its
Valid Term or the expiry of its extended term subject to the relevant applicable laws,
regulations or other regulatory requirements.
	 
	5.	 	Statements, warranties and undertakings
	 
	5.1	 	Statements, warranties and undertakings of the Parties
	 
	 	 	The Parties hereto have made the following statements, warranties and undertakings to each
other:

	 	5.1.1	 	that it has full power and authority (including but not limited to obtaining the
relevant approvals, consents or permits from the relevant government authorities) to
sign this Agreement and its annexes;
	 
	 	5.1.2	 	that after executed and sealed with the common seal in the required manner, this
Agreement and its annexes shall become valid and binding, and enforceable pursuant to
its terms; and
	 
	 	5.1.3	 	that any terms of this Agreement and its annexes shall under no circumstances be
in
validation of the PRC laws and regulations.

5

 

	5.2	 	As required by the relevant laws, regulations and listing rules, Unicom Group agrees to
continue to support the sustained development of Unicom A Share Company and its subsidiaries
(collectively the “Related Operating Subsidiaries”), including:

	 	5.2.1	 	All the business licenses, consents, permits and approvals (including the
business license of Unicom Group for engaging in the related telecommunications business
and similarly hereinafter) obtained from the national communications industry
authorities such as the Ministry of Industry and Information Technology and other
authorities currently or in the future and related to the listed businesses of Unicom
Operating Company, as well as any other resources allocated and/or obtained (including
but not limited to spectrum, frequency, phone numbers, trade marks and names, and
similarly hereinafter) shall be usable by its Related Operating Subsidiaries. For the
sake of the exclusive interests of the Related Operating Subsidiaries engaging in the
listed businesses, Unicom Group shall obtain, maintain, retain and renew such business
licenses, consents, permits, approvals and other resources pursuant to the laws, and
shall not conduct any acts or omissions that may impair the legality, validity and
renewability of such licenses, consents, permits and approvals and other resources or
the capacity of the Related Operating Subsidiaries in conducting the listed businesses
in accordance with the related laws and regulations. Unicom Group shall conduct any acts
or not to act so as to obtain, maintain, retain, renew or extend such licenses,
consents, permits and approvals as well as other resources and allow the Related
Operating Subsidiaries to conduct their businesses in accordance with the related laws
and regulations;
	 
	 	5.2.2	 	In order to satisfy the needs of the Related Operating Subsidiaries in the
operation of the listed businesses, Unicom Group shall arrange the Related Operating
Subsidiaries to participate in its existing or future roaming arrangements with third
parties under normal commercial terms;
	 
	 	5.2.3	 	Unicom Group shall not conduct any acts in respect to the shareholding/shares it
beneficially owns in the listed group that may lead to the possible loss of its control
over the Related Operating Subsidiaries. In order to avoid doubts, the determination of
the aforesaid control shall be based on the Enterprise Accounting Standards issued by
the Ministry of Finance, as revised from time to time. Subject to the requirements under
the related laws, regulations and listing rules, Unicom Group shall also not approve or
agree with the occurrence and implementation of the aforesaid acts;
	 
	 	5.2.4	 	If there are any connected transactions between the Related Operating
Subsidiaries and Unicom Group and pursuant to the related laws or listing rules of the
place where the listed company’s shares are listed, the relevant accounting records in
respect of such connected transactions are required to be audited by the accountants (or
auditors and similarly hereinafter) appointed by the Related Operating Subsidiaries,
Unicom Group shall agree, for the purpose of such audits, to offer any convenience to
the accountants appointed by the Related Operating Subsidiaries to have full access to
the relevant accounting records (including the accounting records of Unicom Group and/or
its associates);
	 
	 	5.2.5	 	Unicom Group shall not seek an overseas listing of its businesses or any
businesses of its subsidiaries that are similar to the list group’s existing or future
businesses unless through Unicom Red Chip;
	 
	 	5.2.6	 	Unicom Group undertakes that as long as the shares of Unicom A Share Company and
Unicom Red Chip are listed and traded and pursuant to the laws or listing rules of the
place where the shares are listed, Unicom Group is deemed to be the controlling
shareholder and an associate of the controlling shareholder of Unicom A Share Company
and Unicom Red Chip, save for the CDMA mobile communications business, Unicom Group
shall not engage or participate in, and shall prevent and avoid any of its other
subordinate enterprises from engaging or participating in any businesses within
the territory of PRC in any way (including but not limited to a wholly owned
enterprise,

6

 

	 	 	 	equity joint venture or cooperative joint venture and directly or
indirectly owing the shares or other interest of other companies or enterprises,
except through the Related Operating Subsidiaries, and similarly hereinafter), that
may compete with Unicom A Share Company or Unicom Red Chip. In case that Unicom
Group and/or any of its other subordinate enterprises participate in or conduct any
business or activities in any place within the territory of the PRC in any way and
at any time which transform into a business that may compete with Unicom A Share
Company or Unicom Red Chip, Unicom Group shall immediately stop and/or procure its
relevant subordinate enterprises to stop participating in, managing or operating
such competing business;
	 
	 	5.2.7	 	If Unicom Group or any of its other subordinate enterprises obtain any
governmental approval, authorization or permit to develop any new telecommunications
technologies, products or services, or intend to develop any new telecommunications
technologies, products or services, or have secured any other operating opportunities,
Unicom Group shall directly, and/or procure its relevant subordinate enterprises to
immediately inform the Related Operating Subsidiaries of the relevant situation, and
shall first provide such governmental approval, authorization or permit and the rights
for the development of such new telecommunications technologies, products and services
as well as the rights for leveraging on any such operating opportunities to Unicom
Operating Company or its subsidiaries in accordance with the needs of the Related
Operating Subsidiaries after the completion of the requisite formalities.
	 
	 	5.2.8	 	The Parties hereby agree that the above statements, warranties and undertakings
of Unicom Group shall supersede the relevant statements, warranties and undertakings
under Section 13, 14, 16, 17 and 18 of Article 3.2 and Article 5.1 and Article 5.2 in
the Reorganization Agreement it entered into with Unicom Operating Company on April 21,
2000 while the other terms under the Reorganization Agreement shall remain unchanged.

	6.	 	Transfer
	 
	6.1	 	Subject to the terms and conditions as stipulated in this Agreement and those as agreed in
the Memorandum on Connected Transactions, Party A irrevocably agrees that Party B may transfer
its rights and obligations under this Agreement to any of its Related Operating Subsidiaries,
and no other consents from Party A is required in respect of the transfer by Party B of its
rights and obligations under this Agreement to any of its Related Operating Subsidiaries.
	 
	6.2	 	Once Party B has transferred its rights and obligations under this Agreement to any of its
Related Operating Subsidiaries, such Related Operating Subsidiaries shall immediately succeed
to all the rights and obligations of Party B under this Agreement and Party B shall
immediately be released from the relevant rights and obligations to which the Related
Operating Subsidiaries have succeeded.
	 
	7.	 	Effectiveness
	 
	 	 	This Agreement shall take effect upon the fulfillment of the following conditions and on the
date agreed by the Parties:
	 
	7.1	 	The shareholders’ general meeting of Party B approves the execution of this Agreement in
compliance with the applicable laws, regulations and listing rules;
	 
	7.2	 	The shareholders’ general meeting of Unicom Red Chip approves the transfer by Party B of its
rights and obligations under this Agreement to the Related Operating Subsidiaries in
compliance with the applicable laws, regulations and listing rules;
	 
	7.3	 	The Merger Transaction is executed and completed.
	 
	8.	 	Force majeure
	 
	 	 	If either Party is unable to perform the relevant obligations under this Agreement or its
relevant

7

 

	 	 	annexes 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 any such occurrence, provide the relevant details and valid
supporting documents for the failure or partial failure in performing or the reasons for the
postpone of the performance of the relevant obligations under this Agreement and its 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
such force majeure events on the performance of the obligations.
	 
	9.	 	Confidentiality
	 
	 	 	Save as otherwise required by the laws or the relevant regulatory authorities, or for the
purpose of any disclosures by Party B to any regulatory authorities, neither Party shall be
entitled to provide or disclose any data or information relating to the operations of the
other Party to any companies, enterprises, organizations or individuals without the
permission in writing from the other Party.
	 
	10.	 	Non-waiver
	 
	 	 	Unless otherwise required by the laws, no failure or delay by either Party in exercising any
of its rights, powers or privileges under this Agreement 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.
	 
	11.	 	Notification
	 
	 	 	Any notice relating to this 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 sent 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 served 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 days
(extended in case of any statutory holidays) after dispatch of the mail. Any notice shall
take effect once served.
	 
	12.	 	Governing laws
	 
	 	 	This Framework Agreement is governed by PRC laws and shall be interpreted and implemented in
accordance with PRC laws.
	 
	13.	 	Disputes settlement
	 
	 	 	Save as otherwise required in Article 3.3 of this Agreement, all disputes resulting from the
execution of this Agreement or relating to this 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.
	 
	14.	 	Miscellaneous
	 
	14.1	 	Once this Agreement takes effect, the former continuing connected transaction arrangement
shall be terminated immediately.
	 
	14.2	 	Annex 1 to Annex 10 under this Agreement are an integral part of this Agreement and shall
have equal status with the text of this Agreement. In the event of inconsistency between the
agreements in the annexes of this Agreement and the text of this Agreement, the agreements
under the annexes of this Agreement shall prevail.

8

 

	14.3	 	Upon reaching an agreement by the Parties through negotiation, the Parties may amend or
supplement this Agreement and its annexes and all 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.
	 
	14.4	 	This Agreement is severable, that is, if any provisions under this Agreement and its annexes
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 Agreement and its annexes.
	 
	14.5	 	This Agreement is signed in four copies with each party holding two copies. All copies shall
have the same legal force.

Page for signatures:

China Unicom Corporation Limited (seal)

Legal representative or his authorized representative: (signature)

China United Telecommunications Corporation Limited (seal)

Legal representative or his authorized representative: (signature)

9

 

Annex 1: Interconnection Arrangements

	1.	 	Types of interconnection
	 
	 	 	Party B and Party A agree to accomplish the interconnection of the various telecommunications
networks between them for the purpose of operating the communications business in relation to
their various telecommunications networks.
	 
	2.	 	Interconnection technical rules, technical standards, interconnection fee sharing and project
construction
	 
	2.1	 	The various types of interconnection between the Parties specified in the above shall comply
with the interconnection technical rules and technical standards promulgated by the relevant
national communications authorities.
	 
	2.2	 	The Parties shall determine the issues, such as the method for interconnection fee sharing
and project construction, through negotiation with reference to the relevant requirements of
the national communications authorities.
	 
	3.	 	Obligations of the Parties
	 
	3.1	 	The Parties shall ensure that the communications quality between their networks shall not be
lower than the communications quality of the similar operations within their respective
networks.
	 
	3.2	 	As for the telecommunications businesses (including special businesses and intelligent
businesses) provided by either Party hereto to subscribers of its own network, the Party
shall, at the request of the other Party, provide the same services to subscribers of the
relevant telecommunications network of the other Party unconditionally and promptly, and shall
ensure the service quality provided that it is technically feasible.
	 
	4.	 	Network management and adjustment
	 
	4.1	 	If any network capacity expansion implemented by either Party might affect the communications
of the other Party, the Party shall inform the other Party of such situation six months in
advance.
	 
	4.2	 	In case of any adjustment made by either Party to the route system, trunk circuit, signaling
mode, cell data and software in its network might affect the communications of the other
Party’s subscribers, the Party shall inform the other Party of such situation thirty days in
advance.
	 
	4.3	 	Either Party shall, at the request of the other Party, offer timely cooperation in any
adjustment made by the other Party to the route system, trunk circuit, signaling mode, cell
data and software in the network of the other Party and ensure the quality of interconnection.
	 
	5.	 	Maintenance, technical failure and failure recovery
	 
	5.1	 	The Parties shall conduct network maintenance in accordance with the relevant regulations
promulgated by the relevant national communications authorities from time to time so as to
ensure the normal operation of the entire network.
	 
	5.2	 	Either Party shall not terminate the interconnection between the networks without the consent
from the other Party.
	 
	5.3	 	In case of any network breakdown or extremely heavy communication traffic, the Parties shall
immediately take effective measures to restore the smooth operation.
	 
	6.	 	Settlement and payment of the fees
	 
	6.1	 	Settlement principles

10

 

	 	(1)	 	Settlement of all the interconnections of the Parties
	 
	 	 	 	The Parties agree that settlement shall be made in accordance with the relevant
provisions stipulated in the Notice Concerning the Distribution of Settlement for
Interconnections and Sharing of Relaying Fees (Xin Bu Dian [2003] No. 454) promulgated
by the former Ministry of Information Industry on October 28, 2003.
	 
	 	(2)	 	The Parties further agree that if the settlement made with reference to the
settlement method (and its amendments from time to time) promulgated by the relevant
national authorities in respect of the similar settlement for interconnection is more
favorable for Party B than the above interconnection settlement arrangements, settlement
shall be made with reference to such settlement method.

	6.2	 	Fee standards
	 
	 	 	Interconnection settlement shall be based on Party B’s billing information. In case of any
discrepancy of more than 3% between the billing information of the Parties, the Parties shall
separately determine the settlement basis through negotiations.
	 
	6.3	 	Transmission of billing information and settlement
	 
	 	 	Any other types of settlements for the interconnection of mobile networks and fixed networks
of the Parties
	 
	 	 	The Parties agree that settlement shall be made directly by their respective subordinate
entities in accordance with the settlement principles stipulated in this annex on a monthly
basis.

11

 

Annex 2: Supply of Telephone Cards

	1.	 	Scope of the special-purpose telecommunications card supply services
	 
	 	 	Based on its actual needs, Party B may request Party A to supply special-purpose cards
(collectively referred to as “special-purpose telecommunications cards” in this annex),
including SIM cards, UIM cards, IP phone cards, long-distance cards and rechargeable cards to
Party B.
	 
	2.	 	Quantity of special-purpose telecommunications cards
	 
	2.1	 	Confirmation of annual and regular card ordering plans

	 	(1)	 	Party B shall submit its annual plan for ordering special-purpose
telecommunications cards for the next year in October each year to Party A pursuant to
its annual business development plan.
	 
	 	(2)	 	Party B shall confirm to Party A its card ordering plans for the periods of May
to August, September to December of the current year and January to April of the next
year respectively in February, May and September each year. Except for the reasons of
force majeure, Party A shall supply special-purpose telecommunications cards in
accordance with the card ordering plans confirmed by Party B.

	2.2	 	Rush order/temporary order
	 
	 	 	Party B shall be entitled to make any adjustments to the aforesaid card ordering plans. As to
the rush orders/temporary orders, Party A shall try all its best efforts to satisfy the
orders and confirm to Party B within 3 days upon receiving Party B’s request whether it can
provide the relevant special-purpose telecommunications cards according to Party B’s
requirements.
	 
	3.	 	Price of special-purpose telecommunications cards
	 
	3.1	 	The Parties agree that the price of special-purpose telecommunications cards shall be
determined in accordance with the actual costs (including the cost for importing
special-purpose telecommunications cards, costs of production and costs for supplying
special-purpose telecommunications cards to Party B) incurred by Party A in providing
special-purpose telecommunications cards, plus a profit margin of not more than 20% of the
costs as agreed by the Parties from time to time. The Parties agree that certain discounts
shall be offered through consultation based on the quantity of special-purpose
telecommunications cards ordered by Party B.
	 
	3.2	 	For any rush orders /temporary orders made by Party B in addition to the normal card orders,
Party A may, at its discretion, charge an additional fee of not more than 10% on the basis of
the price of special-purpose telecommunications cards as set forth in the above.
	 
	3.3	 	The Parties agree to make a review and determine the exact sale price for each kind of
special-purpose telecommunications cards for the next year in December each year.
	 
	4.	 	Time and venue for the delivery of special-purpose telecommunications cards
	 
	 	 	Party A shall deliver special-purpose telecommunications cards to the locations specified by
Party B in accordance with the time stipulated in the card ordering plans and the
arrangements for rush orders/temporary orders.
	 
	5.	 	Quality of special-purpose telecommunications cards
	 
	5.1	 	Party A guarantees that the quality of special-purpose telecommunications cards supplied by
it complies with the standards formulated by the relevant national authorities and any
requisite evidencing certificates would be provided.

12

 

	5.2	 	Party A guarantees that all the numbers and passwords of the special-purpose
telecommunications cards supplied by it shall be produced under a secure and reliable
environment. Party A also guarantees the technology, security and confidentiality of such
numbers and passwords.
	 
	5.3	 	If Party B raises any question about the quality of special-purpose telecommunications cards
within 5 days upon receipt of the special-purpose telecommunications cards supplied by Party
A, Party A shall be responsible for the replacement and/or repair of any defective
special-purpose telecommunications cards, so that they will meet the relevant standards and
the requirements of Party B, unless the defect is caused by Party B.
	 
	5.4	 	If Party B suffers any losses due to the quality problems of special-purpose
telecommunications cards not identified by it after it has made reasonable efforts, Party A
shall indemnify Party B for all direct losses incurred by Party B due to those quality
problems.
	 
	6.	 	Payment
	 
	6.1	 	Party B shall make an advance payment of the amount equivalent to 15% of the aggregate
purchase price for the special-purpose telecommunications cards ordered by it to Party A when
confirming the card order;
	 
	 	 	Party B shall make a payment of the remaining balance equivalent to 85% of the aggregate
purchase price for the special-purpose telecommunications cards ordered by it to Party A when
Party A delivers all the special-purpose telecommunications cards in accordance with the
relevant card order placed by Party B;
	 
	6.2	 	Payment for rush orders/temporary orders
	 
	 	 	Upon confirmation of any rush orders/temporary orders placed by Party B, Party B shall
promptly make a full payment (including the rush order charge) to Party A and request Party A
to deliver the relevant special-purpose telecommunications cards in a timely manner.
	 
	7.	 	Other telephone cards
	 
	 	 	Party B may request Party A to supply any other special-purpose telecommunications cards
according to its business development needs. Party A shall supply such cards if there is a
feasible plan after making an overall consideration of certain factors, such as specific
technologies and operation conditions.
	 
	 	 	The Parties agree to negotiate with each other on issues such as the quantity, price and
payment of any other special-purpose telecommunications cards. The price of the relevant
special-purpose telecommunications cards shall be determined on the basis of the actual costs
incurred by Party A in providing such cards, plus a profit margin of not more than 20%.

13

 

Annex 3: Equipment Procurement Services

	1.	 	Scope of equipment procurement services
	 
	 	 	In accordance with its actual needs, Party B requests Party A (through any subsidiaries
controlled by it) to act as its agent responsible for purchasing telecommunications equipment
and other materials from the overseas.
	 
	 	 	Party A shall, in accordance with the requirements of Party B, provide comprehensive
procurement services including tender invitation, consultation and agency.
	 
	2.	 	Procedures for equipment procurement services
	 
	 	 	The Parties agree that Party A shall provide equipment procurement services to Party B in
accordance with the Notice on the Provisions for the Procurement of Communications Equipment
by China United Telecommunications Corporation Limited (China Unicom Mao Zi [2003] No.754),
Notice on the Administrative Measures for the Import of Communications Equipment by China
United Telecommunications Corporation (China Unicom Mao Zi [2004] No.8) and the provisions
stipulated in other relevant documents as agreed by the Parties to be applicable.
	 
	3.	 	Equipment procurement service fees and payment
	 
	3.1	 	Party B shall pay service fees for equipment procurements to Party A:

	 	(1)	 	For foreign trade contracts for equipment procurements with a contract price of
less than US$30 million (including US$30 million), the service fees shall be charged at
0.55% of the contract price. For contracts with a contract price more than US$30
million, the service fees (including bank charges) shall be charged at 0.35% of the
contract price;
	 
	 	(2)	 	For domestic trade contracts for equipment procurements signed by Party A as the
agent with a contract price of less than RMB200 million (including RMB200 million), the
service fees shall be charged at 0.25% of the contract price. For contracts with a
contract price of more than RMB200 million, the service fees shall be charged at 0.15%
of the contract price.

	3.2	 	Party B agrees to pay service fees to Party A on a monthly basis.
	 
	 	 	For any overdue service fees, Party B shall pay an overdue fine to Party A at 0.5% of any
outstanding amount for each day.

14

 

Annex 4: Premises

	1.	 	Use and purpose of property
	 
	1.1	 	Any Party hereto agrees that it (or any subsidiaries controlled by it) (hereinafter referred
to as the “Provider”) shall provide certain property owned by itself (hereinafter referred to
as “Self-owned Property”) and certain property the use rights of which are obtained from third
parties (hereinafter referred to as “Third-party Property”) (including sites, buildings, air
conditioners, power supply, power equipment and related ancillary facilities) to the other
Party (hereinafter referred to as the “Recipient”) for its use in accordance with any request
made by the other Party from time to time.
	 
	1.2	 	The Recipient shall use the aforesaid property of the Provider for the purpose of offices,
business premises, retail stores and business operation.
	 
	1.3	 	The Provider shall make the relevant property available for examination by the Recipient
before signing a formal use or lease agreement. The property shall be in good condition and
meet the requirements of the Recipient.
	 
	2.	 	Fees and payment
	 
	2.1	 	For the use of any Self-owned Property as provided by the Provider, the fees or rentals to be
paid by the Recipient shall be determined in accordance with the lower of the depreciation
costs of such property or the market price for using similar property in the place where such
property is located. Notwithstanding the above provisions, the Provider may choose to charge
the fees according to the market price of the place where the relevant property is located.
	 
	2.2	 	For the lease of buildings, apart from paying the building rentals, the Recipient shall
separately pay the expenses (hereinafter referred to as “Miscellaneous Expenses”) for water,
electricity and air conditioning actually consumed or used by the Recipient and the property
management fees for the leased buildings on schedule pursuant to the price or charge standards
set by the relevant pricing authorities. Except the aforesaid rentals, Miscellaneous Expenses,
property management fees and any other expenses incurred as a result of the violation of this
provision by the Recipient, the Provider guarantees that is shall not ask the Recipient to
bear and/or pay any other fees (including any taxes payable by the Provider) in connection
with the building lease.
	 
	2.3	 	For the use of any Third-party Property by the Recipient, the Parties shall share the fees
actually paid to any third parties proportionally based on their respective use of the
relevant property.
	 
	2.4	 	For any building leases, the relevant rentals, Miscellaneous Expenses and property management
fees shall be paid as follows:

	 	2.4.1	 	During the valid term of a lease agreement, the Recipient shall pay the rentals
to the Provider on a quarterly basis. The rentals shall be paid within 5 days after the
end of each quarter.
	 
	 	2.4.2	 	During the valid term of a lease agreement, the Miscellaneous Expenses shall be
paid on a monthly basis. Upon the receipt the voice of the Miscellaneous Expenses from
the relevant property management company, the Provider shall submit the invoice to the
Recipient within five days. The Recipient may pay the Miscellaneous Expenses directly to
the property management company pursuant to the requirements of the property management
company or make a payment to the Provider who will pay on its behalf. If the Provider is
to make the payment on behalf of the Recipient, the Provider shall submit the relevant
receipt to the Recipient for filing.
	 
	 	2.4.3	 	During the valid term of a lease agreement, the property management fees for the
leased buildings shall be paid on a monthly basis. The property management fees shall be
paid by the Recipient at the end of each month pursuant to the requirements of the
relevant property management company to the property management company through

15

 

	 	 	 	the Provider or directly. If the Provider is to make the payment on behalf of the
Recipient, the Provider shall submit the relevant receipt to the Recipient for
filing.

	2.5	 	For the use of any other property other than buildings, the Recipient shall pay the fees to
the Provider within 15 days after the end of each month on a monthly basis.
	 
	2.6	 	For any overdue fees or rentals, the Recipient shall pay an overdue fine to the Provider at
0.05% of any outstanding amount for each day overdue.
	 
	3.	 	Undertakings and warranties
	 
	 	 	The Provider guarantees that it has the right to provide the aforesaid Self-owned Property
and Third-party Property (including sites, buildings and related ancillary facilities) for
use by the Recipient. In the event that under any circumstances or for any reasons, there is
any dispute on the Provider’s ownership and/or use right of such property, that has prevent
the Recipient from exercising its rights under this annex or has caused the Recipient to have
incurred any other damages, the Provider agrees to indemnify the Recipient for all the losses
incurred.
	 
	4.	 	Matters that have not been dealt with in this annex shall be agreed on by the Provider and
the Recipient through any other premises agreements.

16

 

Annex 5: International Telecommunications Network Gateways Services

	1.	 	Scope of the international telecommunications network gateways services
	 
	 	 	Party A owns and operates the international gateways in Guangzhou, Shanghai and Beijing
(under construction).
	 
	 	 	If Party B requires the international gateways to provide any corresponding services (such
as mobile phone international automatic roaming signaling transfer service) for operating the
relevant businesses, Party A agrees to provide the relevant services in accordance with the
requirements of Party B.
	 
	 	 	All revenue derived by Party B from operating businesses on the basis of the gateway
services shall be vested in Party B.
	 
	 	 	Party A undertakes not to provide international gateway services to any other operators.
	 
	2.	 	Service fee rates and payment

	 	2.1	 	The service fees charged by Party A to Party B is calculated according to the
following formula:
	 
	 	 	 	All the actual expenses incurred by Party A in the reasonable operation and maintenance of
the international gateways (including depreciation expenses)×(1+10%)
	 
	 	2.2	 	Payment
	 
	 	 	 	Party B shall pay the relevant service fees to Party A within fifteen days after the end
of each month on a monthly basis.
	 
	 	2.3	 	For any overdue amount of the service fees, Party B shall pay an overdue fine to
Party A at 0.05% of any outstanding amount for each day overdue.

	3.	 	Quality assurance and failure recovery
	 
	 	 	Party A guarantees that the relevant equipment of its international gateways complies with
the standards and regulations formulated by the relevant national authorities and it shall
operate and maintain the international gateways in accordance with the technical standards
formulated by the relevant national authorities from time to time.
	 
	 	 	Party B guarantees that its relevant communications equipment connected to the
international gateways complies with the quality standards and technical requirements
stipulated by the relevant national authorities.
	 
	 	 	If there is a reasonable ground for Party A to restructure its international gateways,
Party A shall give an advance notice to Party B to make appropriate arrangements to ensure the
normal operation of Party B as much as possible.
	 
	 	 	Party A shall have a department dedicated to handling any failure reports submitted by
Party B on a ground-the-clock basis and make appropriate arrangements to handle any such
failures. Upon identifying any failure or receiving the failure report from Party B, Party A
shall immediately arrange for handling the failure and Party B shall send its personnel to
offer assistance. Party A guarantees that it shall fix any such failures related to the
international gateways within the recovery time frame stipulated in the relevant national
maintenance procedures.
	 
	 	 	In the event that any businesses operated by Party B are affected due to any reasons
related to the international gateways, Party A shall be responsible for the direct losses and
reasonable indirect losses caused to Party B.

17

 

	4.	 	Party A agrees that it shall transfer its international gateways to Party B at the request of
Party B when Party B is entitled to own any international gateways pursuant to the laws in the
future.

18

 

Annex 6: Operator-Based Value-Added Services

	1.	 	Overview
	 
	 	 	Party A (or any subsidiaries controlled by it), acting as the provider, offers various
value-added services, including but not limited to Unicom secretarial and artificial
information services, to the subscribers of Party B through the artificial integrated platform.
	 
	2.	 	Settlement

	 	2.1	 	The actual cash revenue generated from the provision of the value-added services
referred to in this annex as provided by Party A to Party B shall be settled by Party B
and the respective branches of the provider at the proportion of 4:6. The settlement
proportion shall not exceed the average level of the proportions used by Party B for any
other similar value-added telecommunications services provided by any other CP/SPs
independent of the provider in the same region.
	 
	 	2.2	 	Settlement shall be based on the billing information collected by Party B.
	 
	 	2.3	 	The Parties agree that the settlement shall be made directly by their respective
subordinate entities in accordance with the settlement principles stipulated in this annex
on a monthly basis.

	3.	 	Obligations of the Parties concerned

	 	3.1	 	In the event that the network construction (including but not limited to capacity
expansion or renovation) carried out by either Party hereto, such Party shall inform the
other Party six months in advance.
	 
	 	3.2	 	The Parties concerned shall carry out the maintenance of the network in accordance
with the relevant regulations promulgated by the relevant national communications
authorities from time to time so as to ensure the normal operation of the entire network.
	 
	 	3.3	 	The Parties hereto shall not suspend communications arising from the service
businesses under this annex without the consent from the other Party. In case of any
suspended communications or seriously impeded communications, the Parties shall take
effective measures to restore communications.

19

 

Annex 7: Value-Added Telecommunications Services

	1.	 	Overview
	 
	 	 	Party A (or any subsidiaries controlled by it), acting as the provider, provides various
value-added services to the subscribers of Party B through the telecommunications network and
information platform.
	 
	2.	 	Settlement

	 	2.4	 	The actual cash revenue generated from the provision of the value-added services
referred to in this annex as provided by Party A to Party B shall be settled by Party B
and the respective branches of the provider according to the average level of the
proportions used by Party B for any other similar value-added telecommunications services
provided by any other CP/SPs independent of the provider in the same region.
	 
	 	2.5	 	Settlement shall be based on the billing information collected by Party B.
	 
	 	2.6	 	The Parties agree that the settlement shall be made directly by their respective
subordinate entities in accordance with the settlement principles stipulated in this annex
on a monthly basis.

	3.	 	Obligations of the Parties concerned

	 	3.4	 	In the event that the network construction (including but not limited to capacity
expansion or renovation) carried out by either Party hereto, such Party shall inform the
other Party six months in advance.
	 
	 	3.5	 	The Parties concerned shall carry out the maintenance of the network in accordance
with the relevant regulations promulgated by the relevant national communications
authorities from time to time so as to ensure the normal operation of the entire network.
	 
	 	3.6	 	The Parties hereto shall not suspend communications arising from the service
businesses under this annex without the consent from the other Party. In case of any
suspended communications or seriously impeded communications, the Parties shall take
effective measures to restore communications.

20

 

Annex 8: “10010/10011” Customer Services

	1.	 	Services
	 
	 	 	Party A (or any subsidiaries controlled by it), acting as the provider, offers artificial
customer services, such as service consultation, call fee inquiry, service acceptance,
complaint handling (hereinafter referred to as “10010 Basic Services”), as well as customer
callback and subscriber retention (hereinafter referred to as “10010 Value-added Services”) to
Party B through its 10010/10011 services platform and charges a fee to Party B.
	 
	2.	 	Fee standards

	 	2.1	 	The standards of the service fees referred to in this annex: the costs for rendering
the above customer services (“Customer Services Costs”) plus a profit margin of not more
than 10%.
	 
	 	2.2	 	The above Customer Services Costs shall be determined by multiplying the cost per
agent with the actual effective agents:

	 	(a)	 	For economically developed major cities (such as Beijing, Shanghai and
Guangdong), the cost per agent is the actual cost per agent (defined as follows) for
the region in the previous year. For regions other than these economically developed
major cities, the cost per agent is the actual cost per agent for the region in the
previous year or the average actual cost per agent (defined as follows) for the
whole country (excluding Beijing and Shanghai) with a premium of 10%, whichever is
lower.
	 
	 	 	 	The actual cost per agent includes staff wages, management fees, operation and
maintenance fees, equipment depreciation and site rentals related to 10010
Customer Services Business. The actual cost per agent for each region is
determined by dividing the 10010/10011 customer services agent cost for the region
incurred by the provider as recognized in the auditor’s report issued by an
independent auditing institution in the previous year by the annual average
monthly agents in the previous year. The auditor’s report and the relevant
supporting documents shall be submitted to the auditors of Party B.
	 
	 	(b)	 	The determination of the actual effective agents: The provider shall
provide the agent number of the previous year to Party B before the 10th
day of each month. Party B shall confirm the effective agent number with reference
to the service standards of customer service centers stipulated in Standards for
Telecommunications Services (Trial) issued by the former Ministry of Information
Industry within 5 working days. The effective agent number shall be based on the
number finally confirmed by Party B.

	 	2.3	 	The Parties agree that the settlement shall be made directly by their respective
subordinate entities in accordance with the settlement principles stipulated in this annex
on a monthly basis.

	3.	 	Obligations of the Parties concerned

	 	3.1	 	Party A shall, in accordance with Party B’s needs, properly increase the service
agent number or service content, including but not limited to establishing designated
agents for the purpose of offering 10010 value-added services pursuant to the written
instruction of Party B. The cost per agent shall be confirmed in accordance with the
reference to Item 2 (a) above.
	 
	 	3.2	 	Party B shall provide the information on any new businesses undertaken by Party B for
its subscribers to the provider from time to time, and provide the information on various
businesses undertaken by Party B for its subscribers to the provider from time to time in
accordance with the needs of the provider.

21

 

	 	3.3	 	The Parties hereto shall not suspend communications arising from the service
businesses under this annex without the consent from the other Party. In case of any
suspended communications or seriously impeded communications, the Parties shall take
effective measures to restore communications.

22

 

Annex 9: Agency Services

	1.	 	Services
	 
	 	 	Party A (or any subsidiaries controlled by it), acting as the provider, launches
product/service promotion and marketing activities in accordance with the market conditions and
the needs and requirements of Party B.
	 
	2.	 	Fee standards
	 
	 	 	The standards of the agency services provided by the provider shall not be lower than the
service standards of any independent third party agents responsible for expanding subscriber
base in the same region. The agency fees charged to Party B shall not be higher than the
average agency fees charged by the independent third party agents responsible for expanding
subscriber base in the same region.
	 
	3.	 	Other settlement issues

	 	3.1	 	Settlement shall be based on the billing information collected by Party B.
	 
	 	3.2	 	The Parties agree that the settlement shall be made directly by their respective
subordinate entities in accordance with the settlement principles stipulated in this annex
on a monthly basis.

23

 

Annex 10: Engineering Design and Technical Services

	1.	 	Services
	 
	 	 	Party A (or any subsidiaries controlled by it), acting as the provider, provides engineering
and technical services to Party B (the “Recipient”) in accordance with the needs and
requirements of Party B.
	 
	2.	 	Method for determining the provider
	 
	 	 	The Parties agree that the Recipient shall determine the provider for engineering and technical
services through tender invitation. The provider shall have the qualifications and conditions
not inferior to that of any independent third parties, and shall participate in the tender
invitation procedure equally with any independent third parties.
	 
	3.	 	Service standards
	 
	 	 	The service standards for providing the above services to the Recipient by the provider shall
not be lower than the service standards for providing similar services to the Recipient by any
other independent third parties.
	 
	4.	 	Fee standards

	 	4.1	 	The fee standards for the engineering services shall be determined with the reference
to and shall not be higher than the Fee Standards for Survey and Engineering promulgated
by the former State Planning Commission and the Ministry of Construction in 2002 and other
relevant national standards, and shall not be higher than the fee standards adopted by any
other independent third parties providing similar services in the industry.
	 
	 	4.2	 	The fee standards for technical services shall be determined with the reference to
and shall not be higher than that stipulated in the Circular of the State Planning
Commission on Printing and Distributing the Interim Provisions on Construction Project
Preliminary Work Consultation Fees promulgated by the former State Planning Commission in
1999 and other relevant national standards, and shall not be higher than the fee standards
adopted by any other independent third parties providing similar services in the industry.

	5.	 	Other settlement issues
	 
	 	 	The Parties agree that the settlement shall be made directly by their respective subordinate
entities in accordance with the settlement principles stipulated in this annex and the payment
shall be made according to the progress of the actual contract performance.

24

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