Document:

PCCW Limited: Exhibit 4(nn) Prepared by TNT Filings Inc.

EXHIBIT 4(nn)

4 August 1999 

Mr Yuen Tin Fan (Francis) 

Present 

 

Dear Francis 

We have pleasure to inform you that your employment with
Pacific Century Asset Management (HK) Limited is to be transferred to Pacific
Century CyberWorks Limited ("PCCW") effective 4 August 1999. Upon transfer, all
terms and conditions of employment that you are presently enjoying will remain
unchanged. The years of service you have accumulated with the Group will also be
recognized and, therefore, will not affect your accumulated entitlement under
the Provident Fund Plan which will be transferred to PCCW. All your other
accrued entitlement such as annual leave will be carried forward in your
continued employment. 

To cope with our future expansion, we are presently
undergoing a company restructuring exercise. It will be likely that your
employment will ultimately be transferred again to a subsidiary of PCCW in order
to better reflect your area of responsibilities. However, such transfer, again,
will have no effect on the terms and conditions of employment. 

We need your support to lay the foundation for the future success of PCCW.
Please signify your acceptance to the above by signing and returning the
duplicate of this letter. 

Yours sincerely 

	
    
	Peter To
	Deputy Chairman
    

    Pacific Century
    CyberWorks Limited

I confirm acceptance to the transfer of my employment from Pacific Century Asset
Management (HK) Limited to PCCW effective 4 August 1999 and understand that it
will have no effect on the terms and conditions of my employment.

 

38th Floor, Citibank Tower, Citibank Plaza, 3 Garden Road,
Central, Hong Kong, Tel: 852 2514 8888 Fax: 852 2524 4375

 

Dated the                      
day of                              
1996 

 

PACIFIC CENTURY ASSET MANAGEMENT (HK) LIMITED 

and

YUEN TIN FAN FRANCIS

 

                                                                                                               

 

SERVICE AGREEMENT 

                                                                                                               

 

P. C. WOO & CO. 

Solicitors & Notaries 

1225 Prince's Building, 

Central, Hong Kong 

 

 

SERVICE AGREEMENT 

 

Dated the                        
day of                        
1996 

 

PARTIES 

(1)           
PACIFIC CENTURY ASSET MANAGEMENT (HK) LIMITED whose registered office is
situate at 38th Floor, Citibank Tower, Citibank Plaza, 3 Garden Road, Central,
Hong Kong (the "Company"); and 

(2)           
YUEN TIN FAN FRANCIS, the holder of Hong Kong Identity Card No.
E492872(9) of 9B, No 43 Repulse Bay Road, Hong Kong (the "Executive"). 

WHEREAS:- 

1             
The Company is a company incorporated in Hong Kong with its liabilities limited
by share capital as more particularly defined in its Memorandum and Articles of
Association. 

2             
The Company is desirous of engaging the services of the Executive and appointing
the Executive as a director of the Company on the terms and conditions contained
in this Agreement. 

3             
The services of the Executive shall be beneficially enjoyed by the Company and
other companies of the Group (as hereinafter defined) which operates
internationally. 

 

NOW THIS AGREEMENT PROVIDES AS FOLLOWS:- 

  
    PART I - INTERPRETATION AND GENERAL PROVISIONS 

  

1               INTERPRETATION 

1.1           
In this Agreement, unless the context otherwise requires, the following words
and expressions shall bear the meanings set opposite them:-  

 

1 

 

	
    Expression	Meaning
	 	 	
     
	1.1.1	Associate	
    a Subsidiary and or any other company which is for the time being a holding
    company (as defined by the Companies Ordinance) of the Company or another
    subsidiary of any such holding company, and a company over which the Company
    or such holding company, their subsidiaries or other subsidiaries, whether
    jointly or individually has control. For the purposes of this definition,
    control by one company over another shall mean the right to acquire or hold
    20% or more of the issued share capital or voting power in such company.
    
	 	 	 
	1.1.2	 Board	
    the Board of Directors of the Company
    for the time being. 
	 	 	 	 
	1.1.3	Chairman	
    the Chairman appointed by the Board
    from time to time and who is at the date hereof Mr. Richard Tzar Kai Li.
	 	 	 	 
	1.1.4
    	Companies
    Ordinance	
    the Companies Ordinance, Chapter 32 of
    the Laws of Hong Kong. 
	 	 	 
	1.1.5	
    Confidential Information	
    any secret confidential or private
    information:- 
	 	 	 
	 	 	1.1.5.1	relating
    to the dealings, organisation, business, finance, transactions or any other
    affairs, strategy or relationships of any company within the Group or its
    clients or customers; 
	 	 	 	 
	 	 	1.1.5.2 	relating
    to research and development, market research or intelligence or the working
    of any process or invention which is carried on or used by any company of
    the Group during the term of this Agreement; or
	 	 	 	 

 

2 

 

                      
                    
                  
                
              
            
          
        
      
    
  

 

			1.1.5.3	 in
    respect of which any such company is bound by an obligation of confidence to
    any third party. 
				
	1.1.6	Group	
    the Company, the companies listed in
    Schedule One and such other Associates as the Board may in its absolute
    discretion at any time specify. 
				
	1.1.7	the
    Restricted Territory	
    the countries and places at which,
    during the term and as at the termination of engagement under this
    Agreement, the Company and the Executive shall agree in writing from time to
    time are those in which the Company or any company within the Group has a
    business operation, a representative office or branch or a substantial
    active investment.
				
	1.1.8
    	Service
    Territory 	
    Hong Kong 
				
	1.1.9
    	Subsidiary	
     a subsidiary (as defined under
    section 2(4)-(6) of the Companies Ordinance) of the Company. 

1.2           
Words importing one gender include all other genders and words importing the
singular include the plural and vice versa. 

1.3           
Any reference to a statutory provision shall be deemed to include a reference to
any statutory modification or re-enactment of it. 

1.4           
The clause headings do not form part of this Agreement and shall not be taken
into account in its construction or interpretation. 

1.5           
Any reference to the Executive shall if appropriate include his personal
representatives. 

1.6           
References in this Agreement to any clause, sub-clause, schedule or paragraph
without further designation shall be construed as references to the clause,
subclause, schedule or paragraph of this Agreement so numbered. 

3 

PART II - THE ENGAGEMENT 

2              

THE ENGAGEMENT 

2.1           
In consideration of the service fee more particularly set out in Clause 5, the
Executive agrees to serve the Company as a director of the Company with the
title of "Deputy Chairman of the Group" reporting at all times to the Chairman
and the Board and shall render his services subject to and on the terms and
conditions herein set out. The Company shall use its best endeavours to procure
that the Executive is appointed as a director of each of the other main
operating companies in the Group. 

2.2          
The Executive undertakes to devote substantially the whole of his time and
attention and abilities during normal business hours and at such other times as
the Company or his duties may reasonably require to the business and affairs of
the Company and the Group. 

3              

TERM OF ENGAGEMENT 

3.1          
The Executive shall provide his services and discharge his duties as a director
of the Company and shall faithfully and diligently perform such duties and
exercise such powers may from time to time be assigned or vested in him and
shall not do anything that is harmful to the Company or any other company in the
Group. For the avoidance of doubt the terms of this Agreement are included
without prejudice to the Executive's implied duty of fidelity. 

3.2          
Subject to Clause 17 and termination by the Company for cause prior to the
expiry of this Agreement, the engagement shall be for an initial period of three
years commencing on 1st June 1996 and expiring on 31st May 1999. 

3.3           
Unless the Company and the Executive shall otherwise agree in writing, the
engagement shall continue after the expiry date specified in Clause 3.2 until
terminated by either party giving to the other not less than 6 months' notice in
writing which can commence on any day of the month or as provided below. 

4               DUTIES 

4.1           
During the engagement under this Agreement, the Executive shall undertake the
following within the Service Territory:- 

4 

4.1.1        
perform the duties and exercise the powers which the Board or the Chairman may
at any time and from time to time properly assign to him in his capacity as a
director or in connection with the business and affairs of the Company or of any
other member of the Group (including performing duties as requested at any time
and from time to time by the Board or the Chairman, serving on the board of such
other members of the Group or on any other executive body or any committee of
such a company); and 

4.1.2        
do all in his power to promote develop and extend the business of the Company
and of the companies in the Group and at all times and in all respects conform
to and comply with the proper and reasonable directions and regulations at any
time and from time to time made by the Board or the Chairman. 

4.2           
The Executive shall carry out his duties and exercise his powers, and the Board
or the Chairman may at any time and from time to time require the Executive to
cease performing or exercising any one or more of the duties or powers for the
time being assigned to him. 

4.3           
The Executive shall work at such place as the Board or the Chairman may at any
time and from time to time reasonably require for the proper performance and
exercise of his duties and powers, and he may be required to travel on the
business and affairs of the Company or of the Group anywhere in the world save
and except where there is hazard to life because of the outbreak of war or armed
conflict or for health reasons. 

4.4           
If the Company requires the Executive to work permanently at a place which
necessitates a move from his present address the Company shall reimburse the
Executive for all removal expenses directly and reasonably incurred as a result
of the Company's requirement. 

5               REMUNERATION AND STARTING SERVICE FEE 

5.1           
During the engagement under this Agreement, the Company agrees and undertakes to
pay the Executive for the services provided by him a service fee of
HK$4,500,000.00 per annum (or such higher rate as the Company may at its
absolute discretion from time to time decide or award) by twelve (12) equal
monthly instalments of HK$375,000.00 payable in arrears on the 28th day of every
calender month. The Company shall in its absolute discretion review and may in
its absolute discretion increase the service fee annually in May of each year

5

 

                 
effective from the 1st day of June immediately following. 

5.2           
In addition to the service fee, the Company shall during each of the first three
years of service pay the Executive a bonus of HK$4,500,000.00 on 31st May in
each of those years, the first payment being made on 31st May 1997. Thereafter
the Company may in its absolute discretion on the 31st day of March in each
subsequent year during the continuance of this Agreement pay an annual bonus to
the Executive in such amount, if any, as the Company may decide upon. 

5.3           
All directors fees or remunerations of whatsoever nature received by the
Executive from any company in the Group, other than from the Company pursuant to
the terms of this Agreement shall be paid back to the Company. 

6               

COMPANY CAR 

6.1           
The Company will supply the Executive with a car appropriate to the status of
the Executive as a director of the Company. The Company will pay the running
costs incurred and provide a driver while the Executive is on Company business
together with all insurance and maintenance costs. The car is for the exclusive
use of the Executive and under no circumstances shall he lend the car to any
other person. 

6.2           
The Executive shall at all times take good care of the car and ensure that the
provisions and conditions of any insurance policy relating to it are observed.
He shall return the car and its keys to the Company at an address to be given by
the Company immediately upon the termination of the engagement under this
Agreement howsoever arising. 

7                EXPENSES 

                
The Company shall by way of reimbursement pay or procure to be paid to the
Executive all reasonable travelling hotel and other expenses properly incurred
by the Executive in or about the performance of the Executive's duties under
this Agreement provided that the Executive, if so required by the Company,
provides reasonable evidence of the expenditure in respect of which the
Executive claims reimbursement. 

8              

PENSION SCHEME 

6 

8.1           
During the engagement under this Agreement the Executive shall be entitled to
become a member of the Agostino Provident Fund Plan, and the Company and the
Executive (if so required) shall promptly pay all contributions due thereunder.

8.2           
Full details of the Executive's participation in the Agostino Provident Fund
Plan are provided in the Plan Rules from time to time amended or revised, which
shall form part of the terms and conditions of the engagement under this
Agreement. 

9 
             

ILLNESS 

9.1
         
The Executive shall continue to be paid the service fee during his absence due
to incapacity through illness or injury as advised by a medical doctor appointed
by the Company for a total of up to 21 days in any period of twelve (12) months
commencing from 1st April in each year during the continuance of this Agreement.

9.2
         
Thereafter, if the absence of the Executive is due to incapacity through
illness, or injury caused other than in the course of rendering services under
this Agreement, the Executive shall continue to be paid the service fee only at
the discretion of the Company. 

9.3
          
If the Executive is absent, due to incapacity through illness or injury, for
more than 21 days in any period of twelve (12) months, and such illness or
injury was caused in the course of rendering services under this Agreement, the
Company shall continue to pay the Executive the service fee for a period of up
to 26 weeks. 

9.4           
If the Executive's absence shall aggregate in all 26 weeks in any period of 52
consecutive weeks the Company may terminate the engagement of tie Executive by
one month's notice in writing given on a date at any time after the end of the
26th week. In that event the Company shall pay to the Executive a sum equal to 1
month's service fee from the date of termination of the engagement. 

9.5
         
If the incapacity of the Executive shall be or appear to be occasioned by
actionable negligence of a third party in respect of which damages are or may be
recoverable the Executive shall immediately notify the Board of that fact and of
any claim, compromise, settlement or judgment made or awarded in connection with
it and the Executive shall give to the Board all particulars the Board may
reasonably require and shall if required by the Board refund to the Company that
part of any damages recovered relating to loss of earnings for the period of the

7 

incapacity as the Board may
reasonably determine provided that the amount to be refunded shall not exceed
the amount of damages or compensation recovered by the Executive less any costs
borne by the Executive in connection with the recovery of such damages or
compensation and shall not exceed the total service fee paid to the Consultant
in respect of the period of the incapacity. 

10 
          

 MEDICAL BENEFITS 

10.1         
During the engagement under this Agreement the Executive, his spouse and his
children shall be entitled to participate in the Pacific Century Group Medical
Scheme without any charge. 

10.2         
Full details of the Executive's participation in the Pacific Century Group
Medical Scheme are
published from time to time by any member of the Group, which shall form part of
the terms and conditions of the engagement under this Agreement.

11            

 HOLIDAYS

During the engagement under this
Agreement the Executive shall be entitled to up to 36 working days' leave with
pay per calender year, which shall be taken only at such time or times as
previously agreed with the Board or the Chairman. Any leave not taken by the
Executive in any calender year shall not be carried down or accumulated to the
next calender year or other calender years. 

12 
           

TIME AND ATTENTION 

12.1         
Save and except as otherwise agreed in writing by the Company, during the
engagement under this Agreement the Executive undertakes that he shall not,
without the prior written consent of the Board (which consent may be given or
withheld by the Company in its absolute discretion), be directly or indirectly
engaged, concerned or interested in any trade or business or the setting up of
any trade or business:- 

12.1.1     
 which is similar to or in competition
with the business carried on by the Company or any other company in the Group or
any part of such business; or 

12.1.2     
 which is a supplier or customer of the
Company or any other company in the Group in relation to its goods or services.

8 

12.2         
Nothing in this Clause 12 shall operate to preclude the Executive from holding
or being otherwise interested in any shares or other securities of any company
which is for the time being quoted on any recognised stock exchange so long as
the interest of the Executive in such shares or securities does not extend to
more than 1% of the total amount of such shares or securities.

13 
           

DISCLOSURE OF INFORMATION 

13.1
        The
Executive undertakes that he will, as soon as practicable and in any event
within 21 days from the date hereof, and thereafter once in every 6 months
during the engagement under this Agreement, disclose to the Company in writing
full details of all companies, wherever incorporated, in the share or loan
capital or other securities of which, and all other commercial entities or
bodies, including partnerships and whether or not incorporated in which, he
and/or his associates are interested, legally or beneficially or through any
agent, giving full particulars of the nature and extent of such interests; where
any interest so disclosed is in a company or other entity which itself has any
interest in another company or other entity, the Executive shall, to the extent
that he or his associates is aware of it, disclose the nature and extent of such
interest; and 

13.2       
  all directorships and advisory
appointments which he holds. 

13.3        
 At all times during the continuance of
this Agreement, the Executive shall promptly disclose to the Company in writing
full details of:- 

13.3.1    
 all interests of the type described in
Clause 13.1 which are acquired or disposed of by him and/or his associates after
the date hereof but so that this obligation shall not apply to interests which
have an aggregate market value of less than US$50,000, interests of the
Executive and his associates being aggregated for this purpose and interests
which are associated or connected with each other in any way also being
aggregated; where any acquired interest so disclosed is in a company or other
entity which itself has any interest in another company or other entity, the
Executive will, to the extent that he or his associates is aware of it, disclose
the nature and extent of such interest; and 

13.3.2
      all directorships
and advisory appointments which he acquires or ceases to hold after the date
hereof. 

13.4         
Save as provided for in Clause 13.5, the Executive shall, if so required at any
time by the Company, dispose (and cause his associates to dispose) of any
interest 

9 

               
disclosed or required to be disclosed as contemplated by Clauses 13.1 or 13.2.1.
The Executive shall also, if so required at any time by the Company, cease to
hold any directorship, partnership interest or advisory appointment required to
be disclosed under Clauses 13.1 or 13.3.1. 

13.5         
Without altering the duty of the Executive to make the necessary disclosure
provided above, nothing in Clause 13.4 shall operate to require the Executive to
dispose of any interest which he bona fide holds as an investment of a personal
nature provided that such interest is not in conflict with the business or
affairs of the Company or any company in the Group. 

13.6         
For the purposes of this Agreement, the Executive's associates are his spouse
and infant children (and the trustees of any trust for his or any of their
benefit, including any discretionary trust of which he or any of them is a
potential discretionary object pursuant to a trust instrument or a letter of
wishes). 

13.7         
The Executive shall not be deemed to have committed a breach of this Agreement
on account of any holding of a beneficial interest in any company or the holding
of any personal investment on the part of the Executive if the Executive has
made disclosure of the full nature and extent of the interest to the Company as
required under this Agreement and has obtained from the Company its consent in
writing as to the continued holding of such interest. 

13.8         
The Executive shall promptly disclose to the Chairman or the Board any
information which comes into his possession which affects adversely or may
affect adversely the Company or any company in the Group or the business of the
Company or any company in the Group. Such information shall include, but shall
not be limited to the plans of any employee (whether alone or in concert with
other employees) to join a competitor or to establish a business in competition
with the Company or any company in the Group, the misuse of any employee of any
Confidential Information or any steps taken by any employee to implement such
plans. 

14 
           

INVENTIONS 

14.1         
The parties foresee that the Executive may either solely or jointly with others
make discover or create intellectual property or develop business concepts or
ideas in the course of the Executive's duties under this Agreement and the
parties agree that in this respect the Executive has a special obligation to
further the interests of the Group. 

10 

14.2      
  If at any time during the engagement
the Executive makes or discovers or participates in the making or discovery of
any intellectual property or business concepts or ideas contained in any medium
whatsoever provided by the Company or belonging to the Executive personally,
relating to or capable of being used in the business for the time being carried
on by the Group, full details of the intellectual property, business concepts or
ideas shall immediately be communicated by him to the Company and such
intellectual property, business concepts or ideas shall become the absolute
property of the Company. At the request and expense of the Company the Executive
shall give and supply all such documents information data reports estimates
drawings and assistance as may be requisite to enable the Company to exploit
such intellectual property, business concepts and ideas to the best advantage.
The Executive shall execute all documents and do all things which may be
necessary or desirable for obtaining patents or other protection for the
intellectual property, business concepts or ideas in such parts of the world as
may be specified by the Company and for vesting the same in the Company or as it
may direct. 

14.3       
 The Executive irrevocably appoints the
Company to be his attorney in his name and on his behalf and as his acts and
deeds or otherwise to sign, seal and deliver or otherwise to execute or do any
such instrument or thing and generally to use his name for the purpose of giving
to the Company the full benefit of the provisions of this clause, and a
certificate in writing signed by any director or the secretary of the Company in favour of any third party that any instrument or act falls within the authority
conferred by this clause shall be conclusive evidence that such is the case. 

14.4         
Rights and obligations under this Clause shall continue in force after
termination of this Agreement in respect of intellectual property business
concepts and ideas made during the engagement under this Agreement and shall be
binding upon the Executive's representatives. 

15 
           

DISCLOSURE OF BUSINESS OPPORTUNITY  

15.1       
 The Executive shall promptly disclose
to the Board or the Chairman all information or material which at any time shall
have come to his knowledge or into his possession which may be used by the
Company or any other member of the Group for the carrying on or development of
its or their existing businesses or the development of a new business. 

15.2
        
Unless and until the Board or the Chairman states in writing that the Company

11

or any company in the Group is not
interested in applying or developing the relevant information or material, the
Executive shall not under any circumstances divulge to any person or company
whatsoever such information or material or otherwise make use of any of such
information or material. 

16 
           

CONFIDENTIALITY 

16.1        
 The Executive is aware that in the
course of the engagement under this Agreement he will have access to and be
entrusted with Confidential Information, business concepts and ideas and
information in respect of the business and financing of the Company (and
likewise in relation to the Group) and its dealings transactions and affairs all
of which information is or may be confidential. 

16.2
       The Executive
undertakes to the Company that he shall not (except in the proper performance of
his duties under this Agreement) at any time during or after the period of this
engagement under this Agreement (without limitation in time) divulge or
communicate to any person whatsoever or otherwise make use of (and shall use his
best endeavours to prevent the publication or disclosure of) any of the
Company's Confidential Information, or that of any of the companies in the
Group: This obligation shall continue to apply after the termination of the
Executive's employment without limit in point of time but shall cease to apply
to information ordered to be disclosed by a court of competent jurisdiction or
otherwise be required to be disclosed by law. 

16.3
        All
notes and memoranda of any Confidential Information of any company in the Group
which shall be acquired received or made by the Executive during the course of
this engagement shall be the property of the respective company in the Group and
shall be surrendered by the Executive to someone duly authorised in that behalf
at the termination of this engagement or at the request of the Board or the
Chairman at any time during the course of this engagement. 

17 
           

SUMMARY DETERMINATION OF ENGAGEMENT 

17.1         
The engagement of the Executive may be terminated by the Company on summary
notice and without compensation:- 

17.1.1      
 if he is guilty of any gross default
or misconduct in connection with or affecting the business or affairs of the
Company or any member of the Group; 

17.1.2
       in the event
of any serious or repeated breach or non-observance 

12 

                 
by him of any of the material stipulations contained in this Agreement;

17.1.3
       if he becomes
bankrupt or makes any composition or enters into any deed of arrangement with
his creditors; 

17.1.4
      if he is convicted
in any court of competent jurisdiction wherever in the world for any criminal
offence (other than an offence under road traffic legislation); 

17.1.5    
  if he shall become of unsound mind or
become a patient under the Mental Health Ordinance (Chapter 136 of the Laws of
Hong Kong); 

17.1.6    
 if a judgment of a court of competent
jurisdiction shall be given or entered against him in any civil proceedings
instituted by a party other than the Company or any company in the Group, in
which there is against him any proven allegation of fraud or dishonesty; 

17.1.7        if
he is convicted of an offence or censured under any present or
future statutory enactment or regulations relating
to insider dealings, or the creation of a
false market for securities; 

17.1.8      
 if he unreasonably refuses to comply
with any lawful order or direction of the Board; 

17.1.9    
 being appointed as a director of the
Company or any company in the Group he acts in a manner that constitutes a
breach of fiduciary duty; 

17.1.10     
 if he conducts himself in a manner
that constitutes a breach of his duty of fidelity to the Company; 

17.1.11    
 if he acts in such a manner as to
cause the Company or any member of the Group to come into disrepute; or 

17.1.12
     if he acts otherwise in a
manner which would entitle the Company to terminate the engagement with summary
notice at common law. 

17.2         
In the event of the Executive's engagement being determined by the Company's
service of a 6 months notice under Clause 3.3, the Company shall continue to pay
him all service fee up to the termination of the engagement of the Executive at
the expiry of 6 months. The Company shall be under no obligation to vest in or
assign to the Executive any powers or duties or to provide any work for the

13 

                
Executive. The service of a notice to terminate is without prejudice to the
right of the Company to exclude the Executive from any premises of the Company
or any company within the Group. 

17.3
         On
the termination of this Agreement howsoever arising, the Executive shall at any
time and from time to time thereafter at the request of the Company forthwith
deliver to the Company all books, documents, papers, materials, and other
property of the Company or of any member of the Group which may then be in his
possession or under his power, custody or control. 

17.4       
 On the termination of this Agreement
howsoever arising, the Executive shall resign immediately from all directorships
or offices appointed by any company within the Group. 

17.5        
A waiver of previous breaches of any provision of this Agreement shall not
amount to a waiver of future breaches and delay on the part of the Company does
not amount to a waiver. 

17.6        
The Company shall be entitled in its absolute discretion to suspend the
Executive from his duties hereunder while any investigation into his conduct is
pending. 

18

           

RECONSTRUCTION OR AMALGAMATION 

                
If the engagement of the Executive under this Agreement is terminated by reason
of the liquidation of the Company for the purpose of reconstruction or
amalgamation and he is offered engagement with any concern or undertaking
resulting from the reconstruction or amalgamation on terms and conditions not
less favourable than the terms of this Agreement, then he shall take up such
engagement and shall have no claim against the Company in respect of the
termination of this engagement under this Agreement. 

19            

 NON-SOLICITATION 

                
The Executive covenants with the Company that he will not for the period of 2
years after ceasing to be engaged under this Agreement without the prior written
consent of the Board in connection with the carrying on of any business similar
to or in competition with the business of any company in the Group on his own
behalf or on behalf of any person firm or company directly or indirectly:-

14

 

19.1       
 seek to procure orders from or accept
or do business with any person firm or company who has at any time during the 2
years immediately preceding such cesser done business with the Group; or 

19.2
        
endeavour to entice away from any company in the Group employ or otherwise
engage any person  who has at any time during the 2 years immediately
preceding such cesser been employed or engaged by any company in the Group, 

                
provided that nothing in this clause shall operate to prohibit the seeking or
procuring of orders or the doing of business not relating or similar to the
business or businesses of the Group described above. 

20              NON-COMPETITION 

20.1         
Subject to clause 21.2 below, the Executive covenants and undertakes with the
Company that he will not within the Restricted Territory for the period of one
year after the determination of the engagement under this Agreement, without the
prior written consent of the Board, either alone or jointly with or as manager
agent consultant or employee of any person firm or company, directly or
indirectly carry on or be engaged in any activity or business which shall be in
competition with the business of any member of the Group: Provided that if any
such restriction shall be adjudged to be void as going beyond what is reasonable
in all the circumstances for the protection of the interests of the Group, but
which would be valid if the period of the restriction be reduced to 6 months,
the said restriction shall apply with such modifications as may be necessary to
make it valid and effective. 

21

          

 BUSINESS OF THE GROUP 

21.1        
 For the purposes of Clauses 19 and 20,
the business of the Group shall be as defined in Schedule Two. The Executive
acknowledges that the items now included in Schedule Two are existing business
of the Group, and agrees that the terms of Schedule Two shall be as agreed by
the Company and the Executive in writing from time to time. In agreeing to this
means of defining the Business of the Group for the purposes of this Agreement,
the Executive acknowledges and agrees that the business of the Group is in its
developmental stage and has yet to develop into businesses which are capable of
being presently defined. 

21.2        
 For the avoidance of doubt, the
restraints imposed on the Executive shall not extend to the Executive's
interests in passive investments in 

21.2.1      
companies that are listed or quoted on any major stock exchange (which

15 

               
shall be defined as any one of the London, New York, Tokyo, Paris, Frankfurt,
Milan Hong Kong or Australian stock exchanges or any other stock exchanges
agreed between the parties) provided always that firstly the interest or holding
of the Executive in any such company shall not for the time being exceed 1% of
the issued share capital thereof and secondly, the Executive shall not have any
position as a manager, executive, director or otherwise be involved with the
operation of such company ; or 

21.2.2      
real property. 

22

           

EXECUTIVE'S PARTICIPATION IN INVESTMENTS 

               
The parties agree that the Executive may at his option, and on terms to be
agreed with the Chairman or such other person or company as he shall designate,
participate in the future investments of the Company or those of any company in
the Group by contributing his own capital, whether by way of equity or by loan.
Each such participation shall in any event not exceed 25% of that invested by
way of equity or by loan by the Company or any company in the Group. In this
connection, neither the Company nor any company in the Group make any
representation or warranty to the Executive as to the likelihood or prospect of
any future businesses or investments. 

PART III -
MISCELLANEOUS PROVISIONS 

23

           

WARRANTY AND UNDERTAKING AS TO LITIGATION 

23.1         
Save as disclosed in writing, the Executive hereby represents, warrants and
undertakes to the Company that:- 

23.1.1
       he is not
engaged, either as claimant or plaintiff, or defendant or respondent, in any
litigation, arbitration, disciplinary or administrative proceedings of any
nature in Hong Kong or anywhere in the world; 

23.1.2     
 no order has been made, petition
presented or notice served for the bankruptcy of the Executive at any time; 

23.1.3
      the Executive is not
subject to any distress for rent, execution or other process for the enforcement
of any judgment or award in any court of law; and 

23.1.4
      the Executive is not
in possession of any unsatisfied written demand threatening any litigation,
arbitration or other legal proceedings or events. 

16 

23.2         
The Executive further warrants and undertakes that:-

23.2.1
      upon becoming aware
of the actual, impending or threatened occurrence of any event after the date of
this agreement that can reasonably be expected to cause or constitute one of the
matters set out in Clause 23.1 above (including, without limitation, the receipt
of a letter of demand or notice from any person), he will forthwith give written
notice to the Company, and, if so requested by the Company, provide full
disclosure of such matters to the Company and/or use his best endeavours at his
own cost promptly to prevent or remedy the same; and 

23.2.2      
 he will not institute any litigation,
arbitration, disciplinary or administrative proceedings against any person, as
claimant or plaintiff, either alone or jointly with any other person, without
the prior written consent of the Company. 

24            

 NOTICES 

                
Notices may be given by either party by letter addressed to the other party at,
in the case of the Company, its registered office for the time being and, in the
case of the Executive, his last known address. Any notice given by letter shall
be deemed to have been given at the time at which the letter would be delivered
in the ordinary course of post or if delivered by hand upon delivery, and in
proving service by post it shall be sufficient to prove that the notice was
properly addressed and posted. 

25

           

APPLICABLE LAW 

25.1
        
This Agreement is governed by and shall be construed in accordance with the laws
of Hong Kong. 

25.2
        
The parties to this Agreement submit to the non-exclusive jurisdiction of the
courts of Hong Kong. 

26

           

SEVERABILITY OF UNENFORCEABLE PROVISIONS 

                
The parties consider the restrictions contained in this Agreement to be
reasonable in all the circumstances. If however, any restriction shall fail for
any technical reason unforeseen, it is now agreed and declared that if any such
restrictions shall be adjudged to be void as going beyond what is reasonable in
all the circumstances for the protection of the interests of the Company, but
which would 

17 

be valid if part of the wording thereof
were deleted or the period of the restriction thereof were reduced, the said
restriction shall apply with such modifications as may be necessary to make it
valid and effective. 

AS WITNESS the hands of the parties or of their duly authorised
representatives the day and year first above written. 

	SIGNED by	)	
    
	for and on behalf of
    PACIFIC	)
	CENTURY ASSET
    MANAGEMENT	)
	(HK) LIMITED in the
    presence of:-	)
	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	
    
	SIGNED by YUEN TIN FAN
    FRANCIS	)
	in the presence of:-	)

18 

SCHEDULE ONE  

The following companies shall constitute the Group for the time being

the Company 

Pacific Century Group Limited

KL II Enterprises Inc. 

Pacific Century Finance (BVI) Limited 

Pacific Century Finance (Cayman Islands) Limited

Pacific Century Securities Limited 

Pacific Century Telecommunications Limited 

Pacific Century Group Holdings Limited 

Pacific Century GC Holdings Inc. 

and the respective holding companies, subsidiaries and Associates of each of
the companies. 

 

19 

SCHEDULE TWO  

The following is the Business of the Group for the time being: -

1              
Infrastructure, land and property development. 

2 
             
The investment in and the provision of advisory, management and operational
services in insurance, reinsurance and insurance related business activities.

3             
 The provision of services in
securities dealing and investment banking. 

4 
             
The purchase of interests in private on public companies with a view to
improving their financial performance and/or to seek a listing or sale in part
or in whole with a view to financial gain. 

 

20PCCW Limited: Exhibit 4(oo) - Prepared by TNT Filings Inc.

EXHIBIT 4(oo)

PRIVATE & CONFIDENTIAL 

17 August 2005 

Dr Fan Xingcha 

Present 

Dear Dr Fan 

We are pleased to offer you the position of Executive
Director, reporting to me as the Deputy Chairman and Group Managing Director or
such other person as the Company may designate from time to time ("Reporting
Person"). Your responsibilities include those set out in the Schedule. Your
appointment is subject to the approval of Nomination Committee and Remuneration
Committee, and a work permit being granted. You will be employed by PCCW
Services Limited ("the Company") with effect from 1 August 2005 under the
following terms and conditions: 

1.     
Salary 

A basic salary of HK$400,000 per month payable in
arrears. Salaries will be paid on the 28th of each month or earlier
if the 28th falls on a public holiday. 

2.     
Housing Benefit 

In order to cover your housing needs
as a senior executive while you are required to be based outside PRC, you will
be provided with a housing benefit to cover your actual accommodation expenses
in Hong Kong, which include the monthly rent, management fee and rates. All
other utilities and household expenses will be on your own account. Your housing
benefit of up to a maximum of HK$120,000 per month shall be reimbursed through
monthly payroll upon the commencement of your tenancy in Hong Kong. 

3.     
Education Assistance 

While you are required to be based
outside the PRC, you will be reimbursed up to a maximum of HK$468,000 per year,
which covers the costs of entry, tuition and capital fees of schooling in Hong
Kong for your two accompanied children, up to and including the age of 18. 

4.     
Sign-on Bonus 

You will receive a sign-on bonus of HK$1,250,000
through your first monthly payroll in the Company. 

5.     
Discretionary Incentive Bonus 

You will be eligible for
discretionary incentive bonus at the sole discretion of the Company. Any amount
payable will be determined by the business performance of PCCW as well as your
own level of performance as assessed through the Company's performance review
process to be conducted at the end of each year. Any discretionary incentive
bonus payable in respect of a financial year ended 31 December will be made in
the ensuing April/May. 

	.../2 
	PCCW Limited        
         
    www.pccw.com.
	PO Box 9896 GPO Hong Kong        
    Tel +852 2888 2888         Fax +852
    2877 8877

Page 2

17 August 2005

Dr. Fan Xingcha

 

6.     Directors' Fees 

During the term of your employment
with the Company, you may be asked from time to time to act as a director in a
company or companies within the PCCW Group (where "PCCW Group" shall mean PCCW
Limited and its subsidiaries (as defined under the Companies Ordinance)) or any
company associated with the Company. In the event that you do act as a director,
if the Company so requests you should tender your resignation as director of
such a company forthwith in the form and which is provided by the Company which
may require that you confirm that you do not have any claims against that
company. 

As it is the Group policy that an
employee shall not receive any additional remuneration as a result of acting as
a director of any company in the PCCW Group or any company associated with the
Company, you agree and understand that any director's fees payable to you shall
be considered part of your remuneration and, in such case, your remuneration for
the month in which you are in receipt of such director's fees (and if applicable
the following months, to the extent necessary to achieve an offset of the
aggregate amount of such fees) shall be reduced by a corresponding amount. This
arrangement, however, will not in any way affect your fringe benefits, including
the employer contribution to the Provident Fund Scheme. Your present
remuneration as non-executive director of PCCW shall terminate. 

7.     PCCW Share Option Scheme 

Subject to the approval of the PCCW
Remuneration Committee, options in 7,000,000 ordinary shares ("Share Options")
in PCCW will be granted to you within six months from the date of commencement
of employment with the Company or at a time the Company sees most fit for the
grant in accordance with the rules of the share option scheme of PCCW ("Rules")
and the Rules Governing the Listing of Securities on the Stock Exchange of Hong
Kong Limited. 

Share Options will be granted at an
exercise price equivalent to the highest of (i) the closing price of PCCW shares
("Shares") as stated in the daily quotation sheets of The Stock Exchange of Hong
Kong Limited (the "Stock Exchange") on the date of grant or (ii) the average
closing price of the Shares as stated in the daily quotation sheets of the Stock
Exchange for the 5 days on which the Stock Exchange is open for business last
preceding the date of grant or (iii) the nominal value of a Share on the date of
grant. Provided you remain in our employment and no notice of termination is
given or received, you are entitled to vest one-third of the total PCCW Stock
Options after each of the first, second and third anniversaries of the option
grant date. 

Further details of the share option grant will be
covered in the option grant letter to be issued separately at a later date which
you acknowledge shall be binding on you. 

8.     Relocation Expenses 

The Company will cover the cost of
one-way business class air tickets for moving you, your spouse and two children
from Shanghai, PRC to Hong Kong. The Company will also reimburse the cost of
packaging and transporting a reasonable amount of your baggage and household
effects from Shanghai, PRC to Hong Kong. All expenses claims must be supported
by original receipts. 

	.../3 

Page 3

17 August 2005

Dr. Fan Xingcha

 

9.     Hours of Work 

Your normal working hours will be
from 9:00 am to 6:00 pm, Monday to Friday, with one hour lunch break. You are
required to dedicate all your working hours to work relating to the business of
the Company and of the PCCW Group. Your employment will be full time with PCCW
to the exclusion of all other parties. 

It may be necessary to work additional hours,
including Saturdays, Sundays and Public Holidays without entitlement to
additional remuneration. 

10.    Holiday Entitlement - Annual Leave 

You are entitled to 22 working days'
leave with pay each year. A working day for this purpose excludes Saturdays,
Sundays and Public Holidays. You can carry forward up to half of your annual
leave entitlement to the end of June of the following year and the balance must
be taken before the end of the relevant calendar year. Save where the Company
agrees in writing and in accordance with the Employment Ordinance, there will be
no payment in lieu of any unused annual leave. 

If you join the Company part-way through a calendar
year, your annual leave entitlement will be calculated on a pro-rata basis. 

If your leave taken is more than you
have accrued at the date of leaving, the Company will deduct the excess holiday
pay from any salary due on termination. Pay for this purpose means basic salary
and housing benefit, excluding commission or bonus of whatever kinds. 

If you spend a certain amount of your
leave time visiting company connections in places where you spend your leave,
time spent on such calls cannot be 'deducted' from the duration of leave. This
is considered a normal practice with the Company. 

11.    PCCW Medical Scheme 

You and your spouse and children are
provided with hospitalization assistance benefits and a clinical expenses
scheme, up to the limits specified in the attached medical leaflet. You are
eligible for Class 8 benefits. 

Should you cease to be employed by the Company, you
must return the medical card(s) to the Human Resources Department on or before
your last day of service. 

12.    PCCW Provident Fund Scheme 

You will have a one-off irrevocable
choice to join either the PCCW Provident Fund Scheme (Scheme 8) - Group F with
the Group contributing an equivalent of 12% of your monthly basic salary or the
Fidelity Retirement Master Trust which is the Mandatory Provident Fund Scheme in
which the Company participates. Full details of your benefits under the Schemes
are provided in the Scheme Rules which form part of your terms and conditions of
employment. In all cases, any interpretation or clarification of the rules
should be made in accordance with the Provident Fund or Mandatory Provident Fund
Policy. 

	.../4 

Page 4

17 August 2005

Dr. Fan Xingcha

 

13.    Termination of Employment 

You will be engaged for a period of
two years. Notwithstanding this term, either party may terminate your employment
by giving to the other three months' written notice or payment of three months'
basic salary in lieu thereof. No compensation will be payable in respect of the
remaining unexpired term of your employment. This period of notice can commence
from any day. 

If by reason of sickness or
disability you are unable to perform your duty or in the opinion of a qualified
doctor you are unlikely to be able to perform your duty in an effective manner
and to the detriment of the interest of the Company, the Company shall be
entitled to terminate this agreement by giving three months' notice or payment
of three months' basic salary in lieu of notice. 

Should you (i) be guilty of fraud,
dishonesty or serious misconduct or (ii) commit a serious or persistent breach
or neglect of your duties hereunder or (iii) be in breach of any representation
by you or any undertaking made by you hereunder or otherwise in relation to your
employment or benefits arising out of your employment or (iv) make any
misleading statement in relation to your previous employment or (v) refuse or
neglect to comply with any lawful order given to you by the Company or (vi) be
guilty of misconduct inconsistent with the due and faithful discharge of your
duties or (vii) commit any act that may cause undue embarrassment or moral or
social condemnation to the Company, the Company shall be entitled to terminate
this Agreement forthwith without notice or payment in lieu thereof (including
without compensation in respect of the remaining unexpired term of your
employment). The Company shall also be entitled to so terminate this Agreement
on any other ground on which an employer would be entitled to terminate an
employee's contract without notice at common law (including without compensation
in respect of the remaining unexpired term of your employment). 

If required by the Company, you will
agree not to carry out any work or attend the offices or contact any clients of
the Company or of any of its associated companies during your notice period. 

Upon termination of employment, you
will immediately transfer and deliver to the Company all papers, documents,
notes, memoranda, records and writings belonging to the Company or its
subsidiaries, holding or associated companies which you may have in your
possession or control by reason of your position in the Company in any way
relating to the business of the Company or its subsidiaries, holding or
associated companies or to the business of the clients of the Company and its
subsidiaries, holding or associated companies together with all extracts or
copies thereof. 

If notice of termination of your
employment is given by you or the Company, you will resign immediately from all
directorships and any other offices appointed by or held at the request of the
Company or any of its subsidiaries or affiliates. 

	.../5 

Page 5

17 August 2005

Dr. Fan Xingcha

 

14.    Expenses 

The Company will reimburse authorised
expenses properly incurred on Company business upon production of receipts or
supporting payment vouchers. A guiding principle in settling expenses is that
there should neither be loss nor benefit financially as a result of any
reasonable expense incurred on Company business. 

Claims for expenses must be approved by the Company.
No employee is entitled to authorise his own expenses. 

15.    Taxation 

You will be personally responsible
for all income taxes arising in Hong Kong and in PRC. You are expected to ensure
that you comply with the tax rules in Hong Kong and in PRC and that your tax
obligations are discharged on a timely basis. 

16.    Employment 

You will not (without the prior
written consent of the Company or such of its subsidiaries, holding or
associated companies) during your employment, directly or indirectly be engaged
in, or provide services to any other person, company, business entity whatsoever
(whether as an employee, officer, director, agent, shareholder, if such
shareholding is more than 5% of a company, partner, consultant or otherwise) it
being the intention of the Company or such of its subsidiaries, holding or
associated companies that you will devote your time and attention to the service
of the Company or such of its subsidiaries, holding or associated companies. 

As the Company or such of its
subsidiaries, holding or associated companies may have interests and business
dealings overseas, in the performance of your duties of employment with the
Company or such of its subsidiaries, holding or associated companies, the
Company shall be entitled to require you from time to time to work overseas. 

17.    Representation of Employee 

You represent and warrant that you
are not bound by or subject to any court order, agreement, arrangement,
undertaking or obligation at law (including, but without limitation, any
non-competition or non-solicitation undertakings) which may in any way restrict
or prohibit you (with or without the payment of compensation) from entering into
this contract of employment or from performing your duties in whole or in part
and providing services under this contract of employment on the same terms and
conditions. 

	.../6 

Page 6

17 August 2005

Dr. Fan Xingcha

 

18.    Disclosure of Information and Conflict of Interest

Within seven days from the
commencement of your employment, and thereafter once in every six months during
the term of your employment, you are required to disclose to the Company in
writing full details of any interest you have (whether legally or beneficially
or through any agent and including any interest in any share or loan capital or
other securities) in any company or other commercial entity or body corporate or
unincorporate ("Interest"). For the purposes of disclosure you shall be taken to
be interested in and required to disclose any Interest of your spouse, children
under 21 years of age or any corporation which acts, or the directors of which
are accustomed to act, in accordance with your directions or instructions or in
respect of which you are entitled to exercise or control the exercise of
one-quarter or more of the voting powers at general meetings of that
corporation. Whether any Interest so disclosed is in a company or other
commercial entity or body corporate or unincorporate, you shall disclose, so far
as you are aware having made all reasonable enquiries, all Interests of such
other company or other commercial entity or body corporate or unincorporate. 

If required at any time by the
Company, you shall dispose of, or shall procure your spouse or children under 21
years of age as the case may be to dispose of, any Interest disclosed or
required to be disclosed to the Company. In addition, without altering your duty
to make the necessary disclosure, you shall be required to dispose of any
Interest which you bona fide hold as an investment of a personal nature if such
Interest is in conflict with the business or affairs of the Company or it
subsidiaries, holding or associated companies or any company that forms part of
the PCCW Group. 

Furthermore, you shall promptly
disclose to the Company all information or material which at any time shall have
come to your knowledge or into your possession which may be used by the Company
or its subsidiaries, holding or associated companies or any company that forms
part of the PCCW Group for the carrying on or development of its or their
existing businesses or the development of a new business. 

Without prejudice to any other
provisions of this letter, you agree to declare any of your business in conflict
with the business or activities of the Company or such of its subsidiaries,
holding or associated companies, at the date hereof or in which you may
subsequently become involved in reasonable detail to the Company or such of its
subsidiaries, holding or associated companies. 

19.    Severability 

The various provisions and
sub-provisions of this letter are severable and if any provision or
sub-provision or identifiable part thereof is held to be invalid or
unenforceable by any court of competent jurisdiction then such invalidity or
unenforceability will not affect the validity or enforceability of the remaining
provisions or sub-provisions or identifiable parts thereof in this letter. 

20.    Governing Law 

This contract shall be governed in accordance with
the laws of the Hong Kong Special Administrative Region of the People's Republic
of China. 

	.../7 

Page 7

17 August 2005

Dr. Fan Xingcha

 

21.    Transfer of Employment 

The Company reserves its rights to
transfer your employment or second you to other related companies within the
PCCW Group (as defined in the attached Confidentiality/Intellectual Property
Undertaking) when it sees fit. Your remuneration package will be reviewed and
agreed at that time. 

Other important terms and conditions of your employment are contained in the
following documents which are attached to this letter: 

a)     Confidentiality/Intellectual Property Undertaking;

b)     Handbook for Professional/Managerial Staff and
above (Broadband 2 and above) and; 

c)     Corporate Responsibility Policy. 

Additional terms and conditions will be contained in notices
and circulars issued by the Company from time to time. The Company reserves the
right to modify, alter or amend the terms and conditions of your employment and
the related human resources policies as circumstances may require. 

This letter and the documents mentioned above constitute the
written terms and conditions governing your contract of employment with the
Company. Please, therefore, signify your acceptance of the terms contained
within this letter by signing and returning to me the duplicate contract and the
Confidentiality / Intellectual Property Undertaking. 

We wish you every success with us. 

Yours sincerely 

Jack So 

Deputy Chairman and Group Managing Director 

	.../8 

Page 8

17 August 2005

Dr. Fan Xingcha

 

I accept appointment on the terms and conditions stated in this letter. I now
acknowledge receipt of the items below and agree to the terms contained in the
items below: 

a)     Confidentiality/Intellectual Property Undertaking;

b)     Handbook for Professional/Managerial Staff and
above (Broadband 2 and above) and; 

c)     Corporate Responsibility Policy.

 

 

 

Schedule 

The major responsibilities of Dr Fan will include but not be limited to the
following:

1.
    To oversee
the establishment of joint ventures and other cooperation opportunities between
PCCW and CNC; 

2.
    To oversee
overall investor relations issues pertaining to relationships between PCCW and
CNC, including but not limited to coordinating and maintaining good relationship
between PCCW and CNC, coordinating the negotiation and establishment of joint
ventures and other matters as stipulated in the investment agreement,
coordinating and maintaining good relationship between the respective employees
of PCCW and CNC who will be involved in the joint ventures and other cooperation
opportunities between PCCW and CNC, ensuring the relationship between and the
opportunities presented by PCCW / CNC will be positively perceived by analysts
and investors; 

3.
    To advise
and assist the PCCW Group on all matters as may be designated by the Company or
the Reporting Person from time to time; 

4.    
To carry out other duties authorised by the Company or the Reporting Person from
time to time.

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