Equipment Maintenance and Related Services. In September 2000, Beijing Mobile, Shanghai Mobile and Liaoning Mobile entered into agreements with certain subsidiaries of CMCC under which such subsidiaries provide equipment maintenance and related services to such Operating Subsidiaries. Such agreements are for terms of between 6 months and 15 months, each such term being automatically renewed on an annual basis unless either party (in the case of Beijing Mobile) or Shanghai Mobile or Liaoning Mobile (in the case of Shanghai Mobile and Liaoning Mobile, respectively) notifies the other of its intention to terminate in writing at least three months prior to the expiration of the term. Beijing Mobile had also previously entered into another agreement with a subsidiary of CMCC for the provision of certain equipment maintenance and related services in respect of the maintenance of base stations. The charges payable for services rendered under such agreements are determined according to standards laid down by the relevant government departments and/or by reference to market rates.
Equipment Maintenance and Related Services. In September 2000, Beijing Mobile, Shanghai Mobile and Liaoning Mobile entered into agreements with certain subsidiaries of CMCC under which such subsidiaries provide equipment maintenance and related services to such Target Companies. Such agreements are for terms of between six months and 15 months, each such term being automatically renewed on an annual basis unless either party (in the case of Beijing Mobile) or Shanghai Mobile or Liaoning Mobile (in the case of Shanghai Mobile and Liaoning Mobile, respectively) notifies the other of its intention to terminate in writing at least three months prior to the expiration of the term. Beijing Mobile had previously also entered into another agreement with an entity which is now a subsidiary of CMCC for the provision of certain equipment maintenance services which will continue to be performed according to its terms after the Acquisition. The charges payable for services rendered under such agreements are determined according to standards laid down by the relevant governmental departments and/or by reference to market rates. The aggregate charges payable for equipment maintenance by Beijing Mobile, Shanghai Mobile, Liaoning Mobile and Shandong Mobile in 1999 was RMB2,695,000 (equivalent to HK$2,537,000). The estimated aggregate charges payable for equipment maintenance services by Beijing Mobile, Shanghai Mobile, Liaoning Mobile and Shandong Mobile to such subsidiaries of CMCC in 2000 is RMB26,092,000 (equivalent to HK$24,559,000). This includes service charges of RMB2,695,000 (equivalent to approximately HK$2,537,000) and RMB9,800,000 (equivalent to approximately HK$9,224,000) in 1999 and 2000, respectively, relating to maintenance services obtained by Shandong Mobile, although Shandong Mobile obtains such maintenance services pursuant to an agreement for construction and related services with a subsidiary of CMCC (see the section headed "Construction and Related Services" above).
Equipment Maintenance and Related Services. Beijing Mobile, Shanghai Mobile and Liaoning Mobile have entered into agreements with certain subsidiaries of CMCC in relation to the provision of equipment maintenance and related services to such Target Companies. The charges payable for services rendered under such agreements are determined based on standards laid down by the relevant governmental departments and/or by reference to market rates. The Waiver provides for an upper limit on payments by the Target Companies to subsidiaries of CMCC for equipment maintenance and related services in any financial year which shall not exceed 0.05% of the Combined Group's total turnover in that financial year.
