EXHIBIT 10.29
AGREEMENT ON TERMINATION OF CONTRACT
This agreement is made by and among the following four (4) parties on
August 30, 1999 in Beijing:
Party A: Jitong Communication Co., Ltd.
Party B: UTStarcom, Inc. (formerly known as United Telecom Inc. of
the U.S.)
Party C: UTStarcom (China) Ltd.
Party D: Softbank Corporation of Japan
WHEREAS:
1. the parties executed the "Information Service Project Contract",
the "Internet Information Service Project Service Contract" and
the "Payment Agent Contract" ("collectively, hereinafter referred
to as the "Contracts") on June 11, 1998 with an aim of jointly
constructing Internet Service Network (hereinafter referred to as
the "Project"); and
2. Party B has remitted to Party A a total of USD10,000,000 in cash
pursuant to the Contracts;
THEREFORE, in order to standardize the purpose of such Project,
the parties have reached, on the basis of friendly consultations, the
following agreement as to how to effect an overall solution to the
matters relating to the said Project:
1. Party A shall repay the total sum of USD10,000,000 mentioned
above, which is equal to RMB96,280,000 YUAN in cash (Ninety-six
Million Two Hundred Eighty Thousand YUAN).
2. Party A undertakes to repay Party B the said sum at its earliest
convenience and in good faith. The parties agree to the following
schedule of payment: on or prior to September 30, 1999, Party A
shall pay Party B RMB50,000,000 YUAN (Fifty Million), and then on
or prior to December 31, 1999, Party A shall pay Party B RMB
46,280,000 YUAN (Forty-six Million Two Hundred Eighty Thousand
YUAN.
3. The parties agree that Party A shall make its first installment of
payment to Party B, i.e. prior to September 30, 1999, Party A
shall remit a sum of RMB50,000,000 YUAN to a bank account
designated by Party B. All the contracts and agreements executed
by the parties prior to the execution of this Agreement shall be
terminated as of the date when Party A shall make
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the foregoing payment and present a valid certificate of such
payment by the bank, which include but are not limited to the
"Cooperative Agreement") executed by and between Party A and
UTStarcom, Inc. of the U.S. on September 12, 1995, the
"Contract to Jointly Construct Internet Service Network
Contract" executed by and among Party A, Party D and Party B on
October 16, 1995, the "Information Service Project Contract",
the "Internet Information Service Project Service Contract" and
the "Payment Agent Contract" executed on June 11, 1998 and the
"Framework Agreement" executed by and between Party A and Party
B on August 23, 1999. With the exception of Party A's
obligations of repayment under this Agreement, all the matters
that are related to this Project shall automatically come to an
end, and there will exist no more relationship of rights and
obligations between Party A on the one hand and Parties B, C
and D on the other.
4. If Party A fails to honor its obligations of repayment pursuant to
the schedule set forth in this Agreement, Party A shall pay an
overdue fine at an interest rate of 12% per annum.
5. If the exchange rate between US dollars and Renminbi is higher
than 1: 8:715 after December 31, 1999, the amount unpaid and the
overdue fine on the part of Party A shall be calculated in the
following formula: the total of the unpaid amount and the overdue
fine shall be divided by 8.3 and then multiply by the intermediate
price of the exchange rate between the US dollars and Renminbi
announced by the People's Bank of China on the day of Party A's
payment.
6. This Agreement shall come into force upon execution by the
parties.
7. This Agreement shall have four (4) original copies, with each
party in possession of one copy.
Jitong Communication Co., Ltd.
/s/ Signature
Legal Representative (or Authorized Representative)
Date: August 30, 1999
UTStarcom, Inc. (formerly known as United Telecom Inc. of the U.S.)
/s/ Signature
Legal Representative (or Authorized Representative)
Date: August 00, 0000
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XXXxxxxxx (Xxxxx) Ltd.
/s/ Signature
Legal Representative (or Authorized Representative)
Date: August 30, 1999
Softbank Corporation of Japan
/s/ Signature
Legal Representative (or Authorized Representative)
Date: August 30, 1999
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