EXHIBIT 10.9
PROPERTY SUB-LEASING AGREEMENT
BY AND BETWEEN
CHINA NETWORK COMMUNICATIONS GROUP CORPORATION
AND
CHINA NETCOM (GROUP) COMPANY LIMITED
PROPERTY SUB-LEASING AGREEMENT
This Agreement is made and entered into on [-], 2004 in Beijing, People's
Republic of China ( "PRC") by and among the following two parties:
China Network Communications Group Corporation (Party A)
Address: Xxxxxxxx X, Xx. 000, Xxxxxxxxxxxx Xxxxxx, Xxxxxxx Xxxxxxxx,
Xxxxxxx, Xxxxx
Legal representative: Zhang Xxxx Xxxxx
China Netcom (Group) Company Limited (Party B)
Address: Xxxxx X, Xx. 000, Xxxxxxxxxxxx Xxxxxx, Xxxxxxx Xxxxxxxx, Xxxxxxx,
Xxxxx
Legal representative: Zhang Xxxx Xxxxx
WHEREAS,
1. Party A (including subordinate subsidiaries and other branches, the same
as below), pursuant to the lease contract or agreement (hereafter referred
to as "the said lease contract") entered into with related Property Lessor
and the approval from relevant government departments, occupies the
relevant property for its business operation according to law.
2. Party A hereby is willing to sublease the properties leased by Party A and
its subordinate subsidiaries and other branches under the said lease
contract or properties occupied according to the approval of relevant
government departments to Party B (including subordinate subsidiaries or
other branches, the same as below) for use to satisfy Party B's needs (the
properties subleased to Party B accordingly are collectively called "the
said property"), and Party B shall enjoy and assume all relevant rights
and obligations under the said lease contract and those formerly undertook
by Party A relating to its effective occupancy of the property pursuant to
the approval of relevant government departments.
Pursuant to relevant provisions of The Contract Law of the PRC, as well as
related laws and regulations, and in order to define the rights and obligations
of Party A and Party B, this Agreement has been entered into by Party A and
Party B through cooperative negotiations as follows:
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ARTICLE ONE SUB-LEASING OBJECT
Party A agrees to sublease to Party B the said property occupied by Party
A, its subordinate subsidiaries and other branches; Party B agrees to rent the
said property according to the stipulations in this Agreement and the said lease
contract (or approval of relevant government departments), and enjoys and
undertakes relevant rights and obligations. The scope of the subleased property
shall be defined in the appendix to this Agreement. Both parties can renew the
scope of the property specified in the appendix to this Agreement once annually
based on the actual situation.
ARTICLE TWO SUB-LEASEING TERM
Under the condition that the lease term of the said property under the
said lease contract does not exceed the agreed period of validity in Article
Eight of this Agreement, the sublease term of the said property shall be in
accordance with the lease term agreed in the respective said lease contracts
(including renewal contract signed in accordance with law); The period of use of
the properties taken up effectively with approval from relevant government
departments shall be determined according to the period of use approved by the
government departments, except for that otherwise agreed upon between the
property's original Lessor and Party A and Party B in accordance with the law.
If the lease term of the said property under the said lease contract is shorter
than the Agreement's validity term, Party A shall make every effort to satisfy
Party B's needs by extending the lease contract with the original Lessor.
ARTICLE THREE RENTAL AND METHOD OF PAYMENT
Both Party A and Party B agree that the rentals and other fees (including
but not limited to property management fee, etc.) and the payment method for
such fees, should be determined according to the said lease contract or in
accordance with the amount and/or method of payment of Party A, its subordinate
subsidiaries and other branches approved by relevant government departments,
Party A shall not collect any additional fees.
ARTICLE FOUR THE REPRESENTATIONS AND WARRANTIES OF BOTH PARTIES
1. Party A hereby represents and warrants to Party B as follows:
1) Party A is the only legal user of the said property, who has the
legal right to use the said property according to the said lease
contract or approval of relevant government departments and to
sublease the said property to Party B;
2) Party A warrants that rentals, property management fees and other
fees paid for the lease of the said property are fixed by fair
negotiation with the Lessor, and at the same time Party A warrants
that the sublease of the said property to Party B is not aimed at
profit-making;
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3) Party A warrants that all taxes incurred by the sublease of the said
property, management fees and other fees imposed by state and local
governments on the said property shall be borne by Party A;
4) Party A warrants that any loss incurred through flaw in the
ownership or right-to-use of the said property (including but not
limited to not having obtained sublease consent from the Lessor) by
Party B shall be fully compensated by Party A.
5) Party A warrants that accounting records of Party A and its
connected parties in respect of connected transactions shall be
provided to the auditor of Party B
2. Party B represents and warrants to Party A as follows:
1) Party B shall enjoy and undertake the Lessee's rights and
obligations according to the stipulations in this Agreement and the
said lease contract (or approval of relevant government
departments);
2) The lease of the said property by Party B is for the operation of
Party B's business (such as offices, business networks, storage for
parts and network equipments, etc.), Party B warrants not to
sublease or sublend the said property to any third party.
3. It is agreed that both parties will take further actions to ensure the
realization of the principles and provisions in this Agreement. It is
further agreed that both parties will ensure that, Party B, being a
subsidiary of a company to be listed or listed, China Netcom Group (Hong
Kong) Limited, shall comply with the Listing Rules of the Hong Kong Stock
Exchange for connected transactions.
ARTICLE FIVE FORCE MAJEURE
If any unforeseeable Force Majeure incident whose occurrence and impact
cannot be prevented or avoided has affected or has led to the fail in performing
this Agreement in accordance with the agreed terms, the affected Party shall
immediately inform the other Party by written notice within fifteen (15) days
after the said incident, and provide the other Party details of the incident and
effective certification documents explaining why all or part of the related
obligations under this Agreement and the relevant appendixes can not be
performed, or need to performed in a prolonged time frame. Such certification
documents shall be issued by the notary organization located in the region where
the incident has occurred. Based on the extent of the influence of such
incidents on the performance of such affected obligations, the parties shall
negotiate to decide whether or not to terminate, postpone or partially exempt
the performance of such obligations.
ARTICLE SIX BREACH OF THE CONTRACT
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Failure in performing its appointed obligations under this Agreement or
violation of its relevantrepresentations, warranties by any party shall be
deemed to be in violation of the contract, the delinquent Party should correct
this noncompliance within five (5) days upon the other party receiving a
detailed notice of such violation. If after five (5) days, such violation of
Agreement has not been corrected, the delinquent Party should compensate the
other Party for all direct and foreseeable losses caused by such breach of
contract.
ARTICLE SEVEN GOVERNING LAWS AND DISPUTES RESOLUTION
1. The execution, power, interpretation, implementation and disputes
resolution of this Agreement are subject to the protection and
jurisdiction of the law of the People's Republic of China.
2. Both parties shall seek to settle matters of dispute arising from the
implementation of this agreement or in connection with this agreement by
cooperative negotiation. If the matters of disputes cannot be settled by
negotiation, either party has the right to resort to litigation at the
people's court which has the jurisdiction over the matter.
ARTICLE EIGHT EFFECTIVENESS OF AGREEMENT AND OTHERS
1. This Agreement shall come into effect once signed by the legal
representatives or authorized representatives of both Parties and affixed
with their official seals. This Agreement shall be effective till June 30,
2007. If Party B wishes to renew this Agreement and notifies Party A with
3 month's notice, this Agreement shall be renewed automatically for
another 3 years on the same terms. There is no limits on the number of
renewal.
2. The supplementary agreements, side agreements, and documents drawn
according to the principles of this Agreement are parts of this Agreement.
Both parties agree that any changes, revisions or amendments to this
Agreement shall come into effect by written agreements entered into by
both parties and shall become indivisible parts of this Agreement.
3. The Agreement is made in Chinese. It is made into four (4) originals. Each
Party holds two (2) copies, and each original shall have the same legal
binding effect.
IN WITNESS WHEREOF the Legal representatives or the authorized
representatives of both parties hereto have executed the Agreement as of the
date and venue first written above.
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Signature page:
China Network Communications Group Corporation ( seal)
By: ___________
Legal Representative or Authorized Representative
China Netcom (Group) Company Limited ( seal)
By: ___________
Legal Representative or Authorized Representative
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APPENDIX: LIST OF SUBLEASED PROPERTIES
NAME OF THE FULL AREA RENTALS
NO. PROPERTY USAGE ADDRESS LEASED (TOTAL) NOTE
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* The above list can be classified according to the Lessor's situation (such
as mobile, paging, postal service, industry, third party etc.);
* The note column can be filled in according to the actual conditions:
whether there is a signed Leasing Agreement or other specially agreed
terms.
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