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Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 200935. CONTINGENCIES AND COMMITMENTS (CONTINUED)(b)Other commitments (continued)The rental expenses related to XL’s commitment for the financial year ended 31 December 2009 and 2008amounted to RM3.8 million (IDR11,088.0 million) and RM3.5 million (IDR11,088.0 million).On 6 September 2008, XL entered into an office rental agreement denominated in Rupiah with PT WirataraPrima (third party) for a term of six (6) years, with a total commitment as follows:Year 1 - 3 = IDR10,049.0 million per yearYear 4 - 6 = based on a market value with a minimum increase of 10% and maximum 15% from priorrental fees.Rental expenses related to this commitment for the financial year ended 31 December 2009 and 31 December2008 are RM3.4 million (IDR10,049.0 million) and RM3.2 million (IDR10,049.0 million) respectively.(iii)XL has committed to pay annual fees within ten (10) years, as long as XL holds the 3G licence. The amountof annual payment is based on the scheme of payment set out in Regulation No. 07/PER/M.KOMINFO/2/2006of the Minister of Communication and Information. No penalty will be imposed in the event that XL returnsthe licence.(c)List of contingent liabilities as at 31 December 2009 of the Group are as follows:Ppotential exposure/claims2009 2008Description RM million RM million1 Blanket Counter Indemnity 233.7 272.0Blanket counter indemnity in favour of a financial institution in Labuan forUSD33.0 million and USD46.0 million SBLC facilities to counter guarantee financialinstitutions in Karachi for Bank Guarantee issuance and Medium Term LoanFacility respectively on behalf of Multinet. As at 31 December 2009, the amountoutstanding is USD68.3 million (2008: USD78.8 million).2 VIP Engineering and Marketing Limited (“VIPEM”) vs Technology ResourcesIndustries Berhad (“TRI”) on TRI Telecommunications Tanzania Limited (“Tritel”)63.7 64.2In December 2001, vide Civil Case No. 427 of 2001, VIPEM claimed a sum ofUSD18.6 million from TRI as its share of loss of profits for the mismanagement ofTritel, a joint venture company between TRI and VIPEM. In light of the winding-uporder made against Tritel, TRI filed its claims of RM123.4 million with the liquidatorof Tritel in July 2003.The Directors, based on legal opinion received, are of the view that on theallegations of mismanagement, they are rhetorical and unsubstantiated. In viewof the winding up proceedings, there is also a possibility that VIPEM will notpursue its claim.Annual Report 2009 • 253