"Subject to" means "under the control of."
A candy bar might have a prize coupon in it. The coupon says "Scratch off the covering. If you see three dollar signs, you win $1,000! Subject to local law." Some places might have laws in which this would be a kind of gambling, and illegal. The words "subject to local law" is a short way of saying "You win $1,000, unless you live in a place in which this game is illegal, in which case you don't."
In your agreement, it means "the agreement shall terminate on 31/12/2009 unless something else in this agreement says something different." You need to read through the whole agreement. You need to see if there is language somewhere else that says "if thus-and-such happens, the agreement shall terminate."