Annual Report 2019

079 Miramar Hotel and Investment Company, Limited Annual Report 2019 Report of the Directors (1)(c) On 17 August 2016, a lease (the “1706-1707 Lease”) was entered into between Shahdan as landlord and Union Medical as tenant, whereby Shahdan agreed to let to Union Medical the premises upon the terms as detailed below: Premises : Units 1706–1707 on the 17th Floor, Mira Place Tower A (previously known as Miramar Tower), 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong. Term : Three years, commencing from 1 September 2016 to 31 August 2019 (both days inclusive). Rent-Free period : No rent is to be payable by the tenant for the initial 61 days starting from and inclusive of the Lease Commencement Date provided that the management fee and air-conditioning charges, government rates and utility charges for the Premises shall still be paid by the tenant during the rent-free period. Rent and other charges : The rent payable on a monthly basis (exclusive of government rates, management fee and air-conditioning charges) (payable in advance on the 1st day of each month) during the term is HK$215,262.50; The aggregate monthly management fee and air-conditioning charges (subject to the periodic review or revision by Shahdan or its designated property manager) (payable in advance on the 1st day of each month) is HK$35,961.50; and Extra chilled water supply costs may be charged by Shahdan to Union Medical for additional chilled water supply required by Union Medical which is beyond the specified normal daily chilled water supply hours. Usage : To be used as a clinic only. Union Medical is a connected person of the Company thereby rendering the 1706–1707 Lease a continuing connected transaction for the Company under Chapter 14A of the Listing Rules.