Annual Report 2019

089 Miramar Hotel and Investment Company, Limited Annual Report 2019 Report of the Directors Rent and other charges : (a) rent payable on a monthly basis (exclusive of Government rates, management fee, air-conditioning charges and promotion contribution) during the term is HK$2,200,000.00; (b) Government rates (subject to Government’s review) is HK$219,000.00 per quarter; (c) aggregate monthly management fee and air-conditioning charges (subject to periodic review by Shahdan or its designated management company of the Premises) is HK$393,566.70; and (d) monthly promotion contribution, being 1.75% of the monthly rent of Premises, that is HK$38,500.00 subject to periodic review by Shahdan. Details of the Pillar Signage Licence Agreement Pillar Signage Licence Area : Pillar Signage near Shop No. G02 on the Ground Floor of Mira Place 1, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong. Term : Three years commencing from 5 August 2017 to 4 August 2020, both days inclusive, subject to the right of early termination. The licensor shall have the right to early terminate the license by giving one month’s prior notice to the licensee and repossess the Pillar Signage Licence Area without any compensation to the licensee. Licence fee and other charges : (1) The licence fee (exclusive of electricity charges but inclusive of management fee, air-conditioning charge and rates) payable for the whole term is HK$1,100.00; and (2) Electricity charges, and ongoing maintenance cost (if any) shall be borne by the licensee during the Licence Period. User : To be used for advertising the trade name of the licensee only. As HPAL is an indirect wholly-owned subsidiary of Henderson Land, which in turn is a substantial shareholder of the Company, therefore HPAL is a connected person of the Company under the Listing Rules. Accordingly, the entering into of the Tenancy Agreement and Pillar Signage Licence Agreement constituted continuing connected transactions for the Company under Chapter 14A of the Listing Rules.