Annual Report 2020

090 Report of the Directors Annual Report 2020 Miramar Hotel and Investment Company, Limited (4) (b) On 31 July 2020, Shahdan entered into the following agreements with HPAL which constituted continuing connected transactions for the Company: (i) A tenancy agreement (the “Renewed Tenancy Agreement”) entered into between Shahdan as landlord and HPAL as tenant; and (ii) A licence agreement (the “Renewed Pillar Signage Licence Agreement”) entered into between Shahdan as licensor and HPAL as licensee. Details of the terms and conditions of the agreements are set out as follows: Details of the Renewed Tenancy Agreement Premises : Shops 501–506, 5/F., Mira Place 1, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong. Term : Three years commencing from 5 August 2020 to 4 August 2023, both days inclusive. Both the landlord and the tenant shall have the right to early terminate this tenancy agreement by giving a notice of not less than three months to the other party after 4 August 2022. Rent and other charges : (a) rent payable on a monthly basis (exclusive of Government rates, management fee, air-conditioning charges and p r omo t i on con t r i bu t i on ) du r i ng t he t e rm i s HK$2,260,000.00; (b) Government rates (subject to Government’s review) is HK$100,000.00 per month; (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$435,885.70; and (d) monthly promotion contribution, being 2% of the monthly rent of Premises, that is HK$45,200.00 subject to periodic review by Shahdan.