Annual Report 2020

093 Report of the Directors Miramar Hotel and Investment Company, Limited Annual Report 2020 5. On 6 November 2019, Whirlwind Security Limited, a wholly-owned subsidiary of the Company as consultant entered into a car park consultancy agreement with E. M. Parking Limited as service user (the “Agreement”). Details of the terms and conditions are set out as follows: Services : The consultant shall provide professional consultancy advice and manage and operate all parking spaces from B3 Floor to 6th Mezzanine Floor of H Zentre, 15 Middle Road, Tsimshatsui, Kowloon, Hong Kong (the “Property”) (including all the ramps, drive ways and roadways providing access thereto and egress therefrom) and the Parking Service Centre on 1st Floor (the “Parking Facility”) which are owned by Henderson Land Development Company Limited (“Henderson Land”) and its subsidiaries. Term : Two years commencing from 1 August 2019 to 31 July 2021 (both days inclusive). Consideration and payment of Costs-on-Account : The service user shall pay a monthly fee at the rate of 10% of the Direct Operating Expenses (as defined below) (the “Consultancy Fee”) to the consultant as consideration for the provision of services under the Agreement. All costs and expenses relating to the management and operation of the Parking Facility and any other costs and expenses as may be agreed between the parties from time to time (the “Direct Operating Expenses”) shall also be borne by the service user. The costs-on-account deposited by the service user with the consultant quarterly to the consultant’s designated bank account in such amount as may be mutually agreed between the parties for the payment of the Direct Operating Expenses (the “Costs-on-Account”) will be used by the consultant to pay for the Direct Operating Expenses as and when needed. Any remaining Costs-on-Account shall be refunded to the service user by the consultant within fourteen business days after the expiration or sooner determination of the Agreement. Payment mechanism : The consultant will collect, on behalf of the service user, the revenue from all services or sources derived from or upon the Parking Facility (whether by cash or credit) (the “Gross Revenue”) (including all charges and fees prescribed by the service user for the parking of motor vehicles in the Parking Facility). Thereafter, the consultant will deposit the Gross Revenue actually received by the consultant to the service user’s designated bank account within fourteen business days after its submission of a monthly financial report to the service user. The service user will then deposit the amount of the monthly Consultancy Fee to the consultant’s designated bank account within fourteen business days after submission of the monthly financial report by the consultant.