Annual Report 2021

096 Report of the Directors Annual Report 2021 Miramar Hotel and Investment Company, Limited Consideration and payment of Costs-on-Account : The service user shall pay the Consultancy Fee and Incentive Fee (if any) (as defined below) to the consultant as consideration for the provision of services under the New 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 New Agreement. Consultancy Fee : A monthly fee at the rate of 12% of the Direct Operating Expenses. Incentive Fee : The incentive fee is calculated as follows: (i) where the Monthly Gross Revenue does not exceed HK$2,000,000.00, incentive fee is 3% on the Monthly Gross Revenue over HK$1.2 million; (ii) whe r e t he Mon t h l y Gr oss Revenue exceeds HK$2,000,000.00, incentive fee is HK$24,000.00 plus 4% on the Monthly Gross Revenue over HK$2 million; provided that the aggregate amount of the Consultancy Fee and Incentive Fee payable to the consultant by the service user in any particular month shall not exceed HK$90,000.00. Payment mechanism : The service user will deposit the amount of the monthly Consultancy Fee and Incentive Fee (if any) to the consultant’s designated bank account within fourteen business days after submission of the monthly financial report by the consultant.