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(3) If the tender shall offer a royalty by way of percentage upon the gross annual receipts varying with the amount of such gross annual receipts then
(a) the foregoing sub-paragraph (2) shall apply, and
(b) the royalty payable in respect of each individual month shall be cal- culated on the assumption that the gross receipts for that month represent the average gross monthly receipts throughout the then cur- rent year of the term of the licence, but
(e) within fourteen days after the expiration of each year of the term of the licence an account shall be taken of all gross receipts during the year and of the royalty payable for the year as ascertained and deter- mined by reference to the appropriate percentage for the gross receipts for the year as shown by such account and there shall forth- with be paid by the licensee to the Colonial Treasurer or refunded by the Colonial Treasurer to the licensee such sum as shall be shown to be due upon such account after giving credit for all monthly sums paid by way of royalty during the period covered by the account, and (d) in the event of the determination of the licence otherwise than at the end of a complete year of its term a like account shall be taken and like adjustment made for the period since the end of the preceding year, and for the purpose of such an account the appropriate royalty shall be determined by assuming that the gross receipts for the period covered by the account would have been maintained at the same level throughout the complete year.
(4) No alteration or change of the fares to be demanded or taken by the licensee shall affect the percentage of the gross receipts or give rise to any claim by the licensee.
(5) The percentage to be paid on the gross receipts shall not be varied or affected by any variation in the rates of Customs duties or the imposition of any new duties upon petrol or other light oil or spirit or any other thing used as fuel or any oil used in connection with the service affected by any licence or by any re- quirement for increase, extension, curtailment, alteration or variation of the routes, sections or stopping places of the service affected by the licence unless the Governor in Council in his discretion shall see fit to allow a reduction.
14. The licensee shall keep the following records in respect of every ser- vice, namely:-
—
(1) number of motor vehicles running;
(2) number of daily journeys and mileage run by each vehicle; (3) number of passengers carried by each vehicle for each journey; and (4) details of receipts in respect of each section and route;
and shall permit the Governor or any person authorised by him to inspect all such records and also all accounts kept by the licensee in connexion with every service and all stocks of tickets, and the licensee shall afford all such facilities for such in- spection as may from time to time be required.
The licensee shall, from time to time and as and when the same may be required, deliver to the Colonial Treasurer accounts and balance sheets, audited and certified by a chartered accountant or accountants approved by the Governor in Council showing the takings of the licensee.
15. The acceptance by the Colonial Treasurer of any payment tendered by the licensee shall in no way debar or preclude any claim to a further sum or to
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any adjustment appearing to be due or necessary or required upon the examina- tion or final acceptance of the licensee's accounts or any of them by the Colonial Treasurer.
Deposit by Tenderers.
16. (1) Every tenderer must deposit with the Colonial Treasurer the sum of $1,000 and the deposit receipt must be attached to the tender when this is for- warded to the Colonial Secretary.
(2) The deposit made by an unsuccessful tenderer will be returned after notice of non-acceptance shall have been posted to him.
(3) In the case of a successful tender, the deposit will not be returned until the tenderer shall have made with the Colonial Treasurer such deposit as security for the compliance by the licensee with his obligations as hereinafter mentioned.
Security.
17. (1) The deposit as security for compliance by the licensee with his obligations shall be made with the Colonial Treasurer by the successful tenderer within fourteen days after the service on the successful tenderer of a notice of ac- ceptance of his tender.
(2) The amount of the deposit shall be
(a) In the case of a successful tender for a service for the whole of the
Colony, $50,000
(b) In the case of a successful tender for a service for the whole of the
Island of Hong Kong, $20,000
(c) In the case of a successful tender for a service for the whole of the
Kowloon Peninsula, including the New Territories, $30,000.
(3) The deposit shall be made in such manner and shall be of such nature as the Colonial Treasurer shall direct and approve.
(4) If the successful tenderer shall fail to make the deposit required by this paragraph within the prescribed period or such extended period as the Colonial Treasurer may in writing allow then the deposit made under the preceding para- graph shall be forfeited to the Government and the successful tenderer shall have no claim to the issue of any licence.
(5) The licensee shall enter into an agreement in such form as the Colonial Treasurer may require charging the sum deposited by way of security with the pay- ment to the Government of all losses damages costs charges claims demands and expenses which may from time to time be incurred by the Government through the failure of the licensee duly and satisfactorily to comply with the obligations imposed by his licence and providing for deductions to be made on the certificate of the Colonial Secretary as to the amount to be deducted and for delivery up of the deposit receipt for cancellation or alteration of the amount.
(6) In the event of any deduction being made from the deposited sum and the licence not being thereon determined the licensee shall within fourteen days after such deduction make up the deposited sum to the full original amount thereof.
19.
The Vehicles and Traffic Regulation Ordinance and Regulations.
It shall be a condition of every licence that the licensee shall observe and comply with the Vehicles and Traffic Regulation Ordinance, 1912, and every Ordin-
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