(b) Royalty payments to be paid quarterly in arrears withiri crié" month of the quarter to which the operating receipts relate.
(o) "Operating receipte" to include all revenue
received by the Company in consideration of goods and services offered but to exclude income earned on investments and interest received on current asseta.
(5) (a) Government is to assume liability for any
compensation which it may be decided to pay to the ferry companies arising from the 1956 Government statement.
(b) The Hong Kong and Yaumati Ferry Company Limited
and the Star Ferry Company Limited to be given the option of taking up to 5% each of the equity capital of the Coupeny. In the event that either ferry company does not take up the option in full the difference may be offered to the other ferry
All options are to be kept open for company.
one month from the date of offer.
(6) The Company to pay from the start of construction an
annual rent of $75,000 to Government for way-leave over the Crown land (including ser-bed) occupied by the tuonel itself and its approaches an determined under sub-paragraph (25) below, subject to Government retaining full development rights over the land in question to the extent that such development does not interfere with traffic using the tunel and excluding the site of any building for which a lease may be granted as set out in sub-paragraph (7) below,
(7) The Company to be granted for a period conterminous
with the franchise a lease of, and to pay a premium at the rate of $250 per square foot in respect of, land for the erection of such buildings as may be agreed between the Director of Public Works and the Company as being necessary for the efficient operation of the frane rise (other than toll booths, which, it is assumed, would be of simple one or two storey construction). Buch premium to be payable, at the Company's option, by equal annual instalments over the period of the franchise, lasa the last year, with interest at . Zone Crown Hent at $5,000 per acre per annum to be charged for the land on which the toll booths stand, and Government to be entitled if it so desired in connexion with the exercise of its development rights under sub-paragraph (6) to relocate the oxisting toll booths either separately or as part of a building erected in the exercise of its development rights.
(8) The Company to pay to Government the sum of $12 million aa a contribution towards the coat of constructing roade and other engineering works which would not otherwise be required or would cost less if the tunnel wore not built. This aum to be paid in 2 equal consecutive biennial instalmenta without interest commencing 24 months from the start of construction, Government undertaken to complete sufficient road wórka to enable the tunnel to operate as soon as it is complete and hopes to complete all ancillary works by this time.
(9) The Company to raise not less than 25% of the capital cost of the turmel in the form of equity capital exclusive of any equity capital that may be contributed by Government.
(10) Government to be given the option of taking up to 258
of any equity capital of the Company and, if Government takes up not less than 10% thereof, to be allocated seats on the Board of Directors of the Company in the same ratio as the amount taken up bears to the total issued equity capital (frections of a seat not to count) but in any case not less than two seats.
(11) (a) The Company to apply for and take all reasonable steps to obtain a quotation of its shares on the Hong Kong Stock Exchange before the second anniversary of the opening of the tunnel for traffic or such longer period as may be agreed by the Governor in Council.
(b) The public to be given an opportunity to
participate in not less than 25% of the equity capital of the Company which shall be provided pro rata by all shareholders if called upon.
(12) Bates to be payable by the Company in accordance with
the provisions of the Eating Ordinance.
(13) The Company to furnish to Government before any major
contract is let or commitments are entered into for construction, a complete statement of its financing strangements.
(14) The Govenor in Council to have power to approve or disapprove the fare structure but not so as to dany the Company a reasonable return or its capital. The initial basic fare structure shall be: $2.50 for a privato car, $5.00 for a double-decker bus and $7.50 for a lorry.
(15) Covernment to have powers to take over the undertaking
in the event of serious default on the terms of the franchise with such compensation for the assets as may be determined by arbitration lesa such penalty as the Governor in Council may deem appropriate, and to impose penalties by way of fines for lesser infringementa.
(16) On termination of the franchise the physical assets of
the Company to revert to Government without compensation, except that the cost of any machinery and equipment purchased in the final 5 years with the agreement of Government to be reimbursed at the depreciated value for Inland Revenue purposes,
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