2013 — Page 118

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Hong Kong Ferry (Holdings) Company Limited Annual Report 2013

Notes to the Accounts (Continued)

28 MATERIAL RELATED PARTY AND CONNECTED TRANSACTIONS

(a)

Key management personnel remuneration

Remuneration for key management personnel of the Group, including amounts paid to certain of the Company's directors, chief executive and the highest paid employees as disclosed in notes 7 and 8 respectively, is as follows:

Short-term employee benefits Post-employment benefits

Total remuneration is included in "staff costs" (see note 5(a)).

(b)

Other material related party and connected transactions

(1)

2013

HK$'000

2012

HK$'000

5,724

92

6,704

5,816

6,704

In 1998, the Group appointed a wholly-owned subsidiary of Henderson Land Development Company Limited ("HLD") as the development and sales manager for the redevelopment of Metro Harbour View, Kowloon Inland Lot No. 11127 (the "MHV Property") in consideration for a fee equivalent to the aggregate of 1% of the construction cost and 0.5% of the gross proceeds of sale of the residential portion of the redevelopment. At 31 December 2013, an amount of HK$18,000,000 (2012: HK$18,000,000) remained unpaid and was included in trade and other payables.

In 1999, the Group entered into a development agreement (the "Agreement") with HLD and two wholly-owned subsidiaries of HLD ("HLD Sub"), whereby HLD Sub acquired the right to 50% of any proceeds from the future sale of the residential portion of the redevelopment for a consideration of HK$1,500,000,000.

As part of the Agreement, HLD Sub agreed to reimburse the Group 50% of its development expenditures relating to the residential portion of the MHV Property. At 31 December 2013, an amount of HK$7,884,000 (2012: HK$7,957,000) remained unpaid and was included in trade and other receivables.