Common use of After Payment Due Date Clause in Contracts

After Payment Due Date. 5.1 USC payment by a CP which is received by the Intermediary on Payment Due Date, but after Banking Hours on Business Days, will be considered as overdue payment and subject to overdue interest. 5.2 The Intermediary will receive the Net Outstanding Amount and overdue interest from the CPs. PCCWHKTC will be the recipient of both the Net Outstanding Amount and the overdue interest. 5.3 The Intermediary will issue Overdue/Partial Payment Report (Attachment 8) to the TA on Tuesdays of every week via mail and electronic mail highlighting overdue status for the previous week(s). Report indicating “Nil” will be provided should no CP have overdue payments. The Overdue/Partial Payment Report will show the CPs who have not settled their outstanding amounts. For the avoidance of doubt, overdue amounts for different USC Collection Cycles will remain to be shown separately by USC Collection Cycle in the Overdue/Partial Payment Report. 5.4 The Intermediary will issue the Second Reminder Notice (Attachment 9) on the 16th calendar day after the Payment Due Date by mail and facsimile to CPs who have not settled the Total Overdue Amount set out in the First Reminder Notice. Additional overdue interest for the second reminder period will be calculated based on 15 calendar day period on the Net Outstanding Amount. The Total Overdue Amount shown on the Second Reminder Notice should equal to the sum of the Net Outstanding Amount, the overdue interest for the first reminder period and the overdue interest for the second reminder period. Simple annual interest rate of Prime Rate plus 2% will be applied to the Net Outstanding Amount. 5.5 Copies of the Second Reminder Notices issued to CPs, who have outstanding payment as of the 31st calendar day after the Payment Due Date, will be copied and sent to the TA by post within 3 Business Days. The TA will then deliver the appropriate Second Reminder Notices and information (i.e. contact name, fax number, telephone number and mailing address of respective CP) to PCCWHKTC for its private recovery actions within a reasonable time subject to Clause 4.5 of this Agreement. 5.6 Thirty calendar days after the Payment Due Date, the Intermediary has no responsibility to accumulate, track and report any additional overdue interest after the end of respective USC Collection Cycle. PCCWHKTC shall be responsible for the recovery effort of any Net Outstanding Amount and overdue interest. 5.7 Authorised Representatives from PCCWHKTC will update the Intermediary on the amount recovered with a copy to the TA (Attachment 10). Intermediary will then make the necessary adjustments on subsequent Invoices, Monthly Statements and Overdue/Partial Payment Report. PCCWHKTC should breakdown the repayment information by CPs and USC Collection Cycle (applicable to all USC Collection Cycles). The recovered amount should include amount recovered by PCCWHKTC and interest charged by PCCWHKTC. PCCWHKTC shall assure that- (a) the information provided to the Intermediary is true and accurate; (b) those documents related to its private recovery of USC, such as correspondences and cheques, shall be maintained up to the seventh anniversary of the expiry of the Agreement; and (c) documents mentioned in (b) will be delivered to the TA as per his request. Without prejudice to the generality of the power conferred upon the TA by the Ordinance the TA may request the information relating to this paragraph 5.7 that the TA may reasonably require to ensure PCCWHKTC’s compliance with the provisions hereof. If PCCWHKTC refuses or fails to supply the information reasonably request under this Clause the TA is entitled to infer that PCCWHKTC does not satisfy the requirements above and in that event, the TA may by notice inform the Intermediary and the Intermediary shall until further notice by the TA cease to perform its duties under this paragraph 5.7 upon receiving written notification from the Authorised Representative of the TA. The TA will copy such notification to PCCWHKTC. In case CP makes a payment without attaching any payment slip, the payment will be allocated on first-in-first-out basis, meaning that the record of merged column for USC Collection Cycle 1-6 will be applied first then Cycles 7, 8 and so on with exception to paragraph 7.9 after the closing of USC Collection Cycle 1-21. Should the outstanding amount be subsequently recovered by PCCWHKTC, any payment allocated on first-in-first-out basis will not be reversed, but the Intermediary will treat the amount as a credit item for subsequent cycles. The Intermediary will process checks for settlement of overdue payments received during the entire period of this Agreement. The Intermediary will transfer amount collected in accordance with the schedule as set out in paragraph 4.3 above. 5.8 The Intermediary will generate Monthly Statement (Attachment 11) to the TA and PCCWHKTC up to 31 December 2008 by mail and electronic mail on the 5th Business Day of the following month. 5.9 The respective USC Collection Cycle will be considered complete once the Second Reminder Notice for the relevant batch expires, that is on the 30th calendar day after the issuance of the First Reminder Notice. 5.10 Five types of adjustments may be required during the entire contracted period: 5.10.1 Traffic adjustment/data omission - For CPs who have failed to report traffic punctually, the Intermediary will estimate their traffic volume based on previous month’s data plus a factor of 10% per month growth rate. The TA will submit the adjusted traffic to the Intermediary on the subsequent USC Collection Cycle’s Notification Day. The adjustment will then be reflected on the Invoice issued on the Invoice Issuance Day. All refund/recollection will be arranged through an adjustment in this USC Collection Cycle Invoice for the corresponding CP. If adjustments happen after the last USC Collection Cycle, the TA will consolidate adjustment requests and deliver to the Intermediary on or before the 10th day of each month. Submission date will be treated as the 10th even the adjustment data arrive the Intermediary on an earlier date. If the TA receives auditor certificate from a particular CP before the scheduled submission date of the traffic adjustment to the Intermediary, traffic adjustment will not be processed and any adjustment will be based on auditor certificate. The Intermediary will issue separate Invoice on the traffic adjustment to CPs at no extra cost if the traffic adjustment is sent to the Intermediary before the submission of auditor's certificate by the CP. Traffic adjustment/data omission do not apply to USC Collection Cycle 1-6 data. If the credit adjustment is greater than the billed amount charged under the Invoice, refund of the difference will be sent to the CP. Should the total amount of refund be greater than the current available balance in the Settlement Account, the Intermediary will serve a written notice to PCCWHKTC requesting transfer of adequate amount to the Settlement Account. The Intermediary may only execute the refund within 2 Business Days upon receipt of sufficient amount from PCCWHKTC and will not be responsible for any delay due to insufficient available balance in the Settlement Account to cover the batch of refund. If the credit adjustment is less than the billed amount charged under the Invoice, the difference will be collected from the CP on the coming USC Collection Cycle. No interest will be accrued for any credit adjustment amount. Interest at Prime Rate Plus 2% will be applied to the debit adjustment amount calculated from the day after the corresponding Payment Due Date up to the Invoice Issuance Day immediately after the receipt of adjusted traffic information from the TA. The difference and accrued interest will be collected from the CP on the coming USC Collection Cycle. Prime Rate is fixed as at the date immediately after the corresponding Payment Due Date. 5.10.2 Provisional USC adjustment – Adjustment has to be made when there is any refund or collection arising from the difference between the provisional and actual USC. This adjustment will be submitted in batches. The batches can be submitted at any time but in any event 60 Business Days before the expiry of this Agreement. PCCWHKTC will be responsible for additional costs incurred in accordance with Schedule 3. Adjustment is not applicable to USC Collection Cycle 1-21 after the TA’s notification of closure as described in paragraph 7.9. If the refund is greater than the current available balance in the Settlement Account, the Intermediary will serve a written notice to PCCWHKTC requesting transfer of adequate amount to the Settlement Account. The Intermediary may only execute the refund within 2 Business Days upon receipt of sufficient amount from PCCWHKTC and will not be responsible for any delay due to insufficient available balance in the Settlement Account to cover the batch of refund. No interest will be accrued for either refund or collection of shortfall. 5.10.3.1 Auditor Certificate adjustment (normal) – Adjustment has to be made when discrepancy arises due to difference between annual auditor certificate of CPs and traffic reported. This adjustment will be submitted in batches. The batches can be submitted any time but 60 Business Days before the expiry of this Agreement. PCCWHKTC will be responsible for additional costs incurred in accordance with Schedule 3. Adjustment is not applicable to USC Collection Cycle 1-21 after the TA’s notification of closure as described in paragraph 7.9. If the refund is greater than the current available balance in the Settlement Account, the Intermediary will serve a written notice to PCCWHKTC requesting transfer of adequate amount to the Settlement Account. The Intermediary may only execute the refund within 2 Business Days upon receipt of sufficient amount from PCCWHKTC and will not be responsible for any delay due to insufficient available balance in the Settlement Account to cover the batch of refund. No interest will be accrued for either refund or collection of shortfall. 5.10.3.2 Auditor Certificate adjustment (false) – Adjustment has to be made when the TA discovers from an auditor certificate that a CP who did not report, or reported zero traffic, to the TA actually have traffic recorded during the period subject to auditing. The adjustment amount is subject to overdue interest of Prime Rate plus 2% calculated based on the start and end dates (both days inclusive) provided by the TA. Prime Rate is fixed as at the date immediately after the Payment Due Date of the first USC Collection Cycle for that particular CP. Since other collection arrangements are identical to paragraph 5.10.3.1 above, collection effort described in this paragraph will be consolidated to the of Auditor Certificate adjustment (normal). For the avoidance of doubt, submission of raw adjustment data will not be mingled with regular USC Collection data. For those Invoices in relation to CPs who did not report or reported zero traffic to the TA during the respective USC Collection Cycles but subsequently verified to have traffic recorded will be subject to Intermediary’s collection service charge set out in Pricing Schedule.

After Payment Due Date. 5.1 USC payment by a CP which is received by the Intermediary on Payment Due Date, but after Banking Hours on Business DaysDays or after noon on Saturdays, will be considered as overdue payment and subject to overdue interest. 5.2 The Intermediary will receive the Net Outstanding Amount and overdue interest from the CPs. PCCWHKTC will be the recipient of both the Net Outstanding Amount and the overdue interest. 5.3 The Intermediary will issue Overdue/Partial Payment Report (Attachment 8) to the TA on Tuesdays of every week via mail and electronic mail highlighting overdue status for the previous week(s). Report indicating “Nil” will be provided should no CP have overdue payments. The Overdue/Partial Payment Report will show the CPs who have not settled their outstanding amounts. For the avoidance of doubt, overdue amounts for different USC Collection Cycles will remain to be shown separately by USC Collection Cycle in the Overdue/Partial Payment Report. 5.4 The Intermediary will issue the Second Reminder Notice (Attachment 9) on the 16th calendar day after the Payment Due Date by mail and facsimile to CPs who have not settled the Total Overdue Amount set out in the First Reminder Notice. Additional overdue interest for the second reminder period will be calculated based on 15 calendar day period on the Net Outstanding Amount. The Total Overdue Amount shown on the Second Reminder Notice should equal to the sum of the Net Outstanding Amount, the overdue interest for the first reminder period and the overdue interest for the second reminder period. Simple annual interest rate of Prime Rate plus 2% will be applied to the Net Outstanding Amount. 5.5 Copies of the Second Reminder Notices issued to CPs, who have outstanding payment as of the 31st calendar day after the Payment Due Date, will be copied and sent to the TA by post within 3 Business Days. The TA will then deliver the appropriate Second Reminder Notices and information (i.e. contact name, fax number, telephone number and mailing address of respective CP) to PCCWHKTC for its private recovery actions within a reasonable time subject to Clause 4.5 of this Agreement. 5.6 Thirty calendar days after the Payment Due Date, the Intermediary has no responsibility to accumulate, track and report any additional overdue interest after the end of respective USC Collection Cycle. PCCWHKTC shall be responsible for the recovery effort of any Net Outstanding Amount and overdue interest. 5.7 Authorised Representatives from PCCWHKTC will update the Intermediary on the amount recovered with a copy to the TA (Attachment 10). Intermediary will then make the necessary adjustments on subsequent Invoices, Monthly Statements and Overdue/Partial Payment Report. PCCWHKTC should breakdown the repayment information by CPs and USC Collection Cycle (applicable to all USC Collection Cycles). The recovered amount should include amount recovered by PCCWHKTC and interest charged by PCCWHKTC. PCCWHKTC shall assure that- (a) the information provided to the Intermediary is true and accurate; (b) those documents related to its private recovery of USC, such as correspondences and cheques, shall be maintained up to the seventh anniversary of the expiry of the Agreement; and (c) documents mentioned in (b) will be delivered to the TA as per his request. Without prejudice to the generality of the power conferred upon the TA by the Ordinance the TA may request the information relating to this paragraph 5.7 that the TA may reasonably require to ensure PCCWHKTC’s compliance with the provisions hereof. If PCCWHKTC refuses or fails to supply the information reasonably request under this Clause the TA is entitled to infer that PCCWHKTC does not satisfy the requirements above and in that event, the TA may by notice inform the Intermediary and the Intermediary shall until further notice by the TA cease to perform its duties under this paragraph 5.7 upon receiving written notification from the Authorised Representative of the TA. The TA will copy such notification to PCCWHKTC. In case CP makes a payment without attaching any payment slip, the payment will be allocated on first-in-first-out basis, meaning that the record of merged column for USC Collection Cycle 1-6 will be applied first then Cycles 7, 8 and so on with exception to paragraph 7.9 after the closing of USC Collection Cycle 1-2111. Should the outstanding amount be subsequently recovered by PCCWHKTC, any payment allocated on first-in-first-out basis will not be reversed, but the Intermediary will treat the amount as a credit item for subsequent cycles. The Intermediary will process checks for settlement of overdue payments received during the entire period of this Agreement. The Intermediary will transfer amount collected in accordance with the schedule as set out in paragraph 4.3 above. 5.8 The Intermediary will generate Monthly Statement (Attachment 11) to the TA and PCCWHKTC up to 31 December 2008 2004 by mail and electronic mail on the 5th Business Day of the following month. 5.9 The respective USC Collection Cycle will be considered complete once the Second Reminder Notice for the relevant batch expires, that is on the 30th calendar day after the issuance of the First Reminder Notice. 5.10 Five types of adjustments may be required during the entire contracted period: 5.10.1 Traffic adjustment/data omission - For CPs who have failed to report traffic punctually, the Intermediary will estimate their traffic volume based on previous month’s data plus a factor of 10% per month growth rate. The TA will submit the adjusted traffic to the Intermediary on the subsequent USC Collection Cycle’s Notification Day. The adjustment will then be reflected on the Invoice issued on the Invoice Issuance Day. All refund/recollection will be arranged through an adjustment in this USC Collection Cycle Invoice for the corresponding CP. If adjustments happen after the last USC Collection Cycle, the TA will consolidate adjustment requests and deliver to the Intermediary on or before the 10th day of each month. Submission date will be treated as the 10th even the adjustment data arrive the Intermediary on an earlier date. If the TA receives auditor certificate from a particular CP before the scheduled submission date of the traffic adjustment to the Intermediary, traffic adjustment will not be processed and any adjustment will be based on auditor certificate. The Intermediary will issue separate Invoice on the traffic adjustment to CPs at no extra cost if the traffic adjustment is sent to the Intermediary before the submission of auditor's certificate by the CP. Traffic adjustment/data omission do not apply to USC Collection Cycle 1-6 data. If the credit adjustment is greater than the billed amount charged under the Invoice, refund of the difference will be sent to the CP. Should the total amount of refund be greater than the current available balance in the Settlement Account, the Intermediary will serve a written notice to PCCWHKTC requesting transfer of adequate amount to the Settlement Account. The Intermediary may only execute the refund within 2 Business Days upon receipt of sufficient amount from PCCWHKTC and will not be responsible for any delay due to insufficient available balance in the Settlement Account to cover the batch of refund. If the credit adjustment is less than the billed amount charged under the Invoice, the difference will be collected from the CP on the coming USC Collection Cycle. No interest will be accrued for any credit adjustment amount. Interest at Prime Rate Plus 2% will be applied to the debit adjustment amount calculated from the day after the corresponding Payment Due Date up to the Invoice Issuance Day immediately after the receipt of adjusted traffic information from the TA. The difference and accrued interest will be collected from the CP on the coming USC Collection Cycle. Prime Rate is fixed as at the date immediately after the corresponding Payment Due Date. 5.10.2 Provisional USC adjustment – Adjustment has to be made when there is any refund or collection arising from the difference between the provisional and actual USC. This adjustment will be submitted in batches. The batches can be submitted at any time but in any event 60 Business Days before the expiry of this Agreement. PCCWHKTC will be responsible for additional costs incurred in accordance with Schedule 3. Adjustment is not applicable to USC Collection Cycle 1-21 11 after the TA’s notification of closure as described in paragraph 7.9. If the refund is greater than the current available balance in the Settlement Account, the Intermediary will serve a written notice to PCCWHKTC requesting transfer of adequate amount to the Settlement Account. The Intermediary may only execute the refund within 2 Business Days upon receipt of sufficient amount from PCCWHKTC and will not be responsible for any delay due to insufficient available balance in the Settlement Account to cover the batch of refund. No interest will be accrued for either refund or collection of shortfall7. 5.10.3.1 Auditor Certificate adjustment (normal) – Adjustment has to be made when discrepancy arises due to difference between annual auditor certificate of CPs and traffic reported. This adjustment will be submitted in batches. The batches can be submitted any time but 60 Business Days before the expiry of this Agreement. PCCWHKTC will be responsible for additional costs incurred in accordance with Schedule 3. Adjustment is not applicable to USC Collection Cycle 1-21 after the TA’s notification of closure as described in paragraph 7.9. If the refund is greater than the current available balance in the Settlement Account, the Intermediary will serve a written notice to PCCWHKTC requesting transfer of adequate amount to the Settlement Account. The Intermediary may only execute the refund within 2 Business Days upon receipt of sufficient amount from PCCWHKTC and will not be responsible for any delay due to insufficient available balance in the Settlement Account to cover the batch of refund. No interest will be accrued for either refund or collection of shortfall. 5.10.3.2 Auditor Certificate adjustment (false) – Adjustment has to be made when the TA discovers from an auditor certificate that a CP who did not report, or reported zero traffic, to the TA actually have traffic recorded during the period subject to auditing. The adjustment amount is subject to overdue interest of Prime Rate plus 2% calculated based on the start and end dates (both days inclusive) provided by the TA. Prime Rate is fixed as at the date immediately after the Payment Due Date of the first USC Collection Cycle for that particular CP. Since other collection arrangements are identical to paragraph 5.10.3.1 above, collection effort described in this paragraph will be consolidated to the of Auditor Certificate adjustment (normal). For the avoidance of doubt, submission of raw adjustment data will not be mingled with regular USC Collection data. For those Invoices in relation to CPs who did not report or reported zero traffic to the TA during the respective USC Collection Cycles but subsequently verified to have traffic recorded will be subject to Intermediary’s collection service charge set out in Pricing Schedule.

After Payment Due Date. 5.1 USC payment by a CP which is received by the Intermediary on Payment Due Date, but after Banking Hours on Business DaysDays or after noon on Saturdays, will be considered as overdue payment and subject to overdue interest. 5.2 The Intermediary will receive the Net Outstanding Amount and overdue interest from the CPs. PCCWHKTC will be the recipient of both the Net Outstanding Amount and the overdue interest. 5.3 The Intermediary will issue Overdue/Partial Payment Report (Attachment 8) to the TA on Tuesdays of every week via mail and electronic mail highlighting overdue status for the previous week(s). Report indicating “Nil” will be provided should no CP have overdue payments. The Overdue/Partial Payment Report will show the CPs who have not settled their outstanding amounts. For the avoidance of doubt, overdue amounts for different USC Collection Cycles will remain to be shown separately by USC Collection Cycle in the Overdue/Partial Payment Report. 5.4 The Intermediary will issue the Second Reminder Notice (Attachment 9) on the 16th calendar day after the Payment Due Date by mail and facsimile to CPs who have not settled the Total Overdue Amount set out in the First Reminder Notice. Additional overdue interest for the second reminder period will be calculated based on 15 calendar day period on the Net Outstanding Amount. The Total Overdue Amount shown on the Second Reminder Notice should equal to the sum of the Net Outstanding Amount, the overdue interest for the first reminder period and the overdue interest for the second reminder period. Simple annual interest rate of Prime Rate plus 2% will be applied to the Net Outstanding Amount. 5.5 Copies of the Second Reminder Notices issued to CPs, who have outstanding payment as of the 31st calendar day after the Payment Due Date, will be copied and sent to the TA by post within 3 Business Days. The TA will then deliver the appropriate Second Reminder Notices and information (i.e. contact name, fax number, telephone number and mailing address of respective CP) to PCCWHKTC for its private recovery actions within a reasonable time subject to Clause 4.5 of this Agreement. 5.6 Thirty calendar days after the Payment Due Date, the Intermediary has no responsibility to accumulate, track and report any additional overdue interest after the end of respective USC Collection Cycle. PCCWHKTC shall be responsible for the recovery effort of any Net Outstanding Amount and overdue interest. 5.7 Authorised Representatives from PCCWHKTC will update the Intermediary on the amount recovered with a copy to the TA (Attachment 10). Intermediary will then make the necessary adjustments on subsequent Invoices, Monthly Statements and Overdue/Partial Payment Report. PCCWHKTC should breakdown the repayment information by CPs and USC Collection Cycle (applicable to all USC Collection Cycles). The recovered amount should include amount recovered by PCCWHKTC and interest charged by PCCWHKTC. PCCWHKTC shall assure that- (a) the information provided to the Intermediary is true and accurate; (b) those documents related to its private recovery of USC, such as correspondences and cheques, shall be maintained up to the seventh anniversary of the expiry of the Agreement; and (c) documents mentioned in (b) will be delivered to the TA as per his request. Without prejudice to the generality of the power conferred upon the TA by the Ordinance the TA may request the information relating to this paragraph 5.7 that the TA may reasonably require to ensure PCCWHKTC’s compliance with the provisions hereof. If PCCWHKTC refuses or fails to supply the information reasonably request under this Clause the TA is entitled to infer that PCCWHKTC does not satisfy the requirements above and in that event, the TA may by notice inform the Intermediary and the Intermediary shall until further notice by the TA cease to perform its duties under this paragraph 5.7 upon receiving written notification from the Authorised Representative of the TA. The TA will copy such notification to PCCWHKTC. In case CP makes a payment without attaching any payment slip, the payment will be allocated on first-in-first-out basis, meaning that the record of merged column for USC Collection Cycle 1-6 will be applied first then Cycles 7, 8 and so on with exception to paragraph 7.9 after the closing of USC Collection Cycle 1-21. Should the outstanding amount be subsequently recovered by PCCWHKTC, any payment allocated on first-in-first-out basis will not be reversed, but the Intermediary will treat the amount as a credit item for subsequent cycles. The Intermediary will process checks for settlement of overdue payments received during the entire period of this Agreement. The Intermediary will transfer amount collected in accordance with the schedule as set out in paragraph 4.3 above. 5.8 The Intermediary will generate Monthly Statement (Attachment 11) to the TA and PCCWHKTC up to 31 December 2008 by mail and electronic mail on the 5th Business Day of the following month. 5.9 The respective USC Collection Cycle will be considered complete once the Second Reminder Notice for the relevant batch expires, that is on the 30th calendar day after the issuance of the First Reminder Notice. 5.10 Five types of adjustments may be required during the entire contracted period: 5.10.1 Traffic adjustment/data omission - For CPs who have failed to report traffic punctually, the Intermediary will estimate their traffic volume based on previous month’s data plus a factor of 10% per month growth rate. The TA will submit the adjusted traffic to the Intermediary on the subsequent USC Collection Cycle’s Notification Day. The adjustment will then be reflected on the Invoice issued on the Invoice Issuance Day. All refund/recollection will be arranged through an adjustment in this USC Collection Cycle Invoice for the corresponding CP. If adjustments happen after the last USC Collection Cycle, the TA will consolidate adjustment requests and deliver to the Intermediary on or before the 10th day of each month. Submission date will be treated as the 10th even the adjustment data arrive the Intermediary on an earlier date. If the TA receives auditor certificate from a particular CP before the scheduled submission date of the traffic adjustment to the Intermediary, traffic adjustment will not be processed and any adjustment will be based on auditor certificate. The Intermediary will issue separate Invoice on the traffic adjustment to CPs at no extra cost if the traffic adjustment is sent to the Intermediary before the submission of auditor's certificate by the CP. Traffic adjustment/data omission do not apply to USC Collection Cycle 1-6 data. If the credit adjustment is greater than the billed amount charged under the Invoice, refund of the difference will be sent to the CP. Should the total amount of refund be greater than the current available balance in the Settlement Account, the Intermediary will serve a written notice to PCCWHKTC requesting transfer of adequate amount to the Settlement Account. The Intermediary may only execute the refund within 2 Business Days upon receipt of sufficient amount from PCCWHKTC and will not be responsible for any delay due to insufficient available balance in the Settlement Account to cover the batch of refund. If the credit adjustment is less than the billed amount charged under the Invoice, the difference will be collected from the CP on the coming USC Collection Cycle. No interest will be accrued for any credit adjustment amount. Interest at Prime Rate Plus 2% will be applied to the debit adjustment amount calculated from the day after the corresponding Payment Due Date up to the Invoice Issuance Day immediately after the receipt of adjusted traffic information from the TA. The difference and accrued interest will be collected from the CP on the coming USC Collection Cycle. Prime Rate is fixed as at the date immediately after the corresponding Payment Due Date. 5.10.2 Provisional USC adjustment – Adjustment has to be made when there is any refund or collection arising from the difference between the provisional and actual USC. This adjustment will be submitted in batches. The batches can be submitted at any time but in any event 60 Business Days before the expiry of this Agreement. PCCWHKTC will be responsible for additional costs incurred in accordance with Schedule 3. Adjustment is not applicable to USC Collection Cycle 1-21 after the TA’s notification of closure as described in paragraph 7.9. If the refund is greater than the current available balance in the Settlement Account, the Intermediary will serve a written notice to PCCWHKTC requesting transfer of adequate amount to the Settlement Account. The Intermediary may only execute the refund within 2 Business Days upon receipt of sufficient amount from PCCWHKTC and will not be responsible for any delay due to insufficient available balance in the Settlement Account to cover the batch of refund. No interest will be accrued for either refund or collection of shortfall. 5.10.3.1 Auditor Certificate adjustment (normal) – Adjustment has to be made when discrepancy arises due to difference between annual auditor certificate of CPs and traffic reported. This adjustment will be submitted in batches. The batches can be submitted any time but 60 Business Days before the expiry of this Agreement. PCCWHKTC will be responsible for additional costs incurred in accordance with Schedule 3. Adjustment is not applicable to USC Collection Cycle 1-21 after the TA’s notification of closure as described in paragraph 7.9. If the refund is greater than the current available balance in the Settlement Account, the Intermediary will serve a written notice to PCCWHKTC requesting transfer of adequate amount to the Settlement Account. The Intermediary may only execute the refund within 2 Business Days upon receipt of sufficient amount from PCCWHKTC and will not be responsible for any delay due to insufficient available balance in the Settlement Account to cover the batch of refund. No interest will be accrued for either refund or collection of shortfall. 5.10.3.2 Auditor Certificate adjustment (false) – Adjustment has to be made when the TA discovers from an auditor certificate that a CP who did not report, or reported zero traffic, to the TA actually have traffic recorded during the period subject to auditing. The adjustment amount is subject to overdue interest of Prime Rate plus 2% calculated based on the start and end dates (both days inclusive) provided by the TA. Prime Rate is fixed as at the date immediately after the Payment Due Date of the first USC Collection Cycle for that particular CP. Since other collection arrangements are identical to paragraph 5.10.3.1 above, collection effort described in this paragraph will be consolidated to the of Auditor Certificate adjustment (normal). For the avoidance of doubt, submission of raw adjustment data will not be mingled with regular USC Collection data. For those Invoices in relation to CPs who did not report or reported zero traffic to the TA during the respective USC Collection Cycles but subsequently verified to have traffic recorded will be subject to Intermediary’s collection service charge set out in Pricing Schedule.

After Payment Due Date. 5.1 USC payment by a CP which is received by the Intermediary on Payment Due Date, but after Banking Hours on Business DaysDays or after noon on Saturdays, will be considered as overdue payment and subject to overdue interest. 5.2 The Intermediary will receive the Net Outstanding Amount and overdue interest from the CPs. PCCWHKTC will be the recipient of both the Net Outstanding Amount and the overdue interest. 5.3 The Intermediary will issue Overdue/Partial Payment Report (Attachment 8) to the TA on Tuesdays of every week via mail and electronic mail highlighting overdue status for the previous week(s). Report indicating “Nil” will be provided should no CP have overdue payments. The Overdue/Partial Payment Report will show the CPs who have not settled their outstanding amounts. For the avoidance of doubt, overdue amounts for different USC Collection Cycles will remain to be shown separately by USC Collection Cycle in the Overdue/Partial Payment Report. 5.4 The Intermediary will issue the Second Reminder Notice (Attachment 9) on the 16th calendar day after the Payment Due Date by mail and facsimile to CPs who have not settled the Total Overdue Amount set out in the First Reminder Notice. Additional overdue interest for the second reminder period will be calculated based on 15 calendar day period on the Net Outstanding Amount. The Total Overdue Amount shown on the Second Reminder Notice should equal to the sum of the Net Outstanding Amount, the overdue interest for the first reminder period and the overdue interest for the second reminder period. Simple annual interest rate of Prime Rate plus 2% will be applied to the Net Outstanding Amount. 5.5 Copies of the Second Reminder Notices issued to CPs, who have outstanding payment as of the 31st calendar day after the Payment Due Date, will be copied and sent to the TA by post within 3 Business Days. The TA will then deliver the appropriate Second Reminder Notices and information (i.e. contact name, fax number, telephone number and mailing address of respective CP) to PCCWHKTC for its private recovery actions within a reasonable time subject to Clause 4.5 of this Agreement. 5.6 Thirty calendar days after the Payment Due Date, the Intermediary has no responsibility to accumulate, track and report any additional overdue interest after the end of respective USC Collection Cycle. PCCWHKTC shall be responsible for the recovery effort of any Net Outstanding Amount and overdue interest. 5.7 Authorised Representatives from PCCWHKTC will update the Intermediary on the amount recovered with a copy to the TA (Attachment 10). Intermediary will then make the necessary adjustments on subsequent Invoices, Monthly Statements and Overdue/Partial Payment Report. PCCWHKTC should breakdown the repayment information by CPs and USC Collection Cycle (applicable to all USC Collection Cycles). The recovered amount should include amount recovered by PCCWHKTC and interest charged by PCCWHKTC. PCCWHKTC shall assure that- (a) the information provided to the Intermediary is true and accurate; (b) those documents related to its private recovery of USC, such as correspondences and cheques, shall be maintained up to the seventh anniversary of the expiry of the Agreement; and (c) documents mentioned in (b) will be delivered to the TA as per his request. Without prejudice to the generality of the power conferred upon the TA by the Ordinance the TA may request the information relating to this paragraph 5.7 that the TA may reasonably require to ensure PCCWHKTC’s compliance with the provisions hereof. If PCCWHKTC refuses or fails to supply the information reasonably request under this Clause the TA is entitled to infer that PCCWHKTC does not satisfy the requirements above and in that event, the TA may by notice inform the Intermediary and the Intermediary shall until further notice by the TA cease to perform its duties under this paragraph 5.7 upon receiving written notification from the Authorised Representative of the TA. The TA will copy such notification to PCCWHKTC. In case CP makes a payment without attaching any payment slip, the payment will be allocated on first-in-first-out basis, meaning that the record of merged column for USC Collection Cycle 1-6 will be applied first then Cycles 7, 8 and so on with exception to paragraph 7.9 after the closing of USC Collection Cycle 1-2113. Should the outstanding amount be subsequently recovered by PCCWHKTC, any payment allocated on first-in-first-out basis will not be reversed, but the Intermediary will treat the amount as a credit item for subsequent cycles. The Intermediary will process checks for settlement of overdue payments received during the entire period of this Agreement. The Intermediary will transfer amount collected in accordance with the schedule as set out in paragraph 4.3 above. 5.8 The Intermediary will generate Monthly Statement (Attachment 11) to the TA and PCCWHKTC up to 31 December 2008 2003 by mail and electronic mail on the 5th Business Day of the following month. 5.9 The respective USC Collection Cycle will be considered complete once the Second Reminder Notice for the relevant batch expires, that is on the 30th calendar day after the issuance of the First Reminder Notice. 5.10 Five types of adjustments may be required during the entire contracted period: 5.10.1 Traffic adjustment/data omission - For CPs who have failed to report traffic punctually, the Intermediary will estimate their traffic volume based on previous month’s data plus a factor of 10% per month growth rate. The TA will submit the adjusted traffic to the Intermediary on the subsequent USC Collection Cycle’s Notification Day. The adjustment will then be reflected on the Invoice issued on the Invoice Issuance Day. All refund/recollection will be arranged through an adjustment in this USC Collection Cycle Invoice for the corresponding CP. If adjustments happen after the last USC Collection Cycle, the TA will consolidate adjustment requests and deliver to the Intermediary on or before the 10th day of each month. Submission date will be treated as the 10th even the adjustment data arrive the Intermediary on an earlier date. If the TA receives auditor certificate from a particular CP before the scheduled submission date of the traffic adjustment to the Intermediary, traffic adjustment will not be processed and any adjustment will be based on auditor certificate. The Intermediary will issue separate Invoice on the traffic adjustment to CPs at no extra cost if the traffic adjustment is sent to the Intermediary before the submission of auditor's certificate by the CP. Traffic adjustment/data omission do not apply to USC Collection Cycle 1-6 data. If the credit adjustment is greater than the billed amount charged under the Invoice, refund of the difference will be sent to the CP. Should the total amount of refund be greater than the current available balance in the Settlement Account, the Intermediary will serve a written notice to PCCWHKTC requesting transfer of adequate amount to the Settlement Account. The Intermediary may only execute the refund within 2 Business Days upon receipt of sufficient amount from PCCWHKTC and will not be responsible for any delay due to insufficient available balance in the Settlement Account to cover the batch of refund. If the credit adjustment is less than the billed amount charged under the Invoice, the difference will be collected from the CP on the coming USC Collection Cycle. No interest will be accrued for any credit adjustment amount. Interest at Prime Rate Plus 2% will be applied to the debit adjustment amount calculated from the day after the corresponding Payment Due Date up to the Invoice Issuance Day immediately after the receipt of adjusted traffic information from the TA. The difference and accrued interest will be collected from the CP on the coming USC Collection Cycle. Prime Rate is fixed as at the date immediately after the corresponding Payment Due Date. 5.10.2 Provisional USC adjustment – Adjustment has to be made when there is any refund or collection arising from the difference between the provisional and actual USC. This adjustment will be submitted in batches. The batches can be submitted at any time but in any event 60 Business Days before the expiry of this Agreement. PCCWHKTC will be responsible for additional costs incurred in accordance with Schedule 3. Adjustment is not applicable to USC Collection Cycle 1-21 13 after the TA’s notification of closure as described in paragraph 7.9. If the refund is greater than the current available balance in the Settlement Account, the Intermediary will serve a written notice to PCCWHKTC requesting transfer of adequate amount to the Settlement Account. The Intermediary may only execute the refund within 2 Business Days upon receipt of sufficient amount from PCCWHKTC and will not be responsible for any delay due to insufficient available balance in the Settlement Account to cover the batch of refund. No interest will be accrued for either refund or collection of shortfall7. 5.10.3.1 Auditor Certificate adjustment (normal) – Adjustment has to be made when discrepancy arises due to difference between annual auditor certificate of CPs and traffic reported. This adjustment will be submitted in batches. The batches can be submitted any time but 60 Business Days before the expiry of this Agreement. PCCWHKTC will be responsible for additional costs incurred in accordance with Schedule 3. Adjustment is not applicable to USC Collection Cycle 1-21 after the TA’s notification of closure as described in paragraph 7.9. If the refund is greater than the current available balance in the Settlement Account, the Intermediary will serve a written notice to PCCWHKTC requesting transfer of adequate amount to the Settlement Account. The Intermediary may only execute the refund within 2 Business Days upon receipt of sufficient amount from PCCWHKTC and will not be responsible for any delay due to insufficient available balance in the Settlement Account to cover the batch of refund. No interest will be accrued for either refund or collection of shortfall. 5.10.3.2 Auditor Certificate adjustment (false) – Adjustment has to be made when the TA discovers from an auditor certificate that a CP who did not report, or reported zero traffic, to the TA actually have traffic recorded during the period subject to auditing. The adjustment amount is subject to overdue interest of Prime Rate plus 2% calculated based on the start and end dates (both days inclusive) provided by the TA. Prime Rate is fixed as at the date immediately after the Payment Due Date of the first USC Collection Cycle for that particular CP. Since other collection arrangements are identical to paragraph 5.10.3.1 above, collection effort described in this paragraph will be consolidated to the of Auditor Certificate adjustment (normal). For the avoidance of doubt, submission of raw adjustment data will not be mingled with regular USC Collection data. For those Invoices in relation to CPs who did not report or reported zero traffic to the TA during the respective USC Collection Cycles but subsequently verified to have traffic recorded will be subject to Intermediary’s collection service charge set out in Pricing Schedule.

After Payment Due Date. 5.1 USC payment by a CP which is received by the Intermediary on Payment Due Date, but after Banking Hours on Business DaysDays or after noon on Saturdays, will be considered as overdue payment and subject to overdue interest. 5.2 The Intermediary will receive the Net Outstanding Amount and overdue interest from the CPs. PCCWHKTC will be the recipient of both the Net Outstanding Amount and the overdue interest. 5.3 The Intermediary will issue Overdue/Partial Payment Report (Attachment 8) to the TA on Tuesdays of every week via mail and electronic mail highlighting overdue status for the previous week(s). Report indicating “Nil” will be provided should no CP have overdue payments. The Overdue/Partial Payment Report will show the CPs who have not settled their outstanding amounts. For the avoidance of doubt, overdue amounts for different cycles of USC Collection Cycles will Cycle 1-6 remain to be shown separately by USC Collection Cycle in the Overdue/Partial Payment Report. 5.4 The Intermediary will issue the Second Reminder Notice (Attachment 9) on the 16th calendar day after the Payment Due Date by mail and facsimile to CPs who have not settled the Total Overdue Amount set out in the First Reminder Notice. Additional overdue interest for the second reminder period will be calculated based on 15 calendar day period on the Net Outstanding Amount. The Total Overdue Amount shown on the Second Reminder Notice should equal to the sum of the Net Outstanding Amount, the overdue interest for the first reminder period and the overdue interest for the second reminder period. Simple annual interest rate of Prime Rate plus 2% will be applied to the Net Outstanding Amount. 5.5 Copies of the Second Reminder Notices issued to CPs, who have outstanding payment as of the 31st calendar day after the Payment Due Date, will be copied and sent to the TA by post within 3 Business Days. The TA will then deliver the appropriate Second Reminder Notices and information (i.e. contact name, fax number, telephone number and mailing address of respective CP) to PCCWHKTC for its private recovery actions within a reasonable time subject to Clause 4.5 of this Agreement. 5.6 Thirty calendar days after the Payment Due Date, the Intermediary has no responsibility to accumulate, track and report any additional overdue interest after the end of respective USC Collection Cycle. PCCWHKTC shall be responsible for the recovery effort of any Net Outstanding Amount and overdue interest. 5.7 Authorised Authorized Representatives from PCCWHKTC will update the Intermediary on the amount recovered with a copy to the TA (Attachment 10). Intermediary will then make the necessary adjustments on subsequent Invoices, Monthly Statements and Overdue/Partial Payment Report. PCCWHKTC should breakdown the repayment information by CPs and USC Collection Cycle (applicable to all USC Collection Cycles). The recovered amount should include amount recovered by PCCWHKTC and interest charged by PCCWHKTC. PCCWHKTC shall assure that- (a) the information provided to the Intermediary is true and accurate; (b) those documents related to its private recovery of USC, such as correspondences and cheques, shall be maintained up to the seventh anniversary of the expiry of the Agreement; and (c) documents mentioned in (b) will be delivered to the TA as per his request. Without prejudice to the generality of the power conferred upon the TA by the Ordinance the TA may request the information relating to this paragraph 5.7 that the TA may reasonably require to ensure PCCWHKTC’s compliance with the provisions hereof. If PCCWHKTC refuses or fails to supply the information reasonably request under this Clause the TA is entitled to infer that PCCWHKTC does not satisfy the requirements above and in that event, the TA may by notice inform the Intermediary and the Intermediary shall until further notice by the TA cease to perform its duties under this paragraph 5.7 upon receiving written notification from the Authorised Authorized Representative of the TA. The TA will copy such notification to PCCWHKTC. In case CP makes a payment without attaching any payment slip, the payment will be allocated on first-in-first-out basis, meaning that the record of merged column for USC Collection Cycle 1-6 will be applied first then Cycles 7, 8 and so on with exception to paragraph 7.9 8.10 after the closing of USC Collection Cycle 1-216. Should the outstanding amount be subsequently recovered by PCCWHKTC, any payment allocated on first-in-first-out basis will not be reversed, but the Intermediary will treat the amount as a credit item for subsequent cycles. The Intermediary will process checks for settlement of overdue payments received during the entire period of this Agreement. The Intermediary will transfer amount collected in accordance with the schedule as set out in paragraph 4.3 above. 5.8 The Intermediary will generate Monthly Statement (Attachment 11) to the TA and PCCWHKTC up to 31 December 2008 2002 by mail and electronic mail on the 5th Business Day of the following month. 5.9 The respective USC Collection Cycle will be considered complete once the Second Reminder Notice for the relevant batch expires, that is on the 30th calendar day after the issuance of the First Reminder Notice. 5.10 Five types of adjustments may be required during the entire contracted period: 5.10.1 Traffic adjustment/data omission - For CPs who have failed to report traffic punctually, the Intermediary will estimate their traffic volume based on previous month’s data plus a factor of 10% per month growth rate. The TA will submit the adjusted traffic to the Intermediary on the subsequent USC Collection Cycle’s Notification Day. The adjustment will then be reflected on the Invoice issued on the Invoice Issuance Day. All refund/recollection will be arranged through an adjustment in this USC Collection Cycle Invoice for the corresponding CP. If adjustments happen after the last USC Collection Cycle, the TA will consolidate adjustment requests and deliver to the Intermediary on or before the 10th day of each month. Submission date will be treated as the 10th even the adjustment data arrive the Intermediary on an earlier date. If the TA receives auditor certificate from a particular CP before the scheduled submission date of the traffic adjustment to the Intermediary, traffic adjustment will not be processed and any adjustment will be based on auditor certificate. The Intermediary will issue separate Invoice on the traffic adjustment to CPs at no extra cost if the traffic adjustment is sent to the Intermediary before the submission of auditor's certificate by the CP. Traffic adjustment/data omission do not apply to USC Collection Cycle 1-6 data. If the credit adjustment is greater than the billed amount charged under the Invoice, refund of the difference will be sent to the CP. Should the total amount of refund be greater than the current available balance in the Settlement Account, the Intermediary will serve a written notice to PCCWHKTC requesting transfer of adequate amount to the Settlement Account. The Intermediary may only execute the refund within 2 Business Days upon receipt of sufficient amount from PCCWHKTC and will not be responsible for any delay due to insufficient available balance in the Settlement Account to cover the batch of refund. If the credit adjustment is less than the billed amount charged under the Invoice, the difference will be collected from the CP on the coming USC Collection Cycle. No interest will be accrued for any credit adjustment amount. Interest at Prime Rate Plus 2% will be applied to the debit adjustment amount calculated from the day after the corresponding Payment Due Date up to the Invoice Issuance Day immediately after the receipt of adjusted traffic information from the TA. The difference and accrued interest will be collected from the CP on the coming USC Collection Cycle. Prime Rate is fixed as at the date immediately after the corresponding Payment Due Date. 5.10.2 Provisional USC adjustment – Adjustment has to be made when there is any refund or collection arising from the difference between the provisional and actual USC. This adjustment will be submitted in batches. The batches can be submitted at any time but in any event 60 Business Days before the expiry of this Agreement. PCCWHKTC will be responsible for additional costs incurred in accordance with Schedule 3. Adjustment is not applicable to USC Collection Cycle 1-21 6 after the TA’s notification of closure as described in paragraph 7.9. If the refund is greater than the current available balance in the Settlement Account, the Intermediary will serve a written notice to PCCWHKTC requesting transfer of adequate amount to the Settlement Account. The Intermediary may only execute the refund within 2 Business Days upon receipt of sufficient amount from PCCWHKTC and will not be responsible for any delay due to insufficient available balance in the Settlement Account to cover the batch of refund. No interest will be accrued for either refund or collection of shortfall8. 5.10.3.1 Auditor Certificate adjustment (normal) – Adjustment has to be made when discrepancy arises due to difference between annual auditor certificate of CPs and traffic reported. This adjustment will be submitted in batches. The batches can be submitted any time but 60 Business Days before the expiry of this Agreement. PCCWHKTC will be responsible for additional costs incurred in accordance with Schedule 3. Adjustment is not applicable to USC Collection Cycle 1-21 after the TA’s notification of closure as described in paragraph 7.9. If the refund is greater than the current available balance in the Settlement Account, the Intermediary will serve a written notice to PCCWHKTC requesting transfer of adequate amount to the Settlement Account. The Intermediary may only execute the refund within 2 Business Days upon receipt of sufficient amount from PCCWHKTC and will not be responsible for any delay due to insufficient available balance in the Settlement Account to cover the batch of refund. No interest will be accrued for either refund or collection of shortfall. 5.10.3.2 Auditor Certificate adjustment (false) – Adjustment has to be made when the TA discovers from an auditor certificate that a CP who did not report, or reported zero traffic, to the TA actually have traffic recorded during the period subject to auditing. The adjustment amount is subject to overdue interest of Prime Rate plus 2% calculated based on the start and end dates (both days inclusive) provided by the TA. Prime Rate is fixed as at the date immediately after the Payment Due Date of the first USC Collection Cycle for that particular CP. Since other collection arrangements are identical to paragraph 5.10.3.1 above, collection effort described in this paragraph will be consolidated to the of Auditor Certificate adjustment (normal). For the avoidance of doubt, submission of raw adjustment data will not be mingled with regular USC Collection data. For those Invoices in relation to CPs who did not report or reported zero traffic to the TA during the respective USC Collection Cycles but subsequently verified to have traffic recorded will be subject to Intermediary’s collection service charge set out in Pricing Schedule.