Common use of HSR Agreement Clause in Contracts

HSR Agreement. In 2015, as a result of the HSR programme being extended to the third quarter of 2018 and the Company and the Government reaching agreement for revising the estimated project cost to HK$84.42 billion (the “Revised Cost Estimate”), the Government and the Company entered into an agreement (the “HSR Agreement”) relating to the further funding and completion of the HSR (and which made certain changes to the HSR Entrustment Agreement) which was subsequently approved by the Company’s independent shareholders at an extraordinary general meeting, and the Legislative Council approved the Government’s additional funding obligations, during 2016. Pursuant to the HSR Agreement: (i) The Government will bear and finance the project cost up to HK$84.42 billion, which includes an increase in the project cost by the amount of HK$19.42 billion being the “Current Cost Overrun”; (ii) The Company will, if the project cost exceeds HK$84.42 billion, bear and finance the portion of the project cost which exceeds that sum (if any) (the “Further Cost Overrun”) except for certain agreed excluded costs (namely, additional costs arising from changes in law, force majeure events or any suspension of construction contracts specified in the HSR Agreement); (iii) The Company would pay a special dividend in cash of HK$4.40 in aggregate per share in two tranches in 2016 and 2017;

HSR Agreement. In 2015, as a result of the HSR programme being extended to the third quarter of 2018 and the Company and the Government reaching agreement for revising the estimated estimate project cost to HK$84.42 billion (the “Revised Cost Estimate”), the Government and the Company entered into an agreement (the “HSR Agreement”) relating to the further funding and completion of the HSR (and which made certain changes to the HSR Entrustment Agreement) which was subsequently approved by the Company’s independent shareholders at an extraordinary general meeting, and the Legislative Council approved the Government’s additional funding obligations, during 2016. Pursuant to the HSR Agreement: (i) The Government will bear and finance the project cost up to HK$84.42 billion, which includes an increase in the project cost by the amount of HK$19.42 billion being the “Current Cost Overrun”; (ii) The Company will, if the project cost exceeds HK$84.42 billion, bear and finance the portion of the project cost which exceeds that sum (if any) (the “Further Cost Overrun”) except for certain agreed excluded costs (namely, additional costs arising from changes in law, force majeure events or any suspension of construction contracts specified in the HSR Agreement); (iii) The Company would pay a special dividend in cash of HK$4.40 in aggregate per share in two tranches in 2016 and 2017;

HSR Agreement. In 2015, as a result of the HSR programme being extended to the third quarter of 2018 and the Company and the Government reaching agreement for revising the estimated project cost to HK$84.42 billion (the “Revised Cost Estimate”), the Government and the Company entered into an agreement (the “HSR Agreement”) relating to the further funding and completion of the HSR (and which made certain changes to the HSR Entrustment Agreement) which was subsequently approved by the Company’s independent shareholders at an extraordinary general meeting, and the Legislative Council approved the Government’s additional funding obligations, during 2016. Pursuant to the HSR Agreement: (i) The Government will bear and finance the project cost up to HK$84.42 billion, which includes an increase in the project cost by the amount of HK$19.42 billion being the “Current Cost Overrun”; (ii) The Company will, if the project cost exceeds HK$84.42 billion, bear and finance the portion of the project cost which exceeds that sum (if any) (the “Further Cost Overrun”) except for certain agreed excluded costs (namely, additional costs arising from changes in law, force majeure events or any suspension of construction contracts specified in the HSR Agreement); (iii) The Company would pay a special dividend in cash of HK$4.40 in aggregate per share in two tranches in 2016 and 2017; (iv) The HSR Project Management Fee increases from HK$4.59 billion to HK$6.34 billion. Consequently, the Liability Cap increases from up to HK$4.94 billion to up to HK$6.69 billion; and