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b. The revenues generated from the tax provided for in HRS §239-5(a) in excess of the four percent rate established therein shall be paid by the public utility directly to each county eligible to receive a share of the tax revenues based upon the proportion of HRS §239-5(a) gross income from its public utility business attributable to each such county, based on the allocation made in the public utility's filings with the State of Hawaii, provided that if the gross income from the public utility business attributable to each county is not so allocated in the public utility's State filings, then the gross Income from the public utility business shall be equitably allocated to each county. The relative number of access lines in each county shall be deemed an acceptable basis of equitable allocation for telecommunication companies. c If a county (i) does not provide or if a county stops providing by ordinance for a real property tax exemption for real property used by a public utility in Its public utility business and owned by the public utility (or leased to it by a lease under which the publtc utility is regwred to pay the taxes upon the property), or (ti) denies the exemption to the public utility (but excluding a denial based upon a dispute as to the ownership, lease, or use of a specific parcel of real property), then that county shall receive no Public Service Company Tax revenues from the public utility for any period during which the county has no such ordinance or denies the exemption to the public utility (but excluding a demal based upon a dispute as to the ownership, lease, or use of a specific parcel of real property), and the money that would have otherwise gone to that county as Its shaze of the PSC tax revenues in excess of the four per cent rate shall be retained by the public utility and shall not be paid or owed to either the State or the respective county. d. The legislation referred to above shall take effect July 1, 2001 Commencing with the July 2001 installment of the remaining quarterly or monthly installments of the tax upon gross income which has been levied and assessed for the calendaz yeaz 2001 under section 239-5(a), that portion of each such installment that is descnbed in Section 3 of Exhibit A as the tax in excess of the rate of four per cent that is paid to a county if the county provides for a real property tax exemption for real property used by a public utility in its public utility business, shall be paid to the respective county director of finance as provided m Section 3 of Exhibit A. Provided that for the period July 2001 through December 2001, if a public utility is not regwred to pay to a particulaz county director of finance tax in excess of the rate of four per cent, as provided in Section 3 of Exliibit A, the publtc utility shall not be liable to the State or respective county for such portion of the installments of the tax imposed m excess of the rate of four per cent under section 239-5(a) for the period July 2001 through December 2001 6 Laws and Ordinances Shall Be Made Consistent With Tlus Agreement Legislation to make the laws of the State of Hawaii and, tf necessary, the laws and ordinances of each county consistent with the terms of this Agreement shall be enacted 7 Suonort of and Co~eration on Enabling Legislation. Thus Agreement is contingent upon the enactment of enabling legislation substantially in the form of Exhibit A hereto, and the parties agree to support such legislation and to cooperate to actuevtng such legislation, including providing testimony to support of the legislation. The Parties other than the STATE disagree with the substance and the form of the second sentence of AGREEMENT PAGE3 IMANHONO 339853 I