10.

On the 11th February 1981, my company re-submitted the

revised version of the said movie to the Board of Appeal for

review. This was witnessed by a letter from my company to the

said Authority dated the 11th February 1981 is now produced and

shown to me marked "NSY-12". A similar letter to the Board of

Censors dated the 19th February 1981 from my company was also

sent, a copy of which is now produced and shown to me marked

"NSY-13".

11.

On the 2nd April 1981, the Board of Appeal informed my

company that the Board of Appeal had decided to uphold the Censor's decision in banning the said revised version of the

said movie. A copy of the said letter is now produced and shown

to me marked "NSY-14",

12.

As a result of the banning of the said movie by the

said Authority, I was unable to distribute and/or to sell the

said movie for exhibition in Hong Kong. However, I was able to

sell the said movie for exhibition to Malaysia for HK$200,000.00.

It was moderately successful in Kuala Lumpar, Malaysia.

from Malaysia, I sold the said movie to Taiwan.

was also shown in North America,

13.

Apart

The said movie

After the said movie was completed, due to the news

value and the nature of the film, people in the trade had estimated that the said movie might be reasonably popular in the

box office. I have been in the movie business for over 15 years, according to my own estimate, I expected the said movie would sell for at least HK$6 million to HK$6.5 million in box office.

For a film with a box office as estimated, I could expect a net

profit of about HK$2 million to HK$2.5 million.

14.

I have been advised by my legal advisers that my reason

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