TNAG-1078-FCO40-1328-Policy-of-the-Hong-Kong-Government-on-television-services-1981 — Page 38

The obligations of Rediffusion and/or RHK

il be conditional upon Rediffusion obtaining any ecessary approvals under S.482 of the Income and

Corporation Taxes Act 1970 of the U.K.

5.

CC undertakes to procure a loan to RTV

secured over the assets of RTV to cover initial

working capital requirements of up to Hong Kong

$30.0 million.

6.

RHK agrees to enter into and to procure that

RTV enters into a loan agreement on or before the

date of settlement providing for a subordinated loan

of Hong Kong $70 million by RHK to RTV the principal

terms of which will be as follows:

(i)

(ii)

(iii)

the loan will not bear interest, fees

or commissions of any nature and will

only be subject to repayment in the

manner described below;

no repayment of the loan will take

place until the net after tax earnings

of RTV after the date of settlement

shall have aggregated not less than

Hong Kong $61.2 million as shown by

RTV's audited accounts for each

financial year;

after RTV's net after tax earnings

shall have aggregated Hong Kong $61.2

million as aforesaid the loan shall

commence to be repaid in the manner

described below;

(iv)

following the end of each year in which

RTV has net profits after tax (as shown

by its audited accounts for that year)

5

་

}