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1. The Licensee made an application to Ofcom dated 27 September 2005 pursuant to section 225 of the Act for a review of the financial terms on which its replacement licence granted under section 221 of the Act (the “Licence”) is held.

2. In accordance with section 228 of the Act, Ofcom hereby notifies the Licensee of its determination made under section 227 of the Act on 2 May 2006.

3. Ofcom determines, pursuant to sections 227(2)(a) and (3) of the Act, that the amount to be paid to Ofcom under the conditions of the Licence for the first calendar year falling wholly or partly within the period under review to begin after the application date (the cash bid amount) is £25,000.

4. Ofcom determines that: the percentage to be used for computing the (qualifying revenue) payments to be made to Ofcom under those conditions in respect of each accounting period under review to begin after the application date is 5 (five) per cent; and, the weighting for the purposes of calculating Additional Payments attached to digital terrestrial qualifying revenue is zero.

5. The modifications of the Licence that are required to give effect to the determination are set out below.

6. Condition 1(1) of Part 1 of The Schedule shall be amended as follows. In the definition of “Cash Bid”, the present definition shall be deleted and be replaced by the words “means the amount determined by Ofcom pursuant to section 227 of the Communications Act and accepted by the Licensee to be paid by him”. In the definition of “Relevant Percentage of Qualifying Revenue”, for the words “as has been specified by the Independent Television Commission pursuant to Section 19(1)(c) or Section 20(6)(b) of the 1990 Act (as the case may be) as amended by Ofcom”, there shall be substituted “as has been determined by Ofcom pursuant to section 227 of the Communications Act”.

7. The date by which the Licensee must notify Ofcom whether or not he accepts the determination and modifications to the Licence as set out in this Notification is Tuesday, 30 May 2006. Any acceptance must be in writing and be received by Ofcom no later than 5.00pm that day. Any acceptance must be addressed to Trevor Barnes, 4th Floor, Ofcom, Riverside House, 2a Southwark Bridge Road, London SE1 9HA. A failure to respond by this deadline shall mean that the Licence shall have effect as if the period for which it is to continue in force ends with the time specified in paragraph 8 below.

8. If the Licensee does not notify Ofcom whether or not he accepts the determination and modifications to the Licence as set out in this Notification by 30 May 2006, the Licence shall cease to have effect on 31 December 2014.

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