August 2012. Parties: (1) APT (HK) (2) Launch Contractor 3 years from the Effective Date, save and except that APT (HK) is entitled to extend the expiry date of the term for another 2 years by serving a written notice to the Launch Contractor no later than 3 months before the expiry date of the Launch Services Contract. In the event that the Launch Period is confirmed during the aforesaid term, the Launch Services Contract shall remain valid until the services have been provided and all obligations of the parties under the Launch Services Contract are fulfilled. (1) The Launch Contractor shall provide the launch and associated services for the Satellite (the “Standard Services”) on the Launch Vehicle at the Launch Site within the Launch Period as the parties may agree within the term of the Launch Services Contract. APT (HK) is entitled to serve a written notice to the Launch Contractor within the term of the Launch Services Contract advising the Launch Period which shall be fixed by mutual agreement between the parties. Such notice shall be served no later than 18 months in advance of the first day of the Launch Period. (2) The Launch Contractor agrees to provide certain other launch-related services (the “Optional Services”), which includes without limitation, services relating to the launch vehicle and mission analysis, lease of international communication lines, medical services, transportation services and other auxiliary services as provided in the Launch Services Contract, upon the order of APT (HK). The items of the Optional Services to be ordered by APT (HK) shall be subject to the election of the satellite manufacturer. The price for the provision of the Standard Services is US$65,000,000.00 (equivalent to approximately HK$507,000,000.00), subject to the adjustment mentioned below (“Price Adjustment”). The total price for the provision of the Optional Services in aggregate shall be subject to a cap of US$2,000,000.00 (equivalent to approximately HK$15,600,000.00). The consideration for each of the Optional Services is pre-determined in the Launch Services Contract. If within 36 months from the Effective Date, the Launch Contractor offers similar launch services using Long March 3B enhanced version launch vehicle to any third parties but with better or more favourable prices as compared to that offered to APT (HK) in the Launch Services Contract, the Launch Contractor shall forthwith upon request of APT (HK) offer the same price to APT (HK) as that to the third parties by adjusting the price for the Standard Services downwards on a dollar-to-dollar basis for the difference between the price for the Standard Services and the price offered to such third party (the “Adjusted Price”). Any excessive amount between the price for the Standard Services of US$65,000,000.00 and the Adjusted Price shall be refunded by the Launch Contractor to APT (HK) within 1 month after the said adjustment. APT (HK) may choose any one of the following arrangements for payment of the price for the Standard Services: (1) by 10 installments of the specified portion of the price (subject to the Price Adjustment) in accordance with the payment schedule as provided in the Launch Services Contract, pursuant to which the first installment (being 5% of the price) is to be paid by APT (HK) to the Launch Contractor within 10 days after the confirmation of the Launch Period by the parties and the last installment (being the remaining 5% of the price) is to be paid by APT (HK) to the Launch Contractor on or before the date which is 2 months after the first day of the Launch Period or one month after the launch (whichever is later); or (2) by an one off payment of US$58,000,000.00 (equivalent to approximately HK$452,400,000.00) within 15 days after the Effective Date, in which case, such payment shall be deemed to be full payment of the price for the Standard Services. APT (HK) shall pay for the price for the Optional Services within 30 days after its receipt of a notification for payment from the Launch Contractor which shall only be given by the Launch Contractor after the receipt of the written confirmation from APT (HK). All payments made by APT (HK) to the Launch Contractor under the Launch Services Contract shall be made in US dollars by way of telegraphic transfer to the account of the Launch Contractor. Any default in payment, which is un-remedied within 30 days after notice of such failure to make payment has been given by the Launch Contractor, or the number of days which remains before the launch, whichever is less, shall be charged with an interest from the original due date until actual payment, at the rate of the then current 6-month rate for call deposits of US dollars as quoted by HSBC Bank, Hong Kong as prevailing on each date for which the default in payment continues plus 1% per annum on the default payment which remains unpaid. The Effective Date shall be the date when the following conditions have been fulfilled: (a) signing of the Launch Services Contract by both parties; and (b) the approval of the Launch Services Contract and the transactions contemplated hereunder by Independent Shareholders in a Shareholders’ meeting of the Company. If the above conditions are not fulfilled by 31 December 2012, unless otherwise extended by both parties, the Launch Services Contract shall be null and void and shall not have any effect and neither party shall have any right or obligation thereunder.
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