4.29 CMG receive from Radio Spectrum International the cost of employees they second to the company, a management fee equal to 11 per cent of the charges for the IT services and 70 per cent of the distributable profits. CMG have accepted a number of risks:
■ They have undertaken to lend Radio Spectrum International any working capital that is required. In addition they undertook to provide a minimum of £100,000 of resources and other inputs to the International Business Division in the first year of operation.
■ In any year that the IT Services Division of Radio Spectrum International makes a loss, CMG's management fee will be reduced to make it nominally profitable, and if this is not sufficient CMG is under the obligation to reduce charges for the staff they second to the company.
■ The parent company of CMG (UK) Ltd have provided an indemnity against all liability, loss, damage, cost and expenses in connection with any acts or omissions by Radio Spectrum International in the provision of IT services.