Former Sun editor Rebekah Brooks agreed a £4,000 payment to a member of the armed forces for a photo of Prince William in a bikini, a court has heard.
The soldier wanted the money in cash because a colleague who had the picture was "very concerned about the snap ending up in the Sun", the jury heard.
Mrs Brooks, who was Sun editor at the time, denies conspiracy to commit misconduct in public office by paying public officials for information.
She is on trial at the Old Bailey.
Mrs Brooks, former News International chief executive, also denies conspiracy to phone hack and perverting the course of justice.
'Bond girl'Prince William had been at a James Bond party at the Royal Military Academy at Sandhurst, Berkshire, and was wearing a bikini and an open Hawaiian shirt when the photograph was taken.
The court was shown a series of emails from 2006 in which a Sun reporter asked Mrs Brooks to agree to the payment because it would "open the door to future exclusives".
She sent a one-word response: "OK".
To avoid detection, the money was allegedly paid to a branch of Thomas Cook in Slough, Berkshire, in June 2006, where the prosecution claims it was collected by the wife of the soldier, who was based at Sandhurst.
The paper printed the story in September of that year with a "mock-up" picture of Prince William's head on a picture of a man wearing a bikini.
The Sun journalist and soldier cannot be named for legal reasons.
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