Common use of Acknowledgement of Rights Clause in Contracts

Acknowledgement of Rights. The Company acknowledges that, with respect to any ICONs held by the Trust or the Trustee, if the Trustee fails to enforce its right under this Supplemental Indenture as the holder of the ICONs held as the assets of the Trust, any holder of Capital Securities may institute legal proceedings directly against the Company to enforce the Trustee's rights under this Supplemental Indenture without first instituting any legal proceedings against such Trustee or any other person or entity. Notwithstanding the foregoing, if a Event of Default has occurred and is continuing and such event is attributable to the failure of the Company to pay interest or principal on the ICONs on the date such interest or principal is otherwise payable (or in the case of redemption, on the redemption date), the Company acknowledges that a holder of Capital Securities issued by the Trust which is, or the Trustee of which is, the holder of such Capital Securities may directly institute a proceeding for enforcement of payment to such holder of the principal of or interest on the ICONs having a principal amount equal to the aggregate liquidation amount of the Capital Securities of such holder (a "Direct Action") on or after the respective due date specified of such holder on or after the respective due date specified in the ICONs. Notwithstanding any payments made to such holder of Capital Securities by the Company in connection with a Direct Action, the Company shall remain obligated to pay the principal of or interest on the ICONs held by the Trust or Trustee, and the Company shall be subrogated to the rights of the holder of such Capital Securities to the extent of any payments made by the Company to such holder in any Direct Action.

Acknowledgement of Rights. The Company acknowledges and the Guarantor acknowledge that, with respect to any ICONs Securities held by the a MediaOne Trust or the Trusteea trustee of such trust, if the Property Trustee of such Trust fails to enforce its right rights under this Supplemental Indenture as the holder of the ICONs series of Securities held as the assets of the such MediaOne Trust, any holder of Capital Preferred Securities may of such MediaOne Trust may, after a period of 30 days has elapsed from such holder's written request to such Property Trustee to enforce such rights, institute legal proceedings directly against the Company and the Guarantor to enforce the such Property Trustee's rights under this Supplemental Indenture without first instituting any legal proceedings against such Property Trustee or any other person or entity. Notwithstanding In addition, the Company and the Guarantor acknowledge that, notwithstanding the foregoing, if a Event an event of Default default under the Declararion of such MediaOne Trust has occurred and is continuing and such event is attributable to the failure of the Company or the Guarantor to pay interest or principal on the ICONs such Securities on the date such interest or principal is otherwise payable (or in the case of redemption, on the redemption date), the Company acknowledges that a holder of Capital Securities issued by the Trust which is, or the Trustee of which is, the then any holder of such Capital Preferred Securities may directly institute a proceeding for enforcement of payment to such holder of the principal of of, or interest on the ICONs having a on, an aggregate principal amount of such Securities equal to the aggregate liquidation amount of the Capital Preferred Securities of such holder (a "Direct Action") on or after the respective due date specified of such holder on or after the respective due date specified in the ICONs. Notwithstanding any payments made to such holder of Capital Securities by the Company in connection with a Direct Action, the Company shall remain obligated to pay the principal of or interest on the ICONs held by the Trust or Trustee, and the Company shall be subrogated to the rights of the holder of such Capital Securities to the extent of any payments made by the Company to such holder in any Direct ActionSecurities.