Common use of ROYALTIES OR SIMILAR PAYMENTS Clause in Contracts

ROYALTIES OR SIMILAR PAYMENTS. The Company may only make royalty or similar payments on the following terms and conditions: 10.1 that to the extent that the said royalty and/or similar payments exceed 5% of the Company's net annual sales, such excess shall not be payable except out of the Company which would otherwise be available for dividend; and 10.2 that in the event of the winding up of the Company the amount of any such excess accrued or accruing for payment but unpaid shall be subordinated to the claims of the unsecured creditors, including XXX, of the Company; PROVIDED ALWAYS that the provisions of this Clause shall not apply to bona fide --------------- third party arms length transactions.

ROYALTIES OR SIMILAR PAYMENTS. The Company may only make royalty or similar payments on the following terms and conditions: 10.1 that to the extent that the said royalty and/or similar payments exceed 5% of -of the Company's ’s net annual sales, such excess shall not be payable except out of profits (including accumulated profits) of the Company which would otherwise be available for dividend; and 10.2 that in the event of the winding up of the Company the amount of any such excess accrued or accruing for payment but unpaid shall be subordinated to the claims of the unsecured creditors, including XXXIXX, of the Company; PROVIDED ALWAYS that the provisions of this Clause shall not apply to bona fide --------------- third party arms length transactions.

ROYALTIES OR SIMILAR PAYMENTS. The Company may only make royalty or similar payments on the following terms and conditions: conditions:- 10.1 that to the extent that the said royalty and/or similar payments exceed 5% of the Company's net annual sales, such excess shall not be payable except out of profits of the Company which would otherwise be available for dividend; and and 10.2 that in the event of the winding up of the Company the amount of any such excess accrued or accruing for payment but unpaid shall be subordinated to the claims of the unsecured creditors, including XXX, of the Company; PROVIDED ALWAYS that the provisions of this Clause shall not apply to --------------- bona fide --------------- third party arms length transactions.

ROYALTIES OR SIMILAR PAYMENTS. The Company may only make royalty or similar payments on the following terms and conditions: 10.1 that to the extent that the said royalty and/or similar payments exceed 5% of the Company's net annual sales, such excess shall not be payable except out of profits of the Company which would otherwise be available for dividend; and 10.2 that in the event of the winding up of the Company the amount of any such excess accrued or accruing for payment but unpaid shall be subordinated to the claims of the unsecured creditors, including XXX, of the Company; PROVIDED ALWAYS that the provisions of this Clause shall not apply to bona fide --------------- third party arms arm's length transactions.