Common use of Unit Royalties Clause in Contracts

Unit Royalties. Should NCT Hearing's equity interest in all of the issued and outstanding capital stock of Licensee (as determined on a fully diluted basis) fall below fifty and one tenth percent (50.1%), Licensee shall promptly thereafter commence payment to NCT Hearing of a royalty with respect to each Licensed Product (which term for purposes of royalty calculations shall not include prototypes or engineering samples furnished without consideration to unaffiliated customers) sold, leased, distributed or otherwise transferred by Licensee, any sublicensee permitted under Section 2.3 above or otherwise as follows: