Common use of Capital Reduction Clause in Contracts

Capital Reduction. 5.1 Each of Marconi and RTS shall: 5.1.1 as soon as reasonably practicable after the date of this agreement but, in any event, not later than 20th December, 2002, sign a shareholders' written resolution of Ultramast to authorise Ultramast, in accordance with sections 135 to 141 of the Companies ▇▇▇ ▇▇▇▇, to: (a) reduce the amount standing to the credit of its share premium account for the purpose of creating a reserve against which to write off the accumulated deficit on the profit and loss reserve on its balance sheet; (b) reduce its share capital and share premium account through the cancellation of the Marconi Reduction Shares and, subject to sub-clause 5.5, the RTS Reduction Shares; and (c) repay to Marconi out of Ultramast's share capital and its share premium account the MARCONI REDUCTION AMOUNT and repay, subject to sub-clause 5.5 to RTS out of Ultramast's share capital and its share premium account the RTS Reduction Amount (the "CAPITAL REDUCTION"); and