Common use of Reduction of Royalties Clause in Contracts

Reduction of Royalties. The EpiPen(R) Royalty Amount or the ASTECH Royalty Amount, as applicable, shall be reduced on a dollar-for-dollar basis (i) for the full amount of any claim for indemnity by ▇▇▇ which is not a claim related to Product Liabilities; (ii) for the full amount of any indemnity claim by ▇▇▇ which is related to Product Liabilities arising prior to July 1, 1997; and (iii) to the extent that the amount of any claim for indemnity by ▇▇▇ related to Product Liabilities arising on or after July 1, 1997, together with the accumulated amount of all previous such indemnity claims (including, without limitation, all costs of investigation and reasonable attorneys' fees), exceeds $350,000 per year. Such reduction shall be effected first by reducing any Royalty amounts currently due and payable, next by reducing any future Royalty payments, and finally by refunding to ▇▇▇ Royalty payments made since the inception of this Agreement. Any such reduction in the EpiPen(R) Royalty Amount or the ASTECH Royalty Amount, as applicable, shall be net of any amounts recovered by ▇▇▇ from Meridian, Allergopharma or Biotrine, as applicable, under the terms of the respective Schedule A Agreements.