Basis of Reduction of Royalties Clause Samples

Basis of Reduction of Royalties. For so long as any share of Series A Preferred Stock issued to LUMINEX is outstanding and held by LUMINEX, the cash amount of Developed Kit Royalties and Testing Services Royalties above the Base Testing Services Royalty Amount and the Base Developed Kit Royalty Amount, as the case may be, shall be applied (i) first, to a reduction of accrued but unpaid dividends on the Series A Preferred Stock held by LUMINEX; and (ii) second, if all dividends are paid in full, then to a redemption of Series A Preferred Stock held by LUMINEX.