Common use of Reduction of Liability Clause in Contracts

Reduction of Liability. In the event that any member of the Merck Group makes a payment to any Medco Indemnitee hereunder, and the Liabilities on account of which such payment was made are subsequently diminished or reduced, either directly or through a third-party recovery, Medco will promptly repay (or will procure a Medco Indemnitee to promptly repay) such member of the Merck Group the amount by which the payment made by such member of the Merck Group exceeds the actual cost of the associated indemnified Liabilities.