Common use of Reduction of Losses Clause in Contracts

Reduction of Losses. The amount of any Losses incurred by an Indemnified Party shall be reduced by: (i) the net after-tax amount such Indemnified Party actually recovers from any insurer for such Losses (less the out-of-pocket costs of recovering such amounts and net of any increases to premiums resulting from the receipt of such payments), including any amount recovered under the R&W Policy; and (ii) any net Tax benefit actually received by an Indemnified Party as a result of the matters giving rise to the indemnity Claim, provided that such Tax benefit is received in the year that the relevant Losses are incurred or a prior year.