Common use of Allowances, Provisions or Reserves Clause in Contracts

Allowances, Provisions or Reserves. 5.1 Each Seller shall not be liable for any Claim to the extent that allowance, provision or reserve has been made in the Locked Box Accounts for the matter giving rise to such Claim. 5.2 If, at any time during the periods set out in paragraph 2: (a) the amount of any allowance, provision or reserve made in the Locked Box Accounts for a matter is in excess of the amount actually attributed to such matter; or (b) any asset is disposed of for an amount in excess of its value stated in the Locked Box Accounts; or (c) the value of any liability stated in the Locked Box Accounts is in excess of the amount actually required to settle or satisfy such liability, then each excess amount so determined shall be applied to reduce the liability of the Relevant Sellers under any Claims, provided that if any payment has been made by a Seller to the Purchaser in respect of a Claim prior to determination of the existence of such excess amount, the Purchaser shall immediately repay to the Relevant Seller(s) an amount equal to the lesser of: (i) the amount of such Claim paid by the Relevant Seller(s); or (ii) the amount of any excess then in existence. Any remaining excess amount and any further excess amounts that may arise shall be applied to reduce the Sellers’ liability under any subsequent Claims.