Common use of Reduction of Liability Clause in Contracts

Reduction of Liability. In the event that any member of the Medco Group makes a payment to any Merck 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 (other than as a result of a recovery under a Merck Insurance Policy, unless such recovery is pursuant to the Credit Support Insurance Coverage, if any), Merck will promptly repay (or will procure the relevant Merck Indemnitee promptly to repay) such member of the Medco Group the amount by which the payment made by such member of the Medco Group exceeds the actual cost of the associated indemnified Liabilities.