Common use of Subsequent Recovery Clause in Contracts

Subsequent Recovery. If any payment is made by the Shareholders or any of them in or towards the settlement of any claim under any of the representations and warranties contained in this Agreement and the Purchaser or the Company subsequently recovers or procures the recovery from a third party of an amount which is referable to that claim the Purchaser shall, or shall procure that the Company shall, forthwith repay or procure repayment to the relevant Shareholders of an amount equal to whichever is the lesser of: (a) the amount recovered from the third party after deduction of all reasonable expenses of recovery; and (b) the amount paid in or towards settlement of the claim.