Application of Credits. A. MANUFACTURER reserves the right to apply any outstanding credits due to DISTRIBUTOR as a set-off against any debit due from DISTRIBUTOR to MANUFACTURER. B. In the event DISTRIBUTOR is entitled to a credit from MANUFACTURER hereunder, and the amount of such credit exceeds DISTRIBUTOR'S obligation to MANUFACTURER at the time, MANUFACTURER shall forthwith pay the amount of such excess to DISTRIBUTOR.
Appears in 2 contracts
Sources: Distributor Agreement (Micro Linear Corp /Ca/), Distributor Agreement (Micro Linear Corp /Ca/)