Right to Set. Off DISTRIBUTOR shall be entitled to deduct up to fifty percent (50%) from the royalties payable to SUPPLIER under this Agreement and apply such deductions to any amounts that may be owed by SUPPLIER to DISTIBUTOR under this Agreement, whether the amounts owed are the result of a breach of this Agreement, or for a liability to a third party DISTRIBUTOR has paid on behalf of SUPPLIER. DISTRIBUTOR will notify SUPPLIER of such deduction in the sales report for the period in which such deduction is made. In the event DISTRIBUTOR receives payment for any liability for which it has deducted amounts from SUPLLIER’S royalty, DISTRIBUTOR shall credit SUPPLIER’S account.
Appears in 3 contracts
Sources: Distributor Agreement, Rights Managed Distributor Agreement, Distributor Agreement