Common use of Bad Debts Clause in Contracts

Bad Debts. 15.1 The Parties acknowledge and agree that the Agency Fee payable from time to time under this agreement has been structured based on historical levels and historical rates of enforcement and collection of bad debts within the DiverseyLever Business. 15.2 Where the level of bad debts (expressed as a percentage of Gross Sale Value) experienced by JDI and the JDI Affiliates in relation to sales of the Products in any given calendar year during the term of this agreement is at least twice as high as the Historical Benchmark, the excess amount of such bad debts over and above double the level of the Historical Benchmark shall be split as to: (i) 50% to JDI; and (ii) 50% to the Unilever Parties, and any necessary balancing payment shall be made by way of an increase in the Agency Fee by the relevant Parties to reflect such allocation within 20 Business Days of the date on which the level of bad debts (so expressed) is calculated for such calendar year.