Direct Sourcing Sample Clauses
Direct Sourcing. In the event the relationship between the Parties is established on a direct sourcing basis, the Supplier hereby accepts and assumes all the rights and obligations assumed by the Client as set forth in the contract between the Client and the final customer, including any and all penalties and liabilities in which the Client may incur.
Direct Sourcing. During the Term, Licensee shall have the to opportunity to direct source Throwdown branded products other than the Licensed Products for sale within the Territory (“Direct Sourced Products”). In order for Licensee to purchase Direct Sourced Products, the Parties agree to the following procedure:
A. Licensee shall submit a Purchase Order for the Direct Sourced Products to Throwdown using a purchase order form in a format approved by the Parties.
B. Within two (2) business days of Throwdown’s receipt of the purchase order, Throwdown will advise Licensee of Throwdown’s approval or disapproval of the purchase order at Throwdown’s sole discretion.
C. Within five (5) business days following an approved purchase order, Licensee shall pay to Throwdown any required pre-production deposit of 35% of the approved purchase order, unless otherwise agreed to or and previously informed to licensee required by third party suppliers.
D. Within five (5) business days following Licensee’s receipt of notice from Throwdown that the Direct Sourced Products are ready for to ship, Licensee shall pay Throwdown the balance of the invoice for the purchase order plus shipping costs. Licensee shall be deemed to have received the Direct Sourced Products once shipped and Licensee shall bear all risk of loss for those Direct Sourced Products.
E. The Parties acknowledge and agree that if Licensee does not make a timely pre-production deposit following a receipt of an approved Purchase Order, the approved purchase order shall be null and void.
F. The Parties acknowledge and agree that if Licensee does not make a timely payment of the balance of the invoice plus shipping costs of an approved purchase order, Licensee shall still be responsible for the balance of the invoice and Throwdown shall have to option to terminate this Agreement immediately.