Common use of Shared Excess Clause in Contracts

Shared Excess. If Directrix owes any Shared Excess under Master Lease Article 15, Directrix shall be obligated to pay the first $50,000 of such Shared Excess directly to Kingston (or, if Playboy has paid Directrix' share of the Shared Excess to Kingston, to Playboy as reimbursement therefore). If Directrix owes Shared Excess in excess of $50,000, Playboy shall pay such excess on Directrix' behalf and Playboy shall recover such excess by offsetting up to 10% of the Service Fees (as such term is defined under the Services Agreement) owed in any month by Playboy to Directrix until Playboy has recouped the amount of the Shared Excess paid by Playboy on Directrix' behalf. If Directrix fails to pay its share of the Shared Excess as provided for in the preceding two sentences, such failure may be treated by Playboy as an event of default under this Sublease and the Services Agreement and Playboy will have all of its rights and remedies as provided for under this Sublease and the Services Agreement.