Common use of AUDIT BY LICENSOR Clause in Contracts

AUDIT BY LICENSOR. LICENSOR, upon giving to LICENSEE at least fifteen (15) days advance written notice or its intention so to do, shall have the right to audit all books and records which LICENSEE is required to maintain pursuant to Paragraph 8 above, such audit shall not cover any period in excess of three (3) years prior to the date of the audit, and in the event any such audit shall disclose LICENSEE has understated Net Shipments or underpaid royalties for any reporting period, LICENSEE shall forthwith and upon written demand pay to LICENSOR the amount, if any, by which the actual royalties exceed royalties paid, In the event that LICENSEE has understated Net Shipments or under paid royalties in excess of five percent (5%) of said Net Shipments, LICENSEE shall forthwith and upon written demand also pay to LICENSOR all costs, fees and expenses incurred by LICENSOR in conducting such audit. Should such audit disclose that the royalties paid exceed the actual royalties, LICENSEE shall be entitled to a credit equal to such excess royalties against the royalties next accruing under this Agreement.

AUDIT BY LICENSOR. LICENSORAt all times during the existence of this Agreement and for twelve (12) months thereafter, Licensor, upon giving to LICENSEE Licensee at least fifteen ten (1510) days advance written notice or of its intention so to do, shall have the right to inspect or audit all books and records which LICENSEE Licensee is required to maintain pursuant to Paragraph 8 Article G.P. 2 above, such audit shall not cover any period in excess of three (3) years prior to the date of the audit, and in the event . If any such audit shall disclose LICENSEE that Licensee has understated Net Shipments or underpaid royalties for any reporting period, LICENSEE Licensee, upon written demand, shall forthwith and upon written demand pay to LICENSOR the amount, if any, by which the actual royalties owing exceed royalties paid, with additionally, interest at 18% from such time as said amounts were initially due. In the event that LICENSEE Licensee has understated Net Shipments in excess of 2% or under paid underpaid royalties in excess of five percent (5%) 2% of said Net Shipmentsthe amount due for any Contract Year, LICENSEE Licensee shall forthwith and upon written demand also pay to LICENSOR all costs, fees and expenses incurred by LICENSOR Licensor in conducting such audit, including, without limitation, reasonable travel expenses. Should such audit disclose that the royalties paid exceed the actual royaltiesroyalties due, LICENSEE Licensee shall be entitled to a receive credit equal to such excess royalties against the same royalties next accruing under this accruing, except that when such audit is conducted at the expiration of the Agreement, any excess royalty payments revealed by such audit will be remitted to Licensee within thirty (30) days thereafter.

AUDIT BY LICENSOR. LICENSORAt all times during the existence of this Agreement and for twelve (12) months thereafter, Licensor, upon giving to LICENSEE Licensee at least fifteen ten (1510) days advance written notice or of its intention so to do, shall have the right to inspect or audit all books and records which LICENSEE Licensee is required to maintain pursuant to Paragraph 8 Article G.P. 2 above, such audit shall not cover any period in excess of three (3) years prior to the date of the audit, and in the event . If any such audit shall disclose LICENSEE that Licensee has understated Net Shipments or underpaid royalties for any reporting period, LICENSEE Licensee, upon written demand, shall forthwith and upon written demand pay to LICENSOR the amount, if any, by which the actual royalties owing exceed royalties paid, with additionally, interest at 18% per annum from such time as said amounts were initially due. In the event that LICENSEE Licensee has understated Net Shipments in excess of 2% or under paid underpaid royalties in excess of five percent (5%) 2% of said Net Shipmentsthe amount due for any Contract Year, LICENSEE Licensee shall forthwith and upon written demand also pay to LICENSOR all costs, fees and expenses incurred by LICENSOR Licensor in conducting such audit, including, without limitation, reasonable travel expenses. Should such audit disclose that the royalties paid exceed the actual royaltiesroyalties due, LICENSEE Licensee shall be entitled to a receive credit equal to such excess royalties against the same royalties next accruing under this accruing, except that when such audit is conducted at the expiration of the Agreement, any excess royalty payments revealed by such audit will be remitted to Licensee within thirty (30) days thereafter.