Common use of Ciba Clause in Contracts

Ciba. Geigy shall have the right to have, at its own expense, an independent certified public accountant, to which Tanox has no reasonable objection, inspect Tanox's books and records of account to determine and communicate to Ciba-Geigy only whether Tanox has properly charged Ciba-Geigy pursuant to Article 7 for supplies of Product(s) and for reimbursement of other Tanox costs pursuant to this Agreement and the amount of any discrepancy. Tanox agrees that such records are maintained or will be maintained in sufficient detail to permit such determination for a period of at least three (3) years from the date of their origin. If any review by the independent accountant of Ciba-Geigy of such books and records should indicate that the amount(s) paid by Ciba-Geigy has not been correct, the parties shall seek to mutually agree to settle any discrepancies raised by Ciba-Geigy's accountants and, if the parties mutually agree that the discrepancy is greater than one percent (1%) in Tanox's favor, then Tanox shall agree to reimburse Ciba-Geigy for the expense of such inspection.