Common use of Records Retention and Audit Rights Clause in Contracts

Records Retention and Audit Rights. Licensee, at its expense, will keep and maintain full, accurate, and complete books of account and other records in sufficient detail to the parties and their agents to properly ascertain the Royalty due hereunder and compliance with the other terms of this Agreement. University shall have the right to inspect and copy such books, records and documents (in whatever medium they exist) as well as all accounting procedures and practices of Licensee, its agents, and subcontractors to verify Licensee’s Royalty reports and payments and its compliance with the terms of this Agreement. Licensee shall make such items available for inspection during normal business hours at Licensee’s place of business. Licensee shall retain all such items during the term of this Agreement and for a period of three (3) years thereafter. Any items relating to a claim arising out of the performance of this Agreement shall be retained by Licensee, its agents, and subcontractors, it any, until the claim has been resolved. Licensee shall reimburse University for all its out-of-pocket expenses to inspect and audit such records if University, in accordance with the results of such inspection and audit, determines that Licensee has underpaid amounts owed to University by at least three percent (3%) or five hundred and no/100 dollars ($500.00) for any Quarter, whichever is smaller.

Records Retention and Audit Rights. Licensee, at its expense, will keep and maintain full, accurate, and complete books of account and other records in sufficient detail to the parties and their agents to properly ascertain the Royalty due hereunder and compliance with the other terms of this Agreement. University shall have the right to inspect and copy such books, records and documents (in whatever medium they exist) as well as all accounting procedures and practices of Licensee, its agents, and subcontractors to verify Licensee’s Royalty reports and payments and its compliance with the terms of this Agreement. Licensee shall make such items available for inspection during normal business hours at Licensee’s place of business. Licensee shall retain all such items during the term of this Agreement and for a period of three (3) years thereafter. Any items relating to a claim arising out of the performance of this Agreement shall be retained by Licensee, its agents, and subcontractors, it any, until the claim has been resolved. Licensee shall reimburse University for all its out-of-pocket expenses to inspect and audit such records if University, in accordance with the results of such inspection and audit, determines that Licensee has underpaid amounts owed to University by at least three percent precent (3%) or five hundred and no/100 dollars ($500.00) for any Quarter, whichever is smaller.

Records Retention and Audit Rights. Licensee, at its expense, will keep and maintain full, accurate, and complete books of account and other records in sufficient detail to the parties and their agents to properly ascertain the Royalty due hereunder and compliance with the other terms of this Agreement. University shall have the right to inspect and copy such books, records and documents (in whatever medium they exist) as well as all accounting procedures and practices of Licensee, its agents, and subcontractors to verify Licensee’s Royalty reports and payments and its compliance with the terms of this Agreement. Licensee shall make such items available for inspection during normal business hours at Licensee’s place of business. Licensee shall retain all such items during the term of this Agreement and for a period of three (3) years thereafter. Any items relating to a claim arising out of the performance of this Agreement shall be retained by Licensee, its agents, and subcontractors, it any, until the claim has been resolved. Licensee shall reimburse University for all its out-of-pocket expenses to inspect and audit such records if University, in accordance with the results of such inspection and audit, determines that Licensee has underpaid amounts owed to University by at least three 3% (three) percent (3%) or five hundred and no/100 dollars ($500.00) 500.00 for any Quarter, whichever is smaller.