Common use of Reporting and Audits Clause in Contracts

Reporting and Audits. 5.1 The Licensee shall within seven (7) days of expiration of each month render a report to the Licensor, giving a true account of total manufacture of Eligible Vehicles during the preceding month. 5.2 The Licensee shall keep full and proper books and records of account relating to any and all exploitation of its rights under this Agreement. The Licensor shall have the right at any time during the term of this Agreement, and for a period of five (5) years thereafter, to audit and make copies of such books and records during normal business hours, to ascertain compliance with the terms of this Agreement, provided that the Licensor has given a reasonable notice of the audit. In the event that such audit reveals any deficiency in payments than actually reported and/or paid, or other non-compliance with the terms of this Agreement, the Licensee shall immediately indemnify the Licensor for any non-compliance and make payment of any failed payments and indemnify the Licensor fully for any reasonable costs relating to the audit.