Common use of REPORTING & AUDIT Clause in Contracts

REPORTING & AUDIT. Lilly shall keep and maintain records of sales of Drug Product. Lilly shall furnish Arena with a report on Net Sales of the Drug Product within three (3) months after December 31 of each year after first commercial sale of the Drug Product in the Territory. Said report shall include Net Sales and Royalty due. Such records shall be open to inspection, at any reasonable time within two (2) years after the royalty period to which such records relate, by Lilly's independent certified public accountant and such inspection shall be at Arena's expense. The independent certified public accountant shall have the right to examine the records kept pursuant to this Section 10.3 and report to Arena the findings of said examination of records insofar as necessary to verify the statements made pursuant to Section 10.5. If an error in favor of Arena of ************** or more of the total amount audited is discovered, then the expenses of the audit shall be paid by Lilly. Such findings shall be maintained in confidence by Arena.