Common use of Royalty Statement Clause in Contracts

Royalty Statement. Within thirty (30) days following the end of each Contract Year, Licensee shall send to Licensor an annual royalty statement prepared in English. Such royalty statement shall set forth the quantity of each item of the Licensed Products manufactured and sold during a given Contract Year, the Net Sales Price of the Licensed Products sold during the Contract Year, together with the Percentage Royalty, if any, payable to Licensor for the Contract Year and each sum of deductions and returns of Licensed Products. Books and records relating to the Licensed Products and the calculation of the royalty hereunder shall be retained by Licensee during the term of this Agreement and a further period of two (2) years thereafter and shall be available for inspection and audit by Licensor or its representative upon reasonable notice during normal business hours. Licensee shall reimburse to Licensor the costs and expenses incurred by Licensor for such inspection and audit (including attorneys’ and accountants’ fees) if the result of such inspection and audit shows an underpayment of royalties by more than five percent (5%) of the total royalties due to Licensor hereunder.