Common use of Payments and Accounting Clause in Contracts

Payments and Accounting. With respect to the royalties set forth herein, Licensee shall keep complete and accurate records. These records shall be retained for a period of three (3) years from the date of payment, notwithstanding the expiration or other termination of this Agreement. Licensee agrees to permit its directly related financial records and accounts to be examined, not more than once a year, during normal business hours, to verify the amount of royalties payable to Licensor under this Agreement. Prompt adjustment shall be made by Licensee to Licensor corresponding to the net amount of any underpayment of royalties due hereunder. If such examination reveals an underpayment of more than five percent (5%), then Licensee shall promptly reimburse Licensor for the cost of the examination and for any amounts underpaid. Until full payment of the aggregate $500,000 royalty amount, the actual annual royalty payment shall be the greater of the total royalties generated from licenses or the minimum annual commitment.