Provision Language
6. PROGRESS AND ROYALTY REPORTS
6.1 Progress and Royalty Reports. Beginning on September 30, 2022, and continuing semi annually thereafter, Licensee will complete the progress report form attached to this Agreement as Appendix C. Beginning with the First Commercial Sale and continuing for the life of this Agreement, Licensee will make quarterly royalty reports and pay such amounts to The Regents within thirty (30) days of February 28, May 31,August 31 and November 30 of each year. Each royalty report will cover Licensee’s most recently completed calendar quarter and will contain at least the information identified in the Royalty Report attached hereto as Appendix D.
7. BOOKS AND RECORDS
7.1 Accounting. Licensee must keep, and will cause its Sublicensees to keep, accurate financial and development books and records showing all Licensed Products in development, manufactured, used, sold, leased, transferred, provided, or otherwise disposed of, and any other records necessary to affirm compliance with the terms of this Agreement. Books and records must be preserved for at least six (6) years from the date of the royalty payment to which they pertain.
7.2 Auditing. Books and records kept in accordance with Section 7.1 must be open to inspection by representatives or agents of The Regents at reasonable times and at a U.S. location. The Regents will bear the fees and expenses of examination but if an error in royalties of more than five percent (5%) of the total royalties due for any year is discovered in any examination then Licensee will bear the fees and expenses of that examination and will remit such underpayment to The Regents within thirty (30) days of the examination results.
