Common use of Expense of Audit Clause in Contracts

Expense of Audit. The fees and expenses of the accounting firm designated by Shionogi to perform an examination pursuant to Article 7.1 shall be borne by Shionogi; provided, however, that if any audit shall show that Scios underpaid the royalties due to Shionogi under this Agreement as to the period being audited by more than three percent (3%) of the amount that was payable for such period, then Scios shall, in addition to immediately paying to Shionogi any such deficiency, immediately reimburse Shionogi for the cost of such audit.

Appears in 2 contracts

Sources: Cross License Agreement (Scios Inc), Cross License Agreement (Scios Inc)