Wednesday, March 21, 2007

Books of Account and Audits.

Licensee shall keep books of account (the “Books of Account”) relating to Licensee’s commercial use of the Authorized Copy on the basis of generally accepted accounting principles. Licensee shall maintain such Books of Account for a period of at least two (2) years after the expiration or earlier termination of this Agreement; provided, however, that Licensee shall not be required to keep such Books of Account longer than seven (7) years from their date of origination. Id Software may, upon reasonable notice and at its own expense, audit the applicable Books of Account at Licensee’s office, in order to verify the accuracy of Royalty statements rendered hereunder. Any such audit shall take place during reasonable business hours and in such manner so as not to unreasonably interfere with Licensee’s normal business activities. If in an audit of Licensee’s Books of Account it is determined that there is a short fall of ten percent (10%) or more in Royalties reported for any calendar month, in addition to payment of such short fall and interest as may be due, as provided herein, Licensee shall reimburse Id Software for the full out-of-pocket costs of the audit including reasonable travel costs and expenses; provided, however, that the amount of reimbursement paid by Licensee shall not exceed U.S. Fifteen Thousand Dollars ($15,000.00) for any audit.