Medchem (P.R.), Inc. - Page 20




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          the plant where the equipment had been located for non-Avitene              
          products.                                                                   
               Alcon P.R. devoted 30 to 35 of its full-time production line           
          employees to the manufacturing of Avitene before June 1990, and             
          it devoted 12 to 15 of its full-time production line employees              
          afterwards.  Alcon P.R. included the compensation paid to these             
          employees in the calculation of the processing fee charged to               
          MedChem P.R. under the processing agreement.  Of the 30 to 35               
          production line employees who worked on Avitene before June 1990,           
          approximately 15 to 20 worked in phase 1 of the manufacturing               
          process, and the remainder worked in phase 2.  The number of                
          Alcon P.R. employees producing Avitene decreased in June 1990               
          after MedChem U.S.A. moved to Woburn the equipment used to                  
          convert corium into bulk flour.                                             
               All of the production line employees were supervised by a              
          manager employed by Alcon P.R.; namely, Maria Rodriguez from                
          January 1990 to January 1, 1992, and Jimmy Carrion afterwards.              
          These managers reported to Ramon Alifonso, Alcon P.R.’s director            
          of manufacturing, who reported to Lee Hansen, Alcon P.R.’s                  
          general manager for its manufacturing facility.                             
               Alcon P.R. had a quality assurance department at its                   
          manufacturing facility and employed in that department a director           
          and a staff of approximately 85 to 100.  The director, Maria                
          Santiago, reported to Alcon Labs’ quality assurance director in             






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