Medchem (P.R.), Inc. - Page 61




                                       - 61 -                                         
                    3.  License.                                                      
                         3.1  Grant.  MedChem [P.R.] shall grant to                   
               Alcon [P.R.] a royalty-free nonexclusive,                              
               nontransferable license to use the Proprietary                         
               Information solely in connection with the processing of                
               Avitene for MedChem [P.R.] pursuant to this Agreement.                 
                         3.2  Ownership.  Title to, and ownership of,                 
               the Proprietary Information shall at all times remain                  
               solely and exclusively with MedChem [P.R.], and Alcon                  
               [P.R.] shall not take any action inconsistent with such                
               title and ownership.                                                   
                         3.3  Protection.  Alcon [P.R.] hereby                        
               covenants to hold such Proprietary Information in                      
               confidence.  Alcon [P.R.] shall not, without the prior                 
               written consent of MedChem [P.R.], disclose or                         
               otherwise make available such Proprietary Information                  
               in any form to any person, except to Alcon[ P.R.]’s                    
               employees. * * *                                                       
                         3.4  Equitable Relief; Indemnification.                      
               Since an unauthorized use or transfer of the                           
               Proprietary Information will substantially diminish the                
               value to MedChem [P.R.] of its rights with respect                     
               thereto, if Alcon [P.R.] breaches any of its                           
               obligations under this Section 3, MedChem [P.R.] shall                 
               (without limiting its other rights or remedies) be                     
               entitled to equitable relief (including but not limited                
               to injunctive relief) to protect its interests.  Alcon                 
               [P.R.] shall indemnify and hold MedChem [P.R.] harmless                
               for any losses or damages which MedChem [P.R.] may                     
               suffer as a result of any unauthorized use, transfer or                
               disclosure of the Proprietary Information caused by the                
               acts or omission of Alcon [P.R.].                                      
                    4.  Machinery and Equipment.  For the duration of                 
               this Agreement, MedChem [P.R.] shall grant to Alcon                    
               [P.R.] the right to use, free of charge, all Equipment                 
               owned by MedChem [P.R.] and required in the Conversion                 
               Process, provided that Alcon [P.R.] shall use such                     
               Equipment solely for the purpose of processing Avitene                 
               pursuant to this Agreement.  Title to and ownership of                 
               the Equipment shall remain at all times solely and                     
               exclusively with MedChem [P.R.].  Alcon[ P.R.]’s rights                
               with respect to the use of the Equipment shall be                      
               nontransferable.  Alcon [P.R.] shall take reasonable                   





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