Medchem (P.R.), Inc. - Page 65




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               Agreement is in effect, Alcon [P.R.] shall make                        
               available to MedChem [P.R.] adequate warehouse space at                
               the Humacao Plant for the storage of Avitene processed                 
               pursuant to this Agreement or purchased by MedChem                     
               [P.R.] pursuant to the Asset Purchase Agreement.                       
               MedChem [P.R.] shall have the right to inspect such                    
               warehouse space upon reasonable prior notice and during                
               normal business hours.                                                 
                    8.  Acceptance and Rejection of Avitene by MedChem                
               [P.R.].                                                                
                         8.1  In General.  Except as set forth below,                 
               MedChem [P.R.] shall have the right, within 30 working                 
               days following actual receipt by MedChem [P.R.] of any                 
               Delivery, to reject any Avitene so Delivered which does                
               not conform in any material respect with the Product                   
               Specifications, provided that such nonconformity did                   
               not result from contamination or other physical damage                 
               cause by MedChem [P.R.] or third parties occurring                     
               after Delivery (other than contamination caused by                     
               subsequent Delivery by Alcon [P.R.] of contaminated                    
               Avitene.) [sic]  * * *                                                 
                         8.2  Changes in Conversion Process;                          
               Alternative Suppliers.  Upon written consent by MedChem                
               [P.R.], Alcon [P.R.] may alter the Conversion Process                  
               or obtain Avitene from alternative suppliers for                       
               Delivery to MedChem [P.R.]. * * *                                      
                         8.3  Testing by Alcon [P.R.].  Alcon [P.R.]                  
               shall submit to MedChem [P.R.], together with each                     
               shipment, batch or lot of Avitene Delivered to MedChem                 
               [P.R.] a written notice (i) certifying that such                       
               shipment, batch or lot of Avitene meets in every                       
               material respect the Product Specifications and (ii)                   
               specifying the results of Alcon[ P.R.]’s analysis of                   
               such shipment, batch or lot.                                           
                         8.4  Testing by MedChem [P.R.].  MedChem                     
               [P.R.], at its option, may perform the Acceptance Tests                
               on random sample packages of Avitene in order to                       
               determine whether such Avitene conforms in every                       
               material respect with the Product Specifications.                      
                                                                                     
                         8.5  Notice; Return; Retesting; Replacement.                 
               MedChem [P.R.] shall not be obligated to remit the                     
               Processing Fee to Alcon [P.R.] for, and shall notify                   





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Last modified: May 25, 2011