- 66 - Alcon [P.R.] in writing of, the failure of any sample, shipment or lot of Avitene to meet in any material respect the Product Specifications. MedChem [P.R.] shall return to Alcon [P.R.] any such rejected sample, shipment or lot of Avitene, at Alcon[ P.R.]’s expense. Alcon [P.R.], at its expense, shall replace any properly rejected sample, shipment or lot of Avitene. Alcon [P.R.] shall also reimburse MedChem [P.R.] for any inventory loss due to warehouse damage, damage resulting from the failure of the Conversion Process (except for damage resulting from changes in the Conversion Process requested by MedChem [P.R.] and instituted by Alcon [P.R.]) or the expiration of the expiration date of any Avitene products stored by MedChem [P.R.] in warehouse space provided by Alcon [P.R.], provided that such expiration of the expiration date is as a result of actions or omissions by Alcon [P.R.] with respect to the management of the inventory. Alcon [P.R.] will not be responsible for inventory losses due to product obsolescence. 8.6 Product Recalls. If any Avitene product is subjected to a recall by a governmental agency, or in the event MedChem [P.R.], after notification to and consultation with Alcon [P.R.], elects to make such a recall based on MedChem[ P.R.]’s good faith belief that such Avitene is defective or not in conformity with Alcon[ P.R.]’s warranties, Alcon [P.R.] shall pay the actual out-of-pocket costs in connection with such recall, including without limitation the replacement of recalled Avitene. The payment of such costs by Alcon [P.R.] shall not be included in the computation of the Processing Fee pursuant to Section 9 hereof. However, if Alcon [P.R.] was not in breach of its warranties, MedChem [P.R.] shall hold Alcon [P.R.] harmless and shall bear all costs and expenses in connection with such recall. 9. Payment. 9.1 Processing Cost. In return for the processing services performed by Alcon [P.R.] for MedChem [P.R.], MedChem [P.R.] shall pay to Alcon [P.R.] a Processing Fee in connection with each Order for Avitene Delivered pursuant to this Agreement. The Processing Fee shall be equal to Alcon[ P.R.]’s Processing Cost (as such term is defined below) plus ten percent (10%). However, the Processing Fee will bePage: Previous 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 Next
Last modified: May 25, 2011