Medchem (P.R.), Inc. - Page 69




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               the right to engage an independent auditor, upon                       
               reasonable written notice, to examine the relevant                     
               books and records of Alcon [P.R.] in order to confirm                  
               the accurate calculation of the Option C Processing                    
               Cost.                                                                  
                    10.  Payment.  MedChem [P.R.] shall pay Processing                
               Fees pursuant to Alcon[ P.R.]’s invoice for Avitene                    
               Delivered under any Order within 30 days following                     
               receipt by MedChem [P.R.] of such invoice.  Payment by                 
               MedChem [P.R.] of any invoice submitted by Alcon [P.R.]                
               to MedChem [P.R.] shall not be required with respect to                
               any shipment or lot of Avitene which has been properly                 
               rejected and returned by MedChem [P.R.] in accordance                  
               with Section 8.5.  Payment of any disputed amount (but                 
               only to the extent of the disputed amount) shall be                    
               deferred until resolution of such dispute.                             
                    11.  Warranty.                                                    
                         11.1  General Warranty; Inspection.  Alcon                   
               [P.R.] warrants that any Avitene Delivered under this                  
               Agreement shall meet the Product Specifications in                     
               every material respect, and that at the time of                        
               Delivery such Avitene shall be uncontaminated and free                 
               from defects in materials and workmanship.  MedChem                    
               [P.R.] may make changes in the Product Specifications,                 
               but such changes must be made known to and agreed to by                
               Alcon [P.R.], which agreement shall not be unreasonably                
               withheld or delayed, and Alcon [P.R.] shall promptly                   
               incorporate said change(s) in such products, consistent                
               with Good Manufacturing Practices and regulatory                       
               requirements.  MedChem [P.R.] shall have the right to                  
               inspect the Humacao Plant during mutually agreed upon                  
               times when the processing of Avitene is in progress to                 
               insure that Alcon[ P.R.]’s processing of Avitene is in                 
               compliance with the Product Specifications.  This right                
               of inspection granted to MedChem [P.R.] shall not be                   
               deemed as granting to MedChem [P.R.] access to any                     
               trade secrets retained by Alcon [P.R.] subsequent to                   
               the closing of the transactions contemplated by the                    
               Asset Purchase Agreements.                                             
                         11.2  MedChem [P.R.] Indemnity.  MedChem                     
               [P.R.] will indemnify and hold Alcon [P.R.] harmless                   
               from any and all claims, damages, costs and/or                         
               expenses, including, but not limited to attorneys fees,                
               arising directly from (i) any change required by                       





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