Common use of Non-Conforming Shipments Clause in Contracts

Non-Conforming Shipments. SAG or its designee will have a period of thirty (30) business days from the date of its receipt of a shipment of Drug Product to inspect and reject such shipment for non-conformance with the obligations under this Article 4.7 and the obligations of RTU pursuant to Article 2.2 including the Specifications based on SAG's normal incoming-goods inspections procedures, by providing RTU with written notice of rejection for any Product Defect within such period of thirty (30) business days together with samples of the non-conforming Drug Products in the relevant shipment for testing. In the case of Product with Latent Defects, SAG or its designee will promptly, and in no event more than thirty (30) business days of SAG knowing of any such Latent Defect, notify RTU of such Latent Defect; provided however, that any Latent Defect must be notified no later than one (1) month following the expiry date of the applicable Drug Product, together with samples of the non-conforming Drug Products in the relevant shipment for testing. If RTU determines that such shipment did conform to the warranties of RTU for Drug Product pursuant to Article 2.2 including the Specifications and did conform to documented batch testing and release, the Parties will submit samples of such shipment to a mutually acceptable independent laboratory *Confidential Treatment Requested 11 for testing. If such independent laboratory determines that the shipment conformed to the obligations of RTU for Drug Product pursuant to Article 2.2 including the Specifications and conformed to batch testing and release and was not affected by a Product or Latent Defect, SAG or its designee will bear all expenses of shipping and testing by such independent laboratory of such shipment samples. If RTU or such independent laboratory confirms that such shipment did not meet the obligations of RTU for Drug Product pursuant to Article 2.2 including the Specifications and did not conform to documented batch testing and release, RTU will, as soon as practicable, give SAG or its designee a credit for any amount paid with respect to that portion of the Drug Product which does not conform and will bear all of SAG's expenses of returning such Drug Product to RTU or its nominee. RTU or SAG, as directed by RTU, will dispose of any non-conforming portion of any shipment, at RTU's expense. The costs of the activities of any such independent laboratory will be borne by the Party in error. ARTICLE 5.

Appears in 1 contract

Sources: Exclusive Manufacturing and Supply Agreement

Non-Conforming Shipments. SAG SPL or its designee will have a period of thirty (30) business days from the date of its receipt of a shipment of Drug Product to inspect and reject such shipment for non-conformance with the obligations under this Article 4.7 and the obligations of RTU pursuant to Article 2.2 2.1 including the Specifications based on SAG's SPL’s normal incoming-goods inspections procedures, by providing RTU with written notice of rejection for any Product Defect within such period of thirty (30) business days together with samples of the non-conforming Drug Products in the relevant shipment for testing. In the case of Product with Latent Defects, SAG SPL or its designee will promptly, and in no event more than thirty (30) business days of SAG SPL knowing of any such Latent Defect, notify RTU of such Latent Defect; provided however, that any Latent Defect must be notified no later than one (1) month following the expiry date of the applicable Drug Product, together with samples of the non-conforming Drug Products in the relevant shipment for testing. If RTU determines that such shipment did conform to the warranties of RTU for Drug Product product pursuant to Article 2.2 2.1 including the Specifications and did conform to documented batch testing and release, the Parties will submit samples of such shipment to a mutually acceptable independent laboratory *Confidential Treatment Requested 11 for testing. If such independent laboratory determines that the shipment conformed to the obligations of RTU for Drug Product pursuant to Article 2.2 2.1 including the Specifications and conformed to batch testing and release and was not affected by a Product or Latent Defect, SAG SPL or its designee will bear all expenses of shipping and testing by such independent laboratory of such shipment samples. If RTU or such independent laboratory confirms that such shipment did not meet the obligations of RTU for Drug Product product pursuant to Article 2.2 2.1 including the Specifications and did not conform to documented batch testing and release, RTU will, as soon as practicable, give SAG SPL or its designee a credit for any amount paid with respect to that portion of the Drug Product which does not conform and will bear all of SAG's SPL’s expenses of returning such Drug Product to RTU or its nominee. RTU or SAGSPL, as directed by RTU, will dispose of any non-conforming portion of any shipment, at RTU's ’s expense. The costs of the activities of any such independent laboratory will be borne by the Party in error. ARTICLE 5.

Appears in 1 contract

Sources: Exclusive Manufacturing and Supply Agreement (Sucampo Pharmaceuticals, Inc.)

Non-Conforming Shipments. SAG or its designee will have a period of thirty (30) business days from the date of its receipt of a shipment of Drug Product to inspect and reject such shipment for non-conformance with the obligations under this Article 4.7 and the obligations of RTU pursuant to Article 2.2 including the Specifications based on SAG's normal incoming-goods inspections procedures, by providing RTU with written notice of rejection for any Product Defect within such period of thirty (30) business days together with samples of the non-conforming Drug Products in the relevant shipment for testing. In the case of Product with Latent Defects, SAG or its designee will promptly, and in no event more than thirty (30) business days of SAG knowing of any such Latent Defect, notify RTU of such Latent Defect; provided however, that any Latent Defect must be notified no later than one (1) month following the expiry date of the applicable Drug Product, together with samples of the non-conforming Drug Products in the relevant shipment for testing. If RTU determines that such shipment did conform to the warranties of RTU for Drug Product pursuant to Article 2.2 including the Specifications and did conform to documented batch testing and release, the Parties will submit samples of such shipment to a mutually acceptable independent laboratory *Confidential Treatment Requested 11 for testing. If such independent laboratory determines that the shipment conformed to the obligations of RTU for Drug Product pursuant to Article 2.2 including the Specifications and conformed to batch testing and release and was not affected by a Product or Latent Defect, SAG or its designee will bear all expenses of shipping and testing by such independent laboratory of such shipment samples. If RTU or such independent laboratory confirms that such shipment did not meet the obligations of RTU for Drug Product pursuant to Article 2.2 including the Specifications and did not conform to documented batch testing and release, RTU will, as soon as practicable, give SAG or its designee a credit for any amount paid with respect to that portion of the Drug Product which does not conform and will bear all of SAG's expenses of returning such Drug Product to RTU or its nominee. RTU or SAG, as directed by RTU, will dispose of any non-conforming portion of any shipment, at RTU's expense. The costs of the activities of any such independent laboratory will be borne by the Party in error. ARTICLE 5.

Appears in 1 contract

Sources: Exclusive Manufacturing and Supply Agreement (Sucampo Pharmaceuticals, Inc.)