Capital Expenditure Payments. Xxxx or one of its Affiliates shall pay all costs for manufacturing equipment and facility improvements pertaining to the Products and Xxxx or such Affiliate shall own such manufacturing equipment. Xxxx agrees to maintain adequate insurance for such manufacturing equipment and Corium agrees to be responsible for the servicing and maintenance of such manufacturing equipment. Corium also agrees to use such manufacturing equipment for Xxxx and the Products only (unless Corium has purchased such equipment from Xxxx in which case Corium can then use the equipment for any purpose it desires except that Corium shall give priority use of the equipment for Xxxx and the Products). However, Corium may request from time to time, permission from Xxxx to use such manufacturing equipment for other customers and other products. For as long as Xxxx owns the equipment, neither Corium nor Xxxx shall assign, transfer, pledge, hypothecate or otherwise dispose of the equipment or any interest therein. Xxxx will execute such documents and authorize such filings as Corium shall reasonably request to Xxxx’x creditors of Corium’s right to purchase the equipment under this Agreement. A detailed capital *Confidential Treatment Requested. expenditure budget, timeline and schedule for the payment of such costs is attached as Exhibit C. Corium shall select third party vendors for all manufacturing equipment purchases and Corium shall place all manufacturing equipment orders. The vendors shall invoice Xxxx directly for such manufacturing equipment purchases and Xxxx shall forward a copy of such invoices to Corium. Xxxx shall pay the vendors in accordance with all manufacturing equipment invoices by the payment due dates specified in such invoices. If Corium wishes to purchase any or all of the manufacturing equipment owned by Xxxx, Corium may do so at any time by reimbursing Xxxx for the actual costs paid by Xxxx for all of the equipment or each individual piece of equipment that Corium wishes to purchase.
Appears in 4 contracts
Samples: And Commercialization Agreement, And Commercialization Agreement (Corium International, Inc.), And Commercialization Agreement (Corium International, Inc.)
