Common use of Device Approval Clause in Contracts

Device Approval. MLTC will have thirty (30) days following --------------- the completion of each milestone set forth in the Development Schedule to reasonably determine whether the Devices conform to the Specifications ("Device Approval Period"). MLTC agrees to inform ASIP in writing of any non-conformance during the applicable Device Approval Period. If ASIP receives a notice of non- conformance during any Device Approval Period, ASIP and MLTC will first cooperate in seeking a commercially reasonable way to correct the defect, which does not require a redesign of the Devices. If no such correction is possible to MLTC's commercially reasonable satisfaction, ASIP and MLTC will then agree on the design changes which are reasonably necessary to correct the defect. This procedure shall be repeated until each Milestone of the Devices does conform to the Specifications. The parties will negotiate in good faith the amount of any increased cost or delay due to any such corrections or design changes. If such corrections or design changes will cause the estimated expense to exceed the limits of Section 4.1, the parties will negotiate in good faith to either increase the limit or moderate the request. If such corrections or design changes will cause the estimated time to completion of development of the Devices to exceed the aggregate time period for the development of the Devices as set forth in the Development Schedule, the parties will negotiate in good faith to either increase the time limit or moderate the request. If such an agreement cannot be reached, either with respect to the increase in price or extension of time, neither party will be in default of this Agreement.