Quality assurance clause samples

4.1 Quality Assurance. All API supplied by BACHEM shall meet the agreed current Specifications and shall be manufactured and stored in accordance with all Applicable Laws relevant to the Facility, Warehouse and the Quality Agreement. BACHEM agrees that, prior to each shipment of API hereunder, it shall perform quality assurance and quality control procedures reasonably necessary to ensure that the API to be shipped conforms fully with the Specifications and in compliance with cGMP’s. Each shipment of API shall be accompanied by a certificate of analysis, which will include a signed certification of cGMP compliance and such additional documents as may be specified in the Quality Agreement or as otherwise reasonably required by XERIS from time to time.

The Company respectfully advises the Staff that the RMB157.6million recognized as a reduction in quality assurance receivables was a loss recognized in the gain (loss) from quality assurance. As disclosed in note 2(t) on page F-29, quality assurance receivable is recognized at fair value at loan inception which takes into consideration the expected defaults that would not be collected. At each balance sheet date, the Company estimates the future cash flows of the quality assurance receivable and assesses whether there is any indication of impairment. If the carrying amounts of quality assurance receivable exceeds the expected collections, an impairment loss is recorded for the quality assurance receivable not recoverable. The RMB157.6million represents the additional amount of quality assurance receivable that is considered unrecoverable due to the changes in default expectation, which is recognized as a loss in the gain (loss) from quality assurance in the consolidated statement of comprehensive income.

In March 2017, we entered into a non-binding LOI with Morf3D to commence negotiations on a mutually acceptable M&A Agreement with respect to a proposed merger with Morf3D. It is anticipated that this transaction, if consummated, would help the Company achieve its goal of becoming a fully integrated business able to charge for materials selection, design and manufacturing and in-process quality assurance. It is further the goal that the combined entity would emerge as a fully integrated additive manufacturing company poised to serve the aerospace and defense industry, which is rapidly transitioning to 3D metal additive manufacturing and which could provide the kind of cost savings required to meet the $56 billion increase slated for the defense industry 2017 budget. The closing of the transaction is subject to definitive documentation and closing conditions, some of which are beyond the Company’s control.

In March 2017, we entered into a non-binding LOI with Morf3D to commence negotiations on a mutually acceptable M&A Agreement with respect to a proposed merger with Morf3D. It is anticipated that this transaction, if consummated, would help the Company achieve its goal of becoming a fully integrated business able to charge for materials selection, design and manufacturing and in-process quality assurance. It is further the goal that the combined entity would emerge as a fully integrated additive manufacturing company poised to serve the aerospace and defense industry, which is rapidly transitioning to 3D metal additive manufacturing and which could provide the kind of cost savings required to meet the $56 billion increase slated for the defense industry 2017 budget. The closing of the transaction is subject to definitive documentation and closing conditions, some of which are beyond the Company's control.