Provision Language
7.0 REPORTS & QUALITY CONTROL
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7.4 Report – Quality Control. In addition to the foregoing, the report shall also contain internal audit results, conducted quarterly, showing the quality standards of the products or processes created by the exercise of the Licensed Rights at all production sites and at the major sale or distribution sites.
7.5 Quality Control Obligations. The Company shall comply with all quality requirements for the products or processes created by the exercise of the Licensed Rights that are prescribed by:
7.5.1 Canada from time to time in writing; and
7.5.2 any regulatory or statutory authority.
7.6 Quality Control Spot Audits by Canada. The Company shall allow Canada to conduct spot audits of the Company production and sales sites during operating hours anywhere in the Territory to ensure compliance with the prescribed quality standards.
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7.10 Material terms. The reporting and quality requirements and audit rights are a material term of the License Agreement.
7.7 Quality Control Spot Audits on behalf of Canada. Canada may ask the Company to conduct spot audits of the Company production and sales sites anywhere in the Territory and to disclose those results to Canada within 15 days of each audit.