Subject to the conditions below, Roche accepts returns of its pharmaceutical products, but only (i) from parties purchasing product from Roche or through an authorized distributor of record of Roche for purposes of resale in the normal course and/or dispensing same to the general public, and (ii) if the product expiration date has passed or the product has less than 6 months expiration dating remaining. However, in no event will credit be extended for product which is outdated by more than one year. For all non-direct account returns, Roche requires that the account indicate from which authorized distributor the material was purchased. Roche further reserves the right to request proof of purchase in the form of an invoice that identifies the name of the supplier, which is (or was at time of purchase) an authorized distributor of record of Roche, and the quantity and date of the purchase. Returned product that does not meet these requirements will be destroyed and no credit will be extended.

Customers do not require prior authorization to return a Roche product, except for items listed in Schedule II of the Controlled Substances Act.

Credit will be extended in accordance with this Policy for all Roche products currently in the line if they are outdated, discontinued, damaged or deteriorated, but in no event will credit be extended for product that is outdated by more than one year. Partial returns are accepted.

RETURN GOODS PRICING

Product Returns by the Wholesaler, Specialty Distributor and Retail, including Mail Order, Sectors

Except as set forth below, Return Goods pricing for product returned by the wholesaler, specialty distributor and retail sectors is the amount equal to the Roche-published Wholesale Acquisition Cost (WAC) in effect for such product on the day it is received at Capital Returns less ten percent (10%). If the product being returned was sold by Roche with less then twelve (12) months expiry dating or is the subject of a recall initiated by Roche, then the Return Goods pricing for such product is the WAC in effect the day the product is received at Capital Returns.

Product Returns by the Hospital and Clinic (including physician) Sectors

For any Roche product contracted by Roche in the hospital or clinic sector, Return Goods pricing is the lesser of (i) the average contract price for such product for that sector (as determined solely by Roche) in effect on the day it is received at Capital Returns, irrespective of whether the product was actually purchased at a contract price, and (ii) the hospital s or clinic s actual contract price.

For any Roche product that is not contracted by Roche in the hospital or clinic sector, Return Goods pricing is the amount equal to the WAC in effect for such product on the day it is received at Capital Returns less ten percent (10%).

Product Returns by the Federal Government

Return Goods pricing for products returned by the Federal Government (under PHS or FSS pricing) when returned either through a wholesaler or directly, is the amount equal to the PHS or FSS price in effect for such product on the day it is received at Capital Returns. Product sold to any government stockpile program will not be accepted for return.

Ineligible Returns:

Credit will not be extended for product obtained illegally or that has been diverted or resold by an account pursuant to a special contract price.

Credit will not be extended if the lot number or expiration date is missing, covered or unreadable.

Credit will not be extended for product that does not meet the above eligibility criteria or when the intent of the customer is to temporarily reduce inventory.

Credit will not be extended for Tamiflu® (oseltamivir phosphate) when purchased for stockpiling in preparation of a flu pandemic, regardless of whether Tamiflu is purchased directly from Roche or from a Roche authorized distributor. This provision applies to all sectors including federal, state and local governments, public, private, not for profit companies and all other classes of trade.

Credit will not be extended for product that has been sold to an alternate source vendor. For purposes of the Policy, an alternate source vendor purchases product primarily to resell following price increases.

Credit will not be extended for Roche product sold in bulk package sizes (over 500 units per bottle), repackaged products or for product not in its original containers.

Credit will not be extended for returned product that was not purchased and shipped directly from the Roche Laboratories distribution facility in Joppa, Maryland or directly from a Roche authorized distributor of record at the time the product was purchased.

Credit will not be extended for product not manufactured by or on behalf of Roche for distribution in the United States.

TO RETURN ROCHE PRODUCTS

Returns must be made directly to:

Capital Returns
6101 North 64th Street
Milwaukee, WI 53218
Attention: Roche Return Goods
Telephone: 414-967-2800

Returns of Roche products from direct customers must include a packing list containing the following information:

• Name and address of facility returning product
  - Phone number
  - DEA number
  - Wholesaler name and location
  - List of products including quantity being returned, lot number and expiration date of each.
  

Non-direct customers with eligible returns will receive payment in the form of a check issued by Capital Returns on behalf of Roche Laboratories Inc.

To return Roche products listed in Schedule II of the Controlled Substances Act, prior authorization is required. Capital Returns must be advised in writing of the exact number and size of the package of each such item to be returned. Requests to return Schedule II items should be sent to:

Capital Returns
6101 North 64th Street
Milwaukee, WI 53218
Attention: Roche Return Goods
Telephone: 414-967-2800

Capital Returns will provide customers with a DEA (BNDD) requisition form, which will serve as authorization for shipment.

Roche reserves the right to destroy without notification, credit, exchange or return to the customer, any merchandise which does not conform to this Policy.