U.S. Vision Care 2014 Sales Policy & Procedures. January 1, Alcon Laboratories, Inc South Freeway, Fort Worth, Texas

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1 U.S. Vision Care 2014 Sales Policy & Procedures January 1, 2014 Alcon Laboratories, Inc South Freeway, Fort Worth, Texas

2 Section I Contact Lenses 1. Customer Policy ALCON products will be sold only to licensed eye care professionals, Authorized Distributor Network (ADN TM ) distributors, and authorized retailers that sell only to end-users based on a valid prescription as defined by the Fairness in Contact Lens Consumer Act (FCLCA). 2. How to Order BY PHONE: (Monday through Friday 7:30 a.m. 7:00 p.m. Central Standard Time) BY FAX: BY INTERNET: Our website (myalcon.com) allows you to place orders for select products 7 days a week, 24 hours a day. For written orders and inquiries please submit to: Alcon Laboratories, Inc. (Alcon) Customer Service Department WX South Freeway Fort Worth, TX Billing You will receive a monthly statement showing all amounts owing to Alcon as of the end of the month. All orders will be invoiced at prices in effect at the time of placement at time of order placement. All items on this price list can be included on the same purchase order. These items will be invoiced in Fort Worth, Texas, and shipped from a distribution point in the United States. Payment for each month s purchases is due in full 15 days after the statement date unless otherwise specified in writing by Alcon. Billing disputes or claims for pricing, shortages, or shipping errors must be submitted in writing within 30 days from the date of the first statement on which the disputed entry appeared. The letter must include: account name, account number, basis for the dispute, and must be sent to the Alcon Credit Department representative whose name appears on your monthly statement. ALL CLAIMS ARE NULL AND VOID 12 MONTHS AFTER INVOICE DATE. Deductions related to audits performed on an invoice, advertising claim or returned goods claim will not be considered for approval if more than 12 months old. Immediate repayment will be necessary in order to avoid interruption of service. Remittance address and payment terms are noted on your monthly statement. 4. Standard Shipments to Practitioners Contact Lens shipments having a value less than $100,000 are F.O.B. (as defined by Incoterms) Alcon distribution center(s), with parcel orders delivered within five (5) business days. Less than truckload pallet shipments are delivered within eight (8) business days. The shipping terms for all shipments having a value greater than $100,000 are CIP (as defined by Incoterms) to the customer s shipping address with both title and risk of loss for the products transferring to the customer at the point of delivery to the first carrier. Note: Orders placed through ADN distributors are subject to the shipping policies of the individual distributor. 2 P a g e

3 5. Shipping Charge Revenue Lenses Orders of 4 or more revenue lens units will be shipped standard delivery at no charge. Orders of less than 4 revenue lens units will be charged a shipping fee of $ Next Day Delivery Upon request, Alcon will arrange for product to be shipped by Next Day delivery at a charge of $13.50 (or $17.50 for Saturday delivery). For orders weighing greater than one pound Next Day and Saturday shipping charges will be calculated by weight. 7. Patient Home Delivery Doctor Direct to Patient Shipments For patients personally seen in your practice, you can authorize lens orders to be shipped directly to your patient s home or workplace; provided, Alcon reserves the right to refuse any such direct shipments to patients in states whose laws prohibit or restrict direct shipments by non-resident manufacturers. Alcon further reserves the right to perform an audit of patient direct orders to assure that the orders shipped are within compliance. When patients purchase an annual supply*, no shipping fee will be charged. Orders less than an annual supply will incur standard shipping charges. Direct-to-patient orders weighing less than one pound and shipped with Next Day delivery specified will cost $13.50 (or $23.50 for Saturday delivery). For orders weighing greater than one pound, Next Day and Saturday shipping charges will be charged based on weight. Applicable state sales taxes for final destination will apply. *See price list for eligible annual supply products and quantities 8. Trial Lenses Alcon makes trial lenses available on most planned replacement and disposable products to assist in the fitting of new patients. All trial lenses should be ordered from the same source where you buy your revenue lenses. When trial lenses are ordered separately, applicable shipping charges will be applied. Trial lenses are only intended for trial fitting of patients. Eye care professionals and retailers may not: a) sell trial lenses, b) substitute trial lenses for revenue lenses, or c) give trial lenses away at no charge as product promotions. Alcon reserves the right to discontinue providing trial lenses at any time. Alcon has instituted a trial lens policy which is based on revenue units purchased. Contact your Alcon or your ADN TM distributor representative for further information. 9. Returns and Exchange Policy for Contact Lenses Only product purchased directly from Alcon may be returned or exchanged through Alcon under the returns policy contained herein. Alcon warrants that the products it manufactures will perform effectively when used as directed. Returns or exchanges of products purchased from an ADN TM distributor must be handled through that distributor. Returned products should be sent by a prepaid, traceable method, in order to avoid problems caused by non-receipt of goods. Accounts returning products in quantities in excess of quantities purchased may have their return privileges revoked. 3 P a g e

4 10. Alcon Contact Lens Return Policy Return to: Alcon Laboratories, Inc. Attention: Lens Returns Johns Creek Parkway Johns Creek, GA Documentation: A completed return form must accompany each return. Blank return forms are included with lens shipments. The original Alcon invoice number under which the returned product was purchased must also be noted on the return form. Product returned without a valid invoice number may be subject to a handling fee. Products Eligible for Return: All unopened, undamaged, unmarked, and unaltered product may be returned for exchange or credit, within 90 days from the date of invoice. Unopened, undamaged, unmarked, and unaltered product returned more than 90 days from date of invoice with at least 6 months of expiry date can be returned for credit to offset a current or future order of equivalent dollar value. Product with less than 6 months of expiry, discontinued or special promotional products are not eligible for return for credit. 11. Damage in Transit Shipment Errors Products that are either (i) damaged in transit and part of a shipment with a value less than $100,000; or (ii) shipped in error may be returned, provided the damage or error is reported to Customer Service Department within 5 days after receipt of shipment Alcon will issue new products for those damaged in-transit that are part of a shipment with a value less than $100,000. For products damaged in-transit and part of a shipment with a value greater than $100,000, such loss will be insured for the benefit of the customer who should file a claim with the insurance carrier. Alcon s Customer Service Department ( ) is available to provide assistance in filing the claim. 12. Defective Lenses and Adverse Effect Reporting Any product associated with a complaint, including adverse events, must be returned in order to comply with FDA regulations.. If a patient experiences any product defect or adverse events associated with the use of any ALCON contact lens product, please immediately notify Alcon Medical Safety Department by telephone at or by at. Product.SafetyUnit@alcon.com. 13. Contact Lens Consultation Consultants are available from 8:00 a.m. 5:00 p.m. (Central Standard Time) Monday through Friday to answer any fitting, technical, or medical product inquiries from eye care professionals at: Unilateral Price Policy for Select Alcon Contact Lenses Alcon s sale to customers of DAILIES TOTAL 1 contact lenses, DAILIES AquaComfort Plus Multifocal contact lenses, and DAILIES AquaComfort Plus Toric contact lenses (UPP Products) are subject to the terms of a Unilateral Price Policy (UPP) adopted by Alcon in the United States and set forth in the attached document (exhibit 1). Under this UPP, Alcon will not sell (or permit its distributors to sell) any UPP Product to any U.S. customer that advertises or retails such product at a price less than its minimum retail price as specified in the UPP. 4 P a g e

5 Section II Contact Lens Solutions and Over the Counter (OTC) branded products 1. Customer Policy ALCON lens care products and other OTC branded products will be sold only to authorized retailers, distributors, wholesalers and authorized suppliers. 2. How to Order BY PHONE: (Monday through Friday 7:30 a.m. 5:00 p.m. Central Standard Time) BY FAX: BY INTERNET: Our website (myalcon.com) allows you to place orders for select products 7 days a week, 24 hours a day. For written orders and inquiries please submit to: Alcon Laboratories, Inc. (Alcon) Customer Service Department WX South Freeway Fort Worth, TX Billing You will receive a separate monthly statement showing all amounts owed to Alcon for lens care solutions and other OTC products purchased as of the end of the month. All orders will be invoiced and billed at list prices without showing any applicable trade discounts. All orders will be invoiced at prices in effect at time of order placement. All items on this price list can be included on the same purchase order. These items will be invoiced in Fort Worth, Texas, and shipped from a distribution point in the United States. Payment for each month s purchases is due in full 30 days from invoice date unless otherwise specified in writing by Alcon. Billing disputes or claims for pricing, shortages, or shipping errors must be submitted in writing within 30 days from the date of the invoice on which the disputed entry appeared. The letter must include: account name, account number, basis for the dispute, and must be sent to the Credit Department representative whose name appears on your monthly statement. ALL CLAIMS ARE NULL AND VOID 12 MONTHS AFTER INVOICE DATE. Deductions related to audits performed on an invoice, advertising claim or returned goods claim will not be considered for approval if more than 12 months old. o Immediate repayment will be necessary in order to avoid interruption of service. Remittance address and payment terms are noted on your monthly statement. 4. Standard Shipments of Lens Care and OTC branded products to Customers All Lens Care and OTC branded products will be shipped at no charge and will be shipped separate from contact lens products. If expedited delivery is needed, a separate charge will be applied to the order based on actual charges for the service requested. All standard orders are shipped via Integrated Carrier of LTL depending on the size of the order. All orders must be made in case packs only. Standard Delivery: 10 days after receipt order (A.R.O.) 5 P a g e

6 5. Returns and Exchange Policy for Lens Care and OTC Branded Products Alcon will accept all unopened original trade units and unsalable outdated merchandise up to 12 months past the expiration date of the product. Credit will be issued based on the original purchase price. Alcon will not issue credit at retail pricing or a percent of retail pricing. Items not eligible for credit will include: (i) less than complete contact lens kits or any of the component parts returned separately (lens care solutions and contact lens cases); (ii) products involved in a pending bankruptcy sale; (iii) products deteriorated because of inherent characteristics beyond the control of the manufacturer (i.e. due to improper storage, heat, cold, water, fire, etc.,); and (iv) products that are 12 months or more past expiration date. Products that do not qualify for credit will be destroyed rather than returned to the customer. Note: Any product associated with a complaint report, including adverse events, must be returned in order to comply with FDA regulations. The account must explicitly indicate the nature of the complaint on the documentation accompanying the return. 6. Defective Lens Care OTC Branded Product Adverse Effect Reporting Alcon warrants that the products it manufactures will perform effectively when used as directed. If a patient experiences any product defects or adverse events associated with the use of any of our lens care or OTC branded products, please immediately notify Alcon Medical Safety at: or by at Product.SafetyUnit@cibavision.com. 7. Alcon Lens Care and OTC Branded Product Return Policy (Non-Defective and Non- Adverse Event related product) Return via Prepaid method to: Alcon Laboratories, Inc. Attention: Return Goods Door Will Rogers Blvd Fort Worth, TX Documentation: A copy of your debit memo MUST BE included with your return. All returns are subject to final count and acceptance by Alcon. Credit will be issued only on those products that meet Alcon s returned goods policies as provided herein. On the debit memo/ return form (which can be used as the packing slip), please list all eligible products, their lot codes and the number of cartons being returned. Non-Direct Accounts: Return to the applicable wholesaler/ distributor for credit based on its policy. 8. Contact Lens Care and OTC Branded Medical Product Information Medical Product Information is available from 8:00 a.m. 5:00 p.m. (Central Standard Time) Monday through Friday to answer technical or medical product inquiries at: P a g e

7 Section III - Overall 1. Miscellaneous If Alcon is compelled to institute legal and/or other third-party proceedings to collect from an account in arrears, said account will be responsible for all costs incurred by Alcon in bringing such proceedings. These Sales Policies and Procedures are subject to change by Alcon at any time without notice. Alcon, its programs, the names of the ALCON family of products and their technologies are trademarks of Novartis AG, under exclusive license to Alcon. Use of the ALCON trademarks is permitted only under license to authorized customers of Alcon in accordance with Alcon guidelines. All rights reserved. 2. Limitation of Liability The warranties and remedies provided herein are exclusive and in lieu of all other warranties and remedies, whether written or orally expressed or implied. Alcon specifically disclaims all implied warranties of merchantability and fitness for a particular purpose. In no event shall Alcon (or any affiliate of Alcon) be liable or obligated for direct, indirect, special, incidental or consequential damages (including loss of profits) whether based on contract, tort or any other legal theory. Any action against Alcon for alleged breach of the policies or warranties stated herein must be commenced within one year of any such alleged breach. The warranties and remedies stated herein extend only to direct customers of Alcon and not to persons or firms to whom these customers sell or dispense ALCON products. Alcon expressively denies the right of any other party to incur or assume on behalf of Alcon any liability or obligation in connection with the sale or dispensing of ALCON products. 7 P a g e