Common use of SUSPENSION OF DISTRIBUTION AND RECALLS Clause in Contracts

SUSPENSION OF DISTRIBUTION AND RECALLS. 11.1 If requested by Centocor as the result of a problem with Product quality or directive from the FDA, Nova Factor shall suspend distribution of Product. If the suspension continues for more than * (*) *, Centocor will repurchase the Product held in inventory by Nova Factor at the Purchase Price paid by Nova Factor including all contractual discounts, Nova Factor will ship the repurchased Product to Centocor at * expense and Nova Factor shall have the right to terminate this Agreement upon * (*) * written notice. 11.2 Centocor shall promptly notify Nova Factor of any recalls of Product initiated by Centocor or required by the FDA. Upon receipt of notice of a recall of Product from Centocor, Nova Factor shall notify as appropriate the affected customers. Centocor shall provide Nova Factor with the form of letter to be used in connection with notice of any recall which shall contain the appropriate instructions as to whether the customer should return or dispose of the affected Product. *. Nova Factor shall cooperate in any recalls by providing Product tracking information reasonably requested by Centocor. *Omitted information is the subject of a request for confidential treatment pursuant to Rule 406 under the Securities Act of 1933 and has been filed separately with the Securities and Exchange Commission.

SUSPENSION OF DISTRIBUTION AND RECALLS. 11.1 If requested by Centocor as the result of a problem with Product quality or directive from the FDA, Nova Factor shall suspend distribution of Product. If the suspension continues for more than * four (*4) *weeks, Centocor will repurchase the Product held in inventory by Nova Factor at the Purchase Price paid by Nova Factor including all contractual discounts, Nova Factor will ship the repurchased Product to Centocor at * Centocor's expense and Nova Factor shall have the right to terminate this Agreement upon * thirty (*30) * days written notice. 11.2 Centocor shall promptly notify Nova Factor of any recalls of Product initiated by Centocor or required by the FDA. Upon receipt of notice of a recall of Product from Centocor, Nova Factor shall notify as appropriate the affected customers. Centocor shall provide Nova Factor with the form of letter to be used in connection with notice of any recall which shall contain the appropriate instructions as to whether the customer should return or dispose of the affected Product. *Centocor shall be responsible for the mailing, shipping and reasonable administrative expenses incurred by Nova Factor in connection with the recall as well as the cost of replacement Product for Nova Factor's customers, provided that the reason for the recall does not arise from (i) the negligence or intentional misconduct of Nova Factor or any of its agents or employees or (ii) failure of Nova Factor to comply with the terms of this Agreement. Nova Factor shall cooperate in any recalls by providing Product tracking information reasonably requested by Centocor. *Omitted information is the subject of a request for confidential treatment pursuant to Rule 406 under the Securities Act of 1933 and has been filed separately with the Securities and Exchange Commission.