1
VENDOR AGREEMENT
Agreement made this 12th day of September, 1997, between EQUIPNET,
INC.("EquipNet"), a Pennsylvania corporation and Xxxxxx-Field (Vendor), a New
York corporation.
BACKGROUND:
Equipnet is the originator and administrator of a national network (the
"Network") of providers of home health services and equipment. In addition,
EquipNet administers a group buying program (the "Buying Program") in which
Members participate (hereafter in the Program are referred to individually as a
"Participant" and collectively as the "Participants"). Vendor manufacturers or
distributes the products or services (the "Products") described in Exhibit A
attached hereto. EquipNet desires to have the Products offered through the
Buying Program and Vendor desires to participate in the Buying Program, all on
the terms and subject to the conditions set forth below:
NOW THEREFORE, the parties, intending to be legally bound hereby and for
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, agree as follows:
1. VENDOR UNDERTAKINGS. Vendor agrees to:
(a)--Offer a $125,000 enrollment fee which can be payable in merchandise,
excluding distributed products ordered by EquipNet and its locations within the
next 90 days.
(b)--Perform in-services with EquipNet case manager clients upon reasonable
notice at Vendor's cost including CEU programs.
(c)--Sponsor and help write four News, Clues and Reviews mailing a year
(newsletter to case managers)(approximate cost $1,500 per mailing).
(d)--Assemble its portion of an EquipNet Resource Manual for case managers
(Vendor to assemble their section and supply sufficient copies).
(e)--For clinical programs, assist in development and production of programs.
(f)--Develop comarketing material and Vendor catalogs identifying Vendor as
EquipNet Buying Program member.
(g)--Edit EquipNet Patient Education Booklet specific to Vendor's products and
pay for its pro rata share of the printing for exclusive territory providers.
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(h)-Maintain competitive pricing including finance/lease programs, competitive
products and satisfactory service including delivery, customer service and
warranty work.
2. EQUIPNET UNDERTAKINGS. EquipNet agrees to:
(a)-Negotiate diligently with its providers to award exclusive territories and
obligate its exclusive territories in the DME/supplies business to use Vendor's
products.
(b)-Diligently pursue managed care contracts to enhance EquipNet's abilities to
create exclusive territories.
(c)-Promote Vendor's Products where appropriate to payors including enabling
EquipNet to designate its formulary in servicing its contracts.
(d)-Purchase Vendor's Products at all owned locations.
(e)-Modify at Vendor's expense Patient Education booklets to include Vendor
specific training materials.
(f)-Include Vendor's specific products in marketing/educational materials such
as a Medicare Training Manual for HMOs or a Workers Comp Equipment Guide.
(g)-The agreements above to require exclusives and company owned locations to
use Vendor products are subject to (1) net price/terms/quality comparability
including switch-over costs, and (2) market conditions which may require name
brand products.
3. PRODUCT PRICE. Vendor and EquipNet agree that the price per Product to
be charged to the Participant, exclusive of any applicable taxes and shipping
charges, is as set forth in EXHIBIT A next to each Product. The pricing levels
are defined as follows:
(a) BETTER - All EquipNet members will be offered this pricing
(b) BEST - Any EquipNet member who commits to purchase $500,000 or more on
annual basis will be offered this pricing.
(c) BEST PLUS - Any EquipNet member who commits to purchase $1,000,000 or
more on an annual basis will be offered a custom contract, with pricing and
terms equal to if not better than Best.
Vendor agrees to communicate vendor pricing, discounts, special promotions and
the like to Participants through EquipNet. Vendor warrants that such pricing is
as competitive if not more competitive than pricing offered to any other
homecare buying program. Vendor will also negotiate volume and/or custom
contracts for Participants who warrant more aggressive pricing across the board
or in special areas and EquipNet will still receive credit for such purchases.
In circumstances where Xxxxxx Field must negotiate a special price to one of
EquipNet's members, that same pricing must be offered to Xxxxxxx Medical.
3
4. PRODUCT ORDERING. EquipNet shall deliver a list of Participants to
Vendor, which list shall be updated periodically by EquipNet. Each Participant
shall be given an identification number. Participants will order Products
directly from the Vendor using their identification number. All Products
ordered by Participant from Vendor shall be deemed to be ordered pursuant to
the Buying Program. Where a Participant is in more than one buying program,
upon EquipNet's delivery to Vendor a commitment form identifying EquipNet as
the program of choice, Vendor shall honor all purchases through EquipNet.
5. PRODUCT PROMOTION. Both EquipNet and Vendor shall make Participants
aware of Vendor products and prices offered under this contract. EquipNet shall
notify its Participants through infofaxes, newsletters and other sources. With
prior approval vendor shall reimburse for all reasonable costs in connection
with mailings to EquipNet members for Vendor Products. Vendor agrees to notify
its sales force including any manufacturer representatives. Vendor agrees to
develop direct mailings with EquipNet detailing Products offered and their
discounts and to market to the Participants including exclusive EquipNet
pricing specials at least four times a year to contracted Participants. All CEU
programs offered by Vendor are listed on EXHIBIT B and Vendor shall work with
EquipNet in developing additional CEU programs.
6. FINANCING. Vendor will offer a finance program to dealers comparable to
Invacare's programs. This will include dating as well as leases. For example,
on large purchases, an EquipNet member will be offered 90 to 180 days dating
from original delivery date with leasing option.
7. PURCHASING PROGRAMS. Vendor will support and market as part of its
marketing of its relationship with EquipNet the other programs and products in
EquipNet's purchasing program such as insurance, travel, office products,
telephone, printing, etc.
8. DISTRIBUTION. Vendor will work with EquipNet to establish a nationwide
distribution program to EquipNet's clients. This includes catalog development,
warehouse expertise, bar coding, special racking etc. so that Vendor and
EquipNet can capture the majority of the disposables business from EquipNet's
clients. Vendor will also be on-line with EquipNet to enable EquipNet to drop
ship from Vendor products to patients and Vendor will include an EquipNet
brochure or flier, as designated by EquipNet, in such packages which will be in
the name of EquipNet.
9. CATALOGS. Vendor will, at its cost, develop catalogs appropriate for
EquipNet's clients including a general product overview, a wound
care/diabetic/med/surg and a patient aids catalog. Four pages--outside and
insider front and back covers--will be custom for EquipNet. Vendor will be
sponsored in this as EquipNet's distribution partner. The diabetic/wound
care/med-surg with basic DME will be available within 6 weeks of the date
above.
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10. ADMINISTRATION FEE / REPORTING REQUIREMENTS. As payment for EquipNet's
development and administration of the Buying Program, Xxxxxx Field / Everest &
Xxxxxxxx agrees to the rebate the following:
YEAR 1
$2 million to $2,999,999 net sales 2.5% rebate
$3 million to $3,999,999 net sales 3.0% rebate
$4 million plus 4.0% rebate
YEAR 2
$4 million to $4,999,999 net sales 2.5% rebate
$5 million to $5,999,999 net sales 3.0% rebate
$6 million plus 4.0% rebate
In order to qualify for rebate, EquipNet must meet eighty percent (80%) of its
volume requirement. Such fee shall be paid to EquipNet quarterly within 30 days
of the end of each calendar quarter in respect of all Vendor's sales or leases
of Products to Participants during the preceding quarter (i.e., payment shall
be made by April 15 for January through March sales). Within 30 days of the end
of each month, Vendor shall furnish to EquipNet a list of each Participant's
purchase or lease of Products during the prior month which list shall be
furnished on hard copy as well as on Lotus or Excel diskette. Vendor shall keep
true and accurate books and records of all Products shipped and invoices billed
to Participants and EquipNet and it's auditors shall be entitled to examine
Vendor's books and records on the same.
11. EQUIPNET MEMBER REBATES. All EquipNet members who commit to purchase
eighty (80) percent of their products from Xxxxxx Field where Xxxxxx Field's
pricing is as competitive if not better than their existing pricing, excluding
respiratory, distributed products and brand requests, will receive an
additional one (1) percent at year end based on minimum annual volume of
$200,000 or less, or a two (2) percent rebate at year end on $201,000 or more.
12. VOLUME COMMITMENTS. The prices and discounts listed in EXHIBIT A are
predicated upon EquipNet members agreeing to purchase, as a group, first year
$4.0 million ($1,00,000 quarterly); second year $6.0 million ($1,500,000
quarterly).
13. DELIVERY PERFORMANCE GUARANTEE. Vendor will guarantee delivery
performance. Failure to ship order within 72 hours of order confirmation of
delivery date will result in additional one percent (1%) discount to the
EquipNet member for that order, to be taken from the net invoice amount due.
14. WARRANTIES; RISK OF LOSS; INSURANCE. All of Vendor's (and the
manufacturer's if different from Vendor) product warranties shall be made to
the Participants, all risk of loss shall be on the Vendor until shipments are
received, and
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Vendor acknowledges and agrees that EquipNet is not liable in any way
whatsoever to Vendor, to Participant's or to the ultimate user for defects,
risk of loss, injuries, damages, etc. and Vendor releases, indemnifies and
holds harmless EquipNet from the same. Vendor shall list EquipNet as an
additional insured on its product liability insurance and shall furnish such
certificate to EquipNet on the date hereof.
15. Non-Solicitation. Vendor acknowledges that through this Agreement, it
will have access to EquipNet's contracted clients consisting of insurance
companies, case management companies, third party administrators, self-insured
payors and others and that Vendor will be introduced to these clients through
regularly scheduled training in-services and educational materials. Vendor
acknowledges that it would be unfair to use such information and relationships
in a manner competitive with EquipNet and Vendor agrees that during the term of
this Agreement and for a one year period following the expiration of this
Agreement, it and its subsidiaries and affiliates will not solicit directly or
indirectly, EquipNet's clients unless such clients publicly solicit general
bids for such business in which case Vendor shall be free to respond such bids
but it shall pay EquipNet a fee on all Products sold to such clients equal to
5% of sales payable quarterly.
16. Termination. This Agreement shall be effective on the date hereof and
shall continue in force for two (2) years from the date hereof and shall be
renewed thereafter for successive one (1) year periods unless either party gives
the other party written notice of its decision not to renew at least 60 days but
not more than 120 days prior to the end of the one year period. Either party may
terminate this agreement for cause upon 30 days notice if such default is not
remedied within such 30 day period. If Vendor terminates this Agreement without
cause or EquipNet terminates this Agreement for cause, Vendor shall continue to
pay the fee to EquipNet on sales to Participants for the following one hundred
and twenty (120) day period. Cause shall mean the willful and intentional
failure of the other party to perform its agreements and duties hereunder.
17. General. This Agreement shall be governed by the laws of Pennsylvania
and shall be binding upon each party and their successors and assigns, provided
that an assignment of the rights and remedies by a party hereto without the
other party's consent shall be prohibited, and any assignment in violation of
this provision shall allow the other party to terminate this Agreement.
IN WITNESS WHEREOF, this Agreement has been executed by the parties as of
the date written above.
EQUIPNET, INC. VENDOR
By: /s/ 9/12/97 By: /s/ 9/12/97
------------------------- -------------------------
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EQUIPNET PRICING
OCTOBER 1, 1997
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LENGTH OF AGREEMENT: 10/01/97 - 09/12/99
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LEVEL VOLUME COMMITMENT
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1 $0 - $500,000 (BETTER)
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2 $500,001 - $1,000,000 (BEST)
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3 $1,000,001 + (BEST PLUS) REQUIRES INDIVIDUAL CONTRACT
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(DEALER MUST COMMIT TO RECEIVE BEST OR BEST PLUS PRICING)
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EVEREST & XXXXXXXX BETTER BEST
PRODUCT CATEGORY DISCOUNT DISCOUNT
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METRO POWER TRADE + 24% 26%
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ALL OTHER POWER TRADE + 27% 29%
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METRO TRADE + 44% 48%
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METRO LX TRADE + 33% 35%
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PREMIER, P2+, SPF II TRADE + 27% 29%
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BARRACUDA, NITRO
REACTOR TRADE + 13% 15%
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EPIC, RECORD TRADE + 21% 23%
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KUSCHALL/ACE TRADE + 9% 12%
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HOMECARE CHAIRS TRADE + 32% 34%
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SPECIAL/ULTRA BEDS TRADE + 4% 4%
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BED COMP/ACCESS TRADE + 32% 32%
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LABAC (LA) TRADE + 15% 15%
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ADVANTAGE PARTS (AA) TRADE + 8% 10%
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BETTER BEST
ITEM # PACK DESCRIPTION (EACH PRICE) (EACH PRICE)
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EVEREST & XXXXXXXX & XXXXX & XXXXX
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52004010/4110 1 VISTA W/C STD, FA & RFR 140.00 128.95
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52004420/4520 1 VISTA W/C STD. RDA & ELR 174.48 164.48
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51000480 1 TRAVELER W/C STD., 20" RDA/ELR 217.16 211.16
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1H000120/220 1 METRO W/C RDA/ELR 421.28 371.28
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51000495 1 TRAVELER 22" RDA/ELR 352.52 346.52
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1 PREM CLASSIC 24" RDA/ELR 346.52 398.00
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3A010420/420 1 LIGHTNING RDA/ELR 210.37 204.37
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51001420/1520 1 TRAVELER HEMI RDA/ELR 302.96 268.96
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51001480 1 TRAVELER HEMI 20" RDA/ELR 322.96 288.96
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51002420/2520 1 TRAVELER RECLN RDA/ELR 329.28 319.28
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768/5523-PKG 1 FULL ELEC BED PACKAGE 591.40 581.40
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768-5523 1 FULL ELEC BED ONLY 475.76 463.76
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XX0000-0 0 XXXX XXXXXX XXXX RAILS 51.00 43.00
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GF1500-180 1 MATTRESS 69.00 64.00
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COMMODES
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GF2075-2 2 0 X 0, XXXX, XXXXXXXXXX XXX,
W/BUCKET 28.56 26.56
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GF2095-2 2 STANDARD ADJUSTABLE HGT, ALUM,
W/BUCKET 28.56 26.56
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7
EQUIPNET PRICING
OCTOBER 1, 1997
BETTER BEST
ITEM # PACK DESCRIPTION (EACH PRICE) (EACH PRICE)
------ ---- ----------- ------------ ------------
GF1979-2 2 3 N 1, STEEL ADJUSTABLE HGT,
W/BUCKET & SPLASH GUARD 29.95 27.50
GF2090-2 2 X-WIDE, ADJUSTABLE HGT, W/BUCKET 65.43 64.21
GF2090-1 1 SAME AS ABOVE (1 PER CARTON) 72.00 69.00
GF1976-1 1 DROP ARM PADDED SEAT, STEEL,
W/BUCKET 78.85 75.85
GF1977-1 1 DROP ARM, STEEL, W/BUCKET 72.13 71.85
WALKERS 7/8" TUBING
XX0000-0 0 XXX-XXXXXXX, XXXXXXXXXX XXX. 27.00 24.00
GF1902-6 6 FOLDING 1 BUTTON ADULT 7/8" 24.08 23.50
GF1901-2 2 FOLDING 1 BUTTON JR. 7/8" 24.08 23.50
RP19020-1 1 4 1/2" WHEEL FOR 1902/1901 (1 PR.) 13.05 11.81
RP19060-1 1 3" SWIVEL WHEELS FOR 1902/1901 (1 PR.) 19.90 17.90
FOLDING 1" TUBING
GF1945-2 2 FOLDING ADJUSTABLE HGT. 1 BUTTON ADULT 28.25 25.50
GF1944-2 2 FOLDING ADJUSTABLE HGT. 1 BUTTON JR. 28.25 25.50
GF1946-2 2 FOLDING ADJUSTABLE HGT. 1 BUTTON
ADULT W/4 1/2" WHEELS 41.00 38.50
GF1905-2 2 FOLDING 2 BUTTON ADJUSTABLE HGT. 30.50 29.50
FOLDING 1" TUBING
GF1947-2 2 FOLDING ADJUSTABLE HGT. 1 BUTTON JR.
W/4 1/2" WHEELS 41.00 38.50
GF1909-2 2 DELUXE 2 BUTTON W/EXTRA WIDE FEATURE 36.00 35.00
RP19070-1 1PR 1 PAIR 4 1/2" WHEELS FOR 1" WALKERS 13.05 11.81
RP29090-1 1PR 1 PAIR 3" WHEELS FOR 1" XXXXXX 13.05 11.81
RP19090-1 1PR 1 PAIR 5" SWIVEL WHEELS "MAG HUB" FOR
1" WALKERS 41.50 39.50
RP19320 1PR 1 PAIR XTRA LONG-EXTENDS XXXXXX LEGS
4" AND ADJUSTS IN 1" INCREMENTS FOR
1" WALKERS 12.50 11.25
RP29050-1 1PR 1 PAIR 3" SWIVEL WHEELS FOR 1" WALKERS 19.25 17.90
CANES
GF5940-6 6 ADJUSTABLE, ALUM. OFFSET 7.12 6.02
GF5940-1 1 ADJUSTABLE, ALUM. OFFSET (1/CARTON) 8.20 7.25
GF5942-6 6 DELUXE, ADJUSTABLE, ALUM. OFFSET, BLACK 7.95 6.95
XX0000-0 0 XXXX XXXX, XXXXXX, LARGE BASE 14.96 12.50
XX0000-0 0 XXXX XXXX, XXXXXX, SMALL BASE 14.96 12.50
GF5946-2 2 PYRAMID CANE 28.50 27.50
BATH SAFETY
GF1992-2 2 BATH SEAT, W/O BACK, ADJUSTABLE,
ASSEMBLED 17.45 16.20
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EQUIPNET PRICING
OCTOBER 1, 1997
BETTER BEST
ITEM # PACK DESCRIPTION (EACH PRICE) (EACH PRICE)
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GF1992KA-1 1 BATH SEAT, W/O BACK, ADJUSTABLE, KD 18.50 17.20
GF1993-2 2 BATH SEAT, W-BACK, ADJUSTABLE
ASSEMBLED 24.44 22.00
GF1993KA-1 1 BATH SEAT, W/BACK ADJUSTABLE, KD 24.75 23.00
GF6902-1 1 RAISED SEAT, BLOW MOLDED,
CONTOURED 14.10 12.50
GF6909-6 6 RAISED SEAT, BLOW MOLDED,
CONTOURED 9.20 8.00
GF6909-1 1 RAISED SEAT, BLOW MOLDED 1 PER
CARTON 10.00 8.95
GF6905-1 1 RAISED SEAT, BLOW MOLDED W/CLAMP 18.00 16.90
BATH SAFETY
GF6907-1 1 RAISED SEAT, W/CLAMP AND ARMS 30.00 28.50
GF6908-1 1 EXTRA-WIDE RAISED SEAT W/CLAMP AND
ARMS 34.50 32.50
GF1995-1 1 TRANSFER BENCH, ADJUSTABLE 38.50 35.50
GF6004-2 2 TOILET SAFETY FRAMES 1 PAIR 19.00 17.50
IV POLES
GF7012-1 1 IV POLE 21.25 20.25
OVERBED TABLES
GF8900-1 ECONO, NON-TILT, HGT. ADJUSTABLE 51.32 50.00
GF8901-1 NON-TILT, EASY TOUCH HGT. ADJUSTABLE 64.95 62.95
GF8905-1 TILT, EASY TOUCH, HGT ADJUSTABLE 82.00 79.00
PATIENT LIFT
GF6685-1 PATIENT LIFT W/CHAINS 494.80 482.00
GF112-C-LC CANVAS SLING 29.70 29.00
GF113-C-LC CANVAS SLING W/OPENING 32.67 32.67
GF113-N-LC NYLON SLING W/OPENING 22.90 22.90
TRAPEZE
GF6672-1 TRAPEZE BAR 74.00 71.00
GF6677-1 TRAPEZE BASE 92.00 89.90
APP
AQ2000 DELUXE APP PUMP & PAD 64.80 55.00
AQ2000-1 PAD ONLY W/TUBES 14.00 13.00
AQ1000 APP PUMP & PAD 49.50 48.00
ALA 5500 LOW AIR LOSS MATTRESS EO277 1470.00 1400.00
TENS XXXX
XX-0 XXXX XXXX 0 LEAD 27.35 26.95
LIFT CHAIRS
PR-CAPRIFBC 2 POSITION RECLINER, FABRIC,
COPENHAGEN 304.90 304.90
PR-CAPRIFBM 2 POSITION RECLINER, FABRIC. MAUVE 304.90 304.90
PR-CAPRIFBT 2 POSITION RECLINER, FABRIC. TAUPE 304.90 304.90
9
EQUIPNET PRICING
OCTOBER 1, 1997
BETTER BEST
ITEM # PACK DESCRIPTION (EACH PRICE) (EACH PRICE)
--------------------------------------------------------------------------------------------
PR-355FBC 3 POSITION RECLINER, FABRIC,
COPENHAGEN 393.00 393.00
PR-355FBM 3 POSITION RECLINER, FABRIC, MAUVE 393.00 393.00
PR-355FBT 3 POSITION RECLINER, FABRIC, TAUPE 393.00 393.00
