Oticon Co-op Program
Co-op Agreement Terms and Conditions
Version #2
Effective Date: 12/01/2023
WHEREAS,
Oticon, Inc. (“Oticon”) desires to offer price reductions to its customers in conjunction with the customer’s purchase of Oticon products,
WHEREAS, Oticon shall offer such price reductions in the form of a cooperative (“Co-op”) agreement (this “Co-op Agreement”).
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and promises contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
Agreement
Program coverage and overview
Customer agrees to purchase the quantity(ies) of Product(s) (defined below) set forth in the Total Instruments section (“Product Quantity Commitment”) of the Oticon Co-op Program Purchase Agreement (“Co-op Purchase Agreement”), within the time frame specified in the Total Month section of the Co-op Purchase Agreement. If the customer fails to meet their Product Quantity Commitment, Oticon shall invoice customer for the remaining balance, and customer shall pay such remaining balance within thirty (30) days of receipt of such invoice.
Products offered under this Co-op Agreement may include, but not be limited to, hearing aid demonstration instruments, diagnostic equipment, various electronics used for programming and hearing aid demonstrations, service subscriptions to support practice logistics and marketing, patient education, patient scheduling, and annual diagnostic service calibration (collectively, the “Product(s)”). Additional Products may count towards the Product Quantity Commitment other than those listed here or on the Co-op Agreement form. Customers should contact their Oticon representative to find out if a Product is eligible to count towards the Product Quantity Commitment.
The warranties for Products purchased pursuant to this Co-op Agreement are located at oticon.com/terms-and-conditions-of-sale
Payment
Customer shall issue payment for Products within thirty (30) days of receipt of the invoice. Oticon shall pay the vendor directly for Products purchased, and customer shall pay Oticon the amount approved and invoiced by Oticon.
Program Participation Requirements
To participate in the Co-op program and receive reimbursement, the customer must: (i) ensure their account is current; (ii) submit the Co-op Purchase Agreement; and (iii) purchase a minimum of six (6) Products per month for six (6) months.
Once the Co-op Agreement form has been submitted and accepted by Oticon, Product purchases will begin to count towards the Product Quantity Commitment. Initially, in order for Product purchases to count towards the current month’s Product Quantity Commitment, the Co-op Purchase Agreement must be submitted by the 15th of the month. After such initial Co-op Purchase Agreement submission, the month a Product is purchased in, will be the month the purchase counts towards the Agreement. Customers may track their purchases by viewing their MyOticon Account Overview page or by calling their Oticon representative.
Oticon will notify customers of any changes to the Co-op Program and eligibility requirements by written notification within thirty (30) days of the change.
Early fulfillment
Customers may fulfill their obligations under their Co-op Purchase Agreements prior to the time frame set forth in the Total Months section of the Co-op Purchase Agreement. However, even if a customer fulfills their Co-op Purchase Agreement obligations prior to the end of the month, the customer will not be permitted to open a new Co-op Purchase Agreement until the first day of the following month.
Exclusions
Units that do not qualify in a Co-op Agreement are those funded with State or Federal monies, Managed Care programs, and other non-profit and discount groups, such as: (i) any federal or state subsidized programs, including, but not limited to, Medicare, Medicaid, VA, VA Community Care/VA Choice, and Voc Rehab, (ii) any unit purchased through a Managed Care entity, including, but not limited to: Nations Benefits/Nations Hearing, EPIC/United Hearing, TruHearing Choice, Hearing Care Solutions, HearUSA, AudioNet, AZ Hear Care Network, Amplifon Hearing Health Care, Simpli Hearing, Birdsong Hearing Benefits, Start Hearing, Hearing in America, Great Hearing Benefits, and United Hearing – AARP, Your Hearing Network, and (iii) non-profit purchases, unless otherwise contractually agreed to. Other exclusions may apply, and customers should contact their Oticon Representative to find out more information regarding exclusions.
Oticon Products that are purchased as part of a promotional offer do not count towards the Product Quantity Commitment.
Customers enrolled in this Co-op Program will not be permitted to participate in the Oticon Business Enhancement Support (“BES”) Program or the Oticon Business Enhancement Support PLUS Rewards Program (BES+) while they are participating in the Co-op Program. If a customer is enrolled in the BES Program or BES+ Rewards Program prior to enrolling in the Co-op Program, once the customer’s Co-op enrollment is active, Products purchased will only count towards the Co-op program Product Quantity Commitment, and no purchases will be eligible to count towards the BES Program earning tiers and accrual or the BES+ tier attainment or points earnings. After the customer has fulfilled their obligations under their Co-op Purchase Agreement, customer’s BES Program or the BES+ Rewards Program will re-activate the following month.
Terms and Conditions
1. Incorporation By Reference. The Co-op Agreement, introductory paragraph and Recitals set forth Above, and the [FORM] are hereby made a part of this Agreement and incorporated herein by reference.
2. Definitions.
2.1 “Anti-Kickback Statute” means the federal health care program anti-kickback statute, set forth at 42 U.S.C. § 1320a-7b(b).
2.2 “Eligible Purchase” means the purchase of a Product for dispensing to a Patient.
2.3 “Federal Health Care Program” has the meaning set forth at 42 U.S.C. § 1320a-7b(f) and includes Medicare, Medicaid, TRICARE, and certain other government-funded health care programs and plans.
2.4 “Net Purchases” means the aggregate dollar amount of Eligible Purchases, net of returns, made by, or on behalf of, Provider.