Membership Terms & Conditions

By completing and signing the related membership letter of participation (“LOP”) and related authorization you are representing that you are authorized to enroll the business identified as a member of Source1 Purchasing, LLC (“S1”).  In addition, you are agreeing that the operator shall be subject to S1 membership terms and conditions as set forth below:

  1. As a member of S1 you hereby agree to provide S1 with sufficient authorization to access your purchase level data so that S1 may secure for you the benefits of membership in S1 (the “Member”).  Membership benefits include, but are not limited to, preferred pricing with manufacturers and distributors as well as rebates on Member’s purchases, when available (the “Membership Benefits”).  In the event your distributor or other supplier requires Member to sign an authorization that S1 determines to unreasonably restrict the use of Member’s purchase level data, we will advise you of the same and supply you with an authorization directing your distributor or other supplier to release such data under terms that you and S1
    determine are appropriate.  In addition, Member agrees to work with its distributor to ensure that any deviated price contracts available through S1 are loaded into distributor’s order catalogue to ensure that this valuable membership benefit is available to Member.
  2. The individual completing the membership registration (the “Applicant”) and executing the related documentation hereby states that he or she is an authorized agent, owner or employee of the business identified in the registration and acknowledges that they have the requisite authority to enter into a membership relationship with S1. To the best of Applicant’s knowledge, all information provided with respect to Member is correct.  If S1 should discover that the information provided was not correct, S1 has the right to cancel or amend Member’s participation in any and all Membership Benefits and other programs available through S1.
  3. The Applicant acknowledges that any current programs that Member wishes to continue through a direct relationship have been disclosed and Member understand that they will not be able to participate in the Membership Benefits relative to those direct programs.  Further, if S1 discovers that a Member has a direct program that has not been disclosed, Member hereby authorizes S1 to keep the Member on the S1 program with respect to the same.  Once notified of the conflicting direct program, Member hereby agrees to cancel such direct program five (5) business days and agrees to repay any rebates monies Member may have earned related to such direct programs.  If, after notification, Member fails to issue a termination notice of such direct program within (5) five days, Member hereby authorizes S1 to issue such termination on Member’s behalf.
  4. By signing the S1 membership registration, Applicant authorizes S1 to enroll the Member in all Membership Benefits and related programs.  Member authorizes S1 to contact all suppliers listed within Member’s registration in order to obtain product level data and reporting for the purpose or price verification, volume allowances, opportunity analysis and any further purposes for which S1 uses such data as outlined in these Membership Terms and Conditions.  Applicant agrees to an acknowledges that S1 may receive financial consideration from certain program providers based upon my participation through the S1 Membership Benefits.
  5. In order to secure the S1’s Membership Benefits, Member agrees to participate in periodic business reviews conducted by the Client Manager to review and receive savings opportunities as they are identified, in support of S1’s strategic partners’ products.  Member agrees to consider, sample and convert a portion of its purchasing to products presented as determined by Member based upon its total market basket purchases. Member further agrees to request that their distributor or other suppliers stock such products when necessary.
  6. Member acknowledges that while some S1 Membership Benefits, including deviated pricing and preferred pricing through distributors are made available to Member at the time it purchases qualifying products, where applicable, it takes S1 approximately six (6) to (9) months to secure those rebates available on Member’s purchases.  In this regard, S1 traditionally remits rebates to Members on either a quarterly or annual basis depending on the volume of qualified purchases made by the Member.
  7. S1 reserves the right to change the S1 Membership Terms & Conditions at any time. The current S1 Membership Terms & Conditions shall be available at and shall be Member’s responsibility to be aware of and comply with the S1 Membership Terms & Conditions.
  8. S1 reserves the right to suspend the Membership Benefits and/or terminate the Member’s membership with ninety (90) days advance written notice of the suspension and/or termination of membership.
  9. In the event that Member wishes to terminate its membership with S1, Member must provide ninety (90) days advance written notice of the termination to S1. Such termination shall not be effective until the expiration of the ninety (90) days advance written notice to S1.
  10. Member acknowledges that S1 aggregates purchasing data collected from the Members, removes any personally identifying information related to Member or its location and uses the data to help educate manufacturers on purchasing trends and other relevant information regarding the purchase of their products. No personal identifying information that could be associated with the Member shall be provided in such instances. Member expressly consents to S1’s use of the data for this purpose.
  11. Member acknowledges that some suppliers pay an administrative fee to S1 with respect to its administration of the programs offered by S1 and/or the supplier. Member further acknowledges that S1 shares in a portion of the rebates processed and received on Member’s purchases in return for providing the Member access to S1’s rebate programs, maintaining the rebate program and related contracts, collecting the Member’s purchase level data from its suppliers, reporting those purchases to S1’s strategic partners and manufacturers, and remitting the rebate revenue to Members.
  12. To the extent, Member is a healthcare facility Member acknowledges (i) that S1 will receive payment of fees for administrative services it provides to one or more vendors based on products or services purchased by Member and its facilities (“GPO Fees”), (ii) that the percentage of GPO Fees S1 shall receive will be three percent (3%) or less, on an annual basis, S1 shall disclose to the Member the amount of GPO Fees it received from each vendor as a result of Member’s purchases, and (iii) products purchased by Member may qualify for a rebate known as a “discount” pursuant to 42 CFR § 1001.952(h). While the amount of any such rebate is not known as this time, Member may have an obligation to disclose the receipt of any such discount to Medicare, Medicaid or other Federal programs utilized by Member in the purchase of the products.
  13. Member hereby releases and forever discharges any claims, demands, and damages (actual and consequential) of every kind and nature, it has against S1, its officers, directors, shareholders, employees, agents, and assigns with respect to the Member’s membership in S1, the Membership Benefits, any claims stemming from S1’s receipt and/or use of Member’s purchase level data and/or any claims associated with Member’s purchases of products from distributors, suppliers and/or manufacturers.
  14. S1 provides the services associated with the Membership Benefits on an “AS IS” basis and hereby disclaims all warranties express or implied with respect its services and the Membership Benefits, including the warranties of merchantability and fitness for a particular purpose.  S1 shall have no indirect or consequential damages associated with any claims related to its services, Member’s membership in S1, the Membership Benefits, any claims stemming from S1’s receipt and/or use of Member’s purchase level data and/or any claims associated with Member’s purchases of products from distributors, suppliers and/or manufacturers.  In no event shall S1’s liability for any claims asserted against it with respect to its services, the Membership Benefits, S1’s receipt and/or use of Member’s purchase level data and/or any claims associated with Member’s purchases of products from distributors, suppliers and/or manufacturers.
  15. Member shall indemnify and hold S1 and their respective affiliates, agents, representatives, officers, directors and employees (the “Indemnitees”) harmless from and against any and all claims, losses, liabilities, judgments, penalties, interest, damages, costs and expenses whatsoever (including reasonable attorneys’ fees,) relating to acts or omissions of Member which relate in any way to this Agreement. S1 and Member are independent contractors, and no agency, partnership, joint venture, employee-employer or franchiser-franchisee relationship is intended or created.