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EXHIBIT 10.12
[HealthTronics Letterhead]
July 20, 1998
Xx. Xxxxxx XxXxxxx
Servicetrends, Inc.
0000 Xxxxxxx Xxxx Xxxxx, XX
Xxxxx 000
Xxxxxxxx, XX 00000
Dear Xxxxxx:
Per our recent conversation, please allow me to reiterate in writing the
revised terms of the service agreement between Servicetrends and HealthTronics
According to the original LithoTron Service Agreement (970076) signed and dated
October 14, 1997, paragraph F of Exhibit A states that both HealthTronics and
Servicetrends must provide ninety (90) days notice of cancellation after the
first quarter of the contract period has elapsed. Under the REVISED
cancellation policy, Servicetrends is still required to provide 90 days written
notification of its intent to cancel the service agreement, however
HealthTronics is only required to provide thirty (30) days written notice of
cancellation.
Should Servicetrends choose to cancel the service agreement with HealthTronics,
Servicetrends GUARANTEES that the quality of service being provided to
HealthTronics will not decrease during the final 90 days. If during the final
90 days of the service agreement, HealthTronics judges the quality of service
provided by Servicetrends to be unsatisfactory (as determined by its LithoTron
and OssaTron customers), Servicetrends agrees to refund HealthTronics'
quarterly service payment.
Also, if Servicetrends cancels the service agreement with HealthTronics,
Servicetrends agrees to return the entire inventory of LithoTron and OssaTron
parts to HealthTronics within 24 hours at no charge. Servicetrends acknowledges
that the stock of LithoTron and OssaTron parts in inventory at Servicetrends'
facility is the property of HealthTronics and that the $11,000 annually per
machine which Servicetrends pays to HMT is solely to cover the cost of HMT
repairing, replacing and replenishing inventory used by Servicetrends to
maintain the LithoTron and OssaTron units in North America.
Should these terms be suitable to you, please sign and date below and return at
your earliest convenience. Please keep a copy for your records. If you have any
questions, please feel free to call me.
Kindest regards, Accepted by Servicetrends
/s/ Xxxx Xxxxxxx /s/ Xxxxxx XxXxxxx
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Xxxx Xxxxxxx Signature
Executive Vice President C00 7/21/98
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Title Date
