Exhibit 99.1
JAYHAWK
MEDICAL ACCEPTANCE CORPORATION
January 29, 1998
Re: Amendment to Health Care Provider Agreement ("Agreement")
Dear Doctor:
Each month, Jayhawk Medical Acceptance Corporation makes a substantial
investment in a national advertising campaign designed to create awareness of
the availability of patient financing. In order to maximize the effectiveness of
these advertising expenditures, we will implement a change in our program,
effective February l6, 1998.
You will notice the amount calculated for payment to you on Tier I and Tier
II Contracts will be increased by 8% of the amount financed. We will then
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subtract that 8% increase and transfer that amount into an advertising fund.
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All of these funds will be designated for advertising expenditures.
Although this change will increase the Purchase Price, as defined in the
Agreement, for a Contract, it will not change the net amount of the Purchase
Price Payment you are currently receiving. We will provide detail similar to the
example below on each check.
TIER I TIER II
Amount of Contract 3,000 3,000
Payment to Provider - 60% or 50% 1,800 1,500
Plus 8% of Contract + 240 + 240
Less 8% of Contract - 240 - 240
Net check to Provider 1,800 1,500
Accordingly, in accordance with Section 5.9 of the Agreement, between
Jayhawk Medical Acceptance Corporation ("JMAC") and your practice, the Agreement
is hereby
amended, effective upon your submission to JMAC of a Contract, as defined in the
Agreement, for purchase, as follows:
1. To add a new Section 5.10 to the Agreement to read in its entirety as
follows:
5.10 Advertising Payment. With respect to each Contract accepted by
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JMAC for purchase on or after February 16, 1998, Provider
irrevocably directs that such portion of the Purchase Price for
such Contract as shall equal 8% of the amount financed by such
Contract be paid, on Provider's behalf and in lieu of to
Provider, to Jayhawk Medical Advertising Fund ("Advertiser").
Provider and JMAC acknowledge and agree that Provider shall be
deemed for all purposes of this Agreement to have received from
JMAC any amounts paid to Advertiser in accordance with the
immediately preceding sentence for and in consideration of the
related Contract purchased by JMAC and that there are no third
party beneficiaries to this Agreement
2. The Agreement, as amended hereby, shall continue in full force and
effect. The Agreement, as amended hereby, contains the complete
agreement of the parties thereto, and supersedes any and all prior
agreements, whether written or oral, and prior courses of dealings.
Please note, pursuant to Section 5.9 of the Agreement, you will be bound by
the amendment to the Agreement set forth above upon your submission to JMAC of
any retail installment sales contract for purchase.
We believe this program change will result in more effective utilization of
our advertising resources. Please direct any questions you may have in this
regard to our Provider Services Department at (000) 000-0000.
Yours very truly,
/s/Xxxxxxx X. Xxxxxxxx
Xxxxxxx X. Xxxxxxxx
President
