Benzinga | Jul 14, 2020 09:14AM EDT

Dynatronics 8-K Shows Co. Entered Master Service Deal With Millstone Medical Outsourcing To Provide Fulfillment, Distribution Services For 3 Years, No Terms Disclosed

Effective July 8, 2020, Dynatronics Corporation (the "Company") entered into a Master Service Agreement ("Agreement") with Millstone Medical Outsourcing, LLC ("Millstone") to provide fulfillment and distribution services. Pursuant to the Agreement, Millstone will store and distribute products as directed by the Company and the Company will pay Millstone fees at prices and on terms provided in the Agreement.



The initial term of the Agreement is for three years from the effective date. The Agreement will automatically renew for one-year terms thereafter unless terminated by either party in accordance with its terms. Either party may terminate the Agreement with or without cause upon 180 days' written notice. Either party may terminate in the event of material breach by the other party, following 60-days' written notice and opportunity to cure, or immediately upon written notice in the event of a material breach incapable of cure that is resulting in continuing damage or loss. Either party may also terminate immediately with written notice in the event of the failure to obtain or renew any necessary governmental permit, license or approval, or in the event of the bankruptcy or insolvency of the other party.



Management believes the outsourcing of these distribution capabilities to Millstone is consistent with the Company's objectives of streamlining its operations, continuing to align operating expenses with current revenue levels and, where advantageous, producing additional benefits from a reduction in workforce and related costs.