TS03 Inc Trust Units TSTIF

The Interim Getinge Resale Agreement

[Drrwong]

I am attaching a link to a SEDAR filing, which contains the new interim contract between TSO3 and Getinge.

This is a legal document, so it does provide certain protections to both parties.  Personally, I don't see anything that might signal the end of this relationship, as Getinge has asked for things that any party would want if they plan to stand in this:
-  A list of hospitals that TSO3 cannot sell to (50% of market)
-  Getinge gets to keep and service its existing/future VP4 customers
-  TSO3 has to guarantee to provide upgrades to Getinge's inventory (Getinge paying the cost BTW)

Also interesting is Getinge is technically still bound by the purchase minimums in the original agreement, although that number would be renegotiated in the new contract.  With only 100 VP4s left in Getinge's inventory after the resale agreement, they will likely put a PO in 2H18 even if they just maintain the 20/quarter pace that they planned for 4Q17.  This is why the Quebec plant is still running at a full schedule??
-  I understand they might be doing upgrades at Quebec right now, but shouldn't take too long to upgrade 30 machines (initial batch from Getinge)??

I guess we will get a glimpse of what's going on from their RBC presentation...


Link:  under Feb 2/18, "Other Material Contracts"
https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00016125