THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700



July 15, 1999

02 05 02 61 99071501




Mr. Larry Smith
Manager
Service Department
S & C Ford
450 Rhode Island Street
San Francisco, CA 94107-2320

Subject: S&C Invoice #314868 for Service on May 7, 1999
Credit Offer of $408 Accepted

Dear Larry,

S&C's offer, in your letter on July 8, of $408 credit for work on May 7, is accepted. Thanks for taking the time to achieve common understanding and a mutual solution. Good business results from good intelligence.

Please issue payment promptly to conclude this matter.

We still need the product specs, and warranty on the Firestone tires you installed. Your letter today submits a General Tire warranty, which may be essentially the same; but, being prepared with the right documents usually pays off in the long run.

Your thought about changing service vendors may be the best course, despite evident advantages for continuing with S&C. Hopefully constructive business relations can continue to emerge under ideas for a vendor/customer partnership model. Just let us know how S&C wants to proceed.

We agree that S&C's service department has excellent experience and qualifications. Work with other vendors shows that S&C is at the top in this strongly competitive market, despite the crushing pace of information overload that makes it hard to maintain alignment between service history, commitments, requirements, and the actual work performed, as occurred on May 7. Fortune magazine reports in its recent June 21, issue that our leading CEOs at GM, IBM, AT&T,.... are being overwhelmed by these horrific forces. Meeting the challenge requires something extra.

Clearly, Quality Care is more than a slogan at S&C.

That's a powerful statement which too few can make during a super-heated economy, when everyone is overworked and stressed, as reported by Fortune.

Millie and I want to honor S&C's commitment. Upon receipt of payment from S&C, we will endorse the check back to S&C for the Christmas fund, or any worthy cause to benefit the staff. It is not much, but, as they say, it's the thought that counts.

Sincerely,

THE WELCH COMPANY



Rod Welch