Exhibit 10.4
October 14, 1997
AGREEMENT
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AGREEMENT made as of the 22 day of October 1997 between PLAYBOY ENTERPRISES,
INC., a corporation organized and existing under the laws of the State of
Delaware, having its principal place of business at 000 X. Xxxx Xxxxx Xxxxx,
Xxxxxxx, Xxxxxxxx 00000 (hereinafter called "Publisher"), and QUAD/GRAPHICS,
INC., a corporation organized and existing under the laws of the State of
Wisconsin, having its principal place of business at W224 X0000 Xxxxxxxxxxxx
Xxxx, Xxxxxxxx, Xxxxxxxxx 00000 (hereinafter called "Printer").
WITNESSETH
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Publisher and Printer hereby mutually agree as follows:
ARTICLE 1 - EXHIBITS
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1.01 This Agreement includes the following Exhibits which are attached
hereto and made a part hereof:
EXHIBIT A - Contract
EXHIBIT B - Manufacturing Specifications
EXHIBIT C - Pricing Specifications
EXHIBIT D - Paper Requirements
EXHIBIT E - Pro Forma
EXHIBIT F - Holiday and Production Schedule
EXHIBIT G - Paper Specifications/Shipping
EXHIBIT H - Sample Issues of Magazines
ARTICLE 2 - TERM AND TERMINATION
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2.01 This Agreement shall commence on December 1, 1997, covering "the
Work" (as hereinafter defined) on the February, 1998 issue of the "Magazine",
(as hereinafter defined) and shall continue for a term of approximately five (5)
years (from the date of commencement through November 1, 2002, production for
the January, 2003 issue of the "Magazine") unless terminated prior thereto
pursuant the any provisions hereof.
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Publication Contract
October 14, 1997
Page 2
2.02 If Printer shall fail in any material respect to perform the Work
in accordance with the standards or schedules set forth in the Exhibits, except
for (i) any failure caused by Publisher's failure to meet any of its obligations
under the Production Schedule, or (ii) any failure caused by Publisher's
original material, the Publisher shall have the right to terminate this
Agreement, pursuant and subject to the following provisions: Publisher shall
give Printer written notice specifying in detail the failure or failures it
claims, if such failure or failures are not cured by Printer within completion
of production of the next two (2) issues after receipt of Publisher's notice and
such failure or failures are material, Publisher shall have the right to
terminate this Agreement by giving Printer written notice to that effect, in
which case this Agreement will terminate thirty (30) days thereafter. In the
event of such termination, Publisher shall be obligated to make payments to the
Printer for all undisputed amounts then due and owing and for work in process.
2.03 Upon giving notice of the termination of this Agreement, Publisher
shall be entitled to remove all completed work, work in process, proofs, film,
standing type, plates, paper, and other materials and supplies of Publisher in
Printer's possession and Printer shall assist Publisher in removing same.
ARTICLE 3 - DEFINITIONS
3.01 The following definition shall apply to words used in this Agreement,
unless the context specifically requires otherwise:
(a) The term "composition" means the process of preparing the copy
or text materials for other processes.
(b) The term "binding" means to gather body signatures, furnished
inserts, if any, and covers, saddle wire stitch or perfect bind them and
trim to size.
(c) The term "presswork" means printing in one (1) to five (5) colors
per page produced on offset or gravure presses with the printed pages
delivered from the press in folded sections.
(d) The term "late-closing form" means four (4) color and five (5)
color presswork printing and closing on a date to be mutually agreed upon
for the monthly issue of Magazine.
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Publication Contract
October 14, 1997
Page 3
(e) The term "Printer's plant" means the existing plants operated by
Printer in Pewaukee, Sussex and Lomira, Wisconsin, including any additions
to such plants as may be mutually agreed upon.
(f) The term "regular issue" means any issue of the Work which is
saddlewire stitched or perfect bound.
ARTICLE 4 - WORK
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4.01 Subject to the provisions of this Agreement, Publisher agrees to pay
Printer for, and Printer agrees to perform for Publisher at Printer's plant the
following (herein collectively referred to as "the Work"): prepress service,
subject to quality, pricing and schedule, (including four (4) color editorial
separations, stripping, ad handling, matchprints, final films) platemaking or
cylinder engraving, press work (including gravure), binding, mailing and
delivery to common carriers in connection with Publisher's magazine entitled,
PLAYBOY (herein referred to as the "Magazine") at the prices set forth in
Exhibit C.
However, Publisher shall, with the exception of minor composition performed
by Printer, arrange for composition to be done by its own employees or third
parties, provided that furnished film and/or digital files are delivered to the
Printer in time to meet the Production Schedule set forth by the Publisher.
4.02 Printer warrants that it has sufficient space and equipment capable
of producing the Work. It is understood that from time to time certain issues of
the Magazine may exceed Printer's press capacity; in which case Publisher, after
consulting with Printer, shall have the option to subcontract such excess to
another printer without liability to Printer under the terms of this Agreement.
4.03 Printer agrees to furnish all necessary materials and supplies for
the Magazine, except those which Publisher specifically agrees to furnish
under this Agreement or in a signed amendment hereto.
4.04 Subject to the limitation of Printer's binding equipment, which
limitation does not apply to or include any of the inserts that may be
specified in Exhibit B, Publisher shall have the right to supply
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Publication Contract
October 14, 1997
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Printer, in a form suitable for binding according to Printer's specifications,
one (1) or more pre-printed editorial or advertising inserts supplied by the
Publisher or Publisher's advertisers for insertion into the Magazine. Such
inserts may be furnished up to sixty (60) days prior to scheduled binding at no
additional storage fees. Additional costs resulting from the use of inserts will
be billed to Publisher in accordance with the prices in Exhibit C, or if such
Prices are not included in Exhibit C, at the prices agreed to by Printer and
Publisher in writing prior to the printing of the inserts and their delivery to
Printer. Such prices shall be developed using the same methodology and criteria
as was used to establish the prices set forth in Exhibit C.
4.05 The print size of each issue of the Magazine shall be 8-1/8 inches by
10-7/8 inches with unrestricted bleed design. However, Publisher shall have the
right to change the print size, provided that the new print size is within the
capabilities of Printer's equipment.
4.06 Printer shall have the right, with the prior written approval of
Publisher, to transfer the Work, in whole or in part, to another plant of
Printer. Publisher will give its approval if it is reasonably satisfied that
standards of quality, speed and service will be maintained or improved, and that
such transfer will not increase prices to Publisher or add to the cost or impair
the operating efficiency of Publisher's Editorial and Circulation Departments.
If the transfer or change-over of the Work from one plant to another should
result, in the exercise of Publisher's reasonable judgment, in lowering of
quality, speed or service, Printer agrees promptly to return such Work to the
plant previously producing the same, at no cost to Publisher.
ARTICLE 5 - GUARANTEE AS TO QUALITY
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5.01 Printer guarantees that the Work will be performed in a professional
manner and in accordance with the Exhibit B (Manufacturing Specifications) and
the Exhibit C (Pricing Specifications), subject to the provisions of Article 12
(Unavoidable Delays) hereof. Printer guarantees that the quality of the Work
performed by Printer shall be consistent with the highest standard of commercial
printing and shall be at least equal to the quality evidenced by the sample
issues of the Magazine attached hereto as Exhibit H. Once each calendar year
Publisher may substitute new sample issues to be attached as Exhibit H.
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Publication Contract
October 14, 1997
Page 5
5.02 In the event Publisher must grant a credit or forego billing to an
advertiser for advertising placed because of Printer's error or inferior
printing quality, then Publisher will receive a credit from Printer equivalent
to the cost of producing the page or pages involved. As used herein, the term
"cost" shall include Publisher's and Printer's costs for plates, cylinders,
presswork, ink, binding, labeling, mailing, packaging, postage, shipping, and
paper and Printer's charges to Publisher for composition and preparatory. In no
event shall any credit be less than the costs attributable to the portion of the
page involved and no more than the amount credited to the advertiser.
5.03 Publisher has the right from time to time to have a representative in
Printer's plant to inspect the various products that are manufactured hereunder.
Publisher's representative may inspect the quality of printing and in conference
with Printer's supervisors or others in charge may suggest for Printer's
consideration corrections in any work which, in the opinion of such
representative, does not conform to the standards of quality established
hereunder- Publisher shall neither assume any liability nor be deemed to have
waived any default by any suggestion, or the absence thereof, of its plant
representative.
5.04 All claims for alleged defects shall be made by Publisher within
sixty (60) days of the Publisher's off sale date of the issue containing the
defect. Printer's liability shall be limited to the stated selling prices
contained in Exhibit C based on a cost per page or fractional page for paper,
printing and binding, but in no event will include special or consequential
damages.
ARTICLE 6 - QUANTITIES
6.01 The number of copies to be delivered by Printer shall not be less
than the quantity ordered by Publisher; however, an overrun of up to one-half of
one percent (.5%) for each issue of the Magazine shall be allowed and paid for
by Publisher at the additional per thousand cost set out in Exhibit C. There
will be no underruns.
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Publication Contract
October 14, 1997
Page 6
6.02 Publisher shall furnish to Printer on or about December 1st of each
year a forecast for the following calendar year, including the number of copies,
number of pages, and the number and dates of the issues of the Magazine.
7.01 Printer shall perform the Work hereunder at Printer's plant in
accordance with the procedures, quality standards, and equipment specified in
the Manufacturing Specifications set forth in Exhibit B, as may be amended and
mutually agreed upon from time to time.
7.02 Printer shall produce the Work hereunder in accordance with the time
limits of the Production Schedule set forth by Publisher, as may be amended and
mutually agreed upon from time to time.
7.03 Publisher shall furnish and/or return promptly all copy
specifications, artwork, dummies, sketches, proofs, copies, pasteups, films and
other material necessary for the timely performance of the Work by Printer.
Delay in furnishing or returning said materials necessary to production could
result in an extension of scheduled delivery dates or additional charges for
cost of accelerated production at regular overtime rates.
ARTICLE 8 - PAPER AND INK
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8.01 Publisher shall furnish F.O.B. Printer's plant in Wisconsin cover and
text paper in accordance with the paper requirements set forth in Exhibit D in
rolls, prepared and indentified in accordance with the reasonable mechanical
specifications and delivery requirements of Printer as set forth in Exhibit G.
If substandard and/or defective paper is used or received by Printer which
adversely affects or, if used, might reasonably adversely affect runability or
printability, Printer will provide prompt notification to Publisher, by
telephone, upon discovery of such substandard or defective conditions,
confirming such notification to Publisher in writing within five (5) business
days, if, after such telephone notification, Publisher requests Printer to
continue using or to use said paper to perform the Work and Printer incurs extra
cost as a result thereof, said cost will be charged to and paid by Publisher.
Cores shall remain the property of Publisher and, if not damaged so as to be
unusable, shall be loaded in cars and returned to the respective xxxxx by
Printer at Publisher's direction and expense. Printer will act as Publisher's
agent in receiving paper and shall exercise the same diligence as it would in
receiving paper for its own account, including the reporting to Publisher of
apparent defects in or
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Publication Contract
October 14, 1997
Page 7
damage to such paper and shall file claims on behalf of the Publisher for such
apparent defects or damage.
8.02 Printer will maintain an accurate record of all paper received, used
and on hand, and shall submit a written monthly inventory to Publisher not later
than the tenth (10th) day following the invoice date for each issue of the
Magazine or sooner if possible. Once each contract year, at Printer's sole cost,
Printer will effect a physical inventory of paper and submit to Publisher a
report of said inventory. "Contract year" for the purpose of this Agreement
means the twelve (12) month period beginning with the first day of the calendar
month in which the printing of the first monthly requirement of the Magazine
commences ("Commencement Date"), pursuant to this Agreement, and each twelve
(12) month period thereafter. Printer is committed to use its best efforts to
keep the wastage of paper at a minimum.
8.03 Printer will, at the end of each contract year, pay Publisher for its
average cost of paper consumed in excess of that allowed by Exhibit D; provided,
however, that the value of underconsumption of one kind of paper will be used as
a credit against overconsumption of other kinds of paper. However, Printer shall
have the option to reimburse the Publisher for such excess in kind. If Printer
consumes less paper than allowed by Exhibit D, Publisher shall pay Printer an
amount equal to fifty percent (50%) of the average value of paper underconsumed
during the contract year, and the paper requirements set forth in Exhibit D
shall be amended to reflect fifty percent (50%) of such underconsumption in the
new or revised paper requirements for the next succeeding contract year.
However, Publisher shall have the option to settle such account in kind. Paper
which is damaged, defective or does not conform to the specifications in Exhibit
G shall be excluded from the computation of overconsumption and
underconsumption. The actual basis weight of the paper received and used for
each issue of the Magazine shall be the basis for the calculation of over and
underconsumption. Within ten (10) days of submitting each issue's invoice,
Printer shall submit the calculation of under or over consumption for the issue
of the Magazine to which the invoice applies.
8.04 Printer shall purchase and store for Publisher ink in the amounts and
kinds consistent with Publisher's requirements hereunder. Printer shall invoice
Publisher in accordance with the Specimen Invoices attached hereto as Exhibit E.
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Publication Contract
October 14, 1997
Page 8
ARTICLE 9 - STORAGE
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9.01 All paper shall be and remain the property of Publisher. Printer
shall store for Publisher, without charge to Publisher, the amount of paper
required for the issue then in production plus the two (2) following issues of
the Magazine in accordance with the Paper Requirements set forth in Exhibit D.
Publisher may reasonably require Printer to store paper in excess of the
foregoing amount, in which case Printer may charge Publisher a reasonable charge
based upon comparable public warehousing rates.
9.02 Printer shall store all excess copies of past issues of the Magazine
for a period of ninety (90) days after publication, without charge to Publisher.
9.03 Printer shall store editorial material in film form for a period of
twelve (12) months after publication, without charge to Publisher. Thereafter,
Printer shall request Publisher's instructions, and in accordance with such
instructions, shall either return such materials to Publisher at Publisher's
expense, or destroy such materials, or store such materials at a mutually agreed
upon cost to Publisher.
9.04 Printer shall store advertising material in film form for possible
reuse for a period of twelve (12) months after the time of last use, without
charge to Publisher. Thereafter, Printer shall request Publisher's instructions,
and in accordance with such instructions, shall either return such materials to
Publisher at Publisher's expense, or destroy such materials, or store such
materials at a mutually agreed upon cost to Publisher.
9.05 Printer shall store preprinted advertising inserts, sub cards, and ad
cards, either blow in or bind in, furnished by Publisher in sufficient number
for at least two (2) issues, without charge to Publisher. Printer may invoice
Publisher for a reasonable charge for storage of preprinted inserts for more
than two (2) issues.
ARTICLE 10 - PRICES AND TERMS
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Publication Contract
October 14, 1997
Page 9
10.01 Publisher shall pay Printer for the Work at the prices in effect
from time to time in accordance with the Price Schedule set forth in Exhibit C,
as may be amended from time to time.
10.02 Printer will send Publisher a preliminary invoice in accordance with
the specimen invoices attached hereto as Exhibit E for the Work within five (5)
days after mailing or delivery to common carriers of the newsstand copies of
each issue of the Magazine and will accompany such invoice with a copy of
Printer's newsstand shipping completion notice to Publisher's Magazine
distributor. Printer will provide Publisher with a final invoice (also in
accordance with the specimen invoices attached hereto as Exhibit E) for the Work
within fifteen (15) days after mailing or delivery to common carriers of each
issue of the Magazine. The terms of payment are net cash thirty (30) days from
the date of receipt by Publisher of Printer's final invoice, or at Publisher's
option, ten (10) days after receipt of Printer's preliminary invoice in an
amount net of one and one fourth percent (1 1/4%) cash discount. Such payment
will be made by wire transfer in federal funds unless another form of payment is
mutually agreed upon. Any discrepancies between the preliminary and final
invoices shall be adjusted by the parties within a reasonable time.
10.03 If Publisher shall default in the payment of any invoice which
Publisher has not disputed, and said default shall continue for a period of
thirty (30) days after written notice from Printer, Printer shall be entitled to
charge interest at the rate of one percent (1%) per month (twelve percent (12%)
per annum) on the amount of the unpaid but undisputed invoice.
10.04 There will be no increase in those manufacturing prices (excluding
ink), set forth in Exhibit C for the period from the Commencement Date until
December 1, 1998 including but not limited to increases in costs resulting from
changes in labor rates, fringe benefits, shop rules, xxxxxxx requirements or
other working conditions experienced by Printer affecting the cost of performing
the Work or due to increases in the cost of materials (excluding ink),
utilities, fuel, operating supplies, service costs or any other materials or
services utilized by Printer in the performance of the Work. Changes in the cost
of ink shall be passed on as incurred. Rates for ink in the price schedule are
based on Printer's cost from its suppliers as of December 1, 1997. Printer will
supply Publisher with documentation on increases from Printer's ink supplier in
a form acceptable to both parties.
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Publication Contract
October 14, 1997
Page 10
10.05 If during the period of this Agreement (or any renewal) there shall
be any change to Printer in the price of materials (excluding ink), or labor
increases or decreases (any change in labor conditions), the prices contained in
Schedule C may be adjusted on December 1, 1998, and on each December 1st
thereafter during the term of this Agreement to reflect said change. Price
increases will be limited to actual cost not to exceed eighty five percent (85%)
of the Consumer Price Index. For purposes of this Article 10.05, the "Consumer
Price Index" means the selected areas, all items index (1967=100) for the
Chicago-Xxxx-Lake Co. IL-IN-WI Consumer Price Index for Urban Wage Earners and
Clerical Workers (CPI-W) published by the Bureau of Labor Statistics, U.S.
Department of Labor. The increase in the Consumer Price Index applicable as of
any December 1st shall be the increase in the Consumer Price Index of the
previous July over that of the preceding July. (For example, the increase
applicable for December 1, 1998 shall be the increase in the Consumer Price
Index of July, 1998 over that of July, 1997). Printer will notify Publisher as
soon as practical after knowledge of any increase or decrease.
10.06 Overtime work (herein defined to include holidays as defined in
Exhibit F) is not included in the prices set forth in Exhibit C. No overtime
shall be charged unless requested by Publisher. Any overtime work which Printer
schedules to fulfill Printer's commitments per the Production Schedule shall be
at Printer's expense.
10.07 Commencing with the third (3rd) year of this Agreement, (December 1,
1999 for production of the February, 2000 issue of the magazine), a competitive
situation should arise from a reliable and qualified source capable of producing
the volume and quality produced by Printer under this Agreement for the
production of the Magazine in whole and if there is a difference in Publisher's
net over-all cost for substantially identical services of more than five percent
(5%) on such total volume and quality described above in this Article 10.07, and
Printer and Publisher cannot agree on a satisfactory settlement, Publisher shall
have the right to terminate this Agreement by written notice, effective not less
than twelve (12) months after Printer is advised of such competitive situation.
In the event of dispute between the parties hereto as to the "cost for
substantially identical services,": such dispute shall be settled by arbitration
to be held in Chicago, Illinois in accordance with the Rules of the American
Arbitration Association, and judgment upon the award rendered by the arbitrators
shall be entered in any court having jurisdiction.
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Publication Contract
October 14, 1997
Page 11
10.08 In order to verify any increase or decrease in the wage rates or the
actual costs of materials, Printer shall provide Publisher with evidence of such
increase or decrease certified to be correct by a duly certified public
accounting firm using generally accepted accounting principles.
10.09 In the event that Publisher desires to make changes in the
Manufacturing Specifications set forth in Exhibit B or the Production Schedule
set forth by the Publisher, Printer shall use its best efforts and cooperate
with Publisher in putting such changes into effect. In the event that any such
change results in an ascertainable documented material increase or decrease in
the cost of performing the Work, the prices for the Work set forth in Exhibit C
shall be adjusted to reflect a mutually acceptable increase or decrease.
10.10 Printer shall make all reasonable efforts to improve the quality and
efficiency of the Work and to keep abreast of new developments in the printing
industry. The parties recognize that new developments in the printing industry
may result in cost savings, and that Printer with the approval of Publisher is
expected to institute all possible new developments and to adjust the Exhibit C
prices in order to pass along a fair portion of realized savings to Publisher.
Adjustments in Exhibit B (Manufacturing Specifications), Production Schedule,
and Exhibit C (Price Schedule) resulting from any new developments shall be
subject to the mutual agreement of the parties.
ARTICLE 11 - TITLE AND OWNERSHIP - NO LIENS
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11.01 All paper, film, plates, proofs, printed pages and bound copies made
or held by Printer for Publisher shall be the property of Publisher. Title and
possession to the Work shall pass to Publisher upon delivery of completed issues
of magazine f.o.b. Printer's plant.
11.02 Printer shall not cause any property of Publisher in Printer's
possession to be subjected to any liens or encumbrances whatsoever, and shall
protect such property from any claims of Printer's creditors. Except to the
extent of unpaid and undisputed invoices as set forth in Article 10.03, Printer
shall have no lien or security interest in any property of Publisher which comes
into Printer's possession and Printer expressly waives any liens or security
interest on such property created by statute.
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Publication Contract
October 14, 1997
Page 12
ARTICLE 12 - UNAVOIDABLE DELAYS
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12.01 Printer shall not be liable or responsible to Publisher for delays
or failures to perform the Work occasioned by causes beyond its control and not
due to its fault or negligence, including without limitation, war, natural
disaster, fires, strikes, lockouts, complete inability to obtain necessary
materials, energy, utilities or carrier space, and government acts and
regulations. Printer shall, however, use its best efforts to continue to perform
the Work at any of its plants not so effected by such causes or through
subcontracting Publisher's Work to other printers for the duration of any such
occurrence, subject to Publisher's consent, which shall not be unreasonably
withheld. In no event shall Printer be obligated to subcontract Publisher's Work
if the cost of such subcontracting exceeds the price schedule set forth in
Exhibit C unless Publisher consents to the increase in prices. During any such
period while Publisher's Work is being done under subcontract, the Exhibit C
Price Schedule shall remain in effect (subject to the foregoing) and Printer's
obligations with respect to specifications and quality, overruns and underruns
and storage shall remain in effect.
12.02 In the event of delay on the part of Printer due to causes beyond
its control, which delays shall be continuing, Publisher shall have the right
(notwithstanding any other provision of this Agreement) to place the Work
elsewhere, in whole or in part, for the duration of such causes beyond Printer's
control. Publisher shall have the right to remove from Printer's plant any and
all completed work, work-in-progress, proofs, filmboards, artwork and other
material and supplies intended for use in preparing any then uncompleted work.
If Printer objects to Publisher's removal of property from Printer's plant on
the grounds that it does not consider such cause beyond its control to be
continuing. Printer shall, nevertheless, not deter, delay or impede Publisher
from such removal of property, but shall pursue its legal remedies after such
removal has taken place.
12.03 In the event of any delay due to strikes, lockouts or other labor
difficulties, Publisher shall have the right to place the Work elsewhere. If
Printer anticipates any strike, lockout or other labor difficulties which may
cause stoppages or slowdowns of the work on the Magazine, Printer shall notify
Publisher sufficiently in advance so that Publisher can make alternate
arrangements for the production of the Magazine during any such period of
strikes, lockout or other labor difficulties. In such
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Publication Contract
October 14, 1997
Page 13
circumstances. Printer shall assist Publisher in making such alternate
arrangements and in moving the Work.
12.04 Printer shall resume performance hereunder and Publisher shall
return to Printer's plant all material removed pursuant to Section 12.02 or
12.03 after Printer has furnished assurances of its capacity to so resume
reasonably satisfactory to Publisher.
12.05 Publisher shall not be liable or responsible to Printer for delays
or failures in furnishing materials occasioned by causes beyond its control and
not due to its fault or negligence, including, without limitation, war, natural
disaster, fires, strikes, lockouts, complete inability to obtain necessary
materials, energy, utilities or carrier space, and government acts and
regulations.
12.06 If any of the above-described causes beyond the control of Printer
continues for a period of more than one hundred twenty (120) days. Publisher
shall have the right to terminate this Agreement upon not less than thirty (30)
days prior written notice to Printer.
ARTICLE 13 - INDEMNIFICATION
----------------------------
13.01 Printer agrees to indemnify, defend and save Publisher harmless of
and from any and all loss, claims, damages, including reasonable attorney's
fees, which Publisher may suffer or incur based on a claim, charge or suit
instituted against Publisher as a result of any act or omission or commission of
Printer in performing its services hereunder.
13.02 The Publisher agrees to indemnify, defend, and save Printer harmless
from any and all loss, claims for damages, including reasonably attorney's fees,
which Printer may suffer or incur in the event any claim is made against Printer
by any person or corporation, by reason of libel, slander, infringement of
copyright, violation of privacy, breach of contract or any other cause of
whatsoever nature (and not due to the negligence of Printer) arising from or as
a result of printing the Magazine or any material of whatsoever nature included
therein.
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Publication Contract
October 14, 1997
Page 14
13.03 Notwithstanding Paragraphs 13.01 and 13.02 above, neither party
shall be liable to the other party for any such indemnification unless the party
seeking indemnification has notified the other party of said claim, action,
proceeding or demand as soon as practicable upon receipt of knowledge of same
and afforded the other party the opportunity to defend or participate in the
defense of said claim, action, proceeding or demand, and further, that no
settlement or payment of any claim, action, proceeding or demand shall be
binding on the indemnifying party unless prior approval and consent is obtained
from the indemnifying party, which said consent will not be unreasonably
withheld.
ARTICLE 14 - INSURANCE
----------------------
14.01 Printer shall carry fire and extended coverage insurance including
sprinkler leakage if applicable on all materials and Work in Process, Work
completed and not delivered which is still in Printer's possession and on all
material supplied by Printer and all property of the Publisher including, but
not limited to, paper, transparencies, film inserts, and the like. Such
coverage shall be at Publisher's replacement cost. On or before the
commencement date of this Agreement, Printer will provide Publisher with a
certificate of insurance naming the Printer as well as the Publisher as
additional named insureds as their interests may appear. Such certificate will
evidence the insurers agreement that such insurance will not be modified or
terminated without at least twenty (20) days' prior written notice to Publisher
of such modification or termination.
ARTICLE 15 - JOINT VENTURE
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15.01 Nothing contained herein shall in any way constitute a partnership
between or a Joint venture by the parties hereto. Neither of the parties shall
hold itself out as the partner or joint venturer of the other party, and
neither party shall be or become liable or bound by any representation, act or
omission whatsoever of the other party contrary to the provisions of this
Agreement.
ARTICLE 16 - NO ASSIGNMENT
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16.01 Subject to the provisions of Articles 17, 18 and 19, this Agreement
shall be binding upon and inure to the benefit of the successors and assigns of
the parties hereto.
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Publication Contract
October 14, 1997
Page 15
16.02 Neither party to this Agreement shall assign, mortgage or otherwise
encumber this Agreement or its rights or responsibilities hereunder without the
prior written consent of the other party, which consent shall not be
unreasonably withheld.
ARTICLE 17 - BANKRUPTCY
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17.01 If either party shall be adjudicated a bankrupt, shall make any
assignment for the benefit of creditors, shall institute proceedings for
voluntary bankruptcy, shall apply for or consent to the appointment of a
receiver, or if an order shall be entered approving a petition seeking its
reorganization or appointing a receiver of it or its property, then upon the
happening of any one or more of such events, the other party to this Agreement
shall have the right to terminate this Agreement by giving written notice of its
intention to do so. Any termination of this Agreement pursuant to this Article
17 shall not release either party from any obligation hereunder due and owing
to the other party up to the date of such termination.
ARTICLE 18 - SALE OF MAGAZINE OR DISCONTINUANCE OF PUBLICATION
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18.01 If Publisher shall propose to sell the Magazine or any successor
magazine thereto, whether titled the same or not, to a person, firm, or
corporation which is not a subsidiary or affiliate of or controlled by
Publisher, Publisher shall give Printer written notice not less than ninety (90)
days prior to any contemplated sale. Thereafter, Publisher shall keep Printer
advised of the progress of any such proposed sale and Printer shall keep such
information confidential. Within thirty (30) days after receipt of such notice,
Printer shall advise Publisher in writing as to whether Printer will consent to
an assignment of Publisher's rights and obligations under this Agreement to the
prospective purchaser. If Printer is willing to consent to an assignment,
publisher shall use its best efforts to persuade the prospective purchaser to
assume all Publisher's obligations under this Agreement concurrently with the
consummation of such sale by an instrument in writing satisfactory to Printer.
If Printer shall not consent to the assignment by Publisher to such
prospective purchaser or if despite its best efforts Publisher shall be unable
to persuade the prospective purchaser, upon the consummation of such sale the
rights and obligations of the parties hereunder shall terminate without
liability of any kind by either party for the unexpired term of the Agreement.
Playboy Enterprises, Inc.
Publication Contract
October 14, 1997
Page 16
18.02 If Publisher decides to discontinue the publication of the Magazine,
Publisher shall give Printer ninety (90) days advance written notice of such
decision, specifying the effective date of discontinuance upon which date this
Agreement shall terminate without liability of any kind by either party for the
unexpired term of this Agreement.
18.03 Without limiting the provisions of Articles 18.01 and 18.02,
Publisher shall be obligated to pay all costs for Work done up to the effective
date of termination.
ARTICLE 19 - CHANGE IN CONTROL OF PRINTER
-----------------------------------------
19.01 In the event that the ownership and management of Printer at any
time shall pass out of the majority control of its present owners and
management, by sale of stock or assets, merger or otherwise, Printer shall give
Publisher written notice not less than ninety (90) days prior to the effective
date of any change of control and Publisher shall have the right to terminate
this Agreement upon the effective date of such change of control. If Publisher
does not elect to terminate this Agreement, the new owners and management of
Printer shall assume this Agreement and carry out all of its terms and
provisions.
ARTICLE 20 - DELIVERY AND DISTRIBUTION SERVICES
-----------------------------------------------
20.01 Printer shall cause all copies of the Magazine produced by it to be
tendered for delivery F.O.B. Printer's dock, Lomira, Wisconsin, in care of such
persons, firms or corporations as Publisher may from time to time designate or
as otherwise provided herein. Delivery shall be made in accordance with the
schedule as furnished by Publisher from time to time, which delivery shall
conform to the current Production Schedule.
20.02 Printer shall perform a complete distribution service for the
Magazine which includes, but is not limited to, the maintenance of tariff files,
rate analyses, routing, preparation of shipping documents, arranging for
transportation, auditing freight bills and handling charges submitted by
carriers and breakup agents, tracing shipments, processing and collecting claims
for short or damaged shipments (but assumes no liability for same), preparation
of postal forms, prepayment of freight invoices, and prorating consolidated
shipment charges.
Playboy Enterprises, Inc.
Publication Contract
October 14, 1997
Page 17
20.03 Printer will, at frequent and regular intervals, review the existing
postal and distribution scheme and determine any savings that might be effected
from changes in availabilities, rate structures, regulations, volume, etc., in
the consolidation of shipments and in the establishment of entry points, and
shall report on these reviews to the Publisher, with any recommendations.
20.04 Printer will provide Publisher's Magazine distributor with a
newsstand shipping completion notice not more than five (5) days after mailing
or delivery to common carriers of the newsstand copies of each issue of the
Magazine.
ARTICLE 21 - NO LIENS
---------------------
Subject to Article 11.02 hereof, Printer shall not cause any property of
Publisher in Printer's possession to be subject to any liens or encumbrances of
whatsoever kind or nature.
ARTICLE 22 - TITLE AND RISK LOSS
--------------------------------
22.01 Title and risk of loss or damage to finished Work shall pass to
Publisher upon delivery to a common carrier, contract carrier or U.S. Postal
service F.O.B., Printer's shipping dock.
22.02 Title to all artwork, mechanicals, proofs, film negatives,
positives, transparencies, paper (excluding waste paper), inserts, etc., and
other materials supplied or furnished by the Publisher shall remain the property
of Publisher. Title to film made or caused to be made by Printer for Publisher
and paid for by Publisher shall become the property of Publisher.
ARTICLE 23 - PROOFS
-------------------
Prior to the press run of any issue of the magazine, Printer shall supply
to Publisher- a blueline proof. Publisher shall approve said proof by
representatives designated by the Publisher in writing, by initialing said proof
with "O.K." or "O.K. With Changes". Any changes required shall be specified by
the Publisher's designated representatives in writing. Printer shall not be
responsible for any errors if printed pursuant to such representatives'
instructions as herein provided.
Playboy Enterprises, Inc.
Publication Contract
October 14, 1997
Page 18
ARTICLE 24 - LIMITATION OF MATERIALS
------------------------------------
If Printer's materials or supplies shall be limited because of governmental
or supplier allocations or restrictions, such materials or supplies as Printer
shall have will be used and distributed ratably to its customers based upon the
usage of such customers when the allocations or restrictions became effective.
If the materials' shortage materially interferes with the publication of the
Magazine, then Publisher shall have the option to place the Work elsewhere
pursuant to the provisions contained in Article 12 hereof.
ARTICLE 25 - NEW EQUIPMENT
--------------------------
It is recognized that if the parties mutually agree that the Work may be
more economically and efficiently produced on new equipment, the parties will
negotiate in good faith as to the terms for the installation of such equipment,
including prices for Work produced, the terms and conditions of contract and any
other arrangements which appear appropriate in connection with the addition of
such equipment. Costs used in establishing new prices will be computed using
the same framework and criteria as those used to establish the prices set forth
in Exhibit C.
ARTICLE 26 - NEW DEVELOPMENTS IN GRAPHIC ARTS
---------------------------------------------
The Printer agrees to make all reasonable efforts to reduce costs and to
improve the quality and efficiency of the Work and to keep abreast of
developments in the graphic arts comprising technological improvements in
processing, methods and techniques and to advise Publisher from time to time of
its findings. The Printer shall adopt such technological or other innovations
as the parties agree (which agreement shall not be unreasonably withheld) are
necessary or desirable for production of Work hereunder, provided the parties
mutually agree with respect to the methods and conditions of manufacture which
pertain to such innovation. Upon incorporation of any such development, the
Printer shall adjust the prices to reflect as mutually agreed upon any increases
or decreases in cost resulting therefrom. Such increases or decreases in costs
will be computed using the same framework and criteria as those used to
establish the prices set forth in Exhibit C.
ARTICLE 27 - MESSENGER SERVICE
------------------------------
Messenger service between Publisher's offices, and Printer's plant in
Pewaukee, Wisconsin, will be provided daily by Printer at Publisher's cost.
Playboy Enterprises, Inc.
Publication Contract
October 14, 1997
Page 19
ARTICLE 28 - ADVERTISING AND EDITORIAL MATERIAL
-----------------------------------------------
Printer agrees to a mechanical inspection of advertising and editorial film
prior to printing. Printer will promptly notify Publisher on the proofs all
apparent defects on all film received. Film is to be repaired when necessary and
charged for as set for in Exhibit C. Printer will not unnecessarily charge for
film repairs. Printer will supply proof with description of work performed when
billing for repair work is submitted. Printer accepts full responsibility for
mechanical defects in film passed by its inspection, including those it repairs
in the event of mishaps within Printer's plant.
ARTICLE 29 - POSTAL REGULATIONS
-------------------------------
Publisher may from time to time wish to take advantage of changes that may
occur in U.S. Postal regulations (e.g., the regulation which permits a
publication to attach certain letters [e.g., renewal notices] or other types of
mail to a magazine, thereby giving that piece of mail the benefit of the
publication's second class mailing rates). Printer agrees to make such tests as
are reasonably required by Publisher and to work with the Publisher towards
determining the benefits of such changes to Publisher.
ARTICLE 30 - CONFIDENTIAL TREATMENT
-----------------------------------
Printer shall use its best efforts to keep confidential the editorial
contents of unpublished issue of the Magazine until the newsstand sales dates
and to keep confidential Publisher's subscriber lists and Printer shall require
its employees to maintain such confidentiality.
ARTICLE 31 - GOVERNING LAW
--------------------------
This Agreement shall be interpreted and construed in accordance with the
laws of the State of Illinois.
ARTICLE 32 - AMENDMENTS
-----------------------
This Agreement constitutes the entire agreement and understanding between
the parties, and cannot be amended, or changed, or supplemented except by a
written instrument signed by both the parties.
Playboy Enterprises, Inc.
Publication Contract
October 14, 1997
Page 20
ARTICLE 33 - NOTICES
--------------------
All notices required or permitted to be given under this Agreement shall be
deemed given if sent by registered or certified mail, postage prepaid, addressed
to the parties as follows;
If to Publisher: Playboy Enterprises, Inc.
000 X. Xxxx Xxxxx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
Attn: Xxxxx Xxxxxx
with an exact copy sent to the same address
marked "Attention: Corporate Secretary"
If to Printer: Quad/Graphics, Inc.
Attn: Xxxxxx Xxxxx, Contract Administrator
X000X0000 Xxxxxxxxxxxx Xxxx
Xxxxxxxx, XX 00000-0000
Notices shall be deemed conclusively to have been served when actually
received or refused by the addressee or upon notification of non-deliverability
by the postal authorities, as the case may be.
ARTICLE 34 - CAPTIONS
---------------------
The captions to this Agreement have been placed thereon for the convenience
of the parties and shall not be considered in the interpretation or construction
of the Agreement.
ARTICLE 35 - ENTIRE AGREEMENT
-----------------------------
This Agreement represents the entire understanding of the parties. None of
the terms of this Agreement can be waived or modified except by an express
agreement in writing signed by the parties. There are no representations,
promises, warranties, covenants or undertaking other than those contained in
this Agreement. The failure of either party hereto to enforce, or the delay by
either party in enforcing, any of its rights under this Agreement shall not be
deemed as constituting a waiver or a modification
Playboy Enterprises, Inc.
Publication Contract
October 14, 1997
Page 21
thereof and either party may, within the time provided by applicable law,
commence appropriate proceedings to enforce any or all of such rights.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
by their duly authorized officers.
PLAYBOY ENTERPRISES, INC.
/s/ Xxxxx Xxxxxx
By Xxxxx Xxxxxx
Its Vice President of Magazine Production
QUAD/GRAPHICS, INC.
/s/ Xxxxx X. Xxxxxxxxx
By Xxxxx X. Xxxxxxxxx
Its President
Playboy Enterprises, Inc. - Quad/Graphics, Inc.
Publication Contract
Exhibit B - Manufacturing Specifications
Playboy Enterprises, Inc.
Publication Contract
Exhibit B - Manufacturing Specifications
For: Playboy
--------------------------------------------------------------------------------
Frequency: Monthly
Quantity: Approximately 4,400,000.
No. of Pages: 178 pages plus a 4 page cover.
Dimensions: Trimmed size 8 1/8" X 10 7/8" full bleed.
Paper: To be furnished by Customer. Paper consumption figures are
outlined in the Paper Requirements included in the attached
Schedule B.
Copy: Publisher to furnish single page film negatives or positives,
one piece per color, right reading, emulsion down with corner
marks, register marks and page identification and/or digital
file acceptable for direct to plate production.
Proofs: Publisher to furnish final corrected Cromalin, Matchprint or
other acceptable proofs to be used as Quad/Graphics' color
guide.
Plates: Quad/Graphics to make the necessary press plates and cylinders
for production, all metal to remain the property of
Quad/Graphics.
Presswork: Quad/Graphics to print and deliver folded signatures. See the
manufacturing prices in Schedule B for form and color
breakdown.
Ink: Invoicing of Ink will be per prices outlined in Schedule B.
Binding: Printed signatures will be gathered in proper sequences with
Publisher-furnished and inserts, perfect bound along the
10-7/8" way and trimmed to size. A dummy of any furnished
insert must be submitted to the plant for approval prior to
manufacture.
Mailing/
Packing: Ink Jet, Mailing, and Packing instructions vary. Invoicing of
Mailing (In-Line and Off-Line), Packing, and Ink Jet
operations will be per prices outlined in Schedule B.
Playboy Enterprises, Inc. - Quad/Graphics, Inc.
Publication Contract
Exhibit C - Pricing Specifications
QUAD/GRAPHICS, INC.
1996 PREPARATORY CONTRACT PRICING FOR PLAYBOY ENTERPRISES, INC.
--------------------------------------------------------------------------------
Prices are based on producing an 8-3/16" x 10-7/8" page size.
PLAYBOY 1996 (Contract Pricing)
Furnished Edit
(Based on 4/C, but includes 2/C or 3/C also)
Any full page stories or cartoons and also partial page cartoons.
Furnished edit - (RREU negatives).........................................***
Furnished edit - (RRED positives without Matchprint proof)................***
Furnished edit - (RRED positives with Matchprint proof)...................***
B&W Type Pages (full page)
Supplied RRED positives (for full page edit)..............................***
Full Page Furnished Ads (2/C, 3/C or 4/C)
Supplied RREU negatives...................................................***
Supplied RRED negatives...................................................***
Supplied RRED positives...................................................***
Full Page B&W Ads
Supplied RREU negatives...................................................***
Supplied RRED positives...................................................***
Partial Page Ads (based upon B&W edit film. If edit has scans, tints, K.O.'s,
handwork, etc. will be billed per the attached price list)
B&W ad (supplied RREU negatives)..........................................***
2/C, 3/C or 4/C ad supplied as RREU negatives (price based on one ad).....***
2/C, 3/C or 4/C ad supplied as RREU negatives (price based on two ads)....***
Pick up ads (partial or full page)
Pick up B&W ad............................................................***
Pick up 2/C, 3/C or 4/C ad................................................***
--------------------------------------------------------------------------------
Quad/Imaging March 1, 1996 Page 1
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
QUAD/GRAPHICS, INC.
1996 PREPARATORY CONTRACT PRICING FOR PLAYBOY ENTERPRISES, INC.
--------------------------------------------------------------------------------
PLAYBOY SPECIALS
Base 4/C Page
(8-3/16" x 10-7/8")
BASE PAGE:
(081) Base 4/C page................................................*** page
Price includes ripping type and line art from a supplied disk, all random
4/C separations, color correction and touching up of skin blemishes or
scratches as noted on each transparency, processing high resolution images
into the desktop page file, outputting film, a composite Matchprint proof,
color correction and retouching as noted on the first proof, reripping a
page file, reprocessing high resolution images into the desktop page file,
outputting a second set of final film and a second composite Matchprint
proof and two blueline proofs.
You can determine the additional cost of items not specified in the estimate
such as silhouettes, drop shadows, versions, color corrections after the second
proof show and author alterations per the attached price list.
Your price estimate is based on the specifications and printed samples
(September/October 1993 Lingerie book, November/December 1993 Lingerie book,
Playboy's Video Playmates, Playboy's Satin, Leather & Lace supplement and the
1993 Centerfold Sensations) that you have provided.
You can help meet the estimated price and complete your project on time by
providing the following:
. Macintosh based QuarkXPress page files created as single pages to be
processed and output as final film.
. Page files containing all type and line art (colored, tinted and built to
butt), EPS files and square finish windows in position with low resolution
images resident on the page.
. Thermal proofs or laser proofs of designed pages containing trim marks,
call outs for color breaks and tint values and low resolution files showing
image position, size, cropping and angling.
. A list of all CTs and fonts used in the document along with a list of the
fonts, software and version used to create EPS files.
--------------------------------------------------------------------------------
Quad/Imaging March 1, 1996 Page 2
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
QUAD/GRAPHICS, INC.
1996 PREPARATORY CONTRACT PRICE LIST FOR PLAYBOY ENTERPRISES, INC.
--------------------------------------------------------------------------------
Prices are based on producing an 8-3/16" x 10-7/8" page size.
PLAYBOY 1996 (Contract Price list)
COLOR SEPARATION
Price includes a random color proof and either positives or negatives.
Each subject will be scanned for a comparable representation of the
original transparency or to the written instructions on the
transparency within scanner limitations. Scans that are, in our
judgement, extremely difficult to reproduce will require handwork.
Color correction is additional.
(356) B & W separation.........................................***
Four color separation
(301) 5" x 7"..................................................***
(302) 9" x 12".................................................***
(303) 14" x 20"................................................***
DESKTOP PAGE PROCESSING
(036) Trap color...............................................***
(297) Black & white line scan..................................***
(134) Page processing, per color, (outputting film additional).***
(489) Digital file output (per color)..........................***
(073) Output film (per color)..................................***
ELECTRONIC SYSTEM
(496) Electronic page assembly, color correction, swatch
matching, retouching, special effects, rotation,
extensive resizing, alteration of desktop page files.....***
CONVENTIONAL FILM ASSEMBLY
(052) Color break mask.........................................***
(053) Tint screen (per value, per color).......................***
(057) Reverse type.............................................***
(059) Knock out mask...........................................***
(032) Cadograph windows and rules..............................***
(069) Dupe film (per color, per item) does not include strips..***
(054) Contact film (per color, per item) does not include
strips...................................................***
(061) Strip film element.......................................***
(168) Pick up with inspection (per color, per item)............***
(021) Handwork (per hour)......................................***
(066) Final film (per color)...................................***
(031) Ad inspection............................................***
* Ad inspection includes checking the screen ruling and angle of films,
inspecting films for holes and scratches, checking each film to the
furnished proof, checking total density of the proof and noting any
potential problems. Proofs are additional.
PROOFING
(065) Position proof (blueline)................................***
(023) Black & white proof (Velox or LOP).......................***
(025) Matchprint proof.........................................***
--------------------------------------------------------------------------------
Quad/Imaging March 1, 1996 Page 3
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
PLAYBOY ENTERPRISES
PRICE SCHEDULES
-------------------------------------------------------------------------
OFFSET PRESSWORK DEL. PLATES & RATE
FORM DESCRIPTION AS OUT PLATES MAKEREADY PER/M
=========================================================================
4 Page Flat Cover (4/4) 4's 4 8 *** ***
4 Page Flat Cover (5/5) 4's 4 10 *** ***
4 Page Flat Cover (6/6) 4's 4 12 *** ***
4 Page Flat Cover (7/4) 4's 4 11 *** ***
4 Page Flat Cover (7/5) 4's 4 12 *** ***
4 Page Flat Cover (8/4) 4's 4 12 *** ***
4 Page Flat Cover (8/5) 4's 4 13 *** ***
6 Page Gate Cover (4/4) 6's 2 8 *** ***
6 Page Gate Cover (5/5) 6's 2 10 *** ***
6 Page Gate Cover (6/6) 6's 2 12 *** ***
6 Page Gate Center (4/2) 6's 2 6 *** ***
6 Page Gate Center (4/4) 6's 2 8 *** ***
6 Page Gate Center (5/4) 6's 2 9 *** ***
6 Page Gate Center (5/5) 6's 2 10 *** ***
2 Page Body (1/1) 2's 8 2 *** ***
2 Page Body (2/2) 2's 8 4 *** ***
2 Page Body (4/4) 2's 8 8 *** ***
2 Page Body (5/5) 2's 8 10 *** ***
4 Page Body (1/1) 4's 4 2 *** ***
4 Page Body (2/2) 4's 4 4 *** ***
4 Page Body (4/4) 4's 4 8 *** ***
4 Page Body (5/5) 4's 4 10 *** ***
4 Page Body (6/5) 4's 4 10 *** ***
4 Page Gate Body (1/1) 4's 4 2 *** ***
4 Page Gate Body (2/2) 4's 4 4 *** ***
4 Page Gate Body (4/4) 4's 4 8 *** ***
4 Page Gate Body (5/5) 4's 4 10 *** ***
6 Page Gate Body (4/4+4/4) 6's 4 16 *** ***
8 Page Body (1/1) 8's 2 2 *** ***
8 Page Body (2/2) 8's 2 4 *** ***
8 Page Body (4/4) 8's 2 8 *** ***
8 Page Body (5/5) 8's 2 10 *** ***
8 Page Body (1/1+1/1) 8's 4 4 *** ***
8 Page Body (2/2+2/2) 8's 4 8 *** ***
8 Page Body (4/4+1/1) 8's 4 10 *** ***
8 Page Body (4/4+2/2) 8's 4 12 *** ***
8 Page Body (4/4+4/4) 8's 4 16 *** ***
8 Page Body (5/5+4/4) 8's 4 18 *** ***
8 Page Body (5/5+5/5) 8's 4 20 *** ***
8 Page Gate Body (4/4) 8's 2 8 *** ***
8 Page Gate Body (5/5) 8's 2 10 *** ***
---------------------------------------------------------------------------
Page 1 Quad / Graphics Inc. May 30, 1996
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
PLAYBOY ENTERPRISES
PRICE SCHEDULES
--------------------------------------------------------------------------------
OFFSET PRESSWORK DEL. PLATES & RATE
FORM DESCRIPTION AS OUT PLATES MAKEREADY PER/M
================================================================================
12 Page Body (1/1+1/1) 12's 2 4 *** ***
12 Page Body (2/2+2/2) 12's 2 8 *** ***
12 Page Body (4/4+1/1) 12's 2 10 *** ***
12 Page Body (4/4+2/2) 12's 2 12 *** ***
12 Page Body (4/4+4/4) 12's 2 16 *** ***
12 Page Body (5/5+4/4) 12's 2 18 *** ***
12 Page Body (5/5+5/5) 12's 2 20 *** ***
16 Page Body (1/1) 8's 1 2 *** ***
16 Page Body (2/2) 8's 1 4 *** ***
16 Page Body (4/4) 8's 1 8 *** ***
16 Page Body (5/5) 8's 1 10 *** ***
16 Page Body (1/1+1/1) 8's 2 4 *** ***
16 Page Body (2/2+2/2) 8's 2 8 *** ***
16 Page Body (4/4+1/1) 8's 2 10 *** ***
16 Page Body (4/4+2/2) 8's 2 12 *** ***
16 Page Body (4/4+4/4) 8's 2 16 *** ***
16 Page Body (5/5+4/4) 8's 2 18 *** ***
16 Page Body (5/5+5/5) 8's 2 20 *** ***
16 Page Body (1/1+1/1) 16's 2 4 *** ***
16 Page Body (2/2+2/2) 16's 2 8 *** ***
16 Page Body (4/4+1/1) 16's 2 10 *** ***
16 Page Body (4/4+2/2) 16's 2 12 *** ***
16 Page Body (4/4+4/4) 16's 2 16 *** ***
16 Page Body (5/5+4/4) 16's 2 18 *** ***
16 Page Body (5/5+5/5) 16's 2 20 *** ***
--------------------------------------------------------------------------------
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
PLAYBOY ENTERPRISES
PRICE SCHEDULES
--------------------------------------------------------------------------------
OFFSET PRESSWORK DEL. PLATES & RATE
FORM DESCRIPTION AS OUT PLATES MAKEREADY PER/M
================================================================================
32 Page Body (1/1+1/1) 8's 1 4 *** ***
32 Page Body (2/2+2/2) 8's 1 8 *** ***
32 Page Body (4/4+1/1) 8's 1 10 *** ***
32 Page Body (4/4+2/2) 8's 1 12 *** ***
32 Page Body (4/4+4/4) 8's 1 16 *** ***
32 Page Body (5/5+4/4) 8's 1 18 *** ***
32 Page Body (5/5+5/5) 8's 1 20 *** ***
32 Page Body (1/1+1/1) 16's 1 4 *** ***
32 Page Body (2/2+2/2) 16's 1 8 *** ***
32 Page Body (4/4+1/1) 16's 1 10 *** ***
32 Page Body (4/4+2/2) 16's 1 12 *** ***
32 Page Body (4/4+4/4) 16's 1 16 *** ***
32 Page Body (5/5+4/4) 16's 1 18 *** ***
32 Page Body (5/5+5/5) 16's 1 20 *** ***
--------------------------------------------------------------------------------
Rates are guaranteed for 1,500,000 impressions, replacements will be invoiced as
required thereafter. See below for plate and makeready changes.
--------------------------------------------------------------------------------
================================================================================
RATE
OFFSET PRESS SUPPLEMENTAL PRICES MAKEREADY PER/M
================================================================================
Plate Charges, each *** ***
Makeready Changes, each plate *** ***
Rub Off *** ***
Perf signature *** ***
Multiple delivery charges, per delivery *** ***
Press down time, per hour *** ***
--------------------------------------------------------------------------------
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
PLAYBOY ENTERPRISES
PRICE SCHEDULES
GRAVURE PRESSWORK DEL. CYLINDERS & RATE
FORM DESCRIPTION AS OUT CYLINDERS MAKEREADY PER/M
------------------ ---- --- --------- ----------- ------
12 Page Body (4/4) 12's 4 8 *** ***
12 Page Body (5/5) 12's 4 10 *** ***
16 Page Body (4/4) 16's 4 8 *** ***
16 Page Body (5/5) 16's 4 10 *** ***
20 Page Body (4/4) 20's 2 8 *** ***
20 Page Body (5/5) 20's 2 10 *** ***
24 Page Body (4/4) 24's 2 8 *** ***
24 Page Body (5/5) 24's 2 10 *** ***
28 Page Body (4/4) 28's 2 8 *** ***
28 Page Body (5/5) 28's 2 10 *** ***
32 Page Body (4/4) 32's 2 8 *** ***
32 Page Body (5/5) 32's 2 10 *** ***
36 Page Body (4/4) 36's 2 8 *** ***
36 Page Body (5/5) 36's 2 10 *** ***
40 Page Body (4/4) 20's 1 8 *** ***
40 Page Body (5/5) 20's 1 10 *** ***
48 Page Body (4/4) 16's 2 8 *** ***
48 Page Body (5/5) 16's 2 10 *** ***
48 Page Body (4/4) 24's 1 8 *** ***
48 Page Body (5/5) 24's 1 10 *** ***
56 Page Body (4/4) 28's 1 8 *** ***
56 Page Body (5/5) 28's 1 10 *** ***
60 Page Body (4/4) 20's 2 8 *** ***
60 Page Body (5/5) 20's 2 10 *** ***
64 Page Body (4/4) 32's 1 8 *** ***
64 Page Body (5/5) 32's 1 10 *** ***
72 Page Body (4/4) 24's 1 8 *** ***
72 Page Body (5/5) 24's 1 10 *** ***
72 Page Body (4/4) 12's 1 8 *** ***
72 Page Body (5/5) 12's 1 10 *** ***
84 Page Body (4/4) 28's 1 8 *** ***
84 Page Body (5/5) 28's 1 10 *** ***
96 Page Body (4/4) 32's 1 8 *** ***
96 Page Body (5/5) 32's 1 10 *** ***
96 Page Body (4/4) 16's 1 8 *** ***
96 Page Body (5/5) 16's 1 10 *** ***
Included in makeready charges are bromides, one set of cylinders
with one press proof and the press makeready.
Page 4 Quad/Graphics Inc. May 30, 1996
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
PLAYBOY ENTERPRISES
PRICE SCHEDULES
RATE
GRAVURE PRESS SUPPLEMENTAL PRICES MAKEREADY PER/M
----------------------------------------------------- --------- ------
Additional bromides, per page, per color *** ***
Cylinder Charges, each *** ***
Makeready Changes, each cylinder *** ***
Additional proofs (per side) *** ***
Supplemental engraving for type only, each *** ***
Cylinder storage 1st month, each cylinder *** ***
Cylinder storage each additional month, each cylinder *** ***
Press down time, per hour *** ***
COVER BODY
OFFSET INK PRICES RATE RATE
----------------------------------------------------- --------- ------
4/Color pages, per/M *** ***
3/Color pages, per/M *** ***
2/Color pages, per/M *** ***
Black pages, per/M *** ***
5/Color (non metallic) pages, per/M *** ***
6/Color (non metallic) pages, per/M *** ***
7/Color (non metallic) pages, per/M *** ***
8/Color (non metallic) pages, per/M *** ***
Metallic Color less than 1/2 page, per/M *** ***
Varnish *** ***
UV Coat covers 1 & 4
Makeready *** ***
Rune Rate, per/M *** ***
UV Coat covers of gatefold (one side only)
Makeready *** ***
Run Rate, per/M *** ***
BODY
GRAVURE INK PRICES RATE
--------------------------------------------------------------------- ------
4/Color pages, per/M ***
3/Color pages, per/M ***
2/Color pages, per/M ***
Black pages, per/M ***
PMS ink will be invoices at cost plus 10% ***
Page 5 Quad/Graphics Inc. May 30, 1996
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
PLAYBOY ENTERPRISES
PRICE SCHEDULES
RATE
PERFECT BINDING MAKEREADY PER/M
--------------------------------------------------------------- --------- -------
Up to 12 pockets *** ***
13 pockets *** ***
14 pockets *** ***
15 pockets *** ***
16 pockets *** ***
17 pockets *** ***
18 pockets *** ***
19 pockets *** ***
20 pockets *** ***
21 pockets *** ***
22 pockets *** ***
23 pockets *** ***
24 pockets *** ***
25 pockets *** ***
26 pockets *** ***
27 pockets *** ***
28 pockets *** ***
29 pockets *** ***
30 pockets *** ***
31 pockets *** ***
32 pockets *** ***
33 pockets *** ***
34 pockets *** ***
35 pockets *** ***
36 pockets *** ***
Rate Per/M includes all costs up through the trimming unit.
Makeready prices are based on (3) machines.
RATE
PERFECT BINDING PREMIUMS MAKEREADY PER/M
--------------------------------------------------------------- --------- -------
Bind-in and Blow-in cards are counted as pockets *** ***
First pocket change per stop, per machine *** ***
Each additional pocket change per same stop, per machine *** ***
Demographic insertion (body signatures only) (ink jet required) *** ***
Demographic insertion (cover form only) (ink jet required) *** ***
Demographic insertion (body forms and cover) (ink jet required) *** ***
Apply furnished tip-ons *** ***
Label Aire/Dot whacker *** ***
Handwork, per hour *** ***
Binder holding time, per hour *** ***
Page 6 Quad/Graphics Inc. May 30, 1996
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
PLAYBOY ENTERPRISES
PRICE SCHEDULES
IN-LINE POLYWRAP & MAILING RATE
WITH ONE ONE COLOR PRE-PRINTED SITMA PLASTIC PER/M
-------------------------------------------- ------
Up to 12 pockets on perfect binder ***
13 pockets on perfect binder ***
14 pockets on perfect binder ***
15 pockets on perfect binder ***
16 pockets on perfect binder ***
17 pockets on perfect binder ***
18 pockets on perfect binder ***
19 pockets on perfect binder ***
20 pockets on perfect binder ***
21 pockets on perfect binder ***
22 pockets on perfect binder ***
23 pockets on perfect binder ***
24 pockets on perfect binder ***
25 pockets on perfect binder ***
26 pockets on perfect binder ***
27 pockets on perfect binder ***
28 pockets on perfect binder ***
29 pockets on perfect binder ***
30 pockets on perfect binder ***
31 pockets on perfect binder ***
32 pockets on perfect binder ***
33 pockets on perfect binder ***
34 pockets on perfect binder ***
35 pockets on perfect binder ***
36 pockets on perfect binder ***
RATE
IN-LINE POLYWRAP & MAILING PREMIUMS MAKEREADY PER/M
----------------------------------------------- --------- -----
Inserts *** ***
Pocket changes, each *** ***
Ink jet addressing and formatting upcharge
(max 8 lines in one position) *** ***
Ink jet "out of pocket" upcharge (per postion) *** ***
Ink jet code & message or code only *** ***
Demographic insertion *** ***
Additinal colors and versions on poly film will
be invoiced at cost plus 15%
Label Aire/Dot whacker *** ***
Page 7 Quad/Graphics Inc. May 30, 1996
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
PLAYBOY ENTERPRISES
PRICE SCHEDULES
RATE
NEWSSTAND & BULK PACKING MAKEREADY PER/M
----------------------------------------------------- --------- -------
Shrinkwrap in bundles *** ***
Newsstand label preparation *** ***
Onsert newsstand letter, per bundle *** ***
RATE
OFF-LINE MAILING MAKEREADY PER/M
----------------------------------------------------- --------- -------
Off-line mail with paper labels *** ***
List changes, each *** ***
Insert into supplied envelopes *** ***
Insert into quad supplied envelopes *** ***
Handwork, per hour *** ***
RATE
PACKING & HANDLING MAKEREADY PER/M
----------------------------------------------------- --------- -------
Off-line Polywrapping base piece *** ***
Off-line polywrapping per insert *** ***
Bulk in cartons, each (with attached shipping label) *** ***
Bulk on skids, each *** ***
Bulk on skids with sleeves, each *** ***
Tearsheets (based on per hour rate) *** ***
Handle funished skids, each *** ***
Handling furnished stock, per cwt (as received) *** ***
Page 8 Quad/Graphics Inc. May 30, 1996
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
Playboy Enterprises, Inc. - Quad/Graphics, Inc.
Publication Contract
Exhibit D - Paper Requirements
PLAYBOY ENTERPRISES
PAPER REQUIREMENTS
8 1/8" x 10 7/8" BOOK SIZE ROLL CYL. BASIS RATE
PAPER REQUIREMENTS WIDTH SIZE WEIGHT MAKEREADY PER/M
---------------------------- ------- ------ ------ --------- -----
4 Page Flat Cover (4/4) 33.7500 22.750 100 *** ***
4 Page Flat Cover (5/5) 33.7500 22.750 100 *** ***
4 Page Flat Cover (6/6) 33.7500 22.750 100 *** ***
Press Stops, each 33.7500 22.750 100 *** ***
Plate Changes, per plate 33.7500 22.750 100 *** ***
6 Page Cover (4/4) 24.5000 22.750 80 *** ***
6 Page Cover (5/5) 24.5000 22.750 80 *** ***
6 Page Cover (6/6) 24.5000 22.750 80 *** ***
Press Stops, each 24.5000 22.750 80 *** ***
Plate Changes, per plate 24.5000 22.750 80 *** ***
6 Page Center (4/2) 23.1875 22.750 60 *** ***
6 Page Center (4/4) 23.1875 22.750 60 *** ***
6 Page Center (5/4) 23.1875 22.750 60 *** ***
6 Page Center (5/5) 23.1875 22.750 60 *** ***
Press Stops, each 23.1875 22.750 60 *** ***
Plate Changes, per plate 23.1875 22.750 60 *** ***
2 Page Body (1/1) 33.5000 22.750 50 *** ***
2 Page Body (2/2) 33.5000 22.750 50 *** ***
2 Page Body (4/4) 33.5000 22.750 50 *** ***
2 Page Body (5/5) 33.5000 22.750 50 *** ***
4 Page Body (1/1) 33.5000 22.750 50 *** ***
4 Page Body (2/2) 33.5000 22.750 50 *** ***
4 Page Body (4/4) 33.5000 22.750 50 *** ***
4 Page Body (5/5) 33.5000 22.750 50 *** ***
4 Page Body (1/1) 33.5000 22.750 40 *** ***
4 Page Body (2/2) 33.5000 22.750 40 *** ***
4 Page Body (4/4) 33.5000 22.750 40 *** ***
4 Page Body (5/5) 33.5000 22.750 40 *** ***
4 Page Gatefold (1/1) 30.5000 22.750 60 *** ***
4 Page Gatefold (2/2) 30.5000 22.750 60 *** ***
4 Page Gatefold (4/4) 30.5000 22.750 60 *** ***
4 Page Gatefold (5/5) 30.5000 22.750 60 *** ***
Press Stops, each 30.5000 22.750 60 *** ***
Plate Changes, per plate 30.5000 22.750 60 *** ***
6 Page Gatefold (4/4)(4/4) 19.1250 22.750 60 *** ***
Press Stops, each 19.1250 22.750 60 *** ***
Plate Changes, per plate 19.1250 22.750 60 *** ***
8 Page Body (1/1) 33.5000 22.750 50 *** ***
8 Page Body (2/2) 33.5000 22.750 50 *** ***
8 Page Body (4/4) 33.5000 22.750 50 *** ***
8 Page Body (5/5) 33.5000 22.750 50 *** ***
8 Page Body (1/1) 33.5000 22.750 40 *** ***
8 Page Body (2/2) 33.5000 22.750 40 *** ***
8 Page Body (4/4) 33.5000 22.750 40 *** ***
8 Page Body (5/5) 33.5000 22.750 40 *** ***
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
Page 1 Quad/Graphics Inc. September 9, 1996
PLAYBOY ENTERPRISES
PAPER REQUIREMENTS
8 1/8" x 10 7/8" BOOK SIZE ROLL CYL. BASIS RATE
PAPER REQUIREMENTS WIDTH SIZE WEIGHT MAKEREADY PER/M
---------------------------- ------- ------ ------ --------- -----
8 Page Body (1/1+1/1) 33.5000 22.750 50 *** ***
8 Page Body (2/2+2/2) 33.5000 22.750 50 *** ***
8 Page Body (4/4+1/1) 33.5000 22.750 50 *** ***
8 Page Body (4/4+2/2) 33.5000 22.750 50 *** ***
8 Page Body (4/4+4/4) 33.5000 22.750 50 *** ***
8 Page Body (5/5+4/4) 33.5000 22.750 50 *** ***
8 Page Body (5/5+5/5) 33.5000 22.750 50 *** ***
8 Page Body (1/1+1/1) 33.5000 22.750 40 *** ***
8 Page Body (2/2+2/2) 33.5000 22.750 40 *** ***
8 Page Body (4/4+1/1) 33.5000 22.750 40 *** ***
8 Page Body (4/4+2/2) 33.5000 22.750 40 *** ***
8 Page Body (4/4+4/4) 33.5000 22.750 40 *** ***
8 Page Body (5/5+4/4) 33.5000 22.750 40 *** ***
8 Page Body (5/5+5/5) 33.5000 22.750 40 *** ***
8 Page Gatefold (4/4) 31.7500 22.750 60 *** ***
8 Page Gatefold (5/5) 31.7500 22.750 60 *** ***
Press Stops, each 31.7500 22.750 60 *** ***
Plate Changes, per plate 31.7500 22.750 60 *** ***
12 Page Body (1/1+ 33.5000 22.750 40 *** ***
1/1) 16.7500 22.750 40 *** ***
12 Page Body (2/2+ 33.5000 22.750 40 *** ***
2/2) 16.7500 22.750 40 *** ***
12 Page Body (4/4+ 33.5000 22.750 40 *** ***
1/1) 16.7500 22.750 40 *** ***
12 Page Body (4/4+ 33.5000 22.750 40 *** ***
2/2) 16.7500 22.750 40 *** ***
12 Page Body (4/4+ 33.5000 22.750 40 *** ***
4/4) 16.7500 22.750 40 *** ***
12 Page Body (5/5+ 33.5000 22.750 40 *** ***
4/4) 16.7500 22.750 40 *** ***
12 Page Body (5/5+ 33.5000 22.750 40 *** ***
5/5) 16.7500 22.750 40 *** ***
16 Page Body (1/1) 33.5000 22.750 40 *** ***
16 Page Body (2/2) 33.5000 22.750 40 *** ***
16 Page Body (4/4) 33.5000 22.750 40 *** ***
16 Page Body (5/5) 33.5000 22.750 40 *** ***
16 Page Body (1/1+1/1) 33.5000 22.750 40 *** ***
16 Page Body (2/2+2/2) 33.5000 22.750 40 *** ***
16 Page Body (4/4+1/1) 33.5000 22.750 40 *** ***
16 Page Body (4/4+2/2) 33.5000 22.750 40 *** ***
16 Page Body (4/4+4/4) 33.5000 22.750 40 *** ***
16 Page Body (5/5+4/4) 33.5000 22.750 40 *** ***
16 Page Body (5/5+5/5) 33.5000 22.750 40 *** ***
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
Page 2 Quad/Graphics Inc. September 9, 1996
PLAYBOY ENTERPRISES
PAPER REQUIREMENTS
8 1/8" x 10 7/8" BOOK SIZE ROLL CYL. BASIS RATE
PAPER REQUIREMENTS WIDTH SIZE WEIGHT MAKEREADY PER/M
---------------------------- ------- ------ ------ --------- -----
32 Page Body (1/1+1/1) 33.5000 22.750 40 *** ***
32 Page Body (2/2+2/2) 33.5000 22.750 40 *** ***
32 Page Body (4/4+1/1) 33.5000 22.750 40 *** ***
32 Page Body (4/4+2/2) 33.5000 22.750 40 *** ***
32 Page Body (4/4+4/4) 33.5000 22.750 40 *** ***
32 Page Body (5/5+4/4) 33.5000 22.750 40 *** ***
32 Page Body (5/5+5/5) 33.5000 22.750 40 *** ***
Press Stops, per web, each 33.5000 22.750 50 *** ***
Press Stops, per web, each 33.5000 22.750 40 *** ***
Plate Changes, per plate 33.5000 22.750 50 *** ***
Plate Changes, per plate 33.5000 22.750 40 *** ***
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
Page 3 Quad/Graphics Inc. September 9, 1996
PLAYBOY ENTERPRISES
PAPER REQUIREMENTS
8 1/8" x 10 7/8" BOOK SIZE ROLL CYL. BASIS RATE
PAPER REQUIREMENTS WIDTH SIZE WEIGHT MAKEREADY PER/M
---------------------------- ------- ------ ------ --------- -----
4 Page Flat Cover (4/4) 33.7500 22.750 100 *** ***
4 Page Flat Cover (5/5) 33.7500 22.750 100 *** ***
4 Page Flat Cover (6/6) 33.7500 22.750 100 *** ***
Press Stops, each 33.7500 22.750 100 *** ***
Plate Changes, per plate 33.7500 22.750 100 *** ***
6 Plate Cover (4/4) 24.5000 22.750 100 *** ***
6 Plate Cover (5/5) 24.5000 22.750 100 *** ***
6 Plate Cover (6/6) 24.5000 22.750 100 *** ***
Press Stops, each 24.5000 22.750 100 *** ***
Plate Changes, per plate 24.5000 22.750 100 *** ***
6 Page Center (4/2) 23.1875 22.750 80 *** ***
6 Page Center (4/4) 23.1875 22.750 80 *** ***
6 Page Center (5/4) 23.1875 22.750 80 *** ***
6 Page Center (5/5) 23.1875 22.750 80 *** ***
Press Stops, each 23.1875 22.750 80 *** ***
Plate Changes, per plate 23.1875 22.750 80 *** ***
2 Page Body (1/1) 33.5000 22.750 80 *** ***
2 Page Body (2/2) 33.5000 22.750 80 *** ***
2 Page Body (4/4) 33.5000 22.750 80 *** ***
2 Page Body (5/5) 33.5000 22.750 80 *** ***
2 Page Body (1/1) 33.5000 22.750 60 *** ***
2 Page Body (2/2) 33.5000 22.750 60 *** ***
2 Page Body (4/4) 33.5000 22.750 60 *** ***
2 Page Body (5/5) 33.5000 22.750 60 *** ***
4 Page Body (1/1) 33.5000 22.750 60 *** ***
4 Page Body (2/2) 33.5000 22.750 60 *** ***
4 Page Body (4/4) 33.5000 22.750 60 *** ***
4 Page Body (5/5) 33.5000 22.750 60 *** ***
4 Page Body (1/1) 33.5000 22.750 40 *** ***
4 Page Body (2/2) 33.5000 22.750 40 *** ***
4 Page Body (4/4) 33.5000 22.750 40 *** ***
4 Page Body (5/5) 33.5000 22.750 40 *** ***
4 Page Gatefold (1/1) 30.5000 22.750 80 *** ***
4 Page Gatefold (2/2) 30.5000 22.750 80 *** ***
4 Page Gatefold (4/4) 30.5000 22.750 80 *** ***
4 Page Gatefold (5/5) 30.5000 22.750 80 *** ***
Press Stops, each 30.5000 22.750 80 *** ***
Plate Changes, per plate 30.5000 22.750 80 *** ***
6 Page Gatefold (4/4)(4/4) 19.1250 22.750 80 *** ***
Press Stops, each, per web 19.1250 22.750 80 *** ***
Plate Changes, per plate 19.1250 22.750 80 *** ***
8 Page Body (1/1) 33.5000 22.750 60 *** ***
8 Page Body (2/2) 33.5000 22.750 60 *** ***
8 Page Body (4/4) 33.5000 22.750 60 *** ***
8 Page Body (5/5) 33.5000 22.750 60 *** ***
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
Page 4 Quad/Graphics Inc. September 9, 1996
PLAYBOY ENTERPRISES
PAPER REQUIREMENTS
----------------------------------------------------------------------------------------------------------
8 1/8"X10 7/8" BOOK SIZE ROLL CYL. BASIS RATE
PAPER REQUIREMENTS WIDTH SIZE WEIGHT MAKEREADY PER/M
===========================================================================================================
8 Page Body (1/1+1/1) 33.5000 22.750 60 *** ***
8 Page Body (2/2+2/2) 33.5000 22.750 60 *** ***
8 Page Body (4/4+1/1) 33.5000 22.750 60 *** ***
8 Page Body (4/4+2/2) 33.5000 22.750 60 *** ***
8 Page Body (4/4+4/4) 33.5000 22.750 60 *** ***
8 Page Body (5/5+4/4) 33.5000 22.750 60 *** ***
8 Page Body (5/5+5/5) 33.5000 22.750 60 *** ***
8 Page Gatefold (4/4) 31.7500 22.750 60 *** ***
8 Page Gatefold (5/5) 31.7500 22.750 60 *** ***
Press Stops, each 31.7500 22.750 60 *** ***
Plate Changes, per plate 31.7500 22.750 60 *** ***
Press Stops, per web, each 33.5000 22.750 80 *** ***
Press Stops, per web, each 33.5000 22.750 60 *** ***
Plate Changes, per plate 33.5000 22.750 80 *** ***
Plate Changes, per plate 33.5000 22.750 60 *** ***
-----------------------------------------------------------------------------------------------------------
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
PLAYBOY ENTERPRISES
PAPER REQUIREMENTS
--------------------------------------------------------------------------------
8 1/8" X 10 7/8" Book Size ROLL CYL. BASIS RATE
PAPER REQUIREMENTS WIDTH SIZE WEIGHT MAKEREADY PER/M
================================================================================
12 Page Body (4/4) 66.875 33.500 40 *** ***
12 Page Body (5/5) 66.875 33.500 40 *** ***
16 Page Body (4/4) 89.125 33.500 40 *** ***
16 Page Body (5/5) 89.125 33.500 40 *** ***
20 Page Body (4/4) 55.750 33.500 40 *** ***
20 Page Body (5/5) 55.750 33.500 40 *** ***
24 Page Body (4/4) 66.875 33.500 40 *** ***
24 Page Body (5/5) 66.875 33.500 40 *** ***
28 Page Body (4/4) 78.000 33.500 40 *** ***
28 Page Body (5/5) 78.000 33.500 40 *** ***
32 Page Body (4/4) 89.125 33.500 40 *** ***
32 Page Body (5/5) 89.125 33.500 40 *** ***
36 Page Body (4/4) 66.875 50.250 40 *** ***
36 Page Body (5/5) 66.875 50.250 40 *** ***
40 Page Body (4/4) 55.750 33.500 40 *** ***
40 Page Body (5/5) 55.750 33.500 40 *** ***
48 Page Body (4/4) 89.125 50.250 40 *** ***
48 Page Body (5/5) 89.125 50.250 40 *** ***
48 Page Body (4/4) 66.875 33.500 40 *** ***
?? Page Body (5/5) 66.875 33.500 40 *** ***
?? Page Body (4/4) 78.000 33.500 40 *** ***
56 Page Body (5/5) 78.000 33.500 40 *** ***
60 Page Body (4/4) 55.750 50.250 40 *** ***
60 Page Body (5/5) 55.750 50.250 40 *** ***
64 Page Body (4/4) 89.125 33.500 40 *** ***
64 Page Body (5/5) 89.125 33.500 40 *** ***
72 Page Body (4/4) 66.875 50.250 40 *** ***
72 Page Body (5/5) 66.875 50.250 40 *** ***
84 Page Body (4/4) 78.000 50.250 40 *** ***
84 Page Body (5/5) 78.000 50.250 40 *** ***
96 Page Body (4/4) 89.125 50.250 40 *** ***
96 Page Body (5/5) 89.125 50.250 40 *** ***
Cylinder Changes, per cylinder 55.750 33.500 40 *** ***
Cylinder Changes, per cylinder 66.875 33.500 40 *** ***
Cylinder Changes, per cylinder 78.000 33.500 40 *** ***
Cylinder Changes, per cylinder 89.125 33.500 40 *** ***
Cylinder Changes, per cylinder 55.750 50.250 40 *** ***
Cylinder Changes, per cylinder 66.875 50.250 40 *** ***
Cylinder Changes, per cylinder 78.000 50.250 40 *** ***
Cylinder Changes, per cylinder 89.125 50.250 40 *** ***
--------------------------------------------------------------------------------
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
Quad/Graphics Inc. September 9, 1996
PLAYBOY ENTERPRISES
PAPER REQUIREMENTS
---------------------------------------------------------------------------------------------
8 1/8" X 10 7/8" Book Size ROLL CYL. BASIS RATE
PAPER REQUIREMENTS WIDTH SIZE WEIGHT MAKEREADY PER/M
=============================================================================================
12 Page Body (4/4) 66.875 33.500 45 *** ***
12 Page Body (5/5) 66.875 33.500 45 *** ***
16 Page Body (4/4) 89.125 33.500 45 *** ***
16 Page Body (5/5) 89.125 33.500 45 *** ***
20 Page Body (4/4) 55.750 33.500 45 *** ***
20 Page Body (5/5) 55.750 33.500 45 *** ***
24 Page Body (4/4) 66.875 33.500 45 *** ***
24 Page Body (5/5) 66.875 33.500 45 *** ***
28 Page Body (4/4) 78.000 33.500 45 *** ***
28 Page Body (5/5) 78.000 33.500 45 *** ***
32 Page Body (4/4) 89.125 33.500 45 *** ***
32 Page Body (5/5) 89.125 33.500 45 *** ***
36 Page Body (4/4) 66.875 50.250 45 *** ***
36 Page Body (5/5) 66.875 50.250 45 *** ***
40 Page Body (4/4) 55.750 33.500 45 *** ***
40 Page Body (5/5) 55.750 33.500 45 *** ***
48 Page Body (4/4) 89.125 50.250 45 *** ***
48 Page Body (5/5) 89.125 50.250 45 *** ***
48 Page Body (4/4) 66.875 33.500 45 *** ***
?? Page Body (5/5) 66.875 33.500 45 *** ***
?? Page Body (4/4) 78.000 33.500 45 *** ***
56 Page Body (5/5) 78.000 33.500 45 *** ***
60 Page Body (4/4) 55.750 50.250 45 *** ***
60 Page Body (5/5) 55.750 50.250 45 *** ***
64 Page Body (4/4) 89.125 33.500 45 *** ***
64 Page Body (5/5) 89.125 33.500 45 *** ***
72 Page Body (4/4) 66.875 50.250 45 *** ***
72 Page Body (5/5) 66.875 50.250 45 *** ***
84 Page Body (4/4) 78.000 50.250 45 *** ***
84 Page Body (5/5) 78.000 50.250 45 *** ***
96 Page Body (4/4) 89.125 50.250 45 *** ***
96 Page Body (5/5) 89.125 50.250 45 *** ***
Cylinder Changes, per cylinder 55.750 33.500 45 *** ***
Cylinder Changes, per cylinder 66.875 33.500 45 *** ***
Cylinder Changes, per cylinder 78.000 33.500 45 *** ***
Cylinder Changes, per cylinder 89.125 33.500 45 *** ***
Cylinder Changes, per cylinder 55.750 50.250 45 *** ***
Cylinder Changes, per cylinder 66.875 50.250 45 *** ***
Cylinder Changes, per cylinder 78.000 50.250 45 *** ***
Cylinder Changes, per cylinder 89.125 50.250 45 *** ***
---------------------------------------------------------------------------------------------
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
Quad/Graphic Inc. September 9, 1996
PLAYBOY ENTERPRISES
PAPER REQUIREMENTS
--------------------------------------------------------------------------------------------------------------
8 1/8" X 10 7/8" BOOK SIZE ROLL CYL. BASIS RATE
PAPER REQUIREMENTS WIDTH SIZE WEIGHT MAKEREADY PER/M
==============================================================================================================
12 Page Body (4/4) 66.875 33.500 50 *** ***
12 Page Body (5/5) 66.875 33.500 50 *** ***
16 Page Body (4/4) 89.125 33.500 50 *** ***
16 Page Body (5/5) 89.125 33.500 50 *** ***
20 Page Body (4/4) 55.750 33.500 50 *** ***
20 Page Body (5/5) 55.750 33.500 50 *** ***
24 Page Body (4/4) 66.875 33.500 50 *** ***
24 Page Body (5/5) 66.875 33.500 50 *** ***
28 Page Body (4/4) 78.000 33.500 50 *** ***
28 Page Body (5/5) 78.000 33.500 50 *** ***
32 Page Body (4/4) 89.125 33.500 50 *** ***
32 Page Body (5/5) 89.125 33.500 50 *** ***
36 Page Body (4/4) 66.875 50.250 50 *** ***
36 Page Body (5/5) 66.875 50.250 50 *** ***
40 Page Body (4/4) 55.750 33.500 50 *** ***
40 Page Body (5/5) 55.750 33.500 50 *** ***
48 Page Body (4/4) 89.125 50.250 50 *** ***
48 Page Body (5/5) 89.125 50.250 50 *** ***
48 Page Body (4/4) 66.875 33.500 50 *** ***
48 Page Body (5/5) 66.875 33.500 50 *** ***
56 Page Body (4/4) 78.000 33.500 50 *** ***
56 Page Body (5/5) 78.000 33.500 50 *** ***
60 Page Body (4/4) 55.750 50.250 50 *** ***
60 Page Body (5/5) 55.750 50.250 50 *** ***
64 Page Body (4/4) 89.125 33.500 50 *** ***
64 Page Body (5/5) 89.125 33.500 50 *** ***
72 Page Body (4/4) 66.875 50.250 50 *** ***
72 Page Body (5/5) 66.875 50.250 50 *** ***
84 Page Body (4/4) 78.000 50.250 50 *** ***
84 Page Body (5/5) 78.000 50.250 50 *** ***
96 Page Body (4/4) 89.125 50.250 50 *** ***
96 Page Body (5/5) 89.125 50.250 50 *** ***
Cylinder Changes, per cylinder 55.750 33.500 50 *** ***
Cylinder Changes, per cylinder 66.875 33.500 50 *** ***
Cylinder Changes, per cylinder 78.000 33.500 50 *** ***
Cylinder Changes, per cylinder 89.125 33.500 50 *** ***
Cylinder Changes, per cylinder 55.750 50.250 50 *** ***
Cylinder Changes, per cylinder 66.875 50.250 50 *** ***
Cylinder Changes, per cylinder 78.000 50.250 50 *** ***
Cylinder Changes, per cylinder 89.125 50.250 50 *** ***
--------------------------------------------------------------------------------------------------------------
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
Quad/Graphics Inc September 9, 1990
PLAYBOY ENTERPRISES
PAPER REQUIREMENTS
---------------------------------------------------------------------------------------------
8 1/8" X 10 7/8" BOOK SIZE ROLL CYL. BASIS RATE
PAPER REQUIREMENTS WIDTH SIZE WEIGHT MAKEREADY PER/M
=============================================================================================
12 Page Body (4/4) 66.875 33.500 60 *** ***
12 Page Body (5/5) 66.875 33.500 60 *** ***
16 Page Body (4/4) 89.125 33.500 60 *** ***
16 Page Body (5/5) 89.125 33.500 60 *** ***
20 Page Body (4/4) 55.750 33.500 60 *** ***
20 Page Body (5/5) 55.750 33.500 60 *** ***
24 Page Body (4/4) 66.875 33.500 60 *** ***
24 Page Body (5/5) 66.875 33.500 60 *** ***
28 Page Body (4/4) 78.000 33.500 60 *** ***
28 Page Body (5/5) 78.000 33.500 60 *** ***
32 Page Body (4/4) 89.125 33.500 60 *** ***
32 Page Body (5/5) 89.125 33.500 60 *** ***
36 Page Body (4/4) 66.875 50.250 60 *** ***
36 Page Body (5/5) 66.875 50.250 60 *** ***
40 Page Body (4/4) 55.750 33.500 60 *** ***
40 Page Body (5/5) 55.750 33.500 60 *** ***
48 Page Body (4/4) 89.125 50.250 60 *** ***
48 Page Body (5/5) 89.125 50.250 60 *** ***
48 Page Body (4/4) 66.875 33.500 60 *** ***
48 Page Body (5/5) 66.875 33.500 60 *** ***
56 Page Body (4/4) 78.000 33.500 60 *** ***
56 Page Body (5/5) 78.000 33.500 60 *** ***
60 Page Body (4/4) 55.750 50.250 60 *** ***
60 Page Body (5/5) 55.750 50.250 60 *** ***
64 Page Body (4/4) 89.125 33.500 60 *** ***
64 Page Body (5/5) 89.125 33.500 60 *** ***
72 Page Body (4/4) 66.875 50.250 60 *** ***
72 Page Body (5/5) 66.875 50.250 60 *** ***
84 Page Body (4/4) 78.000 50.250 60 *** ***
84 Page Body (5/5) 78.000 50.250 60 *** ***
96 Page Body (4/4) 89.125 50.250 60 *** ***
96 Page Body (5/5) 89.125 50.250 60 *** ***
Cylinder Changes, per cylinder 55.750 33.500 60 *** ***
Cylinder Changes, per cylinder 66.875 33.500 60 *** ***
Cylinder Changes, per cylinder 78.000 33.500 60 *** ***
Cylinder Changes, per cylinder 89.125 33.500 60 *** ***
Cylinder Changes, per cylinder 55.750 50.250 60 *** ***
Cylinder Changes, per cylinder 66.875 50.250 60 *** ***
Cylinder Changes, per cylinder 78.000 50.250 60 *** ***
Cylinder Changes, per cylinder 89.125 50.250 60 *** ***
---------------------------------------------------------------------------------------------
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
Quad/Graphics Inc. September 9, 1996
Playboy Enterprises, Inc. - Quad/Graphics, Inc.
Publication Contract
Exhibit E - Pro Forma
[LETTERHEAD OF PLAYBOY ENTERPRISES, INC. APPEARS HERE]
[LOGO OF QUAD/GRAPHICS]
NOVEMBER 1997 ISSUE - 188-PAGES + 2-PAGE INSERT + 2-PAGE INSERT - PRELIMINARY -
4,198,895 COPIES
1,113,354 INSERTS
================================================================================
---------------------------------------------------------
PREPARATORY OPERATIONS QUANTITY PRICE/M TOTAL
--------------------------------------------------------- -------- ------- -----
Enterprise Graphics - ***
-------------
-------------
Total Preparatory Operations...................................... ***
-------------
---------------------------------------------------------
PLATES & PRESSWORK
---------------------------------------------------------
Cover Form
----------
4-Page (6/6) As 4's
Original Makeready 1 *** ***
Run Rate 4,198,895 *** ***
Version Change Plates 31 *** ***
Credit To Run (6/4) (2) *** ***
U.V. Coat Makeready 1 *** ***
U.V. Coat Run 4,198,895 *** ***
Additional Makeready For Color OK 1 *** ***
Credit For Pick-Up Plates (1) *** ***
Offset Body Form's
------------------
Form 4/6/19/20 - (Folios: 25-32/37-44/151-158/159-166)
32-Pages (4/4)(4/4) As 8's
Original Makeready 1 *** ***
Run Rate 4,198,895 *** ***
Version Change Plates 4 *** ***
Form 2 - (Folios: 5-20)
16-Pages (4/4)(4/4) As 16's
Original Makeready 1 *** ***
Run Rate 4,198,895 *** ***
Form 1/3/5/7 - (Folios: 1-4/21-24/33-36/45-48)
16-Pages (4/4) As 8's
Original Makeready 1 *** ***
Run Rate 4,198,895 *** ***
Multiple Delivery As 4's 4,198,895 *** ***
Form 21/23 - (Folios: 167-174/177-184)
16-Pages (4/4)(4/4) As 8's
Original Makeready 1 *** ***
Run Rate 4,198,895 *** ***
Form 10 - (Folios: 61-68)
8-Pages (4/4)(4/4) As 8's
Original Makeready 1 *** ***
Run Rate 4,198,895 *** ***
Form 8 - (Folios: 49-56)
8-Pages (4/4)(4/4) As 4's
Original Makeready 1 *** ***
Run Rate 4,198,895 *** ***
Version Change Plates 2 *** ***
Form 9/18 - (Folios: 57-60/147-150)
8-Page (4/4) As 8's
Original Makeready 1 *** ***
Run Rate 4,198,895 *** ***
Version Change Plates 4 *** ***
Multiple Delivery As 4's 4,198,895 *** ***
Form 14 - (Folios: 105-110)
6-Page (5/4) as Gatefold
Original Makeready 1 *** ***
Run Rate 4,198,895 *** ***
Form 22 - (175-176)
2-Pages (4/4) As 2's
Original Makeready 1 *** ***
Run Rate 4,198,895 *** ***
Form SWE-PS
2-Pages (4/4) As 2's
Original Makeready 1 *** ***
Run Rate 1,113,354 *** ***
Perf Signature 1 *** ***
Run Rate 1,113,354 *** ***
Form Insert
2-Pages (5/5) As 2's
Original Makeready 1 *** ***
Run Rate 1,113,354 *** ***
Perf Signature 1 *** ***
Run Rate 1,113,354 *** ***
GRAVURE BODY FORMS
------------------
Form 11/12/13/15/16/17 - (Folios: 69-80/81-92/93-104/111-122/123-134/135-146)
72-Pages (4/4) As 12's
Original Makeready 1 *** ***
Run Rate 4,198,895 *** ***
Supplemental Engraving For Type Only
Black Cylinder Side 1 ***
Black Cylinder Side 2 ***
==========
Total Presswork........................................ ***
----------
*** Confidential information omitted pursuant to request for confidential
treatment filed seperately with Securities and Exchange Commission.
Page 3 Invoice No. 344727
--------------------------------------
INK QUANTITY PRICE/M TOTAL
-------------------------------------- -------- ------- -----
OFFSET INK COVERS
-----------------
1 6/Color Pages 0.711 4,198,895 *** ***
3 4/Color Pages 0.356 4,198,895 *** ***
OFFSET INK BODY
---------------
1 5/Color Pages 0.533 4,198,895 *** ***
86 4/Color Pages 0.322 4,198,895 *** ***
25 1/Color Pages 0.059 4,198,895 *** ***
3 Varnish Pages 0.592 4,198,895 *** ***
OFFSET INK INSERT
-----------------
2 4/Color Pages 0.322 1,113,354 *** ***
1 Metallic Pages 0.356 1,113,354 *** ***
OFFSET INK INSERT
-----------------
2 4/Color Pages 0.322 1,113,354 *** ***
GRAVURE INK
-----------
58 4/Color Pages 0.540 4,198,895 *** ***
14 1/Color Pages 0.106 4,198,895 *** ***
---------
Total Ink......................... ***
---------
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
Page 4 Invoice No. 344727
------------------------------------
PERFECT BINDING (Bind Only) QUANTITY PRICE/M TOTAL
------------------------------------ -------- ------- -----
32 Pocket Makeready ***
00 Xxxxxx Xxx - Military 16,254 *** ***
23 Pocket Run - International 179,315 *** ***
00 Xxxxxx Xxx - Xxxxxx 185,504 *** ***
00 Xxxxxx Xxx - Xxxxxxxxx 70,057 *** ***
00 Xxxxxx Xxx - Xxxxxxxx (XX) 4,825 *** ***
27 Pocket Run - Central/North Dakota 174,223 *** ***
28 Pocket Run - Western 88,433 *** ***
00 Xxxxxx Xxx - Xxxxxxxx (XX) 21,325 *** ***
28 Pocket Run - Texas 74,607 *** ***
28 Pocket Run - Gulf Atlantic 42,507 *** ***
00 Xxxxxx Xxx - Xxxxx Xxxxxxxx 43,207 *** ***
00 Xxxxxx Xxx - Xxxxxxx Xxxxxx/Xxxxxxxx 43,657 *** ***
00 Xxxxxx Xxx - Xxx Xxxxxxx 28,707 *** ***
00 Xxxxxx Xxx - Xxxxx Xxxxxxxx 99,657 *** ***
28 Pocket Run - Wisconsin (CG) 39,024 *** ***
28 Pocket Run - Chicago 34,522 *** ***
29 Pocket Run - Arizona (WS) 25,475 *** ***
00 Xxxxxx Xxx - Xxxxx Xxxxxxxxxx 52,107 *** ***
00 Xxxxxx Xxx - Xxxxx Xxxxxxxxxx 75,187 *** ***
29 Pocket Run - Georgia (SA) 23,150 *** ***
00 Xxxxxx Xxx - Xxxxxxx/Xxxxxxx 54,132 *** ***
29 Pocket Run - Massachusetts (NG) 40,050 *** ***
00 Xxxxxx Xxx - Xxx Xxxx 78,502 *** ***
------------ ------------
Total Bind Only 1,494,427 Copies ***
------------------------------------
SUBSCRIPTION (Bind/Mail)
------------------------------------
27 Pocket Run - Scent Free 000 *** ***
00 Xxxxxx Xxx - Xxx Xxxx Comps 2,750 *** ***
00 Xxxxxx Xxx - Xxxxxxxxx 220,105 *** ***
00 Xxxxxx Xxx - Xxxxxxx/Xxxxxxxx/Xxxxx Xxxxxx 483,001 *** ***
27 Pocket Run - APD Xxxxxx/Pontiac 8,129 *** ***
28 Pocket Run - Western 216,897 *** ***
00 Xxxxxx Xxx - Xxxxxxxx (XX) 48,002 *** ***
28 Pocket Run - Texas 167,111 *** ***
28 Pocket Run - Gulf Atlantic/Capital States/
South Atlantic Maryland 397,532 *** ***
00 Xxxxxx Xxx - Xxx Xxxxxxx 65,583 *** ***
00 Xxxxxx Xxx - Xxxxx Xxxxxxxx 237,201 *** ***
28 Pocket Run - Wisconsin (CE) 55,302 *** ***
28 Pocket Run - Chicago 89,978 *** ***
29 Pocket Run - Arizona (WS) 47,349 *** ***
00 Xxxxxx Xxx - Xxxxx Xxxxxxxxxx 118,806 *** ***
00 Xxxxxx Xxx - Xxxxx Xxxxxxxxxx 182,570 *** ***
29 Pocket Run - Georgia (SA) 52,954 *** ***
29 Pocket Run - Florida 151,731 *** ***
29 Pocket Run - Massachusetts (NG) 44,234 *** ***
00 Xxxxxx Xxx - Xxx Xxxx Comps 115,079 *** ***
------------ ------------
Total Subscription 2,704,468 Copies ***
------------
Total Perfect Binding & Mailing............................. ***
------------
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
Page 5 Invoice No. 344727
-------------------------------
PERFECT BINDING PREMIUMS
-------------------------------
First Pocket Changes 29 *** ***
Additional Pocket Changes 30 *** ***
Tip-On Mexico Version
Makeready 1 *** ***
Run 7,603 *** ***
Label-Aire - "Xxxxx Xxxxx-Interveiw"
Makeready 1 *** ***
Run 28,762 *** ***
***
----------
Additional To Produce Label-Aire
----------
Total Perfect Binding Premiums............................................ ***
-------------------------------
INLINE POLY/MAIL PREMIUMS
-------------------------------
Midnight Playmates And Erotic Sensations Sitma Insert
Makeready 1 *** ***
Run 48,645 *** ***
Locker Room Fantasy
Makeready 1 *** ***
Run 1,246 *** ***
Locker Room Fantasy And Playmates Exposed
Makeready 1 *** ***
Run 58,950 *** ***
Franklin Mint Insert
Makeready 3 *** ***
Run 2,704,468 *** ***
Attached Test (Reply Envelope)
Makeready 1 *** ***
Run (Canada) 48,651 *** ***
Run (Western) 109,367 *** ***
Run (Arizona) 29,108 *** ***
Run (North California) 65,095 *** ***
Run (South California) 99,108 *** ***
Run (Southwest) 116,206 *** ***
Run (Colorado) 30,370 *** ***
Run (Texas) 90,481 *** ***
Run (Kentucky) 282,290 *** ***
Run (Gulf Atlantic / South Atlantic / Capital State 161,203 *** ***
Run (Georgia) 29,603 *** ***
Run (Florida) 83,851 *** ***
Run (Maryland / DC) 30,883 *** ***
Run (Massachussetts) 28,761 *** ***
***Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
Page 6 Invoice No. 34427
----------------------------------------
INLINE POLY/MAIL PREMIUMS (cont.)
----------------------------------------
Run (New England) 32,471 *** ***
Run (North Atlantic) 133,058 *** ***
Run (New York) 64,120 *** ***
Xxx (Xxxxx Xxxxxx) 5,216 *** ***
Run (Wisconsin) 36,606 *** ***
Run (Chicago) 48,137 *** ***
Run (Test #16) 19,731 *** ***
Run (Test #17) 19,693 *** ***
Run (Test #18) 19,674 *** ***
Run (Test #19) 19,686 *** ***
Run (Test #20) 19,733 *** ***
Run (Test #21) 19,689 *** ***
Run (Test #22) 19,655 *** ***
Pocket Changes (Sitma) 26 *** ***
Demographics Insert Insertion
Makeready (Body Forms And Cover) 1 *** ***
Run 2,568,393 *** ***
Inkjet Addressing And Formatting
Upcharge 2,568,072 *** ***
Additional Unit For Attached Mail Piece
Inkjet Addressing And Formatting Upcharge
Makeready 1 *** ***
Run Rate 9,612 *** ***
Offline Polywrapping Base Piece
Makeready 1 *** ***
Run Rate (CDS) 5,000 *** ***
=======
Total Inline Poly/Mail Premiums................ ***
-------
----------------------------------------
NEWSSTAND & BULK PACKING
----------------------------------------
Shrinkwrap In Bundles 1,382,450 *** ***
Label Preparation 1,382,450 *** ***
Clear Polybag 664,225 *** ***
Version Labels ***
=======
Total Newsstand & Bulk Packing.................. ***
-------
----------------------------------------
OFFLINE MAILING
----------------------------------------
Off-Line Mail With Paper Labels
Makeready 1 *** ***
Run 93,157 *** ***
Prepare Labels for New York Comps: Xxxxxxx # 00000 ***
List Changes 22 *** ***
***Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
Page 7 Invoice No. 344727
----------------------------------------
OFFLINE MAILING (CONT)
----------------------------------------
Offline Polywrapping Base Piece
Makeready 1 *** ***
Run 93,157 *** ***
-------
Total Offline Mailing.................... ***
-------
----------------------------------------
PACKAGING & HANDLING
----------------------------------------
TV Reader Service Copies
Bulk In Cartons 426 *** ***
XxXxxxxx Direct Copies
Bulk In Cartons 243 *** ***
Furnished Inserts, Per Skid 116 *** ***
Furnished Paper, Per Cwt. 3,724,654 *** ***
-------
Total Packing & Handling.............. ***
-------
***Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
Page 8 Invoice No. 344727
----------------------------------------------
COST SUMMARY
----------------------------------------------
Preparatory Operations ***
Presswork ***
Ink ***
Perfect Bind And Mailing ***
Perfect Binding Premiums ***
In-Line Poly/Mail Packing ***
Newsstand & Bulk Packing ***
Off-Line Mailing ***
Packing & Handling ***
-------------
-------------
GRAND TOTAL............................ ***
-------------
cc: Xxx Xxxxxx (Sales)
Xxxxxx Xxxxxxx (CSR)
Xxxxx Xxxxxxx (Billing)
Past-Due Invoices Are Subject To 1 1/2% Service Charge Per Month On Outstanding
Balance.
*** Confidential information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.
Playboy Enterprises, Inc. - Quad/Graphics, Inc.
Publication Contract
Exhibit F - Holiday and Production Schedule
SCHEDULE FOR TITLE:PLAYBOY (PLA3)
ISSUE: 97 PLAYBOY
ISSUE Feb-97 FEB BIND-IN Mar-97 Apr-97
JOB NUMBER 97-0218 97-0219 97-0220
PAGES GRAVURE 64PP 64PP 64PP
PAGES OFFSET 114PP 2PP 114PP 114PP
FINAL PAGE BREAKDOWN DUE 11/27/96-WE 12/26/96-TH 01/23/97-TH
COVER FILM DUE AT QUAD 11/27/96-WE 12/23/96-MO 01/22/97-WE
OFFSET FILM DUE AT QUAD 11/30/96-SA 11/20/96-WE 12/27/96-FR 01/25/97-SA
GRAVURE FILM DUE AT QUAD 12/03/96-TU 12/28/96-SA 01/28/97-TU
BPS OUT 2 12/04/96-WE 12/30/96-MO 01/29/97-WE
GRAV RED-PRINTS SHIP TO PB 12/04/96-WE 12/30/96-MO 01/29/97-WE
PRESS START OFFSET 12/07/96-SA 11/27/96-WE 01/04/97-SA 02/01/97-SA
QUANTITY 1600000
PRESS PROOF SHOWN 12/06/96-FR 01/03/97-FR 01/31/97-FR
PRESS START GRAVURE 12/10/96-TU 01/07/97-TU 02/04/97-TU
BINDING INSTRUCTIONS DUE 12/05/96-TH 01/02/97-TH 01/30/97-TH
GALLEY DUE 11/19/96-TU 12/17/96-TU 01/14/97-TU
INSERTS DUE 12/13/96-FR 01/10/97-FR 02/07/97-FR
INK-JET TAPES DUE (1ST) 12/09/96-MO 01/06/97-MO 02/03/97-MO
INK-JET TAPES DUE (2ND) 12/16/96-MO 01/13/97-MO 02/10/97-MO
BIND START (P) 12/17/96-TU 01/14/97-TU 02/11/97-TU
NEWS STAND START SHIP 12/24/96-TU 01/21/97-TU 02/18/97-TU
NEWS STAND CYCLE# 9704 9708 9712
QUAN NEWS STAND 1550000 1550000 1550000
MAIL START 01/02/97-TH 01/30/97-TH 02/27/97-TH
MAIL COMPLETE 01/09/97-TH 02/06/97-TH 03/06/97-TH
MAIL QUANTITY 2850000 2850000 2850000
ON SALE DATE 01/14/97-TU 02/11/97-TU 03/11/97-TU
BASED ON PAGES AND QUANTITIES AS INDICATED,
PLUS UV COATED COVER 4/C, (8 1/8 X 10 7/8)
PERFECT BOUND, 600M NEWS STAND
BOOKS POLYBAG WITH CLEAR POLY, ALL SUBS
INKJET ADDRESS AND INLINE POLYBAG WITH PRINTED POLY
** FEBRUARY ISSUE WILL POLY 200M N/S WITH A DISC
AND 900M SUBS WITH A DISC.
ALSO ADDING 1/6MM 2PP BRC 11 1/4 X 8 3/8
FLAT UNTRIMMED FOR DOMESTIC NEWSSTAND
VERT. AND HORIZ. PERFING NEEDED, 75# HI BULK PAPER 11.
SALES BFULLER CSR JMLUEDT
SCHEDULE FOR TITLE:PLAYBOY (PLA3)
ISSUE: 97 PLAYBOY
ISSUE May-97 Jun-97 Jul-97 Aug-97
JOB NUMBER 97-0221 97-0222 97-0223 97-0224
PAGES GRAVURE 64PP 64PP 64PP 64PP
PAGES OFFSET 114PP 114PP 114PP 114PP
FINAL PAGE BREAKDOWN DUE 02/20/97-TH 03/20/97-TH 04/24/97-TH 05/22/97-TH
COVER FILM DUE AT QUAD 02/19/97-WE 03/19/97-WE 04/23/97-WE 05/21/97-WE
OFFSET FILM DUE AT QUAD 02/22/97-SA 03/22/97-SA 04/26/97-SA 05/24/97-SA
GRAVURE FILM DUE AT QUAD 02/25/97-TU 03/25/97-TU 04/29/97-TU 05/27/97-TU
BPS OUT 2 02/26/97-WE 03/26/97-WE 04/30/97-WE 05/28/97-WE
GRAV RED-PRINTS SHIP TO PB 02/26/97-WE 03/26/97-WE 04/30/97-WE 05/28/97-WE
PRESS START OFFSET 03/01/97-SA 03/29/97-SA 05/03/97-SA 05/31/97-SA
PRESS PROOF SHOWN 02/28/97-FR 03/28/97-FR 05/02/97-FR 05/30/97-FR
PRESS START GRAVURE 03/04/97-TU 04/01/97-TU 05/06/97-TU 06/03/97-TU
BINDING INSTRUCTIONS DUE 02/27/97-TH 03/27/97-TH 05/01/97-TH 05/29/97-TH
GALLEY DUE 02/11/97-TU 03/11/97-TU 04/15/97-TU 05/13/97-TU
INSERTS DUE 03/07/97-FR 04/04/97-FR 05/09/97-FR 06/06/97-FR
INK-JET TAPES DUE (1ST) 03/03/97-MO 03/31/97-MO 05/05/97-MO 06/02/97-MO
INK-JET TAPES DUE (2ND) 03/10/97-MO 04/07/97-MO 05/12/97-MO 06/09/97-MO
BIND START (P) 03/11/97-TU 04/08/97-TU 05/13/97-TU 06/10/97-TU
NEWS STAND START SHIP 03/18/97-TU 04/15/97-TU 05/20/97-TU 06/17/97-TU
NEWS STAND CYCLE# 9716 9720 9725 9729
QUAN NEWS STAND 1550000 1550000 1550000 1550000
MAIL START 03/27/97-TH 04/24/97-TH 05/29/97-TH 06/26/97-TH
MAIL COMPLETE 04/03-97-TH 05/01/97-TH 05/05/97-TH 07/03/97-TH
MAIL QUANTITY 2850000 2850000 2850000 2850000
ON SALE DATE 04/08/97-TU 05/05/97-TU 06/10/97-TU 07/06/97-TU
BASED ON PAGES AND QUANTITIES AS INDICATED,
PLUS UV COATED COVER 4/C, (8 1/8 X 10 7/8)
PERFECT BOUND, 600M NEWS STAND
BOOKS POLYBAG WITH CLEAR POLY, ALL SUBS
INKJET ADDRESS AND INLINE POLYBAG WITH PRINTED POLY
** FEBRUARY ISSUE WILL POLY 200M N/S WITH A DISC
AND 900M SUBS WITH A DISC.
ALSO ADDING 1/6MM 2PP BRC 11 1/4 X 8 3/8
FLAT UNTRIMMED FOR DOMESTIC NEWSSTAND
VERT. AND HORIZ. PERFING NEEDED, 75# HI BULK PAPER 11.
SALES BFULLER CSR JMLUEDT
SCHEDULE FOR TITLE:PLAYBOY (PLA3)
ISSUE: 97 PLAYBOY
ISSUE Sep-97 Oct-97 Nov-97 Dec-97 Jan-98
JOB NUMBER 97-0225 97-0226 97-0227 97-0228 97-0255
PAGES GRAVURE 64PP 64PP 64PP 96PP 96PP
PAGES OFFSET 114PP 114PP 114PP 114PP 114PP
FINAL PAGE BREAKDOWN DUE 06/19/97-TH 07/17/97-TH 08/21/97-TH 09/18/97-TH 10/23/97-TH
COVER FILM DUE AT QUAD 06/18/97-WE 07/16/97-WE 08/20/97-WE 09/17/97-WE 10/22/97-WE
OFFSET FILM DUE AT QUAD 06/21/97-SA 07/19/97-SA 08/23/97-SA 09/20/97-SA 10/25/97-SA
GRAVURE FILM DUE AT QUAD 06/24/97-TU 07/22/97-TU 08/26/97-TU 09/23/97-TU 10/28/97-TU
BPS OUT 2 06/25/97-WE 07/23/97-WE 08/27/97-WE 09/24/97-WE 10/29/97-WE
GRAV RED-PRINTS SHIP TO PB 06/25/97-WE 07/23/97-WE 08/27/97-WE 09/24/97-WE 10/29/79-WE
PRESS START OFFSET 06/28/97-SA 07/26/97-SA 08/30/97-SA 09/27/97-SA 11/01/97-SA
PRESS PROOF SHOWN 06/27/97-FR 07/25/97-FR 08/29/97-FR 09/26/97-FR 10/31/97-FR
PRESS START GRAVURE 07/01/97-TU 07/29/97-TU 09/02/97-TU 09/30/97-TU 11/04/97-TU
BINDING INSTRUCTIONS DUE 06/26/97-TH 07/24/97-TH 08/28/97-TH 09/25/97-TH 10/30/97-TH
GALLEY DUE 06/10/97-TU 07/08/97-TU 08/12/97-TU 09/09/97-TU 10/14/97-TU
INSERTS DUE 07/03/97-TH 08/01/97-FR 09/05/97-FR 10/03/97-FR 11/07/97-FR
INK-JET TAPES DUE (1ST) 06/30/97-MO 07/28/97-MO 08/30/97-SA 09/29/97-MO 11/03/97-MO
INK-JET TAPES DUE (2ND) 07/07/97-MO 08/04/97-MO 09/06/97-SA 10/06/97-MO 11/10/97-MO
BIND START (P) 07/08/97-TU 08/05/97-TU 09/09/97-TU 10/07/97-TU 11/11/97-TU
NEWS STAND START SHIP 07/15/97-TU 08/12/97-TU 09/16/97-TU 10/14/97-TU 11/18/97-TU
NEWS STAND CYCLE# 9733 9737 9742 9746 9751
QUAN NEWS STAND 1550000 1550000 1550000 1550000 1550000
MAIL START 07/24/97-TH 08/21/97-TH 09/25/97-TH 10/23/97-TH 11/27/97-TH
MAIL COMPLETE 07/31-97-TH 08/28/97-TH 10/02/97-TH 10/30/97-TH 12/04/97-TH
MAIL QUANTITY 2850000 2850000 2850000 2850000 2850000
ON SALE DATE 08/05/97-TU 09/02/97-TU 10/07/97-TU 11/04/97-TU 12/09/97-TU
BASED ON PAGES AND QUANTITIES AS INDICATED,
PLUS UV COATED COVER 4/C, (8 1/8 X 10 7/8)
PERFECT BOUND, 600M NEWS STAND
BOOKS POLYBAG WITH CLEAR POLY, ALL SUBS
INKJET ADDRESS AND INLINE POLYBAG WITH PRINTED POLY
** FEBRUARY ISSUE WILL POLY 200M N/S WITH A DISC
AND 900M SUBS WITH A DISC.
ALSO ADDING 1/6MM 2PP BRC 11 1/4 X 8 3/8
FLAT UNTRIMMED FOR DOMESTIC NEWSSTAND
VERT. AND HORIZ. PERFING NEEDED, 75# HI BULK PAPER 11.
SALES BFULLER CSR JMLUEDT
Playboy Enterprises, Inc.
Publication Contract
Exhibit F - Holiday Schedule & Holiday Rate
Quad/Graphics Holiday Schedule**
--------------------------------
New Year's Day 7 a.m. to 7 a.m. January 2nd
Easter 7 p.m. Saturday to 7 p.m. Sunday
Memorial Day 7 p.m. Sunday to 7 p.m. Monday
Independence Day 7 a.m to 7 a.m
Labor Day 7 p.m. Sunday to 7 p.m. Monday
Thanksgiving Day 7 a.m. to 7 a.m.
Christmas Eve Day 7 a.m. to 7 a.m.
Christmas Day 7 a.m. to 7 a.m.
New Year's Eve Day 7 a.m. to 7 a.m.
Founder's Day Second Sunday in January
7 p.m. Saturday to 7 p.m. Sunday
**Holiday periods are subject to change by management. Holiday period will be
celebrated when possible by all employees on the day and night of that holiday,
except for Easter and Founder's Day. Easter will be on 7 p.m. Saturday shift
and Easter Sunday day shift. The Founder's Day holiday will be determined each
year by the President and may change from time to time.
********************************************************************************
Holiday Rate = 20% upcharge applied to the production operations taking place on
a holiday subject to the provisions of Section 10.
February 11, 1997
Playboy Enterprises, Inc. - Quad/Graphics, Inc.
Publication Contract
Exhibit G - Paper Specifications/Shipping
PLAYBOY ENTERPRISES, INC.
SEPTEMBER 25, 1996
EXHIBIT G - QUAD/GRAPHICS' PAPER AND SHIPPING SPECIFICATIONS
--------------------------------------------------------------------------------
PRINTABILITY
--------------------------------------------------------------------------------
Roll-fed paper is to be wound tightly with uniform tension, free of scrap,
slitter dust, slime holes, spots, welts, piling tendencies, edge cracks, or
other defects.
Rolls must be uniform of moisture and caliper across the rolls and from roll to
roll. Offset paper must be suitable for heat set web offset printing with 4 and
5 colors, and drying ovens operating at 325-350 degrees. Gravure paper must be
suitable for printing with 4 and 5 colors using toluene based inks, and steam
dryers operating at 150 degrees.
All mill splices are to be flagged. The maximum allowable number of mill splices
in a 40" diameter roll is three (four splices in a 45" roll and five in a 50"
roll), with an average of no more than one per roll. No mill splices should be
within 2" of each other, the outside of the roll, or the core. Mill splices must
be diagonal and correctly made to run through heat set web offset, or
rotogravure presses. We suggest 3M splice materials. Dispersible type tape must
be used for splices.
WEB BREAKS
--------------------------------------------------------------------------------
We will accept up to 5 web breaks per 100 rolls due to the condition of the
paper. Breaks beyond this limit are the responsibility of the mill together with
the cost of lost presstime.
WRAPPING, ROLL DIAMETER AND WEIGHT
--------------------------------------------------------------------------------
Roll stock should be properly wrapped to protect against moisture and mechanical
damage, particularly the edges, in normal handling and warehouse storage.
-------Diameter------ Max
Press Min. Ideal Max Weight
-------------------------------------------------------------
OFFSET - M1000 38" 45" 45" 2,400#
OFFSET - M110 38" 45" 45" 2,300#
OFFSET - M3000 45" 50" 50" 5,500#
GRAVURE 40" 45" 50" 8,000#
CORES
--------------------------------------------------------------------------------
All paper must be wound tightly on three inch (inside diameter) cores which are
the same width as the paper. Paper must be well fastened to the core to prevent
slipping. For cores requiring keyways, the keyways are 5/8" wide by 3/4" deep
with a maximum width of 3/4"
Press Type of Core Keyways
--------------------------------------------------------------------------------
OFFSET - M1000 Fiber Required
OFFSET - M110 Fiber Not Required
OFFSET - M3000 Fiber Required
GRAVURE Fiber or Iron Not Required
-----------------------------------------------------
NOTIFICATION AND IDENTIFICATION OF ALL STOCK
BEFORE IT'S LOADED FOR SHIPMENT
TO QUAD/GRAPHICS IS ABSOLUTELY REQUIRED.
FAILURE COULD CAUSE SHIPMENT TO BE REFUSED.
-----------------------------------------------------
STOCK IDENTIFICATION
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1). Grade name and type of paper.
2). Basis weight and roll width.
3). Gross weight, net and tare weight.
4). Mill name and mill order number.
5). Mill roll number.
6). Customer name - when purchased by a merchant, the merchant is required
to furnish the Customer's name/order number to the mill.
7). Title and/or purchase order number.
8). Direction of unwind and felt or wire side out.
9). Metered rolls must indicate yardage.
Continued (Page 2 of 2)
SHIPPING AND RECEIVING BY TRUCK AND RAIL
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Paper is received at all Quad/Graphics facilities 24 hours per day, 7 days per
week, and most holidays By Appointment Only,
-------------------
Appointments for each plant are to be made 24 hours in advance Monday through
-------------------
Friday, 7:00 am through 5:00 pm. Because our Sussex and Pewaukee, WI facilities
and our Thomaston and The Rock, GA facilities are only 5 miles apart each, truck
drivers will be directed to the correct plant, upon arrival.
Railcars must have a minimum door opening of 8 feet and preferably have a
cushioned underframe. Container and truck/trailers are to have a minimum door
opening of 92".
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Most Important! Quad/Graphics requires all paper xxxxx to send advance
notification of all railcars shipped. Although not required,
Quad/Graphics preferred mode of delivery is rail. EDI is the preferred method
of notification. If this computer link has not yet been established, please
contact Xxxxx Xxxxx at (000) 000-0000.
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--------------------------------------------------------------------------------
PLEASE NOTE: PAPER WILL NOT BE ACCEPTED IF DELIVERED MORE THAN FIVE DAYS BEFORE
THE DUE DATE UNLESS NOTIFIED OTHERWISE.
--------------------------------------------------------------------------------
PLANT TRUCK ADDRESS RAIL ADDRESS
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PEWAUKEE X000X0000 Xxxxxxxxxxxx Xx Quad "00" Xxxx Xxx
Xxxxxxxx, XX 00000 Xxxx Xx Xxx, XX
(000) 000-0000 xxx: 0000 Wisconsin Central Ltd.
SUSSEX N63 X00000 Xxxxxxx 00 Xxxx "02" Xxxx Xxx
Xxxxxx, XX 00000 Xxxx Xx Xxx, XX
(000) 000-0000 xxx: 0000 Wisconsin Central Ltd.
LOMIRA 000 Xxxxxx Xxxx Quad "04" Xxxx Xxx
Xxxxxx, XX 00000 Xxxx Xx Xxx, XX
(000) 000-0000 xxx: 0000 Wisconsin Central Ltd.
HARTFORD 0000 X. Xxxxxx Xxxxxx Quad "05" Xxxx Xxx
Xxxxxxxx, XX 00000 Xxxx Xx Xxx, XX
(000) 000-0000 xxx: 0000 Wisconsin Central Ltd.
NEW BERLIN 16555 West Xxxxxx St. Quad "09" Xxxx Xxx
Xxx Xxxxxx, XX 00000 Xxxx Xx Xxx, XX
(000) 000-0000 Wisconsin Central Ltd.
WEST ALLIS 000 Xxxxx 000xx Xx. Quad "13" Dist Ctr
West Allis, WI 53214 Fond Du Lac, WI
(000) 000-0000 Wisconsin Central Ltd.
MARTINSBURG Xxxxx 0 Xxx 000X Quad/Graphics Inc.
XX Xxx 000 Xxxxx 0 Xxx 000X
Xxxxxxxxxxx, XX 00000 XX Xxx 000
(000) 000-0000 Martinsburg, WV 2540
CSX Transportation
SARATOGA 00 Xxxxxxxxxxxx Xxxx Quad/Graphics Inc.
Saratoga Springs, NY 00 Xxxxxxxxxxxx Xx.
00000 Xxxxxxxx Xxxxxxx, XX
(000) 000-0000 Canadian Pacific XX
XXX XXXX 000 Xxxxxxxxxxxx Xx. Quad/Graphics Inc.
Xxx Xxxx, XX 00000 000 Xxxxxxxxxxxx Xx.
(000) 000-0000 Xxx Xxxx, XX 00000
Norfolk Southern Corp
THOMASTON 000 XxXxxxxx Xxxxxxx Quad/Graphics Inc.
Xxxxxxxxx, XX 00000 000 XxXxxxxx Xxxxxxx
(000) 000-0000 Thomaston, GA 3029
Norfolk Southern Corp
Playboy Enterprises, Inc. - Quad/Graphics, Inc.
Publication Contract
Exhibit H - Sample Issues of Magazines
QUALITY SAMPLE TO BE SELECTED BY PUBLISHER
