EXHIBIT 10.20
Xxxxx Distribution Systems, Inc.
000 Xxx Xxxx Xxxxxx
X.X. Xxx 000
Xxxxxxx, Xxx Xxxxxx 00000
Service Agreement
SERVICE AGREEMENT between Xxxxx Distribution Systems, Inc. (CDS), located at
000 Xxx Xxxx Xxxxxx, Xxxxxxx, XX 00000 and Princeton Publishing (PRINCETON),
located at 00 Xxxx 00xx Xxxxxx, Xxx Xxxx, XX 00000, dated this 19th day of
April, 1996.
1. PRINCETON appoints CDS to provide the physical distribution of the
newsstand copies of all publications it publishes and prints consigned to ID
wholesalers and international freight forwarders as listed in the 1995 "Roster
of National Distributors and Magazine Wholesalers" published by Playboy.
The rate for distribution if $7.50 per 100 lbs. which is applicable ex CD's
dock to ID wholesalers as listed in the "Roster of National Distributors and
Magazine Wholesalers". Further, CDS extends this rate to the select group of
non-wholesalers listed on the Alternate Wholesaler sheet. All other shipments
are rated at $.50 per pound, with each subject to a $10.00 minimum charge.
Except for any fuel surcharges which may be imposed, these rates will remain
in effect for a period of one year.
2. CDS agrees to transport at its expense all trailers containing a minimum
of 38,000 lbs. that move directly to its terminals beyond Alsip, IL.
3. PRINCETON agrees to prepare four sortations, one for each CDS terminal
located in Alsip, Nashville, Kansas City and Scranton, and to load these for
direct dispatch to the respective terminal facilities at CDS' request.
PRINCETON shall be responsible for and pay to third party trucks the expense
of transporting loads from Sussex, WI to Alsip, IL.
4. Payment by PRINCETON to CDS is to be made as follows:
For those titles distributed by Xxxxx, CDS shall invoice and shall be
paid directly by Xxxxx.
For those titles distributed by Xxxxxx, CDS shall invoice PRINCETON and
be paid directly by XXXXXX per the assignments, consistent with part practices
for XXXXX.
Those shipments distributed by PRINCETON to other than ID wholesalers
that are not billed to the national distributor shall be invoiced by CDS to
PRINCETON and be paid to CDS by PRINCETON.
5. PRINCETON agrees that national distributors shall advance and pay all
Canadian GST taxes. PRINCETON further agrees that national distributors are
to provide proper export documentation and clearance for Canadian border
crossing and that national distributors shall be responsible to deliver such
documentation to CDS in advance of shipment.
6. PRINCETON agrees that CDS shall be responsible for forty percent (40%)
of wholesale invoice value for all loss, damage, shortage and non-delivery of
publications.
7. CDS agrees to provide completion notices by facsimile as per agreement.
The term of this Agreement shall be for a period of one (1) year commencing
May 20, 1996 through May 20, 1997.
PRINCETON PUBLISHING XXXXX DISTRIBUTION SYSTEMS, INC.
By: /s/ Xxxxx XxXxxxxxx By: Xxxxxx Karashevian
Title: President Title: Vice President
Date: 5/20/96 Date: 5/24/96
