Exhibit 10.1
XXXXX DISTRIBUTION SYSTEMS, INC.
A MEMBER OF THE XXXXX GROUP, INC.
000 Xxx Xxxx Xxxxxx
XX Xxx 000
Xxxxxxx, Xxx Xxxxxx 00000
Telephone: (000) 000-0000
FAX: (000) 000-0000
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 23rd day of
May, 1997.
1. PRINCETON appoints CDS to provide the physical distribution of the
newsstand copies of all publications it publishes consigned to ID wholesalers
and international freight forwarders as listed in the 1997 issue of "Magazine
& Bookseller."
The rate for distribution is $7.40 per 100 lbs. which is applicable ex CDS'
dock to ID wholesalers. It is predicated on a national distribution pattern
with allotments to 200+ U.S. and Canada wholesalers. A change in pattern may
cause a change in the distribution rate. Shipments to other than ID
wholesalers in the continental U.S., weighing less than 300 lbs., will be
rated at 48¢ per pound. Except for any fuel surcharges which may be
imposed, these rates will remain in effect for one and one-half years,
providing the average weekly tonnage remains at 130,000 lbs. The average
tonnage will be measured quarterly. If the average weekly tonnage drops below
this threshold for two consecutive quarters, the rate for subsequent shipments
will revert to the attached scale.
2. PRINCETON agrees to unitize copies into bundles of a standard quantity,
preparing the appropriate amount of full and odd quantity packages to fulfill
the individual wholesaler allotments. PRINCETON will separate fulls and odds
into four sorts, one for each CDS terminal (located in Matteson, Nashville,
Abingdon and Scranton). Bundles will be placed on pallets and stretch
wrapped. Pallets will be marked to show title, issue, edition, total bundles
and copies on the pallet.
Bundles will be marked to show edition. The edition code must be coordinated
with and be the same as that used by the national distributor on their galley.
3. CDS agrees to transport at its expense all trailers containing a
minimum of 38,000 lbs. that move directly to its terminals beyond Matteson,
IL.
4. PRINCETON agrees to prepay all transportation charges. Existing
assignments shall remain in effect. For titles distributed by Xxxxxx, CDS
shall invoice PRINCETON and be paid directly by Xxxxxx per the assignment.
5. PRINCETON agrees that CDS shall be responsible for forty percent (40%)
of wholesale invoice value for any shipment for which it cannot prove
delivery. Consignees are required to report delivery exceptions to CDS or its
agent within 24 hours from delivery by fax. CDS will provide an 800 fax
number to facilitate this requirement. CDS will provide the consignee with a
reference number to substantiate that a fax was received. Claims must include
a copy of the signed delivery receipt and the reference number. Otherwise,
they will be denied.
The term of this Agreement shall be for a period of one and one half (1-1/2)
years commencing June 1, 1997 through January 1, 1999.
PRINCETON PUBLISHING XXXXX DISTRIBUTION SYSTEMS, INC.
By: /s/ Xxxxx XxXxxxxxx By: /s/
Title: President Title: Vice President
Date: 6/12/97 Date: June 12, 1997
PRINCETON RATE SCALE
Weekly average of 130,000 lbs. $7.50 per 100 lbs.
Under 100,000 lbs. $ 9.00
100,000 - 110,000 8.50
110,000 - 120,000 8.00
120,000 - 130,000 7.80
130,000 - 140,000 7.40
140,000 - 150,000 7.30
150,000 - 160,000 7.25
160,000 - 200,000 7.20
Over 200,000 lbs. 7.00
