Exhibit 10.14
PLEASE NOTE THAT WE HAVE REQUESTED CONFIDENTIAL TREATMENT FOR CERTAIN PORTIONS
OF THIS EXHIBIT, WHICH PORTIONS HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. A [*] INDICATES THE PLACES IN THIS EXHIBIT
WHERE MATERIAL HAS BEEN OMITTED.
WAREHOUSING AND DISTRIBUTION PURCHASE AGREEMENT
BY AND BETWEEN
CHATTEM CONSUMER PRODUCTS
AND
MILITARY RESALE GROUP
Military Resale Group ("Distributor"), located at 0000 Xxxxxxx Xxxxx, Xxxxxxxx
Xxxxxxx, XX 00000 and Chattem Consumer Products (3530) ("Manufacturer") located
at____________________ , enter into this Warehousing and Distribution Agreement
("this Agreement") in Colorado Springs, Colorado this 27 day of March 2002.
1. Manufacturer appoints Distributor to warehouse and deliver Manufacturer's
product ("Product") to the military commissaries and exchanges ("the
Military") listed in Schedule A, which is attached to and made part of this
agreement.
2. Distributor shall purchase, for resale by Manufacturer to the Military,
authorized Products from Manufacturer at Manufacturer's published
Distributor list prices and will attempt to maintain sufficient inventory
levels necessary to meet the daily order requirements of the Military.
Manufacturer agrees to ship all products on a "shipper sort and segregate
by SKU at customer dock" basis. The terms for purchases under this
provision are [*].
3. Manufacturer and/or its representative is solely responsible for soliciting
and obtaining orders for the sale of Products to the Military, except for
orders transmitted electronically the Military resale employees
participating in the Frequent Delivery Program. Distributor assumes no
sales responsibilities under this Agreement, and all Product purchased by
Distributor is on a guaranteed sales basis with floor stock protection
provided by the Manufacturer. Distributor shall rotate stock and notify
Manufacturer and/or its representative if any Product shows no movement for
sixty (60) days. If
1
Manufacturer is unable to arrange for the sale of any Product to the
Military within the thirty (30) days of notice of any such Product or any
excess product quantities as identified by the Distributor, at its sole
discretion the Distributor shall invoice the Manufacturer and the
Manufacturer shall pay Distributor the full cost of the Product including
Distributor's storage and handling fee and remove such Product from
Distributor's warehouse(s) at the Manufacturer's expense Manufacturer
authorizes Distributor to sell to any third party without public notice any
such product remaining in its warehouse more than thirty (3) days after
notice given to Manufacturer and/or its authorized agent. Any net funds
received will be applied first to applicable storage and handling fees and
then to recovery of product cost. Any funds in excess of that owed to
Distributor will be remitted to Manufacturer, any balance due to
Distributor will be subject to interest charges and collection fees and
procedures as provided for in Paragraph 5.
4. Manufacturer or its representative, immediately upon receipt of an order
from the Military, shall telephone, fax or mail to Distributor all
information regarding such order to permit Distributor at least (24) hours
to prepare and deliver the Product ordered (48 hours for outlying
destination destinations). Shelf stocking of delivered Product at the
Military installations shall be the sole responsibility of the
Manufacturer. Distributor shall product a bi-monthly roll-up detailing
deliveries to and acceptance of Product by the Military for manufacturers
participating in the Frequent Delivery Program, and shall maintain signed
delivery documents recording such deliveries.
5. Distributor shall invoice Manufacturer for any delivered Product at the
price shown on the Manufacturer's published Distributor price list plus
Distributor's storage and handling fee as specified in Schedule C, which is
attached to and made a part of this Agreement. Distributor agrees to
transmit via established EDI Transaction sets all invoices. If paper copies
of such invoices and supporting delivery documents are required by the
Manufacturer and/or its representative, they will be provided as an
additional billable serviced at the price agreed to and detailed on
Schedule C. Terms of payment to Distributor are net fifteen (15) days, and
Distributor's right to receive payment from manufacturer is not conditioned
upon the timing of payment by the Military to the Manufacturer. Distributor
pricing is structured with the understanding that on-hand
inventory requirements shall not exceed three (3) weeks average movement.
Manufacturer agrees to pay interest at the rate of twelve percent (12%) per
annum on any invoice not paid when due, and agrees to pay all costs of
collection, including twenty-five percent (25%) of the principal balance
claimed as attorney's fees if the account is placed in the hands of an
attorney for collection.
6. If the Distributor receives damaged Product, it shall notify Manufacturer
within ten (10) days of receipt, and Manufacturer shall remove such Product
from Distributor's warehouse(s) at Manufacturer's expense and shall
reimburse Distributor the full cost of its storage and handling fee. If
Product is rejected by the Military for any reason. Manufacturer shall take
possession of such Product and shall reimburse Distributor the full cost of
the Product including Distributor's storage and handling fee. Distributor
shall not be liable for incidental and consequential damages whether
foreseeable or otherwise.
7. Manufacturer may/may not recoup the amount of its invoices for Product
shipped to distributor against the amount of distributor's invoices for
Product delivered to the Military, and Distributor may/may not recoup the
amount of its invoices for Product delivered against the amount of
Manufacture's invoices for Product sipped to Distributor. If recoupment is
permitted, any account receivable remaining after such deduction shall be
paid by the party owing same fifteen (15) days after written demand made by
the other party. The parties acknowledge that this Agreement is intended to
be the sole contract between the parties and that successive sales,
purchases and delivery of Product constitutes a single, continuing
transaction. If either parry declares or is adjudicated bankruptcy or
insolvent, the other party shall have the right of recoupment against the
bankrupt or insolvent party, regardless of whether the claim by either
party arose pre or post-petition or pre or post-adjudication.
8. This Agreement constitutes the entire understanding of the parties and all
prior representations or agreements not contained in this Agreement are of
no effect. This Agreement cannot be altered or varied except by written
document signed by both parties.
9. This Agreement may be canceled by either party upon thirty (30) days
written notice. After notice, Manufacturer shall promptly remove any
remaining Product from
Distributor's warehouse(s) at Manufacturer's expense and shall pay
Distributor its storage and handling fee for such Product. In witness
whereof, the parties have executed this Agreement the day and year first
above written.
CHATTEM, INC MILITARY RESALE GROUP
-------------------------------------------
(Manufacturer's Full Corporate or Firm Name
By: /s/ Xxxxxxx X. Xxxxxxxx By: /s/ Xxxxx X. Xxxxx
-------------------------------------------- --------------------------------
Signature Signature
Xxxxxxx X. Xxxxxxxx Xxxxx X. Xxxxx
-------------------------------------------- --------------------------------
Name - please print Name - please print
Vice President, Sales President
-------------------------------------------- --------------------------------
Title Title
5/2/02 4-15-2002
-------------------------------------------- --------------------------------
Date Date
4
SCHEDULE A
----------
Bases assigned for service:
Xxxxxxxxx AFB
F.E. Xxxxxx
Xxxxxxx A.F.B.
Ft. Xxxxxx
Xxxxxxxx AFB
USAF Academy
SCHEDULE C
----------
Drayage Rate by Military Customer Categories and by Product Type
Product Type:
Dry [*]% Stencil Charges
------- -------
Frozen ------- Pallet Charges -------
Chill ------- By-Pass Fee -------
Other ------- Alaska Freight* -------
*Only applies to Alaska commissaries
BACKHAUL
Backhaul Available
Pick-Up Location Backhaul Rate Contact Person/Phone
--------------------- --------------------- ---------------------
--------------------- --------------------- ---------------------
--------------------- --------------------- ---------------------
Schedule D
In order to properly service your Military accounts and conform to your
requirements, we request, in writing, the following information:
1. Name of Manufacturer and Broker:
Domestic [ ] Import [ ]
Vendor: Broker:
-------------------------------------- ------------------------------------
Sales/Name: Sales/Name:
-------------------------------------- ------------------------------------
Address: Address:
-------------------------------------- ------------------------------------
-------------------------------------- ------------------------------------
Phone: Phone:
-------------------------------------- ------------------------------------
Fax: Fax:
-------------------------------------- ------------------------------------
Email: Email:
-------------------------------------- ------------------------------------
6
2. Mailing Address for Billing:
Military Resale Group, Inc. Contact Name: Xxxx Xxxxxx
---------------------------------- -------------------------------------
0000 Xxxxxxxxx Xxxxxx Phone: 000-000-0000
---------------------------------- -------------------------------------
Xxxx. Xxxxxxx, XX 00000 Fax: 000-000-0000
---------------------------------- -------------------------------------
Email:
-------------------------------------
3. Reports - Month to Date Sales [ ] Inventory Activity [ ]
Send via- Email Diskette [ ]
Send to the following individuals(s)
------------------------------------ -------------------------------------
------------------------------------ -------------------------------------
------------------------------------ -------------------------------------
ATTN: ATTN:
------------------------------------ -------------------------------------
Email: Email:
------------------------------------ -------------------------------------
4. Order Desk (our placement of orders with you)
Vendor Rep [ ] Broker Rep [ ]
Customer Svc Rep: Xxxx Xxxxxx Are you EDI capable? yes
------------------------------------ ---
Phone: 000-000-0000 Ext. 105 Paperless EDI? yes
------------------------------------ ---
Fax: 000-000-0000
-----------------------------------
PIIN:
-----------------------------------
SB#:
-----------------------------------
7
5. Distributor Center Information
Servicing Military Resale Group
Pick-up Address:
--------------------------------
Phone:
--------------------------------
Pick Up Min:
--------------------------------
Delivered Min:
--------------------------------
Brackets Offered:
--------------------------------
Lead Time:
--------------------------------
Special Instructions:
--------------------------------
6. Product Information: Frozen [ ] Dry [X] Chill [ ]
[X] Please attach a current military price list for all applicable locations.
[X] Please attach item specifications to include: weight, cube, pallet pattern,
case dimensions, shelf life (how to read code dates on cases and items).
7. Military Resale Group Commissary Division drayage fee commission:
a. [*]%
b. per case plus earned cash discount of %
8. Vendor cash terms [*] % [*] days, net [*]
[*] % [*] days, net [*]
8
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MILITARY RESALE GROUP
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Chattem Items- DeCA
--------------------------------------------------------------------------------------------------------------------------------
Item/Case UPC RSL Code Item Description Unit Price Distibutor Case Price Case Dimensions (H X W X D)
--------------------------------------------------------------------------------------------------------------------------------
41167-00841 K2 Icy Hot Patch [*] [*] 24 6.75/10.50/18.25
--------------------------------------------------------------------------------------------------------------------------------
41167-00879 K3 Icy Hot Balm-3.5oz [*] [*] 24 3.44/9.88/14.63
--------------------------------------------------------------------------------------------------------------------------------
41167-01100 X0 XX Med. Pwdr 10 oz [*] [*] 24 8.00/13.88/16.00
--------------------------------------------------------------------------------------------------------------------------------
41167-01704 X0 XX Med. Foot Pwdr- 4 oz [*] [*] 24 5.88/10.38/11.75
--------------------------------------------------------------------------------------------------------------------------------
41167-05010 X0 XX Med. Anti-Itch Crm 1 oz [*] [*] 24 1.19/6.13/8.88
--------------------------------------------------------------------------------------------------------------------------------
41167-05703 K1 Aspercreme 3 oz [*] [*] 72 6.50/13.00/19.00
--------------------------------------------------------------------------------------------------------------------------------
41167-06112 X0 XX Med. Body Lotion 14 oz [*] [*] 24 9.13/11.00/14.38
--------------------------------------------------------------------------------------------------------------------------------
41167-16013 K1 Flex-All Reg. Str. Crm 4 oz [*] [*] 12 5.75/5.38/8.63
--------------------------------------------------------------------------------------------------------------------------------
41167-20130 K2 Dexatrim Natural Green Tea 30's [*] [*] 72* 5.25/12.00/19.94
--------------------------------------------------------------------------------------------------------------------------------
41167-20139 K3 Dexatrim Natural Green Tea 90's [*] [*] 12* 5.00/7.25/9.88
--------------------------------------------------------------------------------------------------------------------------------
41167-20430 K1 Dexatrim Natural Ephedrine Free 30's [*] [*] 72* 5.25/12.00/19.94
--------------------------------------------------------------------------------------------------------------------------------
41167-21206 K1 Dexatrim Results Eph. Free 60's [*] [*] 24 4.88/8.38/13.38
--------------------------------------------------------------------------------------------------------------------------------
41167-30012 K1 Pamprin Tablets 20 ct [*] [*] 24 3.38/7.25/9.75
--------------------------------------------------------------------------------------------------------------------------------
41167-52401 K2 Phisoderm Clear Confidence FW w/Pump 6 oz [*] [*] 24 7.00/10.00/10.63
--------------------------------------------------------------------------------------------------------------------------------
41167-53811 K3 Phisoderm Clear Confidence Body Wash 12 oz [*] [*] 12 8.38/7.00/9.75
--------------------------------------------------------------------------------------------------------------------------------
41167-75142 K3 Capzasin- P Creme 1.5 oz [*] [*] 36 6.75/8.69/11.75
--------------------------------------------------------------------------------------------------------------------------------
41167-77731 K1 Herpecin- L Lip Balm Stick [*] [*] 24 3.88/4.81/6.75
--------------------------------------------------------------------------------------------------------------------------------
47046-40000 K2 SunSource Melatonex 30 ct [*] [*] 24 4.00/6.00/11.38
--------------------------------------------------------------------------------------------------------------------------------
47046-43000 K3 SunSource Repose 30 ct [*] [*] 24 8.88/5.88/8.63
--------------------------------------------------------------------------------------------------------------------------------
47046-66000 K2 SunSource Garlique 60 ct [*] [*] 24 8.63/5.88/11.88
--------------------------------------------------------------------------------------------------------------------------------
41167-33032 O2 BullFrog For Kids Sunblock 36 SPF 5 oz [*] [*] 12 7.00/5.75/8.00
--------------------------------------------------------------------------------------------------------------------------------
41167-33052 O2 BullFrog Quik Gel Sunblock SPF 36 5 oz [*] [*] 12 6.30/5.38/7.81
--------------------------------------------------------------------------------------------------------------------------------
41167-33058 O2 BullFrog Quik Gel Sports Spray SPF 35 4.7 oz [*] [*] 12 7.20/5.30/9.75
--------------------------------------------------------------------------------------------------------------------------------
BULLFROG ITEMS AUTHORIZED FOR DECA SUNCARE PROGRAM: MAR. 1 - AUG. 31, 2002. PLEASE KEEP ITEMS
IN STOCK DURING THIS PERIOD.
--------------------------------------------------------------------------------------------------------------------------------
* ATTENTION: DEXATRIM ITEMS SHIP TO DISTRIBUTOR IN MASTER CASES, BUT SHIP TO
COMMISSARIES IN INNER PACKS. ITEM #20130 & #20430 ARE INNER CASE PACKS OF 6.
ITEM #20139 IS INNER CASE PACKS OF 4.
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Military Resale Group
------------------------------------------------------------------------------------------------------------------------------
Chattem Items- DeCA
------------------------------------------------------------------------------------------------------------------------------
Item/Case UPC RSL Code Item Description Case weight Case cube TIE/ Tier # to Order
------------------------------------------------------------------------------------------------------------------------------
41167-00841 K2 Icy Hot Patch 3.25 0.75 9/7 6
------------------------------------------------------------------------------------------------------------------------------
41167-00879 K3 Icy Hot Balm-3.5oz 7.68 0.29 12/11 5
------------------------------------------------------------------------------------------------------------------------------
41167-01100 X0 XX Med. Pwdr 10 oz 19.50 1.03 9/6 7
------------------------------------------------------------------------------------------------------------------------------
41167-01704 X0 XX Med. Foot Pwdr- 4 oz 8.50 0.41 15/7 5
------------------------------------------------------------------------------------------------------------------------------
41167-05010 X0 XX Med. Anti-Itch Crm 1 oz 3.00 0.18 40/7 5
------------------------------------------------------------------------------------------------------------------------------
41167-05703 K1 Aspercreme 3 oz 19.25 0.06 7/7 7
------------------------------------------------------------------------------------------------------------------------------
41167-06112 X0 XX Med. Body Lotion 14 oz 27.00 0.84 10/4 7
------------------------------------------------------------------------------------------------------------------------------
41167-16013 K1 Flex-All Reg. Str. Crm 4 oz 4.22 0.15 39/7 7
------------------------------------------------------------------------------------------------------------------------------
41167-20130 K2 Dexatrim Natural Green Tea 30's 8.00 0.73 8/8 1
------------------------------------------------------------------------------------------------------------------------------
41167-20139 K3 Dexatrim Natural Green Tea 90's 3.50 0.21 25/9 2
------------------------------------------------------------------------------------------------------------------------------
41167-20430 K1 Dexatrim Natural Ephedrine Free 30's 8.00 0.73 8/8 1
------------------------------------------------------------------------------------------------------------------------------
41167-21206 K1 Dexatrim Results Eph. Free 60's 4.81 0.32 14/9 6
------------------------------------------------------------------------------------------------------------------------------
41167-30012 K1 Pamprin Tablets 20 ct 2.00 0.14 25/14 7
------------------------------------------------------------------------------------------------------------------------------
41167-52401 K2 Phisoderm Clear Confidence FW w/Pump 6 oz 13.75 0.43 16/5 5
------------------------------------------------------------------------------------------------------------------------------
41167-53811 K3 Phisoderm Clear Confidence Body Wash 12 oz 11.69 0.33 24/4 7
------------------------------------------------------------------------------------------------------------------------------
41167-75142 K3 Capzasin- P Creme 1.5 oz 7.00 0.4 17/7 3
------------------------------------------------------------------------------------------------------------------------------
41167-77731 K1 Herpecin- L Lip Balm Stick 1.02 0.07 55/12 6
------------------------------------------------------------------------------------------------------------------------------
47046-40000 K2 SunSource Melatonex 30 ct 1.44 0.17 28/11 3
------------------------------------------------------------------------------------------------------------------------------
47046-43000 K3 SunSource Repose 30 ct 2.63 0.26 34/7 3
------------------------------------------------------------------------------------------------------------------------------
47046-66000 K2 SunSource Garlique 60 ct 2.50 0.35 24/5 3
------------------------------------------------------------------------------------------------------------------------------
41167-33032 O2 BullFrog For Kids Sunblock 36 SPF 5 oz 5.31 0.19 45/8 5
------------------------------------------------------------------------------------------------------------------------------
41167-33052 O2 BullFrog Quik Gel Sunblock SPF 36 5 oz 4.50 0.15 44/7 5
------------------------------------------------------------------------------------------------------------------------------
41167-33058 O2 BullFrog Quik Gel Sports Spray SPF 35 4.7 oz 1.06 0.22 35/7 5
------------------------------------------------------------------------------------------------------------------------------
Bullfrog items authorized for DeCA Suncare Program: Mar. 1 - Aug. 31, 2002.
Please keep items in stock during this period.
------------------------------------------------------------------------------------------------------------------------------
* ATTENTION: Dexatrim items ship to distributor in master cases, but ship to
commissaries in inner packs. Item #20130 & #20430 are inner case packs of 6.
Item #20139 is inner case packs of 4.
