Custom Pricing Agreement - J Crew and Federal Express Corp.
Custom Pricing Agreement J CREW 1 Ivy Cresent Lynchburg, VA 24502 Attention: Andrew Boguszewski This Custom Pricing Agreement ("Agreement") is made the 15 day of November, 1996 between Federal Express Corporation ("FedEx") and J CREW ("Company"). 1. In this Agreement, "FedEx" refers to Federal Express Corporation, its employees and agents. "Company" refers to J CREW and any divisions, subsidiaries and affiliates, a majority of whose voting stock (defined as 51%) is directly or indirectly owned by Company. "Program" refers to the Custom Pricing Program. 2. The prices and other terms and conditions provided to Company are for Company's exclusive use and benefit. Such prices and terms (or any portion thereof) may not be extended to any other party without FedEx's consent. Under this Agreement, you will receive discounts as shown on rate sheets provided by FedEx which are incorporated herein by reference. 3. Your participation in the Program will supersede all other Pricing agreement between FedEx and Company. 4. Each shipment made under this Agreement is subject to the terms and conditions of the FedEx Service Guide in effect at the time of shipment, which terms are incorporated into this agreement by reference. FedEx reserves the right to modify the FedEx Service Guide at anytime without notice. In the event such a modification results in a rate increase, you will receive thirty (30) days prior written notice. 5. Discounts are based upon Company's committed activity level during the period of the Program. In order to remain eligible for continued participation in the Program, Company commits to and shall maintain the Shipping Objectives provided on Attachment A within 90 days of the effective date of this Agreement. Company's deviation from the Shipping Objectives listed on Attachment A may result in a rate change. In such event, FedEx may provide Company with rates which more accurately reflect its actual shipping patterns. FedEx will provide thirty (30) days written notice of any such rate change. Audits of Company's activity level may be performed at FedEx's discretion. As long as Shipping Objectives are met, the Program will be effective for 12 months, unless earlier terminated as provided herein. 1 <PAGE> 6. All locations and account numbers to be included in the Program shall be designated by Company and FedEx's National Account Master report will verify ALL locations and account numbers. To add a location to the Program, Company shall notify FedEx's Sales Executive in writing at least seven (7) working days in advance. Only the billed account number will receive the applicable discounts and revenue credit. 7. Payment on all accounts is due fifteen (15) days from the invoice date. Company agrees that remaining current on all payables is a condition to the extension of credit and discounts under this Agreement. When you use a freight payment firm, the same payment terms apply. 8. Either party may terminate this Agreement for the other party's noncompliance with the terms of this Agreement. Notwithstanding, FedEx and Company agree that either party may terminate this Agreement at anytime upon thirty (30) days written notice to the other. 9. Company agrees to use automated shipping devices provided by FedEx at each U.S. location shipping three (3) or more packages per day OR, one (1) FedEx International Priority package per day. A Federal Express POWERSHIP Placement Agreement for the placement of any such shipping device shall be signed prior to placement. 10.The terms of this Agreement shall be held in strict confidence and the contents of this Agreement may not be disclosed to anyone other than those Company employees who have a need to know, provided, however, that nothing herein shall restrict you from disclosing any portion of such information on a restricted basis pursuant to a judicial or other lawful governmental order, but only to the extent of such order and only after you provide us with immediate notice of such order so that we may contest the order or obtain a protective order, if we deem necessary. 11.For all shipments made under the Program, Company waives any right to receive adjustments, refunds or credits under the Money Back Guarantee Policy as defined in the FedEx Service Guide in effect at the time of shipment. 12.Company agrees to ship all packages with Signature Release Authorization. 13.The Services provided by FedEx in accordance with this Agreement are designed to meet the distinct needs of Company. Return of this Agreement with Company's signature will constitute Company's endorsement of FedEx as its primary carrier. J CREW FEDERAL EXPRESS CORPORATION By: ________________________ By: __________________________ Title: _____________________ Title: _______________________ Date: ______________________ Date: ________________________ 2 <PAGE> This offer will expire if not accepted by Company within thirty (30) days of the date of this offer. This Agreement shall become effective when executed by FedEx and Company. 3 <PAGE> ATTACHMENT A The term "Average Daily Net Revenue" and "Average Revenue Per Package" shall be collectively referred to as the "Shipping Objectives". Pursuant to the terms of the Agreement between Company and FedEx, Company agrees to maintain the Shipping Objectives which are defined and listed below. 1) "Average Daily Net Revenue" refers to the total revenue since the effective date of the Agreement ("Effective Date") divided by the total number of business days since the Effective Date [FedEx has twenty-two (22) business days per month]. 2) "Average Revenue Per Package" ("Yield") refers to Average Daily Net Revenue divided by the average number of packages shipped per business days since the Effective Date. 1) $15,000___ Average Daily Net Revenue 2) $11.11____ Average Revenue Per Package 4 <PAGE> AMENDMENT TO CUSTOM PRICING PROGRAM This Amendment ("Amendment"), effective the 16th day of December, 1996 is entered into by J CREW ("Company") and Federal Express Corporation ("Federal") (the "Parties") and modifies the Custom Pricing Agreement ("Agreement") between the Parties dated November 15, 1996. RECITALS FOR AND IN CONSIDERATION of the mutual covenants contained in the Amendment, the Parties agree as follows: 1. The term of the Agreement shall be extended to expire on January 31, 1999. 2. A 5% rate increase will be implemented on January 1, 1998. 3. Saturday Delivery Charge shall be $5.00. 4. DIM factor shall be 250. 5. Notwithstanding any other provision of this Amendment, this Program may be terminated at any time by either party on thirty (30) days' written notice to the other. 6. Except as otherwise provided in this Amendment, all terms and conditions of the Agreement shall remain in full force and effect, and are hereby ratified and confirmed. 7. The services provided by Federal pursuant to this Amendment are designed to meet the distinct needs of J CREW. J CREW FEDERAL EXPRESS CORPORATION BY: ______________________ BY: __________________________ TITLE: ___________________ TITLE: _______________________ DATE: ____________________ DATE: ________________________ ("Company") ("Federal") 5 <PAGE> FEDERAL EXPRESS CORPORATION U.S. DOMESTIC RATES PER-PACKAGE RATES EFFECTIVE 11/18/96 (excluding Puerto Rico) 17-1675-4 J. CREW GROUP INC 1 IVY CRESCENT LYNCHBURG VA 24502 INDEX LETTER RATES FEDEX PAK RATES Priority Overnight $ 6.00 1 LB $ 7.00 Standard Overnight $ 5.50 2 LB $ 7.50 PRIORITY STANDARD ECONOMY PRIORITY STANDARD ECONOMY LBS. OVER- OVER- TWO-DAYS LBS. OVER- OVER- TWO-DAY NIGHT NIGHT NIGHT NIGHT 1 $ 7.00 $ 6.75 $ 5.00 39 $ 44.27 $ 40.65 $ 38.00 2 7.50 7.25 5.00 40 45.10 41.55 38.00 3 9.50 9.25 5.25 41 45.92 42.45 39.60 4 11.50 10.50 5.75 42 46.75 43.35 40.40 5 13.50 12.00 6.50 43 47.57 44.25 41.20 6 14.85 13.05 7.50 44 48.40 45.15 42.00 7 15.95 14.10 8.60 45 49.22 46.05 42.80 8 17.05 15.15 9.60 46 50.05 46.95 43.60 9 18.15 16.20 10.60 47 50.87 47.85 44.40 10 19.25 17.25 11.60 48 51.70 48.75 45.20 11 19.94 18.00 12.40 49 52.52 49.65 46.00 12 20.62 18.75 13.40 50 53.35 50.55 46.80 13 21.31 19.35 14.40 51 54.17 51.45 47.60 14 22.00 19.95 15.40 52 55.00 52.35 48.40 15 22.69 20.55 16.20 53 55.82 53.25 49.20 16 23.37 21.15 17.20 54 56.65 54.15 50.00 17 24.06 21.75 18.20 55 57.47 55.05 50.60 18 24.75 22.35 19.00 56 58.30 55.95 51.20 19 25.44 22.95 20.00 57 59.12 56.85 51.80 20 26.12 23.55 21.00 58 60.22 57.75 52.40 21 27.22 24.45 21.80 59 61.32 58.65 53.00 22 28.32 25.35 22.80 60 62.42 59.55 53.60 23 29.42 26.25 23.80 61 63.52 60.45 54.20 24 30.52 27.15 24.60 62 64.62 61.35 54.80 25 31.62 28.05 25.40 63 65.72 62.25 55.40 26 32.72 28.95 26.20 64 66.82 63.15 56.00 27 33.82 29.85 27.00 65 67.92 64.05 56.60 28 34.92 30.75 27.80 66 69.02 64.95 57.20 29 36.02 31.65 28.60 67 70.12 65.85 57.80 30 36.85 32.55 29.60 68 71.22 66.75 58.40 31 37.67 33.45 30.60 69 72.32 67.65 59.00 6 <PAGE> PRIORITY STANDARD ECONOMY PRIORITY STANDARD ECONOMY LBS. OVER- OVER- TWO-DAYS LBS. OVER- OVER- TWO-DAY NIGHT NIGHT NIGHT NIGHT 32 38.50 34.35 31.60 70 73.42 68.55 59.60 33 39.32 35.25 32.60 71 74.52 69.45 60.20 34 40.15 36.15 33.60 72 75.62 70.35 61.00 35 40.97 37.05 34.60 73 76.72 71.25 61.80 36 41.80 37.95 35.60 74 77.82 72.15 62.60 37 42.62 38.85 36.40 75 78.92 73.05 63.40 38 43.45 39.75 37.20 76 80.02 73.95 64.20 7 <PAGE> FEDERAL EXPRESS CORPORATION U.S. DOMESTIC RATES PER-PACKAGE RATES EFFECTIVE 11/18/96 (excluding Puerto Rico) 17-1675-4 CREW GROUP INC PRIORITY STANDARD ECONOMY PRIORITY STANDARD ECONOMY LBS. OVERNIGHT OVERNIGHT TWO-DAYS LBS. OVERNIGHT OVERNIGHT TWO-DAY 77 $ 81.12 $ 74.85 $ 65.00 114 $108.30 $102.60 $ 96.28 78 82.22 75.75 65.80 115 109.25 103.50 97.20 79 83.32 76.65 66.60 116 110.20 104.40 98.12 80 84.42 77.55 67.40 117 111.15 105.30 99.04 81 85.52 78.45 68.20 118 112.10 106.20 99.96 82 86.62 79.35 69.00 119 113.05 107.10 100.88 83 87.72 80.25 69.80 120 114.00 108.00 101.80 84 88.82 81.15 70.60 121 114.95 108.90 102.72 85 89.92 82.05 71.40 122 115.90 109.80 103.64 86 91.02 82.95 72.20 123 116.85 110.70 104.56 87 92.12 83.85 73.00 124 117.80 111.60 105.48 88 93.22 84.75 73.80 125 118.75 112.50 106.40 89 94.32 85.65 74.60 126 119.70 113.40 107.32 90 95.00 86.55 75.40 127 120.65 114.30 108.24 91 95.00 87.45 76.20 128 121.60 115.20 109.16 92 95.00 88.35 77.00 129 122.55 116.10 110.08 93 95.00 89.25 77.80 130 123.50 117.00 111.00 94 95.00 90.00 78.60 131 124.45 117.90 111.92 95 95.00 90.00 79.40 132 125.40 118.80 112.84 96 95.00 90.00 80.2 133 126.35 119.70 113.76 97 95.00 90.00 81.00 134 127.30 120.60 114.68 98 95.00 90.00 81.80 135 128.25 121.50 115.60 99 95.00 90.00 82.60 136 129.20 122.40 116.52 100 95.00 90.00 83.40 137 130.15 123.30 117.44 101 95.95 90.90 84.32 138 131.10 124.20 118.36 102 96.90 91.80 85.24 139 132.05 125.10 119.28 103 97.85 92.70 86.16 140 133.00 126.00 120.20 104 98.80 93.60 87.08 141 133.95 126.90 121.12 105 99.75 94.50 88.00 142 134.90 127.80 122.04 106 100.70 95.40 88.92 143 135.85 128.70 122.96 107 101.65 96.30 89.84 144 136.80 129.60 123.88 108 102.60 97.20 90.76 145 137.75 130.50 124.80 109 103.55 98.10 91.68 146 138.70 131.40 125.72 110 104.50 99.00 92.60 147 139.65 132.30 126.64 111 105.45 99.90 93.52 148 140.60 133.20 127.56 112 106.40 100.80 94.44 149 141.55 134.10 128.48 113 107.35 101.70 95.36 150 142.50 135.00 129.40 8 <PAGE> `FEDERAL EXPRESS CORPORATION U.S. DOMESTIC RATES PER-PACKAGE RATES EFFECTIVE 11/18/96 (excluding Puerto Rico) 1817-1675-4 J CREW GROUP INC SPECIAL HANDLING FEES ADDITIONAL PER-PACKAGE CHARGE* COLLECT ON DELIVERY (C.O.D.)........... $ 5.00 PER PACKAGE SATURDAY PICK-UP SERVICE............... $10.00 SATURDAY DELIVERY SERVICE.............. $10.00 DECLARED VALUE - FOR SHIPMENTS EXCEEDING $100.00 IN VALUE+ ($50,000 MAXIMUM PER PACKAGE)............................. $ .50 PER $100.00 $2.50 MINIMUM CHARGE UP TO $500 DANGEROUS GOODS SERVICE................ $10.00 ACCESSIBLE DANGEROUS GOODS SERVICE..... $35.00 INTL. DANGEROUS GOODS.................. $40.00 ADDRESS CORRECTION..................... $10.00 PAYOR REBILL........................... $10.00 NON-ACCOUNT............................ $10.00 INVALID ACCOUNT........................ $10.00 FEDEX INTL. MAIL SERVICE............... $ .25 PER ITEM THE GREATER OF PER SHPMNT/PER LB APPLIES ALASKA HAWAII ALASKA HAWAII (PER SHIPMENT) (PER LB.) (PER LB.) METRO RURAL METRO RURAL PRIORITY OVERNIGHT/ STANDARD OVERNIGHT SERVICE- FEDEX LETTER ............... 5.00 5.00 PRIORITY OVERNIGHT SERVICE FEDEX PAK (1 AND 2 LBS.) ... 5.00 5.00 FEDEX PAK (3 + LBS.), FEDEX BOX AND FEDEX TUBE ... 10.00 10.00 .50 .75 .50 .75 PRIORITY OVERNIGHT SERVICE . 10.00 10.00 .50 .75 .50 .75 ECONOMY TWO-DAY SERVICE .... 10.00 10.00 .50 .75 .50 .75 * WHEN HUNDREDWEIGHT RATES APPLY, THE SPECIAL HANDLING FEES ABOVE WILL BE ASSESSED ONE TIME PER SHIPMENT. + MAXIMUM DECLARED VALUE FOR ANY FEDEX LETTER OR FEDEX PAK IN A SHIPMENT IS $500.00 9 <PAGE> FEDERAL EXPRESS CORPORATION U.S. DOMESTIC RATES PER-PACKAGE RATES EFFECTIVE 11/18/96 (excluding Puerto Rico) 17-1675-4 J. CREW GROUP INC FREIGHT SPECIAL HANDLING FEES RESIDENTIAL PICKUP SERVICE..... $ 33.50 PER SHIPMENT RESIDENTIAL DELIVERY SERVICE... $ 33.50 PER SHIPMENT H3 PICKUP SERVICE.............. $ 50.00 PER SHIPMENT H3 DELIVERY SERVICE............ $ 50.00 PER SHIPMENT EXTRA LABOR CHARGE SERVICE..... $ 49.00 PER HOUR (OR ANY FRACTION THEREOF/1 HR MIN) THE GREATER OF THESE APPLIES (MINIMUM ) (PER LB) INSIDER PICKUP SERVICE.......... 52.00 .0412 INSIDE DELIVERY SERVICE......... 52.00 .0412 DELIVERY REATTEMPT CHARGE....... 25.00 .0333 10 <PAGE> FEDERAL EXPRESS CORPORATION U.S. DOMESTIC RATES PER-PACKAGE RATES EFFECTIVE 11/18/96 (excluding Puerto Rico) 1817-1675-4 J. CREW GROUP INC DISCOUNTS ** REVENUE BAND ---> 14954 ---DOLLAR--- --PERCENT-- RATE SCALE P/A DISC REBATE DISC REBATE FEDEX LTR 1 A 9.50 FEDEX Pak 307 A 11.50 Prty Ovnt 307 A 11.50 45.00 Stnd Ovnt 380 A 8.00 40.00 SOS LTR 1 A 8.00 Economy 434 A 2.00 Ovnt Frgt 184 A 11.50 45.00 2Day Frgt 285 A 2.00 REVENUE BAND ---> 14954 -HW/FREIGHT- ADDITIONAL RATE SCALE P/A DISC REBATE DISC REB MIN FEDEX LTR 1 A FEDEX Pak 307 A 7.00 Prty Ovnt 307 A 50.00 7.00 Stnd Ovnt 380 A 6.00 SOS LTR 1 A Economy 434 A 20.00 5.00 Ovnt Frgt 184 A 2Day Frgt 285 A 11/18/96 14:47:04 0000072778 MARIA RIVERA YOU ARE RESPONSIBLE FOR VERIFYING THAT THIS RATE SHEET IS RATIONAL AND THAT THE RATES ARE BILLABLE BEFORE GIVING TO A CUSTOMER. 11 <PAGE> FEDERAL EXPRESS CORPORATION U.S. DOMESTIC RATES PER-PACKAGE RATES EFFECTIVE 12/03/96 (excluding Puerto Rico) 1808-7918-8 J. CREW/C & W STORES 1 CLIFFORD WAY ASHEVILLE NC 28810 FEDEX LETTER RATES FEDEX PAK RATES Priority Overnight $ 8.00 1 LB $10.75 Standard Overnight $ 7.75 2 LB $12.50 PRIORITY STANDARD ECONOMY PRIORITY STANDARD ECONOMY LBS. OVERNIGHT OVERNIGHT TWO-DAY LBS. OVERNIGHT OVERNIGHT TWO-DAY 1 $10.75 $10.50 $5.95 39 $47.85 $47.60 $29.40 2 12.50 11.60 6.00 40 52.75 49.00 30.00 3 14.00 12.50 6.25 41 53.50 49.90 30.60 4 15.20 13.40 7.00 42 54.25 50.80 31.20 5 16.60 14.45 8.00 43 55.00 51.70 31.80 6 18.20 15.65 9.00 44 55.80 52.60 32.40 7 19.80 16.85 10.00 45 56.55 53.50 33.00 8 21.20 17.90 11.00 46 57.30 54.40 33.60 9 22.80 19.10 12.00 47 58.05 55.30 34.35 10 24.20 20.15 12.75 48 58.85 56.20 35.10 11 24.70 20.90 12.95 49 59.60 56.90 35.85 12 25.70 21.65 13.00 50 60.35 57.60 36.60 13 26.65 22.40 13.10 51 61.30 58.50 37.35 14 27.45 23.00 13.15 52 62.20 59.40 37.95 15 28.20 23.60 13.20 53 63.10 60.30 38.55 16 29.00 25.80 14.10 54 64.00 61.20 39.15 17 29.80 28.30 14.85 55 64.95 62.10 39.60 18 30.60 29.00 15.45 56 65.85 63.00 40.05 19 31.35 29.70 16.35 57 66.75 63.90 40.50 20 32.15 30.40 17.10 58 67.70 64.80 40.95 21 32.95 31.10 17.70 59 68.60 65.70 41.40 22 33.70 31.80 18.30 60 69.50 66.80 41.85 23 34.50 32.50 18.90 61 70.70 67.90 42.30 24 35.30 33.20 19.50 62 71.90 69.00 42.75 25 36.25 34.10 20.10 63 73.10 70.10 43.20 26 37.25 34.95 20.70 64 74.30 71.20 43.65 27 38.20 35.85 21.30 65 75.50 72.30 44.10 28 39.20 36.70 21.90 66 76.70 73.40 44.55 29 40.20 37.60 22.50 67 77.90 74.50 45.00 30 41.30 38.45 23.10 68 79.10 75.60 45.45 31 42.05 39.50 23.85 69 80.30 76.70 45.90 12 <PAGE> 32 42.75 40.35 24.60 70 81.50 78.00 46.35 33 43.50 41.25 25.35 71 82.70 80.50 46.80 34 44.20 43.30 26.10 72 83.90 81.65 47.70 35 44.95 44.20 26.85 73 85.10 82.80 48.30 36 45.65 45.10 27.45 74 86.30 83.95 49.75 37 46.40 46.00 28.20 75 87.50 85.10 49.20 38 47.10 46.85 28.80 76 88.70 86.25 49.80 13 <PAGE> FEDERAL EXPRESS CORPORATION U.S. DOMESTIC RATES PER-PACKAGE RATES EFFECTIVE 12/03/96 (excluding Puerto Rico) 1808-7918-8 J. CREW/C & W STORES PRIORITY STANDARD ECONOMY PRIORITY STANDARD ECONOMY LBS. OVERNIGHT OVERNIGHT TWO-DAY LBS. OVERNIGHT OVERNIGHT TWO-DAY 77 $89.90 $87.40 $50.40 114 $133.38 $126.54 $74.10 78 91.10 88.55 51.00 115 134.55 127.65 74.75 79 92.30 89.70 51.60 116 135.72 128.76 75.40 80 93.50 90.95 52.20 117 136.89 129.87 76.05 81 94.70 91.85 52.80 118 138.06 130.98 76.70 82 95.90 93.30 53.40 119 139.23 132.09 77.35 83 97.10 94.45 54.15 120 140.40 133.20 78.00 84 98.30 95.50 54.75 121 141.57 134.31 78.65 85 99.50 96.80 55.35 122 142.74 135.42 79.30 86 100.70 97.90 55.95 123 143.91 136.53 79.95 87 101.90 99.15 56.55 124 145.08 137.64 80.60 88 103.10 100.10 57.15 125 146.25 138.75 81.25 89 104.30 101.55 57.75 126 147.42 139.86 81.90 90 105.50 102.25 58.35 127 148.59 140.97 82.55 91 106.70 103.75 58.95 128 149.76 142.08 83.20 92 107.90 104.45 59.55 129 150.93 143.19 83.85 93 109.10 105.90 60.15 130 152.10 144.30 84.50 94 110.30 106.45 60.75 131 153.27 145.41 85.15 95 111.50 107.20 61.35 132 154.44 146.52 85.80 96 112.70 107.95 61.95 133 155.61 147.63 86.45 97 113.90 108.65 62.55 134 156.78 148.74 87.10 98 115.10 109.40 63.30 135 157.95 149.85 87.75 99 116.30 110.10 63.90 136 159.12 150.96 88.40 100 117.00 111.00 65.00 137 160.29 152.07 89.05 101 118.17 112.11 65.65 138 161.46 153.18 89.70 102 119.34 113.22 66.30 139 162.63 154.29 90.35 103 120.51 114.33 66.95 140 163.80 155.40 91.00 104 121.68 115.44 67.60 141 164.97 156.51 91.65 105 122.85 116.55 68.25 142 166.14 157.62 92.30 106 124.02 117.66 68.90 143 167.31 158.73 92.95 107 125.19 118.77 69.55 144 168.48 159.84 93.60 108 126.36 119.88 70.20 145 169.65 160.95 94.25 109 127.53 120.99 70.85 146 170.82 162.06 94.90 110 128.70 122.10 71.50 147 171.99 163.17 95.55 111 129.87 123.21 72.15 148 173.16 164.28 96.20 112 131.04 124.32 72.80 149 174.33 165.39 96.85 113 132.21 125.43 73.45 150 175.50 166.50 97.50 14 <PAGE> -------------------HUNDREDWEIGHT/FREIGHT PER POUND RATES*---------------- PRIORITY STANDARD ECONOMY OVERNIGHT TWO-DAY OVERNIGHT OVERNIGHT TWO-DAY FREIGHT FREIGHT 100 - 150 LBS $1.17 $1.11 $.65 $1.17 $ .65 151 - 299 LBS 1.17 1.11 .65 1.35 1.10 300 - 499 LBS 1.17 1.11 .65 1.35 1.10 500 - 999 LBS 1.13 1.07 .64 1.35 1.10 - 1000+ LBS 1.10 1.03 .63 1.35 1.10 * SUBJECT TO 5LB MIN WHEN CUT PRICING APPLIES 15 <PAGE> FEDERAL EXPRESS CORPORATION U.S. DOMESTIC RATES PER-PACKAGE RATES EFFECTIVE 12/03/96 (excluding Puerto Rico) 1808-7918-8 J. CREW/C & W STORES SPECIAL HANDLING FEES ADDITIONAL PER-PACKAGE CHARGE* COLLECT ON DELIVERY (C.O.D.)........... $ 5.00 PER PACKAGE SATURDAY PICK-UP SERVICE............... $10.00 SATURDAY DELIVERY SERVICE.............. $10.00 DECLARED VALUE - FOR SHIPMENTS EXCEEDING $100,00 IN VALUE+ ($50,000 MAXIMUM PER PACKAGE)............................. $ .50 PER $100.00 ($2.50 MINIMUM CHARGE UP TO $500 DANGEROUS GOODS SERVICE................ $10.00 ACCESSIBLE DANGEROUS GOODS SERVICE..... $35.00 INTL. DANGEROUS GOODS.................. $40.00 ADDRESS CORRECTION..................... $10.00 PAYOR REBILL........................... $10.00 NON-ACCOUNT............................ $10.00 INVALID ACCOUNT........................ $10.00 FEDEX INTL. MAIL SERVICE............... $ .25 PER ITEM THE GREATER OF PER SHPMNT/PER LB APPLIES ALASKA HAWAII ALASKA HAWAII (PER SHIPMENT) (PER LB.) (PER LB.) METRO RURAL METRO RURAL PRIORITY OVERNIGHT/ STANDARD OVERNIGHT SERVICE- FEDEX LETTER............... 5.00 5.00 PRIORITY OVERNIGHT SERVICE FEDEX PAK (1 AND 2 LBS.)... 5.00 5.00 FEDEX PAK (3 + LBS.), FEDEX BOX AND FEDEX TUBE... 10.00 10.00 .50 .75 .50 .75 PRIORITY OVERNIGHT SERVICE. 10.00 10.00 .50 .75 .50 .75 ECONOMY TWO-DAY SERVICE.... 10.00 10.00 .50 .75 .50 .75 * WHEN HUNDREDWEIGHT RATES APPLY, THE SPECIAL HANDLING FEES ABOVE WILL BE ASSESSED ONE TIME PER SHIPMENT. * MAXIMUM DECLARED VALUE FOR ANY FEDEX LETTER OR FEDEX PAK IN A SHIPMENT IS $500.00 16 <PAGE> FEDERAL EXPRESS CORPORATION U.S. DOMESTIC RATES PER-PACKAGE RATES EFFECTIVE 12/03/96 (excluding Puerto Rico) 108-7918-8 CREW/C & W STORES FREIGHT SPECIAL HANDLING FEES RESIDENTIAL PICKUP SERVICE..... $ 33.50 PER SHIPMENT RESIDENTIAL DELIVERY SERVICE... $ 33.50 PER SHIPMENT H3 PICKUP SERVICE.............. $ 50.00 PER SHIPMENT H3 DELIVERY SERVICE............ $ 50.00 PER SHIPMENT EXTRA LABOR CHARGE SERVICE..... $ 49.00 PER HOUR (OR ANY FRACTION THEREOF/1 HR MIN) THE GREATER OF THESE APPLIES (MINIMUM ) (PER LB) INSIDE PICKUP SERVICE........... 52.00 .0412 INSIDE DELIVERY SERVICE......... 52.00 .0412 DELIVERY REATTEMPT CHARGE....... 25.00 .0333 17