Services Agreement - World Color and Clifford & Wills
WORLD COLOR Letterhead Thomas L. Groenings, Sr. Vice President Catalog Division July 29, 1996 Ms. Trudy Sullivan President CLIFFORD & WILLS 11 East 19th Street Sixth Floor New York, NY 10011 Dear Ms. Sullivan: In order to secure a contract extension of three years beyond the current contract expiration of May 1997, World Color offers the following: 1. World Color will grant a 7% price reduction beginning with June 1996 production. The enclosed price schedule reflects this same reduction on the new trim size beginning Spring 1997. Those invoices from June until the end of 1996 will show the 7% reduction in manufacturing as a separate line item. 2. World Color will waive the 1997 labor increase. The enclosed price schedule remains in effect until January 1, 1998. All other terms and conditions of the original contract dated March 1991, will remain unchanged. Best Regards, /s/ Thomas L. Groenings cc: Sam Kaplan Approved: Acknowledged and Accepted: /s/ /s/ ------------------------- ---------------------------- Thomas L. Groenings Trudy Sullivan Vice President, Eastern President Catalog Sales <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page One Revised June 26, 1996 EXHIBIT "A" SCHEDULE OF PRICES ------------------ 7-5/8 X 10" Trim Size - Rotogravure ----------------------------------- Cylinder and 1 Proofing 8- page form .......................... $9,315.59 12- page form .......................... 9,603.56 16- page form .......................... 9,891.55 20- page form .......................... 10,178.59 24- page form .......................... 10,466.58 28- page form .......................... 10,753.62 32- page form .......................... 11,040.66 36- page form .......................... 14,444.54 40- page form .......................... 11,615.68 48- page form .......................... 12,189.76 56- page form .......................... 12,764.79 60- page form .......................... 16,240.43 64- page form .......................... 13,339.82 72- page form .......................... 17,137.44 Additional for a second proofing, per form .................................. 2,894.95 Additional for double cutting key cylinders, per form .................................. 1,699.58 Production Makeready 8- page form .......................... $2,368.08 12- page form .......................... 2,368.08 16- page form .......................... 2,368.08 20- page form .......................... 2,202.84 24- page form .......................... 2,202.84 28- page form .......................... 2,202.84 32- page form .......................... 2,202.84 36- page form .......................... 3,476.58 40- page form .......................... 2,202.84 48- page form .......................... 2,202.84 56- page form .......................... 2,202.84 60- page form .......................... 3,476.58 64- page form .......................... 2,202.84 72- page form .......................... 3,476.58 Roll change from one grade of paper to another (same roll size), per form .................................... 117.27 <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Two Revised June 26, 1996 EXHIBIT "A" SCHEDULE OF PRICES ------------------ 7-5/8" x 10" Trim Size - Rotogravure 32" or 33" 48" ------------------------------------ ---------- --- Changeovers, per cylinder Cylinders and 1 proofing....... $1,111.26 $1,506.95 Production press makeready............ 212.91 336.39 Furnished positives, per page, per color............................. 17.99 17.99 Premium for runs under 1,000,000 impressions, per form....... 1,696.53 1,696.53 Press Running - Per Thousand Copies ----------------------------------- 8- page form ....................................... $5.48 12- page form ....................................... 4.77 16- page form ....................................... 6.11 20- page form ....................................... 8.34 24- page form ....................................... 8.37 28- page form ....................................... 8.40 32- page form ....................................... 10.31 36- page form ....................................... 13.09 40- page form ....................................... 15.75 48- page form ....................................... 15.80 56- page form ....................................... 15.87 60- page form ....................................... 25.60 64- page form ....................................... 20.63 72- page form ....................................... 25.72 Slitting up to 1-7/8" of excess width from furnished roll stock...................... 2.24 Ink (4-color page) Per thousand copies..................................... 0.411 Ink is firm based on the coverage in the "Clifford & Wills" 1991 Catalogs and current market prices. <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Three Revised June 26, 1996 EXHIBIT "A" SCHEDULE OF PRICES ------------------ 7-5/8" x 10" Trim Size - Web Offset ----------------------------------- Printing Plates 4-page form........................ $575.97 6-page gatefold form............... 575.97 8-page form........................ 1,151.94 16-page form....................... 1,336.06 Production Press Makeready 4-page form........................ 1,681.64 6-page gatefold form............... 1,681.64 8-page form........................ 2,518.21 16-page form....................... 2,362.41 Changeovers 1 color change per side of web (1 plate).............. 175.62 4 color change, per side of web (4 plates)............. 702.49 Roll change from one grade of paper to another (same roll size), per form........................... 109.54 <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Four Revised June 26, 1996 EXHIBIT "A" SCHEDULE OF PRICES ------------------ 7-5/8" x 10" Trim Size - Web Offset ----------------------------------- Press running - Per Thousand copies 4-page form........................ $4.79 6-page gatefold form............... 11.16 8-page form........................ 4.99 16-page form....................... 8.43 Pre-trim folded signatures at the head to 0-14" head-to-foot 4- page................... 0.86 6- page................... 1.29 8- page................... 1.29 16- page................... 1.72 <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Five Revised June 26, 1996 EXHIBIT "A" SCHEDULE OF PRICES ------------------ 7-5/8" x 10" Trim Size - Offset Prices -------------------------------------- U.V. Coat Cover (4-Page Press Form Only) Per thousand copies................. $7.73 Ink (4-color page) Per thousand copies................. 0.378 Special 5th Color On Cover Plate, makeready and wash-up........ 733.66 Plate and makeready for overall press varnish (metallic gold only).. 172.79 Ink, per page, per color, per thousand copies (based on 5-3/4" x 3/4" of coverage........... 0.352 Varnish ink, per page, per thousand copies (100% coverage) Full page....................... 0.250 Gatefold........................ 0.120 Varnish ink, per page, per thousand copies (spot.coverage)..... 0.091 Ink is firm based on the coverage in the "Clifford & Wills" 1991 Catalogs and current market prices. <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Five-A Revised June 26, 1996 EXHIBIT "A" SCHEDULE OF PRICES ------------------ 7-5/8" x 10" Trim Size - Rotogravure or Web Offset -------------------------------------------------- Paper Storage, per cwt. 1st month (includes in/out) ........ $0.238 Each additional month .............. 0.119 Per the contract, Clifford & Wills may inventory without charge up to two (2) months' consumption required to produce catalogs or two (2) million pounds, which- ever is less. Should this non-chargeable contract allowance be exceeded, paper storage will be invoiced as required. <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Six Revised June 26, 1996 EXHIBIT "A" SCHEDULE OF PRICES ------------------ 7-5/8" x 10" Trim Size - Bind and Distribution ---------------------------------------------- Saddle Stitch Binding, loose our floor, per thousand copies: Basic, No Units $11.52 4- page (cover or body).......................... 1.50 6- page (gatefold) ............................ 1.79 8- page ....................................... 1.65 12- page ....................................... 1.68 16- page ....................................... 1.79 20- page ....................................... 1.93 24- page ....................................... 2.06 28- page ....................................... 2.18 32- page ....................................... 2.28 36- page ....................................... 2.41 40- page ....................................... 2.55 48- page ....................................... 3.67 56- page ....................................... 3.92 64- page ....................................... 4.40 72- page ....................................... 4.67 Furnished 4-page order form ...................... 1.66 Card insert ....................................... 1.66 Furnished 12-page catalog, approximate size 6-1/8" low folio x 5-3/4" high folio x 7-1/8" head-to-foot on Basis 25 x 38 - 45# Machine Coated including 1/8" foot trim and 3/8" low folio binding lap.................. 1.95 Furnished 12-page catalog, approximate size 6" x 7-18" head-to-foot, folded corner-to- corner with closed foot for suction feeding on the binder, on Basis 25 x 38 - 50# Machine Coated including 1/8" foot trim.............. 2.73 Reverse cam set-up, per box, per machine............. 100.37 Inserts are to be furnished f.o.b. our designated plant, ready for 1-up binding per our specifications, including a 3.0% binding waste allowance. <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Seven Revised June 26, 1996 EXHIBIT "A" SCHEDULE OF PRICES ------------------ 7-5/8" x 10" Trim Size - Bind and Distribution ---------------------------------------------- Ink jet mail using magnetic tapes furnished to our specifications, per thousand....................... $7.33 Ink for messages, per message, per thousand.............................................. 0.75 Binder/mailer changes First unit changed.................................. 56.37 Each unit changed at same time...................... 38.33 Binder/mailer run cost for postnet barcoding, per thousand copies................................. 1.42 Selective Binding - maximum 16 boxes Makeready 1-3 variable boxes............................. 399.40 4 or more variable boxes, per box.............. 39.79 Per thousand copies 1-2 variable boxes............................. 2.99 3-6 variable boxes............................. 4.89 7 or more variable boxes....................... 6.23 All furnished inserts for selective binding must be the same size or smaller than body units and must be approved by our manufacturing department. Pack in convenient size cartons not to exceed 40# each, per carton............................... 1.33 Pack in convenient size bundles not to exceed 40# each, plastic tie 2 ways, per bundle.................. 0.54 Packing on disposable pallets, per pallet................. 25.35 Preparation for any special packing of pallets, bundles or cartons, addressing of labels, preparing for various shipments or other miscellaneous traffic services will be invoiced additional. <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Eight Revised June 26, 1996 EXHIBIT "A" SCHEDULE OF PRICES ------------------ 7-5/8" x 10" Trim Size - Bind and Distribution ---------------------------------------------- Cheshire Mail Off-Line (7 digit carrier route or 5 digit presort) using paper labels furnished to our specifications, Makeready, per machine.............................. $264.38 Running, per thousand copies........................ 16.49 Cheshire labels and bag tags are to be furnished in accordance with our specifications and postal regulations regarding code separations. Polybag paper labeled copies using 1.5 mil clear film, subject to availability of equipment. Makeready, per machine.............................. 168.07 Running, per thousand copies........................ 20.26 Poly film is subject to adjustment based on actual usage and invoice cost plus ten (10%) percent handling charge. Additional for a furnished insert with polybag (maximum 3), per thousand copies.................. 2.36 Dot whacking using labels furnished to our specifications, Makeready, per machine.............................. 144.46 per thousand........................................ 3.87 Labels are to be furnished in rolls from a minimum of 1" x 1" square or 1" diameter round to a maximum of 2-1/2" x 2-1/2" square or 2-12" diameter round. Traffic services, per hour................................ 37.40 <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Nine Revised June 26, 1996 EXHIBIT "A" SCHEDULE OF PRICES ------------------ 7-5/8" x 10" Trim Size - Bind and Distribution ---------------------------------------------- Polybag Japanese mail copies using 1.5 mil clear film, subject to availability of equipment. Makeready, per machine............................ $128.32 Running, per thousand copies...................... 123.58 Postal drop shipping administrative fee, per drop Stand alone....................................... 25.40 Merged............................................ 35.54 Mailing list preparatory, per thousand records processed: Copy and reformat list............................ 0.44 Apply carrier route codes......................... 1.47 Qualify for mail discount......................... 1.39 Ink Jet........................................... 1.09 Selective binding................................. 1.09 Mail tracking..................................... 1.18 Paper label....................................... 1.59 Additional pass to qualify for bar coding........................................ 0.85 Ink Jet Message set-up, each...................... 102.37 Mailing list preparatory prices are based on you furnishing names and addresses in zip code sequence on magnetic nine track 6250 or 1600 B.P.I. tape or 18 track cartridge tape. We will qualify mailing lists to maximize postal discounts for mailing as well as direct entry discount where applicable. <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Ten Revised June 26, 1996 EXHIBIT "A" SCHEDULE OF PRICES ------------------ 7-5/8" x 10" Trim Size - Canadian Mail -------------------------------------- Saddle Stitch Binding, loose our floor, per thousand copies: Basic, No Units $23.70 4- page (cover) ............................ 1.95 6- page (gatefold) ............................ 2.34 8- page ....................................... 2.14 12- page ....................................... 2.18 16- page ....................................... 2.32 20- page ....................................... 2.52 24- page ....................................... 2.66 28- page ....................................... 2.82 32- page ....................................... 2.98 36- page ....................................... 3.13 40- page ....................................... 3.31 48- page ....................................... 4.78 56- page ....................................... 5.11 64- page ....................................... 5.71 72- page ....................................... 6.07 Furnished 4-page order form......................... 2.17 Card insert ........................................ 2.17 Furnished 12-page catalog, approximate size 6-1/8" low folio x 5-3/4" high folio x 7-1/8" head-to-foot on Basis 25 x 38 - 45# Machine Coated including 1/8" foot trim and 3/8" low folio binding lap......................................... 2.56 Furnished 12-page catalog, approximate size 6" x 7-1/8" head-to-foot, folded corner- to-corner with closed foot for suction feeding on the binder, on Basis 25 x 38 - 50# Machine Coated including 1/8" foot trim............................ 3.55 <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Eleven Revised June 26, 1996 EXHIBIT "A" SCHEDULE OF PRICES ------------------ 7-5/8" x 10" Trim Size - Canadian Mail -------------------------------------- Binder/mailer changeover to Canadian format........................................ $436.24 Canadian mail broker charges.............................. 279.00 Selective Binding - maximum 16 boxes Makeready 1-3 variable boxes............................. 519.41 4 or more variable boxes....................... 51.76 Per thousand copies 1-2 variable boxes............................. 3.89 3-6 variable boxes............................. 6.35 7 or more variable boxes....................... 8.10 Mailing list preparatory, per thousand records processed: Pre-sort less than 50,000........................... 10.38 Pre-sort over 50,000................................ 9.85 Pre-sort with postal code correction less than 50,000......................... 15.10 Pre-sort with postal code correction over 50,000.............................. 14.55 <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Twelve Revised June 26, 1996 EXHIBIT "A" SCHEDULE OF PRICES ------------------ 7-5/8" x 10" Trim Size - Additional Prices ------------------------------------------ Time Work Rates, per hour Pre-press handwork.......................... $63.14 Helio....................................... 205.86 Proof press................................. 218.95 Bindery Handwork............................ 21.23 Rotogravure press standing time, per hour........................... 510.94 Web offset press standing time, per hour.................................... 453.08 Binder/mailer standing 551.62 time, per hour.................................... Overtime Rates Time and Double One-Half Time -------- ----- Pre-Press Film Prep....................... 13.11 26.22 Helio........................... 14.28 28.56 Cylinder Making................. 14.28 28.56 Proof Press..................... 36.54 73.08 Rotogravure Presswork 70.89 141.78 Web Offset Presswork 62.03 124.06 Binder/Mailer........................ 72.34 144.68 Shipping............................. 19.60 39.20 Mail List Preparatory................ 15.04 30.08 <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Thirteen Revised June 26, 1996 EXHIBIT "B" PAPER REQUIREMENTS ------------------ 7-5/8 X 10" Trim Size --------------------- One Proofing Running Cylinder and Second Per M Change, Makeready Proofing Copies Per Cylinder --------- -------- ------ ------------ Rotogravure Paper Requirements Basis 25 x 38 - 40# 8 page in 41" rolls............ 3,095# 774# 30.53# 317# 12 page in 61-1/2" rolls........ 4,643# 1,163# 45.79 480# 16 page in 61-1/2" rolls........ 4,643# 1,163# 61.06 480# 20 page in 51-1/4" rolls........ 3,870# 969# 76.33# 399# 24 page in 61-1/2" rolls........ 4,643# 1,163# 91.58# 480# 28 page in 71-3/4" rolls........ 5,417# 1,353# 106.85# 562# 32 page in 82" rolls............ 6,384# 1,596# 124.80# 664# 36 page in 61-1/2" rolls........ 6,960# 1,742# 137.38# 725# 40 page in 51-1/4" rolls........ 3,870# 969# 151.27# 399# 48 page in 61-1/2" rolls........ 4,643# 1,163# 181.52# 480# 56 page in 71-3/4" rolls........ 5,417# 1,353# 211.78# 562# 60 page in 51-1/4" rolls........ 5,749# 1,437# 226.90# 603# 64 page in 82" rolls............ 6,384# 1,596# 249.59# 664# 72 page in 61-1/2" rolls........ 6,960# 1,742# 272.27# 725# All roll stock is to be suitable for printing on our rotogravure presses and should be approved by us for printing and binding at our normal production rates. Proofing Running and per M Makeready Copies --------- ------- Offset Paper Requirements ------------------------- Basis 25 x 38 - 80# ------------------- 4 pages in 31-5/8" rolls.................. 968# 34.84# 1 color plate change, per side of web..... 243# 4 color plate change, per side of web..... 486# Basis 25 x 38 - 80# ------------------- 6 pages in 20-5/8" rolls.................. 697# 46.9# 5th color on page one..................... 233# 1-color plate change, per side of web..... 159# 4-color plate change, per side of web..... 318# <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Fourteen Revised June 26, 1996 EXHIBIT "B" PAPER REQUIREMENTS ------------------ 7-5/8 X 10" Trim Size --------------------- Proofing Running and per M Makeready Copies --------- ------- Offset Paper Requirements ------------------------- Basis 25 x 38 - 100# -------------------- 4 pages in 31-5/8" rolls.......... 1,211# 43.55# 1-color plate change, per side of web................... 304# 4-color plate change, per side of web................... 608# Basis 25 x 38 - 40# 4 pages in 31-5/8" rolls.. 485# 17.42# 8 pages in 31-5/8" rolls.. 968# 34.84# 16 pages in 31-5/8" rolls. 968# 69.68# 1-color plate change, per side of web........... 121# 4-color plate change, per side of web........... 242# All roll stock is to be suitable for printing on our offset presses and should be approved by us for printing and binding at our normal production rates. <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Fifteen Revised June 26, 1996 EXHIBIT "B" PAPER REQUIREMENTS ------------------ 7-5/8 X 10" Trim Size --------------------- One Proofing Running Cylinder and Second Per M Change, Makeready Proofing Copies Per Cylinder --------- -------- ------- ------------ Rotogravure Paper Requirements ------------------------------ Basis 25 x 38 - 38# ------------------- 8 page in 41" rolls............ 2,940# 735# 29.00# 301# 12 page in 61-1/2" rolls........ 4,411# 1,105# 43.50# 456# 16 page in 61-1/2" rolls........ 4,411# 1,105# 58.01# 456# 20 page in 51-1/4" rolls........ 3,677# 921# 72.51# 379# 24 page in 61-1/2" rolls........ 4,411# 1,105# 87.00# 456# 28 page in 71-3/4" rolls........ 5,146# 1,285# 101.51# 534# 32 page in 82" rolls............ 6,065# 1,516# 118.56# 631# 36 page in 61-1/2" rolls........ 6,612# 1,655# 130.51# 689# 40 page in 51-1/4" rolls........ 3,677# 921# 143.71# 379# 48 page in 61-1/2" rolls........ 4,411# 1,105# 172.44# 456# 56 page in 71-3/4" rolls........ 5,146# 1,285# 201.19# 534# 60 page in 51-1/4" rolls........ 5,462# 1,365# 215.61# 573# 64 page in 82" rolls............ 6,065# 1,516# 237.11# 631# 72 page in 61-1/2" rolls........ 6,612# 1,655# 258.66# 689# All roll stock is to be suitable for printing on our rotogravure presses and should be approved by us for printing and binding at our normal production rates. Proofing Running and per M Makeready Copies --------- ------- Offset Paper Requirements ------------------------- Basis 25 x 38 - 70# ------------------- 4 pages in 31-5/8" rolls................ 847# 30.48# 1-color plate change, per side of web... 212# 4-color plate change, per side of web... 448# Basis 25 x 38 - 70# ------------------- 6 pages in 20-5/8" rolls................ 610# 41.04# 5th color on page one................... 204# 1-color plate change, per side of web... 139# 4-color plate change, per side of web... 278# <PAGE> Clifford & Wills January 1, 1996 New York, NY 10003 Page Sixteen Revised June 26, 1996 EXHIBIT "B" PAPER REQUIREMENTS ------------------ 7-5/8 X 10" Trim Size --------------------- Proofing Running and per M Makeready Copies --------- ------- Offset Paper Requirements ------------------------- Basis 25 x 38 - 38# ------------------- 4 pages in 31-5/8" rolls.. 461# 16.55# 8 pages in 31-5/8" rolls.. 922# 33.10# 16 pages in 31-5/8" rolls. 922# 66.20# 1-color plate change, per side of web........... 115# 4-color plate change, per side of web........... 230# All roll stock is to be suitable for printing on our offset presses and should be approved by us for printing and binding at our normal production rates.