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.