EXHIBIT 10.1
Hello Direct, Inc.
0000 Xxxx Xxxx Xxxxx
Xxx Xxxx, XX 00000
PROPOSAL FOR CATALOG November 19, 1996
DESCRIPTION
This proposal covers the production of your Catalog Program commencing with
your 1997 Spring Catalog and continuing through completion of all work on your
2000 Spring Catalog. Thereafter, this agreement shall continue from year to
year unless written notice of termination is given by one party to the other
prior to October 1 of any year, such termination to become effective upon
completion of the Spring Catalog of the following year.
Subject to the provisions set forth herein, you engage us, and we shall be
obligated and entitled to do or arrange for all preliminary work, cylinder
making and/or plate making, printing, binding, loading and mailing required for
the production of the catalogs. We agree to perform the work as provided herein
and to furnish all necessary materials and supplies therefor except such as you,
pursuant to the terms hereof, agree to furnish.
Should you decide to publish any additional events during the term of
this agreement, we shall have the right to produce such additional work provided
that our prices are competitive at the time such work becomes available, subject
to the availability of materials and productive capacity.
TRIM SIZE
8" x 10-1/2"
QUANTITY, TRIM SIZE, AND NUMBER OF PAGES
BODY COVER
TITLE PAGES PAGES QUANTITY
971 Cycle Full Line [
Prospect
972 Cycle Full Line
Prospect
*
973 Cycle Full Line
Prospect
974 Cycle Full Line
Prospect ]
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[*] Certain information on this page has been omitted and filed separately
with the Commission. Confidential treatment has been requested with
respect to the omitted portions.
Hello Direct, Inc. Page 2
Catalog Program November 19, 1996
SPECIFICATIONS AND PRODUCTION SCHEDULE
All work to be performed hereunder shall be in accordance with the
specifications set forth herein, and completed in accordance with a production
schedule which shall be submitted for your approval.
If at any time you desire to make changes in the specifications (including
pages and count) set forth herein or in the production schedule, we will
cooperate with you in putting such changes into effect within a reasonable
period of time, provided such changes do not have a materially adverse effect on
our operations. In the event any such change results in an increase or decrease
in the cost of performing the work, the prices for the work shall be adjusted to
fairly reflect such increase or decrease. In addition, should such change
result in our inability to use any materials on hand or ordered for you in the
production of your work, you will pay us reasonable costs associated with such
materials and their disposition.
OVERTIME
If overtime is required to meet your delivery or quantity requirements, or
if you should change the delivery date, quantity requirements, or any other
specification that necessitates overtime after a production schedule is agreed
upon, we will use our best efforts to make any necessary overtime available and
will charge for such overtime at our then current rates. If overtime is worked
due to our internal scheduling problems arising after a production schedule is
agreed upon, and not caused by your failure to comply with the production
schedule, overtime charges will not be made. No chargeable overtime will be
worked without your prior approval, and in the absence of such approval,
delivery of the work will be made as promptly as practicable consistent with our
then available capacity.
To assist us in providing for your requirements, you shall submit a
forecast by July 1 of each year showing your total requirements for the
subsequent calendar year for work hereunder, during the term of this Agreement,
including the count, number of pages, colors, copies to be bound and delivery
dates for each issue. We shall, within 30 days of receipt of such forecasts,
develop manufacturing schedules for the production of the work based on the
forecasts you furnish. You shall notify us as promptly as practicable of any
significant change in the forecasted requirements. We will make every effort to
schedule and produce all the work described in each forecast; however, our
obligation to produce the work requested shall be limited to the volume we
produced in the previous calendar year period in like page size, configuration,
quantity and timing. Any increases in requirements will be subject to our
ability to obtain materials and schedule the increased work.
PRELIMINARY OPERATIONS
HELLO DIRECT will provide to the Elgin Center color transparencies or
digitally-supplied images for all continuous tone illustrations and Native Quark
Express files for page geometry, black and color type, and all lineart
illustrations (EPS files), rules, etc.
The Elgin Center will produce electronic catalog pages with images derived
from a color image database to be created and maintained by the Elgin Center
according to methods and prices detailed below. Elgin will provide a (one)
digital contract scatter Kodak Approval proof of all images to be digitized in
high resolution. Elgin will also provide one non-contract Canon page Proof
(Iris) with all previously approved continuous tone color images cropped and in
position along with all Quark type and lineart elements in place. Elgin will
provide revisions to color proofs and alterations to Quark files as directed by
HELLO DIRECT additional charges.
PRELIMINARY OPERATIONS(Continued)
Hello Direct, Inc. Page 3
Catalog Program November 19, 1996
Following final approval of all pages, the Elgin Center will prepare
production press guidance proofs and send digital page files to the printing
plant for cylinder engraving. Any and all late changes/corrections will be made
by the Elgin Center and transmitted to the printing plant as complete revised
pages with related press guidance proofs.
Transparencies will be sent to Elgin with exact or approximate sizing two
weeks prior to the receipt of Quark files to permit separation, approval and
database inclusion. Elgin will maintain and update the image database according
to normally accepted data process industry standards. A low resolution TIFF
file of all stored images will be maintained by Xxxxx and will be available to
HELLO DIRECT. Detailed schedules will be determined prior to acceptance of
order.
We will store final reproduction medium (film or electronic data file) made
by us and used in the production of your work until the completion of the
initial binding run, (or the sale date if a press-delivered product) after which
film will be destroyed and data files erased unless otherwise agreed to and at
prices to be separately quoted.
Plates and cylinders will not be held after completion of printing unless
confirmed by letter from us. Storage of copy and/or film furnished by you
beyond completion of the work will be additional.
All furnished material will be returned immediately after completion of
production of the event for which such material was used. All packing and
handling of such material will be billed as an extra charge. Such material will
be returned f.o.b. our plant of manufacture.
OWNERSHIP OF FILM, COPY, PLATES, CYLINDERS, ETC.
Copy, electronic data files, and any film furnished by you will be used
solely for your work and will remain your property. Film, prints, reproduction
mediums, plates and cylinders made by us will be used solely for your work but
will remain our property.
PRESSWORK
Your cover pages will be carefully made ready and printed by the web offset
process in our standard four-color process inks. Your body pages will be
carefully made ready and printed by the gravure process in our standard four-
color process inks.
PAPER
We shall supply the following paper(s) or equivalent(s):
Basis 25 x 38 - # Electra Cal 65 which is included in our price at
$[***]/cwt.
Basis 25 x 38 - # Coated Grade #5 which is included in our price at
$[***]/cwt.
We shall notify you of the cost of paper for an event seven (7) days prior
to the last date of change for the paper order for that event.
If before completion of the work hereunder the cost of performance is
increased or decreased as the result of changes in the cost of paper, the prices
stated herein will be adjusted to fairly reflect any such increase or decrease.
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[*] Certain information on this page has been omitted and filed separately
with the Commission. Confidential treatment has been requested with
respect to the omitted portions.
Hello Direct, Inc. Page 4
Catalog Program November 19, 1996
PAPER(Continued)
Normal delivery of paper is 30 days prior to the "to press date" in the
production schedule. If, in order to insure an adequate supply of paper for the
production of the work, our paper suppliers require earlier than normal delivery
of paper and you consent to such early delivery, an additional [**] percent
([**]%) of the paper price will be charged for each month or fraction thereof
the paper is delivered early. We will make an additional charge reflecting
additional storage costs at our plant or other location(s) and additional
shipping and handling costs associated with such early delivery.
BINDING
We will gather press delivered signatures, along with your furnished
inserts, saddlewire stitch and trim flush three sides for delivery upon
completion f.o.b. our plant of manufacture.
We will mail bound copies with an address label pasted in the position you
request subject to (1) the limitations of the mailing machines to be used for
this work and (2) the mailing specifications of our plant performing the mail
operation.
All address labels and mail sack labels or magnetic tapes for preparation
of mail sack labels as required by our binding plant shall be furnished by you
in compliance with current Donnelley Label Specifications and Graphic
Communications Association Specifications.
Our price is based on mailing from lists of labels or more. Additional
charges will be applied for lists of less than these minimums and/or the use of
peel off labels.
We will address your catalog (and order blank), using our SELECTRONIC(R)
addressing service (with one address up to six lines) to our specifications
which we will submit, bag copies and mail.
You are to furnish ink-jet formatted magnetic tapes that are compatible
with our equipment, in PASS sequence and in accordance with specifications we
will furnish. Any reformatting, coding, combining of lists or other required
work necessary for our use of your furnished tapes, will be charged additional
after your agreement has been obtained for such work. Any double stroking (two
hits of ink) to create bold face type will be additional.
The mailing prices set forth herein are based upon postal regulations and
procedures in effect as of the date hereof which require mandatory Zip-code
sortation. If postal regulations or procedures change so as to affect our cost
for mailing the catalogs, the prices herein shall be revised to fairly reflect
any increase or decrease in such costs. The cost of postage and permits will be
paid by you and you shall be responsible, if necessary, for establishing an
account at the U.S. Post Office with sufficient funds to cover mailing.
Nothing contained herein shall require us to do anything in violation of
United States Postal laws, regulations or procedures.
Any other required labels shall be furnished by you to our specifications.
All copies are for delivery upon completion f.o.b. our plant of
manufacture.
-----------------------
[*] Certain information on this page has been omitted and filed
separately with the Commission. Confidential treatment has been
requested with respect to the omitted portions.
Hello Direct, Inc. Page 5
Catalog Program November 19, 1996
FREIGHT
Unless you request otherwise, we will arrange for shipment of your finished
materials from our plant of manufacture. In such event, you shall pay all
distribution charges, and we shall be entitled to retain any brokerage
commissions or other service charges earned by us or our wholly-owned
subsidiaries.
TERMS OF PAYMENT
Net cash [**] days from date of invoice. We shall have the right to
change terms of payment should there be a substantial adverse change in your
credit standing or in the event you do not comply with the terms of these
provisions and our obligation to perform future work will be subject to
reaching mutual agreement on revised terms.
If you delay completion of manufacture beyond the period contemplated by
the production schedule or if partial shipment is made prior to the completion
of the entire quantity, interim billing may be made.
INTEREST AND COLLECTION COSTS
Our obligation to perform work hereunder is subject to prompt payment of
all invoices pursuant to the terms of this and other agreements we may have
with you. Should any invoice issued hereunder become past due, you agree to
pay interest at the rate of [****] percent ([**]%) per month, or the lawful
limit if less, on all amounts past due. Progress billing of interest due or
failure to bill for interest due shall not constitute a waiver of our right to
charge interest on all amounts past due to the date payment is received.
If you fail to pay our invoice in accord with these terms, you agree to
pay all costs of collection, including but not limited to, reasonable
attorneys' fees.
DISPUTES
Should any portion of an invoice become disputed, you agree to pay the
undisputed portion according to its terms and you will notify us promptly of the
dispute. Both parties agree to use their best efforts to resolve the disputed
portion of such invoice within thirty (30) days of learning of the dispute.
CREDIT REVIEW
The above provisions may be reviewed by us and should there be a
substantial adverse change in your credit standing or in the event that you do
not comply with terms of these provisions, we will have the right to change
terms of payment, and our obligation to perform further work will be subject
to reaching mutual agreement on revised terms.
SUBMISSION OF COPY
Submission of copy or film for commencement of production hereunder shall
constitute acceptance by you of the prices and other terms and conditions
contained herein.
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[*] Certain information on this page has been omitted and filed separately
with the Commission. Confidential treatment has been requested with
respect to the omitted portions.
Hello Direct, Inc. Page 6
Catalog Program November 19, 1996
LIEN ON PROPERTY
As security for payments of any sum due or to become due us under the
terms of this Agreement, we shall have the right, if necessary, to retain
possession of, and shall have a lien on all property owned by you and in our
possession, and all work in process and undelivered work.
BANKRUPTCY
If either party shall be adjudicated a bankrupt, institute voluntary
proceedings for bankruptcy or reorganization, make an assignment for the
benefit of its creditors, apply for or consent to the appointment of a
receiver for it or its property, or admit in writing its inability to pay its
debts as they become due, the other party may terminate this Agreement by
written notice. Any such termination shall not relieve either party from any
accrued obligations hereunder.
OVERRUNS AND UNDERRUNS
Variations in quantity of two (2%) percent more or less than quantities
ordered will constitute acceptable delivery, and the price will be adjusted at
the over/under delivery per thousand copy price. If the work involves more
than one version, the over/under percent for each version shall depend upon
ordered quantity of that version, as separately quoted.
PRICE ADJUSTMENTS
The direct material prices stated in this Agreement are based upon the
costs of materials (except pool paper) as of the date hereof, and will be
adjusted based upon actual changes in these costs. Should any change become
effective after part of the work has been performed, such adjustments shall
apply only to that work produced after such change. Should any volume or trade
discounts be earned on materials, they shall be retained by Xxxxxxxxx.
The manufacturing prices stated in this Agreement shall be adjusted on
September 1 of each year during the term ("the date of adjustment") as
follows: In August of each year during the term of this Agreement, Xxxxxxxxx
will calculate the percentage of change in the Consumers Price Index ("the
CPI") from the fifteenth month preceding the date of adjustment to the third
month preceding the date of adjustment. Should this calculation show that
there has been an increase in the CPI, then effective on the date of
adjustment, all of the manufacturing prices shall be increased by [****] percent
([**%]) of the percentage of increase in the CPI. Should this calculation show
that there has been no change in the CPI, or that the CPI has decreased, then
no change shall be made in the manufacturing prices for the next twelve
months. In such event, at the next date of adjustment at which the foregoing
calculation indicates an increase in the CPI, the percentage of change in the
CPI for the purpose of determining the price adjustment hereunder, if any,
will be calculated from the CPI upon which the last adjustment of
manufacturing prices was based. For purposes of this paragraph, the CPI means
the Consumers Price Index (1982(C)84=100), All Urban Wage Earners and Clerical
Workers, U.S. City Average, published monthly by the Bureau of Labor
Statistics, U.S. Department of Labor. If the CPI as defined is revised,
discontinued, or replaced, the calculation described herein shall be made
using the price index with which the Bureau of Labor Statistics replaces it.
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[*] Certain information on this page has been omitted and filed separately
with the Commission. Confidential treatment has been requested with
respect to the omitted portions.
Hello Direct, Inc. Page 7
Catalog Program November 19, 1996
Any sales, retailers occupation, service occupation, value added or use tax
imposed on account of this transaction will be added as an extra charge.
GOVERNMENTAL, SAFETY OR ENERGY CHANGES
During the term of this Agreement it may become necessary to make changes
in the methods of production or in the equipment used to produce the work
herein in order to: (i) comply with laws or regulations of any governmental
authority, (ii) provide for safe operation, or (iii) provide substitute energy
sources during an energy or utility shortage. In addition, a governmental
authority may impose a monetary charge on the operation of such equipment in
connection with an environmental or energy law or regulation, or a utility
company may drastically increase its rates due to such shortages. Should,
after the date of this Agreement, any such change become necessary and/or such
charge be imposed, the current prices herein shall be adjusted to fairly
reflect any resulting cost.
MATERIALS AND PURCHASED SERVICES
Unless otherwise provided, we will supply the materials (paper, ink,
binding materials, etc.) or purchased services specified herein or their
equivalents. It is understood and agreed that should we be unable to obtain
such materials or services or their equivalents in necessary quantities, the
parties shall select mutually agreeable substitute materials or services.
Should the use of such substitute materials or services increase or decrease
the cost of performing the work, the prices will be adjusted to fairly reflect
any such increase or decrease in cost. The unavailability of materials or
services will not be considered a breach of this Agreement. Should any volume
or trade discounts be earned on materials or services, they will be retained
by us. All scrap and by-products will become our property.
STORAGE
Unless otherwise specified, the prices in this Agreement contain no
storage of paper, other materials, work in process or finished goods beyond
the production schedule span. If you delay completion of the work or postpone
delivery of finished goods beyond the date specified in the production
schedule, or if your furnished materials arrive prior to the dates specified
in the production schedule, storage will be charged at the prevailing rates
for each month up to twelve months the finished goods, work in process or
furnished materials remain in our possession. Such rate will be doubled for
each month after the first twelve months of storage. If, following the
eighteenth month of storage we receive no direction from you as to the
disposition of the stored items, such items will be destroyed.
EDITING OF COPY
The price quoted does not, unless otherwise stated, include the editing
of copy.
GUARANTEE AND LIMITATION OF LIABILITY
We will perform the work in a good and workmanlike manner and in
accordance with the specifications and production schedule. In the event the
work is defective or delayed due to our fault (including negligence), we shall
not be liable for special or consequential damages, including, but not limited
to, lost profits or business.
Hello Direct, Inc. Page 8
Catalog Program November 19, 1996
WORK STOPPAGES
We shall not be liable for delays or non-performance of this Agreement
occasioned by strikes, fires, accidents, or by causes beyond our control
including, but not limited to, the unavailability of materials, purchased
services, utilities or fuel. In the event of a stoppage or delay resulting from
any such cause, we shall perform such parts of the work as we are capable of
performing, and in the event you place any other part of the work elsewhere, we
shall be entitled to resume the same as promptly as practicable.
CHANGE IN MEDIUM
In the event that you change the medium used for your products, we shall be
entitled, but not obligated, to produce the work for you in the new medium
during the remaining term of this Agreement provided that our prices are
competitive with the market for the new medium at the time you make such change.
DISCONTINUANCE OF PUBLICATION
Should you decide to discontinue the publication of the program in any
medium without publishing a successor, whether titled the same or not, you
shall use your best efforts to give us 90 days advance written notice of such
decision. Without limiting the foregoing, you shall be obligated to pay for
work done or in process. In addition, you shall reimburse us for costs which
we cannot avoid through reasonable effort.
SALE OF PUBLICATION
If you shall propose to sell the catalogs or any successors, whether
titled the same or not, you shall give us written notice not less than 90 days
prior to any contemplated sale, stating the name of the prospective purchaser
and the proposed date of sale. Thereafter and whether or not we shall consent
to an assignment as hereinafter provided, you shall keep us fully advised of
the progress of any such proposed sale and we shall keep such information
confidential. Within 60 days after receipt of such notice, we shall advise you
in writing as to whether we will consent to an assignment of your rights and
obligations under this Agreement to the prospective purchaser. If we shall
consent, you shall require the purchaser concurrently with the consummation of
such sale, to assume all your obligations under this Agreement by an
instrument in writing satisfactory to us.
If we shall not consent to the assignment by you to such prospective
purchaser, this Agreement shall terminate upon the first to occur of the
following events: (i) the consummation of such sale, or (ii) the expiration of
180 days after we advise you that we will not consent to the proposed
assignment, unless within such 180 days period you notify us that you do not
propose to consummate such sale.
ASSIGNMENT
Neither party to this Agreement shall assign any right or rights hereunder
without the prior written consent of the other party, except that we may assign
payments due us to our wholly-owned subsidiaries without consent. Subject to
this consent, this Agreement shall inure to the benefit of and shall bind the
successors and assigns of the parties hereto.
Hello Direct, Inc. Page 9
Catalog Program November 19, 1996
INSURANCE
We will carry at our expense fire, sprinkler leakage, and extended coverage
insurance, subject to the usual exclusions, limitations, and conditions of such
policies, on the actual cash value of all our materials, work in process, and
all production completed and not shipped, and on the actual cash value of all
positives, copy, artwork, paper and other materials furnished by you, while in
our care, custody and control. If your property is damaged as a result of an
insured peril under the applicable insurance policy, then, at our option, we
will either replace your damaged property or reimburse you for the actual cash
value of the damaged property. If we elect to reimburse you for the damaged
property's actual cash value, the amount payable to you shall be limited to the
proceeds of such policy plus any related deductible, if any, applied to the
claim for damage to your property. For positives and other media our insurance
coverage and our liability shall be limited to the cost of blank film or other
media and the cost of duplication from an original or other copy.
RESPONSIBILITY FOR SUBJECT MATTER
In furnishing us matter to reproduce or to have incorporated in the
completed product, you represent and warrant that none of such matter (either
as furnished to us by you or as altered by us at your direction) infringes any
copyright, is libelous, or otherwise violates the rights of or will cause
damage or injury to other persons, and you agree to indemnify and save us
harmless from all losses, damages and expenses, including attorneys' fees,
which we may suffer as the result of any claim of such violation, damage or
injury.
PASSING OF TITLE
Title and possession shall pass to you upon delivery or upon the date of
final invoicing, whichever is earlier, f.o.b. our final plant of manufacture.
GOVERNING LAW
This Agreement shall be governed by the laws of the State of Illinois.
EXHIBITS
This Agreement includes the following Exhibit(s) which are attached
hereto and made a part hereof:
EXHIBIT A - PRICE SCHEDULE
Hello Direct, Inc. Page 10
Catalog Program November 19, 1996
If this proposal meets with your approval, kindly sign below. This proposal
shall remain in effect for a period of thirty days from the date hereof and is
subject to the availability of equipment at the time the approved proposal is
submitted to us for confirmation. Following your approval and upon confirmation
by an officer of X. X. Xxxxxxxxx & Sons Company, the approved proposal will then
constitute a contract between us.
Respectfully submitted,
X. X. XXXXXXXXX & SONS COMPANY
By: /s/ Xxxx Xxxx
-----------------------------------
Sales Representative
Approved:
HELLO DIRECT, INC.
By: /s/ Xxxxx Xxxxxxx
---------------------------------------
Authorized officer, partner, owner, etc.
Date: November 21, 1996
Hello Direct, Inc. Page A-1
Catalog Program November 19, 1996
ASSUMPTIONS:
-------------
Base quantity: [****] copies, 4-color throughout
Trim Size: 8" x 10-1/2"
Cover stock: Coated Grade 5 (Printed offset) @ $[***]/cwt.
Body Stock: Electra Cal or equivalent (Printed Rotogravure) @ $[***]/cwt.
INSTRUCTIONS:
-------------
For each of the page counts listed below, please indicate:
1) Number and size of forms (i.e.: 64 pg 1-on; 56 + 16; 84 pg 1-on;etc.)
2) Base manufacturing cost including plates or cylinders, make-ready and
bindery. Do not include paper and ink.
3) Base paper cost
4) Base ink cost
5) Total base cost at [****] copies
6) $/M Manufacturing cost including bindery. Do not include paper and ink.
7) $/M paper cost
8) $/M ink cost
9) Total $/M cost
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PAGE COUNT 4 PG 8 PG 56 PG 60 PG 64 PG 68 PG 72 PG 76 PG 80 PG
FORM TYPE COVER COVER BODY BODY BODY BODY BODY BODY BODY
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1) FORMS: 4pg 4-on 8 pg 4-on 56 pg 1-on 48 pg 1-on 64 pg 1-on 56 pg 1-on 72 pg 1-on 64 pg 1-on 64 pg 1-on
12 pg 4-on 12 pg 4-on 12 pg 4-on 16 pg 4-on
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2) BASE MFG: [
---------------
3) BASE PAPER:
---------------
4) BASE INK:
---------------
5) TOTAL BASE:
---------------
---------------
6) $/M MFG: ***
---------------
7) $/M PAPER:
---------------
8) $/M INK:
---------------
9) TOTAL $/M:
---------------
---------------
PAPER LBS.
---------------
LBS./M ]
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PAGE COUNT 84 PG 88 PG 96 PG 100 PG
FORM TYPE BODY BODY BODY BODY
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1) FORMS: 84 pg 1-on 72 pg 1-on 72 pg 1-on 84 pg 1-on
16 pg 4-on 24 pg 3-on 16 pg 4-on
---------------------------------------------------------------
2) BASE MFG: [
---------------
3) BASE PAPER:
---------------
4) BASE INK:
---------------
5) TOTAL BASE:
---------------
---------------
6) $/M MFG:
--------------- ***
7) $/M PAPER:
---------------
8) $/M INK:
---------------
9) TOTAL $/M:
---------------
---------------
PAPER LBS.
---------------
LBS./M ]
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[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to
the omitted portions.
Hello Direct, Inc. Page A-2
Catalog Program November 19, 1996
ASSUMPTIONS:
------------
Base quantity: [****]copies, 4-color throughout
Trim Size: 8" x 10-1/2"
Cover stock: Coated Grade 5 (Printed offset) @ $[***]/cwt.
Body Stock: Electra Cal or equivalent (Printed Rotogravure) @ $[***]/cwt.
INSTRUCTIONS:
-------------
For each of the page counts listed below, please indicate:
1) Number and size of forms (i.e.: 64 pg 1-on; 56 + 16; 84 pg 1-on;etc.)
2) Base manufacturing cost including plates or cylinders, make-ready and
bindery. Do not include paper and ink.
3) Base paper cost
4) Base ink cost
5) Total base cost at [****] copies
6) $/M Manufacturing cost including bindery. Do not include paper and ink.
7) $/M paper cost
8) $/M ink cost
9) Total $/M cost
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PAGE COUNT 104 PG 112 PG 116 PG 120 PG 124 PG 128 PG 132 PG 136 PG 140 PG
FORM TYPE BODY BODY BODY BODY BODY BODY BODY BODY BODY
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1) FORMS: 72 pg 1-on 72 pg 1-on 108 pg 1-on 108 pg 1-on 108 pg 1-on 72 pg 1-on 108 pg 1-on 72 pg 1-on 108 pg 1-on
32 pg 2-on 40 pg 2-on 8 pg 4-on 12 pg 4-on 16 pg 4-on 56 pg 1-on 24 pg 4-on 64 pg 1-on 32 pg 3-on
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2) BASE MFG: [
---------------
3) BASE PAPER:
---------------
4) BASE INK:
---------------
5) TOTAL BASE:
---------------
---------------
6) $/M MFG: ***
---------------
7) $/M PAPER:
---------------
8) $/M INK:
---------------
9) TOTAL $/M:
---------------
---------------
PAPER LBS.
---------------
LBS./M ]
----------------------------------------------------------------------------------------------------------------------------------
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PAGE COUNT 144 PG 148 PG 152 PG
FORM TYPE BODY BODY BODY
-----------------------------------------------------
1) FORMS: 72 pg 1-on 108 pg 1-on 96 pg 1-on
72 pg 1-on 40 pg 1-on 56 pg 1-on
-----------------------------------------------------
2) BASE MFG: [
---------------
3) BASE PAPER:
---------------
4) BASE INK:
---------------
5) TOTAL BASE:
---------------
---------------
6) $/M MFG: ***
---------------
7) $/M PAPER:
---------------
8) $/M INK:
---------------
9) TOTAL $/M:
---------------
---------------
PAPER LBS.
---------------
LBS./M ]
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[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to
the omitted portions.
Hello Direct, Inc. Page A-3
Catalog Program November 19, 1996
ASSUMPTIONS:
------------
Base quantity: [****] copies, 4-color throughout
Trim Size: 8" x 10-1/2"
Cover stock: Coated Grade 5 (Printed offset) @ $[***]/cwt.
Body Stock: Electra Cal or equivalent (Printed Rotogravure) @ $[***]/cwt.
INSTRUCTIONS:
-------------
For each of the page counts listed below, please indicate:
1) Number and size of forms (i.e.: 64 pg 1-on; 56 + 16; 84 pg 1-on;etc.)
2) Base manufacturing cost including plates or cylinders, make-ready and
bindery. Do not include paper and ink.
3) Base paper cost
4) Base ink cost
5) Total base cost at [****] copies
6) $/M Manufacturing cost including bindery. Do not include paper and ink.
7) $/M paper cost
8) $/M ink cost
9) Total $/M cost
----------------------------------------------------------------------------------------------------------------------
PAGE COUNT 156 PG 160 PG 164 PG 168 PG 172 PG 176 PG 180 PG 184 PG
FORM TYPE BODY BODY BODY BODY BODY BODY BODY BODY
-----------------------------------------------------------------------------------------------------------------------
1) FORMS: 108 pg 1-on 96 pg 1-on 72 pg 1-on 96 pg 1-on 108 pg 1-on 72 pg 1-on 108 pg 1-on 96 pg 1-on
48 pg 2-on 64 pg 1-on 72 pg 1-on 72 pg 1-on 64 pg 1-on 72 pg 1-on 72 pg 1-on 72 pg 1-on
20 pg 2-on 32 pg 2-on 16 pg 4-on
-----------------------------------------------------------------------------------------------------------------------
2) BASE MFG: [
---------------
3) BASE PAPER:
---------------
4) BASE INK:
---------------
5) TOTAL BASE:
---------------
---------------
6) $/M MFG: ***
---------------
7) $/M PAPER:
---------------
8) $/M INK:
---------------
9) TOTAL $/M:
---------------
---------------
PAPER LBS.
---------------
LBS./M ]
-----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------
PAGE COUNT 188 PG 192 PG 196 PG 200 PG
FORM TYPE BODY BODY BODY BODY
----------------------------------------------------------------------
1) FORMS: 108 pg 1-on 96 pg 1-on 108 pg 1-on 72 pg 1-on
72 pg 1-on 96 pg 1-on 72 pg 1-on 72 pg 1-on
8 pg 4-on 16 pg 4-on 56 pg 1-on
----------------------------------------------------------------------
2) BASE MFG: [
---------------
3) BASE PAPER:
---------------
4) BASE INK:
---------------
5) TOTAL BASE:
---------------
---------------
6) $/M MFG:
---------------
7) $/M PAPER: ***
---------------
8) $/M INK:
---------------
9) TOTAL $/M:
---------------
---------------
PAPER LBS.
---------------
LBS./M ]
----------------------------------------------------------------------
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to
the omitted portions.
Hello Direct, Inc. Page A-4
Catalog Program November 19, 1996
ASSUMPTIONS:
------------
Base quantity: [****]copies, 4-color throughout
Trim Size: 8" x 10-1/2"
Cover stock: Coated grade five @ $[***]/cwt.
Body Stock: Coated grade five @ $[***]/cwt.
-----------------------------------------------------------------------------------------------------------------------------------
PAGE COUNT 4 PG COVER 8 PG COVER 4 PG BODY 8 PG BODY 16 PG BODY 32 PG BODY 64 PG BODY 68 PG BODY
------------------------------------------------------------------------------------------------------------------------------------
1) BASE MFG: [
---------------
2) BASE PAPER:
---------------
3) BASE INK:
---------------
4) TOTAL BASE:
---------------
---------------
5) $/M MFG:
---------------
6) $/M PAPER: ***
---------------
7) $/M INK:
---------------
8) TOTAL $/M:
---------------
---------------
PAPER LBS.
---------------
LBS./M ]
------------------------------------------------------------------------------------------------------------------------------------
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to
the omitted portions.
Hello Direct, Inc. Page A-5
Catalog Program November 19, 1996
MISCELLANEOUS SERVICES
Preliminary:
------------
Conventional Scan, each [***]
Shadow, each [***]
Silo, each [***]
Digital Image, each [***]
System Time, per hour [***]
Computer Time, per hour [***]
Kodak Approval, per page [***]
Type Correction, per page, per occurrence [***]
Rotogravure Printing:
---------------------
Cost of Black cylinder change (per side, single form) for price testing, etc. [***] (includes paper and cost of cylinder)
Cost of 4-color cylinder change (per side, single form) for catalog versioning [***]
Offset Printing:
----------------
Cost of black plate change (single form) for price testing, etc. [***]
Cost of 4-color plate change (single form) for catalog versioning [***]
Bindery:
--------
Cost of bindery makeready for each scheduled mail drop [***] (one bindery makeready charged for all
bindings if tapes available)
Bindery cost ($/M) including 2 blow-in cards [***] (Blow-ins only @ $[***]/each less
bindery per M included in mfg.)
Makeready for Blow-in cards [***]
Selectronic gathering makeready ($/pocket) [***] (includes up to 5 boxes;
over 5 boxes = $[***]/box)
Selectronic gathering run charges ($/M per standard box) [***] (plus $[***]/M run per box)
Selective Dot whacking (sticker application) ($/M) [***]
Ink jet messaging set-up fee (back cover) [***]
Ink Jet messaging run fee ($/M) [***]
[*] Certain information on this page has been omitted and filed separately
with the Commission. Confidential treatment has been requested with
respect to the omitted portions.
Hello Direct, Inc. Page A-6
Catalog Program November 19, 1996
Miscellaneous Services (Continued)
Mailing:
--------
Ink jet makeready (includes pre-processing of magnetic tape) [***]
Ink jet addressing, including bar coding (back cover only) $/M [***] (Bar code only)
Mailing costs ($/M): [***]
Drop shipment freight to regional USPS offices (average $/cwt) [***]
Bulk Shipments:
---------------
Cost per carton: [***]
Cost per carton packing ($/M) [***] (included in cost of carton)
Skid (cartons placed on skids) [***]
Storage Fees:
-------------
Blow-in cards [***]
Unbound signatures held for future mailings [***]
[*] Certain information on this page has been omitted and filed separately
with the Commission. Confidential treatment has been requested with
respect to the omitted portions.