Exhibit 10.22
CONFIDENTIAL TREATMENT HAS BEEN REQUEST FOR PORTIONS OF THIS DOCUMENT
MARKED WITH ASTERISKS.
TRANSPORTATION SERVICE AGREEMENT
THIS AGREEMENT, made and entered into this first day of August, 2001 by
and between FMI EXPRESS CORP., a New Jersey Corporation, FMI TRUCKING INC., a
New Jersey Corporation, having its principal offices at 800 Federal Blvd.,
Carteret, N.J. (hereinafter referred to as "Carrier") and JONES APPAREL GROUP
USA, INC., a Pennsylvania corporation, having its principal offices at 250
Rittenhouse Circle, Bristol, Pa. 19007 (hereinafter referred to as "SHIPPER").
WITNESSETH:
WHEREAS, CARRIER possesses the expertise, qualified personnel, facilities,
equipment and underlying authority to properly and lawfully transport freight by
motor vehicle for hire; has the ability to provide experienced labor to on-load
and off-load freight at origin and destination; and;
WHEREAS, SHIPPER desires to engage the services of CARRIER for
transportation of freight as hereinafter set forth;
NOW, THEREFORE, in consideration of the premises and mutual benefits to be
derived by the Parties from this Agreement and the mutual promises made and
exchanged between the Parties, the Parties do hereby covenant and agree as
follows;
1. REPLACEMENT OF PRIOR AGREEMENTS
This Agreement shall take the place of and entirely supersede any oral or
written agreements/arrangements that deal with the same subject matter as
referenced herein between SHIPPER and CARRIER except for any rights, obligations
and liabilities which by the terms of that Agreement or the law survive its
expiration.
2. TRANSPORTATION SERVICES
2.05 SHIPPER shall utilize the services of CARRIER on an exclusive basis
during the term of this Agreement for the points of service as defined in
Schedule A unless CARRIER is unable to perform the services required at that
time.
2.10 CARRIER will transport commodities between points and places in the
United States and perform such other related services as are designated by
SHIPPER and defined in Exhibit A ("Transportation Services"). SHIPPER reserves
the right to add or delete locations by notice amending Exhibit A as its
transportation needs requires.
2.20 In the performance of the Transportation Services, CARRIER is solely
and exclusively a "contract carrier" as such term is defined by law and
customarily used in the transportation industry. CARRIER represents that it is
not dealing with SHIPPER as a broker or common carrier but only as a contract
carrier.
CONFIDENTIAL TREATMENT HAS BEEN REQUEST FOR PORTIONS OF THIS DOCUMENT
MARKED WITH ASTERISKS.
2.30 CARRIER agrees that time is of the essence in its performance of the
Transportation Services to be provided hereunder, and that it will faithfully
adhere to all applicable schedules and delivery intervals agreed to by the
parties and other reasonable instructions related to the Transportation Services
which may be communicated to CARRIER by SHIPPER in writing from time to time.
3. TERM
This Agreement shall become effective as of August 1, *** and shall
continue in full force and effect for a period of *** months. After the first
year, the Agreement shall continue force until terminated by either SHIPPER or
CARRIER by giving *** days notification of termination prior to the termination
date.
4. COMPENSATION
4.10 A description of; and requirements applicable to, the Transportation
Services to be provided hereunder are defined on Exhibit B attached hereto.
Rates and charges or Transportation Services hereunder are set forth on Exhibit
A attached hereto.
4.20 Rates may be established and amended verbally by agreement between
the parties in order to meet specific time requirements and such agreed upon
rates shall be deemed in writing,, and supplement this Agreement if SHIPPER
sends via facsimile a signed copy of the applicable rates and charges to CARRIER
and CARRIER returns a signed copy set via facsimile of same to SHIPPER. The
parties understand that the verbally agreed upon rate, evidenced by the signed
copy sent via facsimile of the applicable rates, will be the "writing" adopted
by reference herein, and that rate shall prevail in the event of any
disagreement as to the actual controlling rate.
4.30 Effective on the yearly anniversary date of this agreement, a minimum
cost of living increase of *** shall be assessed on the rates and charges in
schedule B attached hereto.
5. PAYMENT
5.10 CARRIER shall furnish a single invoice containing all charges
applicable to subject for each bill of lading transaction. Payment will be made
by SHIPPER within fifteen (15) days from receipt of a complete, accurate legible
invoice.
6. WEIGHT
The maximum weight per loaded trailer shall not exceed the limitations
imposed by the States from, to or through which the vehicle moves.
CONFIDENTIAL TREATMENT HAS BEEN REQUEST FOR PORTIONS OF THIS DOCUMENT
MARKED WITH ASTERISKS.
7. LAWS
CARRIER, it subcontractors and agents, shall at all times in the
performances of the Transportation Services hereunder, conform to all
requirements of applicable Federal, State and Local laws, ordinances and
regulations.
8. INDEMNIFICATION
8.10 Except as otherwise provided in this Agreement, CARRIER shall liable
for confirmed shortages and damages, while in CARRIER's possession, as indicated
in paragraph 8.15 and 8.20 of this Agreement.
8.15 INBOUND: SHIPPER shall be reimbursed by CARRIER for loss of
merchandise at first cost plus duty and freight with a maximum of *** per
occurrence.
8.20 OUTBOUND: SHIPPER shall be reimbursed by CARRIER for loss of
merchandise at *** of the SHIPPER's invoice amount, based on the average price
of items on the SHIPPER's invoice, subject to a maximum per occurrence of ***.
9. INSURANCE
9.10 CARRIER shall provide and keep in effect during the period of this
Agreement insurance with an insurer acceptable to SHIPPER to cover cargo,
trailers, equipment furnished or Transportation Services performed, by CARRIER,
its subcontractors, and agents, in minimum coverage limits as follows:
(a) Statutory workers compensation and employers liability with limits of
$500,000.
(b) Commercial General liability, including coverage for personal injury,
with a combined singled limit for bodily injury, property damage and personal
injury of $1,000,000 per occurrence, including SHIPPER as additional insured.
(c) Business automobile liability insurance (covering owned, hired and all
classes of non-owned vehicles) with a combined single limit of $1,000,000
including SHIPPER as additional insured.
(d) Cargo liability covering Shipper's cargo, including trailers, with
limits of $500,000 per trailer and designating SHIPPER as sole loss payee as
respects damage to SHIPPER's property.
9.20 CARRIER shall issue a certificate of insurance (at time of the
Carrier's insurance renewal) to SHIPPER, Attention: Risk Management Department
evidencing the coverage's as indicated above and sent to SHIPPER's designee
before starting movement. All coverage in (b), (c) and (d) above shall be
primary to any coverage of SHIPPER.
CONFIDENTIAL TREATMENT HAS BEEN REQUEST FOR PORTIONS OF THIS DOCUMENT
MARKED WITH ASTERISKS.
9.30 Neither failure of CARRIER to comply with any or all of the insurance
provisions of the Agreement, nor the failure to secure endorsements on the
policies as may be necessary to carry out the terms and provisions of the
Agreement, shall be construed to limit or relieve CARRIER from any of its
obligations under the Agreement, including the INSURANCE Article.
10. FORCE MAJEURE
Neither Party will be liable for delays and/or defaults in its performance
or commitments under this Agreement when the effected Party is unable to comply
by reason of acts of God, public enemy, fire or explosion, flood, earthquakes,
accidents, civil commotion, closing of public highways, governmental
interference or regulations or other contingencies, similar or dissimilar to the
foregoing, which are beyond the reasonable control of the effected party (other
than the lack or inability to provide funds) or labor disputes (whether or not
within the reasonable control of the affected party), provided however, that the
affected party must use due diligence in seeking to cure such cause and in
resuming performance.
11. NOTICES
Any notice given in writing under this Agreement shall be considered as
having been given by either Party to the other Party upon the receipt by the
other Party by first class United States mail at the below, appropriate address.
Notices to CARRIER shall be forwarded to:
FMI TRUCKING INC.
FMI EXPRESS CORP.
800 FEDERAL BLVD.
CARTERET, NJ 07008
Telephone: (908) 750-9000
Facsimile: (908) 750-4338
Notices to SHIPPER shall be forwarded to:
JONES APPAREL GROUP USA, INC.
250 RITTENHOUSE CIRCLE
BRISTOL, PA. 19007
Telephone: (215) 781-5432
Facsimile: (215) 785-4619
12. APPLICABLE LAW
The laws of the State of New Jersey shall govern the construction of this
Agreement.
CONFIDENTIAL TREATMENT HAS BEEN REQUEST FOR PORTIONS OF THIS DOCUMENT
MARKED WITH ASTERISKS.
13. DEFAULT
13.10 In the event either Party to this Agreement shall default in the
performance of any obligations specified, the non-defaulting Party shall notify
the other Party in writing, and if such default is not remedied with reasonable
promptness, then the non-defaulting party shall have the right to terminate this
Agreement immediately. Termination under this Article, or under any other
Article of this Agreement, shall not relieve or release either Party from any
liability which accrued prior to the date of such termination. Upon termination
for default, the non-defaulting party shall be entitled to avail itself of any
rights or remedies provided herein or at law or in equity, the same being
cumulative and non-exclusive.
14. WAIVER
Failure of either Party, in any or more than one instance, to insist upon
the performance of any of the terms, covenants, or conditions of the Agreement
or to exercise any right or privilege herein, or the waiver by either Party of
any breach of any of the terms, covenants, or conditions of this Agreement shall
not be construed as thereafter waiving any such terms, covenants, conditions,
rights or privileges, but the same shall continue and remain in full force and
effect the same as if no such forbearance or waiver had occurred.
15. TAXES
CARRIER agrees to pay and assume all taxes, licenses, fees, and other
assessments which may be levied upon the equipment furnished by CARRIER, its
subcontractors, and/or agents hereunder except for equipment supplied by
SHIPPER.
16. ASSIGNMENTS
The rights and obligations in this Agreement are personal to each Party to
this Agreement, and shall not be assignable or otherwise transferable by either
Party, in whole or in part, without the written consent of the other Party.
17. SEVERABILITY
In the event that any Article of this Agreement shall be found to be void
or unenforceable, such findings shall not be construed to render any other
Article of this Agreement either void or unenforceable, and all other Articles
shall remain in full force and effect unless the Article(s) which is/are invalid
or unenforceable shall substantially affect the rights or obligations granted to
or undertaken by either Party.
18. HEADINGS
All headings of the Articles of the Agreement are inserted for convenience
only and shall not affect any construction or interpretation of this Agreement.
CONFIDENTIAL TREATMENT HAS BEEN REQUEST FOR PORTIONS OF THIS DOCUMENT
MARKED WITH ASTERISKS.
19. ENTIRETY
THIS AGREEMENT together with the attachments and Exhibits specifically
referenced and attached hereto embodies the entire understanding between SHIPPER
and CARRIER and there are no agreements, understandings, conditions, or
representations, oral or written, with reference to the subject matter hereof
which are not merged herein. Except as otherwise specifically stated, no
modification hereto shall be of any force or effect unless (1) reduced in
writing and signed by both Parties hereto, and (2) expressly referred to as
being modifications of this Agreement.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
by their duly authorized representatives.
SHIPPER CARRIER
By: /s/ *** By: /s/ MICHAEL DESAYE
----------------------------- -------------------------------
Title: *** Title: EXECUTIVE VICE PRESIDENT
----------------------------- -------------------------------
Date: 7/27/01 Date: JULY 23, 2001
----------------------------- -------------------------------
CONFIDENTIAL TREATMENT HAS BEEN REQUEST FOR PORTIONS OF THIS DOCUMENT
MARKED WITH ASTERISKS.
MODIFICATION AGREEMENT
THIS MODIFICATION AGREEMENT ("Modification") is made and entered into this
1ST day of FEBRUARY, 2006 by and between FMI International LLC ("FMI" or
"Carrier"), a Delaware limited liability company, formerly known as FMI Express
Corp. and FMI Trucking Inc., having its principal offices at 800 Federal Blvd.,
Carteret, NJ 07008 and Jones Apparel Group USA, Inc. ("Jones" or "Shipper"), a
Pennsylvania corporation, having its principal offices at 250 Rittenhouse
Circle, Bristol, PA 19007 (collectively, the "Parties").
RECITALS
WHEREAS, the Parties have entered into that certain Transportation Service
Agreement ("Agreement") dated August 1, 2001, referred to as if set forth at
length herein; and,
WHEREAS, the Parties re-affirm the binding nature of the Agreement; and,
WHEREAS, the Parties wish to modify certain terms and/or conditions of the
Agreement, as described below.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
and agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties hereby
agree as follows.
1. TERM:
This Modification shall become effective as of February 1, 2006 and shall
continue in full force and effect for a period of *** months through *** (the
"Termination Date"). After the first *** months, the Modification shall continue
in force until terminated by either Shipper or Carrier by giving *** days
written notification of termination prior to the Termination Date.
CONFIDENTIAL TREATMENT HAS BEEN REQUEST FOR PORTIONS OF THIS DOCUMENT
MARKED WITH ASTERISKS.
2. COMPENSATION:
Rates and charges for Transportation Services hereunder are set forth on
Exhibit `A', attached hereto.
All other terms and conditions of the Agreement shall remain in full force
and effect.
IN WITNESS WHEREOF, the Parties have caused this Modification to be
executed by their duly authorized representatives.
JONES APPAREL GROUP USA, INC.
By: /s/ ***
-----------------------------------
Name: ***
Title: *** - Jan 31, 2006
FMI INTERNATIONAL LLC
By: /s/ MICHAEL DESAYE
-----------------------------------
Michael DeSaye
Chief Logistics Officer
CONFIDENTIAL TREATMENT HAS BEEN REQUEST FOR PORTIONS OF THIS DOCUMENT
MARKED WITH ASTERISKS.
EXHIBIT `A'
RATES AND CHARGES
see attached
CONFIDENTIAL TREATMENT HAS BEEN REQUEST FOR PORTIONS OF THIS DOCUMENT
MARKED WITH ASTERISKS.
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FMI TRUCKING INC. (MC-243372) 1/17/2006 TARIFF # 003
----------------------------------------------------
FMI EXPRESS CORP. (MC-278051) 11TH Revised 84
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SPECIFIC ACCOUNT TRUCK RATES
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TN2,TN2 JONES APPAREL GROUP
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PIER DRAYAGE
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COMMODITY FROM: TO: BASIS RATES
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WEARING APPAREL *** *** *** ***
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*** *** *** ***
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LOOSE FREIGHT *** *** *** ***
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TRANSLOAD
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COMMODITY TYPE LOCATION BASIS RATES
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WEARING APPAREL *** *** *** ***
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AIR FREIGHT
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COMMODITY FROM: TO: BASIS RATES
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WEARING APPAREL *** *** *** ***
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LINEHAUL
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COMMODITY TYPE FROM: TO: BASIS RATES
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WEARING APPAREL *** *** *** *** ***
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NOTE: ALL TRUCKING RATES SUBJECT TO APPLICABLE FUEL SURCHARGE FEE
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See last page of tariff for explanation of reference marks not explained on this page
Issued By:
FMI INTERNATIONAL
800 Federal Blvd., Carteret, N.J. 07006
The provisions published herein will, if effective, not result in an effect on the quality of the human environment.
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CONFIDENTIAL TREATMENT HAS BEEN REQUEST FOR PORTIONS OF THIS DOCUMENT
MARKED WITH ASTERISKS.
- ----------------------------------------------------------------------------------------------------------------------
FMI TRUCKING INC. (MC-243372) 1/17/2006 TARIFF # 003
----------------------------------------------------
FMI EXPRESS CORP. (MC-278051) 11TH Revised 84
- ----------------------------------------------------------------------------------------------------------------------
SPECIFIC ACCOUNT TRUCK RATES
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ACCOUNT: EL PASO/SOCORRO, TX JONES APPAREL GROUP
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PIER DRAYAGE
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COMMODITY FROM: TO: BASIS RATES
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WEARING APPAREL *** *** *** ***
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*** *** *** ***
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LOOSE FREIGHT *** *** *** ***
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*** *** *** ***
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*** *** *** ***
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TRANSLOAD
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COMMODITY TYPE LOCATION BASIS RATES
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WEARING APPAREL *** *** *** ***
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AIR FREIGHT
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COMMODITY FROM: TO: BASIS RATES
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WEARING APPAREL *** *** *** ***
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LINEHAUL
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COMMODITY TYPE FROM: TO: BASIS RATES
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WEARING APPAREL *** *** *** *** ***
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*** *** *** *** ***
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*** *** *** *** ***
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NOTE: ALL TRUCKING RATES SUBJECT TO APPLICABLE FUEL SURCHARGE FEE
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
See last page of tariff for explanation of reference marks not explained on this page
Issued By:
FMI INTERNATIONAL
800 Federal Blvd., Carteret, N.J. 07006
The provisions published herein will, if effective, not result in an effect on the quality of the human environment.
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