| Receiving | Storage | Inventory Insurance | Returned Merchandise |
| Rates and Terms | Communications and Reports | Fulfillment Questionnaire |
 | Incoming Inventory Specifications |

RECEIVING

Each incoming shipment is carefully validated by identification of product (publisher, author, title and code), quantity and identity. Publishers Storage and Shipping Corp. moves received stock promptly to picking and storage locations and reports receipt to publishers in writing. Inventory control records are set up and maintained for each product warehoused.

Publishers Storage and Shipping Corp. requires incoming products to be cartoned in 275 lb. test cartons and on 48" long by 40" wide pallets with a height limitations of 55" overall. Each carton must be clearly marked with the name of the publisher, title and/or code, weight, and the quantity of books within.

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STORAGE

Publishers Storage and Shipping Corp. stores each publisher's stock in designated areas in its warehouse. All inventory items are stored off the floor and are kept clean and dry. Publishers Storage and Shipping Corp. can provide complete physical inventories if scheduled in advance. It is suggested that publishers have a complete physical inventory at least once a year. Publishers Storage and Shipping Corp. will count a single title at any time upon request without charge.

 

INVENTORY INSURANCE -
PSSC POLICY

Property deposited with PSSC must be enrolled in an all risk insurance plan provided by PSSC under which properties are insured to the extent of the coverage, subject to a $1000 deductible prorated among the participating depositors in the warehouse in the event of any actual loss or damage. Alternatively .the depositor should provide PSSC with a subrogation waiver from its own insurance carrier against fire, casualty or other such risks. If a depositor has insurance but their insurer does not provide or refuses to provide a waiver of subrogation the property shall be enrolled in PSSC’s plan until the waiver is supplied. Proof of insurance must be supplied yearly by the depositors that have their own insurance otherwise the property will be added to the PSSC plan.

1. Publishers who are themselves insuring such inventories as they might maintain at PSSC should forward to PSSC a current certificate of insurance bearing the following endorsement:

   • It is hereby agreed that the Right of Subrogation is waived as respects property located on the premises of Publishers Storage and Shipping Corp.
      

2. Publishers who wish PSSC to insure their inventory deposited with PSSC should know that:

• Hanover Insurance Co. has issued a policy naming PSSC and its clients as insured. Actually, each publisher client is added as an insured by a specific endorsement on the date the coverage is requested.

• PSSC reports to Hanover Insurance Co. each month the value of the inventory of each participating publisher. The value is calculated as follows: the number of book units in inventory times the average unit value (as specified by each publisher).

• The annual premium charged by Hanover Insurance Co. is .65 per each $100 of valuation. Hence the monthly rate is $.054 per C.

• The monthly premiums will be paid by PSSC and added to its monthly invoice for services. The premium will be determined by multiplying the inventory value by the monthly rate.

  • e.g. Hype Publishing Co. 1000 books x unit value of $2.00 divided by $100 x $.054 = premium of $1.08
     

• The policy has a $1000 deductible provision. This provision is not against each participant but is prorated among all.

• The coverage is for Fire, Extended Coverage, Vandalism, Sprinkler Leakage and standard All Risk Perils. Copies of the insurance contract with endorsements as appropriate will be provided to all participants.

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Moving In and Out As long as space is available, publishers wishing to use either of the Publishers Storage and Shipping Corp. facilities may make arrangements to move in at any time. Normal receiving charges apply. A publisher may remove inventory from Publishers Storage and shipping Corp. at any time and normal shipping charges apply. No extra charges for moving in or out will be levied unless special requirements are made by the publisher. It is suggested that Publishers Storage and Shipping Corp. be given as much notice as possible in order that it can make such moves as efficient as possible for the publisher.

RETURNED MERCHANDISE

Publishers Storage and Shipping Corp. accepts shipments of returns from publisher's customers. Each shipment is identified and counted. Further, each book or other material is separately examined and evaluated as sellable, slightly scuffed, not sellable, or if returned defective. Books are replaced in stock or otherwise disposed of in conformance with each publisher's instructions. All returns are reported in writing to the publisher and reflected on Publishers Storage and Shipping Corp. inventory control.

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RATES AND TERMS

Monthly statements for services are sent to each publisher. Terms are net 15 days. If an account remains unpaid for 60 days, service is subject to suspension until the account is brought current.

Publishers Storage and Shipping Corp.'s rate schedules are straight forward and uncomplicated so publishers can easily estimate their costs. There are no hidden charges. Rates are subject to change. Advance notice will be given on any rate change. Rate schedules for services and other information on services may be obtained by contacting PSSC at 978-345-2121.

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