...trade products and distributed trade titles combine for trade and calendar discounts...
SCHEDULE I--RETURNABLE
Trade Books (Excluding Limited Editions)
Single or Assorted Titles
1 copy, 40%
10 copies, 47%
Limited Editions
(Nonreturnable)
Any quantity, 40%
Co-op Advertising Policy: 2005 RETAIL CO-OP ADVERTISING/PROMOTIONAL ALLOWANCE POLICY
A. ANNUAL PLAN
(1) Each retailer will be allocated three separate annual promotional allowance pools--
(2) Publisher will calculate the pools for each retailer in the following manner: Existing Retailers--The ... Trade pools will each be 3% of the retailer's net purchases of books of that sales division's covered trade imprints for the prior calendar year. The Mass Market pool will be 1.5% of the retailer's net purchases of covered mass market books for the prior calendar year. Net purchases include both direct purchases from Publisher and indirect purchases from wholesalers. New Retailers-A retailer will be considered a new retailer until it has done business with Publisher for a full calendar year. Publisher will allocate pools for a new retailer based on reasonable projections of net purchases for the year. (The projections will be subject to adjustment during the year and may take into account a prior partial year.) Amounts spent in excess of the applicable percentage of the year's actual net purchases will be deducted from the following year's corresponding pool. After the first year, the Existing Retailer calculation will apply.
(3) Subject to the approval requirements set forth in Part (A)(10), a retailer may draw against its available pools for any of the following promotional activities (provided in each case that the title promoted is appropriately featured and the activity occurs within a reasonable time frame for the marketing of the title): retailer-produced bookmarks, posters, or bags; customer mailings; retailer newsletters, magazines, brochures, or circulars; print, radio, or television advertising; retailer seasonal, holiday, or special interest catalogs; author events; advertisements on others' websites. (Other types of promotions will be considered for approval by Publisher.) For each of the above, the retailer will be credited with the retailer's actual cost for the promotional activity, which credit will be charged against the retailer's applicable pool.