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Exhibit 10.21
December 20, 2004
Mr. Tommy Kirkman
Senior Vice President - Sales
and marketing
Allied Automotive
Group
160 Clairemont
Avenue
Suite 600
Decatur, GA 30030
Dear Tommy:
Please accept this letter as
a proposal by Toyota Motor Sales USA, Inc.
("Toyota") to Allied Systems,
Ltd., a subsidiary of Allied Holdings, Inc.
("Allied") to renew the
existing administrative processing fee, which expired
November 15, 2004. The
administrative processing fee was granted as an
amendment
to the Agreement for
Transportation Services dated April 1, 1990 (as amended,
modified or supplemented from
time to time, the "Agreement").
Toyota proposes to apply the
administrative processing fee to the base
transportation rates
(exclusive of the previously noted administrative
processing fee) of all
locations currently serviced under contract by Allied
with the following
exclusion:
-
Any
earned incentive payments as outlined in the April 13,
2000
Letter of Agreement.
Toyota also proposes several
rate increases to the base rate structure
(administrative fee excluded
in the base structure) according to the following
guidelines:
-
An
economic rate increase of [XXXX] will be granted based on
the
factors of labor and benefits increases [XXXX] and higher
insurance
costs [XXXX]. This rate adjustment will be applied to all
current
Allied truckaway origins servicing Toyota, Lexus and Scion
dealer
destinations, except as noted above.
-
An
additional rate increase of [XXXX] will be granted for
load
factor degradation experienced during the last year. This
rate
adjustment will be applied to all current Allied Truckaway
origins
servicing Toyota, Lexus and Scion dealer destinations, EXCEPT
FOR
TRAFFIC SERVICED FROM THE FREMONT, CA TERMINAL.
-
Routes serviced out of the Fremont, CA terminal will be granted
a
targeted rate increase
of [XXXX] to accommodate the additional load
factor loss due to the transportation of the MY05 Tacoma
truck.
-
The
per shuttle rate from TLS Georgetown, KY to the Louisville,
KY
railhead will be increased[XXXX], from [XXXX] to [XXXX].
1
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Exhibit 10.21
Processing and payment will
be in accordance with existing processes. This
increase will be in effect
for one year, commencing on December 20, 2004, and
expiring on December 20,
2005. The administrative fee, as well as Allied's base
transportation rates, will
not be increased by Allied prior to December 20,
2005.
Fuel price fluctuations will
co
