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SOW #1- SCHEDULE 2.0 FEES FOR AUTOMATED PRESORT SERVICES For automated First Classy presort services provided by PBPS for mail meeting the Mail Specification requirements, read and accepted on the fust pass through PBPS's mail processing equipment, Client shall pay to PBPS the following: 2.1 Postage and Presort Fee. 2.1.1 Metered/Permit Postage and Presort Fee. Client shall meter the First Class mail, or be charged for postage on First Class permit indicia mail, at the then current USPS Discount Rate designated below for each mail type and shall pay the presort fee per piece as shown below for the applicable mail type and service level: 2.1.2 Postage Discount Rates at the time of this SOW are attached hereto as Appendix A. 2.2 Special Handling: First Class mail otherwise meeting the Mail Specifications, but which requires additional handling due to the size or content, will be charged the Presort Fee as set forth above plus a Special Handling Fee for. 2.2.1 6"x9" of $N/A per piece. 2.2.2 #14 envelopes of $N/A per piece. 2.2.3 Negotiables (including checks, stock certificates, cash) of $N/A per piece. 2.2.4 Plastics (debit/credit(gift cards) of $N/A per piece. 2.2.5 Other. N/A of $N/A per piece. 2.3 Intelligent Mail Barcode DiscounL PBPS will use its commercially reasonable best efforts to prepare Client's First Class letters and postcards in accordance with the then current USPS requirements for Full Service IMb processing. PBPS anticipates that it will be successful in such processing and will receive from the USPS, in addition to other workshare discounts, a discount on such Full Service IMb compliant and qualifying First Class mail ("IMb Discount"). Accordingly, the IMb Discount is factored into the presort fee in paragraph 2.1 above. In the event that the USPS eliminates or reduces the IMb Discount, PBPS may adjust the presort fee following written notice to Client as provided in paragraph 7 of this SOW. 2.4 Exception Handling Fee. Mail that is rejected by the sorting equipment ("Machine Rejected Mail" or "MRM', including mail that fails Delivery Point Validation ("DPVr`P'), mail with a pre-printed barcode that is not Full Service Intelligent Mail Barcode ("Full Service IMb") compliant, mail that can't be barcoded, or which for any other reason PBPS cannot mechanically read and process as a Full Service IMb compliant mailpiece as a insult of the way the mail was prepared by Client, including but not limited to poor print quality, incompatible fonts and incorrect addressing (collectively "Exception Mail"), will be charged the above Presort Fee plus any applicable Exception Handling Fee as set forth below. The per piece amount of each Exception Handling Fee is related to USPS rates and may be revised by PBPS upon USPS changes as provided in paragraph 7 of this SOW. While PBPS will make reasonable efforts to process Exception Mail the same day, such mail may be delayed because of the extra handling necessary to meet USPS preparation requirements. PBPS may re -date and submit such delayed mail the following business day. 2.4.1 Machine Reiected Mail (MRM) Fees: At the time of this SOW, based on the readability of Client's mail, the applicable MRM Fee will be applied to the determined percentage of Client's mail for each mail type and USPS discount rate set forth in the table below. The MRM Fee will be applied to such percentage regardless of the actual number of pieces of Exception Mail on any given day. Presort Fee Per Piece Mail Type USPS Discount Rate Name Same Day Next Da Letters—Metered Mixed AADC $0.0267 $N/A Letters—Permit Mixed AADC $0.0298 $NIA Postcards—Metered Presort $0.0226 $N/A Postcards—Permit Presort $0.0226 $N/A 2.1.2 Postage Discount Rates at the time of this SOW are attached hereto as Appendix A. 2.2 Special Handling: First Class mail otherwise meeting the Mail Specifications, but which requires additional handling due to the size or content, will be charged the Presort Fee as set forth above plus a Special Handling Fee for. 2.2.1 6"x9" of $N/A per piece. 2.2.2 #14 envelopes of $N/A per piece. 2.2.3 Negotiables (including checks, stock certificates, cash) of $N/A per piece. 2.2.4 Plastics (debit/credit(gift cards) of $N/A per piece. 2.2.5 Other. N/A of $N/A per piece. 2.3 Intelligent Mail Barcode DiscounL PBPS will use its commercially reasonable best efforts to prepare Client's First Class letters and postcards in accordance with the then current USPS requirements for Full Service IMb processing. PBPS anticipates that it will be successful in such processing and will receive from the USPS, in addition to other workshare discounts, a discount on such Full Service IMb compliant and qualifying First Class mail ("IMb Discount"). Accordingly, the IMb Discount is factored into the presort fee in paragraph 2.1 above. In the event that the USPS eliminates or reduces the IMb Discount, PBPS may adjust the presort fee following written notice to Client as provided in paragraph 7 of this SOW. 2.4 Exception Handling Fee. Mail that is rejected by the sorting equipment ("Machine Rejected Mail" or "MRM', including mail that fails Delivery Point Validation ("DPVr`P'), mail with a pre-printed barcode that is not Full Service Intelligent Mail Barcode ("Full Service IMb") compliant, mail that can't be barcoded, or which for any other reason PBPS cannot mechanically read and process as a Full Service IMb compliant mailpiece as a insult of the way the mail was prepared by Client, including but not limited to poor print quality, incompatible fonts and incorrect addressing (collectively "Exception Mail"), will be charged the above Presort Fee plus any applicable Exception Handling Fee as set forth below. The per piece amount of each Exception Handling Fee is related to USPS rates and may be revised by PBPS upon USPS changes as provided in paragraph 7 of this SOW. While PBPS will make reasonable efforts to process Exception Mail the same day, such mail may be delayed because of the extra handling necessary to meet USPS preparation requirements. PBPS may re -date and submit such delayed mail the following business day. 2.4.1 Machine Reiected Mail (MRM) Fees: At the time of this SOW, based on the readability of Client's mail, the applicable MRM Fee will be applied to the determined percentage of Client's mail for each mail type and USPS discount rate set forth in the table below. The MRM Fee will be applied to such percentage regardless of the actual number of pieces of Exception Mail on any given day. Page 4 of 9 Proprietary and Confidential Information 25E-1 1 PBPS Contract Management— Rev Oct 2018 MRM FEE Mail Type USPS Discount Rate Name MRM Fee Determined Per Piece Percentage Letters Mixed AADC 1 $0.00 0%" Page 4 of 9 Proprietary and Confidential Information 25E-1 1 PBPS Contract Management— Rev Oct 2018