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applicable to such services are set forth on Schedule 5.0. Additional locations or distinct mailstreams may be assigned their own Schedule 5.x, e.g., 5.1, 5.2, etc. Any reference to Schedule 5.0 also applies to any Schedule 5.x. 6.4. Readability: Mail meeting the Mail Specifications is expected to process well on the PBPS equipment, meaning that PBPS can read the address and obtain a valid delivery point on the fust pass. Specific expectations for the readability of Client's mail may be set forth on Schedule 2.x. If PBPS observes that Client's mail readability has degenerated, PBPS will provide Client with samples of the rejected mail and recommendations to resolve the readability and/or address accuracy problems. Client will cooperate with efforts to promptly restore the readability to reasonable levels. 6.5. Client's mail failing to meet the Mail Specification requirements of this paragraph 6 may be subject to return of the mail, exception handling or ancillary fees set forth on Schedules 2.0 and 3.0, and/or USPS penalties. Client shall promptly, upon receipt of appropriate documentation, reimburse PBPS for all penalties or assessments levied against PBPS by the USPS as a result of Client's (or its customer or print provider) improper preparation and finishing of its mail. 7. USPS Changes. Notwithstanding any other language in the Agreement or this SOW regarding pricing or changes, in the event the USPS adopts any new/revised postal regulations, procedures, rates, or incentives that directly affect the cost or provision of the services, PBPS may modify or terminate this SOW on fifteen (15) days written notice to Client. 8. CPI Adi ustment. Not more than once each calendar year and upon fifteen (15) days prior written notice to_Client, PBPS may adjust the fees set forth in this SOW based upon increases in the most current published Consumer Price Index ("CPI") for the previous twelve-month period (each, a "CPI Adjustment"). The CPI will be measured as indicated in the column for Urban Wage Earners and Clerical Workers, U.S. City average (base index year 1982-1984=100) as published by the Bureau of Labor Statistics. The base rate to which the CPI will be applied for calculating the presort fee in connection with a CPI Adjustment is the total cost per piece (postage and fees combined) at the time of calculation less the then -current USPS 5 digit discount rate. 9. Fixed Rate Pricing. 9.1. Except for the annual CPI Adjustment and any PBPS modifications due to USPS changes as described above, the fees set forth in this SOW are fixed for the Initial Term set forth below. 9.2. Client will be charged the amounts set forth herein regardless of whether the actual postage qualification rates for Client's mail are higher or lower than the postage discount rate set forth on Schedule 2.0 and 3.0. Client hereby authorizes PBPS to receive and retain any USPS postage refunds, incentives or rebates based on the amount of Client's mail that qualifies for any lower presort mailing rates to PBPS, and all such refunds, incentives or rebates will become the property of PBPS as pari of its compensation for performance of the services. (ref for metered mail: USPS form 8096). 10. Term. The Initial Term and Renewal Terms of this SOW will coincide with those of the Agreement. Other than a notice provided relative to the Term or termination of this SOW, which shall be governed by the Notice provision of the Agreement, all other written notices permitted or required under this SOW or the Schedules attached hereto, may be accomplished by e-mail with system delivery confirmation. The total sum to be expended by Client for fees (including postage reimbursement) under this SOW shall not exceed twenty thousand dollars ($20,000) annually, including for any Renewal Terms. Page 2 of 9 Proprietary and Confidential Information 25E-9 PBPS Contract Managemmt — Rev Oct 2018