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SOW #1- SCHEDULE 2.0 <br />FEES FOR AUTOMATED PRESORT SERVICES <br />For automated First Class® presort services provided by PBPS for mail meeting the Mail Specification requirements, read <br />and accepted on the first pass through PBPS's mail processing equipment, Client shall pay to PBPS the following: <br />2.1 Postaee and Presort Fee. <br />2.1.1 Metered/Permit-Postnee and Presort Fee. Client shall meter the First Class mail, or be charged for <br />postage on First Class permit indicia mail, at the then current USPS Discount Rate designated below for each marl <br />type and shall pay the presort fee per piece as shown below for the applicable mail type and service level: <br />2.2 <br />Presort Fee Per Piece <br />Mail Type <br />USPS Discount Rate Name <br />Same Day <br />Next Da <br />Letters — Metered <br />Mixed AADC <br />$0.0267 <br />$N/A <br />Letters —Permit <br />Mixed AADC <br />$0.0298 <br />$N/A <br />Postcards Metered <br />Presort <br />$0.0226 <br />$N/A <br />Postcards —Permit <br />Presort <br />$0.0226 <br />$N/A <br />2.2.3 Negotiat <br />2.2.4 Plastics <br />2.2.5 ' Other: N <br />2.3 Intellieent'Mail <br />First Class letter; <br />processing. PBPS <br />to other workshar <br />Discount'). Accc <br />the USPS:elimina <br />as provided in par <br />2.4 Exception Hand] <br />including mail th <br />Service hitelligenn <br />reason PBPS canr <br />the mail was prey <br />addressing (colle <br />Handling Fee as s <br />may be revised b <br />reasonable efforts <br />necessary to meet <br />business day. <br />time of this SOW are attached hereto as Appendix A. <br />therwise meeting i the Mail Specifications, but which requires additional <br />I be charged the Presort Fee as set forth above plus a Special Handling Fee <br />>ks, stock certificates, cash) of $tN //AA per piece. <br />rds)-of $N/A per piece. <br />ce. <br />PBPS will use its commercially reasonable best efforts to prepare Client's <br />accordance with the then current USPS requirements for Full Service IMb <br />ill be successful in such processing and will receive from the USPS, in addition " <br />unt on such Full Service IMb compliant and qualifying First Class mail ("IMb <br />scount is factored into the presort fee in paragraph 2.1 above. In the event that <br />Ili Discount, PBPS may adjust the presort fee following written notice to Client <br />W. <br />e. Mail that is rejected by the sorting equipment ("Machine Rejected Mail" or "Affw ), <br />Delivery Point Validation ("DPVTMo) mail with a pre-printed barcode that is not Full <br />3areode ("Full Service IMb") compliant, mail that can't be barcoded, or which for any other <br />hanically read and process as a Full Service IMb compliant mailpiece as a result of the way <br />y Client,including but not limited to poor print quality, incompatible fonts and incorrect <br />"Exception Mail"), will be charged the above Presort Fee plus any applicable Exception <br />i below. The per piece amount of each Exception Handling Fee is related to USPS rates and <br />S upon USPS changes as provided in paragraph 7 of this SOW. While PBPS will make <br />oess Exception Mail -the -same day, such marl may be delayed because of the extra handling <br />preparation requirements. PBPS may re -date and submit such delayed mail the following <br />2.4.1 Machine Rejected Mail (MRMI Fees: At the time of this SOW, based on the readability of Client's mail, <br />the applicable MRM Fee will be applied to the determined percentage of Client's mail for each mail type and USPS <br />discount rate set forth in the table below, The MRM Fee will be applied to such percentage regardless of the actual <br />number of pieces of Exception Mail on any given day, <br />MRM FEE <br />Mail Type <br />USPS Discount Rate Name <br />MRM Fee <br />Per Piece <br />Determined <br />Percentage <br />Letters <br />Mixed AADC <br />$0.00 <br />0% <br />Page 5-of 10 <br />Proprietary and Confidential Information <br />PBPS Contract Management— Rev Oct 2018 <br />