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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 Postage and Presort Fee. <br />2.1.1 Metered/Permit Postage 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 published USPS Discount Rate designated below for <br />each mail type and shall pay the presort fee per piece as shown below for the applicable mail type and service level: <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 />$N/A <br />$0.0341 <br />Letters — Permit <br />Mixed AADC <br />$N/A <br />$0.0341 <br />2.2 Special Handling: First Class mail otherwise meeting the Mail Specifications, but which requires additional <br />handling due to the size or content, will be charged the Presort Fee as set forth above plus a Special Handling Fee <br />for: <br />2.2.1 6"x9" of $N/A per piece. <br />2.2.2 #14 envelopes of $N/A per piece. <br />2.2.3 Negotiables (including checks, stock certificates, vouchers, or cash) of $N/A per piece. <br />2.2.4 Plastics (debit/credit/gift cards) of $N/A per piece. <br />2.2.5 Other: N/A of $N/A per piece. <br />2.3 Intelligent Mail Barcode Discount. PBPS will use its commercially reasonable best efforts to prepare Client's <br />First Class letters in accordance with the then current USPS requirements for Full Service IMb processing. PBPS <br />anticipates that it will be successful in such processing and will receive from the USPS, in addition to other <br />workshare discounts, a discount on such Full Service IMb compliant and qualifying First Class mail ("1Mb <br />Discount"). Accordingly, the IMb Discount is factored into the presort fee in paragraph 2.1 above. In the event that <br />the USPS eliminates or reduces the IMb Discount, PBPS may adjust the presort fee following written notice to Client <br />as provided in paragraph 7 of this SOW. <br />2.4 Exception Handling Fee. Mail that is rejected by the sorting equipment ("Machine Rejected Mail" or "MRM"), <br />including mail that fails Delivery Point Validation ("DPVTM"), mail with a pre-printed barcode that is not Full <br />Service Intelligent Mail Barcode ("Full Service Rvlb") compliant, mail that can't be barcoded, or which for any other <br />reason PBPS cannot mechanically read and process as a Full Service IMb compliant mailpiece as a result of the way <br />the mail was prepared by Client, including but not limited to poor print quality, incompatible fonts and incorrect <br />addressing (collectively "Exception Mail'), will be charged the above Presort Fee plus any applicable Exception <br />Handling Fee as set forth below. The per piece amount of each Exception Handling Fee is related to USPS rates and <br />may be revised by PBPS upon USPS changes as provided in paragraph 7 of this SOW. While PBPS will make <br />reasonable efforts to process Exception Mail the same day, such mail may be delayed because of the extra handling <br />necessary to meet USPS preparation requirements. PBPS may re -date and submit such delayed mail the following <br />business day. <br />2.4.1 Machine Reiected Mail (MRM) 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 />In the event the readability of Client's mail (or a specific mail type or job) has degraded and Client has not been <br />successful in restoring the readability as provided in paragraph 6.4 of this SOW, PBPS may revise the MRM Fee <br />and/or applied percentage upon fifteen (15) days advance written notice. The revised MRM Fee will be applied to a <br />Page 4 of 7 <br />Proprietary and Confidential Information <br />PBPS Contract Management — Jan 2021 <br />