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SOW #1 - SCITEDULE 2.0 (continued) FEES FOR AUTOMATED PRESORT SERVICES At the time of this SOW, the applicable MRM /DPV Fee applied to the determined percentage of Client's mail for each mail type and discount rate is set forth below: 2,3.2 IMb Downgrade; If Client pre- barcodes its mail with a barcode that is not Full Service IMb compliant or presents mail on which PBPS cannot print a Full Service IMb, Client may be charged an IMb Downgrade based upon any penalties, postage assessinents or forfeiture of discounts (collectively, "Downgrade ') which may be imposed by the USPS on PBPS, based upon PBPS' calculation of Client's pro -rata share of such non - compliant mail. 2.4 Default Pricing Terms. Upon any Event of Default as defined in paragraph 8 of the Agreement, PBPS may elect to continue processing Client's mail, but will no longer accept any permit mail or meter any mail on behalf of Client, and Client will pre- 0 meter all of its mall. Any mail that has not been metered will be returned to Client. Further, Client shall not pre -mater First Class nmil at the rates specified above, and instead shall pre -motor all First Class mail at the then - current Presort Rate, PBPS will rebate back to Client the difference between the Presort pre - metered rate and the contract pricing herein for mail processed at the Presort rate, after setting off against such rebate amount any sums then due from Client to PBPS pursuant to this Agreement. If Client fails to pre -meter the snail at the Presort rate, PBPS may pursue other options as permitted under the Agreerent. PBPSInitials Date Proprietary and Confidential Information PBPS Contract Management —Rev Aph12014 Page 10 of 14 25C -12 Client Initials Date NIRM FEE DPV FEE Mail Type USPS Discount Rate MRM Fee Per Piece Determined Percentage DPV Fee Per Piece Determined Percentage Letter's Mixed AADC $0.00 0% $0.00 0% Postcards Presort $0.0275 2.7% $0.047 2.7% Automated Plats N/A $N /A N/A $N /A N/A Non - Automated Flats N/A $N /A N/A $N /A N/A 2,3.2 IMb Downgrade; If Client pre- barcodes its mail with a barcode that is not Full Service IMb compliant or presents mail on which PBPS cannot print a Full Service IMb, Client may be charged an IMb Downgrade based upon any penalties, postage assessinents or forfeiture of discounts (collectively, "Downgrade ') which may be imposed by the USPS on PBPS, based upon PBPS' calculation of Client's pro -rata share of such non - compliant mail. 2.4 Default Pricing Terms. Upon any Event of Default as defined in paragraph 8 of the Agreement, PBPS may elect to continue processing Client's mail, but will no longer accept any permit mail or meter any mail on behalf of Client, and Client will pre- 0 meter all of its mall. Any mail that has not been metered will be returned to Client. Further, Client shall not pre -mater First Class nmil at the rates specified above, and instead shall pre -motor all First Class mail at the then - current Presort Rate, PBPS will rebate back to Client the difference between the Presort pre - metered rate and the contract pricing herein for mail processed at the Presort rate, after setting off against such rebate amount any sums then due from Client to PBPS pursuant to this Agreement. If Client fails to pre -meter the snail at the Presort rate, PBPS may pursue other options as permitted under the Agreerent. PBPSInitials Date Proprietary and Confidential Information PBPS Contract Management —Rev Aph12014 Page 10 of 14 25C -12 Client Initials Date