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6.5. Client's mail failing to meet the Mail Specification requirements of this paragraph 6 may be suhjcct 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. Client acknowledges such penalties and assessments may 'include additional postage charged to all or most of a combined mailstream as presented by PBPS and not just for Client's portion of that combined mailaromr. 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 Agreement on fifteen (15) clays written notice to Client. 8, Fixed Rate Pricier, 8.1. Except in the case of USPS changes as described above, the fees set forth in this SOW are fixed for the Initial Tenn set forth below. 8.2. 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 that 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 part of its compensation for performance of the services, (ref for metered mail USPS form 8096). 9. Terns. This SOW shall be in full force and effect for a period of three (3) year(s) from the Effective Date ("Initial Teri'). This SOW may be extended for two (2) additional one-year periods ('Renewal Terms ") by a. writing executed by PBPS and by Client's City Manager and City Attorney. Other than a notice provided relative to this paragraph of this SOW governed by the Notice provision of die 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, PBPS CLIENT PITNEY BOWES PRESORT SERVICES, INC. CITY Of SANTA ANA Name: Name: David Cavazos Title: City Manager Date Signed,_ _.....__. Date ATTEST By. RECOMMENDED FOR APPROVAL, Name:__Maria_D__Huizar __ _... Name: Clerk of Council APPROVED AS TO FORM By: , Name: John M. gunk Title:_gaSistant 'ity Attorney Page 7 of 14 Proprietary and Confidential Information PBPS Contract Management— Rev April 2014 25C -9