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SOW 01 - 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 and accepted
<br />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/Permlt Postaee and Presort Fee. Client shall meter the First Class mail, or be charged for postage on
<br />First Class permit indicia mail, at the then current USPS Discount Rate designated below for each mail type and small pay the
<br />presort fee per piece as shown below for the applicable mail type and service level:
<br />Notes:
<br />1 - Automation compatible First Class Flats must meet the following specifications: (1) 0 to 8 ounces; (2) up to %s inch
<br />thick; (3) up to 13 inches in length; (4) windowed flats must be glassine sealed with no gaps; and (5) otherwise meeting
<br />the Mail Specification requirements of this SOW ("Automated Flats").
<br />2 - All Flats meeting the Mail Specifications, but not meeting the Automated Flats specifications listed above ("Non -
<br />Automated Flats").
<br />3 — Client shall pay the designated presort fee for non -automation compatible First Class letter mail over 2 ounces metered
<br />or permit at the Mixed AADC rate.
<br />2.1,2 Postage' Discount Rates at the time of this SOW are attached hereto as Appendix A.
<br />2.2 Special Handlbtg: First Class mail otherwise meeting the Mail Specifications, but which requires additional handling due to
<br />the size or content, will be charged the Presort Fee as set forth above plus a Special Handling Fee for:
<br />2.2.1 6"x9" of $ NIA per piece.
<br />2.2.2 #14 envelopes of $ NIA per piece.
<br />2.2.3 Negotiables (including checks, stocks certificates, cash, debit/crodit/gilt cards) of $ N/A per piece.
<br />2.2,4 Other: N,N/A, of $N/A per piece.
<br />2.3 Exception Handling Fee. Mail that is rejected by the sorting equipment ("Machine Rejected Mail" or "MRM"), including
<br />mail that fails Delivery Point Validation ("DPVFM' ), mail with a pre-printed bareodo that is not Full Service IMb compliant,
<br />mail that can't be barcoded, or which for any other reason PBPS cannot mechanically road and process as a. Full Service IMb
<br />compliant mailpiece as a result of the way the mail was prepared by Client, including but not limited to poor print quality,
<br />incompatible fonts and incorrect addressing (collectively "Exception Mail"), will be charged the above Presort Fee plus any
<br />applicable Exception Handling. Fee as set forth below. The per piece amount of each Exception Handling Fee is related to
<br />USPS rates and may be revised by PBPS upon USPS changes as provided in paragraph 7 of this SOW. While PBPS will male
<br />reasonable efforts to process Exception Handling mail the same day, such mail may be delayed because of the extra handling
<br />necessary to meet USPS preparation requirements. ?BPS may re -date and submit such delayed mail the following business
<br />day.
<br />2.3.1 Machine Rejected Mail (MRM) and Delivery Point Validation (DPV, Fees: In the event that the readability of
<br />Client's mail (or a specific trail type or job) has degraded and Client has not been successful in restoring the readability as
<br />provided in paragraph 6.4 of this SOW, PBPS may upon fifteen (15) days advance written notice, initiate charging (or revise)
<br />the MRM/DPV Pee. The MRM/DPV Fee will be applied to a percentage of Client's mail representing the Exception Mall, as
<br />determined by the most recent readability report attached to the notice. The M'RIvI/DPV Fee will be applied to such percentage
<br />regardless of the actual number of pieces of Exception Mail on any given day. Client may request a more recent readability
<br />report be used to determine the Exception Mail percentage applied, if Client has taken steps to improve the mail readability.
<br />PBPSTnitials Date Client Initials Do(.
<br />Page 9 of 14
<br />Proprietary and Confidential Information
<br />PBPS Contract Management—Rev Apr112014 _ v
<br />Presort Fee Per Piece
<br />Mail lype
<br />USPS Discount Rate
<br />Same Day
<br />Next Da
<br />Letters—Metered
<br />Mixed AADC
<br />$0.016
<br />$N/A
<br />Letters—Permit
<br />Mixed AADC
<br />$0.019
<br />$N/A
<br />Letters—Non-Automated
<br />Mixed AADC
<br />$0.05
<br />$N/A
<br />Postcards—Metered
<br />Presort
<br />$0.012
<br />$N/A
<br />Postcards — Permit
<br />Prosort
<br />$0.012
<br />$N/A
<br />Automated Flats — Metered
<br />N/A
<br />.$N/A
<br />$N/A
<br />Automated Flats —Permit
<br />N/A
<br />$N/A
<br />$N/A
<br />Non -Automated Flats —Metered
<br />NIA
<br />Non -Automated Flats -Permit
<br />NIA
<br />Notes:
<br />1 - Automation compatible First Class Flats must meet the following specifications: (1) 0 to 8 ounces; (2) up to %s inch
<br />thick; (3) up to 13 inches in length; (4) windowed flats must be glassine sealed with no gaps; and (5) otherwise meeting
<br />the Mail Specification requirements of this SOW ("Automated Flats").
<br />2 - All Flats meeting the Mail Specifications, but not meeting the Automated Flats specifications listed above ("Non -
<br />Automated Flats").
<br />3 — Client shall pay the designated presort fee for non -automation compatible First Class letter mail over 2 ounces metered
<br />or permit at the Mixed AADC rate.
<br />2.1,2 Postage' Discount Rates at the time of this SOW are attached hereto as Appendix A.
<br />2.2 Special Handlbtg: First Class mail otherwise meeting the Mail Specifications, but which requires additional handling due to
<br />the size or content, will be charged the Presort Fee as set forth above plus a Special Handling Fee for:
<br />2.2.1 6"x9" of $ NIA per piece.
<br />2.2.2 #14 envelopes of $ NIA per piece.
<br />2.2.3 Negotiables (including checks, stocks certificates, cash, debit/crodit/gilt cards) of $ N/A per piece.
<br />2.2,4 Other: N,N/A, of $N/A per piece.
<br />2.3 Exception Handling Fee. Mail that is rejected by the sorting equipment ("Machine Rejected Mail" or "MRM"), including
<br />mail that fails Delivery Point Validation ("DPVFM' ), mail with a pre-printed bareodo that is not Full Service IMb compliant,
<br />mail that can't be barcoded, or which for any other reason PBPS cannot mechanically road and process as a. Full Service IMb
<br />compliant mailpiece as a result of the way the mail was prepared by Client, including but not limited to poor print quality,
<br />incompatible fonts and incorrect addressing (collectively "Exception Mail"), will be charged the above Presort Fee plus any
<br />applicable Exception Handling. Fee as set forth below. The per piece amount of each Exception Handling Fee is related to
<br />USPS rates and may be revised by PBPS upon USPS changes as provided in paragraph 7 of this SOW. While PBPS will male
<br />reasonable efforts to process Exception Handling mail the same day, such mail may be delayed because of the extra handling
<br />necessary to meet USPS preparation requirements. ?BPS may re -date and submit such delayed mail the following business
<br />day.
<br />2.3.1 Machine Rejected Mail (MRM) and Delivery Point Validation (DPV, Fees: In the event that the readability of
<br />Client's mail (or a specific trail type or job) has degraded and Client has not been successful in restoring the readability as
<br />provided in paragraph 6.4 of this SOW, PBPS may upon fifteen (15) days advance written notice, initiate charging (or revise)
<br />the MRM/DPV Pee. The MRM/DPV Fee will be applied to a percentage of Client's mail representing the Exception Mall, as
<br />determined by the most recent readability report attached to the notice. The M'RIvI/DPV Fee will be applied to such percentage
<br />regardless of the actual number of pieces of Exception Mail on any given day. Client may request a more recent readability
<br />report be used to determine the Exception Mail percentage applied, if Client has taken steps to improve the mail readability.
<br />PBPSTnitials Date Client Initials Do(.
<br />Page 9 of 14
<br />Proprietary and Confidential Information
<br />PBPS Contract Management—Rev Apr112014 _ v
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