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SOW #1- SCHEDULE 2.0
<br />FEES FORAUTOMATED PRESORT SERVICES
<br />For automated First Class® presort services provided by PBPS for mail meeting the Mail Specifloation requirements, road and accepted
<br />on the first pass through PBPS's mail processing equipment, Client shall pay to PEPS the following;
<br />211 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 postage on
<br />First Class permit indieia mail, at the then current LISPS Discount Rate designated below for each mail type and shall pay the
<br />presort fee per piece as shown below for the applicable mail type and service level:
<br />Notes.
<br />I • Automation compatible First Class Flats must meet the following specitcations: (1) 0 to 8 ounces; (2) up to Y, 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 ofthis SOW ( "Automated Flats ").
<br />2 - All Flats meeting the Mail Specifications, but not meeting the Automated Plats 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 />212 Postage Discount Rates at the time of this SOW are attached hereto as Appendix A.
<br />2,2 ,Special Headline: 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"0" of $ N/A per piece,
<br />2.2.2 #14 envelopes of $ N/A per piece,
<br />2.2.3 Negotiables (including checks, stooks certificates, cash, debit/credit/gift cards) of $ N/A per piece.
<br />2.2.4 Other: N A of $Nt& per piece.
<br />2.3 Exception Handling Fee. Mail that is rejected by the sorting equipment ( "Maehlno Rejected Mail" or "MRM "), including
<br />mail that fails Delivery Point Validation ( "DPVTW% mail with a pre - printed bamode that is not Full Service IMb compliant,
<br />mail that can't be barcoded, or which for any other reason PBPS cannot mechanically read ,end process as a Full Service IMb
<br />compliant mailpioco 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 make
<br />reasonable efforts to process Exception Hnndling mail the same day, such mail may be delayed because of the extra handling
<br />accessary to meet USPS preparation requirements, PBPS may re -date and submit such delayed mail the following business
<br />day.
<br />2.3.1 Machine Rejected Mail (MRM1 and Delivery Point Validation (DPV) Fees: in the event that the readability of
<br />Client's mail (or a specific mail 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 (I5) days advance written notice, initiate charging (or revise)
<br />the MRM /DPV Fee. lire MRM /DPV Fee will be applied to a percentage of Client's mail representing the Exception Mail, as
<br />determined by the most recent readability report attached to the notice. The MRM /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 />N t0 IS o b S
<br />PBPS Initials Data
<br />Page 9 of 14
<br />Proprietary and Confidential Information
<br />PBPS Contract Management —Rev April 2014
<br />a�. �,v/bI�t�
<br />Client Initials Date
<br />Prosort Fee Per Piece
<br />Mail Type
<br />USPS Discount Rate
<br />Same Day
<br />Next Day
<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 />Presort
<br />$0.012
<br />$N /A
<br />Automated Pines'— Motored
<br />N/A
<br />$N /A
<br />$N /A
<br />AutmnatedFl"' -- Permit
<br />N/A
<br />$N /A
<br />$N /A
<br />Nra,AutomatedFlats— Metered
<br />N/A
<br />$N /A
<br />$N /A
<br />Non - Automated Flats - Permit
<br />N/A
<br />$N /A
<br />$N /A
<br />Notes.
<br />I • Automation compatible First Class Flats must meet the following specitcations: (1) 0 to 8 ounces; (2) up to Y, 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 ofthis SOW ( "Automated Flats ").
<br />2 - All Flats meeting the Mail Specifications, but not meeting the Automated Plats 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 />212 Postage Discount Rates at the time of this SOW are attached hereto as Appendix A.
<br />2,2 ,Special Headline: 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"0" of $ N/A per piece,
<br />2.2.2 #14 envelopes of $ N/A per piece,
<br />2.2.3 Negotiables (including checks, stooks certificates, cash, debit/credit/gift cards) of $ N/A per piece.
<br />2.2.4 Other: N A of $Nt& per piece.
<br />2.3 Exception Handling Fee. Mail that is rejected by the sorting equipment ( "Maehlno Rejected Mail" or "MRM "), including
<br />mail that fails Delivery Point Validation ( "DPVTW% mail with a pre - printed bamode that is not Full Service IMb compliant,
<br />mail that can't be barcoded, or which for any other reason PBPS cannot mechanically read ,end process as a Full Service IMb
<br />compliant mailpioco 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 make
<br />reasonable efforts to process Exception Hnndling mail the same day, such mail may be delayed because of the extra handling
<br />accessary to meet USPS preparation requirements, PBPS may re -date and submit such delayed mail the following business
<br />day.
<br />2.3.1 Machine Rejected Mail (MRM1 and Delivery Point Validation (DPV) Fees: in the event that the readability of
<br />Client's mail (or a specific mail 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 (I5) days advance written notice, initiate charging (or revise)
<br />the MRM /DPV Fee. lire MRM /DPV Fee will be applied to a percentage of Client's mail representing the Exception Mail, as
<br />determined by the most recent readability report attached to the notice. The MRM /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 />N t0 IS o b S
<br />PBPS Initials Data
<br />Page 9 of 14
<br />Proprietary and Confidential Information
<br />PBPS Contract Management —Rev April 2014
<br />a�. �,v/bI�t�
<br />Client Initials Date
<br />
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