PITNEY BOWES PRESORT SERVICES, INC. 4A

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readability report be used to determine the Exception Mail percentage applied, if Client has taken steps to improve the mail readability, At the time of this SONV, the applicable MRM 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 assessments 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 Defend Pricing 'Perms, Upon any Event of Default (paragraph 8 of die Agreement) by Client for failure to make timely payment of Invoices or required postage payments, PBPS may elect to continue processing Client's mail, but will no longer accept any permit mail or metor any mail on behalf of Client, and Client will pre -meter all of its mail. Any tail that has not been metered will be returned to Client. Further, Clionf shall not pre -meter First Class mail at the rates specified above, and Instead shall pre -meter alt First Class mail at the then - current Presort Rate. PBPS will rebate back to Client the differeace 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 mail at the Presort rate, PBPS may pursue other options as permitted trader the Agreement. Page 3 of 3 Proprietary and Confidential tufonnation PBPS Contract Management - Rev March 2016 idIRM FEE Mail Type USPS Discount Rate .h`ame MRM Fee Per Piece Determined Percentage Letters Mixed AADC $0,00 0% Postcards Presort $0.00 0% Automated Flats N/A $N /A N/A Non- AutornatedFlats 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 assessments 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 Defend Pricing 'Perms, Upon any Event of Default (paragraph 8 of die Agreement) by Client for failure to make timely payment of Invoices or required postage payments, PBPS may elect to continue processing Client's mail, but will no longer accept any permit mail or metor any mail on behalf of Client, and Client will pre -meter all of its mail. Any tail that has not been metered will be returned to Client. Further, Clionf shall not pre -meter First Class mail at the rates specified above, and Instead shall pre -meter alt First Class mail at the then - current Presort Rate. PBPS will rebate back to Client the differeace 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 mail at the Presort rate, PBPS may pursue other options as permitted trader the Agreement. Page 3 of 3 Proprietary and Confidential tufonnation PBPS Contract Management - Rev March 2016