Negotiated Service Agreements

Classification Schedule

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[630]{.underline} [BANK OF AMERICA CORPORATION NEGOTIATED SERVICE
AGREEMENT]{.underline}

1.  [Definitions]{.underline}

> [The following terms shall have the meanings ascribed to them in the
> Negotiated Service Agreement ("NSA" or "Agreement") between Bank of
> America Corporation ("Bank of America") and the United States Postal
> Service ("Postal Service"): Bank of America Mail, CONFIRM Service,
> Courtesy Reply Mail, eDropShip, FAST (or "Facility Access and Shipment
> Tracking System"), Four-State Barcode (or "OneCode"), Letter-Rated
> Mail, OneCode ACS, PostalOne!®, Qualifying Permit Numbers, Schedule A
> First-Class Mail, Schedule B First-Class Mail, and Seamless
> Acceptance.]{.underline}

2.  [Eligible Mail]{.underline}

    1.  [Bank of America]{.underline}

> [Bank of America Mail eligible for discounts under Rate Schedules
> 630A, 630B, 630C, 630D, and 630E is limited to letter-rated mail that
> (1) is entered by or on behalf of Bank of America or a subsidiary or
> affiliate, (2) relates to the business activities of Bank of America
> or a subsidiary or affiliate, and (3) complies with the machinability
> requirements specified in the Agreement. Such mail includes
> cooperative mailings and mail entered pursuant to marketing
> arrangements with other entities.]{.underline}

2.  [Other Mailers]{.underline}

> [Functionally equivalent NSAs, involving worksharing discounts for
> performance-based improvements resulting from (i) the implementation
> of Four-State Barcode, OneCode ACS, CONFIRM Service, Seamless
> Acceptance, FAST, and eDropShip, (ii) the barcoding of Courtesy Reply
> Mail, Business Reply Mail, and Qualified Business Reply Mail, and
> (iii) the adoption of electronic Address Correction Service in lieu of
> physical returns for letter-rated First-Class Mail that would
> otherwise be eligible for Standard Mail rates, may be entered into
> with other customers, as specified by the Postal Service, and
> implemented pursuant to proceedings under Chapter 36 of Title 39, of
> the United States Code.]{.underline}

3.  [Operational Commitments of Bank of America]{.underline}

    1.  [Four-State Barcode]{.underline}

> [Bank of America will use the Four-State Barcode on all Bank of
> America Mail entered under a Qualifying Permit Number as letter-rated
> First-Class Mail or Standard Mail.]{.underline}

2.  [OneCode ACS]{.underline}

> [Bank of America will place OneCode ACS markings on all Bank of
> America Mail entered under a Qualifying Permit Number as letter-rated
> First-Class Mail and Standard Mail, subject to the conditions and
> exceptions set forth in the text of the NSA.]{.underline}

3.  [Waiver of Physical Return of Certain Letter-Rated
    Mailpieces]{.underline}

> [Bank of America will accept electronic information about certain
> kinds of undeliverable-as-addressed letter-rated mailpieces instead of
> their physical return, as specified in the text of the
> NSA.]{.underline}

4.  [CONFIRM Service]{.underline}

> [Bank of America will implement use of CONFIRM Service in accordance
> with section 991. Bank of America will use CONFIRM Service for all
> Bank of America Mail entered under a Qualifying Permit Number as
> letter-rated First-Class Mail and Standard Mail.]{.underline}

5.  [Seamless Acceptance]{.underline}

> [Bank of America will use seamless acceptance for Bank of America Mail
> entered under a Qualifying Permit Number as letter-rated First-Class
> Mail and Standard Mail. Bank of America will use a Mail.dat file (or
> Web-services) in conjunction with Four-State Barcodes to enable the
> Postal Service to use performance-based verification procedures for
> mail entered by Bank of America, subject to the conditions and
> exceptions set forth in the text of the NSA.]{.underline}

6.  [Fast and eDropShip]{.underline}

> [Bank of America will use the automated scheduling services provided
> to the FAST system through the PostalOne! electronic data exchange
> services to enter its letter-rated Standard Mail mailpieces with
> destination entry discounts, subject to the conditions and exceptions
> set forth in the text of the NSA.]{.underline}

7.  [Barcoding of Courtesy Reply Mail, Business Reply Mail, and
    Qualified Business Reply Mail]{.underline}

> [Bank of America will implement use of the Four-State Barcode on all
> Courtesy Reply Mail, Business Reply Mail, and Qualified Business Reply
> Mail envelopes enclosed in its mail. All pieces will be machinable,
> automation compatible, and properly marked with a OneCode Four-State
> Barcode. This requirement is subject to certain conditions and
> exceptions as provided in the text of the NSA.]{.underline}

4.  [Discounts]{.underline}

    1.  [General Terms and Conditions]{.underline}

> [The Postal Service shall pay rate discounts in the form of refunds to
> Bank of America for improved address quality and mail processing in
> accordance with the text of the NSA. Discounts shall be calculated as
> adjustments to the rates of postage otherwise established by the DMM.
> Discounts shall be determined quarterly, over the life of the
> Agreement, based on Bank of America's actual mail volumes and address
> quality for each quarter just ended, subject to the conditions in the
> text of the NSA.]{.underline}

2.  [First Class Mail Discounts]{.underline}

    1.  [Discounts for Improved Mail Processing]{.underline}

> [Eligible mail that is sent via First-Class Mail is subject to the
> otherwise applicable First-Class Mail postage in Rate Schedule 221,
> less the discounts shown in Rate Schedule 630A for improved mail
> processing performance for letter-rated First-Class Mail
> mailpieces.]{.underline}

2.  [Discount Formula for Improved Mail Processing]{.underline}

> [The Postal Service will use the following formula to calculate the
> rate discounts Bank of America will receive pursuant to Rate Schedule
> 630A:]{.underline}
>
> [(a)]{.underline} [The Postal Service will determine the total number
> of letter-rated First-Class Mail mailpieces of Bank of America Mail
> that are read and accepted during their first pass through Postal
> Service mail sorting equipment during an applicable
> quarter.]{.underline}
>
> [(b)]{.underline} [The Postal Service will divide the number
> identified in section 630.422(a) above by the total number of
> letter-rated First-Class Mail mailpieces of Bank of America Mail that
> receive a first pass through Postal Service mail sorting equipment
> during the same quarter.]{.underline}
>
> [(c)]{.underline} [The Postal Service will subtract the baseline value
> set forth in the agreement from the percentage obtained in section
> 630.422(b) to obtain the "incremental improvement" within the meaning
> of the table in Rate Schedule 630A.]{.underline}

3.  [Discounts for Reduced Return Rates]{.underline}

> [Eligible mail that is sent via First-Class Mail is subject to the
> otherwise applicable First-Class Mail postage in Rate Schedule 221,
> less the discounts shown in Rate Schedule 630B for reduced return
> rates for letter-rated First-Class Mail mailpieces.]{.underline}

4.  [Discount Formula for Reduced Return Rates]{.underline}

> [The Postal Service will use the following formula to calculate the
> rate discounts Bank of America will receive pursuant to Rate Schedule
> 630B:]{.underline}
>
> [(a)]{.underline} [The Postal Service will identify the number of
> undeliverable-as-addressed letter-rated First-Class Mail mailpieces of
> Bank of America Mail that have been returned to the sender by the
> Postal Service, as determined through OneCode ACS, for the applicable
> quarter.]{.underline}
>
> [(b)]{.underline} [The Postal Service will divide the number
> identified in section 630.424(a) above by the total number of
> letter-rated First-Class Mail mailpieces of Bank of America Mail for
> the applicable quarter.]{.underline}
>
> [(c)]{.underline} [The percentage obtained in section 630.424(b) will
> be subtracted from the applicable baseline undeliverable-as-addressed
> rate set forth in the agreement, and the difference divided by that
> baseline undeliverable-as-addressed rate. The result, expressed as a
> percentage, will serve as the "Incremental Improvement" percentage
> used to determine the applicable rate incentive in Rate Schedule
> 630B.]{.underline}

5.  [Discounts for Reduced Forwarding Rates]{.underline}

> [Eligible mail that is sent via First-Class Mail is subject to the
> otherwise applicable First-Class Mail postage in Rate Schedule 221,
> less the discounts shown in Rate Schedule 630C for reduced forwarding
> rates for letter-rated First-Class Mail mailpieces.]{.underline}

6.  [Discount Formula for Reduced Forwarding Rates]{.underline}

> [The Postal Service will use the following formula to calculate the
> rate discounts Bank of America will receive pursuant to Rate Schedule
> 630C:]{.underline}
>
> [(a)]{.underline} [The Postal Service will identify the number of
> undeliverable-as-addressed letter-rated First-Class Mail mailpieces of
> Bank of America Mail that have been forwarded by the Postal Service,
> as determined through OneCode ACS, for the applicable
> quarter.]{.underline}
>
> [(b)]{.underline} [The Postal Service will divide the number
> identified in section 630.426(a) above by the total number of
> letter-rated First-Class Mail mailpieces of Bank of America Mail for
> the applicable quarter.]{.underline}
>
> [(c)]{.underline} [The percentage obtained in section 630.426(b) will
> be subtracted from the baseline forwarding rate set forth in the
> agreement, and the difference divided by that baseline forwarding
> rate. The result, expressed as a percentage, will serve as the
> "Incremental Improvement" percentage used to determine the applicable
> rate incentive in Rate Schedule 630C.]{.underline}

3.  [Standard Mail Discounts]{.underline}

    1.  [Discounts for Improved Mail Processing]{.underline}

> [Eligible mail that is sent via Standard Mail is subject to the
> otherwise applicable Standard Mail postage in Rate Schedules 321B or
> 322, less the discounts shown in Rate Schedule 630D for improved mail
> processing performance for letter-rated Standard Mail
> mailpieces.]{.underline}

2.  [Discount Formula for Improved Mail Processing]{.underline}

> [The Postal Service will use the following formula to calculate the
> rate discounts Bank of America will receive pursuant to Rate Schedule
> 630D:]{.underline}
>
> [(a)]{.underline} [The Postal Service will determine the total number
> of letter-rated Standard Mail mailpieces of Bank of America Mail that
> are read and accepted during their first pass through Postal Service
> mail sorting equipment during an applicable quarter.]{.underline}
>
> [(b)]{.underline} [The Postal Service will divide the number
> identified in section 630.432(a) by the total number of letter-rated
> Standard Mail mailpieces of Bank of America Mail that receive a first
> pass through Postal Service mail sorting equipment during the same
> quarter.]{.underline}
>
> [(c)]{.underline} [The Postal Service will subtract the baseline value
> set forth in the agreement from the percentage obtained in section
> 630.432(b) to obtain the "incremental improvement" percentage within
> the meaning of the table in Rate Schedule 630D.]{.underline}

3.  [Discounts for Reduced Undeliverable-As-Addressed Rates]{.underline}

> [Eligible mail that is sent via Standard Mail is subject to the
> otherwise applicable Standard Mail postage in Rate Schedules 321B or
> 322, less the discounts shown in Rate Schedule 630E for reduced
> undeliverable-as-addressed rates for letter-rated Standard Mail
> mailpieces.]{.underline}

4.  [Discount Formula for Reduced Undeliverable-As-Addressed
    Rates]{.underline}

> [The Postal Service will use the following formula to calculate the
> rate discounts Bank of America will receive pursuant to Rate Schedule
> 630E:]{.underline}
>
> [(a)]{.underline} [The Postal Service will identify the number of
> undeliverable-as-addressed letter-rated Standard Mail mailpieces of
> Bank of America Mail that have been returned by the Postal Service, as
> determined through OneCode ACS, for the applicable
> quarter.]{.underline}
>
> [(b)]{.underline} [The Postal Service will divide the number
> identified in section 630.434(a) above by the total number of
> letter-rated Standard Mail mailpieces of Bank of America Mail for the
> applicable quarter.]{.underline}
>
> [(c)]{.underline} [The percentage obtained in section 630.434(b) will
> be subtracted from the baseline undeliverable-as-addressed rate set
> forth in the agreement, and the difference divided by that baseline
> undeliverable-as-addressed rate. The result, expressed as a
> percentage, will serve as the "Incremental Improvement" percentage
> used to determine the applicable rate incentive in Rate Schedule
> 630E.]{.underline}

5.  [Rounding Convention]{.underline}

> [For the purposes of the Agreement, the following rounding convention
> will apply:]{.underline}
>
> [(a)]{.underline} [numbers expressed as percentages will be rounded to
> the nearest tenth of a percent, and]{.underline}
>
> [(b)]{.underline} [numbers expressed in dollars and cents will be
> rounded to the nearest thousandth of a cent.]{.underline}

6.  [Rates and Fees]{.underline}

> [The rates applicable to this Agreement are set forth in the following
> Rate Schedules:]{.underline}
>
> [630A]{.underline}
>
> [630B]{.underline}
>
> [630C]{.underline}
>
> [630D]{.underline}
>
> [630E]{.underline}

7.  [Expiration]{.underline}

> [This provision (Section 630) expires 3 years from the implementation
> date set by the Board of Governors.]{.underline}

8.  [Precedence]{.underline}

> [To the extent any provision of section 630 is inconsistent with any
> other provision of the Domestic Mail Classification Schedule, the
> former shall control.]{.underline}