1998 S Health - GREG C. STADERMANN and SCS DIRECT MAIL MARKETING State of NC Confidential Disclosure Agreement County of Orange - 09-15-1998-8i

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postage; sort, bundle, tray and deliver to the main branch office of the U.S. Postal Service in Fayetteville, North Carolina, all bills and/or notices in a timely manner. 4. Time. Within one to two business days of the receipt by SCS of collection information from OCHD, SCS will perform the necessary computer processing, printing and handling services described in this agreement and deliver the bills and/or notices to the U.S. Post Office, main branch office, Fayetteville, North Carolina. SCS expressly recognizes that time is of the essence. SCS will take the necessary steps to insure that OCHD's bills and/or notices, which requires bills and/or notices to go out on a daily basis, will not be interrupted. SCS shall maintain a relationship with other reliable bill and/or notice processing and mailing services to insure that no significant interruption of service occurs should SCS encounter obstacles preventing it from performing the services set forth herein at its location in Fayetteville, North Carolina. Such back up service shall be at no additional cost to OCI-1D but SCS shall notify OCl-1D immediately if it becomes necessary to use a back up service and provide OCl-ID with the details of the same. SCS will obtain confidentially agreements from such services, which are as inclusive as the confidentiality provisions agreed to by SCS, prior to SCS providing the back up service with any information from OCHD. 5. Postal. SCS will maintain at its expense the necessary postal equipment to affix postage to each of OCHD's bills and/or notices. SCS will provide OCHD with and accounting of postage chazges on a monthly basis. SCS also will maintain the necessary software essential to receive the lazgest postage discounts for which OCI-ID may qualify and shall maintain up-to- date knowledge as to all U.S. mail regulations for bulk mailings. SCS shall utilize bar coding and arrange/sort the mail to qualify for the lowest postage charge consistent with USPS's standards. SCS shall maintain the necessary documentaion and equipment so as to be able to track mail through the postal system. Further, SCS shall update zip codes for OCHD's customers with every bill and/or notice cycle. SCS shall provide OCI-ID with a monthly manifest which shows details of the total bills and/or notices printed, mailed and dollars billed to OCHD for postage and services. SCS shall also make periodic recommendations for improving mail deliverability, postage savings and reducing mail cost. 6. Supplies. SCS shall provide sufficient card stock, size 4" x 6", on which to print OCHD's bills and/or notices. SCS shall provide printing cartridges and ink for laser printers and for postage machines. SCS shall provide all necessary storage for materials used in connection with the services performed by SCS under this Agreement. Further, SCS shall maintain additional supplies stored in a facility other than that normally used for printing bills and/or notices for OCHD's customers and at a location that is readily accessible to facilitate minimum interruption of OCHD's mailings should a fire, theft or accident destroy mailing supplies at the printing facilities of SCS. SCS shall also maintain at an alternative facility such equipment, softwaze and accessories as would be necessary to continue OCI-ID's mailings within three business days or less should an accident or disaster, whether man-made or act of God, were to destroy the primary facilities normally used by SCS to print and mail OCI-ID's bills and/or notices. SCS shall implement such procedures as aze necessary to ensure that OCHD is not billed for supplies not used in connection with services under this Agreement. SCS shall maintain such records, including daily records, as are necessary to verify the use of supplies and postage by SCS in connection with service under this Agreement and shall make those records available to OCHD under reasonable notice. OCHD shall not be responsible for the cost of supplies which SCS cannot document were used pursuant to this Agreement. OCHD shall not be responsible for the cost of supplies until they aze actually used in the printing of bills and/or notices. 2