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III. PAYMENT TO SCS <br />1. Initial Price. SCS will invoice OCHD monthly for all services. OCHD agrees to pay <br />SCS within 15 days of receipt of an invoice for services performed as follows: <br />(a) for the initial three-yeaz term of this Agreement, computer processing, printing, <br />handling and other labor cost together with all supplies including bill and/or notice card stock <br />shall be: <br />Annual chazges (based on numbers) each <br />Number of bills and/or notices Rate Total <br />47,000 <br />$0.10 $ 4,700 <br />Postage $0.18 $ 8,460 <br />Annual total for printing, postage and mailing $13,160 <br />(b) A sum representing an estimate for postage to be metered by SCS shall be paid by <br />OCHD to SCS two weeks prior to the mailing. <br />(c) A one time design chazge, per side, will be $250.00 with minor revisions made in the <br />future at no additional cost. There aze two cazds, four sides. Total cost will be $1,000. <br />(d) A one time data file set-up chazge will be $250.00. There are two cazds. Total cost <br />will be $500. <br />(e) Total cost for the first yeaz of this agreement will be $14,660, which includes one- <br />time charges. Subsequent annual cost for 47,000 cazd mailing and postage will be $13,160 <br />2. Paper Price Increase. At the end of the first year, SCS shall have the right to <br />increase its costs for card stock, but if it does so, OCI-ID shall have the option to terminate this <br />Agreement within thirty days of the notice of increased prices, if these price increases aze outside <br />the normal limits established by paper industry standazds. If unforeseen increases or decreases in <br />the paper industry should affect the supply or price of paper products, both parties will have the <br />right to request an adjustment in cazd stock prices during the current year. <br />3. Price Renegotiation. Within one hundred and twenty days of the end of the initial <br />term and each annual term thereafter, OCbID and SCS will enter into negotiations concerning the <br />contract price set forth in lIIl. (a) above. The price reached pursuant to such negotiations shall <br />be within a price cap mutually defined by OCHD and SCS. <br />IV. CONFIDENTIALITY AGREEMENT <br />SCS and OCHD agree to execute a confidentiality disclosure agreement in the form <br />attached hereto as Exhibit B and incorporated herein by title. <br />V. INDEPENDENT CONTRACTOR <br />4 <br />