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Number of bills and/or Notice <br />$ .115 per bill and/or notice <br />$ .145 per bill and/or notice <br />$ per bill and/or notice <br />$ per bill and/or notice <br />$ per bill and/or notice <br />SCS Services (Does Not Include Postagel <br />for 8 1/2"x11" bills or notices, simplex <br />for 8 1/2"x11" bills or notices, duplex <br />(b) except as adjusted pursuant to " 2." below, for the first year of the contract, bill <br />and/or notice stationery and envelope costs per thousand shall be: <br />$ Bill and/or notice paper <br />$ Bill and/or notice paper pre-printed <br />$ Number 10 window outside envelope <br />$ Number 9 window return envelope <br />(c) A sum representing an estimate for postage to be metered by SCS shall be advance <br />by OCTD to SCS two weeks prior to the mailing. <br />(d) A one time design charge, per side, will be $250.00 with minor revisions made in <br />the future at no additional cost. <br />(e) A one time data file set-up charge will be $100.00. <br />(fj Optional N.C.O.A. (National Change of Address) service will br $300.00 minimum. <br />2. Paper Price Increase. At the end of the first year, SCS shall have the right to <br />increase its costs for stationery and envelopes from that set forth in sub-paragraph 1.(b) above, <br />but if it does so, OCTD shall have the option to terminate this Agreement within thirty days of <br />the notice of increased prices, if these price increases are outside the normal limits established by <br />paper industry standards. If unforeseen increases or decreases in the paper industry should affect <br />the supply or price of paper products, both parties will have the right to request an adjustment in <br />stationery and envelope 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, OCTD and SCS will enter into negotiations concerning the <br />contract price set forth in IIIl.(a) above. The price reached pursuant to such negotiations shall <br />be within a price cap mutually defined by OCTD and SCS. <br />IV. CONFIDENTIALITY AGREEMENT <br />SCS and OCTD 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 />If entering into and complying with this Agreement, SCS acknowledges that it is at all <br />times performing as an independent contractor. Nothing in this Agreement shall constitute or be <br />construed as a creation of a partnership or joint venture between the parties hereto. <br />4 <br />