AUTOMATED MAILING, INC

1. Quotations: Quotations are good for thirty (30) days. Quotations are based on the cost of labor and materials on the date of the quote. If changes occur in cost of materials, labor or other costs prior to acceptance, AMI reserves the right to change the price quoted. Subsequent orders will be subject to price revision if required. Quotations do not include applicable taxes, postage, and shipping costs unless specifically stated.

2. Cancellations: Orders may be cancelled by the Client at any time by notice in writing with the understanding that AMI will be compensated in full for any work or services performed prior to cancellation, plus the cost of any goods or services purchased for the order. AMI reserves the right to impose a cancellation fee.

3. Alterations/Specifications: Prices quoted herein are based upon our understanding of the specifications submitted. If there is a change in specifications or instructions resulting in additional costs, the work performed will be billed at AMI’s prices for the additional work and the mailing date may be delayed.

4. Postage: Quotations do not include postage. Advance payment of postage is required on all orders. Postage must be provided 48 hours in advance of the mail date unless otherwise agreed upon.

5. Acceptance of Order: The Client agrees that AMI may refuse at any time to mail any copy, photographs or illustrations of any kind that in AMI’s sole judgment believes is an invasion of privacy, degrading, un-American, libelous, unlawful, profane, obscene, pornographic, tends to ridicule or embarrass, or is in bad taste, or which, in AMI’s sole judgment, is an infringement on a trade mark, trade name, service mark, or copyright belonging to others. The Client also agrees to defend and hold AMI harmless in any suit or court action brought against AMI for alleged damages, costs, photographs or illustrations that is felt by others to be degrading, libelous or harmful to their reputations, images or standing in the community or which in AMI’s sole judgment is an infringement on a trade mark, trade name, service mark or copyright belonging to others or in a suit or court action brought against AMI for actions of the Client’s employees which may occur as a result of any mailing. AMI requires written confirmation of Client’s order. This could be Client’s Purchase Order or a written acknowledgement of AMI’s signed quote.

6. Mailing Lists: Client’s mailing list(s) in AMI’s possession, for storage or otherwise, is the exclusive property of the Client and shall be used only at the Client’s instructions. Client assumes responsibility for replacement of such lists in the event of loss by fire, vandalism, theft, computer malfunction or other such causes.

7. Materials: AMI assumes in all quotations that all material provided will permit efficient handling on automated equipment and meets equipment manufacturer’s published specifications. Materials furnished that are within manufacturer’s specifications, but which are not up to acceptable operational standards due to poor folding, facing, trimming, packing, sticking together of material, insufficient leeway between enclosures and envelopes, square envelope flaps or other causes, will be subject to pricing at special rates. Client will be notified when a deficiency is discovered and approval will be obtained for handling at special rates before proceeding with work and a new delivery schedule may result. All direct mail handling and processing involves spoilage. Allowances for spoilage should be taken into consideration when ordering material. Every effort will be made to handle Client’s material with frugality and to prevent undue spoilage. Nevertheless, AMI cannot accept responsibility for shortages of material as a result of normal spoilage in processing. All stock and materials belonging to a Client will be held and stored only at the Client’s risk and the Client shall be responsible for insurance on his material. Reasonable and customary pick up and delivery charges for Client’s materials by AMI will be assessed unless otherwise agreed upon. Printer delivery tickets must accompany the material delivered and should show the number of skids or cartons, the quantity per skid or carton and the total delivery quantity. Each carton or skid must have a quantity and sample clearly visible. Each skid must have only one material version unless clearly marked and separated. AMI accepts printers’ counts until processing and assumes no responsibility for shortages discovered at that time.

8. Labels: Labels must be within equipment manufacturers’ published specifications for labeling equipment. Quoted prices assume that label placement will be in the position most advantageous to production speed, or additional charges will be billed.

9. Data Files on Electronic Media: Data files must be in a standard format. A field layout and a data dump must accompany the e-mail, disk, tape or other media format. The Client assumes sole responsibility for the integrity of the data.

10. Inserting Sequence: Effort will be made to insert material in the sequence and facing the direction the Client requests. Quoted prices assume the most advantageous production speeds and specified sequence or facing may result in additional charges being billed.

11. Overages: The Client must advise AMI of the disposition of overs in advance of the job. Overs may be returned to the Client, stored, or destroyed. Storage and delivery charges will be added when applicable and material will be automatically destroyed after 30 days unless prior arrangements are made.

12. Delivery Schedules: AMI will make every effort to meet scheduled delivery and mailing dates, but accepts no liability for failure to meet any requested delivery dates. In addition, AMI has no control over U.S. Postal Service delivery schedules and cannot guarantee when mail deposited will be delivered by the Postal Service. All orders are accepted contingent to fire, accident, act of God, mechanical breakdown or other cases beyond AMI’s control. Since the time element is an integral part of our business, quoted prices are based upon a specific set of time schedules for completion. Any requested deviation from the schedules described or agreed upon by both parties at commencement of order may alter the quoted price. Late material may affect the completion date of the order by a greater degree than the actual elapsed time the material is late.

13. USPS Acceptance: AMI will preview the specifications of all mailings for compliance with the USPS acceptance system, including presorting, weight and piece counts, address and barcode readability, tray label accuracy, and mail piece dimensions. AMI assumes no liability for any increased postage or additional costs relating to non-compliant mail.

14. Errors in Mailing: AMI shall be liable only to the extent of remailing a correction or corrected job as soon as possible to rectify the mistake and allowable damages shall be limited to the cost of the services provided by AMI. In no case is AMI liable for loss of business, implied or consequential damages.

15. Terms: AMI’s standard terms are net 30 days. If the Client has delinquent invoices, AMI reserves the right to refuse work, stop work or impose a finance charge not to exceed 18% per annum on delinquent invoices. AMI may also hold Client’s materials until payment has been satisfied.

(7/8/03)