Service Customs

1. QUOTATIONS: Subject to acceptance within 30 days. Quotations are based on the cost of services, labor and materials on the date of the quote. If changes occur in cost of materials, labor, or other costs prior to acceptance, or if the customer requires changes in the mailing schedule subsequent to acceptance, the right is reserved to change the price quoted. Subsequent orders will be subject to price revision if required. Quotations do not include applicable taxes, shipping costs, pick-up or delivery costs or fuel surcharges, when applicable, unless specifically stated. Quotations are only valid when in writing.

2. CANCELLATION: Orders may be canceled by the customer at any time by notice in writing or via e-mail with the understanding that Lake Michigan Mailers, Inc. (LMM) 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. In addition, because processing and/or mailing may require advance scheduling of equipment and labor which often cannot be replaced by other jobs, LMM reserves the right to assess a cancellation fee to reflect the opportunity costs associated with a job being canceled.

3. ALTERATIONS/SPECIFICATIONS: Quoted prices are based upon LMM's understanding of the client specifications submitted. If there is a change in specifications or instructions to the original quotation and/or job specification and these changes result in additional costs, the work performed will be billed at the current or minimum rates, and the processing and/or mailing date may be delayed.

4. VERBAL ORDERS: Written or e-mail orders are strongly recommended. Verbal orders are accepted with the provision that the final specifications will be those faxed, mailed, or e-mailed and understood by LMM at the time the work was started.

5. POSTAGE: Quotations do not include postage, unless specifically stated. LMM will notify the customer of the required postage as soon as this amount is known and will notify the customer of the date when the postage is needed in order to complete the mailing prior to the agreed upon mailing date. LMM will make every effort to provide the customer with an accurate estimate of required postage. LMM is not responsible for additional postage charges if the postage rate changes due to the design of the mail piece. Payment of postage in advance is required on all orders and is the responsibility of the customer. LMM reserves the right to hold mailings for which sufficient postage has not been paid or until postage payment has been verified. The customer will provide the postage payment in adequate time for LMM to complete the mailing prior to the previously agreed upon mail date.

6. ACCEPTANCE OF ORDER: LMM may refuse at any time to process or mail any copy, photographs or illustrations of any kind that in LMM's sole judgment is an invasion of privacy, is degrading, libelous, unlawful, profane, obscene, pornographic, tends to ridicule or embarrass, or is in bad taste, or which in LMM's sole judgment is an infringement on a trademark, trade name, service mark, or copyright belonging to others.

   The customer will defend and hold LMM harmless in any suit or court action brought against LMM by others for alleged damages, cost, expenses (including reasonable attorney's fees), liabilities or losses resulting from circumstances where LMM, acting as the customer's agent, uses copy, photographs, or illustrations that are believed by others to be degrading, libelous or harmful to their reputations, images, or standing in the community or which is an infringement on a trademark, trade name, service mark, or copyright belonging to others, or in a suit or court action brought against LMM for actions of the customer's employees which may occur as a result of any processing or mailing.

7. MAILING LISTS AND ELECTRONIC FILES: Customers mailing list (s) and/or electronic file(s) in LMM's possession, for storage, processing, mailing or otherwise, is the exclusive property of the customer and shall be used only at the customer's written instructions. LMM shall provide reasonable and prudent protection against the loss of a customer's information, in much the same manner that the customer would itself. This includes adequate backup procedures for all files and programs. LMM shall pay for the cost of replacing such files in the event of systems failure, loss by fire, vandalism, theft, or other such causes (excluding destruction of the file due to customer's negligence or willful misconduct or accident, acts of God, civil unrest, work stoppage, acts of terrorism, or other causes beyond LMM's control.), provided that the customer has a duplicate file or has the source material from which the file was compiled, and then only to the extent of the costs involved in replacing the lost file. LMM shall not be liable for compiling such file nor for any intangible or special value attached thereto.

   LMM is not responsible for the accuracy or integrity of files or other data supplied by the customer or a list broker. Unless otherwise specified in writing in advance, all rented mailing lists are provided on a one-time basis.

8. MATERIALS: LMM assumes in all quotations that all material provided will permit efficient handling on automated equipment and meets equipment manufacture'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. Customer will be notified when a deficiency is discovered and approval will be obtained for handling at special rates before proceeding with work. A new delivery schedule may result when deficient materials are used.

   LMM is not responsible for identifying errors in preprinted copy or electronic files on customer-furnished materials and/or files and assumes no liability for damages resulting from the processing and/or mailing of materials, which contain erroneous information. When performing mailings for not-for-profit customers, LMM is not responsible for content in mailed materials that may cause a mailing to fail to qualify for Nonprofit postage rates or cause a customer to lose their Nonprofit Status.

   All processing and mailing involves spoilage. Spoilage of up to three (3) percent of customer's material is typical. Allowances for spoilage should be taken into consideration in ordering material. Every effort will be made to handle customer's material with frugality and to prevent undue spoilage. Nevertheless, LMM cannot accept responsibility for shortages of material as a result of normal spoilage in processing. All stock and materials belonging to a customer will be held and stored only at the customer's risk, and the customer shall be responsible for insurance on their material.

A delivery ticket/packing slip 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 incoming carton or skid must bear an identity, item code, quantity and a sample clearly visible. Each skid/carton/container should have only one material version, unless clearly marked and separated. Multiple items should not be included within a single carton, skid or container unless noted thereon and on accompanying paperwork. LMM will apply a surcharge for any rework necessary for materials received not meeting these specifications.

LMM accepts delivery ticket/packing slip count until processing and assumes no responsibility for shortages discovered at that time. Additional charges will apply if customer requires LMM to verify printer's counts prior to processing. Customer is expected to provide LMM with sufficient inventory or adequate sources of supply to meet anticipated demand. Cost for back orders, delay notices, canceled orders, and increased customer service resulting from out of stock conditions will be billed additional to customer.

Collect shipment will be accepted by LMM only if clearance is obtained in advance, and a service charge will be added to the actual freight charges. LMM is not responsible for the condition of shipped overs, unless customer has been billed for packing and/or shipping.

Customer retains title to and the insurable interest in its materials. Because of this, LMM is held harmless for acts not of its doing that create losses. It is the responsibility of LMM to carry insurance to protect against acts or negligence on the part of its employees in the normal course of business. If specific additional insurance coverage is desired, such coverage must be specified by agreement or by separate insurance rider and premium. In such instances, the liability for losses will be limited to the agreed upon insurance amount.

A service fee may be charged if customer provided skids are non-standard in size and/or if skids are severely damaged at the time of acceptance. A service fee may be charged for the disposal of customer-provided skids. Customer may reclaim skids if arrangements are made in advance.

9. LABELS: Paper labels must be within equipment manufacturer's published specifications for labeling equipment. For paper labels as well as those that are electronically generated, quoted prices assume that label placement will be in the position most advantageous to production speed or additional charges will be billed.

10. INSERTING SEQUENCE: Effort will be made to insert material in the sequence and facing the direction the customer request, but quoted prices assume the most advantageous production speeds. Specified sequence or facing may result in additional charges being billed.

11. OVERAGES: The customer must advise LMM, in advance of the job, the disposition of overs. Overs may be returned to the customer, stored or destroyed. If items are stored or returned, applicable storage and/or delivery charges will be added. Additionally, at LMM's option and without liability to LMM, material may be automatically destroyed after 60 days if customer has failed to respond to a disposition request or failed to pay for storage starting 30 days after the processing date. Premium storage rates may be applied to old materials or materials for which disposition has not been designated.

12. DELIVERY SCHEDULES: LMM will make every reasonable effort to meet scheduled delivery and mailing date (s), but because of the many factors outside its control, accepts no liability for failure to meet scheduled date(s). In addition, LMM has no control over U.S. Postal Service, United Parcel Service or common carrier's delivery schedules and cannot guarantee when mail or shipments deposited with or released to these carriers will be delivered. The customer shall accept the date which mail or shipments were deposited with or released to these carriers as the date of delivery.

    All orders are accepted contingent to fire, accident, acts of God, mechanical breakdown, acts of terrorism or other causes beyond LMM control. Since the time element is an integral part of the LMM's business and service offering, 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. ERRORS IN PROCESSING: LMM shall be liable only to the extent of re-processing and/or re-mailing a correction or corrected job as soon as possible to rectify the mistake caused by LMM. Damages shall be limited to the value of the work performed. In no case is LMM liable for loss of business; incidental or consequential damages; or costs in excess of billing for services related to the specific job.

14. ADDRESS QUALITY AND MOVE UPDATE REQUIREMENTS: Customer is solely responsible for maintaining address accuracy and quality to the satisfaction of the United States Postal Service. Changes to an address file, to reflect changes resulting from recipient moves within the time period required by the Postal Service, is the responsibility of the customer. Data files maintained by LMM, on behalf of the customer, will only be changed to reflect move updates at the written request of the customer. The customer is responsible for providing such notice to LMM within the time period required by the Postal Service.

15. DELINQUENT INVOICES: If money is owed LMM, LMM may, at his option, withhold future mailings and/or hold the customer's list, printing or other property against payment of delinquent invoices. "Delinquent" is defined as "past the agreed or specified payment date'. After suitable credit has been established, unless otherwise specified in writing by LMM, terms are net 7 days with interest as allowed by law applied to delinquent invoices. Customers are responsible for any related collection costs, legal fees and interest.

16. BROKER/AD AGENCY/RESELLER: When contracting with an intermediary such as a broker, ad agency, reseller or licensee for work on behalf of their clients, LMM will hold the intermediary fully responsible for timely payment of invoices and for related collection costs, legal fees and interest. This will be done without regard to whether the intermediary has been paid by their client for services rendered.

17. TAXES: All amounts due for taxes and assessments will be added to the customer's invoice and are the responsibility of the customer. No tax exemption will be granted unless official proof of the customer's exemption is on file with LMM or such documentation accompanies the order. If, after the customer has paid the invoice, it is determined that more tax is due, the customer must promptly remit the required taxes to the taxing authority or immediately reimburse LMM for any additional taxes paid by LMM.

18. SERVICE: Customer file(s) presented via electronic or magnetic media must be accompanied by a record layout that properly identifies each field to be used in the addressing of the mailpiece. LMM will not accept responsibility for errors in address and/or processing information when a record layout is not provided or when the address is not presented in generally accepted data formats.

(Revised January 3, 2005)

These service customs include 18 articles on two pages.
Use of LMM's services constitutes acceptance of these Service Customs.