Service Overview. Incentive Lettermail. Trade-mark of Canada Post Corporation. OM Official mark of Canada Post Corporation.

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1 Service Overview Incentive Lettermail Effective January 15, 2018 Trade-mark of Canada Post Corporation. OM Official mark of Canada Post Corporation. canadapost.ca/ilmguides T455028

2 Incentive Lettermail Service Overview IMPORTANT UPDATES DESCRIPTION OF CHANGE LOCATION Amendment v1.0 Posted on November 20, 2017 Effective on January 15, 2018 Removed the requirement for signing an Agreement to access this Throughout document service. Updated to reflect 2017 prices. Section 2 Incentive Lettermail pricing When the document is amended or revised, the version number will be modified as follows: an amendment increases the first digit in the version (e.g., version 2.0, 3.0). a revision increases the second digit in the version (e.g., version 1.1, 1.2). the version number restarts at 1.0 every January of a given year. Version 1.0 January 15, 2018

3 TABLE OF CONTENTS Purpose of this Service Overview Service Overview 1 What is Incentive Lettermail Service? What is acceptable as Incentive Lettermail? What is unacceptable as Incentive Lettermail? Delivery standards Service features Mail Forwarding Return to Sender Return address Service options Do Not Forward Undeliverable Incentive Lettermail items Pricing 2 Incentive Lettermail pricing Designing 3 Designing Incentive Lettermail Measurements - Size and weight Designing requirements Preparing 4 Mail Preparation Creating an Order 5 Creating an Order (Statement of Mailing) Electronic Shipping Tools (EST) Depositing 6 Depositing the Mailing Required at time of deposit Where to Deposit Paying and Terms 7 Payment Terms and Terms and Conditions January 15, 2018 Version 1.0 Page i

4 PURPOSE OF THIS SERVICE OVERVIEW This Service Overview is an outline of the Canada Post Incentive Lettermail Customer Guide available at canadapost.ca/ilmguides. The Customer Guide forms part of the Agreement between you, the customer, and Canada Post. It explains the qualifications and other terms and conditions under which this service is provided. Be sure to use the most current version of the Customer Guide, including all amendments and other documents, which help you meet the requirements in the Agreement. Some words and expressions in this document and the Agreement have specific meanings. See Paying and Terms module, General Terms and Conditions, Section 1 Definitions or the Glossary for definitions. The Service Overview summarizes key information such as qualifying criteria, options, delivery standards, pricing, designing and mail preparation. 1 WHAT IS INCENTIVE LETTERMAIL SERVICE? Incentive Lettermail is a category of Lettermail service that consists of large volumes of mail items. It s available for customers who prepare their mail according to specific requirements. 1.1 What is acceptable as Incentive Lettermail? Incentive Lettermail is defined as mailable items that: consist of Standard and Oversize mail. These can include: letters, cards (including postcards) or similar communications, self-mailer an annual, semi-annual or quarterly report receipts or invoices (or similar document containing financial information) a notice of voting for federal, provincial or municipal events a CD or DVD (must be submitted to Canada Post for testing and approval) a flexible magnet or any other mail you choose to send which meets the applicable qualifications. To qualify as Incentive Lettermail service, mailings must: be deposited and paid for in Canada for delivery in Canada meet the Incentive Lettermail definition consist of a minimum of 1,000 machineable items. 1.2 What is unacceptable as Incentive Lettermail? Commingling is not permitted. Commingling occurs when a number of separate and notably different mailings are combined to achieve the minimum deposit. See module Paying and Terms, General Terms and Conditions with a Standing Offer Agreement, Section 24 Ownership of Mail. 1.3 Delivery standards SERVICE OVERVIEW Delivery standards are estimates of how long it will take for the mail to be delivered from the point of deposit to the destination points. Delivery standards are not guaranteed. IN BUSINESS DAYS LOCAL PROVINCIAL NATIONAL* Machineable Mail * Excludes non-major urban centres, northern regions and remote areas. For detailed information, visit Delivery Standards of the Canada Postal Guide. January 15, 2018 Version 1.0 Page 1

5 1.4 Service features A feature is provided as part of the basic service MAIL FORWARDING Items that cannot be delivered as originally addressed because the addressee has moved will be forwarded to the addressee at no extra charge while there is a Mail Forwarding request in effect. Mail bearing the name of the addressee followed by the words OR OCCUPANT or similar wording, or mail bearing a non-personalized descriptor, such as OCCUPANT, will not be forwarded. In such cases, the item will be delivered to the original destination address RETURN TO SENDER Incentive Lettermail items that are undeliverable, or if no Mail Forwarding request is in effect, will be returned to the sender at no extra charge if a Canadian return address appears on the outside of the item. When the return address is on the inside of the item, it will be returned to the customer for a fee RETURN ADDRESS If a return address is used, there must be only one return address showing and it must be Canadian. Dual return addresses are also acceptable as long as there is one Canadian return address. Canada Post does not return items to addresses outside of Canada. The return address printed on the item may vary provided the mailing originates from the same mail owner (e.g. customer number must be the same on all items). 1.5 Service options An option is a service enhancement that is not provided automatically as part of the basic service DO NOT FORWARD Do Not Forward is an option whereby an Incentive Lettermail item, which cannot be delivered as addressed because the addressee has filed a Mail Forwarding request with Canada Post, shall be returned to the sender and not forwarded to the addressee. Incentive Lettermail customers wishing to use the Do Not Forward option must: 1. Use Electronic Shipping Tools 2.0 or the Online version of EST to add the Do Not Forward option to an Order (Statement of Mailing), and 2. Apply the Do Not Forward endorsement to the front of each mail item (placed to the left and above the destination address, or in the upper left-hand corner below the return address). The Do Not Forward endorsement can be downloaded from canadapost.ca/indicia. 1.6 Undeliverable Incentive Lettermail items Items are treated as undeliverable if: the item does not bear a complete and valid address the item is addressed to a non-existent address the addressee refusing the item delivery is prohibited by law the item cannot otherwise be delivered to the address. Consult the Undeliverable Mail section of the Canada Postal Guide for more detail. January 15, 2018 Version 1.0 Page 2

6 PRICING 2 INCENTIVE LETTERMAIL PRICING To access Incentive Lettermail prices, you must meet all applicable requirements for this service, including specifications, Address Accuracy and those for mail preparation. Lettermail Price per Item Standard Other (Non-standard and Oversize) Up to 30 g Over 30 g up to 50 g Up to 100 g Over 100 g up to 200 g Over 200 g up to 300 g Over 300 g up to 400 g Over 400 g up to 500 g Single Stamp(s) $1.00 $1.20 $1.80 $2.95 $4.10 $4.70 $5.05 Stamps in booklets/coils/panes 1 $0.85 $1.20 $1.80 n/a n/a n/a n/a Meter or Postal Indicia $0.84 $1.19 $1.79 $2.91 $4.08 $4.63 $4.97 Incentive Lettermail 2 Price per Item Standard Oversize Up to 30 g Over 30 g up to 50 g Up to 100 g Over 100 g up to 500 g Machineable $0.78 $1.02 $1.64 $ $ per g over 100 g Options Do Not Forward $0.01 per item 3 Registered Mail $9.00 plus applicable Lettermail postage Signature Hard Copy After mailing: $7.25 Additional Liability Coverage 4 $2.25 per $100 (up to a maximum of $5,000) Prepaid Registered Mail Standard Other Letter Prepaid Registered Mail / Government Secure Registered Mail Up to 50 g Up to 200 g $10.20 $ With the exception of the Single Stamp(s), all stamps for items up to 30 g are issued as Permanent TM (some exceptions may apply). 2 Use of the Electronic Shipping Tools (EST) to prepare, transmit and submit an Order (Statement of Mailing) is mandatory to access Incentive Lettermail prices. Incentive Lettermail items accompanied by a manually prepared Order will be priced at the applicable Lettermail Meter or Postal Indicia prices. 3 Applicable to each item in the mailing bearing the Do Not Forward endorsement regardless of the items being returned. 4 Some conditions and exceptions apply. All prices are subject to applicable rebates, discounts, fees, surcharges, adjustments and taxes. Registered Mail is not available for Incentive Lettermail. You can find more information at the Pricing module at canadapost.ca/ilmguides. January 15, 2018 Version 1.0 Page 3

7 3 DESIGNING INCENTIVE LETTERMAIL To be eligible as Incentive Lettermail service, the items mailed must meet the criteria (content, format and physical characteristics). The Incentive Lettermail service is available for: Machineable - Standard and Oversize mail items. 3.1 Measurements - Size and weight Items within a given mailing can have different sizes, weights and thicknesses provided the items remain within the same weight category. Imperial equivalents are provided for your convenience. The longest dimension is the length, the second longest is the width. SIZE / ITEM LENGTH WIDTH THICKNESS ASPECT RATIO WEIGHT Standard* min. 5.6 in. (140 mm) 3.6 in. (90 mm) in. (0.18 mm) g (0.07 oz.) max. 9.6 in. (245 mm) 6.1 in. (156 mm) 0.2 in. (5 mm) g (1.76 oz.) Oversize min. 5.6 in. (140 mm) 3.6 in. (90 mm) 0.02 in. (0.5 mm) N/A 10 g (0.4 oz.) max in. (380 mm) 10.6 in. (270 mm) 0.8 in. (20 mm) N/A 500 g (17.6 oz.) * Square envelopes are acceptable (min. 140 mm x 140 mm x 0.18 mm and max. 156 mm x 156 mm x 5 mm). Standard cards and self-mailers must be rectangular in shape. 3.2 Designing requirements DESIGNING These requirements are intended to help you and your suppliers in creating mail items that are suitable for efficient processing by Canada Post. Machineable Mail Requirements Standard Items Oversize Items Shape Rectangular (square envelopes are acceptable) Rectangular or square Address orientation Horizontal or vertical orientation Horizontal or vertical orientation Paper No glossy finish Some requirements apply, even though coating is acceptable Graphics/colours Some requirements apply Any Sealing Envelopes: Sealed on all sides Folded self-mailers: clip or spot seal acceptable (as per specification) Must be sealed (envelopes/wrapper) Quiet zones Within and around the address block Within and around the address block Address fonts and types Some requirements apply Some requirements apply Flexibility and firmness Must be flexible May be flexible or rigid Enclosures Must meet certain requirements Must meet certain requirements Machine readability target 95% 85% More information can be found in the Designing module at canadapost.ca/ilmguides. Ensure each item is mailable and consider the following: 1. Scented items must be sealed in such a manner that prevents the scent from escaping. Similarly, liquids and powders must be packaged appropriately. A scented item produced using micro-encapsulated scent infused ink/ lacquers does not need to be sealed provided the scented area is covered or contained within the mailed item. 2. If an item contains a common allergen such as peanuts, sesame seeds, tree nuts (e.g. almonds, walnuts) or eggs, it must be packaged and labelled to minimize the potential for allergic reactions. Visit ABCs of Mailing and Non-mailable Matter in the Canada Postal Guide for more information. January 15, 2018 Version 1.0 Page 4

8 PREPARING 4 MAIL PREPARATION Proper mail preparation is important to ensure that we can process and deliver your mailing. Adjustments and/or surcharges may be applied to improperly prepared mailings. You are responsible for meeting all the requirements. See the Paying and Terms module, General Terms and Conditions - Section 5 Criteria for Qualification. Mail preparation is the process of facing and containerizing your items and labelling containers and shipping units. It helps ensure machineability of mail, protection of mail, identification of the type of mail and ease of handling. The following is a summary of the key requirements for preparing your mailing. MACHINEABLE MAIL REQUIREMENTS Container type Labelling containers Labelling shipping units STANDARD AND OVERSIZE Standard: letterflatainers (LFTs) Oversize: flats tubs (In the event lids are not available, we recommend cardboard separators be used between each level to protect your mail items) Mandatory (unless containers are in a shipping unit and the shipping unit is clearly labelled [2D barcoded labels are optional]) Mandatory You will find more information in the Preparing module at canadapost.ca/ilmguides. CREATING AN ORDER 5 CREATING AN ORDER (STATEMENT OF MAILING) An Order (Statement of Mailing) must be properly completed and transmitted electronically using the Electronic Shipping Tools (EST). Orders that are not transmitted electronically may be subject to a surcharge. There is more information on surcharges in the Pricing module at canadapost.ca/ilmguides. Delivery standards are calculated from the day of deposit (day 0) plus the number of business days required for delivery. The number of days excludes the day of mailing, weekends and statutory holidays. Weekend and statutory holiday deposits are considered deposited on the following business day. 5.1 Electronic Shipping Tools (EST) You have the option of using either the EST Online version or the EST 2.0 version. The EST software is free and can be accessed online or downloaded (EST 2.0) through the Canada Post website at canadapost.ca/newuser. For technical enquiries, call the Technical Help Line at The following is a summary of the key requirements when you create an order. Mailing Plan Import File Electronic Shipping Tools (EST) Minimum volume per deposit Sample of mail item at time of deposit Address Accuracy Order (Statement of Mailing) MACHINEABLE MAIL REQUIREMENTS Optional Mandatory (otherwise Meter or Postal Indicia Lettermail prices apply) 1,000 items (phantom pricing will apply) Not applicable Mandatory for over 5,000 items Mandatory You can find more information in the Creating an Order module at canadapost.ca/ilmguides. January 15, 2018 Version 1.0 Page 5

9 6 DEPOSITING THE MAILING Incentive Lettermail must be deposited in accordance with the requirements set out in the Agreement and its supporting documentation. If Incentive Lettermail items are deposited and do not meet the requirements, you may choose to: pay a surcharge, if applicable re-work the mailing so as to meet the requirement have the mail processed using another option, if the items qualify, or use another appropriate Canada Post service. 6.1 Required at time of deposit Each Incentive Lettermail Order (Statement of Mailing) must be accompanied by: two printed copies of the electronically prepared and transmitted Order. You are not required to complete an Agreement but must fill out an Order (Statement of Mailing) for each deposit. Your signature on the Order confirms that you have acknowledged and read the Terms and Conditions WHERE TO DEPOSIT All items must be deposited with an authorized representative at the deposit location selected on the Order (Statement of Mailing). Items cannot be deposited in street letter boxes or other mail receptacles. Daily maximum volumes of mail apply for certain types of deposit locations. RECEIPT VERIFICATION UNIT (RVU) DEPOSITING COMMERCIAL DEPOSIT CENTRES (CDC)* CORPORATE POST OFFICE* DELIVERY FACILITY LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 1 LEVEL 2 No maximum 2 shipping units** 3 shipping units** 7 shipping units** 5 containers 12 containers N/A (monotainers/pallets) * This location type is not equipped to process mail received in monotainers or pallets that are double-stacked. ** A monotainer can accommodate approximately 48 Letterflatainers (LFTs) (40 Letterflatainers with lids) or 24 Flats tubs. The Find a Deposit Location tool is available at canadapost.ca/depositlocations to help you identify the right deposit location for your mailing based on Postal Code OM, mail type and quantity. The tool will provide you more helpful information, such as the deposit location address and deposit location cut-off times. Items deposited after the deposit location cut-off times will be considered deposited on the next business day. More information can be found in the Depositing module at canadapost.ca/ilmguides. PAYING AND TERMS 7 PAYMENT TERMS AND TERMS AND CONDITIONS Understanding your agreement - Learn more about fees, flexible payment options and terms and conditions to get the most from your agreement with Canada Post. PAYMENT TERMS Paying For Your Mailing With a Standing Offer Agreement (for customers who have signed an Agreement Activation Form) TERMS AND CONDITIONS (CANADAPOST.CA/GENERALTERMS) Without a Standing Offer Agreement (for Solutions for Small Business cardholders and non-contract customers) January 15, 2018 Version 1.0 Page 6

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