RULES CIRCULAR 100 1^st REVISED TITLE PAGE

(New)

Heding Truck Service, Inc.

MC-109490

______________________________

MOTOR FREIGHT RULES CIRCULAR

Naming

RULES AND REGULATIONS

AND CHARGES

Applying on

TRUCKLOAD LINE HAUL

FREIGHT ALL KINDS

BETWEEN ALL POINTS

IN THE UNITED STATES

FOR GOVERNING PUBLICATIONS, SEE ITEM 100

THIS RULES CIRCULAR APPLIES ON INTERSTATE, INTRASTATE AND FOREIGN COMMERCE

ISSUED: 10/21/05 EFFECTIVE: 11/01/05 _

ISSUED BY:

Harry M. Heding, President

P.O. Box 97

Union Center, WI 53962

Telephone: 608-462-8441 or 800-236-8441

Facsimile: 608-462-5096 or 608-462-8185

Revised wording change indicated by bold and italicized font.

The provisions herein will not result in an effect on the quality of the human environment.

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. 1^st REVISED PAGE 1

CHECK SHEET

Pages of this rules circular shown below are effective as of the date shown thereon. (* - indicates revised pages included with this filing). This check sheet will be reviewed as pages to this rules circular are revised or added.

Page No. Current Status

TITLE 1^st REVISED

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22 2^ndREVISED

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ISSUED: 10/21/05 EFFECTIVE: 11/01/05

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 2

TABLE OF CONTENTS

Page

SECTION 1-GOVERNING PUBLICATIONS AND DEFINITIONS 4

Item 100 BILLS OF LADING 4

Item 110 STANDARD TRUCKLOAD BILL OF LADING 5-7

Item 120 APPLICATION OF CIRCULAR 8

Item 130 MILEAGE GUIDE 8

Item 140 RATES AND SCHEDULES 8

Item 150 NOTICE AND AMENDMENTS 9

Item 160 CANCELING ORIGINAL AND REVISED PAGES, EXCEPT THE TITLE PAGE 9

Item 170 OTHER GOVERNING PUBLICATIONS 9

Item 180 DEFINITIONS 9

Item 180 (Continued) DEFINITIONS 10

Item 190 ABBREVIATIONS AND REFERENCE MARKS 10

Item 190 (Continued) ABBREVIATIONS AND REFERENCE MARKS 10A

SECTION 2-SCOPE OF OPERATIONS 11

Item 200 TERRITORIAL SCOPE 11

Item 205 COMMODITY LIMITATIONS 11

Item 210 HAZARDOUS MATERIALS PROVISION 11

Item 215 INTERMODAL SHIPMENTS 12

Item 220 MEXICAN SHIPMENTS 12

Item 225 REGULATED VERSUS EXEMPT 12

Item 230 INTERSTATE VERSUS INTRASTATE 12

Item 235 SHIPMENT LIMITATIONS 12

Item 240 IMPRACTICAL OPERATIONS 13

Item 245 APPOINTMENTS/PICKUP AND DELIVERY TIMES 13

Item 250 IMPORT AND EXPORT FREIGHT 14

Item 255 PICKUP AND DELIVERY SERVICE 14

Item 260 SHIPPER LOAD AND COUNT 15

Item 265 FREE TIME 15

Item 270 SUBSTITUTED SERVICE 15

Item 275 SHIPPER REQUIREMENTS 15

SECTION 3-ACCESSORIAL CHARGES 16

Item 300 APPLICATION OF ACCESSORIAL CHARGES 16

Item 305 DETENTION – VEHICLES WITH POWER UNITS 16

Item 310 DETENTION – VEHICLES WITHOUT POWER UNITS 17

Item 315 LOADING AND UNLOADING 17

Item 320 PALLET EXCHANGE 18

Item 325 EQUIPMENT ORDERED BUT NOT USED 18

Item 330 COLLECT ON DELIVERY 18

Item 335 ADDITIONAL LICENSE, PERMIT FEES, AND INBOND PERMITS 18

Item 340 RECONSIGNMENT OR DIVERSION 19

Item 345 STOP-OFFS 19

Item 345 (Continued) STOP-OFFS 20

Item 350 EXPEDITED SERVICE/EXCLUSIVE USE 20

Item 355 PROOF OF DELIVERY CHARGE 21

ISSUED: 12/26/03 EFFECTIVE: 01/01/04

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. 1st REVISED PAGE 3

TABLE OF CONTENTS (Continued)

Page

Item 360 SPECIAL SERVICES 21

Item 365 ARBITRARY CHARGE IN NEW YORK CITY AREA 21

Item 370 FUEL SURCHARGE 22

Item 375 EQUIPMENT DAMAGE CHARGES 23

Item 380 AFTER HOURS PICKUPS AND DELIVERIES BY SPECIAL REQUEST 23

Item 385 MISCELLANEOUS ACCESSORIAL CHARGES 23

SECTION 4-CLAIMS LIABILITY AND LIMITATIONS 24

Item 400 LIMITATION OF CARRIER LIABILITY 24

Item 405 PACKING OR PACKAGING – SHORTAGE 24

Item 410 SPECIAL AND CONSEQUENTIAL DAMAGES 24

Item 415 RELEASED EVALUATION/SIMPLIFIED PRICING 24

Item 420 ALTERNATIVE RATES AVAILABLE 25

Item 425 INADVERTENCE CLAUSE 25

Item 430 SPOTTED EQUIPMENT 25

Item 435 ADDITIONAL LIABILITY LIMITS 25

Item 440 PACKAGING - SHIPPER'S RESPONSIBILITY 25

SECTION 5-CLAIMS PROCESSING AND SALVAGE 26

Item 500 CARGO CLAIMS APPLICATION 26

Item 510 FILING OF CLAIMS 26

Item 510 (Continued) FILING OF CLAIMS 27

Item 520 ACKNOWLEDGMENT OF CLAIMS 27

Item 530 INVESTIGATION OF CLAIMS 27

Item 530 (Continued) INVESTIGATION OF CLAIMS 28

Item 540 DISPOSITION OF CARGO CLAIMS 28

Item 550 CLAIMS LOSS AND DAMAGE – SALVAGE 28

Item 550 (Continued) CLAIMS LOSS AND DAMAGE-SALVAGE 29

Item 560 DISPOSITION OF OVERAGE 29

Item 570 DISPOSITION OF CONTESTED CARGO CLAIMS 29

SECTION 6-COLLECTION AND PAYMENT OF FREIGHT CHARGES 30

Item 610 INVOICES 30

Item 620 COLLECTION AND PAYMENT OF CHARGES 30

Item 630 PAYMENT WITHOUT OFFSET 30

Item 640 INTEREST AND FEES ON PAST DUE ACCOUNTS 30

Item 650 THIRD PARTY BILLING 31

Item 660 PRIORITY OF FREIGHT CHARGE OBLIGATION 31

Item 670 LIEN FOR FREIGHT CHARGES 32

ISSUED: 12/26/03 EFFECTIVE: 01/01/04
RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 4

SECTION 1-

GOVERNING PUBLICATIONS AND DEFINITIONS

Item 100

BILLS OF LADING

The terms and conditions of the following bill of lading shall apply.

The terms and conditions of the Standard Truckload Bill of Lading shall apply notwithstanding the use by Shipper of any other bill of lading or shipping document. Drivers are not authorized to bind Carrier to non-conforming bills of lading and execute bills of lading with alternative terms and conditions as receipts for the shipment only.

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ISSUED: 12/26/03 EFFECTIVE: 01/01/04
RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 5

Item 110 STANDARD TRUCKLOAD BILL OF LADING

Date:.

STANDARD TRUCKLOAD BILL OF LADING

Page _______

SHIP FROM

Name:

Bill of Lading Number: ______________________

Address:

City/State/Zip:

BAR CODE SPACE

SID#:

FOB: ___

SHIP TO

CARRIER NAME: _______________________________

Name:

Location #: __________

Trailer number:

Address:

Seal number(s):

City/State/Zip:

SCAC:

CID#:

FOB: ___

Pro number:

THIRD PARTY FREIGHT CHARGES BILL TO:

Name:

BAR CODE SPACE

Address:

City/State/Zip:

Freight Charge Terms: (freight charges are prepaid unless marked otherwise)

SPECIAL INSTRUCTIONS:

Prepaid ______

Collect _____

3^rd Party _____

____ (check box)

Master Bill of Lading: with attached underlying Bills of Lading

CUSTOMER ORDER INFORMATION

CUSTOMER ORDER NUMBER

# PKGS

WEIGHT

PALLET/SLIP (CIRCLE ONE)

ADDITIONAL SHIPPER INFO

Y

N

Y

N

Y

N

Y

N

Y

N

GRAND TOTAL

CARRIER INFORMATION

HANDLING UNIT

PACKAGE

COMMODITY DESCRIPTION

QTY

TYPE

QTY

TYPE

WEIGHT

H.M. (X)

Commodities requiring special or additional care or attention in handling or stowing must be so marked and packaged as to ensure safe transportation with ordinary care.

RECEIVING

STAMP SPACE

TOTAL

Where the rate is dependent on value, shippers are required to state specifically in writing the agreed or declared value of the property as follows:

COD Amount: $ ______________________

“The agreed or declared value of the property is specifically stated by the shipper to be not exceeding __________________ per ___________________.”

Fee Terms: Collect: ___ Prepaid: ___ Customer check acceptable: ___

NOTE Liability Limitation for loss or damage on this shipment may be applicable. See 49 U.S.C. § 14706(c)(1)(A) and (B).

RECEIVED, subject to individually determined rates or contracts that have been agreed upon in writing between the carrier and shipper, if applicable, otherwise to the rates, classifications and rules that have been established by the carrier and are available to the shipper, on request, and to all applicable state and federal regulations.

The carrier shall not make delivery of this shipment without payment of freight and all other lawful charges. ________________________________________________________ Shipper Signature

SHIPPER SIGNATURE / DATE

Trailer Loaded:

Freight Counted:

CARRIER SIGNATURE / PICKUP DATE

This is to certify that the above named materials are properly classified, packaged, marked and labeled, and are in proper condition for transportation according to the applicable regulations of the DOT.

__ By Shipper __ By Driver

__ By Shipper __ By Driver/pallets said to contain __ By Driver/Pieces

Carrier acknowledges receipt of packages and required placards. Carrier certifies emergency response information was made available and/or carrier has the DOT emergency response guidebook or equivalent documentation in the vehicle.

Property described above is received in good order, except as noted.

ISSUED: 12/26/03 EFFECTIVE: 01/01/04

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 6

Item 110

STANDARD TRUCKLOAD BILL OF LADING (Continued)

STANDARD TRUCKLOAD BILL OF LADING CONTRACT TERMS AND CONDITIONS

§ 1. (a) The carrier or party in possession of any of the property herein described shall be liable as at common law for any loss thereof or damage thereto, except as hereinafter provided.

(b) No carrier or party in possession of all or any of the property herein described shall be liable for any loss thereof or damage thereto or delay caused by the act of God, the public enemy, the authority of law, or the act or default of the shipper or owner, or for natural shrinkage. Except in case of negligence of the carrier or party in possession (and the burden to prove freedom from such negligence shall be on the carrier or party in possession), the carrier shall not be liable for loss, damage, or delay occurring while the property is stopped and held in transit upon the request of the shipper, or resulting from a defect or vice in the property.

§ 2. (a) No carrier is bound to transport said property in time for any particular market or otherwise than with reasonable dispatch. Every carrier shall have the right in case of physical necessity to forward said property by any carrier or route between the point of shipment and the point of destination.

(b) In all cases not prohibited by law, where a lower value than actual value has been represented in writing by the shipper or has been agreed upon in writing as the released value of the property as determined by the classification or tariffs upon which the rate is based, such lower value plus freight charges if paid shall be the maximum amount to be recovered, whether or not such loss or damage occurs from negligence.

§ 3. (a) As a condition precedent to recovery, claims must be filed in writing with a participating carrier within nine months after delivery of the property or in the case of failure to make delivery within 9 months after a reasonable time for delivery has elapsed.

(b) Suits shall be instituted against any carrier only within two years and one day from the day when notice in writing is given by the carrier to the claimant that the carrier has disallowed the claim or any part or parts thereof specified in the notice. Where claims are not filed or suits are not instituted thereon in accordance with the foregoing provisions, no carrier hereunder shall be liable, and such claims will not be paid.

(c) Any carrier or party liable on account of loss of or damage to any of said property shall have the full benefit of any insurance that may have been effected upon or on account of said property, so far as this shall not avoid the policies or contracts of insurance: Provided, That the carrier reimburse the claimant for the premium paid thereon.

§ 4. (a) Property not accepted by the consignee, after notice of the arrival of the property at destination has been duly sent or given, may be kept subject to the tariff charge for storage and to carrier's responsibility as warehouseman, only, or at the option of the carrier, may be stored in a public or licensed warehouse at the cost of the owner, and there held without liability on the part of the carrier, and subject to a lien for all freight and other lawful charges, including a reasonable charge for storage.

(b) Where nonperishable property is refused at destination by the consignee or where the consignee fails to received it within 15 days after notice of arrival shall have been duly sent or given, the carrier may sell same at public auction to the highest bidder, at such place as may be designated by the carrier.

(c) Where perishable property which has been transported to destination and the consignee or party entitled to receive it has failed to receive it promptly, the carrier may, in its discretion, to prevent deterioration, sell the same to the best advantage at private or public sale.

(d) Where the procedure provided for in the two paragraphs last preceding is not possible, it is agreed that nothing contained in said paragraphs shall be construed to abridge the right of the carrier at its option to sell the property under such circumstances and in such manner as may be authorized by law.

(e) The proceeds of any sale made under this section shall be applied by the carrier to the payment of freight, demurrage, storage, and any other lawful charges and the expense of notice, advertisement, sale, and other necessary expense and of caring for and maintaining the property, if proper care of the same requires special expense, and should there be a balance it shall be paid to the owner of the property sold hereunder.

§ 5. No carrier hereunder will carry or be liable in any way for any documents, specie, or for any articles of extraordinary value not specifically rated in the published classifications or tariffs unless a special agreement to do so and a stipulated value of the articles are indorsed hereon.

ISSUED: 12/26/03 EFFECTIVE: 01/01/04

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 7

Item 110

STANDARD TRUCKLOAD BILL OF LADING (Continued)

STANDARD TRUCKLOAD BILL OF LADING CONTRACT TERMS AND CONDITIONS

§ 6. Every party, whether principal or agent, shipping explosives or dangerous goods, without previous full written disclosure to the carrier of their nature, shall be liable for and indemnify the carrier against all loss or damage cased by such goods, and such goods may be warehoused at owner's risk and expense or destroyed without compensation.

§ 7. (a) The consignor or consignee shall pay the freight and all other lawful charges accruing on said property. The consignor shall be liable for the freight and all other lawful charges unless the consignor stipulates, by signature, in the place provided for that purpose on the face of the bill of lading the carrier shall not make delivery without requiring payment of such charges and the carrier, contrary to such stipulation, shall make delivery without requiring such payment.

(b) Consignee becomes liable for freight charges upon receipt unless the consignee is an agent only and has no beneficial title in said property; and prior to delivery has notified the delivering carrier of these facts.

(c) Nothing herein shall limit the right of the carrier to require at time of shipment the prepayment or guarantee of the charges. If upon inspection it is ascertained that the articles shipped are not those described in this bill of lading, the freight charges must be paid upon the articles actually shipped.

§ 8. If this bill of lading is issued on the order of the shipper, or his agent, in exchange or in substitution for another bill of lading, the shipper's signature to the prior bill of lading as to the statement of value or otherwise, or election of common law or bill of lading liability, in or in connection with such prior bill of lading, shall be considered a part of this bill of lading as fully as if the same were written or made in or in connection with this bill of lading.

§ 9. (a) All surface transportation provided under this bill shall be subject to federal statute and common law otherwise applicable to regulate interstate shipments. U.S. statutes and regulations shall apply unless otherwise waived by signed written agreement.

(b) If all or any part of said property is carried by water, and the loss is carried by water and loss, damage, or injury to said property occurs while it is in the custody of the carrier by water, the liability of such carrier shall be determined by the applicable bill of lading and under laws and regulations applicable to transportation by water.

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. 1^ST REVISED PAGE 8

Item 120

APPLICATION OF CIRCULAR

Each provision of this rules circular shall apply to each transportation agreement entered into by carrier unless expressly waived in a signed, written agreement.

Item 130

MILEAGE GUIDE

Where rates are set forth in cents per mile or other calculation based on mileage, distances shall be determined from origin to destination via intermediate points as specified by the Shipper utilizing the most current edition of the following mileage guide:

PC Miler - ( Practical Route Mileage-53” Trailer)

ALK Associates, Inc., Agent

Item 140

RATES AND SCHEDULES

The rules published herein are applicable to all shipments transported by Carrier’s unless expressly waived in a signed bilateral contract pursuant to 49 U.S.C. 14101(b). Rates and schedules may be published in rate catalogues, on a shipper specific basis or pursuant to a spot market rate quotation.

Unless otherwise provided, rates herein include pick-up and delivery service within the limits of cities, towns or villages from and to which rates apply. Such pick-up and delivery service will only be made at points directly accessible to carrier's vehicle and includes loading and unloading of the shipment to and from the vehicle unless otherwise provided. The rates shown shall be applied to the gross weight of the lading. For purposes of computation of gross weight, it shall include all product, packaging, tare and pallet weight. No shipment, or combination of shipments shall exceed a combined gross weight of 45000 pounds.

To determine the final billing on each freight bill the total of all applicable rates, as

defined within this contract and it's supporting schedules, shall be computed on

each load, including any and all accessorial charges and applicable fuel surcharges.

Once the total charge has been determined it shall be rounded up to the nearest even

$1.00 increment.

ISSUED: 10/21/05 EFFECTIVE: 11/01/05

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 9

Item 150

NOTICE AND AMENDMENTS

Upon written request, Carrier will provide its customers and shippers with copies of

all applicable rules circulars and rates.

Item 160

CANCELING ORIGINAL AND REVISED PAGES, EXCEPT THE TITLE PAGE

When this rules circular is formally amended by revised pages, the cancellation of prior pages will be effected by means of this Item. A revised page will not show a cancellation notice. Revisions of each page will be filed in numerical sequence. Except where a specific cancellation is shown on a new revised page, a revised page cancels any and all uncancelled revised or original pages, or uncancelled portions thereof, which bear the same page number (see EXCEPTION). For example: “1st Revised Page 10" for a particular shipper will have the effect of canceling Original Page 10, “5th Revised Page 12" will have the effect of canceling 4th Revised Page 12.

Item 170

OTHER GOVERNING PUBLICATIONS

This tariff is governed, except as otherwise provided herein, by the following described tariffs, and by supplements or loose-leaf page amendments thereto successive issues thereof:
TITLE OR KIND OF TARIFF	ISSUING AGENT	ICC DESIGNATION
Mileage Guide	PC*Miler –(Practical Route Mileage and Latest Available Version) ALK Associates, Inc., Agent	ICC ALKP 1001-E
Hazardous Materials	American Trucking Associations, Inc., Agent	ICC ATA 111

Item 180

DEFINITIONS

(A) A shipment is a tender of freight received from one consignor, at one time, at one place, destined to one consignee at one location, and covered by one bill of lading.

(B) Carrier shall be named on the bill of lading as the origin carrier of all shipments.

ISSUED: 12/26/03 EFFECTIVE: 01/01/04

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 10

Item 180 (Continued)

DEFINITIONS

(C) Unless arranged or agreed upon in writing prior to shipment, carrier is not bound to transport a shipment by a particular schedule or in time for a particular market, but is responsible to transport a shipment with reasonable dispatch, as that term is defined at common law. Carrier shall not be responsible for special or consequential damages resulting from delayed delivery.

(D) Spot rate shall mean a rate agreed upon by only shipper and carrier as applicable to a single shipment or, if in writing, a limited number of shipments representing a continuous number of shipments arranged at a single time with a single offer and a single acceptance.

(E) The term “holidays” shall mean the following days:

New Year’s Day Independence Day Thanksgiving Day

Memorial Day Labor Day Christmas Day

Christmas Eve Day

and any other day officially observed as a Holiday by the carrier at the point where

the service is performed.

When the holiday falls on Sunday, the following Monday will be considered as the

holiday.

(F) Loaded miles are the miles traveled by the vehicle used in performing the transportation

service from point of origin to point of destination, and including any and all out of route

miles incurred due to stop offs, reconsignments, etc. The applicable mileage shall be

determined by using mileage guide as referred to in Item 170 above.

Item 190

ABBREVIATIONS AND REFERENCE MARKS

Explanation of abbreviations and reference marks:

@ = Addition

^ = Increase

< = Reduction

* = Change in wording which results in neither increase nor reduction

(D) = For any mileage not shown, use next greater mileage

VMW = Volume minimum weight

FS = Full Service - Loading and unloading included in rate

N/A = Not applicable

ISSUED: 12/26/03 EFFECTIVE: 01/01/04

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 10A

Item 190 (Continued)

ABBREVIATIONS AND REFERENCE MARKS

FMCSA ........................................................................... Federal Motor Carriers Safety Administration

STB ................................................................................ Surface Transportation Board

LB ................................................................................... Pound or pounds

LTL ................................................................................. Less-than-truckload

M ..................................................................................... Thousand

MF ................................................................................... Motor freight

NOS ................................................................................ Not otherwise specified herein

TL ................................................................................... Truckload

STBOL ............................................................................ Standard Truckload Bill of Lading

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RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 11

SECTION 2-

SCOPE OF OPERATIONS

Item 200

TERRITORIAL SCOPE

Carrier is authorized by the Federal Motor Carrier Safety Administration (FMCSA) in Docket No. MC-109490, Sub 30 to transport:

General Commodities

Carrier holds extra-provincial authority to transport shipments from and to the following Canadian provinces:

Ontario, Canada

Item 205

COMMODITY LIMITATIONS

Carrier does not hold out to transport jewelry, objects d’art, currency, documents, items of unusual value or rare metals. Unless otherwise indicated herein or agreed to by contract, Carrier does not hold out to provide temperature controlled service.

Item 210

HAZARDOUS MATERIALS PROVISION

Shipper accepts all U.S. Department of Transportation requirements governing placarding of hazardous material. Unless otherwise noted, rates published by carrier do not include services for hazardous materials.

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RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. 1^ST REVISED PAGE 12

Item 215

INTERMODAL SHIPMENTS

Carrier does not participate in the Uniform Intermodal Interchange Agreement (UIIA).

Item 220

MEXICAN SHIPMENTS

Carrier does not accept liability for loss or damage to shipments under transport in the Republic of Mexico. Carrier participates in international shipments originating or destined to Mexico on a combination of rates basis notwithstanding any arrangements for through trailer movements. Shippers are advised that liability for cargo loss in the Republic of Mexico differs from U.S. law (49 U.S.C. 14706) and the special arrangements with the Mexican carrier participating in any transborder movement is not the Carrier’s responsibility.

Item 225

REGULATED VERSUS EXEMPT

The rules set forth in this Circular shall apply to shipments exempt from economic regulation as well as shipments subject to the jurisdiction of the FMCSA. Liability for loss, damage and delay shall be governed by 49 U.S.C. 14706 (the Carmack Amendment).

Item 230

INTERSTATE VERSUS INTRASTATE

The rules set forth in this Circular shall apply to all shipments handled by Carrier regardless of the origin or destination.

Item 235

SHIPMENT LIMITATIONS

Carrier shall not be required to accept for transportation any truckload shipment which exceeds 45000 pounds or which occupies more than the full visible capacity of the trailer which is provided.

ISSUED: 10/21/05 EFFECTIVE: 11/01/05
RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 13

Item 240

IMPRACTICAL OPERATIONS

Nothing in this rules circular shall require the carrier to perform pick-up or delivery service at any location from or to which it is impracticable, through no fault or neglect of the carrier to operate vehicles because of:

(A) The condition of roads, streets, driveways, or alleys;

(B) Inadequate loading or unloading facilities; or

(C) Riots, Acts of God, the public enemy, the authority of law, strikes or labor

unrest, the existence of violence, or such possible disturbances as to

create reasonable apprehension of danger to person or property.

(D) It shall be the shipper's responsibility to load the shipment in conformance with

all State and Federal regulations including, but not limited to, proper marking

and placarding; proper packaging; securing of load; and compliance of the

weight laws. Because of non-compliance with any State and/or Federal law

resulting from Shipper's failure to comply with same, the shipper shall be liable

for any and all cost incurred by carrier in bringing shipment into compliance.

Delays shall be billed at the rate of $50 per hour with a minimum charge of $50.00, and

extra miles traveled shall be billed at $1.50 per mile. All other costs shall be billed at

actual cost.

Item 245

APPOINTMENTS/PICKUP AND DELIVERY TIMES

Pick-ups and deliveries shall be made between 7:00 a.m. and 5:00 p.m., local time Monday through Friday, excluding Holidays. Appointments shall be made at no charge. Carrier shall not be liable for late deliveries or unkept appointments unless such late delivery or unkept appointment is beyond carrier’s duty of reasonable dispatch. Consignee shall facilitate prompt unloading in the event of missed appointments.

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ISSUED: 12/26/03 EFFECTIVE: 01/01/04

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 14

Item 250

IMPORT AND EXPORT FREIGHT

(1) Limitation of Carrier’s Liability for Proper Customs Clearance. Carrier assumes no responsibility for insuring or otherwise providing for clearance of merchandise through or inspection by Mexican or Canadian Customs. Carrier does not represent and specifically disclaims any knowledge or expertise in proper customs clearance and inspection matters. Carrier is not responsible for the acts or omission of the Mexican or the Canadian Customs Agent or its affiliated Freight Forwarder that may be selected for the purpose of clearing shipper’s merchandise through Customs. Carrier will serve merely as a liaison between shipper and the Mexican or Canadian Customs Agent (and the Customs Agents’ Freight Forwarder) at shipper’s request and only as a convenience to shipper. Carrier or party in possession shall not be liable for loss, damage, deterioration of the freight or delay in delivery due to the duration of the period required by customs clearance or inspection.

(2) Trailer Rental - Mexican Shipments. The charge for trailer rental on shipments destined for Mexico will be $250.00 per day from the time of interchange at the U.S./Mexican border until returned. The calculation of time starts when shipments are tendered to the forwarding agent.

(3) Carrier assumes no cargo loss responsibility for shortage or damage to shipments while in the Republic of Mexico. Clear bills of lading showing safe and damage-free delivery between the U.S./Mexican borders at the pickup or delivery points in the U.S. shall be evidence of Carrier’s proper discharge of its cargo responsibility.

Item 255

PICKUP AND DELIVERY SERVICE

The rates named herein include pickup or delivery at all points within the limits of the cities, towns, villages and other points from and to which rates apply, but each shipment will include only one pickup and one delivery.

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ISSUED: 12/26/03 EFFECTIVE: 01/01/04

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 15

Item 260

SHIPPER LOAD AND COUNT

All shipments shall be loaded by the shipper and unloaded by the consignee. Carrier’s drivers are instructed to sign bills of lading as shipper load and count or “SLC”. Inadvertent omission of this notation shall not result in a presumption of carrier liability for shortage or damage (in the absence of upset or accident) where the driver was either not present or not allowed to observe the loading and unloading.

Item 265

FREE TIME

Carrier shall allow 2 hours (120 minutes) of free time both for loading and unloading for vehicles with power units and drivers, except that no free time is allowed those instances where trailers are dropped at the dock.

Carrier shall allow 8 hours of free time both for loading and unloading of spotted trailers. Such time shall commence from the time the trailer is spotted or from the time the trailer was requested to be spotted, whichever is later, but Saturdays, Sundays or holidays shall not be included in the calculation of free time.

Item 270

SUBSTITUTED SERVICE

For its operating convenience, carrier reserves the right to hire other carriers or qualified subcontractors to provide all or part of given movements. Carrier agrees to protect the rates set forth herein when substituted services are provided and warrants that all terms, conditions, duties and obligations owed to shipper by this circular, bill of lading, and/or contract will be provided.

Item 275

SHIPPER REQUIREMENTS

Except in cases of emergency, the shipper shall provide carrier with written instructions

(whether by fax, mail, e-mail or EDI) covering all orders given to carrier. Said written

instructions shall include any and all information necessary for carrier to have in order that

said pickup and delivery can be made without unnecessary delays.

In the case of an emergency, verbal directions may be given by the shipper to carrier.

However, all verbal instructions must, at the earliest convenience, be followed up with

written confirmation as outlined above.

ISSUED: 12/26/03 EFFECTIVE: 01/01/04

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. 1^ST REVISED PAGE 16

SECTION 3-

ACCESSORIAL CHARGES

Item 300

APPLICATION OF ACCESSORIAL CHARGES

In addition to the line haul or base rate for any shipment and unless otherwise agreed in writing, the following accessorial charges shall apply and shall be reflected on the Carrier’s invoice for services rendered.

Item 305

DETENTION – VEHICLES WITH POWER UNITS

(A) This item applies on shipments when the carrier’s vehicles with driver and power units are delayed or detained beyond the free time provided for herein, (see Item 265), at time of delivery to the consignee or at time of pick-up at the consignor’s place of business when such delay is not the fault of carrier.

(B) Charges for detention will be billed to the party responsible for paying the freight charges.

(C) When computing time, the beginning time shall be the time the driver notifies the shipper or consignee of driver’s arrival and that the trailer is available for loading or unloading, as the case may be, but in no case shall time commence prior to the time of any appointment or the actual time of loading or unloading, whichever is first.

(D) If a vehicle is both unloaded and reloaded, each transaction will be considered separately and free time shall apply to each separately.

(E) When delay occurs beyond free time, the charge for detention shall be $100.00 per hour or fractions thereof. No free time is allowed for spotted trailers as outlined in Item 265, therefore the $100.00 detention charge is applicable immediately upon agreed arrival time.

(F) Carrier shall give shipper or consignee the opportunity of signing the detention records and the shipper or consignee is to make any corrections to these records at the time. If shipper or consignee refuses to sign these records, carrier’s records will govern.

ISSUED: 10/21/05 EFFECTIVE: 11/01/05
RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. 1^ST REVISED PAGE 17

Item 310

DETENTION – VEHICLES WITHOUT POWER UNITS

(A) This item applies when carrier spots a trailer at the facilities of the shipper or consignee for the loading or unloading of shipments upon the request of shipper, but neither this Item nor detention under any other term or condition shall apply if the carrier spots the trailer for carrier’s convenience with or without the authorization of shipper or consignee.

(B) Time shall commence with the spotting of the trailer and shall end when carrier is notified by the shipper or consignee that the trailer is available for removal from the premises of the shipper or consignee.

(C) If a trailer is both unloaded and re-loaded, an additional two (2) hours free time shall be allowed.

(D) After expiration of free time as provided herein, charges for delaying the trailer beyond free time shall be $75.00 per 24 hour period or fraction thereof.

Item 315

LOADING AND UNLOADING

Rates in this rules circular contemplate loading of the freight by the shipper and the unloading of freight by the consignee, except that if the shipper or consignee requests and carrier furnishes outside labor to load or unload the vehicle, all charges for such outside labor are to be paid by the shipper or consignee, who will be billed for actual time of outside labor. If the driver is required to assist with loading and/or unloading, a charge of $150.00 per occurrence will be assessed in addition to all other applicable charges. All charges for additional labor shall be agreed to in writing at the time services are provided.

THIS SPACE INTENTIONALLY LEFT BLANK.

ISSUED: 10/21/05 EFFECTIVE: 11/01/05

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. 1^ST REVISED PAGE 18

Item 320

PALLET EXCHANGE

In those instances where a party requests carrier perform pallet exchange services,

said service will be performed by carrier at a charge of $10.00 per pallet in addition to all

other applicable rates and charges. Requests for pallet exchange service must be noted

on the bill of lading at the time of pick-up by carrier. Charges for this service will be billed

to the party paying the freight charges.

Item 325

EQUIPMENT ORDERED BUT NOT USED

Where call-on-demand service is requested and then canceled within twenty-four (24) hours of scheduled pick-up, shipper shall pay $100.00 for equipment ordered but not used, plus $1.35 per mile for all out of route miles incurred by carrier in positioning equipment for canceled pick-up. Applicable fuel surcharge applies on the mileage charge.

Item 330

COLLECT ON DELIVERY

Carrier does not hold out to provide a collect on delivery service. Carrier’s drivers are not authorized to accept bills of lading which require the consignee to pay the driver in cash or by check for the goods transported as a precondition of delivery. If a collect on delivery shipment is inadvertently accepted and delivered without obtaining payment or if payment is stopped on uncertified funds, shipper’s sole recourse shall be to the consignee.

Item 335

ADDITIONAL LICENSE, PERMIT FEES, AND INBOND PERMITS

Whenever any additional license or permits are required, such as but not limited to, foreign commerce or customs fees, the charges for same shall be added to the freight invoice.

Shipments moving under U.S. Customs Bond will be subject to a charge of $100.00 for handling each shipment.

ISSUED: 10/21/05 EFFECTIVE: 11/01/05
RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. 1^ST REVISED PAGE 19

Item 340

RECONSIGNMENT OR DIVERSION

A request for the reconsignment or diversion of a shipment will be subject to the following definitions, conditions and charges:

(A) A request for reconsignment or diversion must be confirmed in writing, which shall include facsimile transmissions.

(B) A reconsignment prior to movement of a shipment shall bear the rate that would otherwise have applied if the shipment was originally scheduled for movement to the final destination.

(C) A diversion en route shall bear a charge of $100.00 for each shipment reconsigned or diverted. Charges from origin to point of reconsignment or diversion shall be determined on the basis of the distance from origin to final destination via the reconsignment or diversion point.

(D) If the shipment is returned to the origin point, the rate to be applied will be the applicable rate to the most distant point actually traveled in addition to the mileage rate from same back to point of origin.

Item 345

STOP-OFFS

The following provisions govern shipments accorded additional stops in transit to partially load or unload, except as otherwise specifically provided.

(A) Shipments received from one consignor at one point at one time and covered by one bill of lading, may be stopped in transit for partial loading and/or unloading only at points within the scope of carrier’s operations or as otherwise agreed by carrier.

(B) The party or parties authorized and designated by the shipper to accept or tender freight at a point or place of stop-off may be the same or other than the billed consignee.

(C) The bill of lading shall designate the following:

(1) Stop-off point or points and places.

(2) The weight, quantities, markings, and description of articles to be loaded

or unloaded.

(3) The name and address of the party authorized to tender freight or to

accept freight for unloading at point of stop-off.

(D) The driver of the vehicle shall obtain in writing a statement such as a notation on the freight bill or delivery receipt of the quantity and description of the portion of the shipment unloaded at each stop-off point or on the bill of lading.

ISSUED: 10/21/05 EFFECTIVE: 11/01/05
RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. 1^ST REVISED PAGE 20

Item 345 (Continued)

STOP-OFFS

(E) Stop-offs for partial loading or unloading will not be permitted on shipments moving on which Section 7 of the bill of lading has been executed.

(F) The substitution of freight for that originally loaded or any exchange of contents at a point or place of stop-off may be permitted if agreed to with shipper and noted on the bill of lading.

(G) Freight charges on a shipment stopped to partially load or unload must be prepaid or guaranteed by the shipper. If not prepaid, the shipper must show on the bill of lading the name of one party from whom the entire freight charges, including the stop-off charges, shall be collected, which must be a party to whom a portion of the shipment is to be delivered.

(H) The rate that shipper shall pay for carrier’s stop-off service shall be

$75.00 for first stop, $100.00 for second stop, and $125.00 for each additional

stop in transit.

(I) Transportation charges, other than the charges for the stop-off service shall be assessed at the rate applicable from point of origin, through all stop off points, to final destination.

Item 350

EXPEDITED SERVICE/EXCLUSIVE USE

Carrier is not bound to transport property in any particular vehicle in time for any particular market other than to transport merchandise with reasonable dispatch. Carrier is not responsible for any loss which might be incurred as a result of special or consequential damages.

Unless shipper makes arrangements for team drivers or special relays, shipper understands that truckload shipments will be transported from origin to destination by a single driver in accordance with the U.S. Department of Transportation hours of service requirements.

When carrier is requested by consignor or consignee to provide expedited or team service an additional charge of $1.00 per mile will be assessed on line haul charges only to the party making the request.

The bill of lading must be noted “Carrier requested to provide expedited or team service.”

These charges will be in addition to all other applicable charges.

ISSUED: 10/21/05 EFFECTIVE: 11/01/05
RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. 1^ST REVISED PAGE 21

Item 355

PROOF OF DELIVERY CHARGE

Proof of Delivery Charge - A charge of $25 will apply for providing proof of

delivery on shipments, more than 6 months old.

Item 360

SPECIAL SERVICES

(A) EMPTY MILES AT SHIPPER'S CONVENIENCE

When carrier agrees to relocate revenue equipment at the request of consignor or consignee for shipper’s or consignee’s convenience, a charge of $1.35 per mile will be billable to the consignor or consignee making the request. Empty miles will be calculated from empty equipment origin to point of equipment utilization based upon the applicable mileage guide. Carrier will notify shipper of the location of subject equipment prior to movement. Applicable fuel surcharge applies.

(B) OTHER SPECIAL SERVICES

Any and all other services rendered as a special request by the shipper, and not specifically covered elsewhere within the Tariff, shall be billed at actual cost, with a minimum charge of not less than $10. These services may include, but are not limited to (1) the preparation of “blind bill of ladings”; (2) the faxing, by the driver, of “documents to the shipper or other location specified by the shipper; (3) the “scaling of loads” to determine actual product weight; and (4) “any and all other special services” which may, from time to time, be requested by shipper.

Item 365

ARBITRARY CHARGE IN NEW YORK CITY AREA

For shipments originating at or destined to New York City, NY, or Long Island, NY area (Those areas that have a zip code beginning with the following three (3) digits: 100, 101, 102, 103, 107, 111, 112, 115, 116, 117, 118, and 119) a surcharge of $300.00 shall apply.

THIS SPACE INTENTIONALLY LEFT BLANK.

ISSUED: 10/21/05 EFFECTIVE: 11/01/05

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. 2^ND REVISED PAGE 22

Item 370

FUEL SURCHARGE

This schedule will be used to compute fuel surcharge additions or subtractions to the Carrier’s base mileage rate.

Effective date will be on the first Monday of each week, based on that date’s ICC Fuel Index (National Average-Phone number 202-586-6966.) If the ICC Index is not published on the appropriate Monday because of a holiday, Tuesday’s Index will be used with an effective date delay of one working day.

PRICE PER GALLON	%ADJUSMENT TO RATE	PRICE PER GALLON	%ADJUSMENT TO RATE
$.900 - .959	-3%	2.580 – 2.639	24%
.960 – 1.019	-2%	2.640 – 2.699	25%
1.020 – 1.079	-1%	2.700 – 2.759	26%
1.080 – 1.139	0%	2.760 – 2.819	27%
1.140 – 1.199	1%	2.820 – 2.879	28%
1.200 – 1.259	2%	2.880 – 2.939	29%
1.260 – 1.319	3%	2.940 – 2.999	30%
1.320 – 1.389	4%	3.000 – 3.059	31%
1.390 – 1.459	5%	3.060 – 3.119	32%
1.460 – 1.529	6%	3.120 – 3.179	33%
1.530 – 1.599	7%	3.180 – 3.239	34%
1.600 – 1.669	8%	3.240 – 3.299	35%
1.670 – 1.739	9%	3.300 – 3.359	36%
1.740 – 1.799	10%	3.360 – 3.419	37%
1.800 – 1.859	11%	3.420 – 3.479	38%
1.860 – 1.919	12%	3.480 – 3.539	39%
1.920 – 1.979	13%	3.540 – 3.599	40%
1.980 – 2.039	14%	3.600 – 3.659	41%
2.040 – 2.099	15%	3.660 – 3.719	42%
2.100 – 2.159	16%	3.720 – 3.779	43%
2.160 – 2.219	17%	3.780 – 3.839	44%
2.220 – 2.279	18%	3.840 – 3.899	45%
2.280 – 2.339	19%	3.900 – 3.959	46%
2.340 – 2.399	20%	3.960 – 4.019	47%
2.400 – 2.459	21%	4.020 – 4.079	48%
2.460 – 2.519	22%	4.080 – 4.139	49%
2.520 – 2.579	23%	4.140 – 4.199*	50%

*For computation of Fuel Surcharge beyond the shown schedule, increase the Fuel Surcharge by 1 percentage point, for each additional 6-cent increase in fuel price index.

ISSUED: 10/21/05 EFFECTIVE: 11/01/05

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. 1^ST REVISED PAGE 23

Item 375

EQUIPMENT DAMAGE CHARGES

Where a carrier's trailer equipment is spotted for the consignor's convenience at point of origin or for the consignee's convenience at point of destination, the consignor and consignee shall be responsible for the care and custody of said equipment while in their respective possession and shall return same, ordinary wear and tear excepted. Failure of the consignor, consignee, or their respective agents and spotting service to note trailer damage at time of tender shall be prima facie evidence that same was spotted in good condition. Consignor and/or consignee shall be liable for the repair cost to any trailer damaged while spotted at their facility. Such damage shall be noted by carrier personnel at time of pickup and invoices for repairs shall be accompanied by supporting documents.

Item 380

AFTER HOURS PICKUPS AND DELIVERIES BY SPECIAL REQUEST

Carrier will make pickups and deliveries on weekends, holidays, and after hours by special

request for an additional charge of $350.00 per request, in addition to all other applicable

charges.

Item 385

MISCELLANEOUS ACCESSORIAL CHARGES

Over dimensional and overweight shipments which require permits will be subject to a surcharge of $400.00 per permit plus the cost of any special license or permit required.

Any and all other services rendered as a special request by the shipper, and not specifically

covered elsewhere with the Tariff, shall be at actual cost, with a minimum charge of not less

than $10. These services may include, but are not limited to, (1) the preparation of "blind

bill of ladings"; (2) the faxing, by the driver, of "documents to the shipper or other location

as specified by the shipper"; (3) the "scaling of loads" to determine actual product weight;

and (4) "any and all other special services" which may, from time to time, be requested by

Shipper.

THIS SPACE INTENTIONALLY LEFT BLANK.

ISSUED: 10/21/05 EFFECTIVE: 11/01/05

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 24

SECTION 4-

CLAIMS LIABILITY AND LIMITATIONS

Item 400

LIMITATION OF CARRIER LIABILITY

Carrier will not be liable to the owner of property for loss or delay caused by (1) an act of default of the shipper, owner or consignee; (2) an Act of God, the public enemy, authority of law, quarantine, embargo, riot, strike, perils of navigation, or hazard and danger incident to a state of war; and (3) freezing or spoiling of any perishable goods or property or for natural shrinkage. Carrier shall not be liable for any special, incidental, indirect or consequential damages (including without limitation lost profits or business opportunity) or punitive or exemplary damages incurred or suffered by the shipper as a result of overage, shortage or damage to shipments transported.

Item 405

PACKING OR PACKAGING – SHORTAGE

Carrier will not be responsible for shortage on shipments which are banded, strapped, netted, shrink-wrapped or otherwise secured to bins, pallets, platforms or skids when such securing material is found to be intact at the time of unloading by consignee. Carrier will only be responsible for the number of bins, pallets, platforms or skids on such shipments.

Item 410

SPECIAL AND CONSEQUENTIAL DAMAGES

Carrier shall not be liable for special, incidental, indirect or consequential damages (including without limitation, lost profits or business opportunity, or punitive and exemplary damages incurred or suffered by the Shipper as a result of shortage, damage or delay.

Item 415

RELEASED EVALUATION/SIMPLIFIED PRICING

Unless otherwise agreed in writing, all common carrier shipments are rated as Freight All Kinds for named customers and are subject to a maximum cargo liability of $4.50 per pound per article or $200,000 per truckload shipment, whichever is less.

ISSUED: 12/26/03 EFFECTIVE: 01/01/04

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. 2^ND REVISED PAGE 25

Item 420

ALTERNATIVE RATES AVAILABLE

Shippers may obtain rates for shipments with higher release values than those indicated above from carrier’s Director of Pricing by calling

800-236-8441 or 608-462-8441. Any such alternative rate shall be reflected by the insertion of the higher release value and specially assigned identification number on the bill of lading at the time of pick-up.

Item 425

INADVERTENCE CLAUSE

If a shipper declares a value exceeding $4.50 per pound per article or $200,000 per truckload without insertion of the corresponding specially assigned identification number, the shipment will not be accepted, but if the shipment is inadvertently accepted, it will be considered as being released to a value of $4.50 per pound per article or $200,000 per truckload, whichever is less, and the shipment will move subject to such limitation of liability.

Item 430

SPOTTED EQUIPMENT

Carrier responsibility for cargo begins when Carrier picks up a shipment from the Shipper’s dock, or in the case of spotted equipment when Carrier takes physical possession of the loaded trailer. Carrier’s responsibility ends when the shipment is delivered or in the case of spotted equipment, when the loaded trailer is placed in the consignee’s premises for its unloading convenience.

Item 435

ADDITIONAL LIABILITY LIMITS

In no event shall carrier's liability for cargo loss or damage exceed the maximum set forth in any through bill of lading or otherwise agreed to between the shipper (or beneficial owner) and the party which retains carrier's services.

Item 440

PACKAGING – SHIPPER’S RESPONSIBILITY

Carrier is not responsible for any cargo loss or damage resulting from defective, substandard, or otherwise inadequate packing of product, or for any act or omission by the consignee in loading or unloading of carrier’s equipment.

ISSUED: 10/21/105 EFFECTIVE: 11/01/05
RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 26

SECTION 5-

CLAIMS PROCESSING AND SALVAGE

Item 500

CARGO CLAIMS APPLICATION

The provisions of this Circular are filed in compliance with Federal Claim, Loss and Damage Regulations (49 C.F.R. 370 and the STBOL) which shall govern the investigation and disposition of claims for loss, damage, or delay to property transported or accepted for transportation in interstate or foreign commerce.

Item 510

FILING OF CLAIMS

(A) Claims in writing are required within nine (9) months from the date of delivery or a reasonable time during which delivery should have been accomplished. A claim for loss, damage, injury or delay to cargo shall not be voluntarily paid by carrier unless filed in writing, as provided in subparagraph (b) of this Item with carrier within the specified time limits applicable thereto and as otherwise may be required by law, the terms of the bills of lading or other contract of carriage, and all rules circular provisions applicable thereto. Claims for concealed damages will be submitted to carrier within forty-eight (48) hours of delivery. Any suit to recover loss of damage or delay to cargo must be instituted no later than two years and one day after the claim is denied.

(B) Minimum filing requirements. A communication in writing from a claimant, filed with carrier within the time limits specified in the bill of lading or contract of carriage or applicable contract between carrier and shipper and (1) containing facts sufficient to identify the shipment (or shipments) of property involved; (2) asserting liability for alleged loss, damage, injury or delay; and (3) making claims for the payment of a specified or determinable amount of money, shall be considered as sufficient compliance with the provisions for filing claims embraced in the bill of lading or contract of carriage or applicable contract between carrier and shipper.

(C) Documents not constituting claims such as bad order reports, appraisal reports of damage, notations of shortages or damage, or both, on freight bills, delivery receipts, or other documents, or inspection reports issued by shipper or its inspection agency, whether the extent of loss or damage is indicated in dollars and cents or otherwise shall, standing alone, not be considered by carrier as sufficient to comply with the minimum claim filing requirements specified in subparagraph (b) above.

(D) Claims filed for uncertain amounts. Whenever a claim is presented against carrier for an uncertain amount such as “$100 more or less,” carrier shall determine the condition of the baggage or shipment involved at the time of delivery by it, if it was delivered, and shall ascertain as nearly as possible

ISSUED: 12/26/03 EFFECTIVE: 01/01/04

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 27

Item 510 (Continued)

FILING OF CLAIMS

(D. continued) the extent, if any, of the loss or damage for which it may be responsible. It

shall not, however, voluntarily pay a claim under such circumstances unless and until a

formal claim in writing for a specified or determinable amount of money shall have been

filed in accordance with the provisions of subparagraph (b) above.

Item 520

ACKNOWLEDGMENT OF CLAIMS

(A) Carrier shall, upon receipt in writing of a proper claim in the manner and form described in these regulations, acknowledge the receipt of such claim in writing to the claimant within thirty (30) days after the date of its receipt by carrier unless carrier shall have paid or declined such a claim in writing within thirty (30) days of the receipt thereof. Carrier shall indicate in its acknowledgment to the claimant what, if any, additional documentary evidence or other pertinent information may be required by it to further process the claim as its preliminary examination of the claim, as filed, may have revealed.

(B) Carrier shall, at the time each claim is received, create a separate file and assign thereto a specific unique claim file number and note that number on all documents filed in support of the claim and all records and correspondence with respect to the claim, including the written acknowledgment of receipt and, if in its possession, the shipping order and delivery receipt, if any, covering the shipment involved At the time such claim is received, carrier shall cause the date of receipt to be recorded on the face of the claim document, and the date of receipt shall also appear in carrier’s written acknowledgment of receipt to the claimant.

Item 530 INVESTIGATION OF CLAIMS

(A) Prompt investigation is required. Each claim filed against carrier in the manner prescribed herein shall be promptly and thoroughly investigated if investigation has not already been made prior to receipt of the claim. Unless perishable commodities are involved, the shipper or consignee in possession shall afford carrier five (5) days to inspect any damaged shipment prior to dispensation.

(B) Supporting documents. When a necessary part of any investigation, each claim shall be supported by the original bill of lading, evidence of the freight charges, if any, and either the original invoice containing invoice value, a photographic copy of the claim to be true and correct with respect to the property and value invoiced in the claim; or certification of prices or values, with trade or other discounts, allowances or deductions of any nature whatsoever and the terms thereof, or depreciation reflected thereon; provided, however, that where the property shows on the bill of lading or where the invoice does not show price or value, or where the property involved has not been sold, or where the property has been transferred at

ISSUED: 12/26/03 EFFECTIVE: 01/01/04

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 28

Item 530 (Continued)

INVESTIGATION OF CLAIMS

(B continued) bookkeeping values only, carrier shall, before voluntarily paying a claim thereon, require the claimant to establish the destination value in the quantity shipped, transported, or involved and certify the correctness thereof in writing or show an alternative applicable value arising by reason of alternatively applicable contract terms.

(C) Verification of loss. A prerequisite to the voluntary payment by carrier of a claim for loss of an entire package or an entire shipment shall be the securing by it of a certified statement in writing from the consignee of the shipment involved that the property for which the claim is filed has not been received from any other source.

Item 540

DISPOSITION OF CARGO CLAIMS

Carrier shall pay, decline, or make a firm compromise settlement offer in writing to the claimant within one hundred twenty (120) days after receipt of the claim by carrier; provided, however, that if the claim cannot be processed and disposed of within 120 days, after expiration of each succeeding sixty (60) day period while the claim remains pending, carrier shall advise the claimant in writing of the status of the claim and the reason for delay in making final disposition thereof and it shall retain a copy of each such advice to the claimant in its claim file thereon.

Item 550

CLAIMS LOSS AND DAMAGE – SALVAGE

(A) Whenever property transported by carrier is damaged or alleged to be damaged and is, as a consequence thereof, not delivered or is rejected or refused upon tender thereof to the owner, consignee, or person entitled to receive such property, carrier, after giving due notice, wherever practicable to do so, to the owner and other parties that may have an interest therein, and unless advised to the contrary after giving such notice, shall undertake to sell or dispose of such property directly or by the employment of a competent salvage agent. Carrier shall only dispose of the property in a manner that will fairly and equally protect the best interests of all persons having an interest thereon. Carrier shall make an itemized record sufficient to identify the property involved so as to be able to correlate it to the shipment or transportation involved, and claim, if any, filed thereon. Carrier shall also assign to each lot of such property a successive lot number and note that lot number on its record of shipment and claim, if any claim is filed thereon.

(B) Whenever disposition of salvage material of goods shall be made directly to an agent or employee of carrier or through a salvage agent or company in which carrier or one or more of its directors, officers, or managers has any

ISSUED: 12/26/03 EFFECTIVE: 01/01/04

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 29

Item 550 (Continued)

CLAIMS LOSS AND DAMAGE - SALVAGE

(B continued) interest, financial or otherwise, carrier’s salvage records shall fully reflect the particulars of each such transaction or relationship, or both, as the case may be.

(C) Upon receipt of a shipment on which salvage has been processed in the manner herein before prescribed, carrier shall record on its claim file thereon the lot number assigned, the amount of money recovered, if any, from the disposition of such property, and the date of transmittal of such money to the person or persons lawfully entitled to receive the same.

Item 560

DISPOSITION OF OVERAGE

Consignee shall accept overages in fulfillment of its duty to mitigate damages. Overages will be returned to the consignee or shipper by carrier upon request in return for payment of carrier’s applicable freight charges.

In the event consignor and consignee decline to accept overages and mitigate damages, carrier shall treat any overage as salvage and after notice shall sell same in accordance with the bill of lading contract and the terms of this circular. The proceeds of any such sale less carrier’s freight and storage charges shall be remitted to the person or persons lawfully entitled to receive same.

Carrier shall not be liable for any difference between the sales price of overage and the destination market value where the shipper and consignee decline to mitigate damages.

Item 570

DISPOSITION OF CONTESTED CARGO CLAIMS

Unless the parties agree to voluntary alternative dispute resolution, disputed claims will be subject to 49 U.S.C. §14706 (the Carmack Amendment) subject to any applicable released evaluation. Claimant waives any right to setoff or offset of contested and unliquidated cargo claims against freight charges otherwise due to carrier as a precondition of service. Claimants agree to forfeiture of any contested claim asserted by it as a setoff after notice and demand for freight charges.

ISSUED: 12/26/03 EFFECTIVE: 01/01/04
RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 30

SECTION 6-

COLLECTION AND PAYMENT OF FREIGHT CHARGES

Item 610

INVOICES

Carrier shall submit an invoice to the specified party in accordance with the requirements of Federal regulations governing regulated transportation. Carrier will retain delivery receipts and proofs of delivery which will be provided upon specific request in accordance with the provisions of this circular.

Item 620

COLLECTION AND PAYMENT OF CHARGES

Except as otherwise provided in this rule, transportation charges will be collected by carrier at the time shipments are delivered.

Upon taking precautions deemed by carrier to be sufficient to assure payment of charges within the credit period herein specified, carrier shall make delivery of freight in advance of the payment of charges thereon and will extend credit in the amount of such charges to those who undertake to pay them for a period of thirty (30) days, or as otherwise agreed to with shipper in writing, excluding Sundays and legal holidays, from the presentation of the freight bill.

Item 630

PAYMENT WITHOUT OFFSET

Consignor and/or Consignee shall pay all freight charges when due without offset for any cause, including but not limited to, cargo claims. All claims for loss or damage shall be governed by this Circular and following and neither consignor nor consignee shall deprive carrier of proper cargo insurance adjustment by unilateral deduction of claims from payment of freight charges due.

Item 640

INTEREST AND FEES ON PAST DUE ACCOUNTS

Carrier will assess one and one-half percent (1½%) per month on past due indebtedness for collection, handling, late fees and interest. In the event carrier deems it necessary to retain the services of legal counsel to collect any outstanding indebtedness, shipper shall pay attorneys’ fees in the amount of $300.00 or twenty-five percent (25%), whichever is greater.

ISSUED: 12/26/03 EFFECTIVE: 01/01/04

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 31

Item 650

THIRD PARTY BILLING

Carrier does not employ property brokers or other intermediaries as its agents for the solicitation of shipments or the collection of freight charges. Carrier will invoice the shipper’s broker, bank or other agent for freight charges. Carrier reserves the right to bill and collect freight charges from the shipper on prepaid shipments or the consignee on collect shipments in the event full payment of freight charges is not received pursuant to third party billing.

A shipment in which charges are to be paid by a party other than the consignor or consignee will be accepted provided recourse to the consignor is preserved with the carrier picking the shipment up at origin. The consignor and consignee guarantee to pay the charges if the third party fails to do so in the time allotted under the applicable credit regulations. Any such shipment will not be accepted if the consignor executes a nonrecourse provision of the bill of lading.

Item 660

PRIORITY OF FREIGHT CHARGE OBLIGATION

When arrangements are made with intermediaries for transportation services provided by carrier and the intermediary in turn bills the shipper or beneficial owner of the goods for freight charges inclusive of carrier’s rates, the following rules shall apply:

(1) The intermediary will segregate money due owing to carrier from other accounts.

(2) Intermediary will pay carrier without offset from funds received and shall not commingle, pledge, encumber or hypothecate funds received by it intended for payment of freight charges to carrier.

(3) When the arranger of transportation is a carrier or freight forwarder, a constructive interline trust shall apply.

(4) When the arranger of transportation is a property broker, the regulations set forth at 49 C.F.R. §371 shall apply and monies received by the broker shall be segregated from its other assets and liabilities.

(5) In no event shall accounts receivable pledge or encumber by any intermediary be inclusive of freight charges billed by it to the extent those freight charges are due and owing to carrier.

Carrier preserves recourse for payment of all freight charges to the consignor, unless Section 7 of the STBOL is signed, and to the consignee unless prior notice is given that the consignee is not to be responsible for freight charges in accordance with to Section 7 of the STBOL.

ISSUED: 12/26/03 EFFECTIVE: 01/01/04

RULES CIRCULAR 100 HEDING TRUCK SERVICE, INC. ORIGINAL PAGE 32

Item 670

LIEN FOR FREIGHT CHARGES

Carrier shall have a possessory lien on shipments in its dominion and control for the payment of freight charges past and present.

THIS SPACE INTENTIONALLY LEFT BLANK.

ISSUED: 12/26/03 EFFECTIVE: 01/01/04