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KLLM, INC. RULES CIRCULAR

Item 500

FREE TIME

Carrier shall allow two hours of free time both for loading and unloading for vehicles with power units and drivers. When any portion of free time extends into a Saturday, Sunday or a national holiday, the computation of free time shall not resume until 12:01 a.m. on the next day, which is neither a Saturday, Sunday or national holiday.

Item 510

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 in this Tariff Item 500 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 charged to the consignee in the case of unloading and to the shipper in the case of loading.

(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 per hour or fractions thereof, subject to a maximum charge of $800/day for single drivers and $1,400/day for teams.

Item 520

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 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 in Item 500, charges for delaying the trailer beyond free time shall be $150.00 per 24-hour period or fraction thereof.

Item 530

PROOF OF DELIVERY CHARGE

Proof of Delivery Charge - Shipper may access carrier’s Website and retrieve necessary documents at no charge. When carrier is requested to provide a copy or image of the bill of lading to accompany each freight bill, a fee of $15 per bill of lading will be charged. If carrier is required to provide an original freight bill of lading, a fee of $25 per bill will apply

Item 540

SUBSTITUTED SERVICE

For its operating convenience, carrier reserves the right to hire other carriers and 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.

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