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EXHIBIT 10.8
INTERLINE DIVISION AGREEMENT
BETWEEN
CENTRAL FREIGHT LINES INC.
AND
XXXXX EXPRESS LINES (EXLA)
1. The parties hereto, being motor common carriers of property in
interstate and/or intrastate and/or foreign commerce, agree that each
will accept from the other the freight tendered them and which is
consigned to points on their lines.
2. INTERCHANGE POINTS
(a) Except as otherwise specifically provided herein, the following
basis will be observed in the division of revenue of traffic
interchanged at all recognized interchange points named in Appendix B.
(b) Except as may otherwise be specifically agreed upon or when
operational conditions warrant, the carrier making delivery to the
other carrier shall arrange for such delivery the warehouse or
platform of the others respective terminal.
3. DIVISIONS
Except as otherwise provided, division of revenue will be based upon
the Rocky Mountain Division Sheet D-83.
4. MINIMUM DIVISIONS
(a) Except as provided in (b) or (c), on 2-line haul, the minimum
division will be as published in the uniform division sheet D-83 and
successive issues thereof issued by RMTB, Inc. When the charges are
not sufficient to protect this minimum division for all carriers
involved the charges will be divided equally among the carriers.
(b) Except as provided in (c), on 3-line haul, the division of revenue
will be route of movement. When the charges are not sufficient to
protect the minimum division as provided in Item 25, the charges will
be equally divided among all three carriers.
(c) When for the account of Central Freight Lines shipments destined
to the following states will be factored as 2-line haul.
AR, KS, LA, MS, MO, NM, OK AND TX
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5. AFFILIATED MOTOR CARRIERS
Two or more carriers shown in applicable tariffs as being considered
as one carrier in the application of rates, shall be considered as
such in ascertaining divisions of revenue or between interchange
points, as the case may be.
6. COMBINATION RATES
When the through rate from origin to destination is constructed by the
use of a combination of local rates, the division of revenue under
this agreement shall be applicable only to that proportion of revenue
accruing from or to the point over which the combination of rates
apply.
7. DISPOSITION OF FRACTIONS
(a) In arriving at percentage factors, fractions of less than .5%
shall be dropped and fractions of .5% or over shall be increased to
the next even percentage.
(b) When the total of the percentage factors ascertained under the
provisions of Paragraphs 3 and 8(a) exceed 100%, then the highest
percentage factor shall be reduced so that the total of all percentage
factors equals 100%.
(c) When the total of the percentage factors ascertained under the
provisions of Paragraphs 3 and 8(a) is less than 100%, then the lowest
percentage factor shall be increased so that the total of all
percentage factors equal 100%.
(d) In the division of actual revenue, fractions of a cent shall be
disposed of according to the formula provided in Paragraph 8(a).
8. ACCESSORIAL CHARGES
(a) COD fees shall accrue solely for the account of the delivering
carrier, and the delivering carrier shall remit each COD direct to the
shipper or other properly designated payee in accordance with
delivering carrier's tariffs.
(b) Charges for Storage, Reconsignment, Stopping-in-transit, or other
accessorial charges permitted under the applicable tariffs, shall
accrue for the account of the carrier performing such services.
9. SHIPMENTS STOPPED TO PARTLY LOAD OR UNLOAD
Except as otherwise specifically provided herein, divisions of revenue
on shipments stopped in transit for partial loading or unloading
(where such transit privileges are allowed under the through published
rate) shall be determined as follows. The total through charges based
on the total weight upon which the through rate is assessed shall be
the revenue to be prorated among all participating carriers. Except,
in no event shall the proportion accruing to any carrier exceed its
normal percentage proportion, based on the through rate (origin to
destination) on the actual weight transported by such carrier.
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10. SETTLEMENT OF CLAIMS
Claims for overcharge or for loss and/or damage shall be handled
according to the provisions of the current edition of the Freight
Claim Rule Book, published by the National Motor Freight Claim Council
and found in the National Motor Freight Classification.
(a) Overcharge claims will be assumed by each carrier on the same
basis as was used to determine the division of revenue on the same
shipment.
(b) For operating convenience, the parties to this agreement may agree
to handle trailers loaded with one or more shipments and moving as
origin carrier's load and count where such procedure is followed, it
shall be the obligation of the receiving carrier to report all
overages, shortages or damages to the origin carrier via telephone
within 24 hours of unloading of such freight and via written notice
within 48 hours of unloading of such freight confirming such report.
Failure to report such shortages or damages as provided herein shall
result in the receiving carrier becoming fully responsible for such
unreported shortages or damages.
11. EXCEPTIONS
(a) On shipment that have been previously handled through interline
settlement for the division of the through revenue on which balance
dues occur due to reversal of charge, balance due will be settled
promptly between carriers party to this agreement whether or not
collection has been attempted for the customer. Upon attempting
collection of the additional charges from the customer it develops
that the charges cannot be collected the carrier attempting collection
from the customer will xxxx the other carrier for the amount involved
which will be paid promptly upon explanation as to why collection
cannot be accomplished.
(b) Undercharge adjustments shall be the responsibility of both
parties to the agreement. The responsibility of collection shall rest
upon the carrier collecting the revenue, the other party shall render
all reasonable assistance therein. If the undercharge cannot be
collected, the carrier attempting collection from the customer shall
xxxx the other for the amount involved so that the interline
settlement will then be based on what was collected.
12. INTERLINE SETTLEMENTS
(a) Revenue division settlements shall be made on a weekly basis by
each carrier to the other.
(b) Each statement issued must be paid within thirty (30) days from
the date thereof. Items in dispute are to be reviewed, resolved and
settled within sixty (60) days from the original statement date.
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(c) Freight bills on shipments received from the origin carrier at the
time of interchange must contain the origin carrier's freight charges.
(d) Each party to this agreement agrees to furnish to the other, upon
request, a copy of its most recent balance sheet together with such
other financial information as may be appropriate and useful in
passing on credit standing. Such requests may be made at any time
during the life of this agreement.
(e) Interline settlements shall be made in accordance with the
appropriate rule or rules of the A.T.A. National Freight Claim Council
Rule Book.
(f) After interline settlement has been made, no correction or
interline adjustment shall be honored by either carrier when such
carriers proportion is less than $10.00 on any shipment (except
balance due bills on government freight moving on GBL's pursuant to
Section 10721 or duplicate payments are recoverable regardless of
amount).
13. The origin carrier may waive accessorial charges for their customers
if they so choose to do so, but the delivering carrier will assess its
published accessorial charges for services it performs. The origin
carrier will be responsible for paying those accessorial charges to
the delivering carrier on prepaid shipments (except on those
accessorials requested by the non-payor of the freight charges, the
accessorial services will be paid by the requesting party and billed
by the carrier performing such services).
14. This agreement is to be reciprocal in nature, allowing both parties
listed consistent treatment regardless of whether they are the origin
or destination carrier.
It is mutually agreed that there shall be no change or alterations in operation
of this agreement without the written consent of both parties and that change
or termination is to be upon 30 days written notice, unless both parties agree
to an earlier date.
The above agreement supersedes and cancels all previous Interline Division
Agreements and is accepted by us to become effective:
October 2, 1997
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DATE
CENTRAL FREIGHT LINES INC. XXXXX EXPRESS LINES
Carrier Carrier
/s/ Xxxxx Xxxxxxx /s/ Xxxx X. Xxxxxx
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By: Xxxxx Xxxxxxx By: Xxxx X. Xxxxxx
Title: Director of Pricing Title: V.P. Pricing & Traffic
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Appendices
Appendix A
Appendix B
Appendix C
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