1. Car Hire Special Market Rates Craig Bicknell – Mgr. Fleet Performance & Compensation Norfolk Southern ACACSO Fall Meeting May 2011

2. Special Market Rates Car Hire agreements with Expiration Dates are often revert, or “Fallback” upon expiration of the agreement. This presentation will discuss each type of Agreement and what happens to rates at expiration. Three types of Offers called “Market”, but one is “Special”. A Special Market Rate agreement is intended for those situations where special considerations or provisions affect the amount paid for car hire. Provisions can include free time, reclaim outside the normal scope, or other considerations.

3. Special Market Rates Car Hire agreements with Expiration Dates are often revert, or “Fallback” upon expiration of the agreement. This presentation will discuss each type of Agreement and what happens to rates at expiration. Due to these considerations or provisions, a Special Market Rate does not reflect the true fair market value of the equipment and therefore is not considered a “Market” rate. Special Market rates are not included in the calculation of rates used in the Default Rate table.

4. Special Market Rates Car Hire agreements with Expiration Dates are often revert, or “Fallback” upon expiration of the agreement. This presentation will discuss each type of Agreement and what happens to rates at expiration. Special Market Rate offers are identified with a Rate Type of “Z”. They may be offered with or without an effective start date, and with or without an effective end date. If offered with an effective end date, special fallback rules may apply.

5. Fallback from Special Market Rates Car Hire agreements with Expiration Dates are often revert, or “Fallback” upon expiration of the agreement. This presentation will discuss each type of Agreement and what happens to rates at expiration. For negotiations originating after May 31, 2004, upon expiration, rates revert back to a fallback rate. The fallback rate is the last unexpired negotiated market rate between the two parties to the expiring agreement. If there is no prior unexpiring market rate, the fallback rate is the default rate for each car in the agreement

6. Fallback from Special Market Rates Car Hire agreements with Expiration Dates are often revert, or “Fallback” upon expiration of the agreement. This presentation will discuss each type of Agreement and what happens to rates at expiration. Special Market Rate – cont’d For negotiations originating on or prior to May 31, 2004, upon expiration, rates remain in place until superseded by another agreement or arbitration.

7. Questions?