1. FY17 ISP Agreement modifications Station presentation to AOs
Thank you for attending today’s presentation.
Today, we want to go over some the modifications to the FY17 ISP Agreement.
January/February 2017

2. Overview
New version of the ISP Agreement offered Feb. 19, 2017 (Sample to be available on MyGroundBiz.com Feb. 17)
Significant changes to the ISP Agreement are discussed in this presentation
In addition to the presentation, there is a handout available from station management
The new version of the ISP Agreement will be offered February 19 as part of FedEx Ground’s ongoing evaluation of business practices and regulatory changes.
A sample of this new version of the ISP Agreement will be available February 17 on MyGroundBiz.com.
This presentation highlights some of the changes of greatest interest.
In addition to this brief presentation, a handout outlining these changes will be provided.
FY17 ISP Agreement modifications
January/February 2017

3. Body of Agreement
Sections 14.2: Indemnification by FXG and 14.3: Indemnification by ISP
Amount invoiced if an ISP causes damages is modified to $2,000 per incident.
Language added clarifying that ISP’s duty of indemnification extends to providing assistance in defense of claims against FXG.
The first modification we’ll cover is to the body of the ISP Agreement.
Sections 14.2 and 14.3 involving indemnification by FedEx Ground and the ISP have been modified so that:
The amount invoiced in the event an ISP causes damages, including to FedEx Ground property, is modified to $2,000 per incident.
Language has been added that indemnification relies on an ISP assisting FedEx Ground in preserving, securing and giving evidence, including electronic data and video recordings, in the event of claims against FedEx Ground.
FY17 ISP Agreement modifications
January/February 2017

4. Schedule A Attachment A-1, Section 2: CSA Geographical Descriptions
Section modified because spotted trailer service and spot rates will no longer be included in the ISP Agreement.
Attachment A-2, Section 3.6: Spotted Trailers
Attachment A-2, Section 5.2: Contracted Service Results
Language added that ISP agrees to reach service results in all stations out of which it operates.
There are several modifications to Schedule A.
Attachment A-1, Section 2 and Attachment A-2, Section 3.6 have been modified because spotted trailer service and spot rates will no longer be included in the ISP Agreement.
Language has been added to Attachment A-2, Section 5.2 that an ISP agrees to reach the contracted service results in each station out of which it operates.
FY17 ISP Agreement modifications
January/February 2017

5. Schedule C Section 1.2: Stop Charge
Section modified because spotted trailer service and spot rates will no longer be included in the ISP Agreement.
Section 1.3: Fuel Surcharge
Average weekly fuel price indexed to weekly average fuel price at FedEx Ground fuel station if domiciled at or near fuel station.
Section 1.10: Shuttle and Spotted Trailer Charges
Section 1.11: Temporary Clean Inspection Incentive
Section eliminated because the clean inspection incentive will no longer be included in the ISP Agreement.
Modifications to Schedule C and its attachments include:
Sections 1.2 and 1.10 because spotted trailer service and spot rates will no longer be included in the ISP Agreement.
Section 1.3 where the average weekly fuel price will now be indexed to the weekly average fuel price of the FedEx Ground fuel station if the ISP is domiciled at or near a FedEx Ground fuel station. This information is on MyGroundBizAccount. If the ISP is not domiciled at or near a FedEx Ground fuel station, the average weekly fuel price will be indexed to the OPIS reported fuel price.
Section 1.11 has been eliminated because the clean vehicle incentive is no longer part of the ISP Agreement.
FY17 ISP Agreement modifications
January/February 2017

6. Schedule G Section 1.1: Spotted Trailer Service
Section eliminated because spotted trailer service and spot rates will no longer be included in the ISP Agreement.
Section 1.1 has been eliminated because spotted trailer service and spot rates will no longer be included in the ISP Agreement.  
FY17 ISP Agreement modifications
January/February 2017

7. Schedule I Section 1.1 (A): Safety
Adopts 5-in-10 driving experience standard for ISP personnel.
Terms for 5-in-10 driving experience similar to the 1-in-3 years and 6‑months-plus- driving-school terms.
Section 1.4 (K): Currently Assigned Personnel
Language modified to provide for 36-month “lookback” period for disconnects and improper assemblies.
ISPs agree to ensure curative safe assembly training of its personnel after improper assembly or disconnect event.
FedEx Ground has the option to offer the ISP an opportunity to provide evidence that the driver has been trained on safe assembly.
Section 1.1 (A) has been modified to adopt the five years’ driving experience within the previous 10 years driver standard as part of the Safety Schedule. The terms for the 5-in-10 driving experience standard will be similar to the 1-in-3 years and 6‑months-plus-driving-school terms.
Section 1.4 (K) has been modified to provide for a 36-month “lookback” period for disconnects and improper assemblies. ISPs agree to provide safe assembly training to personnel after any improper assembly or disconnect event. FedEx Ground has the option to offer the ISP an opportunity to provide evidence that the driver has been trained on safe assembly.  
FY17 ISP Agreement modifications
January/February 2017

8. Schedule I (cont.) Section 5.2: Hours of Service; ELD
Language modified so that ISP personnel need to have operated only a vehicle less than 10,001 lbs. GVWR for the day on which the driver exceeds 70‑hours on-duty in eight days, to utilize the provision.
Section 5.8: Duty to Ensure Safe Operations and Compliance; Material Breach
Language added to clarify that FedEx Ground may review safety results for the previous 36 months.
Section 5.2 has been modified so that ISP personnel need to have operated only a vehicle less than 10,001 lbs. GVWR for the day on which the driver exceeds 70‑hours on-duty in eight days, to utilize the provision.
Language has been added to Section 5.8 to clarify that FedEx Ground may review safety results within the previous 36 months, which may extend to a previous contract term, to assist in determining appropriate contractual remedies for safety results that do not meet the agreed-upon terms.
FY17 ISP Agreement modifications
January/February 2017

9. Schedule of Amendments
ELDP for P&D — Extension
ELDP has been extended for the FY17 ISP Agreement
ELDP for P&D — Removal of Accident Rate Condition
Preventable accident rate condition to participate in ELDP removed from the ISP Agreement terms
Replaced with Duty to Ensure Safe Operations
Clean Inspection Incentive
Removed from the FY17 ISP Agreement
Modifications to the Schedule of Amendments involve ELDP and the clean inspection incentive.
ELDP has been extended for the FY17 ISP Agreement and the preventable accident rate condition has been removed from the terms for ISPs to participate in ELDP for P&D. The preventable accident rate condition has been replaced with the safety standards outlined in section 5.8 of Schedule I, or the Duty to Ensure Safe Operations.
The clean inspection incentive has been removed from the FY17 ISP Agreement.   
FY17 ISP Agreement modifications
January/February 2017