Fuel Surcharge Policy

Effective June 16, 2008, Polar Shredding will be implementing an indexed fuel surcharge for all Polar Shredding scheduled route and purge document destruction services.

Fuel Surcharge Invoice Subtotal Table

At Least

But Less Than

Surcharge

$2.68

0.00%

$2.68

$2.78

0.60%

$2.78

$2.88

1.20%

$2.88

$2.98

1.80%

$2.98

$3.08

2.40%

$3.08

$3.18

3.00%

$3.18

$3.28

3.60%

$3.28

$3.38

4.20%

$3.38

$3.48

4.80%

$3.48

$3.58

5.40%

$3.58

$3.68

6.00%

$3.68

$3.78

6.60%

$3.78

$3.88

7.20%

$3.88

$3.98

7.80%

$3.98

$4.08

8.40%

$4.08

$4.18

9.00%

$4.18

$4.28

9.60%

$4.28

$4.38

10.20%

$4.38

$4.48

10.80%

$4.48

$4.58

11.40%

$4.58

$4.68

12.00%

$4.68

$4.78

12.60%

$4.78

$4.88

13.20%

$4.88

$4.98

13.80%

$4.98

$5.08

14.40%

$5.08

$5.18

15.00%

$5.18

TBD

TBD



Since we began onsite shredding, we have resisted implementing any additional surcharges. As a result, we have absorbed many increased costs, including increases in fuel costs, on behalf of our customers. However, with the current cost of fuel we are unable to continue to fully absorb this cost.

The fuel surcharge will be adjusted monthly and applied to your monthly invoice. The surcharge will appear at the bottom of each invoice as a separate line item. Adjustments to the fuel surcharge basis will be effective the first of each month and publicly posted on www.PolarShredding.com approximately two weeks prior to the effective date.

The fuel surcharge will be updated monthly and is indexed to the following source: National U.S. Department of Energy, National Average On-Highway Diesel Fuel Prices

Fuel surcharges are subject to change without prior written notice. The duration and amount of any surcharge will be determined at our sole discretion. By tendering your document destruction to Polar Shredding, you agree to pay the surcharges, as determined by Polar Shredding.

As seen in the table below, the base rate was set at $2.68. This base rate was determined by the national average On-Highway Diesel Fuel Price for January 1, 2007.

National U.S. Average On-Highway Diesel Fuel Price ($/Gallon)

Examples:
Assume that your onsite shredding service charge is $95. If the average On-Highway Diesel Fuel Price was $3.78/gallon for a measurement month, the surcharge (applied to the month that follows the measurement month by two months) would be 6.60%. If you have a shredding service charge of $95 your surcharge would be calculated as $95 X 6.60% = $6.27.

If the Average, On-Highway Diesel Fuel Price was $4.40/gallon for a measurement month, the surcharge would be 10.80% and, using the same math as in the example above, the surcharge would be $10.26.

The table above only goes up to $5.18/gallon. If necessary, it will be expanded to cover higher fuel prices.

The surcharge is a percentage so that higher or lower shredding charges will have correspondingly higher or lower surcharges.

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