Visible Damage or Shortage

1. Truck driver and receiver should jointly examine contents.
2. Both carrier's copy and consignee's copy of delivery receipt should be endorsed as to damage or shortage.
3. Damage must be followed with a request for inspection in order to substantiate proper amount of damage.
4. Salvage must be held for carrier disposition.

Concealed Damage or Loss

1. Receiver must leave contents in container and hold for carrier's inspection.
2. Request inspection from delivering carrier immediately. Report must be within fifteen (15) days of delivery. Notice may be given carrier by phone or in person and shall be confirmed by mail.
3. The carrier's representative will examine goods within 48 hours and will fill out an ``Inspection Report of Loss or Damage Discovery After Delivery.'' Both carrier and receiver sign this report. Receiver should take exception to any statement by inspector with which they do not agree. Copy of inspection is retained by the receiver.
4. Salvage must be held for carrier disposition.

Filing of Claim

1. Claim must be filed within nine (9) months after delivery or in nine (9) months after reasonable time for delivery has elapsed. (Early filing means early settlement.)
2. The claim must be filed for a definite amount and must be supported by photocopies of the following:
   1. Original bill of lading.
   2. Original paid freight bill.
   3. Original invoice, or certified copy, or extract from original invoice.
   4. Copy of carrier's document pertaining to the particular shipment involved, wherein carrier has acknowledged loss and/or damage over carrier's signature (where loss or damage is noted at time of delivery).
   5. Inspection report (concealed loss or damage claims).
3. Copies of the above documents and a ``Standard Form for Presentation of Loss and Damage Claims'' must be filed with the delivery carrier.
4. Settlements may be any percentage up to and including complete liability for the responsible party.
5. Procedure for handling damaged merchandise and freight claims:
   1. Inspect all shipments the same day they are received.
   2. Noticeable damage must be noted on the delivery receipt of the freight bill at the time of delivery or claim will be disallowed.
   3. Damage claims require an inspection from the delivering carrier. The request for this inspection must be made within 15 days of delivery and the report is mandatory when filling out a claim per ICC regulations.
   4. Retain the merchandise at your facility until disposition has been made by the carrier or his representative.
   5. The Allegiance Customer Service Representative must be notified within 15 days of the customer receipt so a claim may be properly filed with the carrier.

Product Delivery

Allegiance Healthcare Corporation shall use its reasonable efforts to fill orders, but Allegiance shall not be liable for nonperformance or delays caused by a shortage of raw materials, manufacturing problems, delivery or labor problems, acts of regulatory agencies, discontinuation of a product line, Acts of God or causes beyond its control. Purchaser agrees that in such events Allegiance may allocate products among all purchasers, without liability.