Corporate Governance

Fiscal Responsibility, Employee Safety, and Green Leadership

Trucking, warehousing and distribution service providers are regulated with safety standards that all industry companies must comply with. But at Hermann Services, we hold ourselves to even higher safety standards companywide. Our board of directors and safety committee ensure that we exceed compliance standards to maintain our leadership position as one of the best run companies in the supply chain industry.

Hermann employees/owner operators go above and beyond the call of duty every day to ensure not only public and personal safety, but also establish our own set of strict safety policies. All of our employees/owner operators are charged with strict safety responsibilities and we are proud of the way we all rise to the challenge.

We are equally committed to fiduciary responsibility. As a leading privately held business in the industry, Hermann has maintained positive balance sheets since our founding in 1927.

Hermann is proud to participate in several strategic safety and environmental partnerships, and we have been honored with environmental accolades from several organizations.

Safety Comes First on the Road

It's not just the safety of our drivers, equipment and cargo that's at stake-there are millions of other vehicles and drivers on the road, and we also share a concern for them. The following are just a few of the safety processes we've implemented that help us continually achieve the highest SafeStat Scores in the business:

• Speed reduction: Established lower speed limits for all of our drivers to improve stopping time for safe handling and minimized accidents, with the added benefit of better fuel economy.
• PeopleNet Onboard Computing: Enforces Hermann's speed limit policy to encourage driver compliance. Also records events to allow for proactive managing of driver behavior and the prevention of accidents.
• New Hire Safety Screenings: All new drivers undergo rigorous background checks to ensure clean safety records.
• Continued Driver Training: Our monthly safety breaks discuss current potential hazards and address "what if?" scenarios.
• Quarterly Accident Counter Measure: Meetings are conducted regularly with all drivers and drivers complete a short quiz on the correct way to respond to unsafe situations.
• Monetary Awards: We offer financial incentives for clean inspections with zero violations.
• Investigations and disciplinary actions: When the rare violation does occur, we want to know why and who is responsible

HA Green Fleet of Tractors

We've rolled out a fleet of MaxxForce-powered International trucks ahead of schedule to meet EPA standards for emissions. MaxxForce engines are the greenest in the industry, and we're proud to run our operations on these safe and reliable trucks that enable Hermann to keep up the level of efficiency and speed you've come to expect, while also positioning us as green trucking leaders.

As a member of the Smartway Partnership, we've reinforced our dedication to improving energy efficiency, reducing greenhouse gases and air pollutant emissions, and improving energy security through greener freight practices.

Warehouse Safety

In accordance with OSHA (Occupational Safety and Health Administration) regulations, Hermann Services continues to promote safety within our packaging and warehouse workplace. In addition to mandating safety apparel and gear, we supply our staff with foam earplugs that have an NRR (noise reduction rating) of 33. The hearing conservation program includes annual audiometric tests that are given to each Hermann Packaging Division employee to ensure good health.

As a member of Operation Clean Sweep, Hermann is devoted to ensuring that we handle all potentially hazardous materials in the safest manner possible. Our stellar safety record with plastic resin pellet transport and release prevention is a testament to our long-running commitment to maintaining a clean environment.

Preventive Tractor Trailer Maintenance

The best defense is a good offense, and it's our responsibility to ensure all drivers are adequately prepared for the road with a vehicle that is performing up to safety standards. Our standard maintenance operating safety procedures include:

• 90-day preventive maintenance schedule for every vehicle in our fleet.
• A lockout/tagout program has been set in place by mechanics for all out of service vehicles - ensuring that no accidents occur and the vehicle is not operated until repairs are complete.
• Daily pre and post-trip driver inspections.
• Monthly safety breaks and discussions for mechanics to review shop procedures for their own health and well-being.

Attaining the Highest Records of Safety

It is our goal to rank at the top of the list in safety among all businesses through the supply chain. From port transloading or oversized freight to hazmat transportation, to prevention of warehousing injuries, Hermann consistently ranks at the top and we will continue to do so under the leadership of our hands-on board and management team. Year-round safety training includes OSHA Train-the-Trainer courses in:

• Ergonomics
• Lockout/Tagout
• Hazard Identification/Communication
• Emergency Action Plans
• Bloodborne Pathogens/Personal Protective Equipment
• And more

Membership in Captive Insurance

Hermann Services is a proud member of a Captive Insurance Group. Consisting of over 50 carriers in various regions, all members are audited annually by a SMSC Safety Consultant. The TSA audit consists of numerous Federal Motor Carrier Safety Administration requirements including recordkeeping, training, hiring practices, and auto liability/worker's compensation claims in order for us to maintain membership in good standing.

If anyone has any suggestions or questions regarding our safety procedures, please contact Richard F Hermann, Director of Safety at 877-809-6070 x 121 or by email at rfhermann@hermanntds.com.