|This LEASE AGREEMENT made on January 1st, 2011, by and between Chicoda Carriers Inc., hereinafter referred to as LESSEE, located at 108 S. 6th St., Suite 202, Beatrice, NE 68310 and John Doe, hereinafter referred to as LESSOR, located at 1100 17th Avenue, Anywhere, USA 50007.|
(1) LESSEE is a motor contract carrier of property authorized by the Federal Motor Carrier Safety Administration by Permit Number MC544040 to provide transportation of property under contract with shippers and receivers of general commodities, and
(2) LESSOR is the owner of the tractor described in Appendix "A" and is duly authorized and empowered to execute this agreement. _______________________________________________________________________________________
NOW THEREFORE, in consideration of the representation made herein, the parties agree as follows:
(1) The LESSEE hereby leases the equipment and services of LESSOR, owned and described in Appendix "A". LESSOR certifies that equipment subject to this lease meets U.S. Department of Transportation (DOT) safety requirements and standards, and that LESSEE shall inspect such equipment and shall determine that such requirements and standards have been met at the time of execution of this lease.
(2) Possession of equipment will be transferred under the terms of this lease from LESSOR to LESSEE beginning at the date and time of execution of this agreement and continue until cancellation is served by either LESSEE or LESSOR in writing. At such time as this lease agreement is terminated, LESSOR agrees to furnish LESSEE with a written receipt to show that LESSOR retakes possession of the equipment.
(3) During the tenure of this lease agreement, the LESSEE shall have exclusive possession, control, and use of the equipment, and shall assume complete responsibility for the operation of the equipment for the duration of the lease. LESSOR agrees to properly identify equipment with the Federal Motor Carrier Safety Administration's "DOT" number, the name of LESSEE and other required decals.
(4) LESSOR agrees to comply with all safety regulations required by the Department of Transportation and the various States in which operations are conducted.
(5) In consideration for the use of the equipment and services of LESSOR, the LESSEE agrees to compensate LESSOR in the amount of 80% of gross revenues for each load confirmation form. LESSEE will provide all permitting necessary and will pay all fuel taxes, except for the IRP base registration, and mileage fees, unless otherwise agreed in Appendix “B”. LESSOR has a right to examine LESSEE's documents containing information for determining charges billed to the shipper.
(6) Payment will occur each Wednesday, upon submission of the necessary delivery documents and other paperwork concerning a trip in the service of LESSEE received the previous Wednesday. Delivery documents and paperwork concerning a trip required before the LESSOR can receive payment is defined as driver's log books and vehicle inspection reports required by the Department of Transportation, and those documents necessary for LESSEE to secure payment from the shipper, such as all bills of ladings, all shipping and receiving documents, scale tickets, clean trailer & organic certificates. LESSEE may require the submission of additional documents by the LESSOR but not as a prerequisite to payment, which include but are not limited to law enforcement tickets or citations and any accident or loss reports. Payment to the LESSOR shall be made contingent upon submission of a bill of lading to which no exceptions have been taken or bulk loads with supporting documentation with no more than a 250 pound weight discrepancy. LESSOR must complete all trip tickets and reports. Trip reports and all accompanying documents must be mailed in no later than seven calendar days after delivery of the freight.
(7) The LESSEE has a legal obligation and the responsibility to maintain liability and cargo insurance coverage for the protection of the public as required by Federal Motor Carrier Safety Administration regulations under 49 U.S.C. 10927, as amended by Public Law 104-88. Physical Damage, Bobtail, and Workers Compensation Insurance are elective to LESSOR. If the cost of the insurance is initially paid by LESSEE, such costs will be charged-back in full to LESSOR.
(8) The LESSOR is responsible for providing all fuel, meals and lodging, repairs and maintenance to tractor and trailer, tolls, ferries, detention, etc., necessary in the operation of equipment while in the service of LESSEE. If it becomes necessary for LESSEE to pay or provide any item that LESSOR is responsible for, the LESSEE has the right to deduct such cost from the LESSOR's compensation at the time of payment or settlement. If such deduction becomes necessary, then LESSEE will provide LESSOR with a full explanation and/or documentation as to how the amount of each item is to be computed. The LESSOR is not required to purchase or rent any products, equipment, or services from LESSEE as a condition of entering into this lease agreement.
(9) It is agreed that the services of LESSOR under the terms of this lease agreement is that of an independent contractor and that no "employee-employer" relationship exists between LESSOR and LESSEE. LESSOR is therefore responsible for providing his own workmen's compensation insurance, employment and income taxes, etc. Further, any drivers or employees of LESSOR are the complete responsibility of the LESSOR.
(10) It is the duty of the LESSOR to properly determine the condition of the freight at the time such freight is picked-up from the shipper, and a further duty to transport the shipment to its destination in as nearly that same condition as when it was picked-up. The LESSOR will inspect all shipments at the time of loading and mark any exceptions or conditions on the bill of lading or receipt. At the destination, the LESSOR will again inspect the freight with the consignee and mark on the delivery receipt any exceptions to the condition or damages to the shipment that occurred during transit. Delivery receipts will be turned in to the LESSEE as part of the documentation required for payment. The LESSEE has a right to deduct all incurred costs for damage or loss of freight in transit caused by LESSOR and not reimbursed by insurance. The LESSEE will provide a written explanation and itemization of any deductions for cargo or property damage made from compensation to LESSOR.
(11) The DRIVER is responsible for loading and unloading freight to and from the trailer, unless proper notations are made on the bill of lading that the driver is not responsible. Except when the violation results from the acts or omissions of the LESSOR, the LESSEE shall assume the risks and costs of fines when a trailer is pre-loaded, sealed, or the load is containerized, or when the trailer or lading is otherwise outside the LESSOR's control, LESSEE shall reimburse LESSOR for any fines paid by the LESSOR.
(12) LESSOR agrees to pay LESSEE a reasonable administrative fee for the performance of services performed by LESSEE on the LESSOR’s behalf. Such services may include, but not limited to, wire transfers, fuel card fees, procuring insurance coverage on behalf of LESSOR, making advancements on behalf of LESSOR, processing claims arising out of the maintenance, use and control of the equipment by LESSOR, replacement of decals and permits, expenses incurred in processing driver qualification files for LESSOR’S prospective drivers and for LESSOR, and for bond payments. Said fee shall be set by LESSEE and shall be due and payable within the next settlement period and then deducted. This applies to job duties required by the office staff that are above or aside from the normal requirements for booking and processing freight. Examples would be if Chicoda Carriers Inc. invests extra time working insurance claims, resolving public relations problems with shippers/receivers that are driver incurred, legal research on behalf of a driver, etc.
(13) This LEASE AGREEMENT may be canceled upon written notice by either LESSOR or LESSEE. It is agreed that any loads in transit will be delivered prior to cancellation and all required paperwork will be turned in prior to final settlement. Any costs incurred by LESSEE to complete the delivery of a load in transit will be charged to the LESSOR. The LESSOR agrees to remove Identification signs or devices from the equipment upon the termination of the lease and return such signs or devices to the LESSEE. If identification has been painted directly on the equipment, then LESSOR agrees to furnish a photograph of both sides of the equipment showing identification has been removed or painted over. Failure to furnish evidence of the removal of identification from the equipment will result in the withholding of the final settlement.
(14) This LEASE AGREEMENT is to become effective December 10th, 2010, and shall remain in effect for a period of one year from such date, and from year to year thereafter, subject to the right of either party hereto to cancel or terminate the AGREEMENT at any time with written notice of one party or the other. LESSOR shall not assign this LEASE AGREEMENT or any rights or obligations hereunder to anyone without the prior written consent of the LESSEE.
(15) The provisions of this LEASE AGREEMENT shall be binding upon, inure to the benefit of and apply to the respective heirs, executors, administrators, successors and assigns of the parties hereto. Should any part of this agreement be deemed invalid or unenforceable for any reason, the remainder of the agreement shall not be affected and all terms thereof shall continue in force, so long as the basic purpose of the agreement is not made unlawful, made impossible or substantially impaired.
LESSOR agrees to keep all loading, unloading, and rate information confidential to keep our commitment of confidentiality to our loading customers. Failure to do so can result in a fine or penalty or termination of this agreement. Our customers do not want their competitors or ours to know their contacts or rates and risk losing the business. LESSOR agrees to pay LESSEE the agreed percentage of this agreement should they solicit loads or movements they come to know about from LESSEE within two (2) years from the termination of this LEASE AGREEMENT.
(17) This LEASE AGREEMENT shall be governed by ad construed in accordance with the laws of the State of Nebraska. LESSOR consents to the jurisdiction of any state or federal court of general jurisdiction, which sits in or has jurisdiction over the county in which LESSEE has its principal place of business with respect to any proceedings arising out of this LEASE AGREEMENT. LESSOR agrees that mailing to its last know address by registered mail of any process shall constitute lawful and valid process.
IN WITNESS WHEREOF, this agreement has been entered into and executed by duly authorized representatives of LESSOR and LESSEE.
2009 Petercar 299 VIN #2HSFBAMR6XC088820 Insured Value $50,000 Unit #409
Physical Damage and Bobtail Insurance can be carried by the LESSOR by his own agent and expense and a certificate of insurance documenting this coverage will be provided to the LESSEE. LESSOR wishes to have the LESSEE carry this coverage and charge it back at a monthly charge of $ NA .
Liability Insurance of $1,000,000 & Cargo Insurance of $50,000 coverage will be carried by the LESSEE and the LESSOR’s portion will be deducted in advance at $455.00 per month. There is a $1000 deductible for tractor, trailer, and cargo, which is the LESSOR’s responsibility to pay if a claim occurs. A deposit of up to $1000.00 is required to cover this potential liability and can be deposited at the time of lease or a deduction of $100.00 per week will occur until the balance is covered. The deposit will be returned within 45 days of trailers return less any damage or expenses noted and documented. Should an accident or damage occur LESSOR must notify LESSEE immediately to determine liability and whether insurance coverage is filed for. Required deposit for this lease is $1000.00.
Prorate Plates provided by the LESSEE will be billed back at $150 per week until paid in full. Should the lease be terminated before payments are complete LESSOR agrees to pay the amount in full or have deducted from the last settlement. If lease is terminated and the plate returned a credit will be applied for and refunded to the LESSOR for the cash return value of the plate during the month it is returned. Fees are approximately $1640.00 per year.
Workers Comp coverage is at the option of the LESSOR to provide if wanted, as he is not required to carry it when self-employed by Nebraska Law, the LESSEE has no contention to require it.
LESSOR and it’s drivers agree to inspect the trailer DAILY and advise LESSEE of any items that may need attention immediately or in the near future if a periodic inspection is not scheduled.
LESSOR and it’s drivers agree understand they are solely responsible for the care of the trailer, and are responsible for any damage done by employees at loading or unloading facilities, and any other persons unless reported to Chicoda Carriers Inc. at the time the damage occurs.
LESSOR and its drivers will be expected to keep brakes adjusted, hubs filled adequately with oil, tires kept at 100# pressure, surfaces clean, and all lights working at all times. LESSOR will pay all fines AND service call fees due to out-of-service criteria and may be held in breach of this contract.
LESSOR agrees to have periodic maintenance done to the trailer between 60 to 90 days at LESSEE’s expense. This includes all tires, brakes, seals, tarps, etc. Other repairs can be authorized in between periodic inspections and funds made available to the driver via Tchek. LESSOR will be billed back for any repairs made due to negligence, accident, collision, skidding tires, running hubs without oil, etc.
LESSOR agrees to return the trailer in it’s current condition, less normal wear, to a location specified at the time by the LESSOR in Beatrice, NE at termination of agreement. A mileage rate of $3.00 per running mile will be charged back if the trailer is not returned as specified, plus $80 per day past an agreed time for return, plus any other expenses incurred.
LESSOR agrees to have periodic maintenance done to the tractor between 30 to 60 days at LESSOR’s expense. Copies of all inspections, maintenance, and repairs must be submitted to the LESSEE to include in the vehicle file as required by the Department of Transportation.
LESSOR agrees to perform a PRE-TRIP INSPECTION DAILY, and understands that this lease may be subject to termination by LESSEE for any out-of-service violations incurred regarding mechanical and/or log violations as set forth by the FMCSR.