NATIONS EXPRESS INC
SB-2/A, EX-10.10, 2000-11-09
ARRANGEMENT OF TRANSPORTATION OF FREIGHT & CARGO
Previous: NATIONS EXPRESS INC, SB-2/A, EX-10.9, 2000-11-09
Next: PALM BEACH INVESTMENT ADVISERS LLC /FL/, 13F-HR/A, 2000-11-09



<PAGE>

                                                                   Exhibit 10.10

<TABLE>
<CAPTION>

<S>                                                                      <C>
Expediting & Logistics

                                                                         Nations Express Inc.
--------------------------------------------                             --------------------
Print Name - Independent Contractor's Name
                                                                         P.O. Box 19247
--------------------------------------------                             --------------
Independent Contractor's Address
                                                                         Charlotte, NC 28219
--------------------------------------------                             -------------------
City                      St             Zip
                                                                         -----------------------------------
                                                                         Signature of Carrier's Authorized
                                                                         Agent or Employee

-----------------------------------------------------------------
Signature of Authorized Representative or Independent Contractor

-----------------------------------------------------------------
(DBA - Name that matches SS# or FID # used below)

-----------------------------------------------------------------
(Social Security Number or Federal I.D. Number

(This number will be used on Federal Form 1099)


Corporation _______ Individual ________ Partnership________
</TABLE>

IRS W-9 Certification: under penalties of perjury, I certify that the number
shown on this form is my correct tax payer identification number and I am not
subject to backup withholding according to the Internal Revenue Service (IRS).

MOTOR VEHICLE AND HAULING AGREEMENT BETWEEN INDEPENDENT CONTRACTOR AND NATIONS
EXPRESS INC. ("Agreement") (where applicable within this Agreement, the singular
shall be deemed to include the plural, and visa versa and the neuter gender
shall be deemed to include the masculine or feminine).

NATIONS EXPRESS INC. ("CARRIER") (ICC IDENTIFICATION # MC 335260 and
___________________________________________ ("INDEPENDENT CONTRACTOR") are
parties to a written MOTOR VEHICLE AND HAULING AGREEMENT BETWEEN INDEPENDENT
CONTRACTOR AND CARRIER (the "agreement") whereby INDEPENDENT CONTRACTOR has
contracted to CARRIER the equipment owned by INDEPENDENT CONTRACTOR, and
INDEPENDENT CONTRACTOR is providing CARRIER as operator or operators of the
Equipment for the purposes of loading, transporting and unloading freight. The
commodities transported under the Agreement are restricted to general
commodities (except Class A and B explosives, household goods, and hazardous
waste (excluding hazardous waste not subject to any type of governmental
regulations), between points in the United States.

1.   EQUIPMENT: INDEPENDENT CONTRACTOR represents to CARRIER that it holds full
     legal title to the equipment (Identification of Equipment) identified in
     Paragraph (2), and further warrants and represents that the Equipment
     covered by this Agreement is complete with all accessories required by law
     and for safe operation of the Equipment and that the Equipment is in good,
     safe and efficient operating condition as required by government
     authorities and shall be so maintained at INDEPENDENT CONTRACTOR'S expense
     throughout the duration of this Agreement. The choice of location and
     persons to perform any necessary repairs or maintenance is exclusively
     vested with INDEPENDENT CONTRACTOR, ALL POWER EQUIPMENT WHICH IS THE
     SUBJECT OF THIS AGREEMENT IS TO BE SUPPLIED WITH U.S. DOT QUALIFIED
     OPERATORS.

<TABLE>
<S>                                                               <C>
2.       IDENTIFICATION OF EQUIPMENT:                             UNIT NUMBER _______________________________
                                                                  (TO BE ASSIGNED BY CARRIER UPON APPROVAL
                                                                                BY THE GENERAL OFFICE)
<CAPTION>
VEHICLE
-------
<S>                                      <C>                                               <C>
Make                                     Model                                             Year
               -------------------------                  --------------------------------          ----------

Serial No.                               License Number                                    Year
               -------------------------                  --------------------------------          ----------

Empty Wt.                                No. of Axles                   Sleeper        Yes                 No
               -------------------------                  -------------                   ---------           --------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
STRAIGHT TRUCK
--------------

<S>                                         <C>                                 <C>
Load Capacity ____________________ lbs.

Cargo Box - Length ____________ Feet        Height _________ Inches             Width ___________ Inches

Rear Door Type:    Rollup _______________   Swinging Doors  ___________         Air Ride Suspension:  Yes_____ No_____

Rear Door Height ________ Inches            Rear Door Width ______________ Inches

Dock Height ____________ Inches             Lift Gate:  Yes ________   No ________

Securement Devices___________________________________________________________________________________________
                      (Pullet Puller)       (Straps)                        (Other)

<CAPTION>
CARGO VAN
---------
<S>                                         <C>
Load Capacity ____________________ lbs.

Rear Door Height ____________ Feet          Rear Door Width ___________ Inches

Floor Length _______________ Inches         Side Doors: Yes_____ No ______

Floor Width _______________ Inches          Height _________ Inches Width _________ Inches

Securement Devices _______________________________________________________________________
                      (Pullet Puller)       (Straps)                        (Other)
</TABLE>


RECEIPT OF EQUIPMENT: CARRIER hereby acknowledges receipt of the Equipment
described above, which is the Equipment described in the Agreement.

<TABLE>
<S>                                         <C>
Date _____________________________________  By ___________________________________________________
(TO BE ENTERED BY CARRIER'S AUTHORIZED AGENT OR EMPLOYEE UPON ARRIVAL BY THE GENERAL OFFICE)
</TABLE>

3.   DURATION OF AGREEMENT: This Agreement shall be effective as of this date
     entered above and shall remain in effect until terminated in accordance
     with the provisions of this Agreement. The breach by either party of any
     provisions of this Agreement shall immediately terminate all provisions of
     this Agreement, except those provisions relating to indemnification of
     CARRIER by INDEPENDENT CONTRACTOR including those contained in Paragraphs
     10, 15, 18 and 19, which indemnification provisions shall be effective at
     all times. Either party, by giving to the other party twenty-four (24)
     hours written notice of termination, may terminate this Agreement at any
     time.

4.   EXCLUSIVE POSSESSION AND RESPONSIBILITIES: The parties recognize that it is
     a requirement of federal law that the CARRIER shall assume complete
     responsibility for the operation of the Equipment for the duration of the
     Agreement. Accordingly, CARRIER shall be considered as the owner of the
     Equipment for the purpose of subcontracting to other authorized carriers,
     and there may be no subcontracting to any other carrier unless authorized
     in writing by CARRIER in advance. CARRIER has no right to and will not
     control the manner nor prescribe the method of doing that portion of the
     operation which is contracted for in this Agreement by INDEPENDENT
     CONTRACTOR, except such control as can reasonably be construed to be
     required by all lawful regulations. INDEPENDENT CONTRACTOR, reserves the
     right to accept or reject any freight tendered for transportation. Pursuant
     to 49 C.F.R. & 1057.12(c)(4), this paragraph shall not be used in any
     attempt to classify INDEPENDENT CONTRACTOR as an employee of CARRIER.

5.   INDEPENDENT CONTRACTOR'S SHARE OF REVENUE:

     (A)  LINE HAUL REVENUE: Unless otherwise agreed, in writing on a particular
          haul, an amount equal to 62% of the line haul revenue shown on the
          freight bills, or amended bills, to the shippers, consignees, or other
          carrier s for the commodities hauled by the INDEPENDENT CONTRACTOR.

     (B)  ACCESSORIAL CHARGES REVENUE: Unless otherwise agreed in writing on a
          particular haul, an amount equal to ______% of the accessorial charges
          billed to shippers or consignees for the commodities hauled by the
          INDEPENDENT CONTRACTOR except that INDEPENDENT CONTRACTOR shall not be
          paid any part of permit charges, special loading and unloading
          equipment expenses, sufferance warehouse charges, and excess value
          insurance costs, provided, however, that CARRIER'S obligation to pay
          the percentage of any detention accessorial charge is conditioned on
          (1) CARRIER receiving from INDEPENDENT CONTRACTOR a delivery receipt -
          detention report signed by the shipper or consignee: and (2) DOT
          required logs corresponding with the delivery receipt-detention
          report.

     (C)  PROPORTIONATE HAULING REVENUE: For commodities that are not hauled by
          the same contractor from the origin to the destination points
          specified on the bill of lading of other shipping documents, the
          delivering contractor will receive a

                                       2
<PAGE>

          pro-rate share of INDEPENDENT CONTRACTOR'S revenue applicable to the
          haul based on the direct miles from the point of that INDEPENDENT
          CONTRACTOR'S pick-up to destination, as compared to the direct miles
          from origin to point of pick-up to destination.

     (D)  REVENUE DEDUCTIONS: The revenue payable to the INDEPENDENT CONTRACTOR
          under Subparagraphs (A) through (C) above, shall be reduced by any and
          all expenses CARRIER has borne that, under this Agreement, INDEPENDENT
          CONTRACTOR is obligated to bear, including, but not limited to, the
          following: (1) the amount of any cartage or local pick-up or delivery
          charges or expenses incurred by CARRIER on the movement; (2) the
          amount of any revenue paid by CARRIER to other contractor for the
          movement under Subparagraph (C) of this paragraph; (3) the amount of
          any access value charges; and (4) the stated percentage under
          Subparagraph (A) above of any brokerage fees or commissioned agent
          charges for the haul.

6.   ESCROW: INDEPENDENT CONTRACTOR and CARRIER shall establish an escrow fund.
     The total amount of such escrow fund shall in the amount of $____________
     per unit and shall be paid by INDEPENDENT CONTRACTOR at the rate of not
     more than $______________ per pay period. Such escrow fund shall be
     returned to INDEPENDENT CONTRACTOR only upon termination of this Agreement
     and the balance due shall be refunded no later than 45 days after such
     termination. The escrow fund may at any time be applied by CARRIER to the
     satisfaction of any claims or debts arising out of the operation and
     pursuant to the terms of this Agreement including, but not limited to,
     advances made to any employees of INDEPENDENT CONTRACTOR, cargo delay,
     liability or property damage claims, insurance premiums, identification
     devices and cash values of permits not returned to CARRIER. CARRIER will
     provide an accounting to INDEPENDENT CONTRACTOR of any transaction
     involving the escrow fund, which accounting shall be shown on the
     settlement sheet produced at the time the transaction was made. INDEPENDENT
     CONTRACTOR may at any time request and receive an accounting for
     transactions involving the escrow fund.

7.   PRE-TRIP SETTLEMENT / ATTORNEY IN FACT, INDEPENDENT CONTRACTOR specifically
     appoints and authorizes CARRIER as its attorney-in-fact to pay, at
     CARRIER's sole discretion, pre-trip settlement to INDEPENDENT CONTRACTOR's
     drivers for operating expenses on behalf of INDEPENDENT CONTRACTOR. CARRIER
     shall not be liable for any pre-trip settlement made to INDEPENDENT
     CONTRACTOR'S drivers and such pre-trip settlements shall be deducted from
     INDEPENDENT CONTRACTOR's revenue hereunder.

8.   IDENTIFICATION DEVICES: All identification of CARRIER required by law or
     regulation relating to identification shall be secured in the name of
     CARRIER and shall be displayed on the Equipment in accordance with all
     applicable regulations during the period this Agreement remains in effect.
     All identification devices and documents are the sole property of CARRIER.
     Any such identification shall be removed from said Equipment by INDEPENDENT
     CONTRACTOR and returned to CARRIER by first class mail addressed to
     CARRIER's address or in person immediately upon termination of this
     Agreement. All identification cost shall be borne by INDEPENDENT
     CONTRACTOR. INDEPENDENT CONTRACTOR shall also be responsible to CARRIER for
     any loss of character suffered by CARRIER for failure to return such
     identification.

9.   RECEIPT FOR EQUIPMENT: Upon taking possession of the Equipment, CARRIER
     shall furnish to INDEPENDENT CONTRACTOR a copy of this haulage agreement,
     which shall be the receipt specified in 49 C.F.R. S 1057.11(b), and the
     certification statement specified in 49 C.F.R. S 1057.11(c).

10.  COST OF OPERATION: Except as specifically provided herein INDEPENDENT
     CONTRACTOR shall furnish, provide and pay all costs of operations which
     shall include, but not be limited to, the items listed in subparagraph (a)
     through (k) of this paragraph and if CARRIER is called upon to pay any of
     these costs, such payment shall be considered a pre-trip settlement to
     INDEPENDENT CONTRACTOR (and a cost of operation) and CARRIER is entitled to
     reimbursement.

     (a)  All motor fuel, oil, tires and all equipment, accessories, or devices
          used in connection of the equipment;

     (b)  All maintenance costs including repairs;

     (c)  All taxes and assessments, premiums and other payments due by reason
          of the payment by INDEPENDENT CONTRACTOR of wages or other earnings to
          its employees;

     (d)  Base plates, including apportioned or prorated base plates, fuel
          permits and all other permits required to operate the Equipment or any
          of it legally (except overdimension/overweight permits), empty miles,
          detention, accessorial charges, licenses, and all other tax payments
          required of or on the Equipment or on the use or operation thereof,
          including all reports required of INDEPENDENT CONTRACTOR connected
          therewith, and all ferry, bridge and highway tolls;

     (e)  All fines and penalties resulting from acts or omissions of
          INDEPENDENT CONTRACTOR and any monies paid by CARRIER in the form of
          penalties to a government or regulatory body because of some act or
          omission on the part of INDEPENDENT CONTRACTOR.

     (f)  Comprehensive insurance coverage for collision, fire and theft and any
          other type of insurance not specially addressed herein, if INDEPENDENT
          CONTRACTOR desires such coverage;

     (g)  Federal Highway Use Tax on the Equipment, Federal, State and City
          Income Taxes and any Self-Employment Taxes;

     (h)  All sales, use, excise and other taxes due to ownership or operation
          of Equipment in the jurisdiction imposing such taxes;

                                       3
<PAGE>

     (i)  All other expenses incurred in the operation of the Equipment,
          including, but not limited to, empty mileage, expenses incurred to
          transfer load and/or secure additional equipment to complete delivery
          in case of breakdown or delay;

     (j)  In the event that the duration of this Agreement is less than six
          months, INDEPENDENT CONTRACTOR shall reimburse CARRIER for the cost of
          decals, logos and all pre-qualification drug and alcohol test required
          by law;

     (k)  Notwithstanding the above, CARRIER shall be responsible for and pay
          fuel and mileage type taxes, which obligation shall not include retail
          sales and use or federal excise type taxes.

11.  LOADING AND UNLOADING: Where CARRIER's tariff requires that loading and/or
     unloading be performed by CARRIER, INDEPENDENT CONTRACTOR shall be
     responsible for and shall perform such loading and/or unloading at no
     additional compensation (unless the loading and unloading is the subject of
     an accessorial charge within the meaning of subparagraph 5 (b) above, in
     which case the provisions of subparagraph 5 (b) shall apply):

12.  Permits: All fuel permits and other permits issued in CARRIER's name shall
     be returned to CARRIER on termination of this Agreement. CARRIER shall
     refund INDEPENDENT CONTRACTOR any residual value permits as follows: The
     amount refunded shall be either (1) the credit allowed by any state
     allowing such credit or (2) the prorate cost for the balance of the life of
     the permit where it is either reused by CARRIER or resold to another
     entity. CARRIER need only use reasonable efforts to reuse or resell any
     unused portion of returned permits. Where permits can neither be credited
     or resold, no refund shall be made. INDEPENDENT CONTRACTOR shall be liable
     to CARRIER for any expense, including reasonable attorney's fees, caused to
     CARRIER by INDEPENDENT CONTRACTOR's failure to comply with this provision.

13.  SETTLEMENTS: CARRIER shall settle with INDEPENDENT CONTRACTOR on the 15th
     and last day of each month, there will be a 2 week lag in INDEPENDENT
     CONTRACTOR settlements. All paperwork turned in for trips completed between
     the 1st and the 15th of the month, will be settled on the last day of the
     current month, providing paperwork is in the Corporate office by the 20th
     day of the month. All paperwork turned in for trips completed between the
     15th and the end of the month, will be settled on the 15th day of the
     following month, providing paperwork is in the Corporate office by the 5th
     day of the month. INDEPENDENT CONTRACTOR must submit a settlement sheet,
     bill of lading, signed delivery receipt, trip mileage report, and driver
     daily logs as required by the regulations of the U.S. department of
     Transportation (DOT) or any state or provincial authority having
     jurisdiction, and in the case of C.O.D. hauls, delivery of certified check
     or money order to CARRIER. CARRIER will hold the final settlement due under
     this Agreement until INDEPENDENT CONTRACTOR delivers to CARRIER the
     identification devices INDEPENDENT CONTRACTOR is required to return to
     CARRIER pursuant to Paragraph 8. In the event that the identification
     devices are lost or stolen, a letter certify their removal, and the
     satisfaction of any other reasonable requirement made by CARRIER, will
     satisfy the requirement to return said devices for the purpose of the
     timing of final settlement.

14.  INSPECTION OF FREIGHT DOCUMENTS: CARRIER will furnish INDEPENDENT
     CONTRACTOR, at or before the time of settlement, a computer-generated
     document containing the same information as a freight bill, or INDEPENDENT
     CONTRACTOR may view during business hours a copy of any actual document
     underlying the computer-generated document. CARRIER may at its discretion
     delete the names of shippers and consignees shown on any such underlying
     document to be inspected by INDEPENDENT CONTRACTOR.

15.  PRE-TRIP SETTLEMENTS: In any case where INDEPENDENT CONTRACTOR has secured
     a Pre-trip settlement of any kind from CARRIER, or if there shall be any
     other amounts due CARRIER from INDEPENDENT CONTRACTOR, or INDEPENDENT
     CONTRACTOR's agents or employee for any reason whatsoever, or any
     deductions for any insurance payment authorized by INDEPENDENT CONTRACTOR,
     CARRIER shall be authorized to deduct the amount of such pre-trip
     settlements or other amount due CARRIER from any trip settlement, from the
     escrow fund, or from any monies due or becoming due to INDEPENDENT
     CONTRACTOR from CARRIER under this Agreement, and if such monies shall be
     sufficient to cover the sum due CARRIER, then INDEPENDENT CONTRACTOR will
     on demand pay to CARRIER all sums remaining due CARRIER. INDEPENDENT
     CONTRACTOR, its agents or employees shall not charge any purchases to
     CARRIER and if, in violation of this paragraph, INDEPENDENT CONTRACTOR, or
     its employees or agent shall charge any purchase to CARRIER and if CARRIER
     shall be called upon to pay the parties acknowledge that in addition to any
     other remedy available to CARRIER under this Agreement, such sums paid by
     CARRIER be treated as pre-trip settlements made to INDEPENDENT CONTRACTOR
     and shall be recoverable under the terms hereof. CARRIER shall furnish
     INDEPENDENT CONTRACTOR a written explanation and itemization of all such
     deductions.

16.  CHARGE BACKS: CARRIER shall charge back to INDEPENDENT CONTRACTOR at time
     of payment or settlement, any expenses CARRIER has borne that, under this
     Agreement, INDEPENDENT CONTRACTOR is obligated to bear. Such expenses shall
     be deducted from the amount of INDEPENDENT CONTRACTOR's compensation and
     shall include but not limited to, those expenses set forth in this
     Agreement as well as all comcheck (or similar service) pre-trip
     settlements, all pre-trip settlements deposited electronically on a debit
     card (Nations Express Card) and all pre-trip settlements given after a
     shipment has been rendered by CARRIER and accepted by INDEPENDENT
     CONTRACTOR, C.O.D., and freight collect remittance due CARRIER. CARRIER's
     expense in obtaining and administering any insurance coverage on behalf of
     INDEPENDENT CONTRACTOR, required under subparagraph 8 (a) hereunder, cargo
     claims, public liability damage (laden or unladen), property damage, delay
     claims, communication system costs, trailer utilization fees, overweight
     service fees, advances, overpayments in prior payments or settlements,
     towing charges, insurance deductibles, reasonable attorney's fees incurred
     in reducing potential liabilities arising out of, or in connection with
     INDEPENDENT CONTRACTOR's actions or failure to act under the terms of the
     Agreement, and all state tax licenses, plates, permits, and stamps. CARRIER
     shall provide INDEPENDENT CONTRACTOR with a written explanation and
     itemization of any charge back deduction taken from compensation, money
     owed INDEPENDENT CONTRACTOR or money held in escrow before such a deduction
     is made. If INDEPENDENT CONTRACTOR has entered into agreements with CARRIER
     other than this Agreement, then INDEPENDENT CONTRACTOR understands and
     acknowledges that CARRIER may charge back to INDEPENDENT CONTRACTOR under
     this Agreement at the time of payment or settlement, any expense CARRIER
     has borne

                                       4
<PAGE>

     under such agreement that INDEPENDENT CONTRACTOR is obligated to bear, or
     that is due and owing to CARRIER under such agreement.

17.  SELECTION OF INDEPENDENT CONTRACTOR's SUPPLIERS: INDEPENDENT CONTRACTOR is
     not required to purchase or rent any products, equipment or services from
     CARRIER as a condition of entering this Agreement.

18.  INSURANCE AND CLAIMS: The parties hereto understand that under the
     regulations of Interstate Commerce Commission, CARRIER is required and
     agrees to maintain insurance coverage for the public pursuant to Commission
     Regulations under 49 U.S.C.ss.10927 and that CARRIER's policy will satisfy
     the ICC requirements. INDEPENDENT CONTRACTOR shall be responsible for 80%
     (percent) of the general liability and non-trucking (bobtail unladen)
     insurance cost for each individual piece of Equipment that the INDEPENDENT
     CONTRACTOR has leased with NATIONS EXPRESS INC., CARRIER's policy maintains
     no fault where required, uninsured motorist, or underinsured motorist
     coverage, no additional policy will be required to be purchased.
     INDEPENDENT CONTRACTOR shall indemnity and hold CARRIER harmless from any
     and all claims, losses, damages or expenses, including reasonable
     attorney's fees, sustained if the Equipment or any part of it, or any
     equipment provided by CARRIER, is not being operated on behalf of CARRIER.
     In addition to pursuing all rights available under law or equity, CARRIER
     may withhold payment of any and all sums then and thereunder due
     INDEPENDENT CONTRACTOR to the extent of such claims, losses, damages or
     expenses or to a reasonable estimate there of until their final
     determination, which shall then be deducted to the satisfaction thereof,
     and if monies due INDEPENDENT CONTRACTOR shall be insufficient, INDEPENDENT
     CONTRACTOR shall pay on demand all remaining sums due CARRIER.

     (a)  INDEPENDENT CONTRACTOR shall procure, carry and maintain public
          liability and property damage insurance whenever the Equipment is or
          is not being operated on behalf of CARRIER in a combined single limit
          of not less than One Million Dollars ($1,000,000.00) for injury to any
          person or for damages to property in any one occurrence. INDEPENDENT
          CONTRACTOR's policy shall name CARRIER and affiliates as additional
          insureds, and shall provide (1) for waiver of underwriter's
          subrogation rights against each such additional insured, (2) shall
          apply whenever the Equipment is either under a load, bobtailing or
          deadheading, and (3) shall be primary with respects to all insureds.
          INDEPENDENT CONTRACTOR expressly acknowledges that it shall be solely
          responsible for any loss in excess of the policy limit. To the extent
          INDEPENDENT CONTRACTOR does not provide CARRIER with a copy of a
          General Liability Policy including, Non-Trucking Use - Broad Form
          Unladen Policy satisfying the above criteria. INDEPENDENT CONTRACTOR
          understands and agrees that in consideration for being covered by
          CARRIER'S POLICY and/or CARRIER assuming liability for any loss within
          the applicable self-retention amount, CARRIER shall be authorized to
          lessen INDEPENDENT CONTRACTOR's line haul revenue in accordance with
          the provisions of subparagraph 5(a) of this Agreement. If CARRIER
          provides such coverage to INDEPENDENT CONTRACTOR, INDEPENDENT
          CONTRACTOR shall receive a Certificate of Insurance evidencing the
          aforementioned policy, the name of the insurer, the policy number, the
          effective dates of the policy and the amounts of coverage. CARRIER is,
          and shall be, the agent/representative of INDEPENDENT CONTRACTOR
          regarding acquisition and termination or cancellation of the
          certificate and for deduction of the cost. In the event the premium
          shall change or vary, as determined by the insurer. CARRIER shall
          advise INDEPENDENT CONTRACTOR of such change in premium and deduction
          in writing and INDEPENDENT CONTRACTOR'S failure to object in writing
          or terminate the coverage provided shall constitute and express
          consent and authorization to CARRIER to deduct and charge the
          INDEPENDENT CONTRACTOR back for such revised amount, INDEPENDENT
          CONTRACTOR may cancel the Certificate of Insurance at any time as
          INDEPENDENT CONTRACTOR elects by written notice to CARRIER, provided,
          however, that such cancellation does not affect INDEPENDENT
          CONTRACTOR'S obligations and undertaking in this Agreement with
          CARRIER. INDEPENDENT CONTRACTOR understands that the Policy referred
          to in this paragraph would not apply to injury or damage to
          INDEPENDENT CONTRACTOR, its agents or employees, nor to collision or
          comprehensive coverage to the Equipment and it is further understood
          that if INDEPENDENT CONTRACTOR desires or is required to have such
          coverage it shall have the duty to obtain it and pay for it.

     (b)  If INDEPENDENT CONTRACTOR elects to purchase physical damage coverage
          on the Equipment through CARRIER, paragraph 16 of this Agreement shall
          apply to such election. CARRIER shall not be liable for any loss of or
          damage to the Equipment and INDEPENDENT CONTRACTOR waives all claims
          it may have in the future against CARRIER for loss or damage to any or
          all of the Equipment. If INDEPENDENT CONTRACTOR elects to purchase the
          insurance coverage referred to in this subparagraph. CARRIER (1) will
          furnish INDEPENDENT CONTRACTOR a copy of the policy upon request and
          (2) will arrange for a certificate or insurance to be furnished
          INDEPENDENT CONTRACTOR said certificate to show the name of the
          insurer, the policy number, the effective dates of the policy, the
          amounts and types of coverage, the cost to INDEPENDENT CONTRACTOR for
          each type or coverage and the deductible amount for which INDEPENDENT
          CONTRACTOR may be liable. If INDEPENDENT CONTRACTOR has requested
          CARRIER to obtain on INDEPENDENT CONTRACTOR's behalf and at its
          expense physical damage coverage on the Equipment, the terms and
          conditions and the amounts of premiums payable therefor shall be set
          forth in the application for PHYSICAL DAMAGE INSURANCE. It shall be
          INDEPENDENT CONTRACTOR's sole responsibility to review and confirm the
          terms of the policy, raise any questions or objections thereto and
          CARRIER shall have no obligation to provide any specific policy or
          terms and conditions.

     (c)  INDEPENDENT CONTRACTOR shall be responsible for any public liability
          claim or property damage claim, including any legal or other expenses
          related thereto, that arises out of INDEPENDENT CONTRACTOR's or its
          agents or employees operation or use of the Equipment. INDEPENDENT
          CONTRACTOR's responsibility for such claims shall be limited to a
          maximum of One Thousand Dollars ($1,000.00) per each type of claim.
          INDEPENDENT CONTRACTOR may be relieved of such responsibility if, at
          CARRIER's sole discretion, CARRIER determines that the claim is
          non-chargeable.
<PAGE>

     (d)  INDEPENDENT CONTRACTOR shall be responsible for any claims resulting
          from cargo shortages, cargo damage, or delays in transporting
          shipments due to its fault, provided, however that INDEPENDENT
          CONTRACTOR's liability shall be limited as specified. INDEPENDENT
          CONTRACTOR will be charged a maximum of One Thousand Dollars
          $1,000.00) per shipment for loss, damage or delay to cargo for
          negligence as determined by CARRIER. CARRIER will provide INDEPENDENT
          CONTRACTOR with a written explanation and itemization of any; intended
          deduction for cargo loss or damage or delays in transportation made
          from money owed to INDEPENDENT CONTRACTOR before deduction is made.

     (e)  INDEPENDENT CONTRACTOR is responsible for all cost of cleaning up any
          accident or spills involving the Equipment of the INDEPENDENT
          CONTRACTOR haulage.

19.  HOLD HARMLESS: INDEPENDENT CONTRACTOR agrees to defend, indemnify and hold
     harmless CARRIER from any direct, indirect and consequential loss, damage,
     fine, expense, including reasonable attorney's fees, action, claim for
     injury to persons, including death, and damage to property which CARRIER
     may incur arising out of or in connection with INDEPENDENT CONTRACTOR's
     obligations and/or haulage under this Agreement, excluding any loss
     resulting solely from the negligent act or omission of CARRIER, its
     officers, agents or employees.

20.  WORKER'S COMPENSATION: This Agreement is intended by the parties to create
     the relationship of CARRIER and INDEPENDENT CONTRACTOR and not that of an
     employer/employee nor master/servant relationship. As such, neither
     INDEPENDENT CONTRACTOR nor INDEPENDENT CONTRACTOR's employees or agents are
     entitled to Worker's Compensation coverage or benefits from CARRIER.
     Neither INDEPENDENT CONTRACTOR nor its employees, agents or servants, nor
     any individual providing any services of any kind to INDEPENDENT
     CONTRACTOR, are to be considered employee of CARRIER at any time, under any
     circumstance or for any purpose. INDEPENDENT CONTRACTOR shall assume full
     and complete responsibility for all employees employed by it in the
     performance of all duties and obligations under this Agreement.

21.  NO UNAUTHORIZED PASSENGERS/NO MORE THAN ONE AUTHORIZED PASSENGER AT A TIME:
     No passenger shall be permitted to travel in the Equipment without prior
     written authorization from CARRIER. Passenger must be minimum of 18 years
     of age, and must sign a waiver of liability as provided in the Passenger
     Authorization Form to be provided by CARRIER. In no event shall more than
     one authorized passenger be permitted at any time. INDEPENDENT CONTRACTOR's
     may obtain a annual Passenger Authorization Form for Spouse, all other
     Passenger Authorization Forms will be reviewed on a individual basis
     depending on relationship to INDEPENDENT CONTRACTOR or INDEPENDENT
     CONTRACTOR's employee or agent. CARRIER will require a photo ID
     (identification) on file for each passenger.

22.  REFLECTIVE TAPE MARKINGS: INDEPENDENT CONTRACTOR agrees that all equipment,
     provide to CARRIER by INDEPENDENT CONTRACTOR shall be properly marked with
     reflective tap as specified by CARRIER.

23.  INSPECTION OF EQUIPMENT: INDEPENDENT CONTRACTOR: shall, submit at its
     expense, the Equipment for inspection at the time this Agreement is
     executed. There after as required by regulatory agencies, INDEPENDENT
     CONTRACTOR will submit the Equipment for inspection no later than every
     one-hundred-twenty (120) days, at the INDEPENDENT CONTRACTOR's expense. If
     the initial inspection provided for in this paragraph reveals that the
     Equipment does not comply with any aspect of applicable government
     requirements, this Agreement shall not go into effect until the Equipment
     fully complies with said government requirements at INDEPENDENT
     CONTRACTOR's expense. If any inspection conducted after this Agreement goes
     in to effect reveals that any of the Equipment does not comply with any
     aspect of applicable government requirements, the Equipment must be made to
     comply with said requirements by INDEPENDENT CONTRACTOR at its expense
     within a reasonable time as determined by CARRIER.

24.  MAINTENANCE RECORDS: INDEPENDENT CONTRACTOR shall, as directed by CARRIER,
     forward to CARRIER all maintenance records covering the Equipment required
     by regulations of the Department of Transportation.

25.  PROCEDURES FOR SUBCONTRACTING: As noted in paragraph 4, it is a requirement
     of federal law that CARRIER shall have exclusive possession, control, and
     use of the Equipment for the duration of the Agreement, and that CARRIER
     shall assume responsibility for the operation of the Equipment for the
     duration of this Agreement, it is further noted in Paragraph 4 that CARRIER
     shall be considered as owner of the Equipment for the purpose of
     subcontracting to other authorized carriers, and there may be no
     subcontracting to any other carrier unless authorized in advance. CARRIER
     recognizes, however, that INDEPENDENT CONTRACTOR may wish from time to time
     to arrange for the subcontracting of its Equipment and services to other
     carriers, and in such cases INDEPENDENT CONTRACTOR agrees that the
     following procedures shall be followed. As a condition precedent to
     entering into an arrangement with carriers other than CARRIER, INDEPENDENT
     CONTRACTOR shall: (a) obtain valid carrier information (name, address,
     [CC/MC number, phone number, contact name of carrier); (b) call CARRIER's
     main office and provide CARRIER with information about the carrier and
     about the load; (c) receive and record release number, if trip lease is
     approved. In the event a carrier is not approved, a release number will not
     be given and INDEPENDENT CONTRACTOR may not enter into a trip-lease
     agreement; (d) any payments in advance offered to INDEPENDENT CONTRACTOR by
     any other carrier must be refused; (e) Present the and Indemnification Form
     attached hereto to such carriers and that such carriers sign and return the
     Acknowledgment and Indemnification form to CARRIER prior to transport of
     any load under the trip-lease. Upon delivery of the load, INDEPENDENT
     CONTRACTOR shall: (a) obtain a signed proof of deliver; (b) indicate
     release number on each piece of paper work; and (c) mail all paperwork,
     including a copy of the signed-off trip-lease agreement, placards, shipping
     order or bill of lading, delivery receipt and logs to CARRIER, attention of
     CARRIER Contractor Settlements. In the event that INDEPENDENT CONTRACTOR
     subcontracts without CARRIER's approval and without CARRIER's authorized
     release number, in addition to any other right, remedy or claim CARRIER may
     have against INDEPENDENT CONTRACTOR for INDEPENDENT CONTRACTOR's failure to
     obtain the required approval and authorization of CARRIER, INDEPENDENT
     CONTRACTOR shall be charged back the amount of 12% of the revenue.
<PAGE>

26.  AUTHORIZED USE OF EQUIPMENT: If, during the period of time this agreement
     is in effect, INDEPENDENT CONTRACTOR, or any employee or agent of
     INDEPENDENT CONTRACTOR is operating any of the Equipment covered by this
     Agreement in any manner varying from the regulations or beyond the scope of
     the operating authority of CARRIER, or is using any of said equipment for
     its own purposes or for the purposes of persons, firms or corporations
     other than CARRIER (except pursuant to subcontracts approved in advance by
     CARRIER as provided herein), or for any other purpose not permitted by this
     Agreement, then this Agreement and each and every provision hereof, (except
     those provisions relating to indemnification of CARRIER by INDEPENDENT
     CONTRACTOR as set forth in this Agreement including paragraphs 10, 15, and
     18 of this Agreement, which indemnification provisions shall be effective
     at all times) shall at CARRIER's option, be deemed terminated as of the
     time that such unauthorized use occurred, and all obligations and
     liabilities of CARRIER under this Agreement shall be deemed to have ceased
     and terminated as of the time that such unauthorized use.

27.  DUE DILIGENCE AND COOPERATION WITH CARRIER ON CLAIMS: INDEPENDENT
     CONTRACTOR warrants that cargo which is loaded on the Equipment shall be
     delivered to the consignee with reasonable diligence, speed and care as
     required by shipper or in bills of lading. INDEPENDENT CONTRACTOR shall
     report all accidents, cargo exceptions or damages of any nature
     immediately. INDEPENDENT CONTRACTOR shall also provide written reports,
     affidavits or other assistance as may be deemed necessary to investigate,
     settle or litigate any accident, claim or potential claim, by or against
     CARRIER.

28.  FEE AND OTHER ADJUSTMENTS: All fees and rates of INDEPENDENT CONTRACTOR'S
     Share of Revenue herein are subject to adjustment by CARRIER. No less than
     fifteen (15) days prior to any adjustment INDEPENDENT CONTRACTOR will be
     notified in writing by CARRIER of the adjustment, the amount of adjustment
     and the date of adjustment is proposed to take effect. If INDEPENDENT
     CONTRACTOR does not agree to the fee or rate change, it shall notify
     CARRIER on or before the proposed effective date of adjustment. Acceptance
     of a tender after the proposed effective date of the adjustment will
     indicate understanding and acceptance by INDEPENDENT CONTRACTOR of the new
     rate amount.

29.  C.O.D. SHIPMENTS: In handling C.O.D. or order/notify shipments, INDEPENDENT
     CONTRACTOR, its agent or employees, will perform as indicated on the
     shipping order, will call the originating terminal to report the C.O.D. or
     order/notify shipment, and will accept only a certified check, cashiers
     check or money order made payable to CARRIER for the shipment and will
     remit to CARRIER no later than the business day next following the day of
     delivery the full amount specified on the freight bill, including
     transportation and C.O.D. charges. In the event that INDEPENDENT CONTRACTOR
     accepts any other method of payment INDEPENDENT CONTRACTOR shall bear the
     risk of loss. In the event of nondelivery of such a shipment, INDEPENDENT
     CONTRACTOR, or its agent or employee will advise CARRIER of such
     nondelivery no later than the business day next following the day of
     attempted delivery or collection.

30.  INDEPENDENT CONTRACTOR RELATIONSHIPS: In recognition of the INDEPENDENT
     CONTRACTOR relationship which exists between the parties, it is
     acknowledged that INDEPENDENT CONTRACTOR has the right to determine the
     manner and means of performing all haulage hereunder. INDEPENDENT
     CONTRACTOR has the right to decide what haulage to perform under this
     Agreement; provided however, that when a load is accepted by INDEPENDENT
     CONTRACTOR the haulage will be performed in accordance with the terms of
     shipper and consignee for the transportation of the cargo as well as
     applicable law as and governmental regulations including the federal
     Uniform Bills of Lading Act. The parties have so provided in this Agreement
     and in this paragraph in recognition of the various circumstance that may
     develop in the haulage performed under this Agreement, and both parties
     acknowledge that their respective acts and omissions in their performance
     under this Agreement are only to be construed, received and acted upon by
     the other in the context of the INDEPENDENT CONTRACTOR relationship
     provided for herein with each party retaining control of the manner and
     means to perform respectively its obligations under this Agreement. The
     terms of this paragraph shall be controlling and govern the interpreting,
     construing and applying of this Agreement and the performance of the
     parties hereunder.

31.  EQUAL EMPLOYMENT OPPORTUNITY: The services and Equipment specified herein
     will be furnished by INDEPENDENT CONTRACTOR in full compliance with all
     applicable federal, state and local laws and regulations pertaining to
     government contracts and subcontracts, including, without limitation,
     Executive Order 11246. Where applicable, a separate certificate of
     compliance with certain laws, regulations and Executive Orders must be
     executed by INDEPENDENT CONTRACTOR, and said certificate to be supplied by
     the CARRIER, will also include additional terms and conditions, which,
     where required by law, regulations or Executive Order, shall be deemed to
     be incorporated into this Agreement by reference and shall be made an
     internal and binding part hereof.

32.  ENTIRE AGREEMENT: This agreement contains the entire agreement between
     CARRIER and INDEPENDENT CONTRACTOR and supersedes, cancels and revokes all
     other contracts between the parties relating to the Equipment. There are no
     representation or warranties, either oral or written, except those
     contained in this Agreement. The provisions of this Agreement may be
     modified only by written agreement executed by the party against whom
     enforcement of such modification is sought.

33.  SEPARABILITY AND SAVINGS: If any sections or parts of sections of this
     Agreement shall be held to be invalid for any reason whatsoever, the
     provisions of this Agreement shall be void only as to such section,
     sections or part or parts of sections, and this agreement shall remain
     otherwise binding between the parties hereto. Any section, or part or parts
     or sections voided by operation of the foregoing shall be replaced with
     provisions which shall be as close as the parties original intent as
     permitted under applicable law.

34.  NON-WAIVER: The failure or refusal of either party to insist upon the
     strict performance of any provision of this Agreement, or to exercise any
     right in any one or more instances or circumstance shall be construed as a
     waiver or relinquishment of such provision or right, nor shall such failure
     or refusal be deemed a custom or practice contrary to such provision or
     right.

35.  NOTICES: Any notice required or permitted by this Agreement shall be deemed
     conclusively to have been given when deposited in the United States mail
     properly addressed with first class postage prepaid. The address of each
     party shall be first set forth herein, and
<PAGE>

     the address to which notices are to be sent may be changed by providing the
     other party written notice of change of address. Where INDEPENDENT
     CONTRACTOR provides notice of change of its address, the change of address
     will be effective upon CARRIER's sending acknowledgement of the notice.

36.  Acceptance of tender of load after the effective date of this Agreement
     will indicate understanding and acceptance by INDEPENDENT CONTRACTOR of the
     terms and conditions set forth herein.

37.  TERMINATION: The INDEPENDENT CONTRACTOR will, at the time this Contract is
     terminated, remove all CARRIER identification and property including but
     not limited to placards, single state registration statement, permits and
     receipts to the Corporate Office in Charlotte, North Carolina.

     If the INDEPENDENT CONTRACTOR fails to return CARRIER'S property or freight
     to CARRIER or remove all CARRIER identification from the equipment to
     CARRIER with fifteen (15) days after termination of this Contract,
     INDEPENDENT CONTRACTOR will pay CARRIER an initial payment of damages in
     the amount of One Thousand Dollars ($1,000.00) and CARRIER may pursue all
     other remedies against INDEPENDENT CONTRACTOR.

     If INDEPENDENT CONTRACTOR fails to perform its obligation under this
     Contract, CARRIER may, in addition to any other remedy provided by law or
     under this Contract, complete INDEPENDENT CONTRACTOR's obligations and
     charge INDEPENDENT CONTRACTOR for any expenses associated with completing
     INDEPENDENT CONTRACTOR'S obligations.


© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission