The National Owner Operators Association
WM On Time Trucking LLC
6143 186th Street Fresh Meadows, NY 11365
OWNER OPERATOR
STANDARD LEASE ON AGREEMENT LONG HAUL
The parties involved in this lease are the motor carrier WM On Time Trucking LLC MC# 1082408, Located in: 6143 186th Street Fresh Meadows, NY 11365 EIN # 84-4091571 And the contractor: The lease is effective on. ,WM On Time Trucking LLC will be referred to as the Company and the leased party will be referred to as the Contractor for the remainder of this document. Any disputes involving this contract will be decided in and by the laws of the State of New York in the County of Queens or in such other proper jurisdictions at the option of WM On Time Trucking LLC.
A. Contractor agrees to lease to the Company, and the Company agrees to lease form Contractor, the motor vehicle equipment (as defined in 49 CFR 390 I; THE "equipment") shown on each rider (exhibit C) to this agreement for the purpose of motor carrier transportation by the Company under the Companies' DOT operating authority. This agreement constitutes a separate lease as to each piece of equipment covered by a rider Contractor represents that it has the right and power to lease the equipment and agrees to notify the Company prior to making any change in the equipment status, such as selling, trading, or replacing the equipment. The Contractor agrees not to lease the equipment to any third parties without the prior written consent of the Company. B. The Company shall have exclusive possession, control and use of the equipment and have full responsibility for the operation of the equipment with respect to the public shippers, and Federal and state regulatory and licensing authorities for the duration of the lease. However, this subparagraph is set forth solely to conform to STB regulations and shall be used for any other purposes, including an attempt to classify a Contractor as an employee of the Company. This language is required by 49 CFR 376.12 (c) (l) but is not intended to affect or suggest that Contractor is anything besides an independent contractor, as set forth in 49 USC 14102. Contractor shall have financial responsibility for ownership of the equipment. The Company shall not be liable for any damage to the equipment, except for damage caused by the Company or its employees.
A. Contractor agrees to furnish a driver qualified by the Company to drive the tractor included in their equipment. In order to be qualified, a driver must meet all the requirements of all applicable federal, state, and municipal laws and ordinances, and all rules and regulations of the STB, DOT (including those set forth in 49 CFR 391) and any other regulatory body having authority. In addition, in order to be qualified, a Driver must meet all the criteria and requirements of the company, including submitting to tests, both per-qualification and if the agreement does not imply that the contractor has been qualified as a driver. Contractor agrees to
cause all drivers or prospective drivers to furnish to the Company any documentation or information regarding the driver that the Company may reasonably request. The Company reserves the right to disqualify a driver (including the contractor if he is a driver) at any time; a disqualified driver will not be permitted to drive the equipment. Failure by a driver to follow all the requirements of paragraph 3c may cause his disqualification by the Company. Disqualification of Contractor as a driver does not mean that this agreement has been terminated. C. Contractor agrees to cause the driver to perform their duties in a manner satisfactory to the Company and its customers, to follow all operational procedures of the Company as established from time to time, and to deliver to the Company all trip paperwork (bills of lading, proof of delivery receipts, log books, trip sheets with fuel tickets and other items reasonably required by their Company to evidence receipt of transportation and delivery of commodities) within 10 days of delivery.
A. Contractor agrees to locate and accept rate and commodities for shipment either through brokers or shippers. All broker or shipper contracts and rate confirmations shall be accepted and signed by the Company officer. Contractor is responsible for payment of the full invoice billed until it’s paid by the brokers or shippers. Contractor is responsible for ensuring proper loading and unloading of such commodities (including ensuring that the load is of legal weight and size), to review all shipping documents for loads of commodities carried and to move the commodities in a safe, efficient and prompt manner. Contractor agrees to follow all operating procedures, rules and regulations from time to time established by the Company, the STB, the DOT and any other Federal or state regulatory body having authority. B. Contractor agrees to maintain, at its own expense, the equipment and any leased or owned trailers pulled by the equipment in safe operating condition in accordance with safety regulations and requirements of the Company, the STB, the DOT and any other Federal or state regulatory body having authority. Contractor shall submit the equipment to the company or its agents for periodic inspection. If the Company determines that the equipment is unsafe for any reason, the Contractor shall immediately repair the equipment. Fines for Out of Services on a DOT Inspection will be charged per the Safety Policy. Additionally, the Contractor shall at its own cost, have the equipment annually inspected, as required by 49 CFR 396.17. Contractor must
E. Contractor agrees to indemnify, defend and hold the Company harmless from and against all claims, losses, damages or expensed (including all cost and reasonable legal fees) arising out of third party claims for personal injury or property damage resulting from operation of the equipment, and from the acts or omissions of contractor or a driver, even if the sole allegation of negligence or responsibility is against the Company and including claims brought by anyone that Contractor's driver is an employee of the Company. This provision shall remain in full force and effect both during and after the termination of this agreement. F. Contractor will maintain a non-trucking liability insurance policy on all his equipment.
A. The Company agrees to pay the Contractor 80% minus any expenses on every Friday for all trips that were done between the period of the previous week Sunday to Saturday, all trip paperwork must be submitted by the end of the day of every Saturday as referred to in paragraph 3c.
A. Contractor agrees:
(I) To pay all operating and maintenance expenses of the equipment and of any of its own trailers pulled by the equipment, including, but not limited to, the cost of fuel, empty mileage, tolls, detention, accessory services, and scale tickets.
(II) To pay for all licenses, including base plates and permits of all types, required for the equipment.
(III) To pay for all taxes assessed against the equipment or its use such as ton mile taxes, gross ton mile taxes, and highway taxes.
(IV) To pay fuel taxes (IFTA) unlimited miles to be deducted as a flat fee weekly.
(V) To pay all charges and expenses for loading and unloading commodities onto and from the equipment or any trailer pulled by the equipment.
(VI) To pay all freight claims made against commodities transported in the equipment or any trailer pulled by the equipment, including claims resulting from shortages, damaged product, undue delays, theft, pallet shortages and any other cause which requires the Company to make restitution to any shipper, consignee, or consignor for cargo losses or damages that is not covered by insurance. The Company will provide the Contractor with an explanation and itemization of any deductions before the deduction is made from Contractors compensation. In the event of a condemned load, any salvage will be payable to WM On Time Trucking LLC.
(VII) To pay all fines assessed against the Company for alleged improper use or loading of the equipment or any trailer pulled by the equipment including, but not limited to, fines for overweight, log book violations, exceeding bridge laws, and all moving violations.
(VIII) To reimburse Company which has a legal obligation to maintain insurance coverage for the protection of the public pursuant to FHWA regulations under U.S.C. 13906 for the cost of cargo, liability insurance and general liability insurance monthly cost to the company to be deducted weekly as flat fee from Contractor's pay. The current rate for insurance is $350.00 a week. The cost will be deducted from the contractor's weekly settlement.
B. Contractor agrees to procure and maintain in force, in addition to workers' compensation insurance as provided in paragraph 3b, all insurance coverage required by law or any other regulatory body with jurisdiction on all tractors and trailers.
C. If any equipment should for any reason fail to complete operation to destination, the Company may, at the Contractors expense, forward the load, or any part thereof, to destination by any means or vehicle.
D. Contractor agrees that the Company may deduct from the pay due to Contractor any and all advances, expenses and payments that the Company may make on behalf of Contractor including, but not limited to, the following:
(I) all payments for which Contractor has responsibility under paragraph 3b, 6a and 6c.
(II) Penalties or fines imposed against the Company for failure of the equipment to pass safety inspections or to have proper identification.
(III) Unpaid or due and owing premiums for any insurance required by this agreement to be purchased by Contractor,
(IV) The value of any identification devices and placards not returned by the Contractor upon termination of the Contractor.
(V) All damages for which Contractor is required by this agreement to pay or indemnify the Company, such as claims for workers' compensation, for cargo losses, and
for third party injury or property damage, which are not completely indemnified by insurance or otherwise paid by Contractor.
(VI) All expenses incurred by the Company to qualify drivers or to keep drivers qualified. Deductions from pay shall be made weekly until all money advanced is repaid.
At the
at the request of the Contractor, the Company shall provide to Contractor evidence establishing the accuracy of any amounts deducted from Contractor's pay.
E. Contractor agrees that he will pay and be responsible for all driver wages and benefit costs as provided in Article 3, including the appropriate filing of tax forms and payment of necessary taxes.
This Agreement shall become effective on the date first set forth above and shall remain in full force and effect for 3l days and continuously thereafter until terminated by either party. This Agreement may be terminated on whole, or for a given piece of equipment, (Partial termination) upon 7 days prior written notice by either party. If either party breaches any term or condition of the agreement, then this Agreement may be terminated by the other party in whole or in part immediately upon notice. A violation by Contractor of any of the Companies, the STB's, the DOT's or other regulatory body's procedures, rules or regulations shall be considered a breach of this Agreement. Additionally, garnishment, repossession of equipment, or any event involving a filing of bankruptcy or certain events of insolvency shall constitute a breach of this Agreement. No termination or partial termination of this Agreement shall affect any accrued rights or obligations of either party as of the effective date of such termination. Upon termination or partial termination of this Agreement, the Contractor shall execute the removal and return of all items belonging to the Company either in person or by registered mail. Any unused portion will return to the Company regardless of who initially paid for the item. It will be presumed that the equipment has been returned at the time and date specified by the Company.
A. Notices. All notices required or permitted by this Agreement shall be in writing and may be delivered personally Mail or by Email, postage prepaid, addressed to the addresses shown above or to such other addresses as either party may furnish to the other in writing. Any notice sent by mail shall be deemed effective 5 days after it is deposited in the mail.
B. Independent Contractor. The parties intend to create by this Agreement a carrier/contractor relationship, and not an employer/employee relationship.
C. This Agreement cancels and supersedes any and all prior agreements, whether oral or written, between the parties relating to the equipment. This Agreement may not be modified or amended except by a writing executed by both parties.
D. Nonperformance. The failure of either party to require performance by the other party under any of this Agreement shall not affect the right of such party to require future performance under that provision.
E. Copies in Vehicle. Contractor agrees that a signed copy of this Agreement, or a statement as authorized by 49 CFR 1057.I1 (C) (2), shall be carried in each tractor at all times this Agreement is in effect.
A. Contractor acknowledges and agrees that in order to participate in the lease program outlined in this agreement, they are required to purchase and maintain a Geotab Electronic Logging Device (ELD) for each leased vehicle covered under this agreement.
B. The Geotab ELD device must be installed and operational in the leased vehicle(s) at all times during the term of this agreement. The Contractor is responsible for ensuring the proper functioning
and compliance of the Geotab ELD device as per applicable federal, state, and municipal laws, regulations, and industry standards.
C. Failure to procure, install, or maintain the Geotab ELD device as required under this clause may result in termination of this agreement by the Company, at its discretion, with immediate effect.
D. The Contractor shall bear all costs associated with the purchase, installation, maintenance, and operation of the Geotab ELD device. The Company shall not be liable for any expenses incurred by the Contractor in relation to the Geotab ELD device.
E. The Contractor agrees to provide proof of purchase and installation of the Geotab ELD device to the Company upon request, and to promptly address any issues or concerns related to the device as notified by the Company.
F. This clause regarding the Geotab ELD device requirement shall be considered an integral part of this lease agreement and shall be binding upon the Contractor for the duration of the agreement.
1. Revenue Definition: For this contract, the term gross revenue is from the total invoiced and defined as the total revenue received for a load. The pay settlement sheets for all loads received will be sent to the contractor each week.
2. Payment Schedule: Payment schedule for loads hauled by Contractor supplied tractor and trailer is 80% of the gross revenue. All trip receipts (Trip Reports, Bill of Lading, proof of delivery, Logs, Fuel receipts for loads submitted, any reimbursable expenses, and any and all paperwork concerning the loads being processed) received by Saturday's Midnight will be paid on the following Fridays.
3. Additional Advances: Any advances requested by the Contractor are subject to approval by the Company. Advances will be issued for emergencies such as breakdowns, towing, blown tires, etc. The advance fee is 5% or $15 whichever is greater; the advance will be deducted on the next Settlement of Contractors pay. The contractor must have a maintenance fund available for breakdowns. A fuel advance fee of 5% will be charged on the gross weekly used.
