CONTRACT HAULING AGREEMENT
THIS AGREEMENT made this: day of , 20___between Dave Kuker Trucking,
LLC, an Jowa company, hereinafter referred to as “CARRIER” having its principle offices at 2005 Peoria
Ave, Spirit Lake, lowa and hereinafter referred to as
“CONTRACTOR”
Witnesseth that,
‘WHEREAS, the CARRIER, an Interstate and/or Intrastate For Hire Contract and/or Common
Motor Carrier, operating under a certificate of public convenience and necessity and permits issued by
the Federal Motor Carrier Safety Administration, hereinafter referred to as “MCSA”, and/or under
certificate authority from state authorities having jurisdiction, wishes to obtain transportation of freight
with equipment it does not own through an agreement with CONTRACTOR: and
WHEREAS, the CONTRACTOR is the owner or lessee with right to lease or sub-lease to Carrier
equipment described in the attached Addendum I which is suitable for the transportation of property In
CARRIER’S business; and
WHEREAS, the CONTRACTOR is engaged in the business of transporting freight by motor vehicle
on behalf of or pursuant to operating agreements with private or contract carriers or shippers; and,
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein,
the parties mutually agree as follows;
1. ‘The CONTRACTOR agrees to furnish and to operate the equipment described in Addendum
11 together with drivers and all other necessary labor and to transport, load and unload on
behalf of CARRIER, such commodities as the CARRIER may from time to time make
available to the CONTRACTOR. The CARRIER agrees to make commodities available from
time to time for transportation by the CONTRACTOR under this Agreement. Nothing in this
‘Agreement obligates the Carrier to furnish any specific number of loads or pounds of
freight for transportation by the CONTRACTOR at a particular time or any particular place.
Contractor further agrees that no representations have been made by Carrier of @
guaranteed number of loads or miles to induce Contractor to enter into the Agreement
2. For the full and proper performance of each trip made by the CONTRACTOR under the
tertns of this Agreement, the CARRIER agrees to pay CONTRACTOR 2s follows:
9% of gross revenue generated by said equipment when utilizing trailers owned by
CARRIER. Gross revenues are defined as the gross amount of pay received by the Carrier
for each trip. Contractor agrees that all revenues are the sole property of the Carrier,
subject to this Agreement, and that Contractor has no privity of contract with any
customer of the Carrier that would allow Contractor to bill, invoice or make demand on
the customer for direct payment to the Contractor,‘This Agreement is intended by the parties to create the relationship of INDEPENDENT
CONTRACTOR and not employer/employee, master/servant, lessee/lessor, partner or joint
ventures; and as such neither CONTRACTOR nor CONTRACTOR'S employees or agents are
entitled to Workers compensation benefits from CARRIER. Neither CONTRACTOR nor his
employees, agents or servants are to be considered employees of CARRIER at the time,
under any circumstances or for any purpose. Itis agreed by the parties hereto that
CONTRACTOR assumes full and complete responsibility far all persons employed by
CONTRACTOR in the performance of all duties and obligations under the Agreement.
Further that no deductions shall be made from settlements for withholding taxes and the
like.
‘The CARRIER may provide drivers for CONTRACTOR when requested and subject to
availability. The drivers are employees of the CARRIER. Any expenses incurred, such as
wages, withholding taxes, Workman’s Compensation and Unemployment Insurance will be
withheld from CONTRACTOR'S settlement and will not be taxed to CONTRACTOR as,
income. Carrier retains the right to reject transport by any driver for any reason permissible
by law.
‘The CARRIER shall settle with CONTRACTOR within 15 days of the submission by the
CONTRACTOR to the CARRIER those dacuments showing full and proper performance of
the terms of this Agreement. The required documents shall include logs and such other
documents as may be required by the rules and regulations of the FMCSA, the Department
of Transportation, and such documentation necessary for the CARRIER to secure payment
for delivery from the shipper and/or consignee such as delivery receipts and bill of lading.
{In any case where the CONTRACTOR has secured an advance of any kind from the CARRIER,
or if there shall be any other amounts due to the CARRIER from the CONTRACTOR or
CONTRACTOR'S authorized agents or employees, the CARRIER shall be authorized to
deduct such amounts due from the CONTRACTOR under the terms of the Agreement or
other amounts due as set forth in attached Schedule 1, if applicable. In addition, the
CARRIER shall have a period of forty-five (45) days after termination of this Agreement to
verify the account of the CONTRACTOR as to money owed the CONTRACTOR and to make
appropriate deductions before final settlement. Advances shall also include Carrier’s
leasing of replacement equipment on behalf of the Contractor if necessary to complete a
trip.
The CONTRACTOR recognizes that CARRIER’S business of providing motor carrier
‘transportation services to the publics subject to regulation by the Federal government
acting through the FIVICSA and that the form of the Agreement is governed by 49 CFR part
1057 and Ex Parte MC 43, the U.S. Department of Transportation, and by various state and
local governments. Subject at all times to verification by the CARRIER, CONTRACTOR shall
bear responsibility to the CARRIER for satisfying said regulatory requirements. Said
requirements shall include, but are not limited to:
‘A. Maintaining the Equipment in the state of repair required by the aforementioned
regulations; and make said Equipment available for CARRIER’S inspection at
CARRIER'S discretion, Contractor is solely responsible for the maintenance and
repair of the equipment and feilure of the Carrier to inspect the equipment is not a
walver of Contractor’s duties.B. Operating the Equipment in accord with all applicable regulations; and provide
CARRIER with all maintenance records of said Equipment as required by the
aforementioned regulations;
8, THE CONTRACTOR EXPRESSLY WAIVES ANY CLAIM, DEMAND, ACTION, OR CAUSE OF
ACTION AGAINST CARRIER AS A RESULT OF THE DEATH OR INJURY OF CONTRACTOR OR ITS
EMPLOYEES IN CONNECTIN WITH THE PERFORMANCE OF THE AGREEMENT.
9, The CARRIER shall not assume any liability for the CONTRACTOR when not in the
performance of a service for the CARRIER under the terms of this Agreement. The
CONTRACTOR agrees, at its own expense, to keep effective during the entire term of the
Agreement a non-trucking-use ("bobtail”) lability policy, insuring the CONTRACTOR AND
CARRIER against public liabilities as property damage and bodily injury as may arise when
‘the CONTRACTOR is not operating in performance of this Agreement. Any such insurance
policy shall have a minimum limit of liability of not less than $ 1,000,000 combined single
limit per occurrence as concerns all equipment of the CONTRACTOR operated hereunder
and naming the CARRIER as an additional insured. In the event that the law or regulations
require liability insurance of greater than $1,000,000 the CONTRACTOR shall increase its
insurance limits accordingly. Upon entering this Agreement, CONTRACTOR shall
immediately deliver a copy of said “bobtail” insurance policy, or certificate of evidence
‘thereof, to the CARRIER. Any such certificate shall contain a provision to provide CARRIER
ten (10) days written notice of cancellation or change of said policy.
FURTHER INSURANCE REQUIREMENTS: CONTRACTOR MUST CARRY, IN ADDITION TO
BOBTAIL INSURANCE, DEDUCTIBLE REIMBURSEMENT INSURANCE TO REIMBURSE THE
CARRIER FOR DAMAGES TO CARRIER'S PROPERTY, PHYSICAL DAMAGE TO THE CARRIER’S
TRAILER OR ANY OTHER AUTO, CARGO PROPERTY OR PERSON OF ANY THIRD PARTY FOR
WHICH THE CARRIER MAY INCUR A DEDUCTIBLE, THE COVER SHALL BE IN THE AMOUNT
(OF $2,500 WHICH IS THE CARRIER’S CURRENT DEDUCTIBLE UNDER ITS OWN COVERAGE
‘AND MAY BE RAISED BY THE CARRIER IF CARRIER’S DEDUCTIBLE IS RAISED VOLUNTARILY
OR INVOLUNTARILY AT WHICH TIME CONTRACTOR SHALL RAISE ITS COVERAGE,
itis preferred that CONTRACTOR carry this coverage through Trucker’s Benefit Insurance,
(TBI) a division of Great West Casualty Insurance which Is the Carrier's insurer to insure
seamless claims handling, but Contractor may choose another insurance carrier subject to
Cartier’s approval of the insurer’s rating and financial viability. in the event that Contractor
elects to use an insurer other than TBI then Contractor must prepay premiums quarterly
land show proof of payment to Carrier and such policy must contain a provision requiring
the insurer to provide to Carrier at least 30 days’ notice of cancellation.
10. Pursuant to rules and Regulations of the FMSCA under 49 U.S.C. 10927, the CARRIER shall
maintain in force public liability, property damage and cargo insurance coverage as
concerns shippers and the general public; however, the CONTRACTOR shall indemnify and
be liable to CARRIER for any loss or damage to property, including any equipment of
CARRIER which may or may not be covered by insurance and which results from the
operations of CONTRACTOR, its agents or employees. CONTRACTOR'S further agrees to
reimburse CARRIER for any and all such premiums as are allocated to CONTRACTOR'S
equipment or CARRIERS'S policy for said public liability, property damage and cargo