TERMS OF AGREEMENT AND TERMINATION. This agreement is made between and MILO TRANSPORTATION INC (MTI) on day of, 20.

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1 MILO TRANSPORTATION INC. 525 S. Colfax Suite B. Griffith, IN PHONE# (888) FAX# (219) TERMS OF AGREEMENT AND TERMINATION This agreement is made between and MILO TRANSPORTATION INC (MTI) on day of, 20. The term of this agreement shall commerce on the date set forth above and continue for (12) twelve months from such date. This agreement shall be automatically renewed for one (1) year, unless either party gives at least fourteen (14) days written notice to the expiration of the term of their intention not to renew the agreement. The party receiving notice of termination shall receipt the copy of such notice and return such receipt copy of the other party. No equipment may be replaced, returned, or substituted without the inspection and consent of MTI. MTI will withhold $ per week from the contractor in an escrow account up to a maximum of $2, This money will be reimbursed to the contractor 45 days after the termination of the contract. Any outstanding debts will be deducted from the escrow account. Every owner operator must have their own liability and physical insurance on their truck and trailer. MTI shall not be held liable for any damage, loss, or destruction of the motor vehicle equipment that is listed in the List of Equipment Form. Contractor hereby releases the MTI from such damage, loss, and destruction of such equipment. The contractor shall hold MTI non-responsible from any claims for damages, including all costs, judgments, expenses, and attorney s fees to persons or property by reason of the use of their motor vehicle equipment. Contractor is fully responsible for the maintenance of the trailer. If contractor is renting a trailer through MTI any maintenance or repair on the trailer that has to be done upon returning that trailer will be billed to the contractor. The contractor shall be solely responsible for the direction and control of its employees, agents, or servants, including their wages, hours and working conditions. The contractor shall be held responsible to MTI for any losses or fines incurred by MTI as a result of its failure to act in accordance with all applicable rules and regulations of the I.C.C. (Interstate Commerce Commission) and the U.S.D.O.T. (United States Department of Transportation), and all applicable federal and state laws, regulations and rules. To the extent required by applicable law, contractor shall maintain Workman s Compensation coverage for all employees, agents and servants. Contractor shall be responsible for withholding and remitting to proper authorities, all payroll taxes and related expenses from the wages paid by contractor to contractor s employees, agents or servants.

2 MTI agrees to procure and maintain in full force and effect, liability insurance for bodily and property damage caused by the motor vehicle specified in the List of Equipment Leased Form, up to $1,000, combined single limit for bodily injury and property damage in each accident. MTI agrees to procure and maintain in full force and full effect, cargo insurance for equipment specified in the List of Equipment Leased Form for $100, for each occurrence. Cost of said insurance is to be reimbursed from the contractor to MTI for the amount of $ per vehicle, per month. Contractor agrees to procure and pay the full expense of Bobtail Insurance for $1,000, and Workers Compensation Insurance related to contractor and any of the contractor s employees, servants and agents. Prior to execution of this contract, contractor will provide MTI with certificates for insurance that meet DOT requirements for operating any vehicle within MTI. Contractor must IMMEDIATELY notify MTI of any changes in the terms of coverage of such policies. Contractor shall make ALL copies of its insurance policies available to MTI upon request. MTI will provide contractor with all identification required by all applicable governmental authority with respect to the motor vehicle equipment to be used under this agreement. All such identification shall be affixed to the vehicle listed in the List of Equipment Leased Form, while such equipment is not being used to perform services for the company pursuant to this agreement. Contractor shall remove all identification items from the vehicle and return all identification items to MTI upon termination of this agreement. No final payment will be made until such contractor has removed all identification belonging to MTI and return them to MTI. The contractor shall exercise all diligent efforts to comply his operation under this agreement. DATE: CONTRACTOR SIGNATURE: MTI:

3 PAYMENT FOR SERVICE RENDERED 1. MTI agrees to pay the contractor to the full paid customer amount, minus 12% per load. Upon submission of all appropriate forms by Friday, 15:00 hours (3:00 pm), payment to contractor will be made by MTI on the 10 th business day (the second Friday from the day of paperwork submission). Driver must submit all appropriate forms, documents and paperwork: Bill of lading or shipping orders, delivery receipts, completed drivers daily logs and vehicle maintenance reports, trip manifests, mileage reports, detention reports, interline paper, fuel purchase receipts, D.O.T., Federal and State Inspection Reports, toll receipts, and accident reports, etc. 2. Driver must submit appropriately documented log books (from the preceding week) by any Friday of the month in order to be paid in 10 business days by MTI. 3. In case the bill of lading contains records of damage and/or late deliveries, contractor will be liable for the whole amount of charges, if any, that may occur to MTI. Payment for that load will be made to the contractor only after MTI has received payment for that load. 4. All bills of lading must be signed and dated by a shipper and a receiving officer in order to be timely paid for. DATE: CONTRACTOR SIGNATURE:

4 LIST OF EQIPMENT LEASED Tractor(s) Trailer(s) Receipt for above Equipment by MTI. MTI hereby acknowledges the receipt of the equipment above described on: Date: Milo Transportation, Inc. (MTI) 525 S. Colfax Suite B Griffith, IN Authorized Signature:

5 All drivers MUST be aware: 1. Check-in time is at 09:00 AM CST every day. The driver is to call the following number: and talk in person with a representative of MTI to give an update on the load. 2. The driver must notify a representative of MTI immediately in case of an emergency. 3. Failure to comply with the above stipulations will result in a fine of $50.00 for each truck or $25.00 per driver. 4. Trailer can not be unhooked from the tuck at any point while loaded or empty without the approval of MTI representative. Any unauthorized drop of trailer will result in an automatic deduction from settlement or a fine to the contractor. The amount of the fine that the contractor must pay to MTI, for unauthorized trailer drop is $10, (Ten Thousand Dollars). Advance money will be provided only after the truck has notified MTI that it is fully loaded. MTI will check all receipts thoroughly. In case of any kind of attempt to manipulate the receipts, MTI will immediately discharge the driver, reserve the right to proceed with litigation and to report the incident to the appropriate Secretary of State office as a violation of the driving record. ROAD PROBLEMS 1. All drivers must complete a PRE-TRIP INSPECTION on the truck and trailer, according to the law. 2. MTI must be immediately informed of any problems noticed by the driver during the pre-trip inspection 3. Any violation tickets received due to the notified problem will be paid by MTI. 4. Any violation tickets received and are not notified will be at the expense of the driver/contractor. 5. In case of any equipment failure, all drivers are asked to immediately inform a representative of MTI. Assistance is available form MTI 24 hours a day. MTI will not acknowledge any actions taken by driver before notifying a representative of MTI. 6. Any equipment damage due to the negligence of the driver will not be acknowledged nor will it be paid by MTI. It will be considered the responsibility of the driver. INSURANCE 1. Any road problems resulting from the negligence of the driver and wading to the harm of a fellow driver, the general public, loss to the company, its employees or customers, will be the responsibility of the driver. The

6 $1, insurance deductible will be deducted from the drivers/contractors paycheck. 2. All drivers will be held responsible for any damage on the load resulting from negligence or driver not being professional. The $1, insurance deductible will be deducted from the drivers/contractors paycheck. 3. If a load is refrigerated, the driver MUST check the condition and the temperature of the refrigerated trailer every 2 hours, check the fuel level in the refrigerated trailer, and to provide MTI with separate fuel receipts. 4. All drivers are required to provide complete protection and safety of the load by properly using load locks. Special attention is to be used when transporting produce freight (fruit, vegetables, etc.). All drivers must check the load every 2 hours to make sure it is still properly maintained. MTI will not be liable for damaged loads due to driver negligence or improper inspection. Any deducted charges for damaged goods charged to MTI will be deducted from the driver/contractor. LOGBOOKS 1. All drivers are required to keep an accurate, daily logbook. Any violation tickets due to logbooks will be paid by the driver/contractor, not MTI. 2. If the police orders the truck to be OUT OF SERVICE due to logbook violations, MTI needs to be informed immediately and the driver/contractor will be subject a fine. 3. If the load has not been picked up, delivered, or pronounced late due to police order, any charges will be deducted from the driver/contractor. PROPER LOAD TRANSFERS 1. All drivers must pick-up and deliver the load to its destination at the appointed times. (Except: any condition, problems, incidents caused by nature or mechanical problems). 2. Any late pick-up or deliveries that result in any deductions will be the responsibility of the driver/contractor and not MTI. 3. All drivers must inspect loading (when allowed) and to check the weight of the truck and load at the nearest scale. If the truck and load are overweight, the driver must notify MTI immediately and return to the last shipper for a properly weighted load. 4. MTI is not responsible for over-weight tickets and violations. 5. During loading, the driver must attentive to the condition of the load. If the driver notices any damage during loading, they need to call MTI immediately and inform of the condition of the load. MTI will inform the driver on what to do with the load. If MTI accepts the load, the driver must write down all damages on the bills of lading and have the appropriate shipper representative sign-off on the bills. The driver must also verify the number of pallets that were loaded to make sure that the appropriate load is picked up. 6. MTI must be informed of all problems during loading and unloading so the MTI may resolve the problem.

7 7. During loading and unloading, the driver is to abide by the rules and regulations of the shipper and to never leave the truck completely alone. 8. Driver must have a camera with him at all times, in order to capture pictures of problems that might occur during loading, unloading, breakdowns, accidents, etc. This way driver will have a visual proof for unexpected occurrences. PAPERWORK Upon completion of delivery, all drivers must mail the following: 1. Bill of lading (signed and dated both by shipper and consignee) 2. Expense reports and receipts 3. Completed driver daily logs and vehicle maintenance reports 4. D.O.T. Federal and State Inspection reports (if any) 5. Accident reports (if any) Paperwork should be sent via FedEx Express Envelope, to insure the safe transfer of paperwork (bills, log books, etc.). TERMINATION Both parties agree that the termination of contract may occur if either party is unsatisfied by the work performance of opposite party. Termination of contract may occur with a 14 (fourteen) days advance WRITTEN notice only. EXAMPLE OF CAUSES FOR IMMEDIATE DISCHARGE 1. Dishonesty 2. Immoral conduct while on duty 3. Fighting 4. Possession of or being under the influence of an illegal substance or contraband 5. Possession of or being under the influence of alcohol 6. Failure to immediately report any accident 7. Failure to carry out instructions or direct order of a supervisor 8. Theft 9. Leading or participating in any activities that are deemed detrimental to MTI 10. Any conduct not listed above which can be deemed detrimental to MTI I have read and understood the above rules for MTI and do hereby agree to adhere and follow these rules: Date: Contractor/Driver Signature:

8 D.O.T. INSPECTION If driver is first time out of service due to faulty log book, the owner of the truck will be fined $ per MLI. Note: If violation is not reported to MTI, the owner of the truck will be fined $1, If Driver has a second time out of service due to faulty log book, driver will be terminated from MTI. Date: Contractor Signature: Driver Signature: MTI:

9 ACKNOWLEDGEMENT OF INDEPENDENT CONTRACTOR I,, agree to be considered by MTI as an independent contractor, retaining sole responsibility for all withholding and employment taxes due to Federal, State or local government. I agree to hold nonresponsible, MTI from any claim by Federal, State or local government agency, an account of wages, withholding and employment taxes. Date: Contractor Signature:

10 Milo Transportation, Inc. (MTI) Additional agreement: Both parties agree that the termination of contract may occur if either party is unsatisfied by the work performance of opposite party. Termination of contract may occur with a 14 (fourteen) days advance WRITTEN notice only. In case that the contractor/owner operator terminates the contract and/or leaves the company without prior 14 days written notice, MTI has the right to keep the escrow amount collected during the time contractor was leased to MTI. Milo Transportation, Inc. (MTI) X ; X (date) Milorad Trkulja, President Owner Operator/Contractor/Driver: (print) X (sign) Date: X