Terms and Conditions

INDEPENDENT CONTRACTOR AGREEMENT

Hora Express, a motor CARRIER operating pursuant to the authority issued by state and federal agencies,  (“INDEPENDENT CONTRACTOR”), and in consideration of the covenants and agreements contained herein, enters into this INDEPENDENT CONTRACTOR agreement (“agreement”).

1. PROVISIONS OF SERVICES AND EQUIPMENT

During the time set forth in paragraph 2, INDEPENDENT CONTRACTOR shall provide CARRIER transportation related services and equipment set forth below. INDEPENDENT CONTRACTOR represents and warrants that INDEPENDENT CONTRACTOR has title to or is authorized to contract the equipment and services to CARRIER.

DURATION OF AGREEMENT

This Agreement shall begin on the date indicated on the signature page and shall remain in effect for a period of not less than 30 days from that date, but may be terminated in accordance with the provisions of paragraph 4; provided, however, that this agreement may be terminated at any time in accordance with the provisions of paragraph 8.

2. COMPENSATION

It is expressly understood and agreed that INDEPENDENT CONTRACTOR’S compensation shall be set forth in Appendix A and such compensation shall constitute the total compensation for everything furnished, provided, or done by INDEPENDENT CONTRACTOR in connection with this agreement including driver services. All mileage computations shall be based on the PC Miller. INDEPENDENT CONTRACTOR hereby authorizes the deduction set forth in Appendix B and those deductions and charge backs identified and referenced elsewhere in this agreement.

3. TERMINATION

Subject to the provisions of paragraph 2, this Agreement may be terminated for any reason by giving thirty (30) day written notice to that effect to the other party either personally, by mail, or by fax machine at the address or fax number shown at the end of this Agreement. INDEPENDENT CONTRACTOR shall, upon the termination of this agreement, remove all CARRIER identification from the equipment and return all of the CARRIER’S property including trailers, load blocks, chains, binders, paperwork and freight, to CARRIER’S nearest terminal. If INDEPENDENT CONTRACTOR fails to return property or freight to CARRIER or remove all CARRIER identification from the equipment within three (3) days after termination of this agreement, INDEPENDENT CONTRACTOR shall pay CARRIER in initial payment of damage in the amount of one thousand dollars ($1,000.00), as a pre-estimate of damage and not as a penalty, and CARRIER, may pursue all the remedies allowed by law or authorized in the agreement, against INDEPENDENT CONTRACTOR.

4. INDEPENDENT CONTRACTORS RESPONSIBILITIES

A. Compliance With Pertinent Laws And Regulations.

1. INDEPENDENT CONTRACTOR shall provide competent drivers who meet all the requirements of the U.S. Department of Transportation, including but not limited to, familiarity and compliance with state and federal motor CARRIER safety laws and regulations. To ensure compliance with such laws and regulations, all drivers will be required to submit to a pre-qualified medical examination and alcohol and or drug test by CARRIER’S physician, the cost of which shall be borne by INDEPENDENT CONTRACTOR and shall be an authorized deduction as outlined in Appendix B.

2. INDEPENDENT CONTRACTOR shall carry a copy this agreement in the equipment all times and file with CARRIER on a timely basis, all log sheets, inspection sheets in supporting documents (including original toll receipts for CARRIER for mileage tax purposes), physical examination certificates, tax and reports, and any other required data, documents, or reports.

3. INDEPENDENT CONTRACTOR agrees that all bills of lading, waybills, freight bills, manifests, or other papers identifying the property carried on the equipment during the period it is contracted shall be those of CARRIER, or as authorized by CARRIER, and shall indicate that the property transported is under the responsibility of CARRIER or a CARRIER with which the equipment has been subcontract.

4. INDEPENDENT CONTRACTOR or its drivers shall comply with CARRIERS drug alcohol policy, and any addenda or revisions thereto.

5. INDEPENDENT CONTRACTOR agrees to operate the equipment is safe and prudent manner at all times in accordance with the laws of the various jurisdictions in which the equipment will be operated and pursuant to the operating authorities of CARRIER, and in accordance with all rules related to traffic safety, highway protection and road requirements. Moreover, INDEPENDENT CONTRACTOR agrees that all drivers and/or workers employed by INDEPENDENT CONTRACTOR will comply with the terms of this agreement while operating the equipment on behalf of INDEPENDENT CONTRACTOR.

6. INDEPENDENT CONTRACTOR shall exercise all diligent efforts to conduct the operation under this agreement in such a manner as to assure continued customer satisfaction and specifically by (1) completing deliveries on-time; (2) loading and unloading at times requested by shipper; (3) delivering at the correct location; and (4) being courteous to both the shipper and consignee.

B. Operational Expenses

1. INDEPENDENT CONTRACTOR shall, at its sole cost and expense, provide all the equipment ready to operate and fully road worthy and shall furnish all necessary oil, fuel, tires, and other parts, supplies and equipment necessary or required for the safe and efficient operation of such equipment; and shall pay all other expenses incident to such operation, including, but not limited to, highway use taxes, weight taxes, state property taxes, mileage taxes, and registration fees, and toll charges, and detention and accessory charges not collected by CARRIER because of INDEPENDENT CONTRACTOR’S failure to provide the required documents.

2. For the purpose of computing all state fuel taxes owed for the equipment, INDEPENDENT CONTRACTOR shall be responsible for providing CARRIER with an accurate account of all fuel purchases for the purposes of computing state fuel tax liability by submission of original fuel receipt. Furthermore, for the purposes of computing state fuel tax liability, INDEPENDENT CONTRACTOR must account for all miles travel by state for each trip including all empty mileage.

3. INDEPENDENT CONTRACTOR shall be responsible for maintaining, and shall maintain the equipment in safe condition and in complete compliance with all laws and regulations of the states in which INDEPENDENT CONTRACTOR operates. INDEPENDENT CONTRACTOR shall, at its own expense, make the equipment available for inspection by CARRIER upon reasonable request by CARRIER. Not less than quarterly, INDEPENDENT CONTRACTOR shall, at its sole cost in expense, have the equipment inspected and/or maintained at an independent repair or maintenance facility authorized by CARRIER. INDEPENDENT CONTRACTOR shall, as directed by CARRIER, forward to CARRIER all inspection and maintenance records for the equipment.

4. INDEPENDENT CONTRACTOR or its drivers agree to pay all fines imposed for violation of any law or regulation by the state or any locality in which INDEPENDENT CONTRACTOR operates, the Department of Transportation, or the Surface Transportation Board, where such violation results, at least partially, from the acts or omissions of INDEPENDENT CONTRACTOR.

5. INDEPENDENT CONTRACTOR shall have the duty to determine that all shipments are in compliance with the size and weight laws of the states in which or through it will travel and to notify CARRIER if the vehicle is overweight or in need of permits before commencing the haul. CARRIER shall reimburse INDEPENDENT CONTRACTOR for all authorized scale expenses incurred by INDEPENDENT CONTRACTOR upon presentation of original scale tickets. Except when the violation results from the acts or omissions of INDEPENDENT CONTRACTOR

6. INDEPENDENT CONTRACTOR, CARRIER shall assume the risks and costs of fines for overweight and over sized trailers when such trailers are per-loaded and sealed, or the load is containerized, or for improperly permitted over dimension and overweight loads, or the trailer or lading is otherwise outside of INDEPENDENT CONTRACTOR’S control. INDEPENDENT CONTRACTOR shall pay, or reimburse CARRIER, for any costs or penalties due to INDEPENDENT CONTRACTOR’S failure to weigh shipment or to notify CARRIER that the vehicle is overweight or in need of permits.

C. Cargo Claims

INDEPENDENT CONTRACTOR shall immediately report all cargo claims, including all shortages, overages or other, exceptions the cargo, to CARRIER. INDEPENDENT CONTRACTOR shall be liable for, and shall pay, the first one thousand dollar {1.000.00) for each cargo claim, including but not limited to, delay, shortages, missed delivery, and any direct damage claim relating to lost, damaged or contaminated loads, arising out of, or in connection with INDEPENDENT CONTRACTOR’S services; provided however, that INDEPENDENT CONTRACTOR shall be responsible for the entire amount of such loss or damage if the incident caused, in whole or in part, by the will full or intentional act or omission of INDEPENDENT CONTRACTOR or Its Driver.

D. Use of Trailer

INDEPENDENT CONTRACTOR agrees to return any trailer provided for its use by CARRIER in the same good condition as received by INDEPENDENT CONTRACTOR, reasonable wear and tear excepted, along with any and all other equipment and property belonging to CARRIER immediately upon CARRIER’S request or upon termination of this Agreement anytime or place designated by CARRIER. In the event the trailer is not in as good condition as it was delivered by CARRIER, INDEPENDENT CONTRACTOR hereby authorizes CARRIER to restore the trailer to proper condition and to deduct or to charge INDEPENDENT CONTRACTOR for such repairs or reconditioning. INDEPENDENT CONTRACTOR shall obtain prior approval before undertaking any repair or maintenance work on any trailer provided for use by CARRIER. In the event INDEPENDENT CONTRACTOR for any reason fails to comply with this provision; INDEPENDENT CONTRACTOR agrees to reimburse CARRIER for all reasonable expense and costs incurred by CARRIER in recovery of its trailer or property from INDEPENDENT CONTRACTOR or its drivers. INDEPENDENT CONTRACTOR agrees that in the event it is necessary for CARRIER to enter upon private property and/or remove private property in order to recover its trailer or property, INDEPENDENT CONTRACTOR does herby irrevocably grant CARRIER or its duly authorized agents, permission to do so and further agrees to hold harmless CARRIER, or its duly authorized agents, from any form of liability whatsoever in connection with such repossession. INDEPENDENT CONTRACTOR shall be liable for, and pay, the first two thousand five hundred dollars $2,500.00) for each incident involving direct, indirect and consequential damage, including but not limited to, towing charges and reasonable attorney’s fees, arising out of, or in connection with INDEPENDENT CONTRACTOR’S use of CARRIER’S trailers. CARRIER’S customer’s trailers, other equipment of CARRIER’S or the equipment of any other CARRIER; provided, however, that INDEPENDENT CONTRACTOR shall be responsible for the entire amount of any such loss or damage to any topped trailer or if the incident is cause, in whole or in part, by the willful or intentional acts or omissions of INDEPENDENT CONTRACTOR or its driver.

E. Insurance

The responsibilities and obligations between CARRIER and INDEPENDENT CONTRACTOR involving insurance shall be as specified in paragraph 6 (d) and in appendix C. CARRIER shall have no insurance responsibilities or obligations pertaining to INDEPENDENT CONTRACTOR other than those expressly stated in this agreement or mandated by law.

F. Accidents and Claims

INDEPENDENT CONTRACTOR shall immediately report any accident or potential claim to CARRIER involving operations under this agreement, including and any contractor’s written report of such accident or claim. In the event in the INDEPENDENT CONTRACTOR fails to notify CARRIER of the accident within two hours from the time of the accident or claim INDEPENDENT CONTRACTOR shall be liable for any and all damages resulting from that failure to notify, including but limited to consequential damages, fines, claims by third parties and reasonable attorney fees. INDEPENDENT CONTRACT and its drivers shall cooperate fully with CARRIER in the conduct of any legal action, regulatory hearing or other similar proc arising from the operation of the equipment, the relationship created by this agreement or the services performed here under INDEPENDENT CONTRACTOR shall, upon CARRIER’S request, provide written reports or affidavits, attend hearings and trials and assist in securing evidence or obtaining the attendance of witnesses. INDEPENDENT CONTRACTOR shall provide CARRIER with any assistance as may be necessary for CARRIER or CARRIER’S representatives or insurers to investigate, settle or litigate any accident, claim or potential claim by or against CARRIER.

G. Hold Harmless

INDEPENDENT CONTRACTOR agrees to defend, indemnifying and hold harmless CARRIER from any direct, indirect consequential loss, damaged, 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 under this agreement or breach thereof. This provision shall remain in full force and effect t during and after the termination of this agreement.

H. Communication Equipment

The INDEPENDENT CONTRACTOR must provide cellular communication with the CARRIER.

I. Complete Transportation or Abandons of Load

If for a reason, INDEPENDENT CONTRACTOR shall fail to complete transportation of commodities in transit, or abandon shipment or otherwise subjects CARRIER to liabilities to shippers or governmental agencies on account of the acts or omission of INDEPENDENT CONTRACTOR en route, INDEPENDENT CONTRACTOR expressly agrees that CARRIER shall have right to complete performance using the same or other trailer, and hold INDEPENDENT CONTRACTOR liable for the c thereof and for any other such damages. INDEPENDENT CONTRACTOR hereby waves any defense against CARRIER for s action and agrees to reimburse CARRIER for any cost and expenses arising out of such completion of such trip, and to CARRIER any damages for which CARRIER may be liable to shipper arising out of such breach of contract by INDEPENDE CONTRACTOR.

5. CARRIER’S RESPONSIBILITIES

A. Exclusive Possession and Responsibility

The equipment shall be for CARRIER’S exclusive possession, control, and used for the duration of this agreement. CARRIER shall assume complete responsibility for the operation of the equipment for the duration of this agreement. This sub paragraph set forth solely to conform to Federal Highway Administration regulations and shall not be used for any other purpose, including any attempt to classify INDEPENDENT CONTRACTOR as employee of CARRIER. Nothing in this Agreement is intended affect whether the INDEPENDENT CONTRACTOR or any driver provided by the INDEPENDENT CONTRACTOR is INDEPENDENT CONTRACTOR or an employee of the CARRIER.

B. Inspection of Equipment

CARRIER certifies that, before taking possession of the equipment and on an annual basis thereafter, the equipment was inspected by one of its responsible and competent employees or agents.

C. Identification of Equipment

CARRIER shall identify the equipment in accordance with the requirements of the Department of Transportation and appropriate state regulatory agencies. CARRIER shall have the right to place and maintain on the equipment CARRIER’S name and any lettering, advertisement, slogans or designs as CARRIER may choose. INDEPENDENT CONTRACTOR, at CARRIER’S cost expense shall allow CARRIER or any of CARRIER’S authorized agents to remove such identification at the termination of this agreement or while operating such equipment for any purpose other than conducting CARRIER’S business. At its discretion INDEPENDENT CONTRACTOR may have the identification permanently painted on the equipment. INDEPENDENT CONTRACTOR further agrees to keep the equipment in clean appearance and identified as described herein, at its sole cost an expense.

D. Insurance

Unless authorized to be self-insured, CARRIER shall maintain public liability, property damage, and cargo insurance in such amounts as are required by the Surface Transportation Board, Department of Transportation, and applicable state regulatory agencies. CARRIER shall maintain insurance coverage for the protection of the public pursuant to the Surface Transportation Board’s regulations. CARRIER’S self insurance in no way restricts CARRIER’S right of indemnification from INDEPENDENT CONTRACTOR under paragraph 5 (G) and other provisions of this agreement.

6. INDEPENDENT CONTRACTOR NOT EMPLOYEE OF CARRIER

Is expressly understood and agreed that INDEPENDENT CONTRACTOR is an INDEPENDENT CONTRACTOR for the equipment and driver resources provided pursuant to this agreement, and that INDEPENDENT CONTRACTOR agrees to defend, indemnify and hold CARRIER harmless for any claims, suits, or actions, including reasonable attorney fees in protecting CARRIER’S interests, brought by employees, any union, the public, or state or federal agencies, arising out of the operation of the equipment pursuant to this agreement. In this
regard, INDEPENDENT CONTRACTOR hereby assumes full control and responsibility for all hours scheduled and worked, wages, salaries, workers’ compensation and unemployment insurance, state and federal taxes, fringe benefits, and all other costs relating to the use of drivers provided by INDEPENDENT CONTRACTOR pursuant to this agreement proof of such control and responsibility shall be submitted by INDEPENDENT CONTRACTOR to CARRIER as required by CARRIER and may include but not be limited to proof of highway use tax being currently paid when the CARRIER purchases licensed; proof of income tax being currently paid; proof of payment of payroll tax for INDEPENDENT CONTRACTOR’S drivers and a certificate of insurance containing a 30-day notice of changed an cancellation clause. For
the purpose of this section, the term INDEPENDENT CONTRACTOR refers to the owner. As required by law, CARRIER agrees to file information tax returns (form 1099) on behalf of INDEPENDENT CONTRACTOR if INDEPENDENT CONTRACTOR is paid more than the statutory amount in compensation during the calendar year.

7. BREACH

Notwithstanding anything to the contrary in this Agreement, this Agreement may be terminated, at any time, by either party in the event of a breach by the other of any term or obligation contained in this Agreement. In the event of a breach and when practicable, written notice shall be served upon the breaching party, notifying such party of the breach and the termination of the Agreement and reason(s) therefore. If, in CARRIER’S judgment, INDEPENDENT CONTRACTOR has subject CARRIER to liability because of INDEPENDENT CONTRACTOR’S acts or omissions, CARRIER may take possession of the lading entrusted to INDEPENDENT CONTRACTOR and complete performances. In such event, INDEPENDENT CONTRACTOR shall waive any recourse against CARRIER for all direct and indirect costs, expenses or damages including reasonable attorney’s fee incurred by CARRIER as a result of CARRIER’S taking possession of the lading and complete performance.

8. SETTLEMENT PERIOD

CARRIER shall settle with INDEPENDENT CONTRACTOR with respect to services provided under this Agreement within 15 calendar days after INDEPENDENT CONTRACTOR’S submission in proper form, of those documents necessary for CARRIER to secure payment, including, but not necessarily limited to, trip reports, bills of lading, delivery receipt or other proof of delivery, and properly completed drivers’ logs as required by the Department of Transportation. In addition, INDEPENDENT CONTRACTOR shall provide CARRIER with all original fuel receipts, toll tickets (for mileage tax purposes) and all other documents and reports requested by CARRIER, but not as a condition for payment under this provision. CARRIER shall have the right to review all of INDEPENDENT CONTRACTOR’S documents and records relating to the use of the Equipment and to the services provided under this Agreement, and INDEPENDENT CONTRACTOR agrees to provide CARRIER with access to such documents and records upon reasonable notice.

9. INDEPENDENT CONTRACTOR NOT REQUIRED TO PURCHASE PRODUCTS, EQUIPMENT, OR SERVICES FORM CARRIER

INDEPENDENT CONTRACTOR is not required to purchase or rent any products, equipment, or services from CARRIER as a condition of entering into this Agreement.

10. CHARGE BACK

CARRIER shall charge back to INDEPENDENT CONTRACTOR at time of payment or settlement, all expenses set forth in Appendix B, and all other additional expenses that CARRIER has borne that, under this Agreement, INDEPENDENT CONTRACTOR is obligated to bear. CARRIER shall provide INDEPENDENT CONTRACTOR written itemization and documentation of all charge backs prior to making such charge backs.

11. FINAL SETTLEMENT

With respect to final settlement, the failure on the part of INDEPENDENT CONTRACTOR to allow CARRIER to remove and recover all identification devices and other property belonging to CARRIER shall constitute a breach of Agreement. Such breach shall entitle CARRIER to withhold any payments owed to INDEPENDENT CONTRACTOR until such obligations are met. The parties agree that, in addition to any other right, remedy or claim CARRIER may have, INDEPENDENT CONTRACTOR shall pay CARRIER $50.00 per day for INDEPENDENT CONTRACTOR’S failure to allow CARRIER to remove and recover such property. CARRIER shall have a period of forty-five (45) days after termination of the Agreement to verify the account if INDEPENDENT CONTRACTOR as to money owed to make appropriate deductions before final settlement.

12. PASSENGER AUTHORIZATION

Pursuant to prohibitions under governmental regulations, INDEPENDENT CONTRACTOR agrees not to transport or allow being transported any unauthorized person or persons in the Equipment while in operation in the performance of the Agreement. CARRIER may immediately terminate this contract with INDEPENDENT CONTRACTOR if a violation of this provision occurs. INDEPENDENT CONTRACTOR shall not allow any passengers to ride in the Equipment unless authorized in writing by CARRIER as required by law. Before passenger authorization will be given by CARRIER, INDEPENDENT CONTRACTOR (or its driver) and the passenger requesting authorization shall submit a fully executed Passenger Authorization and Release of Liability form to CARRIER for prior approval.

13. LOADING AND UNLOADING

Except as set forth in Appendix A, INDEPENDENT CONTRACTOR shall be responsible for the loading or unloading of property transported on behalf of CARRIER at INDEPENDENT CONTRACTOR’S sole cost and expense.

14. NON-COMPETE AGREEMENT

INDEPENDENT CONTRACTOR, in consideration of CARRIER entering into this Agreement, hereby consents and agrees, during the term of this Agreement and for a period of one (I) year after its termination, not to engage, directly or indirectly, individually or as employee, officer, director, shareholder, owner, partner, contractor, dispatcher, or consultant in any entity, in soliciting, transporting or handling business of any customers of CARRIER served by CARRIER while INDEPENDENT CONTRACTOR was under contract CARRIER. In addition, during the term of this Agreement and for a period of one (I) year after its termination, INDEPENDENT CONTRACTOR agrees not to solicit, employ or entice any employees of CARRIER or contractors under contract to CARRIER from their relationship with CARRIER. The parties agree that INDEPENDENT CONTRACTOR shall pay CARRIER, as liquidated damages and not as a penalty, an amount equal to thirty-five percent (35%) of the gross revenue of any and all business obtained by INDEPENDENT CONTRACTOR by virtue of INDEPENDENT CONTRACTOR’S breach of this non-compete agreement for a period of one (I) year thereafter as just and reasonable compensation to CARRIER, and the parties further agree that INDEPENDENT CONTRACTOR shall pay CARRIER all costs of collecting these liquidated damages, including reasonable attorney fees. If request. INDEPENDENT CONTRACTOR shall provide CARRIER, within ten (10) days of such request, all information and documentation regarding such gross revenues to assist CARRIER in verifying that the correct amount of liquidated damages is paid. In the event that a provision of this Agreement is found by a court of competent jurisdiction to be void, illegal or invalid, the remaining provisions shall nevertheless be binding with the same force and effect as if the void, illegal or invalid parts were deleted.

15. BENEFIT

This Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors.

16. NOTICE

All notice provisions of this Agreement shall be writing delivered personally, by postage prepaid, first call mail, or by facsimile machine to the addressees or fax number shown at the end of this Agreement.

17. COMPLETE AGREEMENT

This Agreement, including any Appendices attached, constitutes the sole, entire, and existing agreement between the parties herein, and supersedes all prior agreements and undertakings, oral and written, expressed or implied, or practices, between the parties, and expresses all obligations and restrictions imposed on each of the respective parties during its term, except those specifically modified or changed mutual written agreement between CARRIER and INDEPENDENT CONTRACTOR. This Agreement shall be deemed to have been drawn in accordance with the statutes and laws of the State of Illinois and in the event of any disagreement or litigation, the laws of this state shall apply and suit must be brought in this state, except that CARRIER may bring suit against INDEPENDENT CONTRACTOR in any state where INDEPENDENT CONTRACTOR resides or is located

APPENDIX A

1. GROSS RATE BASED COMPENSATION

CARRIER shall pay INDEPENDENT CONTRACTOR 88% of gross rate based on conformation for each load, compensation for detention, multiple stop-offs load/unload and load/unload – are already included in rate conformation. INDEPENDENT CONTRACTOR agrees to reimburse CARRIER for any cost of renting the trailer in his behalf and cost of insurance – based on monthly deductions from his paycheck.

2. ADVANCES ON COMPENSATION

At the sole discretion of CARRIER, CARRIER may pay INDEPENDENT CONTRACTOR an advance of INDEPENDENT CONTRACTOR’S compensation in the amount of Twenty-Five percent (25%) of gross compensation due INDEPENDENT CONTRACTOR at time of request. All such advances will be charged back to INDEPENDENT CONTRACTOR at cost of 2% of gross compensation, pursuant to Paragraph II of this Agreement. INDEPENDENT CONTRACTOR hereby authorizes CARRIER to make advance payments as outlined in this paragraph to any driver that may be operating the Equipment on behalf of INDEPENDENT CONTRACTOR at additional 10% cost of advance payment.

3. RECRUITMENT INCENTIVE

In addition to the compensation set forth above, CARRIER shall also pay INDEPENDENT CONTRACTOR an incentive for each additional contractor that contracts with CARRIER as direct result of a referral make by INDEPENDENT CONTRACTOR. In the event that the referred or recruited contractor remains under contract with CARRIER for a minimum of 180 days, then INDEPENDENT CONTRACTOR, provided INDEPENDENT CONTRACTOR is still under contract with CARRIER, shall receive an incentive, $250.00. CARRIER shall have the exclusive right to determine if a referral made by INDEPENDENT CONTRACTOR directly results in the recruitment of a new contractor, and this incentive shall not apply if the recruited or referred contractor has previously worked under contract or as an employee driver for CARRIER.

4. MISCELLANEOUS

Payment make beyond those set forth in this Appendix shall be determined on a case-by-case basis. Any payments made by the payment schedule set forth in Appendix A shall not be construed to create any additional liabilities by the CARRIER for similar service or equipment provided by INDEPENDENT CONTRACTOR at a different time either previous to or subsequent to the service or equipment provided wherein payment was made.

APPENDIX B

CARRIER shall have authority to deduct form any compensation owed to INDEPENDENT CONTRACTOR, or have the tight to offset with respect to any funds held by CARRIER, the following items:

1. Any advance of any kind make by CARRIER to INDEPENDENT CONTRACTOR’S driver or agents.

2. Payment for any loss or damage to third persons up to $2, 500.00 (as an insurance deductible).

3. Payment for Damage to or loss of cargo up to $2,500.00 per incident (as an insurance deductible).

4. Payment for any loss or damage to third person; damage to or loss of cargo and loss or damage to CARRIER’S trailer or property shall be subject to an aggregate of $2,500.00 per occurrence. Provided, however, that INDEPENDENT CONTRACTOR shall be responsible for the entire claim if the claim is caused, in whole or in part, by the willful or intentional acts or omissions of INDEPENDENT CONTRACTOR or its driver.

5. Unless INDEPENDENT CONTRACTOR provides items listed below, CARRIER may, but is under no obligation to, initially pay for and later charge back to INDEPENDENT CONTRACTOR and/or deduct form any compensation owed to INDEPENDENT CONTRACTOR and/or reserve funds immediately at time of settlement, any of the following: license registration fees, mud flaps, flags, fuses, reflectors, lights, light bulbs, citations, repairs, cash advances, cargo claims, accident claims, insurance, tires, telephones, towing charges, and other repairs or maintenance for INDEPENDENT CONTRACTOR’S equipment.

6. INDEPENDENT CONTRACTOR shall pay for any driver during each contract period as follows:

A. $50.00 for certification
B. $80.00 for pre-employment drug test

Hora Express

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