In consideration of the covenants and agreement contained herein, enter into this independent Contactor Agreement (AGREEMENT).

Transcription

1 R-Man Inc. a Missouri Corporation, (Carrier), and ICC Regulated Contract Carrier, with office located at 6916 N Quincy ave Kansas City, MO 64119, and (independent), located at In consideration of the covenants and agreement contained herein, enter into this independent Contactor (AGREEMENT). 1. Authority of Carrier. CARRIER, is engaged in business as an Authorized Contract Carrier of property by permission of the United States Interstate Commerce Commission (ICC). The docket number assigned to CARRIER by the ICC is sworn to be MC USDOT # Provision of Services and Equipment. During the time period set forth in this Paragraph, INDEPENDENT shall provide CARRIER transportation related services and the equipment set forth below or in an Appendix (Equipment). INDEPENDENT represents and warrants that INDEPENDENT has title to or is authorized to contract the Equipment and services to CARRIER. INDEPENDENT s EIN Number or Social Security Number: Tractor/Trailer Number Year Make and Model Serial Number VIN License Plate Number 3. Duration of the AGREEMENT (49 CFR (b)). This shall begin on the date indicated on the signature page of the, and shall remain in effect until terminated in accordance with the provisions of Paragraph 10. Either party for any reason or cause may terminate this at any time in accordance with provisions of Paragraph Compensation (49CFR (d)). It is expressly understood and agreed that INDEPENDET s compensation shall be as set forth in Appendix A and such compensation shall constitute the total compensation for everything furnished, provided, P a g e 1 16

2 or done by INDEPENDENT in connection with this, including driver s services, except as otherwise set forth in this. 5. INDEPENDENT s responsibilities. a. Compliance with Pertinent Laws and Regulations i. INDEPENDENT shall provide competent drivers who meet all of the requirements of the United States Department of Transportation, including but not limited to, familiarity and compliance with state and deferral motor carrier safety laws and regulations. ii. INDEPENDENT shall carry a copy of this AGREEMENT in the Equipment at all times and file with CARRIER, every Monday by 5p.m. Central time, All log sheets, physical examination certificates, accident reports, and any other required data, documents or reports. iii. INDEPENDENT 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 a carrier with which the Equipment has been subcontracted. iv. INDEPENDENT further agrees not to receive any credit extension on CARRIER s name or in any way to use CARRIER s name to obtain credit, unless INDEPENDENT first receives CARRIER s written consent to do so. v. INDEPENDENT agrees to carry worker s compensation insurance or occupation accident insurance, subject to the legal requirements of the State of Missouri, and the state of INDEPENDENT s residence, as outlined in Appendix B to the. b. Operational Expenses (49CFR (e)). i. INDEPENDENT shall, at its sole cost and expense, provide all the Equipment ready to operate and fully roadworthy, including the necessary licenses, permits, cab cards, vehicle identification stamps, and state base plates, and shall furnish necessary oil, fuel, tires, and other parts, supplies and equipment necessary or required for the safe and efficient operation and maintenance of the Equipment, including repairs for the operation of such Equipment; and shall pay all other expenses incident to such operation, including, but no limited to, highway use taxes, weight taxes, state property or indefinite situs taxes, fuel taxes, license, permit and registration fees, ferry and toll charges, and detention and accessorial charges not collected by CARRIER because of INDEPENDENT s failure to provide the required documentation. ii. If CARRIER receives refund or credit for a state base plate purchased by INDEPENDENT from, and issued in the name of, CARRIER, or if such base plate is authorized by INDEPENDENT to be resold by CARRIER to another INDEPENDENT, CARRIER shall refund to P a g e 2 16

3 INDEPENDENT a prorated share of the amount once received by CARRIER. iii. Unless otherwise required by law, empty mileage expense shall be responsibility of INDEPENDENT. iv. INDEPENDENT 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 operates, the Department of Transportation, and the Federal Highway Administration. v. INDEPENDENT agrees to pay all fines, including but not limited to safety or equipment fines, imposed for violation of any law or regulation by the state in which INDEPENDENT operates, the Department of Transportation, or the Federal Highway Administration, where such violation results, at least partially, from the acts or omissions of INDEPENDENT. vi. Except when the violation results from the acts or omissions of INDEPENDENT, CARRIER shall assume, on regulated interstate loads only, the risks, and costs of fines for overweight and oversize trailer when such trailers are preloaded 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 s control. c. Cargo Claims (49 CFR (i)). Independent shall immediately report all cargo claims, including all shortages, overages or other exceptions to the cargo, to CARRIER. INDEPENDENT shall be liable for each cargo claim or accident for which INDEPENDENT is at fault, including but not limited to, delay, shortage, misdelivery, and any damage claim relating to lost, damaged or contaminated loads, arising out of, or in connection with INDEPENDENT s services. d. Trailer Damage (49 CFR (i)). INDEPENDENT shall be liable for, and pay for, damages to CARRIER equipment, including but not limited to, towing charges and reasonable attorney s fees, arising out of, or in connection with, INDEPENDENT s use of; CARRIER s trailers, CARRIER s customer s trailers, other equipment of CARRIER s, or equipment of any other carrier. e. Insurance (49 CFR (j)). The responsibilities and obligations between CARRIER and INDEPENDENT involving insurance shall be as specified in Paragraph 5, subparagraph d, and in Appendix B, CARRIER shall have no insurance responsibilities or obligations pertaining to INDEPENDENT other than those expressly stated in this AGREEMENT or mandated by law. f. Accident Reports. INDEPENDENT shall immediately report any accident to CARRIER involving operations under this, including INDEPENDENT s written report of such accident within thirty-six (36) hours of the accident. In the event INDEPENDENT fails to notify CARRIER of the P a g e 3 16

4 accident as required herein of the accident s occurrence this may be terminated. g. Reporting Requirements. INDEPENDENT shall call CARRIER s dispatch office each day between the hours of 8:00 a.m. and 10:00 a.m. Central time to notify CARRIER of INDEPENDENT s progress and delivery schedule/availability. Non-compliance with this paragraph will result in a fifty dollar ($50) penalty assessed against INDEPENDENT for each violation. h. Duty to Inspect Equipment. INDEPENDENT acknowledges that it is familiar with conditions imposed on the occasion of the use of rental equipment, and acknowledges the need for inspection of that equipment upon receipt. INDEPENDENT understands that Equipment have to be inspected on DAILY BASES! i. Duty to Obtain Customer Approval. INDEPENDENT understands its obligation to obtain customer signatures upon delivery for freight delivered to customers. INDEPENDENT shall obtain signed bills of lading indication a clear delivery of freight; otherwise a call must be placed to CARRIER. INDEPNDENT shall only be due compensation when clear delivery receipts are provided to CARRIER. j. Shipper s Load and Count. If INDEPENDENT is tendered a load sealed by the shipper, INDEPENDENT is to notate shipper s load and count upon the shipping documents and bills of lading. k. Failure in the event that INDEPENDENT fails to complete a trip, abandons a shipment, suffers a breakdown or accident that prevents INDEPENDENT from fulfilling INDEPENDT s obligations, or otherwise subject CARRIER to liability directly or indirectly, INDEPENDENT shall receive no compensation for the services performed on said activity, and CARRIER shall have the right to complete performance in any manner of method it sees fit, using substituted equipment or services. INDEPENDENT shall be due from the compensation of its trip, in the event that its failure to perform result from other than its own negligence, the difference between the amount due and the cost to complete the trip performance. 6. CARRIER s responsibilities. a. Exclusive Possession and Responsibility (49 CFR (c)). The Equipment shall be for CARRIER s exclusive possession, control, and use for the duration of the. CARRIER shall assume complete responsibility for the operation of the Equipment for the duration of this. This subparagraph is set forth solely to conform to federal leasing regulations and shall not be used for any other purposes, including any attempt to classify INDEPENDENT as an employee of CARRIER. b. Inspection of Equipment. CARRIER certified that, before taking possession of the Equipment, the Equipment was inspected by one of its responsible and competent employees or agents. P a g e 4 16

5 c. Identification of Equipment (49 CFR (c)). Carrier shall identify the Equipment in accordance with the requirements of the federal Highway Administration, 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 shall remove such identification at the termination of this and immediately return such identifications to CARRIER. INDEPENDENT further agrees to keep the Equipment in clean appearance and identified as described herein, at its sole cost and expense. d. Insurance. Unless authorized to be self-insured, CARRIER shall maintain trailer interchange (if applicable), public liability, property damage, and cargo insurance in such amount, not less than limits, as are required by the Federal Highway Administration, Department of Transportation, and applicable state regulatory agencies. CARRIER shall maintain insurance coverage for the protection of the public pursuant to the Federal Highway Administration s regulations under 49 U.S.C INDEPENDENT shall be responsible for any and all damages to CARRIER equipment while in the possession or control of INDEPENDENT, its agents or employees if attributable to the accident or driver negligence. Insurance shall be maintained at INDEPENDET s expense. e. Availability. Pursuant to the, CARRIER agrees to make freight or equipment available to INDEPENDENT for transportation at such times and in such amounts as CARRIER may choose to offer and INDEPENDENT may choose to accept. CARRIER does not guarantee any specific number or frequency of loads and INDEPENDENT is free to accept or reject any freight or equipment offered. f. Testing and Records. CARRIER shall provide for the benefit of INDEPENDENT the following: i. Medical physical testing for its drivers as prescribed by the US DOT ii. Annual and/or random drug screening of her/himself and its drivers iii. Pre-employment drug screening for prospective drivers iv. Pre-employment validation of driving experience and insurance information v. Storage of driver s logs and trip sheets in accordance with the rules determine by the US DOT 7. Customer Satisfaction. INDEPENDENT and CARRIER agree that customer satisfaction is of crucial importance to them in the performance of the obligations hereunder. Accordingly, each party pledges to the other that it will conduct itself in a manner that seeks to promote such customer satisfaction and will report to the other any disagreements, altercations or disputes involving any customer, its agents or employees. 8. INDEPENDENT is not an employee of CARRIER. It is expressly understood and agreed that INDEPENDENT is an independent contractor for the Equipment and driver services provided pursuant to the, and that INDEPENDENT agrees to defend, indemnify and hold CARRIER harmless for any claims, suits, or actions, including P a g e 5 16

6 reasonable attorney s fees in protecting CARRIER s interests, brought by INDEPENDENT, employees, and union, the public or state or federal agencies, arising out of the Equipment pursuant to this. In this regard, INDEPENDENT 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 pursuant to this. Proof of such control and responsibility shall be submitted to CARRIER by INDEPENDENT as required by CARRIER and may include, but not limited to, proof of highway use tax being currently paid when INDEPENDENT purchases the license; proof of income tax being currently paid; proof of payment of payroll tax for INDEPENDENT s drivers and a certificate of insurance containing a 30-day notice of change and/or cancellation clause. As required by law, CARRIER agrees to file information tax returns (form 1099) on behalf of INDEPENDENT if INDEPENDENT is paid more than the statutory amount in compensation during a calendar year. 9. Replacement of Equipment. It is in the best interests of both CARRIER and INDEPENDENT that good, serviceable equipment is used. Therefore the ensuing items shall be followed: a. Equipment shall not be more than five (5) years old from the date of commencing the. Equipment shall not be more than eight (8) years old before it should be replaced; however, if equipment passes US DOT inspection and CARRIER s insurance approval, the equipment may remain in service for a longer period, at CARRIER s discretion. b. If any equipment becomes in operative, INDEPENDENT has the option of replacing said equipment c. When equipment becomes unserviceable, uninsurable, or unmanageable, the INDEPENDENT has the option to replace such equipment with comparable equipment or to terminate the with an immediate written notice to CARRIER as soon as the information becomes apparent. 10. Termination. a. Means of Termination. This shall be continuous and may be terminated, at any time, by either party upon fifteen (15) days written notice or immediately in the event of a breach by the other of any term or obligation contained in the. 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 and reason(s) therefore. If, in CARRIER s judgment, INDEPENDENT has subjected CARRIER to liability because of INDEOENDENT s acts or omissions, CARRIER may take possession of the lading entrusted to INDEPENDENT and complete performance, using the same equipment or any other equipment. In such event, INDEPENDENT shall waive any recourse against CARRIER for such action and INDEPENDENT shall reimburse CARRIER for all direct or indirect costs, expenses, or damages P a g e 6 16

7 including reasonable attorney s fees incurred by CARRIER as a result of CARRIER s taking possession of the lading and completing performance. b. Forfeiture of Escrow Funds. If INDEPENDENT terminates the without providing the required fifteen (15) days notice, INDEPENDENT immediately forfeits his/her Escrow Funds to CARRIER as penalty for termination without notice. c. Return of CARRIER Provided Property. Upon termination of this and prior to final compensation, INDEPENDENT shall return to CARRIER all placards, mobile radios, satellite equipment, delivery receipts, seals, trip permits, and other materials, supplies belonging to or provided by CARRIER. In the event that INDEPENDENT is unwilling or unable to return such materials upon demand, CARRIER may deduct the costs of same as set forth in the receipt given by INDEPENDENT from any funds belonging to INDEPENDENT and within CARRIER s possession (e.g. Escrow Funds). INDEPENDENT shall indemnify and hold CARRIER harmless for claims, fines or losses occasioned by INDEPENDENT s failure to return or remove such placards. CARRIER is given a lien upon any undistributed compensation proceeds from which to satisfy these obligations. d. Settlement. INDEPENDENT understands that CARRIER incurs substantial startup costs in bringing on a new INDEPENDENT. Therefore, should the be terminated before a period of six (6) month by either party, INDEPENDENT agrees that CARRIER shall have the right to charge the INDEPENDENT back for start-up costs incurred on behalf of the INDEPENDENT. These costs may include, but are not limited to, the following: vehicle signage expenses; stickers, permits, and licenses expense for same obtained on behalf of the INDEPENDENT; cargo and liability insurance expenses for insurance obtained on behalf of the INDEPENDENT; and medical expenses for any DOT examinations (drug, alcohol, etc.) CARRIER shall deduct these costs from INDEPENDENT s final compensation or from the INDEPENDENT s escrow account prior to resolution of escrow funds. A summary of costs that could be charged back to INDEPENDENT at Termination is provided in Appendix D to this. 11. Arbitration. In the event that INDEPENDENT disputes any deductions made by CARRIER from INDEPENDENT s compensation, and such dispute cannot be resolved by mutual agreement, the dispute shall be submitted to final and binding arbitration. Arbitration may be requested by INDEPENDENT by giving written notice to CARRIER on or before the tenth (10 th ) day following deduction of the disputed amount. The disputed shall be heard by two (2) person, one (1) similarly situated contractor selected by INDEPENDENT and one (1) person selected by CARRIER. If these two (2) arbitrators cannot agree, they shall choose a third impartial arbitrator whose decision shall be final and binding on both parties. Any arbitration under this paragraph, shall be conducted in the State of Missouri, and if an impartial arbitrator is involved, in accordance with the commercial arbitration rules of the American Arbitration P a g e 7 16

8 Association. The judgment rendered by the arbitrators may be entered in any court having jurisdiction. The parties shall share equally the fee and expenses of the third arbitrator, if any, and the successful, part shall be entitled to recover from the other part the costs incurred, including reasonable attorney s fees. 12. Settlement Period (49 CFR (I)) CARRIER shall settle with INDEPENDENT with respect to services provided under this after INDEPENDENT s submission, in proper form, of those documents necessary for CARRIER to secure payment, including, but not limited to, the signal freight bill, delivery receipt or bill of lading, and property completed logs as required by the Department of Transportation. 13. INDEPENDENT Not Required to Purchase Products, Equipment, or Services from CARRIER (49 CFR (I)) INDEPENDENT is not required to purchase or rent any products, equipment or services from CARRIER as a condition of entering into the. 14. Charge Back (49 CFR (H)). CARRIER shall charge back to INDEPENDENT at the time of payment or settlement, any expenses CARRIER has borne that, under this INDEPENDENT is obligated to bear. Such expenses shall be deducted from the amount of INDEPENDENT s compensation and shall include, but not limited to, those expenses set forth in this as well as C.O.D (cash-on-delivery) and freight collect remittances due CARRIER, cargo claims, property damage, log books, towing charges, the $ deductibles, reasonable attorney s fees incurred in reducing potential liabilities arising out of, or in connection with, INDEPENDENT s actions or failure to act under the terms of this, and all state tax licenses, permits and stamps. CARRIER shall provide INDEPENDENT written itemization and documentation of all charge backs prior to making such charge backs. 15. Final Settlement (49 CFR (F)). With respect to final settlement, the failure on the part of INDEPENDENT to remove all identification devices of CARRIER, and, except in the case of identification painted directed on the Equipment, return them to CARRIER in any reasonable manner, shall constitute a breach of this. Such entitle CARRIER to withhold any payments owed to INDEPENDENT until such obligations are met. The parties agree that, in addition to any other right, remedy or claim CARRIER may have, INDEPENDENT shall pay CARRIER twenty-five dollars ($25) per day for INDEPENDENT s failure to remove and/or return such identification. 16. Escrow Funds (49 CFR (K)). INDEPENDENT authorizes CARRIER to establish an escrow in accordance with the provisions set forth in Appendix C. 17. Lumping and Detention (49 CFR (e)). INDEPENDENT shall be responsible for the loading or unloading of such property at INDEPENDENT s expense. Further, detention charges that are collected by CARRIER shall be directly paid to INDEPENDENT in accordance with its compensation percentages. 18. Benefit. This shall be binding upon and inure to benefit of the parties to this and their respective successors. 19. Notice. All notice provisions of this shall be in writing delivered personally, by postage prepaid, first class mail, or by facsimile machine to the addresses or fax number shown at the end of this and shall be deemed delivered upon receipt if P a g e 8 16

9 personally delivered, upon successful transmission if by facsimile, or on the second business day after the date of mailing if notice is placed in the United States Mail. 20. Complete. This, including any Appendices attached, constitutes the sole, entire, and existing agreement between the parties herein, and supersedes all prior agreement and undertaking, 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 the term, except those specifically modified or changed by mutual written agreement between CARRIER and INDEPENDENT. 21. Choice of LAW. The laws of the State of Missouri shall govern the validity, interpretation, construction and performance of the. 22. Severability. The invalidity or unenforceability of any provision(s) of this shall not affect that validity or enforceability of any other provision hereof, which shall remain in full force and effect. In witness whereof, CARRIER and INDEPENDENT do hereby sign this on day of, the effective date of this. CARRIER R-Man Inc. INDEPENDENT 6916 N Quincy ave Kansas City, MO th Day of March 2014 Armen Budagov President of R-Man Inc. P a g e 9 16

10 Appendix A Independent s Compensation INDEPENDENT shall be paid for its services provided according to the on a weekly basis on the Friday. In order to get paid on following Friday, INDEPENDENT must provide all the proper documentation to CARRIER by Tuesday, three (3) days in advance, by 5pm. In case INDEPENDENT fails to deliver paperwork to CARRIER on Tuesday by 5pm, INDEPENDENT s compensation will not be paid until next week. Signature Print Name and Title Date / / Agreed and Accepted by: 24 th Day of March 2014 Armen Budagov President of R-Man Inc. P a g e 10 16

11 Appendix B Required Insurance Addition 1. Worker s Compensation Insurance. It is the sole responsibility of INEPENDENT to maintain Workmen s Compensation Insurance in accordance with Missouri State Law and other States workmen s compensation requirements. It is understood and agreed INDEPENDENT will hold CARRIER harmless and defend CARRIER from any and all workmen s compensation claims filed by INDEPENDENT, INDEPENDENT s drivers, and/or any other employees of INDEPENDENT involved in its operation of leased equipment. INDEPENDENT will provide CARRIER with a copy of its current Workmen s Compensation Policy and name CARRIER as additional insured thereon. CARRIER does not provide Workmen s Compensation Insurance for INDEPENDENT or its employees and the State of Missouri law does not require CARRIER to do so. INDEPENDENT shall furnish to CARRIER written certificates obtained from INDEPENDENT s insurance carrier showing that all insurance coverage required above has been procured from an admitted carrier in INDEPENDENT s state, is being properly maintained and the premiums therefore are paid, specifying the name of the insurance carrier, the policy, number, the expiration date, naming CARRIER as a certificate holder and further showing that written notice of cancellation or modification of the policy shall be given to CARRIER at least thirty (30) days prior to such cancellation or modification. INDEPENDENT and/or any employees, officer, or director of INDEPENDENT shall not opt out of coverage on such required insurance. 2. In addition to the insurance coverage required under this, it is INDEPENDENT s responsibility to procure, carry and maintain any fire, theft, uninsured motorist and collision insurance coverage that INDEPENDENT may desire for the equipment. INDEPENDENT, on behalf of itself and its drivers, hereby acknowledge that CARRIER provides no uninsured motorist, underinsured motorist, collision insurance, or worker s compensation insurance coverage; Waives any claim against CARRIER for entitlement to benefit under such insurance coverage; and releases CARRIER from any obligation to provide such a coverage. P a g e 11 16

12 Appendix B Required Insurance Addition Sign to confirm that Appendix B was understood and agreed to follow. Signature Print Name and Title Date / / Agreed and Accepted by: 24 th Day of March 2014 Armen Budagov President of R-Man Inc. P a g e 12 16

13 Appendix C Escrow (49CFR (k)) In the event that CARRIER exercises its right to establish an escrow as set forth in Paragraph 16 of the, the following shall be applicable: 1. The amount of principal to be held is escrow (Escrow Funds) shall be one thousand five hundred dollars ($ ). The principal shall be founded in on lump sum or deducted from INDEPENDENT s settlement at a rate of one hundred dollars ($100.00) per week until the amount is paid in full. 2. Escrow Funds shall be held by the CARRIER for the purpose of insuring compliance with the provisions of the and may be applied to the applicable Paragraphs in the. 3. While Escrow Funds are under CARRIER s control, CARRIER shall provide an accounting to INDEPENDENT of all transactions involving such funds by clearly indicating on individual settlement sheets the amount and description of any deduction or addition made to the Escrow Fund. CARRIER shall provide signed receipts to INDEPENDENT for any deposits to such fund. 4. Upon INDEPENDENT s request, CARRIER shall provide INDEPENDENT with an accounting of any transactions involving INDEPENDENT s Escrow Funds. 5. Escrow Funds shall be repaid upon the termination of the provided INDEPENDENT promptly return to CARRIERS all the items supplied by CARRIER, including, but not limited to, all signs, licenses, permits, notices, tax cards, operation authority, and other paperwork and property belonging to the CARRIER. The Amount of Escrow Funds may be reduced to reflect expenses incurred by CARRIER with respect to any efforts undertaken by CARRIER to seek return of such items. Any such reductions shall be accounted for in the final period provided by CARRIER. Escrow may be refunded one year after this had been in place; this decision will be left to carrier's discretion. 6. Escrow Funds, less any reductions as set forth at Paragraph 5, subparagraph b, paragraph 10, subparagraph c, and paragraph 16, shall be repaid within ninety (90) days from the date of termination of this. P a g e 13 16

14 7. In case that Escrow had been refunded one year after this was signed; and being terminated, Escrow Funds will be held from INDEPENDENT s last compensation check. Appendix C Escrow (49CFR (k)) Sign to confirm that Appendix C was understood and agreed to follow. Signature Print Name and Title Date / / Agreed and Accepted by: 24 th Day of March 2014 Armen Budagov President of R-Man Inc. P a g e 14 16

15 Appendix D Termination Chargebacks 1. Materials and Property. As stated in the Independent Contractor, Paragraph 10, subparagraph c, the INDEPENDENT is required to return all CARRIER owned property and materials. Failure to return any materials will result in termination chargebacks for missing materials on the INDEPENDENT s final settlement or Escrow resolution settlement. Failure to return CARRIER s property or materials may also result in legal action in an effort to recover the missing items. Below is a list of materials and property that must be return at termination of ; and associated chargeback for failure to return the item. a. Driver Book $350 b. Key Fob $100 c. Fuel Card $350 d. Company Radio $300 e. Company Radio Charger $25 f. License Plate (if Applicable) $2,250 g. Company stickers & logos $100 h. Logs $ Startup Costs. As stated in the Independent Contractor, Paragraph 10, Subparagraph d, the CARRIER invests significantly in each NEW INDEPENDENT contracted. If INDEPENDENT leaves the fleet before a period of six (6) months, INDEPENDENT will be charged back for startup costs as detailed below: a. DOT Testing and Administrative Fees $295 b. Signs, Permits $245 c. Orientation Fees $345 P a g e 15 16

16 Appendix D Termination Chargebacks Sign to confirm that Appendix D was understood and agreed to follow. Signature Print Name and Title Date / / Agreed and Accepted by: 24 th Day of March 2014 Armen Budagov President of R-Man Inc. P a g e 16 16