Application for New Truck Funding Port of Long Beach Clean Trucks Program Checklist to apply for a Clean Truck To obtain a new, clean Port drayage truck, applicants must complete five steps, listed below. After review of the Application for New Truck Funding (Application Forms A through F), additional supporting documentation may be requested. Applicants will be contacted at the primary contact phone number provided in Application Form B Applicant Details. All paperwork must be provided to the Port s Grant Administrator at the Clean Trucks Center located on Terminal Island at the corner of Pier S Avenue and New Dock Street. The Center has bi-lingual advisors to assist applicants to fill out the various forms and to answer questions about the Clean Trucks Program. Completion of the application (Forms A through F) does not guarantee acceptance into the new truck funding program. All applicants must meet the following eligibility requirements. These are further described in Form C of this application. Financial Viability Guidelines: No recent bankruptcy filings or discharges No recent truck repossessions No open federal/state liens or judgments No financial fraud convictions by a court in the United States All applicants must: 1. Provide a signed and completed application. This includes Application forms A through F. 2. Complete and sign an IRS W-9 form (Grant Application form D). 3. Provide a copy of a valid Transportation Worker Identification Credential (TWIC) card, front and back (applicable to individuals). 4. Provide a copy of a valid California Driver s License, front and back (applicable to individuals). 5. Provide proof of drayage operation. The Grant Administrator will attempt to confirm that the applicant has been in drayage service at the ports of Long Beach and Los Angeles for at least the previous twelve months. However, the applicant may be required to submit additional documentation including a letter of experience from the applicant s primary motor carrier, pay stubs, and/or other documentation. 1
Clean Trucks Program Application for New Truck Funding Form A Notice of Obligations Awards for new drayage trucks made through the Clean Trucks Program will be funded by the Port of Long Beach. All applicants that receive awards must agree to several operational and reporting requirements. Please read the following statements and certify that you understand your obligations if you receive an award. I understand that if I receive an award from the Port of Long Beach Clean Trucks Program I must (Please read and initial next to each item): 1. Commit to a 7 year contract. 2. Make a minimum of 300 trips per year to the Port of Long Beach, in compliance with Port tariffs and requirements for Port drayage. 3. Agree to accept the installation of an Automatic Vehicle Locator (AVL) device and a Radio Frequency Identification (RFID) device. These devices may be used to monitor the location and operation of the awarded truck. 4. Keep all documents relating to the award and the operation of the new truck for at least two years after the end of the participant agreement. 5. Provide annual reporting including, but not limited to, the following o Updated contact information (owner name, address, phone, etc.) o Proof of DMV registration o Annual vehicle miles of travel (including mileage/activity logs for documentation) o Summary of maintenance performed and inspections conducted o Documentation of the number of Port of Long Beach visits within the previous 12 month period o Other information as requested by the Port or its designated Administrator 6. Receive an IRS 1099-G Form equal to the amount of the award, which makes me responsible for the reportable income as a result of participation in the program. I do hereby certify that I have reviewed and understand the application, including this Notice of Obligations, and that all of the information I have submitted is true and correct. I understand that completion of the Application for New Truck Funding (Forms A through F) does not guarantee acceptance into the new truck funding program. Authorized Signature Date (Truck Owner) Print Name Title 2
Clean Trucks Program Application for New Truck Funding Form B Applicant Details Please complete the following information about the owner of the truck applying for new truck funding. Completion of this form does not guarantee acceptance into the new truck funding program. All fields must be completed before the application can be processed. If you are applying for funding for multiple trucks, this Form B only needs to be completed once. In addition, please submit one Form C for each truck you would like to receive funding for through the Clean Trucks Program. If you have any questions or would like to schedule an appointment for assistance, please contact the Clean Truck Center at (888) KLN-TRUX. Applicant Information Truck Owner/Applicant (may be an authorized agent with contract signing authority) Last Name (Full) First Name Company Name (if any): Mailing Address Street: City: State: Zip Code: Primary Contact Name: Primary Contact Home Phone Number: ( ) Primary Contact Cell Phone Number: ( ) Email (if available): Are you an Licensed Motor Carrier (LMC) or Independent Owner Operator (IOO)? LMC Independent Owner Operator CA Number: USDOT Number: FMCSA Operating Authority Number: MC FF If you are an Independent Owner/Operator please provide the following information: Name of Primary Licensed Motor Carrier: Number of years with primary Licensed Motor Carrier: 3
Clean Trucks Program Application for New Truck Funding Form C Financing and New Truck Selection The following describes the two funding options available. Based on this information, you will be required to choose between a subsidized lease-to-own program and a subsidized loan. The Port of Long Beach is offering two options for qualified truck owners to obtain funding for new trucks under the Clean Trucks Program (CTP), in recognition that applicants may have differing finance needs. The best option for each applicant will depend on individual circumstances. Common to both options are the following features and requirements: The Port will pay a large portion of each new truck s costs. The Port will also pay for routine preventative maintenance for each new lease-to-own truck, over a period of 7 years. All maintenance of trucks acquired with grants is the responsibility of the owner. However, each applying truck owner must also help fund the new truck, as further described below. Some of these costs to the owner may be partially offset through the new truck s increased fuel efficiency compared to the old truck, and the fact that maintenance is pre-paid by the Port. Applicants must select a new truck from the Port s pre-approved list at a fixed price. Only minor options for the truck are allowed, at the owner s cost. Defaulting on payments for the new truck or failure to meet CTP requirements will result in the Port taking corrective action. This may include repossession of the truck and its redeployment to another qualified applicant. The following summarizes the two funding options from which you can choose: 1. Subsidized Lease-to-Own Program Applicants can choose to lease their new truck, under a 7-year lease-to-own agreement with the Financing Entity that has been selected by the Port. The Port has arranged for the Financing Entity to offer a low monthly lease payment for new trucks. For new trucks the monthly lease payment would be between $300 and $800 for the first two years and between $500 and $1,200 for the next five years. The balance of the monthly lease cost will be paid by the Port. In this way, the Port s subsidy will allow the grantee to enjoy a lower lease payment than would be otherwise available, based on the grantee s own credit rating and the amount financed. The selected Financing Entity will be the owner and lessor of the new truck, and administer the program under the Port s direction in coordination with the Port-appointed Grants Administrator. At the end of the lease term -- provided that the participant is in good standing with the lessor and the CTP -- the Port will provide a up to a 50% subsidy towards the purchase cost of the truck. 4
For Applicants seeking a subsidized lease, credit guidelines including the following will be considered: SUBSIDIZED LEASE: CREDIT GUIDELINES No recent bankruptcies that were discharged in the last year No history of repossessions within the last five years No open Federal / State Liens / Judgments Must have a valid commercial drivers license Other requirements that the Financing Entity takes into account when determining credit qualification. 2. Subsidized Loan As an alternative to the lease-to-own option, qualified applicants can request a subsidy towards the purchase of the new truck. The applicant would have to provide cash or arrange financing for the entire cost of the truck, either through the Port-selected Financing Entity or another Financing Entity identified by the applicant. The Port-selected Financing Entity has the right of first review for all subsidized loans. The amount of the subsidy will be provided through a subsidized seven year loan structure with payments made to the Financing Entity or to the participant in the absence of a Financing Entity. For the trucks, the subsidy will be approximately $105,000. (Refer to the following pages for the price of each new truck option and your estimated cost after factoring in the award.) The participant will be required to sign a Participant Agreement and a security agreement securing the participant s obligations under the award, which includes an obligation to repay the award amount if the obligations (e.g. use of the truck within the Port) are not met. For Applicants seeking a subsidized loan through the Port-selected Financing Entity, credit guidelines including the following will be considered: SUBSIDIZED LOAN: CREDIT GUIDELINES No recent bankruptcies that were discharged in the last 4 years. No history of repossessions within the last five years No open Federal / State Liens / Judgments No aggregate collection/charge-off activity to exceed $4,000 Must have installment history comparable to request Must have a valid commercial drivers license Other requirements that the Financing Entity takes into account when determining credit qualification. Funding Choice (please select one) Subsidized Lease Subsidized Loan 5
New Truck Selection Truck Award Process The Port of Long Beach will award all trucks through two random drawings. The first drawing will be open only to applicants that select the Sterling truck as their new truck. Once the port has exhausted the stock of available Sterling trucks, all remaining applicants will be placed in the second round of drawings along with any applicants that elected not to participant in the first drawing round. The following rules apply to the drawings: 1. Each applicant receives one entry per drawing round, regardless of the number of trucks requested. 2. If selected, an applicant will be limited to a maximum of 10 truck awards, although you may apply for more than 10 trucks. If available funding permits, the port may elect to award an applicant more than 10 trucks. 3. In all cases, an applicant will be limited to the number of trucks they qualify for through the port-approved financing entity; or a financing entity providing credit through the Subsidized Loan option. Drawing 1: Sterling Only Please indicate the number of Sterling trucks you are requesting funding for under Drawing 1 in the table below. If you request trucks under Drawing 1 but are not awarded, these truck requests will automatically be entered into Drawing 2. Quantity Requested Truck Offerrings Cab Type Engine & Horsepower Photo Approximate Cost Sterling LT8500 Day Cab Cummins- $300/month for first 2 $500/month for next 5 years Cost: $151,195* Your Cost:$37,200 320 HP *Sales tax and interest not included Drawing 2: General Drawing (All Other Trucks) Please indicate the number of trucks for which you are requesting funding. Include any trucks you requested in Drawing 1. Note that applicants typically receive a credit approval for a total dollar value. Therefore, you may qualify for more or less trucks based on the vehicle price. For example, if you qualify for $1,000,000 in credit, then you might request 5 trucks at $200,000 each or 6 trucks at $150,000 each. If you are selected in Round 2, the Port will contact you to confirm your truck choices based your available credit. 6
Please indicate the truck you would prefer to lease or purchase. All trucks will be white in color. Quantity Requested Truck Offerings Cab Type Engine & Horse Power Photo Approximate Cost Freightliner M2-112 Day Cab Cummins- $331/month for first 2 $602/month for next 5 years. Cost: $143,318* Your Cost:$44,064 320 HP Freightliner M2-112 Extended Cab Cummins- $364/month for first 2 $710/month for next 5 years Cost: $149,478* Your Cost:$51,336 320 HP Kenworth T800 Day Cab Cummins- 320 HP $300/month for first 2 $500/month for next 5 years. Cost: $137,461* Your Cost:$37,200 Kenworth T800 Extended Cab Cummins- 320 HP $327/month for first 2 $588/month for next 5 years. Cost: $142,502* Your Cost:$43,128 *Sales tax and interest not included 7
Selection Truck Offerings Cab Type Engine & Horse Power Photo Approximate Cost Kenworth T800 ISX-G Day Cab ISX-G 400 HP $600/month for first 2 $800/month for next 5 years. Cost: $174,687* Your Cost:$62,400 Kenworth T800 ISX-G Extended Cab ISX-G 400 HP $645/month for first 2 $948/month for next 5 years. Cost: $183,180* Your Cost:$72,360 Peterbilt 384 Day Cab Cummins- 320 HP $311/month for first 2 $529/month for next 5 years Cost: $139,050* Your Cost:$39,204 Peterbilt 386 ISX-G Day Cab ISX-G 400 HP $720/month for first 2 $1,192/month for next 5 years Cost: $197,161* Your Cost:$88,800 *Sales tax and interest not included 8
Clean Trucks Program Application for New Truck Funding Form D IRS W-9 9
Clean Trucks Program Application for New Truck Funding Form E Independent Owner / Operator Credit Application All IOO applicants seeking port funding must complete the following credit application. This information will, in part, determine which financing options may be available to you. * indicates required field INDIVIDUAL/PARTNERSHIP INFORMATION: Project ID(s): 1 st Time Buyer Ownership Exp. *Number of trucks you currently: Operate: *Full Name: *Social Security Number: *Date of Birth: Own: *Home Phone Number Pager Number Cell Phone Number E-Mail Address *Present Physical/Mailing Address: *City: *County: *State: *Zip: *How Long at Present Address? Years: Months: *Previous Address (If less than 2 years) * Rent Own Live with relatives *Monthly Payment: CO-BUYER INFORMATION (if applicable) Co-Buyer Co-Buyer s SSN: Co-Buyer s Phone Number: Present Physical Address: City: County: State: Zip: Employer Time on job Income Name NEAREST RELATIVES/PERSONAL REFERENCES NOT LIVING WITH YOU: Address City State Zip Phone Name Address City State Zip Phone CURRENT EMPLOYMENT INFORMATION *Total Years of Driving Experience *Years as Owner Operator *Years as Company Driver *Company Name: *City: *State: *Phone: Contact *Years at Current Employer *Months Income Other Annual Income * Company Driver Owner Operator Other Source Amount FUTURE EMPLOYMENT Name City/State Phone Number Contact Monthly Miles Monthly Revenue Paid /mile % of Gross Products to be Hauled Commercial DL# State 10
PREVIOUS EMPLOYERS Name City State Phone Number Contact How Long? Name City State Phone Number Contact How Long? Name City State Phone Number Contact How Long? Trucks/Trailers Owned Description of Collateral Lending Institution City/State Phone # Account # Real Estate Lending Institution City/State Phone # Account # Autos Owned Lending Institution City/State Phone # Account # Bank Account Type Institution City/State Phone # Account # LIKE-KIND EXCHANGE. As part of a like-kind exchange program, Assignee has engaged MBF Account Services, LLC as a qualified intermediary. The originating Dealer/Lessor is hereby notified that the Assignee has assigned to MBF Account Services, LLC its rights (but not its obligations) for the purchase of Equipment described in any leases. In event the Lessee or originating Dealer/Lessor purchases any Equipment, such purchaser is hereby notified that the Assignee has engaged MBF Account Services, LLC its rights (but not its obligations) for the sale of the Equipment described in such Leases. Authorization to Release Credit Information The undersigned certifies that: (a) all of the information contained herein or provided in connection with this Application is true and correct and accurately describes the financial condition of the Customer(s) as of the date hereof; and (b) I will notify DCFS USA LLC and Daimler Trust, and their respective successors, transferees and assigns ("Creditor") if I become aware of any material change in the financial condition of the Customer(s). I hereby authorize Creditor and/or Dealer to make inquiry into, to request, and to receive any information concerning my financial condition, including, but not limited to, obtaining a credit report and contacting any current or former creditors of Customer(s) to verify any information contained herein or received in connection with this Application, which Creditor and/or Dealer deems relevant to the possible extension of credit to Customer(s) ( Information ). I also grant any such creditors permission to release Information to Creditor and/or Dealer. I authorize and permit Creditor to disclose information and any credit decision to any affiliate, assigns or agent of Creditor, the Dealer, Port of Long Beach and/or Port of Los Angeles (whichever applies) and the Ports Grant and Concession Administrator, to the extent permitted by law. I authorize Creditor to file a UCC financing statement. I have applied for a loan, lease or extension of credit from Creditor and I intend to use the purchased Equipment primarily for business or commercial purposes, and not for personal, family, household or agricultural purposes. The foregoing provision shall remain in effect until Customer pays Creditor in full for all outstanding indebtedness under all loans, leases or extensions of credit (if Creditor decides to grant credit to Customer(s)). Applicant Signature: Title (if applicable): Co-Applicant: Title (if applicable): Date: Date: 11
Clean Trucks Program Application for New Truck Funding Form F LMC Credit Application All LMC applicants seeking port funding must (1) complete the following credit application and (2) provide additional financial documentation (see pg. 14 for more information). This information will, in part, determine which financing options may be available to you. LMC Credit Application * Indicates Required Field CUSTOMER DATA Today's Date *Business Start Date *Tax ID # *State of Incorporation *C Corp *S Corp *LLC *Partnership *Sole Proprietorship *Parent Company (if applicable) *Customer Legal Name *Address *DBA Name *US DOT Number (if applicable) *MC Number *City *County *State *Zip *Tel # Fax # *Principal Owner/Guarantor Name *Title *SSN *% Owned *Years with Co. Principal Owner/Guarantor Name Title SSN % Owned Years with Co. Principal Owner/Guarantor Name Title SSN % Owned Years with Co. *Years Experience Years Experience Years Experience FINANCE / INSURANCE INFORMATION *Bank Name *Checking Account # *Contact name *Tel # Bank Name Operating Line # Contact name Tel # Operating Line Secured By: Accounts Receivable All Assets Personal Guaranty Other Vehicle Finance Reference Account # Contact name Tel # Vehicle Finance Reference Account # Contact name Tel # Vehicle Finance Reference Account # Contact name Tel # Any units financed with DCFSA/MBCC? Account # Account Name Yes No Insurance Agency Contact Name Liability Phys Dam. Ded. Tel # Coverage $ $ MAJOR CUSTOMERS Name % Revenue How Long? Years Contact name Tel # Months Name % Revenue How Long? Years Contact name Tel # EQUIPMENT INFORMATION Months *Current Fleet * # Tractors * # Trucks * # Trailers * # of Owner Operators * Total # Units To Be Purchased / Leased * # Additions To Fleet * # Replacements to Fleet 12
LIKE-KIND EXCHANGE. As part of a like-kind exchange program, Assignee has engaged MBF Account Services, LLC as a qualified intermediary. The originating Dealer/Lessor is hereby notified that the Assignee has assigned to MBF Account Services, LLC its rights (but not its obligations) for the purchase of Equipment described in any leases. In event the Lessee or originating Dealer/Lessor purchases any Equipment, such purchaser is hereby notified that the Assignee has engaged MBF Account Services, LLC its rights (but not its obligations) for the sale of the Equipment described in such Leases. AUTHORIZATION TO RELEASE CREDIT INFORMATION The undersigned certifies that: (a) all of the information contained herein or provided in connection with this Application is true and correct and accurately describes the financial condition of the Customer(s) as of the date hereof; and (b) I will notify DCFS USA LLC and Daimler Trust, and their respective successors, transferees and assigns ("Creditor") if I become aware of any material change in the financial condition of the Customer(s). I hereby authorize Creditor and/or Dealer to make inquiry into, to request, and to receive any information concerning my financial condition, including, but not limited to, obtaining a credit report and contacting any current or former creditors of Customer(s) to verify any information contained herein or received in connection with this Application, which Creditor and/or Dealer deems relevant to the possible extension of credit to Customer(s) ( Information ). I also grant any such creditors permission to release Information to Creditor and/or Dealer. I authorize and permit Creditor to disclose Information and any credit decision to any affiliate, assigns or agent of Creditor, the Dealer, Port of Long Beach and/or Port of Los Angeles (whichever applies) and the Ports Grant and Concession Administrator, to the extent permitted by applicable law. I authorize Creditor to file a UCC financing statement. I have applied for a loan, lease or extension of credit from Creditor and I intend to use the purchased Equipment primarily for business or commercial purposes, and not for personal, family, household or agricultural purposes. The foregoing provision shall remain in effect until Customer pays Creditor in full for all outstanding indebtedness under all loans, leases or extensions of credit (if Creditor decides to grant credit to Customer(s)). Customer: Title: Guarantor Name: By: Date: Guarantor Signature: 13
Port of Long Beach Clean Trucks Program New Truck Credit Application Additional Requirements In addition to submitting a credit application, all LMC s are required by the Financing Entity to provide financial statements. The required financial statements include: Either Year-End Balance Sheet & Income Statement OR Previous Years Tax Returns. Previous Year-End Balance Sheet and Income Statement (Example: Customer s year end is Dec. 31, then submit Dec. 31, 2008 Balance Sheet & Income Statement) OR If, Previous Year-End Balance Sheet and Income Statements are not available, then submit Federal Tax Return including Schedules for previous year AND OR Current Year Interim Balance Sheet and Income Statement (Example: March 31, 2009 Balance Sheet & Income Statement) If, Current Year Interim Balance Sheet and Income Statement are not available, then submit prior (2) Year-End Balance Sheets and Income Statements or Federal Tax Returns including Schedules (Example: If, Current Year Interim Balance Sheet and Income Statement are not available, then submit 2007 Year End Balance Sheets and Income Statements AND 2008 Year End Balance Sheets and Income Statements, if the Balance Sheet and Income Statements are not available, then submit previous (2) years Tax Returns including Schedules) A Personal Guarantor is recommended, any officer with ownership in the company can sign as a personal guarantor for a LMC. Fill out the Principal Owner/Guarantor Section on the LMC Credit application and include the following: Principal Owner Name Title of Principal Owner SSN Include if the Principal Owner will be a personal guarantor, this can be left blank if the officer will not be guarantying loan % owned by Principal Owner Years with Company Years Experience Industry Experience of Principal Owner Financial Statements: Balance Sheet: Income Statement: Guarantor: Terminology General term used for Balance Sheet and Income Statement, for the purpose of this request. Identifies a business assets, liabilities, and owners equity as of a certain date. Also known as a Statement of Financial Position or Statement of Financial Condition. Discloses a company s profit or loss during a specified period of time. Also known as a Profit & Loss Statement or a Statement of Operations. Someone who pledges loan will be paid. 14
NOTES SECTION to be completed by CTC Advisors For Independent Owner / Operator and LMC Credit Applications Funding Choice Subsidized Lease Drawing 1 Sterling LT8500 Day Drawing 2 Freightliner M2-112 Day Freightliner M2-112 Ext. Kenworth T800 Day Kenworth T800 ISX-G Day Kenworth T800 ISX-G Ext. Peterbilt 384 Day Peterbilt 386 Day Subsidized Loan Diesel Freightliner Columbia Day Freightliner M2-112 Ext. International 8600 Day International 8600 Ext. Mack CXU613 Day Mack CXU613 Ext. Volvo 64T300 Day Volvo 64T430 Ext. 15