CONTRACT NO.______

DATED______

Original

AGREEMENT

made this day of 19 , by and between_________________________________________

hereinafter referred to as FORWARDER, and_____________________________________________

hereinafter referred to as CARRIER.

WITNESSETH:

(1) (a) _____________ is a regulated Freight Forwarder of General Commodities pursuant to 49

U.S.C. 13903, authorized by Permit No._______________ (a copy of which permit is attached

hereto and made a part hereof) to engage in operations as a Freight Forwarder in connection

with the transportation of general commodities, except household goods, between points in the

United States.

(b)_______________is authorized by 49 U.S.C. 14101 (b) (1) to enter into contracts with

motor carriers. This contract relates solely to the movement of general commodities.

(2) (a) CARRIER is a licensed Contract Carrier pursuant to 49 U.S.C. 13902, authorized by

License No. MC-________________, (and subs thereto, a copy of which license is attached

hereto and made a part hereof), to engage in operations in connection with the transportation

of general commodities, except household goods, between points in the United States.

(b) CARRIER is authorized by 49 U.S.C. 14101 (b) (1) to enter into contracts with shippers.

This contract relates solely to the movement of general commodities.

NOW THEREFORE, in consideration of the representation made herein, the parties agree as follows:

This AGREEMENT shall be governed by Title 49 of the United States Code and the Code of

Federal Regulations.

This AGREEMENT is to become effective ________________________, and shall remain in effect

for a period of one year from such date, and from year to year thereafter, subject to the right of either party

hereto to cancel or terminate the AGREEMENT at any time upon not less than thirty (30) days written notice

of one party to the other. FORWARDER has placed on file a signed copy of this agreement with the Law

Office of M. Shields, Gallagher & Gallagher, P.C., at 132 Main Street, Haydenville, MA 01039-0387, where it

is available for inspection and verification by the signatories, their designated agents, their designated legal

representatives, an/or any other party or parties holding forth a legitimate claim of interest in the terms of this

agreement.

(a) CARRIER shall issue a uniform standard bill of lading for property it receives for transportation as

defined in 49 U.S.C. § 13102 (19) and the services related to that movement under this contract

and shall be liable to the person entitled to recover under the bill of lading. The liability imposed by

this paragraph is for the actual loss or injury to the property. Failure to issue a bill of lading does

not affect the liability of CARRIER. CARRIER’S liability shall be the same as a common carrier’s

liability under 49 U.S.C. §14706. These goods do not move under any limitation of liability or any

released rates.

(b) CARRIER agrees to maintain cargo insurance in the amount of $________ to compensate those

parties entitled to recover under the preceding paragraph. CARRIER shall cause its insurance

carrier to forward forthwith to FORWARDER a standard Certificate of Insurance, which Certificate

shall require the insurance carrier to give FORWARDER written notice thirty (30) days prior to the

cancellation of such cargo insurance.

(c) CARRIER’S liability shall begin at the time cargo is loaded upon CARRIER’S equipment at the

point of origin, and continue until said cargo is delivered to the designated consignee at destination,

or to any intermediate stop-off party, and includes the non-transportation services described in 49

U.S.C. 13102 (19).

(d) CARRIER agrees to defend and hold harmless FORWARDER against any and all loss or damage

claims on each shipment transported by CARRIER pursuant to this Agreement. CARRIER further

agrees to defend and hold harmless FORWARDER from all and any liability, costs and damages to

persons and/or property arising out of CARRIER’S operations hereunder, including but not limited

to all road, fuel, and other taxes, fees or permits related to the shipments transported by CARRIER

as arranged by FORWARDER. This indemnification shall include payment of legal fees

necessitated by FORWARDER’S defense against such claims.

(a) FORWARDER shall offer to CARRIER for shipment a minimum quantity of not less than _______

pounds per year, or a minimum of __________shipments for each year this agreement remains in

effect, and CARRIER agrees to transport those shipments during that period of time.

(b) FORWARDER agrees to pay CARRIER for the transportation of the commodities moved under this

agreement in accordance with the rate set forth herein or Addenda thereto, within _______ days of

the receipt by FORWARDER of CARRIER’S invoice covering such transportation.

(a) The basic transportation rates negotiated between parties are:

(1) Freight, all kinds: truckload shipment $__________/mile, between all points in the United

States.

(2) Freight, all kinds: less than truckload shipment, (less than 5,000 pounds) $_________/mile,

between all points in the United States.

(b) The parties agree that the fixed rates may be amended, based on the market conditions then

prevailing. The methodology for amending the fixed rate will be as follows. After a rate is agreed

to by the parties, one party shall fax to the other party a rate confirmation sheet, which document

will identify the shipment by: DATE OF TENDER, ORIGIN, DESTINATION, COMMODITY,

ESTIMATED WEIGHT, AGREED RATE. These rate confirmation sheets shall be on an accepted

amendment to this agreement, and on the upper right corner of the sheet there shall be a reference

to the agreement for identification. Because of storage difficulties, the rate confirmation sheet need

not be attached to the original agreement, but it may be kept with the shipping papers that are

retained as to the individual shipment. The same requirements of retention and availability to

inspection that apply to the written agreement shall apply to the Rate Confirmation Sheet. If either

party disputes the accuracy of the amended fixed rate, that party shall within 24 hours of receipt of

it notify the other party, and a disputed rate shall not become an amended fixed rate until agreed to

by both parties.

(1) CARRIER shall issue a receipt or a bill of lading for property it transports, and shall be liable to

the person entitled to recover under the receipt of the bill of lading. If the consignor has

prepared a uniform standard bill of lading in accord with 49 U.S.C. 81 et seq., CARRIER, when

picking up the shipment, shall sign the bill of lading as the agent of FORWARDER, and

FORWARDER shall be shown on the bill of lading as the carrier.

(2) Carrier shall simultaneously issue a bill of lading identifying FORWARDER as the consignor and

consignee of the shipment. Such bill of lading may be prepared by either FORWARDER or

CARRIER, and a signed copy of it, and CARRIER’S bill of lading shall be returned to

FORWARDER as proof of delivery. Receipt of the signed motor carrier bill of lading is a

prerequisite to payment by the FORWARDER to CARRIER.

CARRIER will assume full liability for the actual loss of or injury to the property tendered to

CARRIER to negate a possibility of CARRIER moving those goods on released rates with a limitation of

liability, and Paragraph III (a) specifically imposes this obligation upon CARRIER. All claims shall be settled

in accordance with 49 C.F.R. § 1005, and Paragraph VIII extends the time for filing of claims and

subsequent suits, and this is also designed to meet the distinct needs of FORWARDER. CARRIER makes

guarantees as to transit time in accordance with Paragraph X (below).

(a) Cargo claims shall be investigated and settled in accordance with the regulations codified at 49

C.F.R. §1005 as in effect on December 30, 1995. As a condition precedent to recovery, claims

must be filed in writing with the receiving or delivering carrier, or carrier issuing this bill of lading, or

carrier on whose line the loss, damage, injury or delay occurred, or carrier in possession of the

property when the loss, damage, injury or delay occurred, within one year after delivery has

elapsed. Suits shall be instituted against any carrier within two years, three months and one day

from the day when notice in writing is given by the carrier to the claimant that the carrier has

disallowed the claim or any part or parts thereof specified in the notice. Where claims are not filed

or suits are not instituted thereon in accordance with the foregoing provisions, no carrier hereunder

shall be liable, and such claims shall not be paid.

(b) If any dispute arises about a cargo claim, the party who alleges a violation may file suit in the

federal district or the state and county in which FORWARDER is located.

If a dispute arises out of or relates to this Agreement, other than a dispute about cargo claims, and

the parties have not been successful in resolving the dispute through negotiation, the parties agree to

attempt to resolve the dispute by submitting the dispute to mediation by the American Arbitration Association

(“AAA”). Each party shall bear its own expenses and an equal share of the expenses of the mediator and

the fees of the AAA. The parties, their representatives, other participants and the mediator shall hold the

existence, content and result of the mediation in confidence. If such dispute is not resolved by such

mediation, the parties shall have the right to resort to any remedies permitted by law. All defenses based on

the passage of time shall be tolled pending the termination of the mediation. Nothing in this clause shall be

construed to preclude any party from seeking injunctive relief in order to protect its rights pending mediation.

A request by a party to a court for such injunctive relief shall not be deemed a waiver of the obligation to

mediate.

FORWARDER and CARRIER may make agreements on each shipment as to required transit time.

Such agreements may make the transit time obligation less or more than “reasonable dispatch”. In the

absence of an agreement between the parties, the following transit time schedule shall apply. (1) On

shipments moving less than 500 miles, next day delivery. (2) On shipments moving more than 500 miles,

one day more for every increase of 500 miles, or part thereof. (To illustrate: on a shipment moving 2900

miles, delivery shall be made in six (6) days. Safety on the Highways is of major concern to both parties,

and these transit times are compatible with the Federal Highway Administration’s Safety Rules.

The relationship of CARRIER to FORWARDER shall, at all times, be that of an independent

contractor.

CARRIER shall not solicit traffic from any shipper, consignor, consignee or customer of

FORWARDER where (1) the availability of such traffic first became known to CARRIER as a result of

FORWARDER’S efforts, or (2) where the traffic of the shipper, consignor, consignee or customer of

FORWARDER was first tendered to CARRIER by FORWARDER. If CARRIER breaches this agreement

and “back-solicits” FORWARDER’S customers, and/or obtains traffic from such a customer, FORWARDER

is then entitled, for a period of fifteen (15) months after the involved traffic first begins to move, to a

commission from CARRIER of 15% of the transportation revenue received on the movement of the traffic, as

liquidated damages. Termination of this contract shall not affect the enforceability and applicability of the

foregoing provisions of this clause for a period of 15 months after termination.

CARRIER agrees that it shall transport all loads tendered to it under its own authority, on

equipment owned or leased by it, and use employees or independent contractors under contract with it.

Should a violation of the preceding sentence occur, CARRIER agrees to pay any and all charges relating to

the movement of the shipment, and to indemnify and hold harmless SHIPPER and/or SHIPPER’S

customers from any and all freight charges claimed to owe directly to the underlying motor carrier.

CARRIER also agrees to settle any cargo claims that may arise in connection with a violation of this

paragraph pursuant to 49 U.S.C.§ 14706.

Neither party hereto will be liable for the failure to tender or timely transport freight under this

Agreement if such failure, delay or other omission is caused by strikes, acts of God, war, accidents, civil

disorder, or through compliance with legally constituted order of civil or military authorities.

If any part of this Agreement is held unenforceable, the rest of the Agreement will continue in effect.

IN WITNESS WHEREOF,

The parties have set their hands and seals this _______ day of ________________, 199__.

CARRIER_____________________________ Freight Forwarder_____________________

BY___________________________________ BY _________________________________

TITLE________________________________ TITLE_______________________________

CONTRACT FORM © M. Shields, Gallagher & Gallagher, P.C. (feb98)