A. WHEREAS BROKER is licensed as a Property Broker by the Federal Motor Carrier Safety
Administration (FMCSA) in Docket Number MC--- 1452366, or by appropriate State agencies,
and as a licensed broker, arranges for freight transportation. A copy of BROKER’s authority is
attached as Appendix A and a copy of BROKER’s Surety Bond or trust fund agreement is
attached as Appendix B; and
B. WHEREAS SHIPPER, to satisfy some of its transportation needs, desires to utilize the services
of BROKER to arrange for transportation of SHIPPER’s freight.
NOW THEREFORE, intending to be legally bound, BROKER and SHIPPER agree as follows:
1. TERM. Subject to paragraph 11, the term of this Agreement shall be one (1) year, commencing on the
date first mentioned above, and shall automatically renew for successive one-year periods; provided,
however, that either Party may terminate this Agreement on 30 days written notice to the other Party,
with or without cause, or as otherwise provided in this Agreement.
2. SERVICE. BROKER helps to connect Shippers and Carriers for the shipment of freight and cargo by
providing a platform whereby CARRIER can post details of desired carrying requests and Shippers can shop
and choose such carrying requests. SHIPPER can choose qualified CARRIER on BROKER’s platform to
transport SHIPPER’s freight pursuant to the terms and conditions of this Agreement and in compliance in all
material respects with all federal, state and local laws and regulations relating to the brokerage of the
freight covered by this Agreement. The PARTIES may, upon written mutual agreement, include additional
service terms to be attached as Appendix D.
A. SHIPPER agrees to tender a minimum of three (3) shipments per year to BROKER, and
BROKER agrees to arrange for the transportation of said shipments, as well as any other
shipments offered by SHIPPER. Shipper is not restricted from tendering freight to other
brokers, or directly to motor carriers. BROKER is not restricted from arranging transportation
for other parties.
B. SHIPPER shall be responsible to BROKER for timely and accurate delivery instructions and
description of the cargo, including any special handling requirements, for any shipment.
4. FREIGHT CARRIAGE.
BROKER warrants that it has entered into, or will enter into, bilateral contracts with
each carrier it utilizes in the performance of this Agreement. BROKER further warrants that those contracts
comply with all applicable federal and state regulations and shall include the following provisions:
C. Carrier shall agree to defend, indemnify and hold BROKER and SHIPPER harmless from all
damages, claims or losses arising out of its performance of the Agreement, including cargo
loss and damage, theft, delay, damage to property, and personal injury or death.
D. Carrier shall agree that its liability for cargo loss or damage shall be no less than that of a
Common Carrier as provided for in 49 USC 14706 (the Carmack Amendment). Insufficiency
of Carrier’s insurance coverage or exclusions in Carrier’s insurance coverage shall not
exonerate Carrier from this liability. For shipments, outside of the United States the terms in Foreign Shipments Appendix D of this Agreement shall apply.
E. Carrier shall agree to maintain at all times during the term of the contract, insurance
coverage with limits not less than the following:
General Liability --- $1,000,000 per occurrence/
$2,000,000 per aggregate
Auto Liability --- $1,000,000
Motor Truck Cargo Liability --- $100,000
Worker’s Compensation – as required by law.
BROKER shall verify that each carrier it utilizes in the performance of this
Agreement has insurance coverage as defined above.
F. Carrier shall agree that the provisions contained in 49 CFR 370.1 et seq. shall govern the
processing of claims for loss, damage, injury or delay to property and the processing of
G. Carrier shall authorize BROKER to invoice SHIPPER for services provided by the Carrier.
Carrier shall further agree that BROKER is the sole party responsible for payment of its
invoices and that, under no circumstance, will Carrier seek payment from the shipper,
consignee or BROKER’s customer.
H. H. Carrier shall agree that, at no time during the term of its contract with BROKER, shall it
have an “Unsatisfactory” safety rating as determined by the Federal Motor Carrier Safety
Administration (FMCSA). If Carrier receives an Unsatisfactory safety rating, it shall
immediately notify BROKER. BROKER shall not knowingly utilize any carrier with an
Unsatisfactory safety rating in the performance of this Agreement.
I. Carrier shall agree that the terms and conditions of its contract with BROKER shall apply on
all shipments it handles for BROKER. Any terms in a tariff that are referenced in the carrier
contract which are inconsistent with the contract shall be subordinate to the terms of the
J. Carrier shall expressly waive all rights and remedies under Title 49 U.S.C., Subtitle IV, Part B
to the extent they conflict with the contract.
K. BROKER further warrants it will require proof of insurance and operating authority from
each Carrier and, should BROKER utilize the services of any Carrier or other broker on
SHIPPER’s behalf, which Carrier and/or broker does not have proof of insurance and/or
operating authority, BROKER agrees to indemnify and hold harmless SHIPPER from all
legitimate claims not paid by Carrier, including but not limited to cargo loss and damage
5. RECEIPTS AND BILLS OF LADING.
If requested by SHIPPER, BROKER agrees to provide SHIPPER with proof
of acceptance and delivery of such loads in the form of a signed Bill of Lading or Proof of Delivery, as specified
by SHIPPER. SHIPPER’s insertion of BROKER’s name on the bill of lading shall be for SHIPPER convenience only
and shall not change BROKER’s status as a property broker. The terms and conditions of any freight documentation used by BROKER or carrier selected by BROKER may not supplement, alter, or modify the
terms of this Agreement.
BROKER shall invoice SHIPPER for its services in accordance with the rates, charges and
provisions set forth in Appendix C, attached, and any written supplements or revisions that are mutually
agreed to between the PARTIES. If rates are negotiated between the PARTIES and not otherwise confirmed
in writing, such rates shall be considered “written,” and shall be binding, upon BROKER’s invoice to SHIPPER
and SHIPPER’s payment to BROKER. SHIPPER agrees to pay BROKER’s invoice within 15 days of invoice date
without deduction or setoff. BROKER shall apply payment to the amount due for the specified invoice,
regardless whether there are earlier unpaid invoices. Payment of the freight charges to BROKER shall relieve
SHIPPER, Consignee or other responsible party of any liability to the carrier for non---payment of its freight
charges; and BROKER hereby covenants and agrees to indemnify SHIPPER, Consignee or other responsible
party against such liability.
A. Freight Claims: SHIPPER must file claims for cargo loss or damage with BROKER within nine
(9) months from the date of such loss, shortage or damage, which for purposes of the
Agreement shall be the delivery date or, in the event of non---delivery, the scheduled
delivery date. SHIPPER must file any civil action against BROKER in a Court of Law within two
(2) years from the date the carrier or BROKER provides written notice to SHIPPER that the
carrier has disallowed any part of the claim in the notice. Carriers utilized by BROKER shall
agree in writing with BROKER to be liable for cargo loss or damage as outlined in paragraph
4.b above. The carriers’ cargo liability for any one shipment shall not exceed $2,000,000
unless BROKER is notified by SHIPPER of the increased value prior to shipment pickup and
with reasonable advance notice to allow BROKER and/or the carrier to procure additional
insurance coverage. It is understood and agreed that the BROKER is not a Carrier and that
the BROKER shall not be held liable for loss, damage or delay in the transportation of
SHIPPER's property unless caused by BROKER’s negligent acts or omissions in the
performance of this Agreement. BROKER shall assist SHIPPER in the filing and/or processing
of claims with the Carrier. If payment of claim is made by BROKER to SHIPPER, SHIPPER
automatically assigns its rights and interest in the claim to BROKER so as to allow BROKER to
subrogate its loss. In no event shall BROKER or Carrier be liable to SHIPPER or anyone else
for special, incidental, or consequential damages that relate to loss, damage or delay to a
shipment, unless SHIPPER has informed BROKER in written or electronic form, prior to or
when tendering a shipment or series of shipments to BROKER, of the potential nature, type
and approximate value of such damages, and BROKER specifically agrees in written or
electronic form to accept responsibility for such damages.
B. All Other Claims: The PARTIES shall notify each other within sixty (60) days of learning of
any claims other than cargo loss or damage claims, and shall file any such claims with the
other Party within one hundred eighty (180) days from the date of notice. Civil action, if any,
shall be commenced in a Court of Law within two (2) years from the date either Party
provides written notice to the other Party of such a claim.
Comprehensive general liability insurance $1,000,000 per occurrence/
covering bodily injury and property damage $2,000,000 per aggregate
B. Contingent Cargo Insurance $250,000
C. Errors and Omissions Insurance $250,000
(For data on common insurance coverage limits see www.tianet.org)
BROKER shall submit to SHIPPER a certificate of insurance as evidence of such coverage and which
names SHIPPER as “Certificate Holder”.
9. SURETY BOND.
BROKER shall maintain a surety bond or trust fund agreement as required by the Federal
Motor Carrier Safety Administration in the amount of $75,000 and furnish SHIPPER with proof upon
10. HAZARDOUS MATERIALS.
SHIPPER and BROKER shall comply with all applicable laws and regulations
relating to the transportation of hazardous materials as defined in 49 CFR § 172.800 and §173 et seq. to the
extent that any shipments constitute hazardous materials. SHIPPER is obligated to inform BROKER
immediately if any such shipments do constitute hazardous materials. SHIPPER shall defend, indemnify and
hold BROKER harmless from any penalties or liability of any kind, including reasonable attorney fees, arising
out of SHIPPER’s failure to comply with applicable hazardous materials laws and regulations.
Both parties will discuss any perceived deficiency in performance and will promptly
endeavor to resolve all disputes in good faith. However, if either party materially fails to perform its duties
under this Agreement, the party claiming default may terminate this Agreement on 10 (ten) days written
notice to the other Party. SHIPPER shall be responsible to pay BROKER for any services performed prior to
the termination of this Agreement and for shipments not yet completed and/or not yet invoiced to
Subject to the insurance limits in Section 8, BROKER and SHIPPER shall defend,
indemnify and hold each other harmless against any claims, actions or damages, including, but not limited
to, cargo loss, damage, or delay, and payment of rates and/or accessorial charges to Carriers, arising out of
their respective performances under this Agreement, provided, however, the indemnified party shall not
offer settlement in any such claim without the agreement of the indemnifying party which agreement shall
not be unreasonably withheld. If the indemnified party offers or agrees to a settlement for such a claim
without the written agreement of the indemnifying party, the indemnifying party shall be relieved of its
indemnification obligation. Neither party shall be liable to the other party for any claims, actions or
damages due to the negligence of the other party. Although Section 8 only imposes insurance
requirements upon BROKER, for purpose of this Section 12, those amounts also shall limit the scope of
SHIPPER’s indemnification obligations. The obligation to defend shall include all costs of defense as they
13. ASSIGNMENT/MODIFICATIONS OF AGREEMENT.
Neither party may assign or transfer this Agreement,
in whole or in part, without the prior written consent of the other party. No amendment or modification of
the terms of this Agreement shall be binding unless in writing and signed by the PARTIES.
In the event that the operation of any portion of this Agreement results
in a violation of any law, or any provision is determined by a court of competent jurisdiction to be invalid or
unenforceable, the Parties agree that such portion or provision shall be severable and that the remaining
provisions of the Agreement shall continue in full force and effect. The representations and obligations of
the PARTIES shall survive the termination of this Agreement for any reason.
15. INDEPENDENT CONTRACTOR.
It is understood between BROKER and SHIPPER that BROKER is not an
agent for the Carrier or SHIPPER and shall remain at all times an independent contractor. SHIPPER does not
exercise or retain any control or supervision over BROKER, its operations, employees, or carriers.
Failure of either party to insist upon performance of any of the terms, conditions or
provisions of this Agreement, or to exercise any right or privilege herein, or the waiver of any breach of any
of the terms, conditions or provisions of this Agreement, shall not be construed as thereafter waiving any
such terms, conditions, provisions, rights or privileges, but the same shall continue and remain in full force
and effect as if no forbearance or waiver had occurred.
Unless the PARTIES notify each other in writing of a change of address, any and all notices
required or permitted under this Agreement shall be in writing (or fax with machine imprint on paper
acknowledging successful transmission) and shall be addressed as follows:
18. FORCE MAJEURE.
Neither Party shall be liable to the other for failure to perform any of its obligations
under this Agreement during any time in which such performance is prevented by fire, flood, or other
natural disaster, war, embargo, riot, civil disobedience, or the intervention of any government authority, or
any other cause outside of the reasonable control of the SHIPPER or BROKER, provided that the Party so
prevented uses its best efforts to perform under this Agreement and provided further, that such Party
provide reasonable notice to the other Party of such inability to perform.
19. CHOICE OF LAW AND VENUE.
All questions concerning the construction, interpretation, validity and
enforceability of this Agreement, whether in a court of law or in arbitration, shall be governed by and
construed and enforced in accordance with the laws of the State of California, without giving effect to any
choice or conflict of law provision or rule that would cause the laws of any other jurisdiction to apply.
In the event of a dispute arising out of this Agreement, the Party’s sole recourse shall be
to binding arbitration within two years from the date of the alleged loss. Proceedings shall be conducted
under the rules of the American Arbitration Association (AAA) at the discretion of the party filing the
complaint. Upon agreement of the PARTIES, arbitration proceedings may be conducted outside of the
administrative control of the AAA. The decision of the arbitrators shall be binding and final and the award of
the arbitrator may be entered in a court of competent jurisdiction. The prevailing party shall be entitled
to recovery of costs, expenses and reasonable attorney fees as well those incurred in any action for
injunctive relief, or in the event further legal action is taken to enforce the award of arbitrators. The
arbitration provisions of this paragraph shall not apply to enforcement of the award of arbitration.
BROKER shall not utilize SHIPPER’s name or identity in any advertising or promotional
communications without written confirmation of SHIPPER’s consent and the PARTIES shall not publish, use or
disclose the contents or existence of this Agreement except as necessary to conduct their its operations
pursuant to this Agreement. BROKER will require its carriers and/or other brokers to comply with this
22. ENTIRE AGREEMENT.
This Agreement, including all Appendices and Addenda, constitutes the entire
agreement intended by and between the PARTIES and supersedes all prior agreements, representations,
warranties, statements, promises, information, arrangements, and understandings, whether oral,
written, expressed or implied, with respect to the subject matter hereof.
Signed by authorized person.
New Shipper Credit and Invoicing Details
PREFERRED CREDIT LIMIT:
ACCOUNTS PAYABLE CONTACT
THIRD PARTY PAYMENT PROCESSORS: IN THE EVENT YOU USE THIRD PARTY PAYMENT SERVICES,
YOU ARE PLACING YOUR COMPANY’S CREDIT REPUTATION IN THE HANDS OF OTHER PARTIES
AND ULTIMATELY REMAIN RESPONSIBLE FOR TIMELY PAYMENT OF INVOICES REGARDLESS OF ANY
AGREEMENTS YOU MAKE WITH THE THIRD PARTY. PAYMENT MUST BE MADE IN ACCORDANCE
WITH THE TERMS AND CONDITIONS OF OTR CAPITAL, LLC d/b/a OTR Solutions. NON-PAYMENT OF
INVOICES MAY BE CAUSE FOR SUSPENSION OF CREDIT AND OTHER PENALTIES. PLEASE INCLUDE
ALL BILLING INFORMATION IF YOUR COMPANY IS USING A THIRD PARTY PAYMENT SERVICE.
SIGNATURE & AUTHORIZATION