1. Lease Independent Contractor Compensation plan:

·            .90 cpm loaded or empty

            ·                $35 per additional stop between pick up & delivery

·            $2.25 per 1000 lbs loading/unloading

·            $20 pallet jack use per load

·            $50 for delivering or picking up in one of the 5 boroughs of New York

·            $75 per day for orientation

·            Discounts on fuel and tires

·            Base plates & permits paid by company

·            Scale tickets reimbursed by company

·            Toll cards & passes issued (same as company OTR driver)

·            Paid weekly

·            Will have access to use of company maintenance facilities

2.   Lessee will lose all company benefits.  Driver will be terminated as a company driver before the lease is signed.  All benefits will stop at that point.

      For information about Cobra insurance coverage and 401k terminations, driver will have to contact the Benefits Department.  

3.  No major modifications to the truck.  Lessee is not allowed to make modifications or changes to the lease vehicle that cannot be removed without damage (i.e. paint or accessories that require holes being drilled in vehicle. 

4.             Responsible for fuel taxes.  Driver is responsible for all taxes on fuel use.  If driver fuels within company System .01 cpm will be deducted from settlement for fuel taxes and we will file it each quarter.

5.   All major repairs have to be coordinated with MOC.  All maintenance other than oil changes have to be coordinated through the IC Maintenance coordinator to insure work is done properly and to get use of truck warranty.

6.             Required to turn in monthly maintenance reports.  As an Independent contractor you will be required to turn in a monthly report of work done on the truck.  This has to be turned in by the 15^th of each month for the previous month.  It is treated with the same weight as missing logs.

7.  Required Quarterly maintenance inspections.  Company will pay for the inspections, but all work required to get truck to pass is the Lessee’s responsibility.

8.            Independent Contractor will be responsible for self-employment taxes.  You are responsible for all local, state, and federal taxes that apply to you.  Company does not deduct for these taxes out of weekly settlements.

9.   $1,500 deductible for property damage, a $500 deductible for cargo claims.  As an independent contractor, the driver is responsible for the first $1,500 of and accident reserve for physical damage on a preventable accident and/or incident.  If the reserve is lower below the amount paid by the IC, they will be reimbursed the difference, same for Cargo Claims reserve.

10. Settlement Deductions

·                Year of the Trucks: 2002-2004

      ·            Lease Payment: Approx. $370-499/ wk for 3 y r leases

      ·            Fuel- for the previous week

      ·            Insurance- Bobtail, physical damage, and occupational health

                  A. Bobtail-$20/month---$5/wk

                  B. Physical Damage- $153.00/ month -  $ 38.25/ wk      

                  C. Occupational Health- $118/month----$29.50/wk

·          Maintenance- For Road Service charges that closed out in the previous week.

·          Fuel taxes- Figured off of fuel purchases and deducted weekly with fuel charges.  If fueling outside the Hunt system and receipts are not turned in to fleet manager, the company will figure tax liability by the IRS auditing formula and charge for each quarter.

·          Admin fees- Annual $50 admin fee, $20 Road Service charge per occurrence, $10 COM check fee for personal advances.

·          Equipment usage fees- $25/month---$6.50/wk OBC usage charges

·          Escrow payments.  $100/ wk until total equals $3,600 for security deposit.  5 cpm will be taken from all miles ran for a general fund to be used toward tractor maintenance.  The security escrow will only be released upon termination of lease.  There is also a voluntary escrow fund that can be set up at driver’s request for whatever amount requested.  This fund is accessible to the driver during business hours.

Driver Transition Process

1.      Driver will be notified of approval for lease program

2.      Driver will then be scheduled into orientation.

3.      Driver’s fleet manager will be notified and will route driver to home terminal to clean out truck and be terminated as a company driver.

4.      A rental car will be reserved to bring driver to orientation.

5.      Drivers will go through 3-day orientation and then be dispatched immediately following orientation.

Company also offers Independent Contractors the opportunity to purchase the following benefits.

Medical – Dental – Life – Disability – Vision and Etc.

Commonly Asked Questions

Q.  How many miles can a driver expect to average?

A.  Miles are going to be the same as what they are averaging as a company      

      Driver. The reason for this is: miles usually depend on how hard the driver is willing to run and how much home time he takes, and does he keep his ETA correct… Etc.  

Q.  How many miles are on the trucks you are leasing?

A.   Currently they are about 100,000-150,000 on the 2004 and 200,000 – 250,000 on the 2002.  

Q. After deductions what can I expect my pay to be?

A.  We do not give an average pay. The reason being drivers will have

     Different deductions and their miles will vary from week to week.

Q.  Can I pick out my truck before going into orientation?

A.   No, the drivers will all go out together usually on the 3^rd day of

       Orientation and pick out trucks as a group.