Broker Shipper Agreement

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BROKER SHIPPER AGREEMENT

AGREEMENT: made this _____ day of __________, __________, shall govern the services
provided by ____________________, hereinafter referred to as BROKER,and
____________________, hereinafter referred to as SHIPPER, located at
____________________.

WITNESSETH:
1. BROKER is a licensed broker of property authorized by the Federal Highway
Administration, license persuant to Docket MC#_______________ (a copy of license and
surety bond is attached hereto and made part thereof) to arrange transportation of property
for commercial shippers and receivers of property between all points in the United States,
and

2. SHIPPER, desiring to enter into a contract relationship with BROKER.

NOW THEREFORE,
3. SHIPPER agrees to offer for shipment and BROKER agrees to arrange for transportation
by motor vehicle from and to points which service may be required and such quantities of
authorized commodities as the SHIPPER may require.

4. SHIPPER agrees to offer to BROKER for shipment, a minimum of {Loads} loads per year
for each year this Agreement remains in effect.

5. SHIPPER agrees to pay BROKER for the transportation of authorized commodities under
this agreement in accordance with effective schedules within fifteen (15) days of the receipts
by SHIPPER of the BROKER’S invoice covering such transportation and proof of delivery
documents, or in the time period agreed upon, in writing, between SHIPPER and BROKER
as an addendum to this AGREEMENT.

6. Discounts of freight invoice charges will not be permitted. The BROKER reserves the
right assess a service charge of 3% for each invoice for each fifteen (15) day period (or 36%
annually) of freight invoice if not paid within the above schedule.

7. The basic transportation rate negotiated between the parties is: Freight, all kinds; all
shipments: Rates to be determined; placed in writing, and agreed to by both parties by
signature on BROKER’S load rate confirmation document and renegotiated for each load
tendered.

8. Additional rates or modifications of the above rate may be established or ammended

verbally in order to meet specific shipping schedules, as mutually agreed, but such changes
shall be sent by the party initiating the change, by facsimile machine (fax) or email, to the
other party, and the approval of the change shall be acknowledged by the second party by,
initialing the change, and returning, by facsimile machine or email confirmation of the
proposed change. These changes shall be seperately numbered as Appendix A, Addendum
1, etc.

9. Allthough not required by the Federal Highway Administration, BROKER agrees to

maintain cargo insurance in the ammount of $100,000 as a supplemental contingency
insurance to compensate SHIPPER for loss or dammage to shipments tendered to
BROKER’S transportation services. SHIPPER agrees that the primary insurance coverage
and responsibility for loss or damage is that of the licensed motor carrier transporting

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transporting shipments, as required by the Federal Highway Administration, and that
BROKER’S cargo insurance will be utilized only in the case of failure of carrier’s insurance;
in any case, BROKER’S liability shall be limited to the coverage afforded by BROKER’S
contingent cargo policy.

10. All of the rules promogulated by the Federal Highway Administration as to filing of claims
and settling of claims, and all the requirements to as to public liability and property damage
and cargo insurance that pertain to a common carrier or contract carrier should be equally
applicable to the carrier on shipments moving under this agreement.

11. The parties agree that in the event the SHIPPER determines it has a claim for loss of
cargo or damage against the carrier, that all claims are filed and processed in accordance
with (49 C.F.R. 1005). BROKER may, as a matter of courtesy and convenience and on
behalf of the SHIPPER, handle claims or assist in the handling of claim for loss or dammage
against the carrier.

12. Rates and charges for traffic moved under this AGREEMENT shall be as agreed to
between the parties hereto in writing and are to be contained in a rate schedule or
memorandum of rates and charges prepared and issued by BROKER and acknowledged by
SHIPPER. Changes to its schedule or memorandum shall also be made in writing within a
mutually agreed period of time, and similarly acknowledged.

13. The carrier shall, on each movement, issue a standard Bill of Lading, and the traffic shall
be delivered under the terms and conditions of the said Bill of Lading, which shal contain the
standard process as to the filing and settling of claims.

14. Neither party hereto will be liable for the failure to tender or timely transport freight under
the AGREEMENT if such failure, delay or other omission is caused by strikes of war, acts of
God, accidents, civil disorder, through compliance with legally constituted order of civil or
military authoritiy.

15. Carrier shalle be liable to the SHIPPER for loss or damage to any property transported
uhnder thsi AGREEMENT. Such liability shall begin at the time cargo is loaded carrier’s
equipment at the point of origin, and continue until said cargo is delivered to the designated
consignee at the ultimate destination or to any intermediate pick-up and stop-off points
between the point of origin and the final destination. The liability shall be for the full value of
the item, which shall be understood to mean the replacement cost of the lost or damaged
item(s).

16. All claims for loss and damage, and any salvage arising there from shall be handled and
processed in accordance with the effective schedules within thirty (30) days of the receipt by
SHIPPER of BROKER’S invoice covering such transportation.

17. If any dispute arises about any matter covered by the terms of this AGREEMENT, the
parties’ recourse shall be to the judicial system, either state or federal.

18. The relationship of BROKER to the SHIPPER shall at all times, be that of an
independent contractor.

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19. This AGREEMENT shall remain in effect for a period of one (1) year, and from year to
year thereafter, subject to the right of either party herein to terminate the AGREEMENT at
any time upon not less than thirty (30) days written notice of one party or the other.

IN WHITNESS WHEREOF, the parties solidify this AGREEMENT made this _____ day of
__________, __________.

____________________

By:_________________________

Title:______________________

____________________

By:_________________________

Title:______________________

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