Terms & Agreement
This AGREEMENT (“Agreement”) made effective as of the 19th day of November , 2024 (“Effective Date”) between Stream Logistics, LLC, a Delaware Corporation, MC # 788116 (hereinafter "Broker") and , a(n) , with offices located at , operating under authority DOT Number , issued by the Federal Motor Carrier Safety Administration (hereinafter "Carrier").
WHEREAS, Stream Logistics desires to engage the services of Carrier for the transportation of Stream Logistics’ customers’ commodities within the scope of Carrier’s operating authority.
WHEREAS, Carrier desires to perform transportation services for freight brokerage company Stream Logistics and is qualified to operate as a motor contract carrier to perform such services pursuant to operating authority issued by the Federal Motor Carrier Safety Administration, as evidenced by license number:
NOW, THEREFORE, in consideration of the mutual agreements contained herein, Stream Logistics and Carrier agree as follows:
1. Application of Agreement: This Agreement shall apply to the transportation of commodities within the scope of Carrier’ operating authority to, from and between the facilities of Stream Logistics’ customers and their designated consignees.
2. Effective Date and Term: This Agreement shall become effective on the date set forth above and shall continue thereafter until terminated by either party, with or without cause, upon ten days written notice to the other party. If such written notice is given, this Agreement shall remain in effect until the 10th day after such notice is given or until any later date set forth in such notice. Furthermore, either party shall have the right to terminate this Agreement forthwith upon written notice to the other party if (a) either Stream Logistics or Carrier is required to cease or desist from the utilization or performance of the transportation services provided hereunder by reason of any provision of law, order of any court, commission or other public authority; or (b) voluntary or involuntary bankruptcy proceedings are initiated with respect to either party, or if either party becomes aware of evidence indicating the insolvency of the other. All rights of termination provided for herein shall be in addition to Stream Logistics’ and/or Carrier’s other legal rights and recourse whether or not set forth in this Agreement.
3. Back-Solicitation and Co-Brokering: During this Agreement’s term and for a period of twelve (12) months following its termination for any reason, Carrier will not “back-solicit” traffic from any shipper, consignor, consignee, or customer of Stream Logistics where (1) the availability of such traffic first becomes known to Carrier as a result of Stream Logistics’ efforts and/or (2) the traffic was first tendered to Carrier by Stream Logistics. Carrier shall pay Stream Logistics, during this Agreement’s term and for the first (12) twelve months following the termination of this agreement, 20% of the gross amount invoiced by Carrier for its services concerning each that which breaches the forgoing covenant to not “back-solicit” as liquidated damages, and Carrier shall be liable for all costs incurred by Stream Logistics in enforcing this provision, including, but not limited to reasonable attorney’s fees. Carrier also agrees that it will be the sole Carrier for the entire shipment and there will be no brokering of said load to another Carrier. “Co-Brokering” will result in a non-payment of load.
4. Safety Standards: Carrier shall notify Stream Logistics immediately if its federal Operation Authority is revoked, suspended or rendered inactive for any reason; and/or if sold, of if there is a change in control of ownership, and/or any insurance required hereunder is threatened to be or is terminated, cancelled, suspended, or revoked for any reason. Carrier agrees that at no time during the term of this Agreement, shall it have an “Unsatisfactory” or “Unfit” safety rating as determined by the Federal Motor Carrier Safety Administration (FMCSA). Additionally, under no circumstance is the carrier allowed to provide services if their rating falls to “unsatisfactory".
5. Rates and Terms: As full and complete compensation for the services to be provided hereunder, Stream Logistics will pay Carrier according to the rates, charges and terms of service set forth in each individual Rate Confirmation.
6. Payment: Stream Logistics agrees that it will compensate Carrier for transportation services to be performed under this Agreement in accordance with the effective schedule of rates, charges and terms of service within 30 days of receipt by Stream Logistics of Carrier’s invoice covering such transportation services.
7. Indemnity: Carrier will indemnify, defend it and hold harmless broker, it's affiliates and its customers (as intended third party beneficiaries) from any and against all losses (as defined below) arising out of or in connection with the transportation services provided under this contract, including the loading, unloading, handling, transportation, possession, custody, use or maintenance of cargo or equipment or performance of this contract (including breach hear of) by carrier or any carrier representative. Carriers obligation to indemnify and defend shall not be affected by alleged negligence or willful misconduct out of broker, it's affiliates or customers. “Losses” mean any and all losses, liabilities, obligations, personal injury, bodily injury, property damage, loss or theft of property, damages, penalties, actions, causes of action, claims, suits, demands, costs and expenses of any nature whatsoever, including reasonable attorneys’ and paralegals’ fees and other costs of defense, investigation and settlement, costs of containment, cleanup and remediation of spills, releases or other environmental contamination and costs of enforcement of indemnity obligations.
8. Insurance: Carrier agrees to provide any insurance coverages required by any government body for the types of transportation and related services specified in load confirmation communications received from Broker. All insurance required by this Agreement must be written by an insurance company having a Best’s rating of “B+” VII or better and must be authorized to do business under the laws of the state(s) or province(s) in which Carrier provides the transportation and related services as specified in load confirmation communications received from Broker. Carrier’s insurance shall be primary and required to respond and pay prior to any other available coverage. Carrier represents and warrants that it will continuously fulfill the requirements of this Section throughout the duration of this Agreement. Broker shall be notified in writing by Carrier’s insurance company at least thirty (30) days prior to the cancellation, change or non-renewal of the submitted insurance policies. Carrier shall at all times during the term of this agreement have and maintain in full force and effect, at its expense the following: Motor Truck Cargo insurance or a superior equivalent, with limits for the full value of the cargo under carriage subject to a minimum limit never less than $100,000 per shipment, Commercial Automobile Liability/Public Liability insurance with a combined single limit of not less than $1,000,000 per occurrence and without aggregate limits, Commercial General Liability insurance, in a limit of not less than $1,000,000 per occurrence, and Worker’s Compensation insurance where applicable per state requirements. All premiums upon the insurance described herein shall be paid by Carrier at its own expense. Upon request from Stream Logistics, Carrier shall furnish Stream Logistics proof of such insurance in the form of current Certificates of Insurance and/or other forms prescribed by applicable state or federal regulations.
9. Carrier Moving Perishables: Carrier warrants that the carrier will inspect or hire a service representative to inspect a vehicle’s refrigeration or heating unit at least once each month. Carrier warrants that they shall maintain a record of each inspection of refrigeration or heating unit and retain the records of the inspection for a least one year. Copies of these records must be provided upon request to the carrier’s insurance company and Broker. Carrier warrants that they will maintain adequate fuel levels for the refrigeration or heating unit and assume full liability for claims and expenses incurred by the Broker or the shipper for failure to do so. The carrier must provide their cargo insurance carrier with all records that relate to a loss and permit copies and abstracts to be made from them upon request. The following rules shall apply: (a) Destination market value for lost or damaged cargo, no special or consequential damages unless by special agreement; (b) Claims will be filed with Carrier by Shipper; (c) claims notification procedures will be followed in accordance with procedure described in 49 C.F.R. 370.1-11.
10. Liability for Freight Loss or Damage: Carrier assumes full liability for the greater of replacement cost, Shipper’s/ Consignor’s commercial invoice or market value for loss, damage or destruction of any and all goods or property tendered to Carrier by Broker, and for the full course of carriage. Carrier shall inspect each load at the time it is tendered to Carrier to assure its condition. If Carrier is tendered a load which is not in suitable condition, it shall notify Broker, immediately. Cargo which has been tendered to Carrier intact and released by Carrier in a damaged condition, or lost or destroyed subsequent to such tender to Carrier, shall be conclusively presumed to have been lost, damaged or destroyed by Carrier unless Carrier can establish otherwise by clear and convincing evidence. Deliveries with broker seals shall be rejected and declared a total loss for which the Carrier is held responsible. Carrier shall either pay Broker directly or allow Broker to deduct from the amount Broker owes Carrier, the amount of Customer’s full actual loss. Carrier agrees that it will assert no lien against cargo transported hereunder. Broker, shall deduct from the amount Broker otherwise owes Carrier, the Customer’s full actual loss of all claims that are not resolved within ninety (90) days of the date of the claim. Carrier agrees to indemnify Broker, for any payments relating to such loss or damage incurred hereunder. In the event of an accident, Carrier shall notify Broker immediately for further instructions. Carrier shall return all damaged shipments at its expense to the point of origin or to other points as instructed by Broker. Claims notification & salvage procedures will be followed in accordance with the procedure described in 49 C.F.R. §370.1-11. Carrier will make all payments pursuant to the provisions of this Section within thirty (30) days following receipt by Carrier of Customer’s invoice or demand and supporting documentation for the claim.
11. Independent Contractor: In the performance of the transportation services provided hereunder, Carrier shall at all times be an independent contractor and not an agent or employee of Stream Logistics.
12. Licenses, Maintenance, Rules and Regulations: Carrier shall, when serving as a carrier with respect to Stream Logistics' customers’ freight, at its own expense, furnish suitable trucks, trailers, and tractors to transport the commodities tendered hereunder; employ in the operation of such vehicles and equipment fully qualified personnel; furnish all fuel, oil, tires and other parts, supplies and equipment necessary or required for the safe and efficient operation and maintenance of such vehicles and equipment; provide all permits, certificates, licenses, tolls and other expenses required by local, state or federal authorities with respect to the transportation of such commodities; and comply with all laws and regulations applicable thereto.
13. Agreement Non-Exclusive: It is understood and agreed between the parties hereto that this is a non- exclusive agreement and that Carrier shall be free to accept freight for transportation from companies other than Stream Logistics herein and that Stream Logistics shall be free to tender freight for transportation to carrier, brokers or freight forwarders other than Carrier.
14. Assignments: Neither Stream Logistics nor Carrier may assign its rights under this Agreement without the non-assigning party’s written approval. Nothing in this paragraph shall be construed to prevent Carrier from brokering or interlining freight with other carriers serving points not served by Carrier.
15. Dispute Resolution: The parties agree that this Agreement is being entered into in good faith and that, if a dispute arises in its application or interpretation, the parties shall attempt to resolve the dispute between themselves or, upon mutual agreement, by the intervention of an experienced private mediator or arbitrator upon the terms and cost allocation agreed upon by and between the parties. The parties agree that the award of a private arbitrator may be enforced in any court of competent jurisdiction.
16. Applicable Law and Venue: This Agreement shall be governed by and construed in accordance with the laws of the United States or the laws of the State of Arizona, whichever are applicable. Any court action or arbitration to interpret or enforce the terms of this Agreement or to resolve any claims or disputes arising hereunder shall be brought in the state of Arizona.
17. Confidentiality: The parties agree to keep confidential any information provided to it by the other party relating to that party’s operations or business activities, including, but not limited to, the names of suppliers, carriers, vendors and customers. Each party agrees to hold all such information in confidence and shall not use any such information other than for the benefit of the other party or in performance of its obligations under this Agreement.
18. Attorneys' Fees and Costs: If either party initiates a court action against the other party to interpret or enforce the terms of this Agreement, to resolve any claims or disputes arising hereunder or to enforce an arbitration award, the party prevailing in such action shall be entitled to recovery from the non-prevailing party of such sum as the court determines to be reasonable attorneys’ fees and costs, in addition to any other relief to which such party may be entitled.