OK Transportation Logo Owner Operator
Section


OWNER OPERATOR AGREEMENT

EFFECTIVE DATE:

I, operating as understand and agree to the following terms and conditions as an Owner Operator subcontracting with OK Transportation Limited and have agreed to operate in fleet. (1-US; 2-Ontario/Quebec;3-Local Cartage)

1. That this agreement pertains to the vehicle(s) described below:

Unit # Year Make Serial #

2. That this agreement is effective as of the date above and is automatically renewed each year or until the termination through written notice.

3. That as an Owner Operator, I am an independent contractor and not an employee.

4. That I have the right to select appropriate equipment in compliance with company standards and maintained in accordance with company standards and the laws of the land.

5. That the equipment described in this agreement is to be contracted out exclusively to OK Transportation Limited during the term of this agreement, any deviation from this makes the contract null and void.

6. That the described equipment will be registered in the name of OK Transportation Limited for licensing purposes only.

7. That the equipment described above will be insured under the coverage of OK Transportation Limited for the term of this agreement. And that the owner operator will be responsible for the premiums (_____% of Gross Revenue) as well as the deductible of $2,500.00 per occurrence. In the event of an accident, your insurance rate will increase by 2% for a twelve month period, then reduces by 1% for the next twelve months and then returns to the current rate.

8. That the Owner Operator will maintain the appearance for the duration of the agreement and agree to identify his vehicle with numbers and decals

9. That the Owner Operator will be responsible for the hiring and firing of all employees (subject to standards set out by the company), as well as decide their remuneration. Should the company request of an Owner Operator that he/she change a driver due to poor performance the Owner Operator will lose the seniority of that vehicle.

10. That the Owner Operator and his employees will be responsible for obeying all applicable laws of the land and for abiding by company policy for the following:

ROAD SPEED
- that all units insured by OK Transportation Limited are required to travel at the legal posted limit

HOURS OF WORK
- that all operators of vehicles are to keep daily logs and that operation should always be within the limits set by law with regards to hours of work. And that these logs are to be submitted to the company on a weekly basis.

RIDERS
- that no riders or animals be permitted in the vehicle unless cleared before hand, in writing to the Vice President of Operations

ACCIDENTS
- that all accidents, no matter how minor, are reported to the dispatch within 4 hours. In the case of a major accident (over $2,500.00 or personal injury) that the dispatch is notified before leaving the scene.

TRAFFIC VIOLATIONS
- that all violations received (while on duty or off duty) be reported within 24 hours of the incident. As well, that a copy of any ticket received be submitted to the company within 7 days.
- cost of all violations as well as applicable service charges caused by either yourself or your employees

11. Listed below are the required duties and expectations for an Owner Operator and/or his/her employees which will be used by the Company to measure the standard of performance. In order for an Owner Operator to be awarded or given the ability to bid on work they must be in complete compliance with all the items listed below for seniority to be taken into account:

- be in compliance at all times with the National Safety Code

- wear full uniform at all times while on duty when applicable

- maintain a neat, clean and professional image for yourself and your vehicle.

- wear company approved safety footwear at all times while on duty

- complete trailer inspections for every trailer pulled

- to complete an accurate timesheet and paperwork for billing purposes and submit to the Operations Department on a timely basis

- maintain a punctuality rating of 100%

12. That as an Owner Operator, you are responsible for the following costs which may be incurred by the company:

LICENSE COST
- full cost of Ontario licensing

FUEL COST
- all fuel purchases for said vehicles

REPAIRS
- all repairs and maintenance for said vehicles

CLAIMS/ACCIDENTS
- full cost of each accident or claim up to the $2,500.00 deductible

WORKERS COMPENSATION
- all individual Owner Operators and their employees will have WCB premiums paid by the Company on their behalf

BANK CHARGES
- the Owner Operator will be responsible for the service charge on direct deposits ($1.25 per statement).

Q.S.T.
- the Owner Operator will be responsible for the QST (Quebec Sales Tax) on fuel tax which is non-refundable and is calculated and charged on a quarterly basis.

C.V.O.R. Infractions (Commercial Vehicle Operating Registration)
- OK Transportation Limited is committed to safety and maintaining a satisfactory safety rating under the C.V.O.R. system
- Any infractions causing points against OK Transportation C.V.O.R. will be charged against the Owner Operator at $500.00 per occurrence for seat belts and own vehicle infractions.

PURCHASE ORDERS
- all purchases through a purchase order made on your own behalf as well as applicable service charges

UNIFORM REIMBURSEMENT
- Should an Owner Operator or one of his/her employees be terminated or resign from the company, the Owner Operator will be required to repay all uniform monies spent on their behalf by the company for the current year.

13. That it is understood that there is a $2,500.00 holdback. This holdback to be built up at $250.00 per statement. The holdback will be in place to cover the Owner Operators' deductible. Interest will be paid twice yearly and the holdback will be released 90 days after the termination of this agreement - unless there is a major accident and/or expense outstanding. If at the time of termination of this agreement there is less than $2,500.00 in the holdback, revenues from the last statement will be used to build the holdback to $2,500.00. Upon termination outstanding license refund will be applied to the holdback and remitted to the Owner Operator when the monies are received from the Ministry.

14. The Owner Operator is responsible for billing the company by means of a time sheet.

15. The parties hereto agree that while and so long as this contract is in effect, that OK Transportation Limited shall collect and remit to the Receiver General of Canada all taxes otherwise payable by this sub-contractor under the Goods and Services Tax. The Owner Operator will be responsible for GST on the insurance premium which will be deducted and remitted by the company.

The terms of this agreement have been received and accepted by:


Owner Operator

Date

Manager Customer Service

Date
Owner Operator
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