1.1 Lease and Term. VSL leases to Carrier the Trailer for six (6) or (12) months, 6 months for out-of-state carriers, and 12 months for within the state of Texas starting and ending on the dates set. This Lease will terminate upon the expiration of this term unless VSL and Carrier reevaluate to extend the terms of this agreement.

This Lease is not subject to renewal. Continued use of the Trailer by Carrier is subject too

negotiation and entry into a new lease agreement. Neither VSL nor Carrier will be obligated to negotiate or enter into such a new agreement.

1.2 Rent and Other Amounts. Carrier will pay VSL payment for the Trailer, in the 

The amount specified, on or before the first day of each month. 

1.3 Payment. Carrier will make payments in cash, by credit card, zell, or by cashier check delivered to Client at the address provided. If the carrier does not provide payment or other amounts within three (3) days after the payment is the due, the carrier will pay an additional sum equal to five percent (5%) of the amount per day overdue as a late charge to compensate Client for costs associated with the late payment. Example $400 wk payment will be $20 a day starting the 4th delinquent day. The carrier will pay $350 a week if VSL’s owner is dispatching the trailer or $600 a week if the carrier is using a different dispatcher during the remainder of the contract.

This agreement is effective upon the date signed and submitted to (“VEASEY STRONG LOGISTICS”),located at 2614 Montgomery Rd, Huntsville Tx, 77340 and(“CARRIER”), the carrier signing the contract to transport VSL’s or VSL customer trailers, loaded or empty, for the purpose of transportation and loading or unloading such trailers. During such times as VSL’s or VEASEY STRONG LOGISTICS’s customers trailers (the “Trailers”) are being transported by CARRIER tractors or any other tractors acting under its direction, CARRIER agrees to the following terms of indemnification: (a) CARRIER shall release and hold harmless VSL, VSL’s customers, employees, officers, directors, and agents (the “Indemnitees”) from and against all loss, damage, liability, claims, cost, or expenses incurred by the Indemnitees arising out of or connected with injuries to or death of person or loss or damage to property of others as a result of CARRIER’s, its employees, affiliates, customers, agents, subcontractors or any other third party affiliated with CARRIER’s use, operation, maintenance, acts, missions or possession of trailers, or cargo being transported therein, or cargo being loaded or unloaded unless such loss, damage or injury is caused solely by the negligence of VSL.

(b) At its expense, CARRIER shall prepare inspection reports noting all damage, absence of damage, and The condition of safety-related items includes, but is not limited to, tires, brakes, air system, and sliding tandem hook pins. Such report is to be prepared when accepting the Trailer for transport, each day it Is used and again when the Trailer is returned to VSL, and a copy is provided to VSL. Should the inspection reveal safety-related defects as determined by applicable law and industry-standard rules and regulations, CARRIER will notify VSL before transporting the Trailer of the premises. CARRIER shall be solely responsible for ensuring that the Trailer is in compliance with all required safety regulations. 

CARRIER shall perform and pay for all required safety inspections and shall maintain proper 

documentation evidencing such inspections. Carrier will provide a video inspection and complete a written inspection log prior to leaving the lot.

(c) CARRIER shall be responsible for all loss and damage, no matter how caused to or destroyed of the lading being transported and destruction of any Trailers while such is in its employees, affiliates, customers, agents, subcontractors, or any other third party affiliated with CARRIER’s possession except if caused by acts or omissions of VSL.

(d) CARRIER Insurance while transporting any trailer for VSL Transportation and their customers, will maintain the following insurance coverages:

1. General liability/product liability with policy limits of not less than $1,000,000.00 per occurrence; and

2. Automobile liability with policy limits of not less than $1,000,000.00 for each accident.

3. Motor truck cargo with policy limits of not less than $40,000.00 per occurrence.

4. Trailer interchange coverage with policy limits of not less than $40,000.00 per occurrence; and/or

5. Non-owned trailer physical damage with policy limits of not less than $40,000.00 per occurrence.

6. Add VEASEY STRONG LOGISTICS INC as a Certificate holder of the Insurance and as an Additional Insured on the policy so that VSL can be notified about any insurance concerns. 

(e) CARRIER is not to perform any maintenance on any Trailer without first informing VSL. At its expense,

CARRIER shall: (i) maintain proper axle lubricant levels, tire inflation, rotation and repairs, brake operation and lighting, including bulbs and lens replacement; (ii) maintain the Trailer in the same condition as when delivered, excepting normal wear and tear, making all necessary repairs and replacements in compliance with all manufacturers and current industry standards relating thereto, using only new parts; (iii) reimburse VSL for tires damaged by improper inflation, impact breaks, or running flat; and (iv) pay VSL the fair market value as of the Date In of tires supplied or paid for by VSL or VSL’s customer that is not returned with the Trailer. CARRIER shall not purchase replacement tires for 

VSL’s account or charge VSL for any expense absent VSL ’s written consent. NO Recap tires are allowed on the trailer. Carrier is responsible for all maintenance of the trailer being leased.

(f) This Agreement does not alter or amend any contract of haul between the parties.

(g) This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings of the parties with respect to the subject matter hereof, but without prejudice to VSLs rights with respect to any breach or default by CARRIER under any such prior agreements, and shall be binding upon each party and their respective representatives, successors, and assigns. This Agreement may not be amended or altered in any manner except by a writing signed CARRIER and VEASEY STRONG LOGISTICS.

(h) This agreement may be canceled by either party at any time upon at least thirty (30) days prior written notice to the other party. VSL can terminate this contract or repossess the trailer at any time due to a breach of contract, such as excessive damage, nonpayment, missing video inspections, etc. 

Video inspections are every 2 months.

(i) CARRIER warrants that:

(a) the Trailer shall not be operated by any person other than agents, employees or subcontractors of CARRIER, each warranted to be a careful, dependable operator not operating under the influence of alcohol or drugs, with a valid license to operate such Trailer;

(b) CARRIER shall comply with all current and future statutes, regulations, rules, ordinances, and orders, affecting the use, operation or maintenance of the Trailer (collectively ‘Applicable Laws”); and

(c) CARRIER shall comply with the Trailer manufacturer’s loading limitations and avoid abusive handling and concentrated or excessive loads.

(j) CARRIER shall not transport, load, or store in or on the Trailer any ultrahazardous materials, medical wastes, hazardous wastes, infectious materials, poison gases, radioactive materials, or explosives (collectively “Ultrahazardous Materials”). If VSL determines that CARRIER has used the Trailer for such purposes, VSL, in its sole discretion, may require CARRIER to purchase the Trailer at 115% of the Trailer’s fair market value on the Date Out, as determined by VEASEY STRONG LOGISTICS INC and the Fair Market Value (“FMV”).

(k) CARRIER shall pay all invoices within 3 days of the invoice date without set-off or deduction. Example 

$400 per wk payment will be $20 a day starting the 4th delinquent day. A late charge of 5% per month or the maximum legal rate shall be assessed on past due amounts. In addition to Rent as mutually agreed to by the parties, CARRIER shall pay, or reimburse VSL for payment of, any and all fees, fines, penalties, and sales and use taxes levied against or based upon CARRIER’s use of the Trailer. (i) The occurrence of any of the following shall constitute an Event of Default: (a) CARRIER fails to pay when due any payment; (b) CARRIER fails to perform any term or condition of this Agreement and such failure remains unremedied for more than 10 days after VSL has requested CARRIER to perform, except that noncompliance with Section (d) shall be an immediate default;

(c) CARRIER or any guarantor becomes insolvent, (ii) becomes subject to any voluntary or involuntary bankruptcy proceedings, (iii) makes an assignment for the benefit of creditors, (iv) appoints or submits to the appointment of a receiver for any of its assets, (v) admits in writing its inability to pay its debts as they become due, or (vi) enters into any type of liquidation; (d) CARRIER defaults under any other agreement with VSL or any affiliate; or (e) any letter of credit, guaranty or other security is given to secure CARRIER’s performance shall expire or become worthless in VSL’s opinion.

(l) Upon any Event of Default, VSL may, at its option and without demand or notice, do any of the following: (a) pay all amounts required to be paid or perform or cause to be performed all obligations required to be performed by CARRIER and charge CARRIER as additional Rent the amount paid or  the reasonable value of services performed, or (b) terminate this Agreement and CARRIER’s rights hereunder and require CARRIER at its sole cost to promptly return the Trailers to VSL at such location as VSL may designate. No termination, repossession, or other act by VSL after default by CARRIER shall relieve CARRIER from any of its obligations hereunder. The remedies provided herein shall be cumulative and in addition to all other remedies existing at law or in equity.

(m) If CARRIER fails or refuses to promptly return the Trailers to VSL after demand, therefore, or if an Event of Default has occurred and is continuing, VSL shall have the right to enter upon any premises where the trailer(s) is located and take immediate possession of and remove the Trailer(s) and hold it in  VSL’s possession or in public storage at the expense of CARRIER or dispose of such property with no further liability.

(n) WARRANTY DISCLAIMER. VEASEY STRONG LOGISTICS INC HAS MADE NO REPRESENTATIONS OR WARRANTIES AS TO ANY MATTER WHATSOEVER, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR PURPOSE WITH RESPECT TO THE TRAILERS.

(o) VSL shall not be liable to CARRIER in connection with this Agreement for incidental, special, indirect, consequential, or exemplary damages of any kind, including without limitation, lost profits and business interruption damages, suffered by CARRIER or any other party.

(p) CARRIER shall not assign this Agreement without VSL’s prior written permission.

(q) CARRIER shall keep the Trailers free from any liens, claims, or encumbrances.

(r) Any notice or demand given under this Agreement shall be valid only if in writing and shall be Deemed effective 3 days following deposit in a United States Post Office if mailed by certified mail, return receipt requested, postage prepaid, or upon receipt if given in any other manner, addressed to VSL and CARRIER at the addresses set forth herein.

(s) The failure of VSL to insist upon the strict performance of any terms, covenants, or conditions of this Agreement or to exercise any right or remedy herein or the waiver by VSL of any breach of any terms, covenants or conditions of this Agreement shall not be construed as thereafter waiving any such terms, covenants, conditions, rights, or remedies.

(t) In the event that any of the terms and provisions hereof are in violation of or prohibited by any law, regulation, rule, order, or ordinance, such terms and provisions shall be deemed amended to conform thereto without invalidating any other terms or provisions of this Agreement. CARRIER’s indemnification obligations under this Agreement include attorneys’ fees and costs and shall survive the termination of this Agreement. This Agreement and the parties’’ rights and obligations hereunder shall be governed by the laws of Texas.