Lease Purchase Program

for 4-AXLE TRACTOR

Note: Prospective Lease Purchase operator must reside in either Washington or Oregon.

 

· FLATBED FLEET

       Run 5 Western States: Washington, Oregon, Idaho, Utah, Montana.   Note: This fleet may include some British Columbia (Canada).

    OR        

   · CONTAINER FLEET

        Run 3 Western States:  Washington, Oregon, and Idaho.

  TRACTOR INFORMATION

· 1996 Freightliner CONVENTIONAL 4-axle Tractor(s)

          48” FLD Sleeper Cab

· 3406e Model Caterpillar Engines

       435 Horse Power

· Cab Guard is included

· Tarps & Tie-Down Available for Flatbed Operation

     Lease Purchase Operator is expected to be equipped with all necessary tarps and tie down gear.  Mitchell Bros. can sell you “new” or, if available, “used” gear.  Any gear purchased from Mitchell Bros. can either be paid in cash or you can purchase the gear through settlement deductions on a rent to own basis.   Approximate cost for a complete set of “used” gear is $200.00 per month for 12 months.

· Qualcomm Satellite

   Free installation and use of “state of the art” communication technology to help enhance productivity.

  PAYMENT TERMS

·  $0.00 Down Payment Required

·  Tax advantages passed on to Lease Purchase Operator

Year & Model	Purchase Price	Term	Monthly Payments	Residual	No Warranty
1996 Freightliner 4-axle Conventional tractor 48 Inch FLD Sleeper 10 speed 244 inch wheel base Light weight: 21,060 lb.	Check with Company Representative for current prices	24 months	Check with Company Representative for payment amounts Note: (includes 10% finance fee)	None	Sold “as is.”

To view available tractor(s), please check with company representative.

The following terms apply:

            • Operator must enter into our Contractor Lease and Operating Agreement for the duration of the purchase

             contract.

            • No early payout – operator must complete 24 month contract or our maximum length contract of 30 months.

            • If engine requires a major rebuilt while under contract with Mitchell Bros., Mitchell Bros. will make financing available.

            • Our lease purchase program is not available for fleet owners.  Person who enters into Purchase

             Contract/Equipment Lease must be driver. 

• Once the tractor is paid for and the title is transferred then the Mitchell Bros.’ decal stripes on the tractor must be removed.

For complete terms, see Mitchell Bros. Purchase Contract/Equipment Lease.

  MITCHELL BROS. PAYS THE FOLLOWING:

  75% of Gross Revenue Pulling OUR trailer/chassis

  Note:  Lease  Purchase operators are to pull company (or shipping line) provided trailer/chassis.

                          Ask company representative for estimate of earnings.

Note:  Please be advised that all rates quoted by Mitchell Bros. personnel to contractors at the time of dispatch is often a preliminary/estimated quote of anticipated revenue.  despite our best attempts to relay accurate rate information at the time of dispatch, it is sometime difficult to factor in all the variables that can affect or change a rate.  Such variables include:  different customers, equipment, traffic lanes, prior movement of the cargo by other equipment, etc.  Settlement pay is issued based on your contractual percentage rate and the amount of charges eventually agreed to between Mitchell Bros. and our customer.

Note:  Lease Purchase operators get 100% of what we collect for fuel surcharges.  Historically, Mitchell Bros. successfully receives 98% of fuel surcharges that we bill our customers.

  YOU PAY THE FOLLOWING EXPENSES:

· Fuel purchase program. You can purchase fuel using the Mitchell Bros.’ fuel card.  There is no added charge to use the fuel card except the standard transaction fee of $0.00 to $.50 per transaction depending on the fuel location.

Note: You can also benefit by purchasing fuel from our tanker  when in Vancouver, WA.  There will be a $.05 per gallon mark up from our bulk fuel price, which will still allow you a considerable savings from normal truck stop prices.

· Mitchell Bros. shop will provide your tractor with all routine service.  Our customary shop rate is $65.00 hour.

· Licensing:  Obtain your apportioned license plates and other operating credentials.  $250.00 per settlement is deducted from licensing until paid in full. Then, starting in the month of August of each year, $200.00 per settlement is deducted in pre-payment for the following year of licensing.

· State Fuel & Road Taxes:  Mitchell Bros. sets up $.03 per mile for fuel and road (mileage) taxes.  A statement of the total amount due and total amount deducted will be issued one month after the calendar quarter ends.

· Heavy Vehicle Use Tax:  You are responsible for paying the Federal Heavy Vehicle Use Tax (Form 2290): $550.00/year.   Mitchell Bros. will report and initially pay this fee, however, the cost will be deducted from your settlement check(s).

· Federal Annual D.O.T. Vehicle Inspection:  No charge for first inspection.  Subsequent years shall be charged $65 fee for tractor, $32.50 fee for trailer/chassis.

· Direct Deposit available for settlement checks The fee is currently $1.25 per settlement period.

· Administrative Fee: $100 per month for cost associated with administrative procedures.

· After Hour Service to respond to Tire or Road Service:  $44 fee for provider to respond.

· Insurance

TYPE OF INSURANCE COVERAGE	DEDUCTIBLE AMOUNTS		MONTHLY PREMIUM
Liability Insurance   (Property Damage & Bodily Injury)	$1000		$440.00
Bob-Tail, Non-Trucking Liability	$1000		$45
Tractor Physical Damage (Collision)	$1000		Approximately 4.2% of value is annual premium.
Trailer/Chassis Physical Damage (Collision)	$1000		Approximately 4.2% of value is annual premium. No premium if pulling a company trailer.
Cargo Insurance	$1000		$0.00 for operators assigned to our container fleet. $50.00 for operators assigned to our flatbed fleet.
Load Securement Gear	$1000		$0
Qualcom Satellite	$1000		$0
Occupational Accident Coverage This policy covers you if you are hurt as a result of an accident.  This is not considered a health care policy nor is this policy considered State Workers’ Compensation coverage.			$148

  MITCHELL BROS. PROVIDES THE FOLLOWING SERVICES:

· Investigates and processes all accident and freight claims.

· Conducts marketing efforts and assumes all responsibility for billing and collections.

· Provides the necessary operating authority. (Mitchell Bros. has 48 State & Canada authority).

· Provides a passenger “rider” waiver policy.    Passengers must be 18 years of age or older.

· Provides fully maintained, licensed, and insured trailers  for those that elect to pull a company trailer. 

· $10 per week phone card to call customers.  Any balance left over can be used for personal use.

  MISCELLANEOUS INFORMATION:

Escrow Fund

An escrow/performance fund of $2500 is required with Mitchell Bros.  This fund shall be established by deducting $200 per settlement until the fund is established in full.  The primary purpose of this fund is to ensure the lease purchase operator can satisfy any insurance deductibles if involved in an accident or cargo claim.  Funds in this account shall earn interest which is paid out quarterly.

Maintenance Fund

A minimum of 5% of gross revenue shall be deducted from Lease Purchase Operator’s settlement check(s) to be applied to a maintenance fund.  Funds from the maintenance fund shall be used for tractor maintenance and repairs only and must be supported by a authentic receipt.

Cash Advances

A $200 weekly advance is available automatically off EFS card.  Any additional cash advances must be approved by an authorized representative of Mitchell Bros.  All advances are subject to a 5% fee charged by Mitchell Bros.  In addition, an EFS nominal transaction fees (approximately $1.25) shall be charged back to the owner-operator.       Note: Personal advances are not to be confused with a pre-established “Maintenance Fund.”  There shall be no 5% charge if an owner-operator is withdrawing funds from his maintenance fund.  However, if funds in maintenance fund are insufficient, then the difference shall be considered a personal advance and will be subject to 5% fee charged by Mitchell Bros

Pay Days

Mitchell Bros. issues settlement checks on the 15th and the last day of the month.  Loads hauled between the 1st and the 15th are paid on the last day of the month.  Loads hauled between the 16th and the last day of the month are paid on the 15th of the following month.  Ask company representative for a “settlement calendar” that shows deadline dates for paperwork to be turned in to be processed for payment.  If your paperwork is not in the office by the “deadline date”  you will not be paid for it until the following settlement date.

Health Care Coverage is Available

Ask company representative for information packet for your area.

Orientation

All Lease Purchase operators will undergo a 2-3 day orientation period.  Our orientation is designed to answer most of your questions as we introduce you to Mitchell Bros. Truck Line.  Items discussed will include:  1) how to prepare paperwork, 2) what to do in the event of an accident, 3) how to use the Qualcom satellite, and 4) much, much more.

Referral Bonus Pay

You can earn extra money if you refer a company driver or owner-operator (excluding lease purchase operator) that we sign on.  For complete details, ask company representative.

We will provide the experience and support for you to become a successful LEASE PURCHASE operator.

For more information please call our Recruiting Department at 1-800-883-4557  (8am-5pm Mon-Fri).

  The information, policies, and benefits described in this “informational sheet” are deemed to be reliable, however the

  information is subject to change from time to time.

Specializing in Service since 1937!