Lease-On Agreement

This Lease-On Agreement (“Agreement”) is made and entered into as of April 12, 2026, by and between Twin Mile LLC, with its principal place of business at Houston, TX 77002 (“Carrier”), and [Owner-Operator Name/Company Name], with its principal place of business at [Address] (“Owner-Operator”).

Recitals

WHEREAS, Carrier is a duly authorized motor carrier holding operating authority from the Federal Motor Carrier Safety Administration (“FMCSA”) under MC Number MC1790263; and

WHEREAS, Owner-Operator possesses certain motor vehicles and equipment suitable for the transportation of property in interstate commerce; and

WHEREAS, Carrier desires to lease the Owner-Operator’s vehicle(s) and services for the transportation of goods under Carrier’s operating authority; and

WHEREAS, Owner-Operator desires to lease its vehicle(s) and services to Carrier, subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

1. Purpose of Agreement

1.1. Lease of Services and Equipment:Carrier hereby leases from Owner-Operator, and Owner-Operator hereby leases to Carrier, the exclusive use of the Owner-Operator’s vehicle(s) and services for the transportation of property in interstate commerce, subject to the terms and conditions of this Agreement.

1.2. Operating Authority: The transportation services provided by Owner-Operator under this Agreement shall be conducted under the operating authority of Carrier, as granted by the FMCSA.

2. Term of Agreement

2.1. Commencement and Duration: This Agreement shall commence on the date signed and shall continue, unless earlier terminated as provided herein.

2.2. Renewal: This Agreement may be renewed upon the written agreement of both parties, specifying the terms and duration of the renewal.

2.3. Termination Notice:Either party may terminate this Agreement by providing seven (7) days’ written notice to the other party, subject to the termination provisions herein.

3. Requirements and Compliance

3.1. DOT Compliance: Owner-Operator represents and warrants that it shall:

• Provide and maintain a valid and current DOT Medical Examiner’s Certificate (DOT Physical).
• Provide and maintain proof of an up-to-date annual DOT truck inspection, conducted in accordance with FMCSA regulations.
• Maintain a valid Commercial Driver’s License (CDL) with all necessary endorsements.
• Comply with all applicable DOT and FMCSA regulations, including but not limited to Hours of Service (HOS), vehicle maintenance, and safety requirements.
• Maintain and utilize a functioning Electronic Logging Device (ELD) that complies with FMCSA regulations.
• Provide a current Motor Vehicle Record (MVR) upon request and maintain a driving record that meets Carrier’s safety standards.
• Immediately report any traffic violations, accidents, or other incidents to Carrier.

3.2. Insurance: Owner-Operator shall:

• Maintain valid insurance coverage that meets or exceeds the minimum requirements of the FMCSA, with Twin Mile LLC listed as a certificate holder.
• Provide proof of active insurance coverage to Carrier monthly or upon request.
• Acknowledge and agree that Owner-Operator’s insurance coverage shall be the primary insurance in the event of any accident or claim.

3.3. Vehicle and Equipment: Owner-Operator shall:

• Provide a detailed description of the vehicle(s) being leased, including make, model, year, Vehicle Identification Number (VIN), and any installed equipment.
• Be solely responsible for the maintenance, repair, and upkeep of the vehicle(s) to ensure compliance with all safety and operational standards.
• Ensure that the vehicle(s) and equipment are in good working condition and meet all applicable safety requirements.

4. Financial Terms

4.1. Payment Structure:

• MC Usage Fee:10% of the gross revenue generated from each load transported under Carrier’s MC number.
• Factoring Fee: 3% of the gross revenue for factoring services provided by Carrier.
• Dispatching Fee: 7% of the gross revenue for dispatching services provided by Carrier.
• Sign-On Fee: A total of 20% of the gross revenue, encompassing the aforementioned fees.
• Payment Schedule: Invoices paid by factoring shall be paid out to Owner-Operator by Tuesday of the following week.
• Expedited Payment:Requests for expedited payment may be accommodated, subject to a fee to be determined (TBD) based on the specific circumstances and Carrier’s discretion.

4.2. Penalties and Fines:

• Failed DOT Inspection: A $1,000 fine for any failed DOT inspection, resulting in automatic termination of this Agreement.
• Failure to Report DOT Inspection: A $1,000 fine for failing to report a DOT inspection within 24 hours.
• Unauthorized MC Number Use:A $1,000 fine for any unauthorized use of Carrier’s DOT/MC number, resulting in automatic termination of this Agreement and reporting to FMCSA.
• Driver Change Notification: A $500 fine for any driver change without prior written notification to Carrier, resulting in termination of this Agreement.
• Double Brokering: A $2,000 fine for any instance of double brokering, resulting in termination of this Agreement and reporting to FMCSA.

5. Liability and Insurance

5.1. Accident Liability:

• In the event of an accident, Owner-Operator’s insurance coverage shall be the primary insurance.
• An “at-fault” accident, as determined by law enforcement, insurance investigation, or Carrier’s internal investigation, may result in immediate termination of this Agreement at Carrier’s sole discretion.

5.2. Indemnification:

• Owner-Operator shall indemnify, defend, and hold harmless Carrier from any and all claims, losses, damages, liabilities, and expenses arising from Owner-Operator’s negligence, misconduct, or breach of this Agreement.
• Carrier shall indemnify, defend, and hold harmless Owner-Operator from any and all claims, losses, damages, liabilities, and expenses arising from Carrier’s negligence, misconduct, or breach of this Agreement.

6. Termination Clause

6.1. Material Breach: This Agreement may be terminated by either party upon written notice of a material breach of this Agreement by the other party, which remains uncured for seven (7) days after such notice.

6.2. Automatic Termination: This Agreement shall automatically terminate upon the occurrence of any of the violations specified in Section 4.2.

6.3. Discretionary Termination: Carrier may terminate this Agreement at its sole discretion in the event of an at-fault accident by the Owner-Operator.

6.4. Notice Termination:Either party may terminate this Agreement by providing seven (7) days’ written notice to the other party.

7. Dispute Resolution

Any dispute, controversy, or claim arising out of or relating to this Agreement shall be resolved through Harris County in accordance with the laws of the State of Texas.

8. Miscellaneous Provisions

8.1. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Texas.

8.2. Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral.

8.3. Amendment: This Agreement may not be amended except in writing signed by both parties.

8.4. Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

8.5. Notices: All notices required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, or sent by reputable overnight courier to the addresses set forth herein.

The Parties agree to the terms and conditions set forth above as demonstrated by their signatures as follows: