1901 Floyd Bradford Rd. Trussville, AL 35173 LEASE PURCHASE PROGRAM INFORMATION MAKE THIS YOUR BEST AND MOST SUCCESSFUL YEAR YET BY STARTING YOUR OWN BUSINESS WITH CRST’S LEASE PURCHASE PROGRAM! CRST Malone’s Lease Purchase Program is among the best in the country. CRST Malone offers the opportunity and freight that Owner Operators are looking for, all of which is backed by the support, knowledge, and dedication of a team that has helped put numerous drivers into their own trucks over the years. CRST Malone’s Lease Purchase Program offers: $0 down. Guaranteed bumper-to-bumper maintenance (some restrictions may apply) 2008 and 2009 model trucks Flatbed trailers available No Credit Check $1.94 per Mile Average Gross Line Haul Rate 100% Fuel Surcharge (average $0.58 cents per mile) CRST Malone has 78 years of experience turning great drivers into successful Owner Operators. Why not let us do the same for you? CRST Malone is a fast-growing, people-oriented trucking company that is committed to excellence. In order to meet this commitment, we have a clear understanding that developing partnerships with top-quality Owner Operators is essential. We have created a comprehensive and growing network that, in a cooperative effort with CRST’s broad customer base, can provide our operators with the ability to have high earnings with low deadhead. Our operation is made up of one of the nation’s largest fleets of covered wagons, a large number of step decks and regular flatbeds. We pride ourselves on our driver friendly freight. DISPATCH PROCEDURES – Our dispatch procedure is not new or unique. Stay in touch with your designated contact, central dispatch or terminal. We do not force your dispatch. We do utilize preplanning to ensure you can get reloaded with the least amount of layover and empty miles. Preplanning requires communication, and good communication leads to higher earning. Please Note: You must have a cell phone to lease with Malone. HOME TIME – As stated above, we do not force your dispatch. Therefore, home time is up to the Operator. Keep your 1 fleet coordinator informed as to when you want to go home and how long you want to stay. Most of our Operators develop lanes within our system that allow them to have whatever home time they deserve. FREQUENTLY ASKED QUESTIONS Do I need flatbed experience to qualify for CRST Malone’s Lease Purchase Program? No. One day additional training during orientation at either Birmingham, AL or Rockport, IN. What do you pay? We pay 75% of gross linehaul revenue on the load with or without CRST Malone’s trailer. Additionally, you will receive 100% of the FSC (fuel surcharge) that is paid on each and every load. When do I get paid? For Lease Purchase Operators we offer once-a-week Friday settlements. Paperwork received by end of day Tuesday will process onto your Friday settlement. CRST Malone uses the Transflow scanning system, available at truck stops across the nation at a cost of $0.25 per page. Transflow provides immediate receipt of scanned documents into CRST Malone’s Settlement department. Other pay options available are: Direct Deposit through Com Data, Standard Check and Terminal Pay (in some locations). What type of truck is provided for LP Operators? Our Lease Purchase trucks are currently 2008 and 2009 Freightliners. Please see page 6 for details. Will I get to choose my truck? No. Due to the dynamic nature of our system and the popularity of this program, we cannot predict which specific trucks will be available. Are the trucks governed? Can I change the horsepower / max mph setting? The lease purchase tractors are governed with consideration for safety, fuel economy and engine longevity. Settings may not be altered until contractor has paid off the truck and taken title. Can I lease-purchase my trailer too? No, trailers are rental only. If you elect to rent a flatbed trailer from CRST Malone, there will be a $185 per week charge. How long is orientation? Two and one-half days. Additional training may be required for some operators. CRST Malone offers Lease Purchase orientation in the following cities: Birmingham, Alabama; Eldridge, Iowa, Rockport, Indiana. For Lease purchase operators we pay for travel to orientation and hotel. Lease Purchase orientations begin on Mondays. Once I’m on the road, is there a lot of paperwork to fill out? No. You will fill out a single trip sheet for each run that you make. Along with this page you will Transflow to Malone your bill of laidings and driver logs. Once a month, you will send in a maintenance recap on your equipment. Does Malone pay deadhead mileage? No. Contractors normally try to minimize their deadhead mileage. What is your average deadhead? Our average is 10-15% Are there any bonus programs? Yes ! See next page for details. Trailers The contractor can pull his own trailer or rent a trailer from CRST for $185 a week. Securement Equipment CRST Malone keeps an inventory of securement equipment for its contractors. Please see page 7 for details. Note that contractor is not required to purchase the required equipment through CRST Malone. Cost of this equipment depends on the contractor’s needs. The cost will be set up in payments of $75 per week, and deductions will not start until you have been leased for two (2) weeks. 0 down payment if you need all required securement equipment. No Qualcomm Since CRST Malone does not use Qualcomm; cell phones are required and are the primary means of communication with dispatch 2 Discounts CRST Malone offers a fuel discount program and parts and maintenance discounts at over 400 International dealerships and a national tire account discount program Prepass CRST Malone was one of the first carriers in the nation to be afforded the privilege of participating in the prepass program. Cost of this program is $8.93 per month for unlimited bypass with a $100 deposit. INSPECTION BONUS: ‘Malone Reward Points’ are awarded for going through a state level 1 or 2 DOT inspection with no violations. Malone Reward Points are redeemable for Malone merchandise at the rewards website. You will receive Malone Reward Points if there are no out-of-service equipment violations noted on the inspection form and you provide proof of repair to CRST Malone within 10 days showing violations have been corrected. Violations cannot be out-of-service or driver violations, and all inspections must be logged correctly. REFERAL PAY: $1000 is paid for referring Owner/Operators to CRST Malone. $500 is paid for referring Lease Purchase operators to CRST Malone. Your recruiter can give you more details. What are your hiring requirements? Must have a minimum of six months OTR in the past three years in equipment similar to the type you will operate at CRST Malone. No more than two moving violations in any 12 month period over the past three years. No DUI or DWI convictions within the past five years. No felony convictions within the past 10 years. No positive drug tests or refusals. Minimum age requirement: 25 years old or 23 years old with 2 years of verifiable OTR experience with 6 months of verifiable flatbed. Escrow Accounts: Operators can take advantage of an optional payroll deduction that allows them to put Escrow Account money aside for unforeseen emergencies. Driver’s Legal Plan The attorneys of Drivers Legal Plan dedicate their entire practice to CDL defense. These lawyers have extensive experience in every state and practically every court in the continental fortyeight states. Former judges and prosecutors, and CDL holders themselves; they, and their legal staff have handled thousands of cases for drivers just like you. They are familiar with logbook rules, hazmat standards, weight and length restrictions, and moving violations in the various states; and more importantly, the effects on your CDL. To enroll or for more information, call Toll-Free at 1-800-580-8789 ATBS America Truck Business Services (ATBS) is a comprehensive program created specifically to meet the business needs of owner-operators. Owner-operators must handle many time-consuming, complicated business tasks themselves including bookkeeping, tax preparation, and monthly income statements. Their personalized program handles all of those elements and more, plus unlimited business consulting. ATBS is a unique complete program with one goal – to make their customers the most profitable, successful owner-operators in the industry. To enroll or for more information, call Toll-Free at 1-888-640-4829 or go online to www.attrucktax.com Insurance & Deductions CRST Malone provides General Liability and Cargo Insurance at no cost to the Owner/Operator, however the Owner/Operator will be responsible for the deductibles of $1,500 on cargo and $1,000 on liability. If cargo and liability are paid on the same accident, the maximum deductible would be $1,500. Non-Trucking Liability Cost: $30 per month/deducted at approx. $7 / week from settlement. (Required) Covers: Liability insurance when not under dispatch Deductibles: $1,000 per occurrence Note: Non-Trucking Liability insurance is required, but does not have to be obtained through CRST Malone. 3 Physical Damage Cost of physical damage insurance for an LP tractor is approximately $35 per week. Covers: Damage to operator’s tractor. Deductibles: $1,000 fire or theft - $1,000 collision. Trailer insurance is included in the weekly trailer rental fee and has same deductibles. Occupational/Accidental Cost: $182 deposit deducted over a 10 week period, $18.2/wk. Deducted from settlement at $45.50/wk. Covers: Medical expenses and provides weekly earnings when an operator is injured or disabled due to an occupational accident or work related injury Note: On the Job Injury Insurance is required for all drivers for owners and in some states all Owner Operators. Contractors may obtain Occupational Accident coverage through CRST. If the contractor prefers to get On the Job Injury Insurance coverage independently, Worker’s Compensation coverage will generally be required. Plates & Permits CRST Malone runs Illinois base plates. The cost of a tag supplied through CRST for a full year is $2131, prorated $183 less each month from April at $2131 to March at $183. Permits or IFTA (state fuel taxes) are $406.50. The cost of tags is added to the cost of permits and set up as one deduction of $75 per week starting the 3rd week you are leased with CRST. Amounts are subject to change from year to year. Bond The bond is $750 deducted at $75 per week starting on the 4th week you are leased with CRST Malone. This amount is to cover costs associated with the abandonment of equipment and contractor bad debt. 2290 Information. The Lease Purchase Operator is responsible for the cost of the Federal Heavy Highway Use Tax or 2290. The cost is $550/year which is deducted in small payments of $10.58 per week beginning with the first week of lease. Health Insurance CRST Malone is pleased to provide a new, cutting edge, combination of group and individual insurance plans for our valued drivers. Through affiliation with the Independent Trucking Contractor Program, drivers have access to a variety of insurance options. For more information call toll free 1-877-472-5541. Retirement Plan The programs available to Owner/Operators are: Individual Retirement Account, Simplified Employee Pension and Simple IRA plans. Premiums can be settlement deducted or paid through automatic bank account withdrawal. Operators can call Principal Financial at 1-800-253-7991 (Steve Odegaard or Larry Witzel) to receive a detailed packet of information including cost. LP TRUCK INFORMATION Tractors: Dimensions Cab Engine Transmission Wheels Average Mileage Updated 4/19/11 2008 / 2009 Freightliner Columbia 237” Wheelbase Conventional, Condo 72” Sleeper Series 60 Detroit Engine RPM 1800 Avg MPG 6 to 6.5 Fuller 10 Speed Overdrive Generator Pak (APU): No Steel Tire Size LP 22.5 Rear Axle Gear: 3.58 560,000 Payments range from $275 to $295 per week depending on the year / mileage of your truck. Balloon payments are $5000.00. The balloon is the same for all trucks. The balloon payment can be amortized and settlement deducted at $250.00 per week until paid (20 wks). 4 LP Program Overview: The LP program is tough, but if an operator really wants to own a truck they can do it. Keep in mind: the work is hard; the average take home is $1000 + a week. You need to take freight in good areas with good rates. Your home time will be determined by you and your desired and necessary earnings. Middletown, Ohio Dispatch Weekly Revenue / Expense Estimates for LP Operator 75% of Linehaul estimate Fuel Surcharge estimate weekly Weekly contractor revenue estimate $2575 $ 925 $3500 EXAMPLE SCENARIO: Weekly LP Deductions Estimates (Truck payment will vary from $275 to $295 per week) Truck Payment Bobtail Insurance License & Permits Physical Damage Insurance Securement Equipment Trailer Rent Escrow (Bond) $750 2290 ($550 per yr) Maintenance Expense Occ. Acc/Work Comp Weekly Deductions $285 Starts 3rd week after lease $ 7 Starts at lease $ 75 Starts 3rd week after lease $ 35 Starts 1st week after lease $ 100 Starts 2nd week after lease until paid $ 185 ½ amount 1st week full after that $ 0 Starts @ $75 /wk after sec. equip paid $ 11 Starts 1st week after lease $ 288 Starts at lease (based on .12 per comp. mile) $ 45 1st week after lease Required states only EstimateTotal Weekly Deductions $1031 / wk Estimated net weekly earnings before fuel $3500 - $1031 = $3,469.00 Estimated weekly fuel cost - $1,014.00 Estimated weekly earnings after fuel cost $1455.00 * * Your weekly earnings will vary. Lease Purchase Program * Normally 3 Year Lease 4/11/11 [This information is subject to change] PERIOD 1 Typically the first two years of a three year lease. Bumper to Bumper coverage with the following EXCLUSIONS: Glass Breakage Mattresses Adjustments to speed or horsepower Towing charges for being stuck Jump starts after home time Running out of fuel Driver Abuse Rear end failures caused by spin outs Consumable parts (wipers, wiper nozzles Fire Extinguishers 5 Triangles Inverter installations or removals Repairs done to equipment without Maintenance authorization PERIOD 2 Typically third year of the lease. Coverage is for routine maintenance only. Covered items include Tires: Normal Wear Only Brakes and Brake Components Oil Changes Belts and Hoses Alternators Air Conditioning Systems Heater Motors Clutch and Clutch Housing Lights Items NOT covered during Period 2 (in addition to exclusions noted above for Period 1) Engine and all internal parts Fuel injectors ECM or associated electronic components Trubo and Inner cooler Oil cooler, pan and pump Transmission and all internal parts Axle assemblies and all internal parts Timing case cover and timing gears Exhaust manifold Intake Manifold Performance complaints Oil consumption, this includes oil leaks Front suspension, king pins, spring hangers Radiator Glass – windshields, etc. REQUIRED INVENTORY OF SECUREMENT EQUIPMENT BELOW IS THE MINIMUM REQUIREMENTS FOR SECUREMENT EQUIPMENT *Optional equipment can allow for a larger pool of freight and is at the contractors’ discretion. 3/8 Chains - Grade 7 or higher Binders- Sncap Over or Rachet Beveled Hardwood Lumber Tarp - Steel (16x24) Tarp- Lumber (8ft drop 24x27) Straps, Webbing- 3" Straps, Webbing- 4" Bungee Straps Coil Racks Rubber Belting Steel Chain Protectors Plastic Strap Protectors 10 10 10 2 1 (2 req. for TX regional) 10 10 (req. for Alcoa Dedicated or side kit) 50 10 16 20 20 6 Winch Bar 1 ** Contractors with their own equipment must have trainer’s initials in the specific equipment box indicating the amount and condition is within standards. *** Various accounts in certain regions may require additional equipment. Hard Hats and Safety glasses may be required at some of our customer’s locations. Drivers should have this equipment with them at all times. 7