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EXHIBIT 10.9
INTERLINE AGREEMENT
This agreement made and entered into this, the 28th day of June 1997
by and between Viking Freight, Inc. (Viking) of 0000 Xxxxxxxxx Xxxxx Xxxx, Xxx
Xxxx, XX 00000 and Central Freight Lines, Inc. (CFL) of 0000 X. Xxxx Xxxxx,
Xxxx, XX 00000.
Witness: That whereas the parties hereto desire to interchange freight
shipments one with the other, and whereas it is to be the mutual interest of
the parties hereto so to do. Now THEREFORE, in consideration of the mutual
promises to interchange freight shipments, the parties hereto agree to such
interchange one with the other subject to the following terms and conditions,
to wit:
1) All freight interchanged will be handled in accordance with and
subject to tariffs maintained or on file, as required by law.
2) Freight charges will be settled between the parties by proper
payment or other credit within not more than fifteen (15) days from the date a
statement is presented, unless and until otherwise agreed upon in writing by
the parties to this agreement.
3) Division of freight revenue will be made as provided in APPENDIX
(A) which is attached to and made a part of this agreement.
4) Any and all claims for overcharge or undercharge shall be prorated
in the same percentage as the agreed division of revenue.
5) Claims for cargo loss, damage, or delay shall be settled in
accordance with the Freight Claim Rules of the American Trucking Association
National Freight Claim Council.
6) Freight interchanged under this agreement shall be fully covered by
insurance by both parties and evidence thereof furnished upon demand of either
party together with such evidence of financial responsibility as may be from
time to time considered necessary.
7) Rules 128, 130, and 131 governing adjustment of Overcharge Claims
and Interline Settlements as published in the Freight Claim Rule Book by the
National Freight Claim Council will have no application in connection with
Interline Settlements, Minimum Adjustments, Overcharge and/or Balance Due
Bills.
(a) Viking will accept customer filed overcharge claims from CFL
when the prorated portion of the overcharge is $10.00 or more
per freight xxxx except when two or more bills are included in a
single claim, the combined pro-rated overcharge amounts must
aggregate an average of $10.00 or more per freight xxxx. Viking
will in turn transmit claims to CFL on the same basis,
(b) Viking will accept CFL overcharge claims up to (6) months from
the date the claim was received by CFL with whom the claim is
filed, and will present such claims to CFL in a similar manner.
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(c) Resettlements, corrected freight bills, and balance dues: will
be accepted by Viking up to six (6) months from the date of the
original settlement and will be transmitted on the same basis.
Neither party will present to the other a balance due xxxx for
less than $10.00 per freight xxxx after the settlement of the
original charges.
(d) On shipments that have been previously handled through Interline
settlement for the division of the through revenue on which
balance dues occur due to reversal of charge or increased
revenue, balance due will be settled promptly between carriers
party to this agreement whether or not Collection has been
attempted from the Customer. If, after attempting collection of
the additional charges from the customer the charges cannot be
collected the carrier attempting collection from the customer
will xxxx the other carrier for the amount involved which will
be paid promptly after satisfactory explanation as to why
collection cannot be accomplished.
8) Purchased transportation or carrier operated line transportation
shall be considered single line in ascertaining the Percentage factors.
9) C.O.D. fees shall accrue to the delivering carrier. Accessorial
and/or arbitrary charges shall accrue to the carrier on whose line the services
are performed.
10) Fractions of a cent or percent shall be omitted if less than one
half of a cent or percent and increased to the next whole number K one half or
more of a cent or percent.
11) Shipments stopped to partially load or partially unload: when
shipments are stopped to partially load or partially unload short of the
interchange points named on this agreement, the division of revenue accruing to
the carrier handling only a portion of the shipment shall be computed at the
volume rate on the weight actually transported (subject to the volume minimum
weight applicable from origin to destination) or the LTL rate from origin to
destination, whichever is lower. All provisions of this item are further
subject to Item No. 12 of this agreement.
12) It is understood by Viking and CFL, that in applying provisions of
this agreement that revenue accruing to either carrier will not exceed the
local published rate for its portion of the through movement.
13) On both Westbound and Eastbound moves, trailers will be dropped at
the other carrier's respective terminals for unloading. The other carrier's
driver need not be present at time of unloading.
a) Each carrier should fax and/or overnight mail to the other a
copy of its trailer unload report, with the exceptions noted on
the report.
b) See APPENDIX (B) for operating procedures for handling Overages,
Shortages and Damages (OS&D).
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14) On refused shipments, the delivering carrier is to notify the
shipper in writing, with a copy to the origin carrier, asking for disposition.
Copies to Viking should be sent to Claims Department, 000 X. Xxxxxxxx Xxxxxx,
Xxxxx 0000, Xxx Xxxx, XX 00000.
15) No change, alteration, or amendment in the provisions of this
agreement shall be made except by agreement of the parties in writing. The
party initiating such change, alteration, or amendment must serve the other
party thirty (30) days' written notice of its intentions prior to the effective
date of any such change, alteration, or amendment.
16) Any promotion of freight between carriers' territories using the
name of the interline carrier will be confined to traffic moving between
Arkansas, Kansas, Louisiana, Mississippi, Missouri. New Mexico, Oklahoma and
Texas, on the one hand, and, on the other Arizona, California, Colorado, Idaho,
Montana, Nevada, Oregon, Utah, Washington, Wyoming, Alaska, and Hawaii.
17) This agreement shall remain in full force and effect without need
for renewal except that it may be terminated by either party upon thirty (30)
days written notice served on the other party.
18) This agreement supersedes and cancels any and all other previous
interchange agreements now in force and effect between the parties to this
agreement.
Witness our duty authorized signatures on the date noted below.
VIKING FREIGHT, INC. CENTRAL FREIGHT LINES, INC.
BY: /s/ Xxxxx Xxxxxxxx BY: /s/ Xxx Xxxxxxxxx
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Xxxxx Xxxxxxxx Xxx Xxxxxxxxx
TITLE: Vice President Marketing TITLE: Senior Vice President
Sales and Marketing
DATE: 7/10/97 DATE: 7/10/97
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EFFECTIVE
(See Item No. 17)
Appendices
Appendix A - Basis for Division of Revenue
