GENERAL QUESTIONS

Q. Is this a walk away lease?

A. No. Our Agreements are Lease Purchase Agreements which allows you to own the equipment at the end of the term.

Q. What is your longest Agreement?

A. That would be on a new truck, which is 260 weeks (5 years) to a $1.00 buyout at the end of the term. Slightly used trucks will generally have a shorter term.

Q. Can I see the Agreement before I commit to a truck?

A. Yes. Once your credit has been cleared, we can send you a copy of the current Agreement.

Q. Do you lease trucks to an owner operator with his own authority?

A. No, we do not. Our trucks are reserved for drivers wanting to remain or become owner operators for our six major customers, all of whom are currently set up in our program.

Q. I hear that some of these lease purchase companies have liens against their equipment so, even if I am current on my payments, my truck could be repossessed if the leasing company does not pay their payments. So, do you have liens on the titles to any of your trucks?

A. No. They are all paid for in cash and have no liens against them. A copy of the clear title is always provided.

Q. How much is required for a down payment on a truck?

A. Our main goal is to provide equipment with no down payment, assuming that you have reasonably good credit.

Q. Do you have a balloon payment at the end of the lease term?

A. There is no balloon payment.

Q. When the last payment is made, do I get a clear title to my truck?

A. Yes. Your clear title will be sent to your home via Fed Ex.

Q. What does my credit score have to be in order to qualify for a zero down?

A. Credit scores above 650 are almost always approved. Credit scores from 500 to 649 are carefully reviewed and credit scores below 500 are generally not acceptable. However, since credit scores are computer generated and often do not reflect the applicants desire to pay bills in a timely manner, each of the scores below 600 are reviewed in detail and any questionss will be discussed with the applicant prior to a decision.

Q. Do you buy most of your trucks new or do you buy used trucks?

A. We try to buy all of ours new so that we have the complete history on the truck until it is paid off. However, we occasionally buy late model used trucks when new truck deliveries are delayed with drivers waiting.

Q. If I find a nice truck, will you buy it for me and finance it back to me?

A. No. Used trucks bought off someone that we do not know generally lead to mechanical issues down the road. There is a reason that the prior owner got rid of the truck. We don’t want to inherit those problems, regardless of how good the deal sounds.

PAYMENTS

Q. What do your payments range on a new truck with no down payment?

A. New trucks are currently running between $190,000 and $200,000. That would put your weekly payments between $1050 and $1100 per week, plus $200.00 per week to go into your maintenance account.

Q. What do your payments run on a slightly used truck with no down payment?

A. $850.00 to $975.00 per week, depending on the age and miles.

Q. If I want a lower payment, will you agree to a term longer than 5 years?

A. No. At the end of the 5 year term, your truck would probably have around 650,000 miles on it. Making payments on an older truck with miles like that is generally a financial mistake.

Q. How do I pay you each week for my truck payment?

A. Our partner carriers deduct your payments out of your settlement and send to us each Friday.

Q. If freight is slow or if there is a holiday or bad weather, can I ask for a waived payment?

A. No. We do not interfere or even have any knowledge of what you haul and what it pays. That should be discussed with the company where you are leased. And, as for holidays, those come around each year. If you want an account to be used for setting aside money to cover these, talk to Michael at michael@mjleasingllc.com.

Q. If I don’t have a settlement for a particular week, can I take the payment out of my maintenance account?

A. No. Missing payment has nothing to do with maintenance.

Q. If I take off a week, do I still owe a payment for that week and if so how do I pay it if I don’t have a settlement coming from my company?

A. There are three ways to handle this:

1. Send us a personal check or have us draft your personal account by the due date on Friday.
2. Have a “savings account” set up with us, which is not required but often done.
3. Have the company double up next week (not recommended as it increases your interest).

Q. If I am late on a payment, how does that affect my payoff and my interest expense?

A. Your original Agreement will be established on the basis that you will make all of your payments on time. Each payment is automatically separated into principal and interest portions by our software. As the payments progress, your principal portion of the weekly payment will increase and the remainder of the payment (interest) will decrease. However, if those payments are not made on time each week, your interest expense for that week will increase and the portion going to principal will not decrease as much as if the payment were made on time.

Q. What if I am broke down? Do I still owe a payment for that week?

A. Any breakdown should be reported to our maintenance support people. They make a note of the date and time that the breakdown or need for repair started. They will assist you in getting the truck repaired and back on the road. If that time frame from start to finish is 72 hours or more, you can request a waived payment. Your maintenance support person will evaluate the circumstances for that particular instance and submit your request to our receivables person. Legitimate requests such as this will generally be honored.

Q. On a new Agreement, when is my first payment due?

A. Generally speaking, that will be on the third Friday after your truck is scheduled to be picked up by you. The specific date due on your first payment is on your Appendix B of your Agreement.

Q. What happens if I miss a payment that was not waived because of maintenance issues?

A. Missed payments with no effort to bring your account current is a serious situation. Your first instance, if not made up quickly, will put you in a high risk category. Your second such payment will put you in default. You do not want to end up there.

Q. What if I decide not to continue to pay for the truck and just park it somewhere and leave it?

A. This is the last thing you want to do. Under Missouri law 570.057, you will have committed two class D felonies. Your credit will be ruined and you will have warrants issued for your arrest. You will be prosecuted.

Q. Can I sell the truck to someone else at any time during the Agreement?

A. Yes, providing that the sales price equals or exceeds your current principal balance at the time of the sale. The remaining principal balance goes to MJL and the excess goes to you. Keep in mind, MJL does not finance outside sales. The buyer must be someone other than MJL.

Q. How do I find the current principal balance owed on my Agreement?

A. Our software calculates the principal balance on each piece of equipment in real time. Anyone at MJL who has access to the financial accounts can give you a current payoff while you are on the phone.

Q. Can I trade the truck at any time during the Agreement?

A. Generally yes, depending on the available equipment at the time. Many drivers have to start in an older truck with the understanding that they get in line for a new truck later on. This is especially true in today’s environment where new truck deliveries are far out in the future and often delayed for weeks if not months.

Q. What if my truck is wrecked and inoperable? What happens to my payments and what do I drive until it is repaired?

A. If the accident is deemed the other parties fault, they should have insurance that will pay you down time until your vehicle is repaired. We supply you with a replacement vehicle so you can continue to work. The down time payments should be sufficient to pay for the replacement vehicle so that your payments on the wrecked vehicle continue to be paid on time. If the accident is deemed to be your fault, you will have to negotiate an Agreement that is specific to the severity of the accident and the length of time to repair. In these cases, our goal is provide a solution that will allow you to continue to work. Generally speaking, your Agreement may have to be rewritten under either scenario as repair times are often unreasonable due to lack of parts.

Q. What if I get hurt and can’t drive or just want to return the truck?

A. Section 8 of your Agreement deals specifically with this situation. It can be done but does require some turn in expense that you will be required to pay.

Q. If I switch trucks, do I get a free payment or payments between Agreements?

A. No.

Q. Do you have any sort of escrow payments?

A. Yes. We sometimes require a performance escrow from applicants with a credit score less than 700 and generally require a performance escrow from applicants with a credit score less than 600. These will be for a specific time period and will be listed on your Appendix B . The funds will be held in an interest bearing account at an annual rate of 5% compounded interest, with the interest being paid weekly to your account.

Q. When do I get my escrow back?

A. When two years of your Agreement is successfully completed, 50% of the funds will be returned to your maintenance account. After the funds are deposited into your maintenance account, you can elect one of the following:

• 1. Leave it in your maintenance account for future maintenance needs.
• 2. Request a check if your maintenance account is over $2500.00.
• 3. Bring your maintenance account up to $2500 request the rest in cash.
• The remaining 50% can be applied at the completion of your Agreement.

MAINTENANCE ACCOUNTS

Q. What are your interest rates paid or charged on my maintenance account?

A. Maintenance accounts with a positive balance are paid to the account by MJL on a weekly basis at a annual compounded interest rate of 4%, which more than what you would get from a personal savings account. Conversely, negative balances in your maintenance account are charged at an annual rate of 25% compounded interest

Q. How do I calculate my weekly interest rate if I finance my wet kit thru MJL?

A. Interest is always calculated on a daily/weekly basis. The weekly rate for your maintenance account takes a factor of .004807625 times your balance to determine the interest that you are charged for the week. For example, you have a negative balance of $5000.00, you could determine your interest charge for the week by multiplying that factor times the $5000.00. That amount comes up to $24.038 for 7 days or just under $3.44 per day. That gives you an idea of whether or not you want to pay for your wet kit up front or finance it thru your maintenance account until it is paid off.

Q. Can I use my maintenance account to make my truck payments?

A. No.

Q. Can I get a cash advance out of my maintenance account?

A. No. It is for maintenance on the truck and not a personal checking account.

Q. Do I have access to the transactions in my maintenance account?

A. Yes. You will be given an account and a password to be used on our web site. The last 16 transactions can be viewed. You will see all transactions, including interest paid or charged, and any bills paid on your behalf. IMPORTANT NOTE. WHEN YOU SEE A NEGATIVE SIGN (-) IN FRONT OF AN AMOUNT, THAT MEANS THAT IT IS ON OUR BOOKS AS A LIABILITY TO YOU AS THIS INDICATES THAT THE MONEY IS YOURS AND IS ON RESERVE TO HANDLE FUTURE MAINTENANCE NEEDS.

Q. Can I see copies of any invoices charged to my account?

A. Yes. You can view, download and print copies of those invoices.

Q. Is there a maintenance service charge for using this account?

A. No. The only time you should see a difference between the actual maintenance expense and the amount that is showing in your account is whether or not there was a transaction fee charged by the vendor, such as a Comcheck fee, for paying for the repair.

Q. Is there a limit where I can stop paying into my maintenance account?

A. There is no set limit.

Q. What type of receipt is needed when I want something paid out of my maintenance account?

A. We only accept receipts from a valid business on business letterhead. Hand written receipts or requests for cash funds to pay for repairs is not allowed.

Q. Can I have my truck “decerted” if I start having problems with the DEF system?

A. No. That is a federal felony. Your lease will be terminated and you will be reported to the EPA for prosecution. The penalty for that is a fine from the EPA of $25,000. Also, most companies have a requirement that the truck be EPA legal. So, if you “decert” the truck, not only will you have the EPA looking to fine you, the company where you are leased will probably terminate your Agreement.

INSURANCE REQUIREMENTS

Q. What type of insurance do you require?

A. MJL and all of our carrier partners require 3 types of insurance on any owner operator. This insurance must be verified in writing with the corresponding insurance company before the driver can leave with the equipment. Those insurance types are:

1. Occupational Accident insurance—pays the driver if hurt.
2. Bobtail insurance—insures the vehicle while it is being operated for personal use.
3. Physical damage insurance—pays for the vehicle if it is damaged or destroyed.

Q. Do I have to go through you for the insurance?

A. You can go through the company where you are leased, use your personal insurance company, or in certain circumstances, go thru MJL.

Q. How much does this insurance cost?

A. Items 1 and 2 are generally have a combined cost of about $175.00 per month, regardless of the carrier. Physical damage insurance is much higher and is dependent on the retail value of the truck. Shop around for the best deal for you. Just be sure that MJL is listed as the certificate holder and loss payee. And, ALWAYS MAKE SURE THAT YOUR PHYSICAL DAMAGE PROVIDER HAS RENTAL REPLACEMENT INSURNACE INCLUDED IN THE PACKAGE. THIS WILL BECOME CRITICAL IF YOU HAVE TO RENT A VEHICLE WHILE YOURS IS BEING REPAIRED.

WARRANTY

Q. What is your standard warranty?

A. 125,000 miles on the engine, 500,000 on the transmission and clutch and 750,000 on the rear ends.

Q. Can I purchase additional warranty?

A. You can, typically thru the dealer. Those are generally available for engines with less than 650,000 miles on them, which is the case with all of our trucks. The choice of warranty offered varies greatly in price and coverage. However, if the DEF system is not covered, you are probably wasting your money.

Q. If I get additional warranty, will you pay for it and add it to the truck payment?

A. You can take those funds out of your maintenance account if your maintenance balance exceeds the cost of the warranty or, with prior approval from MJL, that can be financed thru us at a reasonable weekly rate until paid.

TYPE OF TRUCKS

Q. What type of trucks do you typically buy?

A. In the past, we have purchased a large variety of trucks based off what the drivers want. Unfortunately, the parts issue and the sky rocketing cost of new equipment has limited us to 2 vendors where we can leverage price by buying more from them. Those trucks are Peterbilt 579’s and Freightliner Cascadias. The Peterbilts are Cummins ISX power with Eaton 12 speed automatic or Eaton 13 speed manual transmissions and Eaton rear ends. The Freightliners are DD15 Detroit power with either a 13 speed Eaton manual or a D12 12 speed Detroit automatic and an Eaton rear end.

Q. How can I get on the new truck list?

A. Trucks are generally preseated up to six months in advance of the projected arrival date. The best way to secure a new truck is to be successful in the program for at least six months and then discuss the options with someone at MJL. Send that request to rick@mjleasingllc.com. You have to have at least $2500.00 in your maintenance account to be considered for this option and you must pay off the turn in expenses on your current truck.

Q. Can I special order what I want?

A. We have bulk pricing in place with all both vendors and have our owner operator specifications on file with each. If done at least 120 days in advance, you can select your transmission type and your color. Beyond that, additions can get rather pricey. Any additional features requested will have to be identified in advance and paid for prior to the special order being signed.

Q. Do all of your trucks come with APU’s and refrigerators as standard equipment?

A. Yes

Q. Do you run super singles on your new trucks?

A. No. Duals only.

MOVING THE TRUCK TO ANOTHER CARRIER

Q. If I don’t like the company, can I move the truck to a different company under this same Agreement? A. You would have to have a new Agreement with the new carrier’s name and DOT number on your Appendix B of the Agreement. You would need a very good reason for wanting to move the truck. There is an entire section in your Agreement that spells out the circumstances under which you can successfully move the equipment. Keep in mind that you are getting this truck in large because of your financial stability and the sponsorship of the company where you are going to work. Without that company, you would not have the truck to start with. And, more importantly, drivers who have a habit of jumping companies more than once every three years are a high risk and generally always fail in the long run.

FINANCIAL APPROVAL AND CREDIT CHECK

Q. How do I take the next step?

A. CONTACT US and let us know you're interested. Look for the tab that says credit application. Fill that out. Once completed, the file will be encrypted and sent to two people at MJL. One of those two people will contact you with 24 hours as to your credit application.

FOR DRIVERS WHO ARE REQUESTING TRUCKS WITH WET KITS FOR USE IN THE FOOD GRADE TANKER BUSINESS

Do you provide all types of wet kits?

A. Only the Food Grade wet kits at present.

Q. Do you include the cost of the wet kit in with the tractor?

A. No. The wet kit is purchased and installed separately. The charges for that particular wet kit can vary as much as $2000.00 depending on whether or not a used oil cooler or a new cooler is used, the type of transmission on your truck and certain other charges specific to the installation on your truck.

Q. Do I have to pay you for the cost of the wet kit up front?

A. You can or you can finance it separately from the truck thru your MJL maintenance account.

Q. How do I finance the cost of the wet kit?

A. Once we determine the estimate the cost of the wet kit, that amount will show up as an amount due in your maintenance account. That balance will be reduced as you make your weekly payments.

Q. What happens to my payments once I get the wet kit paid off?

A. Generally, after you have reached a positive balance you can ask to have the weekly maintenance payment reduced. CONTACT US for details when that time comes. Also, the estimated time for the increased payments will be listed on your Appendix B.

Q. If I switch tractors, do I have to buy another wet kit?

A. Generally speaking, no. If your truck is sold to an outside party, drivers generally have it removed and sell it to another driver. If you trade trucks within MJL for a new truck or a truck that does not have a wet kit, we generally buy back the original wet kit and you go with a new one.