This Trailer Interchange and Indemnity Agreement ("Agreement") is entered into
this
day of
20 by and between the above-named parties ("Parties"). This Agreement outlines the terms and conditions under which the Parties agree to interchange, use, and return trailers in compliance with all applicable federal, state, and local laws.

This Agreement governs the interchange and use of trailers owned, leased, or operated by either Party. It applies to all equipment transferred under this Agreement, including trailers, chassis, and related accessories, whether used for freight, storage, or other lawful purposes.

Each Party warrants that any trailer tendered is in safe, operable condition, meeting all applicable FMCSA, DOT, and state inspection standards. Equipment shall be free of major defects, including but not limited to tire damage, brake malfunctions, lighting issues, or leaks.

The receiving Party shall use the trailer only for lawful transportation activities and in compliance with FMCSA regulations. Trailers shall not be subleased, lent, or used for any illegal, unauthorized, or hazardous purposes. The receiving Party shall not remove or alter any identification or license markings.

Before accepting possession of any trailer, the receiving Party shall inspect the unit for physical damage or mechanical defects. A joint inspection report, including photos if applicable, shall be completed at both pickup and return. If no exceptions are noted, the trailer shall be deemed accepted in good condition.

The receiving Party assumes full responsibility for the trailer from the time of acceptance until it is returned. Repairs for mechanical failures caused by normal wear shall be reported to the owner before proceeding. The receiving Party is responsible for all costs associated with negligent damage, collision, or loss.

Each Party shall maintain, at its own expense, insurance coverage with limits not less than: (a) Commercial Auto Liability with a minimum combined single limit of $1,000,000, and (b) Trailer Interchange Physical Damage coverage of at least $50,000 per trailer. Each Party shall list the other as Additional Insured and Loss Payee as applicable.

Any claims for loss or damage must be reported within 10 business days of trailer return. Parties shall cooperate fully to determine cause and responsibility. Unresolved disputes shall be subject to mediation before legal action is pursued. Each Party shall bear its own legal costs unless otherwise ordered by a court.

Each Party agrees to indemnify, defend, and hold harmless the other Party, its officers, employees, and agents from any claims, damages, or liabilities arising out of the use, operation, or possession of the trailer, except where such claims result from the negligence or willful misconduct of the indemnified Party.

This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois. Any disputes arising under this Agreement shall be resolved in the courts of the State of Illinois, County of Cook, unless otherwise mutually agreed in writing.

This Agreement represents the entire understanding between the Parties concerning the subject matter herein and supersedes all prior agreements. Any modifications must be made in writing and signed by both Parties. If any provision is held invalid, the remaining provisions shall remain in full force and effect.