Can Exhibit 106 be signed electronically?

Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and record retention requirements are met.

Do I need a notary or witnesses?

Most commercial transportation contracts do not require notarization or witnesses to be enforceable. If a state or specific clause requires notarization, follow state notary rules or use Remote Online Notarization where allowed.

What signature authentication is sufficient?

Choose an authentication level proportional to risk: email link or SMS code for routine contracts, and stronger methods (KBA, two-factor, or advanced signer authentication) for high-value commitments or regulated transactions.

How should insurance certificates be handled?

Require carrier-provided certificates of insurance before the first movement, specify required endorsements, and retain the COI with the executed agreement for claims and audits.

How long must I keep executed Exhibit 106 copies?

Retain executed agreements for the contract term plus a minimum of 3 years; federal tax and industry rules may require longer retention (see IRC §6501(a) and 45 CFR §164.530(j)).

What if a signer disputes the electronic signature?

Preserve the audit trail (timestamp, IP, authentication method) and any consent disclosures. Those records demonstrate intent and attribution, which support enforceability under ESIGN/UETA.

Electronic Signature
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Exhibit 106 Master Transportation Services Agreement

Exhibit 106 Master Transportation Services Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

What the Exhibit 106 Master Transportation Services Agreement Is

The Exhibit 106 Master Transportation Services Agreement is a standard contract used to set terms between a shipper and a carrier or third-party logistics provider for recurring transportation services. It typically defines scope of services, rates, routing rules, insurance and liability limits, billing and payment terms, performance standards, and indemnities. Organizations attach Exhibit 106 as an exhibit to a master services agreement or include it as the operative shipping schedule that governs shipments, service-level expectations, and remedies for noncompliance.

Why Exhibit 106 Matters for Contracts and Operations

A clear Exhibit 106 standardizes operational expectations, reduces disputes over carrier responsibilities, and centralizes rate and insurance terms for recurring freight. It makes invoicing and claims handling more predictable and supports audits and regulatory compliance for transportation and logistics operations.

Who Typically Prepares and Signs Exhibit 106

Final signers are authorized business officers or contract signatories from both the shipper and carrier, each responsible for ensuring operational and insurance obligations are met.

Logistics and supply chain teams managing carrier selection and operational KPIs for shipments.
Procurement and vendor management groups that negotiate rates, service levels, and indemnities.
Legal and compliance staff who review insurance, liability, and regulatory clauses.

Step-by-step completion process

Follow this sequence to prepare, review, and execute Exhibit 106 reliably.

01

Draft: Populate parties, scope, rates, and insurance fields.
02

Review: Legal and operations confirm obligations and liabilities.
03

Approve: Obtain internal approvals and budget sign-off.
04

Execute: Collect signatures and retain final executed copy.

Core elements to include in a professional Exhibit 106

A complete Exhibit 106 balances operational detail with legal clarity to reduce disputes and support billing, audits, and insurance claims.

Service Description

Detailed service lines, pickup and delivery windows, equipment types, routing rules, and any required special handling or permits. Use objective language to define scope and exclusions for transport operations.

Rates & Accessorials

Base rates, fuel surcharge methodology, rules for accessorial charges, dispute resolution for pricing, and invoicing frequency. Tie formulas to clearly defined indices where applicable.

Insurance & Liability

Minimum insurance limits, cargo coverage, indemnity allocation, and procedures for claims notice and subrogation. Require certificate of insurance and endorsement language when necessary.

Performance & Remedies

Service-level commitments (on-time pickup/delivery), measurement methods, remedies for failure (chargebacks, liquidated damages), and cure periods to resolve operational issues.

Compliance & Safety

Carrier obligations to comply with DOT, FMCSA, and hazardous materials rules, as well as drug and alcohol testing where applicable. Include audit and inspection rights.

Termination & Notices

Termination for convenience and cause, notice addresses and methods, and obligations surviving termination such as unpaid charges and indemnities.

Essential information and fields to capture

Carrier Legal Name: Full entity name

Shipper Legal Name: Full entity name

Effective Date: MM/DD/YYYY

Payment Terms: Net 30, Net 45, etc.

Insurance Limits: Specify coverage amounts

Signature Block: Authorized signer details

How to configure a digital workflow for Exhibit 106

Configure your e-sign and routing settings to match internal approval and audit requirements before sending for signature.

Field	Configuration
Signature Authentication	Email, SMS code, or KBA
Approval Order	Sequential or parallel routing
Attachment Requirements	COI, endorsements, or licenses
Retention	PDF with audit trail

Digital signing and system requirements

Align signer authentication, archive storage, and audit trail settings with legal and internal compliance policies before finalizing the workflow.

File formats: PDF and DOCX supported
Integrations: Salesforce, NetSuite, Google Workspace
Security: AES-256 at rest

Typical eSignature workflow for Exhibit 106

A standard eSignature flow reduces turnaround time and preserves a complete audit trail for each executed agreement.

Upload: Upload the agreement to the signing platform
Prepare: Place signature, date, and attachment fields
Send: Route to signers with authentication
Complete: System captures signed PDF and audit log

Typical timeline items and deadlines to track

Track key dates from initial execution through insurance and renewal deadlines to avoid gaps in coverage or performance obligations.

Contract Effective Date:

Date agreement becomes operative and obligations begin

Insurance Certificate Due:

Proof of insurance required before first pickup

Rate Review Date:

Periodic pricing reopener or CPI adjustment window

Contract Renewal:

Renewal notice period and automatic renewal terms

Claims Notice Period:

Time allowed to report cargo or loss claims

Key milestones from negotiation to active service

Sequence milestones to coordinate procurement, onboarding, and operational readiness for transportation services.

01

Negotiation Complete

Final terms approved by procurement and legal

02

Insurance Confirmed

Certificates verified and on file

03

Carrier Onboarded

System access and routing integrated

04

Service Commences

First shipments scheduled and executed

Common mistakes to avoid when preparing Exhibit 106

Using vague scope language that leaves handling and accessorial charges undefined, which often leads to billing disputes and operational delays.
Failing to require a certificate of insurance or proper additional-insured endorsements, leaving the shipper exposed during cargo loss or liability claims.
Not aligning digital signing authentication with internal compliance needs; weak signer verification can create enforceability or audit issues later.
Neglecting to include notice addresses and effective-date mechanics, causing confusion about when rates or obligations actually take effect.

Penalties and legal risks for incorrect or incomplete Exhibit 106

Contractual Damages: Monetary exposure for nonperformance

Indemnity Exposure: Broad indemnities increase liability

Insurance Gaps: Claims denied for insufficient coverage

Regulatory Fines: DOT/FMC violations risk penalties

Operational Disruption: Service interruptions and re-routing costs

Enforceability Issues: Signature or execution defects

Real-world examples of Exhibit 106 in use

These short examples show how organizations applied standard agreements and digital workflows to improve execution and compliance.

Optica Ventures (Logistics)

Optica standardized carrier terms across multiple lanes to reduce billing disputes and speed onboarding.

Result: consolidated templates and clearer accessorial rules.
The interface was simple for internal teams and customers, letting Optica process recurring freight with fewer disputes and faster settlement cycles.

Martin Properties (Property Services)

Martin Properties used a template Exhibit 106 to manage contractors moving building materials across sites.

Point: required COI and routing clauses prevented misunderstandings.
With standardized insurance language and signature workflows, Martin Properties reduced coordination time and minimized exposure during inter-site transports.

Who must sign and why their authority matters

Operations Director

An operations director or logistics manager signs to confirm operational acceptance of the routing, service levels, and pickup/delivery processes and to ensure the carrier meets day-to-day service requirements.

Authorized Executive

A corporate officer or authorized contract signatory signs to bind the organization legally to rates, indemnities, and insurance obligations, ensuring the agreement is enforceable.

eSignature pricing and capability snapshot for executing Exhibit 106

This vendor snapshot compares starting prices and key features relevant to high-volume contract execution and compliance. Verify vendor plans for exact feature sets and billing models.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Practical tips to complete Exhibit 106 accurately

Follow these best practices to reduce execution errors, shorten cycle time, and protect your organization.

Use standardized templates

Keep a single approved Exhibit 106 template and update centrally so that all teams use consistent language for rates, insurance, and liabilities.

Require certificates before first move

Verify carrier insurance and endorsements before authorizing the first shipment to prevent coverage disputes later.

Align digital workflow settings

Match authentication level, audit-trail retention, and signer order to your internal compliance and external regulatory obligations.

Document change control

Track amendments in writing and capture executed addenda to avoid claims over verbal or informal changes to service terms.

Frequently asked questions about Exhibit 106 and electronic execution

Answers to common concerns about signing, enforceability, and recordkeeping for Exhibit 106 agreements.

Need help? Contact support

Can Exhibit 106 be signed electronically?
Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and record retention requirements are met.
Do I need a notary or witnesses?
Most commercial transportation contracts do not require notarization or witnesses to be enforceable. If a state or specific clause requires notarization, follow state notary rules or use Remote Online Notarization where allowed.
What signature authentication is sufficient?
Choose an authentication level proportional to risk: email link or SMS code for routine contracts, and stronger methods (KBA, two-factor, or advanced signer authentication) for high-value commitments or regulated transactions.
How should insurance certificates be handled?
Require carrier-provided certificates of insurance before the first movement, specify required endorsements, and retain the COI with the executed agreement for claims and audits.
How long must I keep executed Exhibit 106 copies?
Retain executed agreements for the contract term plus a minimum of 3 years; federal tax and industry rules may require longer retention (see IRC §6501(a) and 45 CFR §164.530(j)).
What if a signer disputes the electronic signature?
Preserve the audit trail (timestamp, IP, authentication method) and any consent disclosures. Those records demonstrate intent and attribution, which support enforceability under ESIGN/UETA.

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