Conditions of Contract

1. Carriage and other services performed hereunder are subject to these conditions and to the rates, rules and classifications set forth in the Forwarder’s currently effective tariffs, which are available for inspections and incorporated this contract by reference.

2. As used in this contract, “Forwarder” means Ceres Transportation Group, Inc., and its authorized agents.

3. In tendering this shipment for carriage, the shipper warrants that the shipment is packaged to protect the enclosed goods and to insure safe transportation with ordinary care and handling, and that each package is appropriately labeled and is in good order for carriage as specified.

4. All shipments may, at Forwarder’s option, be opened and inspected.

5. Forwarder shall not be liable for any loss, damage, delay, misdelivery, non-delivery or other result not caused by its own negligence. In any event, Forwarder shall not be liable for (a) acts of God, public enemies, public authorities acting with actual or apparent authority, authority of law, quarantine, riots, strikes, civil commotion’s, or hazards or dangers incident to a state of war: (b) the act or default of the shipper or consignee, including any breach of the warranty set forth in Paragraph 3 above; (c) the nature of the shipment, or any defect, characteristic or inherent vice thereof; (d) violation by the shipper or consignee of any of these conditions of contract; (e) compliance or non-compliance with delivery or special instructions.

6. Forwarder shall not be liable for special or consequential damages.

7. In consideration of Forwarder’s rate for the transportation of any shipment, which rate, in part, independent upon the value of the shipment the shipper and all other parties having any interest in the shipment, agree that the limit of Forwarder’s liability shall be the lessor of:

(a) the amount of any damages actually sustained; or,

(b) whichever of the following is greater:

(1) the shipper’s declared value stated on the face hereof; or,

(2) $.50 per pound multiplied by the weight of the damaged or lost goods only. On International shipments, the liability rules under the Warsaw Convention shall apply, limiting liability in most cases to $9.07 per pound, unless higher valuation is declared and charges paid thereon.

8. The shipper and the consignee shall be liable, jointly and severally, (a) for all unpaid charges payable on account of a shipment pursuant to this Contract, and (b) to pay or Indemnify Forwarder for all claims, fines, penalties, damages, costs or other sums which may be incurred by Forwarder by reason of any violation of this Contract or any other default of the shipper or consignee or their agents.

9. In the event that payment is not received for services rendered within 30 days of date of invoice, Forwarder reserves the right to assess interest on the unpaid balance at one and one-half percent (1.5%) per month and all discounts will be null and void. In the event it becomes necessary to refer to a collections agency, or an attorney for collection, any amount which is past due, debtors agree to pay reasonable fees and court costs.

10. Forwarder shall have a lien on the shipment for all sums due and payable to the Forwarder.

11. In the event of the failure or inability of the consignee to take delivery of the shipment, Forwarder will notify shipper in writing at the address shown on the airbill or bill of lading and request disposition instructions. If the shipper fails to provide disposition instructions within 30 days after the date of Forwarder’s notice, Forwarder will return the shipment to the shipper at the shipper’s expense. If the shipper fails to accept delivery of a shipment thus returned, Forwarder upon 30 days written notice to the shipper may dispose of the shipment at public or private sale and pay out of proceeds to satisfy the transportation charges owing on the shipment. Any sums collected by Forwarder in excess of such transportation charges will be paid to the shipper. No sale or disposal pursuant to this rule will discharge any liability or lien to any greater extent than the proceeds thereof. The shipper and the consignee shall remain liable, jointly and severally, for any deficiency in the amounts owed to Forwarder.

12. Forwarder will exercise due diligence in routing shipment. In the absence of specific contrary instructions by the shipper on the airbill or bill of lading, Forwarder may divert any shipment to surface transportation in order to expedite its movement. Regardless of the method of transportation employed, the Forwarder’s airfreight charges from origin to destination will apply.

13. Claims for loss or damage discovered by the consignee after delivery and after a clear receipt has been given to Forwarder must be reported in writing to Forwarder within 7 days after delivery of the shipment, with privilege to Forwarder to inspect the shipment, and its container(s) and packing material within 15 days after receipt of such notice.

14. Claims for loss or damage must be made in writing within a period of 180 days after the date of acceptance of the shipment by the Forwarder. On shipments to Puerto Rico and Canada, claims must be made within 120 days.

15. No claims with respect to a shipment, any part of which is received by the consignee, will be entertained until all transportation charges have been paid.

16. Claims for overcharges or duplicate billings must be made in writing within a period of 180 days after the date of acceptance of shipment by the Forwarder.

17. Forwarder shall not be liable in any action unless a claim has been filed and such action is brought within 1 year after the date written notice is given to the claimant that Forwarder’s has disallowed the claim in full or in part.

18. International air carriage is subject to the rules relating to the liability established by the Convention for the Unification of Certain Rules relating to International Carriage by Air, at Warsaw, October 12, 1929.

19. To the extent that is not governed by Federal law, this Contract and the tariffs incorporated by reference shall be construed and the performance of the transportation hereunder shall be determined in accordance with the laws of the State in which the shipment is accepted by the Forwarder. If any provision of this Contract including tariffs incorporated by reference is determined to be invalid or unenforceable, the remainder of this Contract shall not be affected thereby.

20. Forwarder acts as self-insurer for liability amounts below $500.00 and maintains insurance liability for amounts in excess thereof.

21. Forwarder liability will be limited to $500.00 on all shipments in which next flight out service has been requested.

22. Maximum Forwarder liability shall be limited to $25,000 per shipment. All shipments valued over $25,000.00 require an authorization number. Failure to do so will void all declared value. Excess coverage is available for shippers who require Forwarder liability in excess of $25,000 per shipment. Please contact Forwarder if you are interested in excess coverage

23. No agent, servant, or representative of Forwarder has authority to alter, modify, or waive any provision of this contract, nor provisions of tariffs or classifications, which govern it.

24. For C.O.D. shipments, the amount of the C.O.D. must be inserted in the C.O.D. portion of the Ceres freight bill. Forwarder will under no circumstances be responsible for the form of payment by consignee unless specifically requested otherwise, in writing, by shipper. Forwarder will not be liable for any fraudulent or apparent certification of check. Applicable charges for handling a C.O.D. shipment will be billed