CONDITIONS OF CONTRACT

In tendering the shipment described herein for carriage, Shipper agrees to these Conditions of Contract, which no agent or employee of the parties may alter and that this transportation document is NON-NEGOTIABLE and has been prepared by the Shipper, his agent, his employee, or on his behalf by the carrier. The Shipper certifies and represents to KOL that the information inserted and accepted on the face of this transportation document is complete and accurate. It is agreed among the parties involved that the conditions of carriage for this shipment are governed by the terms set forth herein, and which are hereby incorporated into this contract. Note: Shipper in this contract means the party from whom the shipment is received, the party who requested the shipment be transported by KOL, any party having an interest in the shipment, and a party who acts as an agent for any of the above. All charges applicable to a shipment are payable in cash at the time of acceptance in the case of a prepaid shipment or at the time of delivery in case of a collect shipment, unless carrier has extended credit.

SHIPPER WARRANTS that each package in this shipment is properly described on the transportation document, is properly marked and addressed, is packaged adequately to protect the enclosed goods to ensure safe transportation with ordinary care in handling and except as noted, is in good order and condition. KOL shall not be liable for damage/loss on any shipment not adequately packaged. Furthermore, KOL will not be liable for any damage/loss unless damages are notated on the delivery receipt at the time of delivery. NOTE: A shipment in which delivery is made in exchange for a clear delivery receipt shall be prima facie evidence of having received ordinary care in handling.

CARRIER'S LIMITATION OF LIABILITY. Carrier will be liable only for loss or damage that occurs to the shipment while it is in carrier's custody. Carrier's liability will never exceed the actual value of the part of the shipment that is lost or damaged, plus any of the transportation charges applicable to that part of the shipment. Moreover, unless at time of shipment the shipper declares on the face of this air waybill a greater value for the shipment and requests insurance and pays appropriate valuation charges, carrier's liability is further limited to the lesser of (a) $50.00 per shipment or (b) $.50 per pound multiplied by the weight in pounds of that part of the shipment that is lost or damaged, plus (c) the transportation charges applicable to that part of the shipment. Shipper also is informed through these conditions of contract that KOL, Inc. is not a self-insured carrier on any shipment other than local P&D where KOL provides its own equipment. Any requests for insurance and declared value in excess of $50.00 will be insured through third parties not affiliated with KOL, Inc. and not guaranteed by KOL., Inc. All claims will be filed with and through KOL, Inc. on behalf of the claimant and are subject to the rules and regulations of the third party(s) involved. Carrier is not liable for special or consequential damages of any kind. The above limitations also apply to international shipments unless the rules relating to liability established by the Warsaw Convention (the Convention for the Unification of Certain Rules Relating to International Carriage by Air, signed at Warsaw, Poland on October 2, 1929 or that Convention as amended at The Hague September 28, 1955) apply.

Unless each piece of the shipment has a Declared Value stated as well as insurance requested, and is specifically identified on the KOL transportation document at the time of the shipment and is so identified on the KOL transportation document as being lost, damaged, destroyed, or otherwise adversely affected at time of delivery, KOL shall be liable subject to tariff provision in effect at the time of shipment for the average declared value of the shipment multiplied by the packaged weight of the piece(s) adversely affected. The average declared value of the shipment shall be determined by dividing the total declared value of the shipment (only if insurance was requested and paid) by the total weight of the shipment. See 11.

Except as otherwise provided herein the Conditions of Contract, KOL has no obligation to commence or complete transportation within a certain time or according to any specific schedule, or to make connections with any other carrier, or for error in any statement of times of arrival or departure. In short, KOL does not guarantee pickup, transportation, or delivery by a stipulated date or a stipulated time, nor shall KOL be liable for any consequences of failure to do so.

At time of delivery, the CONSIGNEE MUST NOTE on the air waybill, any exceptions to the shipping containers that would indicate a discrepancy (shortage in the shipment, damage to the containers, or possible damage to the contents of the containers). NOTE: Such notations as "subject to inspection" and "subject to re-count" are NOT exceptions.

KOL SHALL NOT BE LIABLE IN ANY WAY OR EVENT FOR ANY SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO: LOSS OF PROFITS, INCOME, INTEREST UTILITY, OR LOSS OF MARKET, WHETHER OR NOT KOL HAD KNOWLEDGE THAT SUCH DAMAGES MIGHT BE INCURRED. KOL shall not be liable for loss, damage, or delay caused by acts of God, public authorities acting with actual or apparent authority, strikes, labor disputes, weather, mechanical failures, aircraft failure, civil commotions, acts of omission of customs or quarantine officials, the nature of the shipment or any defects thereof, public enemies, hazards incident to (a) state of war, acts of terrorism and (b) acts, defaults, or omission of the Shipper or Consignee for failure to observe the terms and conditions of contract contained herein including but not limited to , improper packaging, marking, transportation document information, inherent vice, and the rules relating to shipment not acceptable for transportation or shipments acceptable only under certain conditions outlines below.

All shipments are accepted for transportation subject to the availability of equipment of the size and type capable of handling the shipment.

If no service level is indicated on the transportation document the shipper accepts and understands that the freight may be moved and billed on a second business day level. Additional charges may apply. Furthermore, KOL will not be liable for any damages as expressed in ITEM 7.

Carrier's routing applies. KOL shall have the right to (1) substitute alternate carriers or other means of transportation and (2) select the routing or deviate from that shown on the face thereof.

Overcharge claims must be received IN WRITING within one year after date of acceptance of the shipment by KOL. All other claims (except perishables and concealed damages/loss) must be received IN WRITING within 48 hours. For damage claims, KOL must be notified of the damage within 7 days of delivery IN WRITING. Under all damage/loss claims, KOL, or its agent, must be allowed to make inspection of the shipment and its container(s) and packaging material(s) at the delivery location shown on this transportation document. No claims will be entertained until all transportation charges have been paid. Claims may not be deducted from transportation charges and no claims may be deducted from any charges owed KOL, in whole or in part.

Rates and charges for this shipment will be based on actual or dimensional weight, whichever is greater. Domestic Dimensional weight (in inches) is computed using the following equation applied per piece: (L X W X H)/194. Shipper acknowledges carrier's right to reweigh and dimensionalize shipment; the signed delivery receipt, with "reweighed: or "dimensions added" will be considered correct with precedence over weight or measurements indicated on shipper's copy. It is further acknowledged that the international dimensional weight factor is different than the domestic 194 factor. International dimensional weight factor is determined by the carrier handling the shipment and is subject to change.

Unless otherwise expressly provided in KOL's tariff, and subject to any conditions or restriction contained therein, the following articles will not be accepted for carriage: any shipment prohibited by law, hazardous materials, original works of art, antiques, bonds, coins of any kind, currency, furs, fur clothing, gems or stones (cut or uncut), industrial diamonds, gold or silver coined concentrates, jewelry(other than costume), money, pearls, precious materials, securities (negotiable), household goods, and/or personal effects when the total declared value of the shipment exceeds $500.00 or when the declared value exceeds $.50 per pound per piece, KOL shall not be liable for any loss damage, delay, liabilities, or penalties resulting from the transportation of materials.

The Shipper shall be primarily liable for all costs and expenses related to this shipment and for all costs incurred in either retuning this shipment to the Shipper or warehousing this shipment, pending its disposition.

C.O.D. Shipments. Goods received with Customer's or other person's instruction to "collect on Delivery" (C.O.D.) by drafts or otherwise, or to collect on any specific terms by the tie drafts or otherwise, are accepted by the Company only upon the express understanding that it will exercise reasonable care in the selection of a bank, correspondent, carrier or agent to whom it will send such item for Collection and the Company will not be responsible for any act, omission, default, suspension, insolvency or want of care, negligence or fault of such bank, correspondent, carrier or agent, nor for any delay in remittance lost in exchange, or during transmission, or while in the course of collection.

This shipment is subject to inspection by KOL. However, KOL is not obligated to perform such inspection.

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

The Shipper and the Consignee shall be liable jointly and severally for all unpaid charges payable on account of this shipment pursuant to this contract and to pay or indemnify KOL for claims, fines, penalties, damages, costs (storage, handling, reconsignemnt, return of freight to Shipper, etc.,) or other sums which may be incurred by KOL by reason of any violation of this contract or any other default of the Shipper or Consignee or their agents. KOL shall have a lien on any goods until such charges are paid. Should KOL bring legal action for the enforcement of this contract or collection of any sums due and payable under this contract, KOL shall be entitled to reasonable attorney's fees and costs. All invoices not paid in full within 30 days of invoice date will be subject to a charge of 2% per month of total invoice balance.

Shipper and Consignee shall hold KOL and its agent(s) harmless for loss/damage/delay which is a result of ancillary services including, but not limited to, local cartage, crating, uncrating, packing and unpacking, which are requested by the Shipper or Consignee and arranged by KOL as a customer service unless such services are actually performed by KOL. Such limitation of liability shall extend to the selection by KOL of the providers of the ancillary services. Ancillary services are those which are performed prior or subsequent to transportation and which may be billed directly by the provider of the service or by KOL. Providers of ancillary services are contractors for the Shipper or Consignee and are not agents for KOL. Local cartage is the movement of unpacked/uncrated freight locally. Note: Under no circumstances will the liability of KOL for loss/damage/delay which is a result of any ancillary services performed by KOL or its agents be grater than the liability contained in this contract.

Indemnification for Freight, Duties. In the event that a carrier, other person or any governmental agency makes a claim or institutes legal action against KOL for ocean or for other freight duties, fines, penalties, liquidated damages or other money due arising from a shipment of goods for the Customer, the Customer agrees to indemnify and hold harmless KOL for any amount KOL may be required to pay to such a carrier, other person or governmental agency together with reasonable expenses, including attorney's fees, incurred by KOL in connection with defending such claim or legal action and obtaining reimbursement from the Customer. The confiscation or detention of the goods by a governmental authority shall not affect or diminish the liability of the customer to KOL to pay all charges or other money due promptly or on demand.

This air waybill and the tariffs apply at all times when the shipment is being handled by or for the carrier, including pick-up and delivery and other ground or air services rendered by or for the carrier in connection with the shipment. The provision thereof will inure to the benefit of and be binding on the shipper and consignee and the carriers by whom transportation is undertaken, and to the benefit of any other person, firm, or corporation performing for the carrier pick-up, delivery or other ground service in connection with the shipment.