Effective June 06th, 2008

The following terms and conditions govern the transportation of goods by The ILS Company, LLC of Tucson, AZ (hereinafter “ILS”) and its customers tendering freight to ILS for transportation as a domestic or surface Freight Forwarder as described in 49 U.S.C. § 13102 (8) under FMCSA Docket No. FF004960, or as an Air Freight Forwarder, or as a licensed property broker as described in 49 U.S.C. § 13102(2) under FMCSA Docket No. MC740477.

1. Parties subject to Terms and Conditions. These terms and conditions shall be binding on all parties to this bill of lading or waybill and all other parties having an interest in the goods being transported.

2. ILS’ obligations. ILS agrees to arrange, as a domestic freight forwarder, or as an air freight forwarder, for the transportation of shippers’ goods, in the same apparent condition of external packaging as received at origin, (contents and condition of contents of packaging unknown to ILS) and in the same count as noted on the front of the bill of lading or air waybill. If the carrier’s driver is not permitted to count the number of pieces tendered in a shipment during loading, neither ILS nor the carrier shall be liable for shortages alleged to have been recorded at destination at the time of delivery or thereafter.

3. ILS’s selection of carriers. ILS shall use reasonable care in the selection of carriers to whom it entrusts shippers’ goods for transportation. ILS, as an independent contractor, shall not be liable for any damage to property, personal injuries or loss of life caused by the acts or omissions of its carriers, their agents or sub-contractors.

4. Shippers’ and consignees’ obligations . (a).Shipper agrees to properly describe, label, placard and package the goods sufficiently to withstand the normal rigors of transportation from and to the points designated in this bill of lading, and in full compliance with government regulations. (b) Shipper certifies that all goods are in compliance with Federal, State and Local laws, regulations and ordinances. (c) Shipper and consignee shall be jointly and severally liable for the freight charges incurred on goods tendered to ILS for transportation, which shall be paid to ILS promptly, but no later than ten (10) days of delivery of said goods. If not paid within ten (10) days, a late charge of ½ of 1% per month, or the highest rate of interest allowed by law, whichever is less, of all outstanding charges of any kind shall be assessed and paid by customer and/or consignees. (d) Shipper and consignee agree to pay all freight charges before filing a claim, and agree not to offset pending loss or damage claims against freight charges owed to ILS. (e) Consignee agrees to notify ILS immediately of any loss or damage, and if damaged, to preserve the packaging and interior packaging or protective devices used in said packaging for carrier’s inspection. (f) Shipper and consignee agree to mitigate any damage to the best of their ability and to deduct from any claim for which ILS is legally liable, any salvage value on damaged goods. (g) Shipper and consignee agree not to reject shipments solely for the reason that a seal is missing or may have been altered. Instead, consignee agrees to immediately report the condition of the seals and the vehicle to ILS and the shipper, hold the goods for ILS’s inspection of the goods for count and condition, and to report the results of said inspection to all parties concerned.

5. Liability and limitations. As a domestic freight forwarder, or as an air freight forwarder, it is understood that ILS is authorized to consolidate shipper’s goods with other shippers’ goods, and to select and contract with carriers and others as required, to transport, warehouse and/or deliver said goods to named consignees, with reasonable dispatch. ILS shall have sole discretion in transporting shipments via any mode of transportation unless expressly a shipper giving instructions in writing not to use a particular mode of transportation. ILS’s shall be liable for loss of or damage to shipper’s goods only while said goods are in ILS’s or its agents’ or sub-contractors’ possession and control in the United States, and only to the extent stated herein or to the extent governed by applicable laws and regulations. In any event, ILS’s liability as a domestic freight forwarder or air freight forwarder shall be limited to $.50 USD times the weight (in pounds, liability is based on actual weight and not dimensional weight when applies) for each article lost or damaged, subject to a maximum liability of $50,000 USD per shipment, unless a governing law or international treaty imposes a greater liability, in which event, said greater liability shall govern. No agent or servant of ILS may alter ILS’s liability as stated in this bill of lading or waybill.

ILS Customer releases and forever discharges The ILS Company, LLC (“ILS”), and its agents and assigns, including its U.S. Carrier(s), from any and all liability of whatsoever kind or nature arising out of any loss or damage to any and all cargo, property, machinery, or equipment is transiting in Mexico. The ILS Customer further agrees to hold The ILS Company, LLC, and its successors and assigns, harmless from any claims of any kind arising out of its shipment of cargo, property, machinery, or equipment on behalf of the Customer in Mexico. The Customer acknowledges their understanding that neither The ILS Company, LLC nor any Carriers(s) provides cargo liability insurance while in Mexico.

ILS recommends that its supplier purchase cargo insurance, which ILS will quote and provide upon request.

6. Declared values. In the event a shipper declares a higher value than ILS’s limitation of liability, Shipper shall pay $1.00 USD per $100 USD of value declared on the face of this bill of lading or waybill in excess of ILS’s liability limit, subject to a maximum declared value of $50,000 USD. ILS offers a Shipper’s Interest Insurance Policy that will provide protection for amounts in excess of ILS’s limitation of liability. Information on the terms and conditions, and applicable premiums are available from ILS. Shippers also have the option of purchasing cargo insurance coverage from an insurer of their choice.

7. Special or consequential damages. Under no circumstances shall ILS be liable for special, incidental or consequential damages, whether or not ILS had knowledge that such damages might be incurred, or for loss of profit or for loss of market value due to delay beyond reasonable dispatch.

8. Claims for loss and damage. All claims for loss or damage shall be filed with ILS promptly as soon as known to claimant, but no later than nine (9) months of delivery, or in the case of non-delivery, within nine (9) months of scheduled delivery. Claims must be made in writing, identify the shipment, state the amount sought by claimant, explain the nature of the loss and make a demand for payment. ILS will acknowledge all claims within 30 days, provide a claim number, investigate the claim and advise claimant of its position within 120 days. ILS shall not be liable for claims filed solely due to a missing or altered seal without evidence of actual damage as a result thereof.

9. Notice of concealed loss or damage. Claimants must immediately notify ILS of any and all concealed loss or damage claims, but in any event, no later than within 15 days of delivery. When filing claims when a clear delivery receipt has been signed by the consignee, claimant must offer proof that the loss or damage did not occur while the goods were in the consignee’s possession.

10. Suits. Actions at law must be instituted within two years and a day from ILS’s declination of any part of a claim. All actions against ILS shall be governed by the laws of Arizona and shall be filed in Tucson , AZ.

11. Overcharges and undercharges. Claims for overcharges must be filed by claimant within 180 days of presentation of a freight bill. Claims by ILS for undercharges must be filed within 180 days of presentation of the freight bill. Failure to file said claims shall extinguish the party’s right to recover the amounts sought. In the event a freight bill has not been presented to a shipper or consignee demanding payment, ILS shall have 18 months from delivery to institute suit for payment or its right to collect same shall be extinguished.

12. Independent contractor status. The parties hereto agree that ILS is an independent contractor in its relation to shipper, receiver and carriers performing the transportation descibed herein. Employees or agents of the carriers performing transportation hereunder shall not be deemed employees or agents of ILS under any circumstances, and ILS shall not be liable for the payment of wages, salaries, taxes or any other expenses relating to carriers’ employees or agents. ILS shall not be deemed to have the right to control the manner in which the performing carriers perform their transportation of the goods tendered by ILS to transport under the terms and conditions of this agreement. ILS shall only route the goods via qualified carriers that are properly insured and certified by federal or state regulatory bodies. ILS shall have no responsibility to select, instruct or supervise carriers’ drivers or to monitor their compliance with governing DOT or FMCSA regulations, those duties being the sole responsibility of the performing carriers.

13. Indemnification. Each party hereto agrees to defend, hold harmless and indemnify the other against all claims, lawsuits, demands, liability, costs and expenses, including reasonable attorney fees and court costs, resulting from any injury to or death of persons, or damages to property, relating to or arising from its own negligence and/or wilful misconduct in the performance of transportation under this bill of lading or waybill.

14. Liens. ILS shall have a lien on all goods in its possession to secure the payment of freight charges owed to it by shipper and/or consignee for the shipment covered by this bill of lading and all prior shipments, unless otherwise limited by applicable law. ILS may sell at public auction or private sale, upon ten (10) days notice to shipper that its goods will be offered for sale, and may apply the proceeds of such sale to the payment of amounts due ILS. Any surplus from such sales shall be remitted to shipper, but shipper and consignee shall remain liable for any deficiency in freight charges owed to ILS.

15. Venue and construction of terms and conditions. The terms and conditions of this bill of lading or waybill shall be construed in accordance with the laws of Arizona . No legal proceeding by a party hereto against ILS may be instiututed except in a court having jurisdiction over ILS in Tucson , AZ.

Revision Date: 02/28/2008

The ILS Company 2018 / All Rights Reserved.