Summit CFS, Inc. handles all shipments pursuant to the following Terms and Conditions of Service:

1. DEFINITIONS The term “Summit” means Summit CFS, Inc. The word "Shipper" shall include the person tendering goods to Summit for transport or storage and the person for whose account goods are being transported or stored. The word "Goods" shall include articles of every kind or description, including their packaging, containers, or other shipping units or materials, tendered to Summit for transportation and/or storage as identified on the face of any receipt, truck tag, bill of lading, warehouse receipt or other document provided to Summit. The word "Consignee" shall include the person named as the consignee on the face of a truck tag, bill of lading, warehouse receipt or other document, the owner of the Goods, and all other persons lawfully entitled to possession of the Goods (other than Summit). "Third Party" means the person identified as such on the face of any receipt, truck tag, bill of lading, warehouse receipt or other document as the party responsible for payment of Summit's charges.

2. SHIPPER/THIRD PARTY/CONSIGNEE WARRANTIES The Shipper, Third Party and Consignee warrant and represent that (a) the amount and description of any Goods tendered to Summit for transportation and/or storage as set forth on the face of any receipt, truck tag, bill of lading or other document provided to Summit is accurate, (b) the Goods have been properly packed, marked and secured to ensure safe transportation and/or storage with ordinary care, (c) any shipping container or unit not provided by Summit is physically suitable, sound and structurally adequate to contain and support the Goods, (d) the Goods have been packed in compliance with any applicable governmental laws or regulations which pertain to their transport and/or storage. Shipper, Third Party and Consignee jointly and severally agree to indemnify Summit and hold it harmless from any claims which may arise as a consequence of any breach of the foregoing representations and warranties, including, without limitation, claims for personal injury or property damage.

3. UNACCEPTABLE GOODS The following goods shall not be accepted for transport or storage, and Summit assumes no liability for loss or damage to the Goods in the event that such Goods are erroneously transported or stored by Summit: (i) Valuables, including (a) articles which have a value, whether declared or not, of more than $500 per pound, unless Summit has consented to transport or store such Goods in a separate writing; (ii) Gold, platinum or other precious metals or any products thereof; (iii) Paper money, coins, marketable securities, traveler's checks, stamps and bank cards or credit cards which are valid or in usable condition; (iv) Precious gems, including diamonds, rubies, emeralds, sapphires, opals, pearls (including cultured pearls), and ornaments and accessories made therefrom or incorporating such articles; (v) Animals; (vi) Human remains and ashes; (vii) Dangerous or hazardous articles, including, without limitation, explosives, gases, flammable liquids, or combustible solids, oxidants, poisons or substances which easily disseminate viruses, radioactive substances, corrosive substances, and other harmful materials; (viii) Any article with a declared value in excess of $1,000.00, unless an authorized agent of Summit agrees to special terms and conditions with the Shipper/Third Party/Consignee in a separate writing; and (ix) Other Goods which are deemed to be inappropriate for transport or storage by Summit.

4. SUMMIT'S TARIFFS The receipt, custody, transport, warehousing and delivery of the Goods described on the face a receipt, truck tag, bill of lading or other document provided to Summit are governed by this Agreement and by the terms and conditions of Summit's Tariffs in effect on the date the Goods are received by Summit, which Tariffs are incorporated herein by this reference. A copy of Summit's Tariffs are available for inspection and copying at Summit's offices, and will be provided upon request.

5. FREIGHT AND OTHER CHARGES

A. Liability for Freight and Other Charges/Right to Inspect. The Shipper and Third Party, jointly and severally, or the Consignee in the event of a freight collect shipment, agree to pay all freight, storage and other charges payable for shipment of the Goods described on the face of any truck tag, bill of lading, warehouse receipt or other document provided to Summit. If this is a freight collect shipment, Shipper and Third Party acknowledge and agree that Summit may decline to make delivery of this shipment unless and until all freight and other charges have been paid. Shipper, Consignee and Third Party acknowledge that the freight and other charges collected or determined to be due at the time of receipt by Summit have been established based upon their representations concerning the Goods to be transported and/or stored, and that additional charges may be due if the representations are later determined to be inaccurate. Summit is entitled, but shall have no obligation, to open any enclosed container or shipping unit to inspect the contents thereof to ascertain whether the description, amount, and/or value of the Goods described on a receipt or truck tag provided to Summit is accurate, and that Goods have been properly packed.

B. Summit's Lien. Summit shall have a lien on all Goods and documents delivered to Summit by the Shipper, Third Party or Consignee for all unpaid freight, storage and other charges which are payable on account of the transport and/or storage of Goods by the Shipper, Third Party or Consignee, including charges which are determined to be due upon inspection of the Goods.

C. Jurisdiction for Suit by Summit. Summit may file a suit for recovery of freight, storage or other charges owed under this Agreement, including amounts which may be due under paragraph 2, in a jurisdiction where the Goods were accepted for transport or storage, or in a jurisdiction where a Shipper/ Consignee/Third Party defendant resides or maintains its principal office, at Summit's option.

D. Attorneys' Fees and Costs. In the event that it becomes necessary to retain an attorney to collect freight, storage or other charges owed under this Agreement or to recover an amount which is due under paragraph 2, Summit shall be entitled to recover its attorneys' fees and costs in addition to the transportation, storage and/or other charges or amounts owed.

6. GENERAL PROVISIONS REGARDING TRANSPORTATION OF GOODS

A. Means of Transportation. Transportation of the Goods is subject to availability of suitable equipment and space therein. Summit shall have the right, without giving notice to or obtaining the consent of Shipper, Consignee or Third Party, to (i) substitute sub-carriers and/or a mode of transportation other than that described on the face of a truck tag or bill of lading or otherwise designated by the Shipper and (ii) deviate from the routing described on the face of a truck tag or bill of lading or otherwise designated by the Shipper.

B. Delay and Consequential Damages. The transportation of Goods is subject to inherent delays which cannot be controlled by Summit. Notwithstanding any oral or written agreement to the contrary, Summit does not guarantee that the Goods will arrive at the destination at any particular time, and Summit shall not be responsible for any damages resulting from delay, including consequential damages, unless the delay has been commercially unreasonable.

C. Right to Sell or Dispose of Unclaimed Goods. If the Goods are initially accepted for transport, and if the Goods are not claimed within forty-eight (48) hours after notice of arrival is given to the Consignee, Summit will hold the shipment as a Bailee, and not as a carrier. In such event, Summit shall have the right to sell the Goods at a public or private sale not less than thirty (30) days after having given written notice of its intention to do so to the Shipper. Summit shall have the right to reimburse itself for any unpaid storage, freight or other charges incurred in connection with the Goods from the proceeds of the sale, and to remit the balance to the Shipper.

7. AGREED VALUE AND LIMITATIONS ON SUMMIT'S LIABILITY

A. To secure a due proportion between the amount for which the Summit may be held liable and the freight, storage, and other charges which Summit charges for its services, Summit has established by its Tariffs and offered to Shipper/Third Party/Consignee alternative rates for transport or storage, namely (i) its regular, lower rate based upon the agreed-upon value described in the next paragraph, and (ii) a higher, ad valorem rate for Goods whose value is declared to be higher than the agreed-upon value.

Unless the Shipper declares a higher value in the space provided on the face hereof before shipment and pays the higher, ad valorem rate, Shipper elects to transport and/or store the Goods at the lower rate and agrees that, for the purpose of computing the liability of Summit for any loss or damage to or delay in delivery of the Goods, the value of the Goods shall be $.50 per pound or $500.00, whichever is less.

If the Shipper elects to declare a higher value for the Goods, it may do so on the face hereof, up to a maximum of $1,000.00, provided the higher, ad valorem rate specified in Summit's tariff is paid. Notwithstanding the fact that a higher value has been declared, Summit's liability shall not exceed $1,000.00 unless an authorized agent of the Summit has consented to the higher amount in a separate writing signed by the agent.

In no event shall Summit be liable for more than the value of the portion of the goods which have been lost, damaged or delayed.

B. Summit shall not be liable for any loss, damage or delay caused by an act of God, the public enemy, the authority of law, an act or default of the Shipper, the inherent nature or vice of the Goods, or compliance or non-compliance with any special delivery instructions. In no event shall Summit be liable for special or consequential damages of any kind or nature, or for economic losses other than the market value of the Goods at the point of destination.

C. The provisions of this paragraph apply both to the Summit and to any person or entity which is engaged to fulfill any duty owed by Summit under the terms any applicable contract.

INSURANCE MAY BE AVAILABLE TO COVER LOSSES FOR WHICH SUMMIT IS NOT LIABLE. PLEASE ASK SUMMIT, YOUR AGENT OR YOUR INSURER ABOUT AVAILABLE INSURANCE COVERAGE.

8. NOTICE OF LOSS OR DAMAGE/RETENTION OF GOODS AND PACKAGING FOR INSPECTION Notice of loss or damage to the Goods must be given in writing to the Summit (i) at the time of delivery with respect to loss or damage which is not concealed, (ii) within seven (7) days after delivery if loss of damage is concealed, or (iii) if the Goods are not delivered, within fourteen (14) days after the date upon which the Goods were expected to be delivered. The Notice of Loss or Damage must describe the general nature of any loss or damage and notify Summit where the Goods may be inspected. The Goods and all packaging shall be maintained for Summit's inspection for at least thirty (30) days after the date written Notice of Loss or Damage is sent to Summit. The claimant must also provide copies of the truck tag, bill of lading, warehouse receipt and any other documents which concern the damage or loss claimed upon request by Summit.

9. ARBITRATION To the extent permitted by law, Shipper, Consignee and Third Party hereby agree that, in the event that any dispute arises concerning the rights and/or responsibilities of the parties with respect to this transportation agreement, the dispute shall be submitted to arbitration before an arbitrator on a panel established by the Transportation Lawyer's Association. The initiation of an arbitration proceeding shall be considered a "suit" for the purposes of paragraphs 5.C. and 10 of this Agreement. Notwithstanding the foregoing, Summit may initiate a lawsuit to obtain pre-judgment attachment remedies; however, any such action shall be stayed pending submission of the underlying dispute to Arbitration unless both parties elect to proceed without Arbitration.

10. CONDITIONS FOR FILING SUIT AGAINST SUMMIT

A. Notice of Claim as a Condition Precedent. As a condition precedent to the filing of a suit against Summit for loss or damage to or delay in delivery of Goods, a Notice of Claim must be filed in writing with Summit within ninety days of (i) the date upon which the Goods were delivered, (ii) the date upon which the Goods were expected to be delivered, or (iii) the date upon which damage to or loss of the Goods is discovered, whichever is earlier. In cases covered by the Carmack Amendment, 49 U.S.C. § 14706, the Notice of Claim must be submitted within nine months of the foregoing dates. The Notice of Claim must include at least the following: (i) a description of the Goods which are the subject of the claim, (ii) the nature of the damage, loss or delay, and (iii) the amount of the claim. The claimant must also provide copies of the truck tag, bill of lading, warehouse receipt and any other documents which concern the damage or loss claimed upon request by Summit. As a condition precedent to the filing of a suit against Summit for overcharges or duplicate billings, Notice of Claim must be filed in writing with Summit within sixty (60) days after the date of delivery of the Goods to the Consignee.

B. TIME BAR Summit shall be relieved of all liability unless suit is brought in the proper forum within one year after the date the Goods (i) were delivered to the consignee or (ii) should have been delivered to the consignee. In cases covered by the Carmack Amendment, 49 U.S.C. § 14706, the action must be commenced within two years after a claim has been denied, in whole or in part.

C. JURISDICTION Any suit for loss or damage arising out of the transport or storage of Goods which are the subject of this Agreement must be filed in the County of San Mateo, California.

11. MODIFICATION OF THESE TERMS AND CONDITIONS These Terms and Conditions of Service may only be modified, altered or amended in a writing signed by Summit.

12. SEVERABILITY In the event any paragraph and/or portion of these Terms and Conditions is found to be invalid or unenforceable, the remaining portions of these Terms and Conditions shall remain in force and effect.

13. GOVERNING LAW These Terms and Conditions of Service and the relationship of the parties shall be governed by the laws of the State of California, except as pre-empted by federal law or treaties of the United States.

© Law Offices of John M. Daley (2001-2002)