Freight Forwarder Insurance Policy By Kiln Regional Underwriting Ltd. Syndicate 510 At LLOYDS.

TERMS AND CONDITIONS APPLICABLE TO FREIGHT SERVICES

SECTION A

A) COVERAGE - CARGO AND RELATED LIABILITIES

The Policy covers the legal and/or contractual liability of the Insured for the following:-

1.0 CARGO

Physical loss or damage to cargo whilst in transit or during storage in the normal course of transit.

1.1 Consequential Loss

Consequential Loss, including demurrage, arising out of and following liability under Clause 1.0 above Incurred by a cargo owner or cargo bailee, subject to a sub-limit of USD 250,000 any one incident tor Occurrence;

1.2 General Average

Cargo's proportion of general average, salvage or salvage charges

1.3 Duty

Duty forming part of a claim for physical loss or damage to cargo, other than duty under any from of Bond or guarantee.

1.4 Damage to Transport Equipment and other Cargo

Loss or damage to transport equipment operated by another party and/or cargo or property owned or Leased by another party, resulting from the mode and/or manner in which the cargo being transported Or stored during the normal course of transit by the Insured is secured and/or stowed, but subject to a Sub-limit of USD250,000 any one incident tor occurrence;

1.5 Temporary Storage

Loss or damage to cargo during Temporary Storage following rejection of cargo by consignee, or where The consignee does not take delivery, provided that Insurers are notified within a reasonable time of the Rejection or non-delivery as above

2.0 THE POLICY ALSO COVERS COST AND EXPENSE OF THE FOLLOWING:

2.1 Uncollected Cargo

The extra cost incurred by the Insured solely by reason of the failure of a consignee/cargo receiver to Collect cargo at designated place of delivery, subject to:

a) a limit of USD 25,000 in the aggregate in the Policy year,
b) 20% coinsurance on the amount recoverable under the Policy exceeding the deductible,
c) İn the event of sale of the cargo, proceeds of sale shall be split between the Insured and Insurers Respectively in the following proportions; Insured 20%/ Insurers 80%.

2.2 On-forwarding Costs

On-forwarding cargo to destination including, Temporary Storage, unloading, reloading and transfer of
Cargo to other Transport Equipment, consequent upon and following an accident to the Transport
Equipment being used for cargo transportation, but subject to a sub-limit of USD 250,000 any one
Incident or occurrence.

2.3 Debris

Removal, disposal and destruction of cargo debris from public road following an accident to Transport Equipment, but subject to a sub-limit of USD 250,000 any one incident or occurrence.

TERMS AND CONDITIONS APPLICABLE TO FREIGHT SERVICES

SECTION A

B) SPECIAL CONDITIONS AND EXCLUSIONS

1.0 CONDITIONS PRECEDENT TO THE LIABILITY OF INSURERS:

The following matters under Clause 1.0 are conditions precedent to the liability of Insurers:

1.1 Contract Conditions

The Insured shall contract under current FIATA terms and conditions, or under current ters and conditions Of a national forwarding association affiliated to FIATA or under General Conditions of Trade or Carriage That shall have been seen and approved by Insurers and confirmed by endorsement on the Policy.

1.2 Carriage by Sea

a) Where the Insured contract to carry by air and/or Bills of Lading are issued b yor on behalf of the Insured, such contracts and/or Bills of Lading shall include a Paramount Clause incorporating the Hague Visby Rules as enacted by the Carriage of Goods by Sea Act 1971, or equivalent national Legislation under the Hague Visby Rules (in the case of shipments to or from the United States, US COGSA);

b) Where cargo is agreed to be carried on deck it shall be carried (i) on specific terms expressed both on On the face and the reverse of the Bill of Lading exonerating the Insured from liability and stating Cargo is carried at shipper's risk, or (ii) on express terms that the Hague Visby Rules, as enacted by The Carriage of Goods by Sea Act 1971 or equivalent national legislation under the Hague Visby Rules (in the case of shipments to or from the United States, US COGSA) shall apply to carriage on deck;

1.3 Carriage by Air

Where the Insured contract to carry by air and/or an Air Waybill is issued by or on behalf of the insured, The Warsaw Convention as amended by the Montreal Protocol and any subsequent amendment must be Contractually incorporated and liability for transportation outside the period set out under the said Convention/Protocol shall be expressly limited to the same monetary limits under the Convention/Protocol (or less), unless a higher limit is imposed by local law;

1.4 Road Transport - Sub-contractor's Conditions of Carriage and Insurance

Where the Insured sub-contracts carriage of cargo wholly or partly by road (a) the sub-contractor shall Contract on terms and conditions no less wide than those of the Insured, except where such terms and Conditions are imposed by law or do not materially affect liability and/or amount of the claim for loss or Damage to cargo and.(b) the Insured shall take reasonable care to ensure that the sub-contractor has Valid and sufficient cargo liability insurance cover , save that where the Insured does not comply with This obligation a claim may be recoverable under the Errors and Omissions Additional Cover if effected Provided that the Insured has in operation reasonable procedures for checking insurance and the failure To verify the insurance cover has arisen as a result of an isolated negligent act error or omission of the Insured or its employees;

1.5 Road Transport - High Risk Cargo

Where the Insured carriers High Risk Cargo by road, the vehicle/trailer, shall:

a) whilst parked for rest breaks or for similar short stays during the day, remain at a recognized and
Designated area for road hauliers, securely locked with keys removed and all openings securely
Closed, with the driver in the immediate vicinity

b) whilst parked overnight, or during the day other than for rest breaks or for similar short stays, remain in a locked building or in a fully enclosed location remaining locked (apart from entry and exit of authorized vehicles) under constant surveillance, or remain in a recognized and designated parking area for road hauliers securely loked with keys removed and all openings securely closed and the driver in attendance at all times;
1.6 The Insured shall exercise due diligence to ensure that any location used for storage in the normal course Of transit, other than a location owned, leased or operated by the Insured which shall be subject to the Terms and conditions of the Ware housekeeper's Additional Cover, shall be suitable in all respects taking Into account the type, nature and value of the cargo.

2.0 HIGH RISK CARGO

High Risk Cargo is not covered under the Policy unless specifically disclosed to Insurers in writing and confirmed By endorsement on the Policy. Subject 7 (seven) clear days written notice to the Insured, Insurers may amend The list of High Risk Cargo.

3.0 EXCLUDED CARGO

The Policy excludes liability relating to Excluded Cargo.

4.0 EXCLUDED CONTRACT TERMS

The Policy excludes claims arising out of any oral or written contractual agreement:

a) to a shipment or delivery date or time; or
b) to a higher limit of liability or greater responsibility than under the Policy unless notified to and agreed by Insurers in advance or
c) to declared or agreed value.

5.0 INSURED'S PROPERTY

The Policy excludes claims in respect of property and/or cargo owned, leased or licensed by the Insured unless Specifically agreed by Insurers and endorsed on the Policy.

6.0 INSURED OPERATIONS

The Policy excludes claims in respect of any Operation not previously declared to Insurers and agreed by them To be covered, save that any Operation (not excluded under any term, condition or exclusion in this Policy) Which is reasonably ancillary to a declared and agreed Operation shall be covered under this Policy.

7.0 LIABILITY TO CUSTOMS

The Policy excludes claims by Customs, an similar Governmental or European Union authorities except where insured under the Errors and Omissions Extension.