Horizon Air Services, Inc.
Shipment Rules, Terms and Conditions

         By tendering a shipment of goods to Horizon Air Services, Inc. (“Horizon”) for transportation, the Shipper agrees to the following Rules, Terms and Conditions, which shall supersede the terms and conditions of any oral agreement, bill of lading or other shipment document prepared by Shipper:

1. Agreement to Terms.   By giving Horizon a shipment of goods to transport and deliver, Shipper agrees to these Rules, Terms and Conditions and those in Horizon’s current tariff or service guide, if any, which is available on request.  No one is authorized to change these Rules, Terms and Conditions on behalf of Horizon.

2. Governing Law and Liability of Horizon. 

         (a) Horizon shall be liable only under federal law, 49 U.S.C. §14706, for any loss, damage or delay to a shipment, except as hereinafter provided.  Horizon shall not be liable for any loss, damage or delay to a shipment caused by an Act of God, the public enemy, the authority of law, or the act or default of Shipper.  Horizon shall not be liable for loss, damage or delay which results: when the property is stopped and held in transit upon request of Shipper, owner or party entitled to make such request; or from a faulty or impassible highway; or by lack of capacity of a highway bridge or ferry; or from a defect or vice in the property; or from riots or strikes; or from improper packaging or packing or other act or omission on the part of Shipper or from an act of God.

(b) Horizon will not be liable for the transportation of money, bullion, bonds, jewelry, precious stones, valuable papers or other articles of extraordinary value or for damage to any article improperly packaged to withstand ordinary handling.  For purposes of these Rules, Terms and Conditions, “extraordinary value” means any article that is worth more than $100 (one hundred dollars) per pound.

3. Responsibility for Completing Bill of Lading.  Shipper is responsible for properly filling out a bill of lading or similar shipping document for the transportation of any shipment.  If Shipper fails to insert a declared value on a bill of lading or other shipping document prior to transportation, Horizon’s liability will be limited as stated in these Rules Terms and Conditions.

4. Responsibility for Packaging.   Shipper is responsible for adequately packaging and labeling its goods and properly filling out a bill of lading with shipping instructions.  If Shipper omits the number of packages and/or weight per package, Horizon’s billing will be based on its best estimate of the number of packages it received and/or an estimated “default” weight per package as determined by Horizon. In tendering the Shipment to Horizon for carriage, Shipper agrees and warrants that each shipment is properly packaged to protect the enclosed goods and to insure safe transportation with ordinary care and handling, and that each package is properly labeled and is in good order for transportation.  Shipper also warrants that the goods are properly described on the bill of lading.

5. Limitation of Liability of Carrier.  Horizon’s liability for loss, damage or delay to any shipment of goods shall not exceed $100.00 per shipment, unless a greater valuation is declared in writing by Shipper prior to shipment and specifically agreed to by Horizon in writing in advance of the shipment and Shipper pays an additional valuation charge of 50¢ (fifty cents) for each one hundred dollars of valuation declared.  As used herein, a “shipment” is defined as one quantity of goods given to Horizon at one point of origin for transportation to and delivery at one destination.  In case of the loss of a shipment with multiple pieces, the value of the shipment will be prorated over the number of pieces in determining Horizon’s liability.

6. Special Incidental or Consequential Damages.  Under no circumstances will Horizon be liable for any indirect, incidental, special or consequential damages of any kind, including but not limited to loss of income, use, profits or market (regardless of whether Horizon had knowledge that such damage(s) might be incurred), antique or sentimental value, lost business opportunity or the like, regardless of whether Horizon had knowledge that such damage(s) might be incurred.

7. Claims.

(a) As a condition precedent to recovery, claims for loss, damage or delay must be filed in writing with Horizon and must include sufficient information to identify the shipment, assert Horizon’s liability, and must set forth a specified or determinable amount of money claimed.

(b) Written claims for loss, damage or delay must be filed within nine (9) months after the delivery of the shipment, except that claims for failure to make delivery must be filed within nine (9) months after a reasonable time for delivery has elapsed.

(c) Lawsuits for loss, damage, injury or delay must be instituted against Horizon no later than two (2) years and one day from the day when written notice is given to the claimant that Horizon has disallowed the claim or any part or parts of the claim specified in the notice.  Where claims are not filed or suits are not instituted thereon in accordance with the foregoing provisions, Horizon shall not be liable, and such claims will not be paid.

(d) The claim-filing regulations of the Federal Motor Carrier Safety Administration at 49 C.F.R. §370, et seq. are hereby adopted and incorporated herein by reference and shall apply to all loss, damage or delay claims on any shipment transported by Horizon.

(e) Horizon shall have the full benefit of any insurance that may have been effected upon or on account of a shipment, so far as this shall not void the policies or contracts of insurance, PROVIDED, that Horizon, receiving the benefit of such insurance, will reimburse the claimant for the premium paid on the insurance policy or contract for the Shipment.

8. Consignee’s Refusal of Delivery; On-Hand Freight.

         (a) If the consignee refuses the shipment tendered for delivery by Horizon of if Horizon is unable to deliver the shipment, because of fault or mistake of the Shipper or consignee, Horizon’s liability shall become that of a warehouseman.  Horizon shall promptly attempt to provide notice, by telephonic or electronic communication as provided on the face of the bill of lading, if so indicated, to the Shipper or the identified party, if any, designated to receive notice on the Bill of Lading.  Storage charges shall start to accrue no sooner than the next business day following the attempted notification.  Storage may, at the Horizon’s option, be in any location that provides reasonable protection against loss or damage.  Horizon may place the shipment in public storage at the owner’s expense and without liability to Horizon.

(b) If Horizon does not receive disposition instructions within 48 hours of the time of Horizon’s attempted first notification, Horizon will attempt to issue a second and final notification.  Such notice shall advise that if Horizon does not receive disposition instructions within 10 days of that notification, Horizon may offer the shipment for sale at a public auction and Horizon has the right to offer the shipment for sale.  The proceeds of sale will be applied first to Horizon’s invoice for transportation, storage and other lawful charges. Shipper or owner will be responsible for the balance of charges not covered by the sale of the goods.  If there is a balance remaining after all charges and expenses are paid, such balance will be paid to the Shipper or owner of the property sold hereunder upon claim and proof of ownership.

(c) Where Horizon has reasonably attempted to follow the procedures set forth in subsections 8(a) and (b) above and the procedure provided in this section is not possible, nothing in this section shall be construed to abridge the right of Horizon, at its option, to sell the property under such circumstances and in such manner as may be authorized by law. When perishable goods cannot be delivered and disposition is not given within a reasonable time, Horizon may dispose of the property so as to minimize damage and maximize salvage value.

(d) Where Horizon is directed by Shipper or consignee to unload or deliver property at a particular location where Shipper, consignee or the agent of either is not regularly located, the risk after unloading or delivery shall not be that of Horizon.

9. Hazardous Goods – Shipper’s Duties.  Every party, whether principal or agent, who ships hazardous or dangerous goods, without previous full written disclosure to Horizon of their nature, shall be liable for and indemnify Horizon against all loss or damage caused by such goods.  Such goods may be warehoused at owner’s risk and expense or destroyed without compensation.

10. Payment of Freight Charges.

         (a) Shipper or consignee shall be liable for the freight and other lawful charges accruing on the Shipment, as billed or corrected, except that collect shipments may move without recourse to Shipper when Shipper so stipulates by signature or endorsement in the space provided on the Bill of Lading.  Nevertheless, Shipper shall remain liable for transportation charges where there has been an erroneous determination of the freight charges assessed based upon incomplete or incorrect information provided by Shipper.

(b) Nothing in these Terms and Conditions shall limit the right of Horizon to require the prepayment or guarantee of the charges at the time of shipment or prior to delivery.  If the description of articles or other information on the bill of lading is found to be incorrect or incomplete, the freight charges must be paid based upon the articles actually shipped.

11.  Waiver of Subrogation and Indemnification.  Shipper understands and agrees that Horizon does not sell insurance and that Horizon’s rates do not include insurance or other compensation for loss, damage or delay other than as expressly provided herein and limited hereby.  Accordingly, Shipper agrees that in the event it desires coverage for any loss, it will obtain its own insurance, and that such insurance will contain a waiver of subrogation provision waiving any subrogation rights for and on behalf of such insurance company.  In the event Shipper fails to obtain a waiver of subrogation, Shipper, at its expense, will defend, indemnify and hold harmless Horizon and any other carrier(s) or broker(s) retained by it with respect to claims made by Shipper or any third parties acting as subrogees of Shipper.

12. Miscellaneous.

(a)  In the event Horizon transports or handles a shipment having a prior or subsequent movement by air or in international or foreign commerce, Horizon’s liability nonetheless shall be governed and limited by the Rules, Terms and Conditions as stated herein.  No other liability provisions shall apply under any circumstances to any services provided by Horizon.

(b)  Receipt by the Consignee of a shipment without written notation of damage on the delivery receipt shall be prima facie evidence that Horizon delivered the shipment in good condition.

13. Company Policy for Labeling of Cargo. For insurance purposes labeling of all cargo is the responsibility of the forwarder or a representative of the Forwarder. If requested Horizon Air Services will act as a representative on your behalf and will label cargo for no additional cost, however, we will not be able to assume liability for misrouted cargo under any circumstances. Horizon Air Services will supply warehouse control numbers assigned to each shipment therefore making it easy to identify and locate cargo for labeling and transfer.

As your cartage and handling agent we pride ourselves on the service level we provide and we thank you for your continued support and understanding of this matter.