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decree, directive or request. SECTRAN shall have no duty or obligation whatsoever to protest, refuse or challenge any such
<br />agency or authority
<br />(vii) Any claimed shortage or disappearance with respect to the contents, in whole or in part,
<br />of any sealed or locked shipment, container. pouch or package.
<br />(viii) Any Loss exceeding the maximum liability amount per shipment as set forth in Exhibit
<br />"A" or $500,000 Dollars whichever is less.
<br />(ix) Any Loss resulting from a failure to furnish service where such is prevented by war, riot,
<br />civil unrest, natural disaster, tire, man-made disaster, road/highway closure, act of God, strikes, labor disturbance, lockout,
<br />epidemic, power failures. power surges_ national, state, county or local emergencies or any other condition, event or circumstance
<br />SECTRAN determines to be commercially undesirable or which may impair or impede the health, safety or welfare of
<br />SECTRAN'S employees. CUSTOMER'S employees, third parties, the public or the cargo within SECTRAN'S control.
<br />(x) Any breakage, damage to, crack disfigurement or discoloration of any statuary, marble,
<br />glassware, bric-a-brac, porcelain, artistic or any similar fragile item or any part thereof.
<br />(xi) Any omission by SECTRAN to accept any tender of PROPERTY, to provide service or
<br />to provide timely service as scheduled at any location or any Loss resulting from a delayed or untimely delivery of PROPERTY
<br />to designated party
<br />INSURANCE.
<br />7 1 SECTRAN shall obtain and maintain at Its own expense, at all times during the term of this
<br />.Agreement, insurance in such amounts and against such risks as shall adequately cover the liability of SEC"I'RAN assumed under
<br />this Agreement. SECTRAN shall secure written acknowledgment from all such insurers of their obligation to notify
<br />CUSTOMER in writing, of any lapse, cancellation or of the termination of such insurance coverage, at least thirty (30) days prior
<br />to such lapse, cancellation or termination. SECTRAN shall provide to CUSTOMER a certificate of insurance showing this
<br />amount, insurance carrier, naming CUSTOMER as a loss payee and containing the notification of termination set forth above.
<br />8. ARBITRATION.
<br />'Ihe parties agree to submit any dispute arising hereunder or relating to this Agreement to binding arbitration.
<br />As a condition precedent to arbitrating any dispute, the aggrieved party shall first submit to the other parry a detailed demand
<br />setting forth all known or reasonably believed facts. dates, involved persons, witnesses, calculation of losses, damages and all
<br />other pertinent facts along with all available supporting or corroborating documentation. Within thirty 130) days of receiving
<br />such demand, the other Party shall, in a like manner and like form, respond thereto. Should the parties not resolve the dispute,
<br />each agrees that the claim or controversy (regardless of nature) shall be submitted to arbitration. Arbitration shall be binding and
<br />the award final. The American Arbitration Association rules respecting commercial disputes shall govern the proceedings.
<br />However, this Agreement shall be interpreted pursuant to California contract law. The proceedings shall be forumed in Los
<br />Angeles County in the State of California. The arbitrator shall be mutually chosen by the parties from a panel of qualified
<br />persons knowledgeable in the field of commercial disputes and such person shall be a current or former California,jurist. The
<br />parties shall equally share arbitration costs and fees during the resolution process but such fees and costs shall be reimbursed to
<br />the prevailing party The prevailing party shall be entitled to its reasonable attorneys' fees, legat costs, arbitration fees,
<br />investigative costs and photocopying costs incurred in the court of arbitration or litigation to include appeal. The parties waive
<br />all rights to request or to recover in any action punitive damages. exemplary or treble damages, loss of business income, loss of
<br />good will as well as incidental and consequential damages as such are subject to speculation, conjecture and are costly to prove to
<br />the requisite standard of proof It is agreed without any reservation whatsoever that any arbitration, action, suite or proceeding
<br />should be commenced within twelve (12) months of the date of Loss. The date of Loss governs this 12 month limitation period
<br />not any projected date of discovery. Notwithstanding the above, it is hereby acknowledged and agreed to by the parties hereto
<br />that no Arbitration Award in favor of CUSTOMER shall exceed the limitation of liability as described in Provision 5 hereof.
<br />HOLD HARMLESS.
<br />Subject to the limitation of liability as herein described, SECTRAN shall hold CUSTOMER harmless and
<br />indemnify CUSTOMER Cor any liability, loss, costs. expenses and damages from and against and shall indemnity CUSTOMER
<br />the other for any liability, loss, costs, expenses or damages howsoever caused by reason of injury (whether to body, property or
<br />personal or business character reputation) sustained by any person or to any person or to property by reason of any act, neglect,
<br />default or omission of it or any of it's agents, employees or other representatives, and it shall pay all sums to be paid or
<br />discharged in case of any action or any such damages or injuries. If CUSTOMER. is sued in any court for damages by reason of
<br />any of the acts of the other party referred to in this Paragraph 9 SECTRAN shall defend said action (or cause same to be
<br />defended) at its own expense and shall pay and discharge any judgment that may be rendered in any such action; if such other
<br />party fails or neglects to so defend in said action, CUSTOMER may defend the same and any expense, including reasonable
<br />attorney's fees, which it may pay or incur in defending said action and the amount of any judgment which It may be required to
<br />pay shall be promptly reimbursed upon demand. Nothing herein is intended to nor shall it relieve either party from liability for
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