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Terms and Conditions

SECTION 1 – DEFINITIONS

As used in this Agreement the following terms have the following meanings:

(a) LOT. Unit or units of GOODS which are separately identified by the COMPANY.

(b) ADVANCE. All sums due or claimed to be due to COMPANY from STORER or others relating to the GOODS regardless of the source, whether liquidated or not, including but not limited to loans, disbursements, charges made for or on account of STORER or GOODS, necessary for preservation of GOODS or reasonably incurred in their sale pur­suant to law.

(c) GOODS. The personal property and/or any portion thereof which is described herein and/or which COMPANY has agreed to receive and/or store pursuant to this Agreement.

SECTION 2 – TENDER FOR STORAGE

(a) All GOODS for storage shall be delivered at the Warehouse properly marked and packed for handling.

(b) STORER shall furnish, at or prior to such delivery, a manifest showing marks, brands or sizes to be kept and account­ed for separately and the class of storage desired. Otherwise, the GOODS may be stored in bulk or assorted lots in freez­er, cooler or general storage at the discretion of COMPANY and charges for such storage will be made at the applica­ble storage rate.

(c) Receipt and delivery of all or any units of a LOT shall be made without subsequent sorting except by special arrange­ment and subject to a charge.

(d) COMPANY shall store and deliver GOODS only in the packages in which they are originally received unless other­wise agreed to in writing.

(e) Unless STORER shall have given, at or prior to delivery of the GOODS, written instructions to the contrary, COM­PANY, in its discretion, may commingle and store in bulk different lots of fungible GOODS, whether or not owned by the same STORER.

(f) COMPANY shall not be responsible for segregating GOODS by production code date unless specifically agreed to in writing.

(g) STORER will provide COMPANY with accurate and complete information concerning the GOODS sufficient to allow COMPANY to comply with all laws and regulations concerning storage, handling and transportation of the GOODS and will indemnify and hold COMPANY harmless from all loss, cost, penalty and expense (including without limitation, reasonable attorneys’ fees) as a result of STORER’s failure to do so.

(h) COMPANY may refuse to accept any goods for storage.  Before tendering goods that require specialized handling or which are dangerous or hazardous, STORER shall identify such goods and special handling requirements to COMPANY in writing and COMPANY may decline to store such goods.  STORER is solely responsible for providing complete and accurate handling and storage instructions for any nonconforming GOODS, including any applicable safety procedures.  If COMPANY accepts any such nonconforming goods for storage, STORER agrees to rates and charges as may be assigned and invoiced by COMPANY as well as all terms and conditions of this Agreement.

(i) For all GOODS shipped to the Warehouse, STORER shall ensure that the bill of lading or other contract of carriage as well as all declarations to government regulatory agencies (i) identify STORER as the named consignee, in care of COMPANY, and (ii) do not identify COMPANY as the consignee or shipper.  If any GOODS are shipped to the Warehouse naming COMPANY as named consignee on the transportation contract, STORER shall promptly notify the carrier in writing that COMPANY is (i) the “in care of party” only and (ii) does not have any beneficial title or interest in the GOODS.  COMPANY may refuse to accept any GOODS tendered for storage in violation of this provision, and shall not be liable for any loss or damage to, or mis-consignment of, such GOODS.  Whether COMPANY accepts or refuses goods shipped in violation of this Section 2, STORER agrees to indemnify and hold COMPANY harmless from all claims for transportation, storage, handling, and other charges relating to such GOODS, including surcharges, undercharges, rail demurrage, truck/intermodal detention, and other charges of any nature whatsoever.  STORER further agrees to indemnify, defend, and hold COMPANY harmless from any costs, liabilities, actions, penalties, or expenses of any kind associated with the improper declaration of COMPANY as consignee.

SECTION 3 – TERMINATION OF STORAGE

(a) COMPANY may, upon written notice, as required by law, require the removal of the GOODS, or any portion there­of, from the Warehouse upon the payment of all charges attributable to said GOODS within a stated period, not less than 30 days after such notification. If said GOODS are not so removed, COMPANY may sell them as provided by law and shall be entitled to exercise any other rights it has under the law with respect to said GOODS.

(b) If, in the opinion of COMPANY, GOODS may be about to deteriorate or decline in value to less than the amount of COMPANY’s lien thereon, or may constitute a hazard to other property or to the Warehouse or persons, the GOODS may be removed or disposed of by COMPANY as permitted by law. All charges related to said removal shall be paid by STORER.

SECTION 4 – STORAGE LOCATION

(a) The GOODS shall be stored at COMPANY’s discretion at any one or more buildings at COMPANY’s Warehouse complex. The identification of any specific location within COMPANY’s Warehouse complex does not guarantee that the GOODS shall be stored therein.

(b) COMPANY may, at any time, at its expense, and without notice to STORER, remove any GOODS from any room or area of the Warehouse complex to any other room or area thereof.

(c) Upon ten (10) days written notice to STORER, COMPANY may, at its expense, remove the GOODS to any other warehouse.

SECTION 5 – STORAGE CHARGES

(a) Storage charges commence upon the date that COMPANY accepts custody of the GOODS, regard­less of unloading date or date on which any warehouse receipt is issued. Charges shall be computed separately for each LOT on the following bases:

          (i) The first storage month shall commence upon the date of receipt and, unless initial rates specify otherwise, extend for a period of thirty (30) days thereafter.   A full month’s storage charge will apply on receipt of GOODS, unless initial rates specify otherwise, and any additional monthly storage charge shall apply to each successive storage month on all GOODS then remaining in storage.

          (ii) Such other periodic basis as COMPANY may designate from time to time in writing.

(b) Charges shall be applicable as set forth in the COMPANY’s tariff, except as may be specifically modified by any appli­cable rate quotation or other document issued by COMPANY to STORER.

(c) Unless COMPANY specifies otherwise all storage charges are due and payable on the first day of storage for the ini­tial storage period and thereafter on the first day of each successive storage period.

(d) Rates quoted by weight will, unless otherwise specified, be computed on gross weight and 2,000 pounds shall constitute a ton.

SECTION 6 – HANDLING CHARGES

(a) Unless otherwise specified or elected by COMPANY, handling charges cover only the ordinary labor and duties inci­dental to receiving and delivering unitized GOODS on pallets at the Warehouse dock during normal Warehouse hours but do not include loading and unloading of cars, trailers, vehicles or vessels. COMPANY has no duty or responsibility in regard to such unloading or loading, except as pursuant to prior written agreement by COMPANY. Handling charges will be billed with the storage for the first storage period and thereafter as incurred.

(b) Unless otherwise specified, a charge in addition to the regular handling charges will be made for any work performed by COMPANY other than specified in Section 6(a) at rates which are in effect from time to time, a copy of which rates are available upon request. Any receiving, delivering or handling of GOODS outside of normal Warehouse hours shall be subject to an additional charge.

(c) When GOODS are ordered out in quantities less than in which received, COMPANY may make an additional charge for each order or each item of an order.

(d) Delivery by COMPANY of less than all units of any LOT or of less than all the fungible GOODS stored for STORER shall be made without subsequent sorting except by special arrangement and subject to an additional charge.

SECTION 7 – U.S. CUSTOMS BONDS

A charge in addition to the rates set forth in this Agreement shall accrue for Goods subject to a U.S. Customs bond.  Where a warehouse receipt covers such Goods, COMPANY will have no liability for Goods seized or removed by U.S. Customs.

SECTION 8 – TECHNOLOGY CHARGES

All technology charged to cover the ordinary labor involved in design, scoping, customizing, or developing integrations or connections are due and payable whether Storage or the Services are implemented or initiated unless otherwise agree to in writing.

SECTION 9 – TRANSFER OF TITLE; DELIVERY

(a) Instructions by STORER to transfer GOODS to the account of another are not effective until accept­ed by COMPANY. Charges will be made for each such transfer and for any re-handling of GOODS deemed by COM­PANY to be required thereby. COMPANY reserves the right not to deliver or transfer GOODS to or for the account of others except upon receipt of written instructions properly signed by STORER.

(b) No GOODS shall be delivered or transferred except upon receipt by the COMPANY of complete written instructions (including lot number and size and style of packages) properly signed by STORER. When no negotiable receipt is out­standing, COMPANY may, at its sole discretion, accept telephone delivery instructions, but such acceptance is and shall be only on the condition that the COMPANY assumes no liability and is held harmless for any loss or any error occasioned by or attrib­utable to its acceptance of said oral instructions and COMPANY may require that the oral order be confirmed in writing.

(c) COMPANY shall have a reasonable time to make delivery after GOODS are ordered out and shall have a minimum of ten (10) business days after receipt of a delivery order in which to locate any misplaced GOODS.

(d) If COMPANY has exercised reasonable care and is unable, due to causes beyond its control, to effect delivery before expiration of the current storage period, the GOODS will be subject to storage charges for each succeeding storage period.

(e) All instructions and requests for delivery of GOODS or transfer of title are received subject to satisfaction of all charges, liens and security interests of COMPANY with respect to any GOODS of STORER whether for accrued charges, ADVANCES or otherwise. Upon termination of the storage relationship for any reason, COMPANY may refuse to deliver the GOODS until it has been fully paid for all charges then due it, regardless of the payment terms.

(f) COMPANY may require, as a condition precedent to delivery or transfer of title, a statement from STORER holding COMPANY harmless from claims of others asserting rights to the GOODS. Nothing herein shall preclude COMPANY from exercising any other remedy available to it under the law to resolve conflicting claims to the GOODS. All costs, including attorney’s fees, incurred by COMPANY relating in any way to COMPANY’s activities referred to in SECTION 9 (f) shall be charged to STORER and shall, for purposes of Section 14 below, be considered “charges present or future with respect to such GOODS” and shall attach as a lien on STORER’s GOODS.

SECTION 10 – OTHER SERVICES AND CHARGES

(a) Other services rendered in the interest of STORER or the GOODS are chargeable to STORER. Such services may include, but are not limited to, the following: furnishing of special Warehouse space or material, repairing, coopering, sampling, weighing, re-piling, inspecting, compiling stock statements, making collections, furnishing revenue stamps, report­ing or recording marked weights or numbers, handling railroad expense bills, and handling shipments.

(b) All charges, including without limitation, ADVANCES, freight and other disbursements made on behalf of STORER, are due and payable upon the date of invoice. All charges not paid within 30 days from the due date are subject to an interest charge, from the date said charge became due until paid, at the lesser of 1.5% per month or the maximum amount allowed by law.

(c) STORER may, subject to insurance regulations and reasonable limitations, inspect the GOODS when accompanied by an employee of COMPANY whose time is chargeable to STORER.

(d) In the event of damage or threatened damage to the GOODS, STORER shall pay all reasonable and necessary costs of protecting and preserving the GOODS. When the costs of protecting and preserving stored property are attributable to more than one STORER, said costs shall be apportioned among all affected STORERS on a pro rata basis to be deter­mined by COMPANY

(e) COMPANY shall supply dunnage bracing and fastenings where it deems it appropriate on outbound shipments and the cost thereof is chargeable to STORER.

(f) Any additional costs incurred by COMPANY in unloading cars, trucks or other vehicles containing damaged GOODS are charge­able to STORER.

(g) COMPANY shall not be responsible for detention or demurrage charges or delays in loading or unloading unless such detention or demurrage charge or delay was caused solely by COMPANY’s negligence.

(h) A charge in addition to regular storage and handling rates will be made for bonded storage.

(i) COMPANY may assess an additional charge when GOODS, designated for cooler or freezer storage, are received at tempera­tures more than 5 degrees Fahrenheit above the applicable storage room temperature; however, COMPANY shall not be responsible for blast freezing GOODS unless STORER specifically requests such services in writing.

(j) All storage, handling and other services may be subject to minimum charges.

(k) STORER agrees to pay COMPANY all costs and ADVANCES including reasonable attorney’s fees incurred by COMPANY in connection with the storage, handling and/or disposition of the GOODS, including without limitation, such costs, ADVANCES, and/or fees relating to lawsuits (including Bankruptcy proceedings) involving in any way said GOODS and/or STORER’s performance under this agreement. All such costs, ADVANCES, and fees, for purposes of SECTION 14 below, shall constitute “charges present or future with respect to such GOODS”.

(l) All charges are due and payable without any deduction or offset whatsoever.

SECTION 11 – LIABILITY AND LIMITATION OF DAMAGES

(a) COMPANY shall not be liable for any loss, damage or destruction to GOODS, however caused, unless such loss, dam­age or destruction resulted from the COMPANY’s failure to exercise such care in regard to the GOODS as a reasonably careful person would exercise under like circumstances. COMPANY is not liable for damage or destruction which could not have been avoided by the exercise of such care

(b) COMPANY and STORER agree that COMPANY’s duty of care referred to in Section 11(a) above does not extend to providing a sprinkler system or refrigerant leak detection system at the Warehouse complex or any portion thereof.

(c) Unless specifically agreed to in writing, COMPANY shall not be required to store GOODS in a humidity controlled environment or be responsible for tempering GOODS.

(d) If COMPANY is negligent in misshipping any GOODS, it shall pay, as STORER’S exclusive damages and subject to the limitation of liability contained in Section 11(e), reasonable domestic transportation charges to return only the misshipped GOODS to the Warehouse using the similar shipping service level as the original shipment contracted by COMPANY.

(e) IN THE EVENT OF LOSS, DAMAGE OR DESTRUCTION TO GOODS FOR WHICH COMPANY IS LEGALLY LIABLE, STORER DECLARES THAT COMPANY’S LIABILITY SHALL BE LIMITED TO THE LESS­ER OF THE FOLLOWING: (1) THE ACTUAL COST TO STORER OF REPLACING, OR REPRODUCING THE LOST, DAMAGED, AND/OR DESTROYED GOODS TOGETHER WITH TRANSPORTATION COSTS TO WAREHOUSE, (2) THE FAIR MARKET VALUE OF THE LOST, DAMAGED, AND/OR DESTROYED GOODS ON THE DATE STORER IS NOTIFIED OF SUCH LOSS, DAMAGE AND/OR DESTRUCTION, (3) FIFTY (50) TIMES THE MONTHLY STORAGE CHARGE APPLICABLE TO SUCH LOST, DAMAGED AND/OR DESTROYED GOODS, (4) $0.50 PER POUND FOR SAID LOST, DAMAGED, AND/OR DESTROYED GOODS, AND (5) $1.00 PER CUBIC FOOT FOR SAID LOST, DAMAGED, AND/OR DESTROYED GOODS; PROVIDED, HOWEVER, THAT WITHIN A REASONABLE TIME AFTER THE EFFECTIVE DATE, STORER MAY, UPON WRITTEN REQUEST INCREASE COMPANY’S LIABILITY ON PART OR ALL OF THE GOODS IN WHICH CASE AN INCREASED CHARGE WILL BE MADE BASED UPON SUCH INCREASED VALUATION; FURTHER PROVIDED THAT NO SUCH REQUEST SHALL BE VALID UNLESS MADE BEFORE LOSS, DAMAGE OR DESTRUCTION TO ANY PORTION OF THE GOODS HAS OCCURRED.

(f) COMPANY’s liability referred to in Sections 11(d) and 9(e) shall be STORER’s exclusive remedies against COMPANY for any claim or cause of action whatsoever relating to loss, damage and/or destruction of GOODS and shall apply to all claims including inventory shortage and mysterious disappearance claims, unless STORER proves by affirmative evidence that COMPANY converted the GOODS to its own use. STORER waives any rights to rely upon any presumption of conversion imposed by law. In no event shall STORER be entitled to incidental, special, punitive, or consequential dam­ages of any type or description.

(g) Goods are stored at STORER’s risk of loss or damage caused by acts of God (including, without limitation, epidemic and pandemic), seizure, or other acts of civil or military authority, insurrection, riot, strike, or enemies of the government; for loss or damage (including shrinkage in weights) resulting from inadequate packaging or wear and tear, or from any cause not originating in the Warehouse or from any cause beyond the COMPANY’s control. COMPANY shall not be responsible for loss or damage resulting from delay in delivery or receiving, sprinkler leakage, refrigerant leakage, fire, insect or rodent infestation, or any other cause, unless such damage results from COMPANY’s failure to exercise the degree of care required by Section 11(a) hereof.

SECTION 12 – ARBITRATION, NOTICE OF CLAIM AND CHOICE OF LAW

(a) In lieu of litigation, STORER and COMPANY agree to submit any dispute that arises out of or is in any way connected to this Agreement to binding arbitration administered by Judicial Arbitration and Mediation Service, Inc. and its Streamlined Arbitration Rules and Procedures then in force.  The parties shall be bound by the arbitration decision and a party receiving an award may enter judgement upon the same in any federal or state court of competent jurisdiction in the applicable jurisdiction.  The parties shall conduct arbitration in the county where the Warehouse is located, to the exclusion of other places.

(b) COMPANY shall not be liable for any claim of any type whatsoever including without limitation, any claim for loss or destruction of or damage to GOODS unless such claim is presented, in writing, within a reasonable time, not exceeding the earlier of (1) sixty (60) days after delivery of GOODS to STORER or (2) sixty (60) days after STORER learns or, in the exercise of reasonable care, should have learned of such loss, destruction or damage to the GOODS or the basis for any other claim against COMPANY.

(c) As a condition precedent to making any claim and/or filing any suit, STORER shall provide COMPANY with a rea­sonable opportunity to inspect the GOODS which are the basis of STORER’s claim.

(d) NO ARBITRATION OR OTHER ACTION MAY BE MAINTAINED BY STORER OR OTHERS AGAINST COM­PANY WITH RESPECT TO THE GOODS UNLESS A TIMELY WRITTEN CLAIM HAS BEEN MADE AS PRO­VIDED IN PARAGRAPH (b) OF THIS SECTION AND UNLESS STORER HAS PROVIDED COMPANY WITH A REASONABLE OPPORTUNITY TO INSPECT THE GOODS AS PROVIDED IN PARAGRAPH (c) OF THIS SECTION AND UNLESS SUCH ARBITRATION OR OTHER ACTION IS COMMENCED WITHIN THE EARLIER OF (1) NINE (9) MONTHS AFTER DELIVERY OF GOODS TO STORER OR (2) STORER LEARNS OR, IN THE EXERCISE OF REASONABLE CARE, SHOULD HAVE LEARNED OF THE LOSS OR DESTRUCTION OF OR DAMAGE TO THE GOODS OR THE BASIS FOR ANY OTHER CLAIM AGAINST COMPANY.

(e) All matters arising out of or in any way related to this Agreement are governed by and construed in accordance with the internal laws of the State in which the Warehouse is located, without giving effect to any choice or conflict of law provision or rule (whether of such State or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than those of the State in which the Warehouse is located.

SECTION 13 – INSURANCE

GOODS are not insured by COMPANY and the storage rates do not include insurance on the GOODS unless COM­PANY has expressly agreed, in writing, to obtain such insurance for the benefit of STORER.

SECTION 14 – LIEN

COMPANY shall have a lien against the GOODS and on the proceeds thereof for all charges for storage, handling, trans­portation (including detention, demurrage and terminal charges), insurance, labor and other charges present or future with respect to the GOODS, ADVANCES or loans by COMPANY in relation to the GOODS and for expenses necessary for preser­vation of the GOODS or reasonably incurred in their sale pursuant to law. COMPANY further claims a lien on the GOODS for all other such charges, ADVANCES and expenses in respect to any other property stored by STORER in any Warehouse owned or operated by COMPANY or its subsidiaries or affiliates wherever located and whenever deposited and without regard to whether said other property is then in storage.

SECTION 15 – WAIVER – SEVERABILITY

a) COMPANY’s failure to insist upon strict compliance with any provision of this Agreement shall not consti­tute a waiver or estoppel to later demand strict compliance thereof and shall not constitute a waiver or estoppel to insist upon strict compliance with all other provisions of this Agreement.

(b) In the event any section of this Agreement or part thereof shall be declared invalid, illegal or unenforce­able, the validity, legality and enforceability of the remaining sections and parts shall not, in any way, be affected or impaired thereby.

SECTION 16 – DATA

Notwithstanding anything to the contrary in this Agreement or any other agreement between the parties, COMPANY reserves the right to (i) use any STORER data to provide Storage or the Services to STORER, to improve existing Storage or Services or create new Services, or for COMPANY’s internal purposes, and (ii) compile and analyze its collective STORER date and to prepare reports, studies, analyses and other work product resulting from such compilation and analysis on an anonymous basis (collectively, the “Data Derivations”).  COMPANY shall have exclusive ownership rights to, and the exclusive right to use such DATA Derivations for any purpose; provided however that COMPANY shall not use STORER’s name in connection with such Data Derivations or otherwise distribute Data Derivations which are identifiable as STORER’s data without obtaining the prior consent of STORER.

SECTION 17 – AUTHORITY

STORER represents and warrants that it either (i) is the lawful owner of the GOODS which are not subject to any lien or security interest of others; or (ii) is the authorized agent of the lawful owner or any holder of a lien or security interest and has full power and authority to enter into this Agreement. STORER agrees to notify all parties acquiring any interest in the GOODS of the terms and conditions of this Agreement and to obtain, as a condition of granting such an interest, the agreement of such parties to be bound by the terms and conditions of this Agreement.

SECTION 18 – FORCE MAJEURE

COMPANY shall not be liable or responsible to STORER, nor be deemed to have defaulted or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement when and to the extent such failure or delay is caused by or results from act or circumstances beyond the reasonable control of COMPANY including, without limitation, act of God, flood, fire, earthquake, explosion, governmental actions, war, invasion or hostilities (whether war is declared or not), terrorist threats or act, riot or ether civil unrest, national emergency, revolution, insurrection, epidemic, pandemic, lockouts, strikes or other labor disputes (whether or not relating to either Party’s workforce), or restraint or delays affecting orders or inability or delay in obtaining supplies of adequate or suitable materials, materials or telecommunication breakdown or power outage.  If COMPANY has been unable to remove/deliver the GOODS due to any reason specified in this Section 18 such GOODS shall be subject to storage charges until such GOODS are actually removed/delivered.

SECTION 19 – NOTICES

All written notices required herein may be transmitted by any commercially reasonable means of communication and directed to COMPANY at the following address: 400 Gold Circle, Ste 300, Dakota Dunes, South Dakota 57049, Attn: Legal Department (Email: legal@verticalcold.com); and to STORER at its last known address. STORER is pre­sumed to have knowledge of the contents of all notices transmitted in accordance with this Section within five days of transmittal