PUMP PACKAGE #1

· Two (2) - 729 GPM @ 6548 TDH Bingham 3X6X9C-MSD, 8-stage @ 5800 RPM
· Carbon Steel Case, Xylan Coated / Duplex Impellers
· 70% efficiency 1822 BHP @ 1.023 SP. GR. (4500 PSIG Hydro)
· Western or Lufkin or equal 2.0: 1 or 4.0: 1 ratio gearbox
· 2250 HP electric motor @ 2960 RPM or 1470 RPM
· WP-II 3.3 @ 50 cycles packaged

Price Estimate Net Each Pump Package        …$524,000.00.
Delivery:     12 week ARO, FOB Houston, Texas

WARRANTY

Products manufactured by the Seller are warranted free from defects in materials and workmanship for 12 months from start-up not to exceed 18 months from date of shipment.  Equipment and accessories manufactured by other than Seller are warranted only to the extent that the Manufacturer warranted them to the Seller. Seller's obligation is limited to repair or replacement, F.O.B.  Seller's or Manufacturer's plant or designated repair center, when examination of such product shall disclose defect to Seller's satisfaction.  This warranty does not apply to any products that have been disassembled, repaired or altered without the Seller's specific approval or subjected to misuse, abuse or misapplication.  Any claim resulting from failure of other than certified Manufacturer's components will void any and all obligations and warranty.  All warranties of merchantability and fitness for a particular purpose, whether express or implied, are hereby disclaimed and excluded from these terms of sales, unless made in writing by an officer of Seller.  Customer shall pay all cost incurred in connection with shipment to and from Houston plant for the part or parts to be repaired or replaced.  Repair work performed and replacement parts supplied under this warranty are warranted on the same terms and conditions for a period of twelve (12) months after repair or replacement.  In no event and under no circumstances shall Seller be liable for more than the cost of the merchandise sold. 

LIMITATION OF LIABILITY 

The Seller and/or Manufacturer shall not be liable in any event for loss of profits or revenue, interest, loss by reason of shutdown or non-operation, increased expenses of operation of the equipment, loss of use of power system, cost of purchased or replacement power, or claims of Purchaser or Customer or Purchaser for service interruption, or any special, indirect, incidental or consequential damages arising out of this contract of any breach thereof, or any defect in or failure of or malfunction of the apparatus furnished hereunder. 

TRANSPORTATION 

Unless otherwise contracted or specified, all deliveries are F.O.B. shipping point with any freight cost shown in our proposal to be considered as estimates.  Actual freight charges will be invoiced to the Purchaser.  Seller will accept no charges for loss or damage in transit but will assist Purchaser in preparing claims against the transportation company. 

CANCELLATIONS AND RETURNED GOODS 

Any order placed with Seller may be canceled by the Purchaser only upon payment of cancellation charges, which shall take into account expenses already incurred and commitments made by the Seller.  Unused goods of current Manufacturer may be returned for credit only with written consent of the Seller and with transportation charges prepaid.  All such returns shall be subject to a handling charge and reduces further by the amount of assemble, disassemble, and engineering charges and the amount of un-reusable material and original transportation charges.  Products which are obsolete or made to special order are not returnable. 

RISK OF LOSS, SECURITY 

The Purchaser shall bear all risk of loss of or damage to the equipment after delivery to transportation facility at shipping point.  Purchaser agrees that Seller shall retain a security interest in the equipment until the purchase price has been paid and Purchaser agrees to perform all acts necessary to perfect and assure Seller's security interest.  Such security interest shall not preclude enforcement of any other right of Seller. 

CONSTRUCTION 

The Purchase order to which this instrument is made a part is enforceable in Harris County, Texas and shall be construed under the laws of the State of Texas.

GENERAL 

No waiver, alteration, deletion or modification of or addition to any of these provisions hereof shall be binding in writing and signed by a duly authorized agent of the Seller.