ALL KANDLE OILFIELD PRODUCTS ARE SOLD OR OTHERWISE FURNISHED IN ACCORDANCE WITH THESE GENERAL TERMS AND CONDITIONS.

KANDLE OILFIELD PRODUCTS, INC. (KOP) WARRANTS THE PRODUCTS SOLD BY IT TO BE FREE FROM DEFECTS IN MATERIAL AND WORKMANSHIP FOR A PERIOD OF (3) YEARS FROM DATE OF SHIPMENT FROM KOP. KOP WILL REPAIR OR REPLACE AT KOP'S OPTION, F.O.B. KOP LOCATION WHERE THE PRODUCTS WERE MANUFACTURED, ANY PRODUCTS WHICH KOP DETERMINES TO BE DEFECTIVE IN MATERIAL OR WORKMANSHIP, PROVIDED THAT KOP IS GIVEN PROMPT NOTICE IN WRITING OF ANY DEFECT; AND PROVIDED BUYER OR USER HAS KEPT SUCH PRODUCTS IN CONDITION WHERE KOP CAN EXAMINE SAME; AND PROVIDED NO MACHINING, WELDING, HEATING, OR OTHERWISE ALTERING OF ANY KIND IS DONE TO SAID PRODUCTS AFTER SAME ARE PERFORMED OR SHIPPED FROM KOP'S FACILITIES. IN NO EVENT SHALL KOP BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL , SPECIAL OR OTHER DAMAGES OF ANY NATURE. IT IS EXPRESSLY AGREED THAT THIS WARRANTY SHALL BE IN LIEU OF ANY OTHER WARRANTY, EXPRESSED OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY FOR MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE.

KOP DOES NOT WARRANT THAT ITS PRODUCTS MEET THE REQUIREMENTS OF ANY SAFETY CODE OF ANY STATE, MUNICIPALITY, OR OTHER JURISDICTION OR THAT THEY WILL PERFORM AS ANTICIPATED OR DESIRED BY BUYER OR USER AND/OR USER ASSUMES ALL RISK AND LIABILITY WHATSOEVER RESULTED FROM USE THEREOF, WHETHER USED SINGLY OR IN CONJUNCTION WITH OTHER EQUIPMENT.

PRODUCTS FURNISHED BY KOP BUT NOT MANUFACTURED BY KOP WILL CARRY ONLY THE WARRANTY OF THE MANUFACTURER OF SUCH PRODUCTS, IF ANY. KOP DOES NOT WARRANTY PRODUCTS NOT MANUFACTURED BY KOP.

KOP'S LIABILITY FOR ANY LOSS OR DAMAGE IN ANY WAY RESULTING TO BUYER/USER FROM ANY FAILURE OF A PRODUCT SHALL NOT EXCEED THE AMOUNT WHICH KOP RECEIVED FROM BUYER OR USER FOR THE PRODUCT FOUND TO BE DEFECTIVE. WHERE OTHER MANUFACTURERS PRODUCTS ARE USED IN KOP MANUFACTURED PRODUCTS PROVE DEFECTIVE, KOP'S LIABILITY SHALL EXIST ONLY TO THE EXTENT THAT KOP IS ABLE TO RECOVER FROM SUCH MANUFACTURERS OR SUPPLIERS FOR SAID DEFECTS.

KOP'S LIABILITY FOR DAMAGE TO OR LOSS OF PROPERTY OF BUYER OR OTHERS DURING PERFORMANCE OF WORK THEREON BY KOP OR WHILE IN KOP'S POSSESSION SHALL NOT EXCEED THE PRICE RECEIVED BY KOP FOR ITS WORK ON THE ARTICLE LOST OR DAMAGED.

KOP RETAINS THE RIGHT TO MAKE SUBSTITUTIONS AND MODIFICATIONS TO ITS PRODUCTS PROVIDING THAT SAID CHANGES DO NOT AFFECT THE PERFORMANCE OF THOSE ITEMS.

KOP RETAINS FOR ITSELF ALL PROPRIETARY RIGHTS IN AND TO ALL DESIGNS, ENGINEERING DETAILS AND DATA CONCERNING THE PRODUCTS SOLD BY IT.

ANY TAXES OR CHARGES WHICH KOP MAY BE REQUIRED TO PAY OR COLLECT UNDER ANY EXISTING OR FUTURE LAW UPON OR APPLICABLE TO THE SALE, PURCHASE, MANUFACTURE,

TRANSPORTATION, DELIVERY, STORAGE, USE OR CONSUMPTION OF THE PRODUCTS SHALL BE FOR THE ACCOUNT OF THE BUYER.

THERE ARE NO UNDERSTANDINGS OR AGREEMENTS BETWEEN BUYER OR USER AND KOP RELATIVE HERETO WHICH ARE NOT FULLY EXPRESSED HEREIN. NO ACKNOWLEDGMENT, PURCHASE ORDER OR OTHER DOCUMENT WHICH CONTAINS ANY TERMS OR CONDITIONS OTHER THAN ANY AND

ALL OF THESE ARE BINDING ON KOP.

THESE GENERAL TERMS AND CONDITIONS AND ANY SPECIAL CONDITIONS WHICH MAY APPLY SHALL BE CONSTRUED UNDER AND GOVERNED BY THE LAWS OF THE STATE OF TEXAS.