ALL Lone Star Artificial Lift Systems, LLC (“LSAL”) oilfield machinery and equipment (“products”) is sold by LSAL or its dealer or distributor or agent upon the following warranty and agreement given by LSAL or its dealer or distributor or agent. THE WARRANTIES SET FORTH ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES AND CONDITIONS WHETHER STATUTORY, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND WARRANTIES ARISING FROM COURSE OF DEALING, USAGE, OR TRADE and are exclusive and in lieu of any other obligation on the part of LSAL or its authorized dealer.

LSAL neither assumes nor authorizes any person to assume for it any other liability in connection with the sale of such products.

The obligation of LSAL or its authorized dealer under this warranty is limited to the following:

LSAL warrants to the Original Purchaser (“Purchaser”) of the pumping unit, subject to the conditions herein stated, that the pumping unit shall be, upon delivery, free from manufacturing defects. This Warranty shall run for a period of three (3) years from the date of the shipment from LSAL’s manufacturing facility. In the event the pumping unit fails to operate properly due to a manufacturing defect (or) a manufacturing defect is discovered during the warranty period, LSAL shall only be obligated to repair or replace the pumping unit, at LSAL’s option, free of charge, F.O.B. LSAL’s nearest dealer or distributor location, or other designated place of repair or replacement. Repair or replacement by LSAL shall not extend the warranty period. LSAL will have no liability under the Warranty unless LSAL receives written notice from Purchaser of the defect within thirty (30) days after discovery of defect. LSAL may waive the requirement of written notice and accept oral notice of a timely reported defect. Purchaser shall comply with LSAL Policy and claims procedure in order to assert claim under this Warranty. LSAL shall not be liable under this Warranty and this Warranty will be null and void if the pumping unit, or any part thereof, was damaged, subjected to abuse, altered, misused or if the pumping unit, or any part thereof, was improperly stored, installed, maintained, repaired or operated. Repair or replacement of the pumping unit, or any part thereof, shall fulfill all obligations of LSAL.

The Warranty provided in this paragraph is subject to the following exceptions,

-Lone Star’s warranty is limited to one (1) year (subject to the terms and conditions stated above) with respect to parts that are subject to wear under normal operating conditions (including, but not limited to contact type oil or grease seals, hoses, belts, elastomeric parts, flex belts, wire line, brake lining, brake cables, etc.).
-LSAL extends no warranties with respect to the design of the pumping unit or the component parts, materials or accessories manufactured, furnished or supplied by individuals or entities other than LSAL (including, but not limited to prime movers, compressors, valves, electrical components, etc.). LSAL agrees that any warranty which is given to LSAL on such components by the manufacturer thereof shall be extended to the Purchaser but only to the extent permitted by the terms of such warranties.

The remedies provided above are the exclusive remedies of Purchaser for failure of LSAL to meet its obligations, whether claims of Purchaser are based on contract, in tort, (including negligence) or otherwise. Upon expiration of the applicable warranty period, all obligations of LSAL for breach of warranty will terminate. The provisions of this warranty shall be governed in accordance with laws of the State of California. Subject to and without waiving the foregoing, Purchaser agrees that neither LSAL, nor its affiliates, vendors, suppliers, agents, or subcontractors, either individually or jointly, shall be liable to Purchaser, its affiliates or any other person or entity whether due to LSAL’s negligence or otherwise, and will not be responsible to Purchaser in contract, in tort (including negligence) or otherwise for loss of use of equipment or plant, loss of profits or revenues, claims of any customers of Purchaser, or any special, indirect incidental or consequential loss of damage whatsoever. The obligation of LSAL arising out of the work performed hereunder will be limited to remedies under the limited warranty set forth above. IN NO EVENT SHALL THE PURCHASER OR ANY OTHER PERSON OR ENTITY BE ENTITLED TO RECOVER FOR INDIRECT, SPECIAL, EXEMPLARY, INCIDENTIAL OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO INCOVENIENCE, RENTAL, OR REPLACEMENT EQUIPMENT, LOSS OF PROFITS OR OTHER COMMERCIAL OR ECONOMIC LOSS. PURCHASER agrees to protect, defend, indemnify and save LSAL, its subcontractors and affiliates and their employees performing services under this Agreement harmless from and against all liabilities, loss, expense, claims, demands, and causes of action of every kind and character arising out of or in connection with this Agreement, or the work to be performed hereunder, without limit and without regard to the cause or causes of action thereof OR THE NEGLIGENCE OF ANY PARTY OR PARTIES, INCLUDING LOSSES ARRTIBUTED TO LSAL’s NEGLIGENCE arising in connection herewith in favor of Purchaser or third parties on account of bodily injury, death or damage to property. Purchaser agrees that whenever any representative of LSAL shall be on the premises of Purchaser or at any place other than LSAL’s facility, for the purpose of inspecting, repairing or servicing of the equipment sold herewith, the Purchaser shall indemnify and hold LSAL harmless of all claims, suits or actions arising from or growing out of the inspecting, repairing or servicing of such equipment and from all expenses of defending against such claims, suits or actions. Purchaser’s and LSAL’s rights and remedies with respect to this transaction, and with respect to all acts or practices of the other, past, present or future, in connection with this transaction, shall be governed by legal principles.