International Drilling Rig Builders and Brokers

Drilling Rigs For Sale - New / Used / Reconditioned

Land Drilling Rig Packages

 

Rig Builders

International

Drilling Rig Builders

New / Used / Reconditioned

Houston, Texas

Tel: 713-594-RIGS (7447) - Fax: 281-395-1540

Email: rigs@rigbuilders.com

 

GENERAL TERMS AND CONDITIONS

  

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TERMS OF PAYMENT

60% Deposit with order.

35% With Letter of Credit, EX WORKS, RBI, Houston, Texas USA from an approved financial institution.

5% Upon Completion.

 

CANCELLATION

The Purchaser may cancel this contract at any time by giving written notice and upon paying a Cancellation Fee. RBI, may cancel this contract within 15 days of providing written notice to the Purchaser that the Purchaser is in default of the payment terms contained in this contract. The Cancellation Fee is payable by the Purchaser to RBI, in any even of cancellation as follows:

(i) An amount based on the date of receipt of the notice of cancellation or delay Within 59 days of delivery 25% of contract amount for goods. Within 60 to 90 days of delivery 20% of contract amount for goods. In excess of 90 days of delivery 10% of contract amount for goods.

(ii) plus all restocking charges incurred by RBI, with its suppliers

returning materials relating to this contract within 30 days of notice of

cancellation.

(iii) plus the cost of materials relating to this contract not returned to suppliers or otherwise utilized by RBI, in its normal course of business within 30 days of notice of cancellation.

The Cancellation Fee is payable by check or by application of deposits immediately upon submission of invoices from RBI Materials relating to this contract not returned to suppliers or otherwise utilized by the Seller in its normal course of business within 30 days of notice of cancellation become property of the Purchaser upon payment of the entire cancellation fee.

 

VALIDITY

Price and delivery are valid for a period of sixty (60) days from the date of quotation.

 

STANDARD TERMS AND CONDITIONS

 

1. When signed by an authorized officer of RBI and acknowledged and agreed to by the Purchaser (as defined on the face of this document), the face and back of this document together shall constitute a binding agreement (the "Agreement") between RBI, and the Purchaser for the manufacture, purchase and sale of the Equipment (as defined on the face of this document). (RBI, and the Purchaser are hereinafter collectively referred to as the "Parties").

2. Alternatively, if the Purchaser or its agent, either orally or in writing, requests that RBI, manufacture and deliver the Equipment (as set out in such an oral or written request) these Standard Terms and Conditions shall govern the purchase and sale of such Equipment including any amendments or additions thereto and the Purchaser, by requesting such manufacturing and delivery, shall be deemed to have agreed to and accepted these Standard Terms and Conditions.

3. In consideration of payment of the Purchase Price (as defined on the face hereof) by the Purchaser, RBI, agrees to manufacture, sell, and deliver and the Purchaser agrees to purchase the Equipment in accordance with the provisions hereof.

4. The Parties agree that the terms hereof constitute the entire agreement between the Parties and that there are no representations, warranties or conditions, express, implied or arising under statute, other than as stated herein.

5. All payments shall be in an acceptable currency, without offset, back charge, retention or withholding of any kind. All invoices shall be payable upon receipt by the customer. Payments will be made through a confirmed irrevocable letter of credit and on an acceptable bank to the Seller, direct deposit, certified bank draft or cash. Unless otherwise stated, all prices are in US Dollars. Prices relating to Goods are ex factory, place of manufacture. Labor rates shall be subject to change without notice and shall apply when required from time to time.

6. Delivery of the Equipment shall not be made unless and until all payment terms are met.

7. The Purchase Price does not include Goods and Services Tax pursuant to the Excise Tax Act or any customs duties, import duties, excise taxes or like charges levied by any governmental agency at the place of delivery of the Equipment and that RBI, shall not in any way whatsoever be responsible in whole or in part for the payment of such charges.

8. Any amount paid by the Purchaser to RBI, and referred to as "Deposit" on the face of this Agreement together with any subsequent amount paid to RBI, by the Purchaser as partial payment of the Purchase Price shall constitute a deposit by the Purchaser (hereinafter referred to as the "Deposit"). In the event that the Purchaser neglects or refuses to make any payment due hereunder or breaches this agreement or any other chattel mortgage, security agreement or other agreement intended to secure payment of the Purchase Price, RBI, may retain the Deposit as damages for such breach or breaches without in any way prejudicing the right of RBI, to recover from the Purchaser the balance of such damages.

9. RBI, shall incur no liability for any delay or failure to deliver the Equipment or for any delay or failure to perform any of its obligations hereunder by reason of strike, threat of strike, lockout, fire, flood, interruption or delay in manufacture or transportation, act of nature, war, insurrection, mob violence, requirement of governmental authorities, embargo, shortage of labor, equipment or materials, plant breakdown or any other causes beyond the control of RBI, whether or not in existence or known to RBI, at the time of acceptance of this Agreement.

10. The Equipment shall be and remain at the risk of the Purchaser from and after the time of delivery to the Purchaser or its agent or to a carrier for transportation to the Purchaser whichever event shall first occur (hereinafter referred to as the "Delivery Date").

11. The Equipment shall be delivered to the Purchaser Ex Works at RBI, plant unless otherwise agreed to in writing.

12. The Purchaser agrees that it is deemed to have accepted the Equipment on delivery. Any claims against RBI, for shortages in shipment shall be made within five (5) calendar days of delivery and unless a claim or claims is made in writing within that period, the Purchaser is deemed to have accepted the Equipment as full satisfaction of RBI's obligations under this Agreement.

13. In the event that the method of shipment of the Equipment to the Purchaser is not specified on the face of this Agreement, RBI, may withhold delivery until the Purchaser specifies the method of shipment. If method of shipment is not specified on the face of this Agreement and the Purchaser fails to specify a method of shipment in writing prior to the Delivery Date, RBI, shall be entitled to ship the

14. Equipment by any method of shipment, which may be available at its sole discretion which method, shall be deemed to have been agreed to by the Purchaser.

 

15. Any warranty respecting the Equipment is as set out in the Statement of Warranty Policy delivered to the Purchaser, receipt of which is hereby acknowledged by the Purchaser (the "Warranty"). No other warranties are applicable or may be implied. The Warranty, if any, will be valid for the number of calendar days specified on the face hereof commencing on the Delivery Date (the "Warranty Length Period").

16. The Purchaser hereby indemnifies RBI, from and against any and all claims, losses, expenses, penalties, damages and liabilities of every kind whatsoever which RBI, may be required to pay or which RBI, may sustain resulting from personal injuries (including death) or property damage suffered by any person by reason of the operation, handling, transportation or use of the Equipment pursuant to the terms hereof or to the Warranty. The limitations of liability and indemnities contained in this clause shall survive the expiration or termination of this Agreement.

17. This Agreement shall be governed by and construed in accordance with the laws in force in the UNITED STATES OF AMERICA and each of the Parties submits to the exclusive jurisdiction of the courts of the UNITED STATES OF AMERICA for the interpretation and enforcement of this Agreement.

18. The Parties agree and the Purchaser acknowledges that interest at the interest rate of 2% per month will be charged by RBI, on all overdue accounts. The Parties agree that interest pursuant to this clause will be compounded on a monthly basis.

19. RBI, Is subject to laws in various jurisdictions relating to restrictions on trade with certain embargo countries. Shipment of the Equipment to embargo countries without approval from RBI, and the relevant governmental agency is made at the Purchaser's sole risk.

20. If anyone or more of the provisions of this Agreement are found to be void or unenforceable for any reason, such provisions shall be considered, at such time, to be deleted from this Agreement and this Agreement shall continue in full force and effect as if such provisions were never part of this Agreement.

 

STATEMENT OF WARRANTY POLICY

 

1. RBI, warrants the Equipment to be free from defects in material and workmanship for a period of TWELVE (12) months from the Date of Delivery.

2. RBI, reserves the right to inspect the Equipment to determine the validity of the warranty claim and if determined to be valid, RBI, will, at its option: (1) replace the defective Equipment or parts thereof; or (2) authorize the Equipment or part to be returned to its authorized repair facility for repair; or (3) authorize the Equipment or part to be repaired at your plant. RBI, will not be responsible for any transportation costs.

3. Repair or replacement will be without charge, but removal and installation of other parts, including additional parts furnished, will be made at Purchaser's expense. No charges will be accepted for returns, repairs or alternations done by the Purchaser unless previously authorized in writing by RBI

4. Purchaser acknowledges that the Equipment is of a size, design and type requested by the Purchaser and agrees that, except as stated herein, there are no other warranties, express or implied, including those or merchantability or fitness for particular use, which RBI, hereby disclaims.

5. Purchaser to pay all charges for travel time, kilometer charges, and travel expenses for warranty work performed away from the RBI, fabrication facility.

 

NOT COVERED UNDER THIS WARRANTY

 

1. Equipment or parts manufactured by others however, RBI, will assign the benefits of any manufacturers' warranty if assignable.

2. Equipment or parts that are or have been in contact with corrosive chemicals or corrosive materials.

3. Equipment or parts customarily subject to wear.

4. Failure resulting from improper use or inadequate maintenance.

5. Personal injuries or death to any person (including the Purchaser and any of its employees, agents and contractors) or claims for loss or damage to property or business either direct, indirect or consequential, caused or contributed to by the Equipment or any failure thereof, regardless of whether caused by RBI, or any other person or by any default or negligence of RBI, its employees, agents and contractors.

 

This warranty may not be assigned to any other party without the written consent of RBI