Terms And Conditions Of Supply

1. DEFINITIONS

   The following terms shall have the meanings set forth below:

   1. “Agreement” means these general terms and conditions of supply, the proposal, and the order confirmation document issued by Dragflow USA;
   2. “Buyer” means the person to whom the proposal is addressed;
   3. “Proposal” means the commercial proposal addressed to the Buyer by Dragflow USA in connection with the Supply;
   4. “Purchase Order” means a document issued by the Buyer as an offer to purchase goods or services from Dragflow USA in accordance with the proposal;
   5. “Supply” means the sale of goods or the provision of services to the Buyer by Dragflow USA;
   6. “In Writing” means either by a written letter delivered via mail or an email delivered using the internet.

2. AGREEMENT

   1. Supply. The Buyer hereby engages Dragflow USA for the supply as described in the Proposal.
   2. Duration. The duration of this Agreement shall be as indicated, if applicable, in the Proposal. In the absence of such indication, this Agreement shall expire upon the completion of the Supply or when Dragflow USA has fully performed the Supply in accordance with the terms of this Agreement.
   3. Validity Period of the Proposal. The validity period of the Proposal shall be as indicated on the Proposal itself. The Buyer may request an extension of this validity period. Any request for an extension must be made in writing and received by Dragflow USA before the expiration of the validity period of the Proposal.

3. ORDER ACCEPTANCE

   1. Effect of the Purchase Order. No purchase order submitted by the Buyer shall be deemed accepted by Dragflow USA unless and until it is confirmed in writing by Dragflow USA.
   2. No Obligation to Accept the Purchase Order. Dragflow USA has no contractual obligation to accept a purchase order from any Buyer who has not provided Dragflow USA with satisfactory references. At any time, if Dragflow USA is not satisfied with the Buyer’s creditworthiness, it may notify the Buyer in writing that no further credit will be extended to the Buyer unless the situation is rectified within ten (10) business days.
   3. Acceptance of the Purchase Order. The Buyer shall be bound by the provisions of this Agreement upon the written acceptance of the purchase order by Dragflow USA. Whether or not the Purchase Order or this Agreement is signed, the Buyer shall be deemed to have accepted the terms and conditions of this Agreement (including these General Terms and Conditions of Supply) by submitting a Purchase Order referring to the Proposal.

4. PRICE

   1. Currency and Taxes. All prices are expressed in the currency indicated on the Proposal and exclude applicable taxes and duties unless expressly stated otherwise in the Proposal.
   2. Installation and Start-up Costs. Unless expressly stated otherwise in the Proposal, the price of installation, installation assistance, and/or start-up services is not included in the scope of the Supply. Such services may be offered by Dragflow USA under a separate agreement.
   3. Credit Check. Dragflow USA reserves the right to verify the Buyer’s creditworthiness.
   4. Delivery Charges. Delivery charges are the responsibility of the customer unless otherwise specified in the contract.

5. PAYMENT TERMS

   1. Payment Terms. The payment terms are those indicated in the Proposal. In the absence of a specific payment schedule, the Buyer agrees to pay for the Supply as invoiced by Dragflow USA. Invoices are due and payable as indicated on them, from the date of invoicing, subject to Dragflow USA’s continued credit approval. The Buyer agrees to pay interest on all overdue amounts at the rate of 1% per month (maximum 10% per year).
   2. Dispute of an Invoice Item. In the event of a dispute over an item on an invoice, the Buyer must promptly pay all other undisputed items on the invoice.
   3. Default in Payment. In the event of default in payment, the Buyer shall be liable for all collection costs incurred by Dragflow USA, including reasonable legal fees. Additionally, in the event of non-payment in accordance with section 5.1, Dragflow USA reserves the right to suspend the provision of services or the delivery of undelivered goods until payment is received.

6. DELIVERY

   1. Estimated Delivery Time. The delivery time mentioned in the Proposal constitutes Dragflow USA’s best estimate at the time of submission of the Proposal. Every effort will be made to meet delivery deadlines upon acceptance of the order by the Buyer.
   2. Failure to Take Delivery. If the Buyer fails to take delivery of the ordered goods, or any part thereof, or fails to provide the necessary instructions, documents, licenses, consents, or authorizations to enable the delivery of the goods on the scheduled date, Dragflow USA shall have the right, upon notice to the Buyer, to store or have the goods stored. Delivery shall then be deemed to have taken place, and the Buyer shall pay Dragflow USA all associated costs and expenses, including storage and insurance fees.
   3. Incoterms. Delivery shall be made in accordance with the deadlines specified in the Proposal. The version of the Incoterms applicable shall be the one in effect at the date of the Proposal.
   4. Transfer of Title. The goods remain the property of Dragflow USA until the Buyer has made full payment.

7. MODIFICATIONS AND CANCELLATIONS

   1. Requests for Modifications. The Buyer has the right to make changes to the specifications and drawings of the goods or services covered by the Agreement. The Buyer may formalize this change by sending written notice to Dragflow USA. If Dragflow USA believes that such a change affects the price or delivery date of the supply, it will inform the Buyer in writing within ten (10) business days of receiving the modification request. No modification described in a change request shall take effect until it has been agreed upon in writing by Dragflow USA and the Buyer.
   2. Suspension Pending Agreement. Dragflow USA shall suspend any work related to or affected by a modification request until the Buyer and Dragflow USA mutually agree in writing on the necessary adjustments to the supply conditions, including the contract price and/or the applicable performance or delivery schedule(s), to reflect the effect of such change. The Buyer shall then pay Dragflow USA all costs related to the work in progress up to the date of suspension of the work.
   3. No Cancellation Without Agreement. No order accepted by Dragflow USA may be cancelled by the Buyer without Dragflow USA’s written consent, provided that the Buyer fully indemnifies Dragflow USA for any loss, costs (including the cost of labor and materials used), damage, charges, and expenses incurred by Dragflow USA as a result of the cancellation.
   4. Returns and Cancellations for Convenience.
      1. Prior authorization from Dragflow USA is required before any return of Products to obtain credit. Dragflow USA reserves the right to grant or refuse this authorization at its sole discretion. If a return is accepted, a return authorization form will be provided and must be clearly affixed to the Products returned by the Customer (freight prepaid only). All returned Products must be in re-sellable condition, in their original containers and/or packaging, and will be subject to inspection and restocking fees, determined by an authorized representative of Dragflow USA. The transportation costs for the return shall be borne by the Customer.
      2. Unless otherwise stipulated in the Agreement, the Customer shall not have the right to cancel the Agreement for Convenience.
      3. If the Agreement provides that the Customer may cancel for convenience and the Customer decides to exercise this right of cancellation, in whole or in part, for the parts of the Agreement not yet performed as of the effective date of the cancellation, Dragflow USA shall cease all cancelled work, place no further orders related to the cancelled work, and retain, protect the material acquired for the cancelled work or intended for it, the work in progress, and the completed goods, and dispose of such material and goods in accordance with the Customer’s instructions. As part of this cancellation for convenience, the Customer agrees to pay Dragflow USA:
         1. the amounts provided in the cancellation schedule if such a schedule is included in the Agreement;
         2. if no cancellation schedule is included in the Agreement, the sum of the following amounts:
            1. the higher of the Work actually performed, in whole or in part, before termination and for which Dragflow USA has not yet been paid (including, without limitation, the cost of supplies and inventory, payment for work in progress, as well as Products and components supplied or manufactured not yet delivered to the Customer as of the termination date, as well as the profit realized and overhead costs up to the termination date) and the next milestone payment; plus
            2. all other costs and expenses incurred by Dragflow USA as a result of this termination of the Agreement, including, without limitation, demobilization costs, costs related to the removal of work and available material, interest on late payments, as well as any cancellation payment or fee related to a subcontract. For clarity, Dragflow USA shall be entitled to all lost profits, any contribution to overhead costs, as well as all indirect, incidental, or other damages resulting from this cancellation.

8. WARRANTIES—LIMITATION OF LIABILITY

   The limited warranties of Dragflow USA applicable to Products and Services are set out, respectively, in Appendix B.1 and B.2 available on the website https://dragflowusa.com/. Notwithstanding any other provision of the Contract, the warranties of Dragflow USA set forth in these annexes: (1) are the only warranties applicable to the Work, and all other warranties, conditions, assurances, or similar obligations, whether express or implied, by fact or law (including any statute or regulation), custom or trade usage, or any transaction, including, without limitation, any implied warranty of quality, merchantability, fitness for use, fitness for a particular purpose, or otherwise, are excluded from the Contract and inapplicable, and (2) are the customer’s sole remedy arising from defective or deficient Work.

   1. Warranty of Goods. The goods sold under the Contract will be covered by the warranty described in the Warranty Certificate(s) on the website https://dragflowusa.com/—Warranty Certificate(s).
   2. Warranty Claim. In the event of a failure of a good sold by Dragflow USA due to defective materials or manufacturing defects during the warranty period, the Buyer must submit a written claim to Dragflow USA as soon as possible after discovering the defect. The request will then be evaluated. If a product sold by Dragflow USA is deemed non-defective or defective for reasons other than material or manufacturing defects, the Buyer will be informed and the warranty claim will be rejected. All costs related to the evaluation of the claim will be charged to the Buyer.
   3. Service Warranty. Dragflow USA undertakes to provide services in a professional manner, in accordance with industry standards and all applicable laws, rules, and regulations. If the services provided do not comply with this warranty, Dragflow USA’s sole obligation and the Buyer’s exclusive remedy will be the performance of the services or, if commercially impracticable, the prompt reimbursement of the amounts paid by the Buyer for such services. Any warranty claim must be made within thirty (30) days following the performance of the services concerned.
   4. Limitation of Liability. In no event shall Dragflow USA’s total liability to the Buyer exceed the amount paid by the Buyer under the Contract. This limitation shall apply regardless of the form of action, whether contractual, extracontractual, statutory, strict, or otherwise. The agreed-upon liability allocations and damage limitations represent the negotiated agreement between the parties, and Dragflow USA’s compensation reflects these allocations. Furthermore, in no event Dragflow USA shall be liable for any loss of profits, savings, or any other economic loss, nor for any consequential, incidental, indirect, special, or punitive damages (including, but not limited to, business interruption, loss of goodwill, or data) or for any claim against the Buyer by a third party, even if Dragflow USA has been advised of or could reasonably foresee the possibility of such damages.
   5. Return of Materials or Pumps. Any request for the return of materials or pumps must be pre-authorized by Dragflow USA. Return fees may apply depending on the initial agreement at the time of sale or rental.
   6. Exclusion of Warranties. The Buyer acknowledges that the only warranties offered for the goods and services purchased under this Contract are those specified in sections 8.1 and 8.3 above. The Buyer further acknowledges that, unless Dragflow USA is the manufacturer of the purchased products, the warranties are offered by the manufacturers of the products sold by Dragflow USA and not by Dragflow USA itself, which only manages warranty claims on behalf of the manufacturers. DRAGFLOW USA AND ITS DIVISIONS EXPRESSLY DISCLAIM ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, RELATING TO THE PRODUCTS OR SERVICES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF TITLE, ACCURACY, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, OR ANY WARRANTY RELATING TO THIRD-PARTY SERVICES. THIS DISCLAIMER DOES NOT AFFECT THE TERMS OF ANY MANUFACTURER’S WARRANTY.

9. CONFIDENTIALITY

   1. Confidentiality. The provisions of this Article 9 apply to the exchange of confidential information (as defined below) between the parties, unless a non-disclosure agreement or other similar agreement is already in effect between the parties as of the date of acceptance of the Buyer’s purchase order by Dragflow USA. The parties acknowledge that they may receive confidential and/or proprietary information relating to the other party’s business, including, without limitation, designs, presentations, drawings, diagrams, marketing information, know-how, and/or trade secrets, which are identified as confidential and/or proprietary at the time of disclosure or which a reasonable person would consider, by the nature of the information, to be confidential and/or proprietary (“Confidential Information”). The receiving party shall treat the Confidential Information as confidential and proprietary to the disclosing party and shall not disclose it, except to persons within its organization who need to know it to carry out the business relationship and who are bound by written confidentiality obligations no less protective of the disclosing party’s Confidential Information than those provided in this section. In the event of a confidentiality breach, the receiving party shall notify the disclosing party as soon as possible, but no later than three (3) business days after becoming aware of the breach. The receiving party shall be directly responsible for the acts or omissions of its directors, officers, employees, and subcontractors concerning these confidentiality obligations. The receiving party agrees to separate the disclosing party’s Confidential Information from the confidential information of others to avoid any commingling.
   2. Exceptions. The confidentiality obligation provided in Article 9.1 does not apply to information that: (a) is or becomes generally known and accessible to the public within the industry without fault of the receiving party; (b) was known to the receiving party before the time of disclosure and was not subject to restrictions, as evidenced by the receiving party’s written records; (c) was independently developed by the receiving party, as evidenced by the receiving party’s written records; (d) was lawfully obtained from a third party with the right to make such disclosure without restriction; (e) is authorized to be published in writing by the disclosing party; or (f) must be disclosed by regulation.

10. INTELLECTUAL PROPERTY

    The Buyer acknowledges that all plans, specifications, summaries, copies, reports, analyses, notes, drafts, compilations, studies, synopses, files, letters, memoranda, records, data, sketches, drawings, notebooks, programs, or any other written, electronic, photographic, or other material (including any disk or computer medium on which such documents or work products may be stored) created or delivered by Dragflow USA in connection with the Supply, as well as all intellectual property rights created, realized, designed, or otherwise arising from the performance of the Supply (collectively referred to as “Developments”) are and remain the exclusive property of Dragflow USA. Dragflow USA hereby grants the Buyer a non-exclusive, perpetual, worldwide, fully paid up, royalty-free license, without the right to sublicense, to use the Developments solely for the Buyer’s internal business purposes.

11. GENERAL PROVISIONS

    1. Complete Agreement. These general terms and conditions of supply, together with the proposal and order confirmation issued by Dragflow USA, constitute the entire agreement between the parties concerning their subject matter and prevail over the preprinted terms of any purchase order, acceptance, acknowledgment, shipment, or other similar document issued or signed in connection with the Contract. This agreement supersedes and replaces all prior oral or written agreements, representations, negotiations, or agreements between the parties concerning this subject. No change, modification, supplement, or amendment to this Agreement shall be valid or binding unless executed in writing by both parties.
    2. Entire Agreement. Without limiting the generality of the foregoing, no agreement or communication between the parties, whether written or verbal, including, without limitation, a call for tenders, a proposal, or any other document exchanged between the Parties up to the date of the Contract, inclusively, nor any information or data contained in general product documentation and price lists, or provision contained in purchase documents, purchase orders, work orders, acceptance documents, or other Client communications or forms, shall form part of the Contract, and none of the foregoing shall have any legal effect between the Parties unless expressly contained in the Contract.
    3. Notices. Any notice provided under this Agreement shall be sufficient if in writing and delivered by a communication method providing sufficient evidence that the notice has been effectively delivered to the recipient.
    4. Independent Contractors. The parties acknowledge that they are acting

ANNEX — Warranty Certificate(s)

B.1 Product Warranty

Offered Warranty: This warranty (the "Warranty") applies to all goods, materials, equipment, parts, and/or products ("Products") sold by Dragflow USA. The specific Dragflow USA entity bound by this Warranty will be the one that is a party to the relevant contract, purchase order, or service order with the customer ("Customer") under which these Products are sold. In this Warranty, the term "Dragflow USA" refers to this specific entity.

Defects Covered—Products Manufactured By Dragflow USA: Subject to the provisions of Appendix "B," Dragflow USA warrants that the products it manufactures ("Dragflow USA Products") are free from manufacturing or material defects and conform to Dragflow USA's specifications as set out in the applicable contract, purchase order, or service order. If Dragflow USA determines, at its discretion, that a Dragflow USA Product does not conform to this warranty during the applicable warranty period, and the terms of this Warranty have been met, Dragflow USA will repair or replace the defective Product, or refund its purchase price. Dragflow USA's obligations are strictly limited to the repair, replacement, or refund of the defective Product. This Warranty applies only to Dragflow USA Products for which the Customer has paid. If Dragflow USA opts for repair, the Customer will be responsible for transporting the Product to Dragflow USA's facilities. Any repair outside normal hours will incur additional costs for the Customer. This Warranty is subject to limitations, the warranty period, exclusions, and other conditions.

Warranty Period: This Warranty covers defects present in Dragflow USA Products at the time of delivery, provided they appear during the following warranty period: for systems, pumps, and parts manufactured by Dragflow USA, the period is twelve (12) months from the date of delivery to the Customer. This warranty period may only be modified if stipulated in the contract between Dragflow USA and the Customer and will not be extended due to subsequent repairs.

Exclusion applicable to components of Dragflow USA Products manufactured by third parties: This Warranty does not cover any part or component of Dragflow USA Products manufactured by third parties. Only the manufacturer's warranty applies. In no case can Dragflow USA's warranty modify, replace, or supplement that of the manufacturer of parts or components manufactured by third parties. The general conditions, including the manufacturer's warranty period, prevail over those of Dragflow USA's Warranty.

Other exclusions: Dragflow USA is not responsible for damages, costs, or expenses incurred by the Customer or a third party resulting from the following situations, which are not covered by this Warranty:

• Work not performed by Dragflow USA or resulting defects.
• Events or circumstances beyond Dragflow USA's control, such as disasters, force majeure, accidents, abuse, negligence, chemical, electrochemical, or electrical influences, overloading of Dragflow USA Products, or abnormal environmental conditions.
• Incorrect, inappropriate, or inadequate installation, use, inspection, handling, assembly, storage, maintenance, removal, or transport, contrary to Dragflow USA's or the manufacturer's recommendations.
• Customer's failure to comply with Dragflow USA's or the manufacturer's recommendations, including failure to follow recommended maintenance intervals and procedures.
• Specifications, directives, or designs provided by the Customer.
• Acts or omissions of the Customer.
• Normal wear and tear or parts subject to premature wear due to their characteristics.

Additionally, except for the specific repair, replacement, or refund obligations provided by this Warranty, Dragflow USA will not be responsible for damages, losses, costs, or expenses suffered by the Customer or a third party, including, but not limited to, direct, indirect, consequential, or incidental damages, loss of revenue, loss of production, loss of value or use of property, loss of economic opportunities, or any injury or loss of life caused by the use of a Dragflow USA Product.

Reasons for warranty cancellation: The Warranty will be automatically canceled if the Customer fails to meet any of the following obligations:

• Comply with all requirements of this Warranty, the applicable contract, purchase order, or service order.
• Install, assemble, handle, store, use, operate, inspect, maintain, remove, and transport the Dragflow USA Product in accordance with Dragflow USA's recommendations, industry practices, and applicable laws.
• Take precautions to prevent further damage after an incident or event leading to a warranty claim.
• The Warranty will be canceled if the Customer conceals or misrepresents a material fact regarding the Warranty or the Dragflow USA Product, or commits fraud or misrepresentation.
• Transfer ownership of the Dragflow USA Product to a third party or lend, lease, or otherwise transfer possession to a third party, or in case of bankruptcy or seizure of the Product.
• Have the Dragflow USA Product repaired or modified by a person not authorized by Dragflow USA or use parts not supplied by Dragflow USA in these operations.

Warranty Claim Notice: Any claim under this Warranty must be submitted in writing during the warranty period to the Dragflow USA branch where the Product was purchased. To be valid, the claim must be received within ten (10) days of the Customer's discovery of the defect.

Other Limitations: Dragflow USA's total liability under this Warranty is limited to the purchase price of the defective Dragflow USA Product. This Warranty constitutes the only applicable warranty for the Products, and Dragflow USA expressly disclaims, to the fullest extent permitted by law, any other representation, warranty, condition, or obligation, express or implied, including those regarding merchantability, fitness for a particular purpose, or otherwise.

Exclusive Remedy: The remedies mentioned in this Warranty are the Customer's sole remedies, and Dragflow USA's only obligations in case of defective Products.

Limitation To Sue: No action or lawsuit based on this Warranty can be maintained unless the Customer has met all requirements and initiated the action within three (3) months following the initial claim.

Applicable Law: This Warranty is governed by the laws of the state of Arizona.

B.2 Service Warranty

Offered Warranty: This warranty (the "Warranty") applies to all labor services ("Services") provided by Dragflow USA. The specific Dragflow USA entity bound by this Warranty for a particular service will be the one that contracted with the customer (the "Customer") for that service. The term "Dragflow USA" refers to this specific entity within the framework of this Warranty.

Defects Covered—Services: Subject to the conditions of this Warranty, Dragflow USA warrants that the Services will be performed in accordance with the standards of competence and care expected in the industry, based on similar projects in terms of type, scope, and complexity. If Dragflow USA determines, at its sole discretion, that a Service does not conform to this warranty within the applicable period, Dragflow USA may, at its discretion, repair or re-perform the Service, or refund its cost. This Warranty applies only to work performed on equipment or components ("Equipment") for which Dragflow USA was the sole entity providing service, and which have been paid for by the Customer. Re-performances are done during Dragflow USA's normal hours, with additional costs if they occur outside these hours. The Warranty is subject to the limitations, periods, exclusions, and other conditions specified.

Warranty Period: The Warranty covers defects present during the performance of the Services that appear within twelve (12) months following the date Dragflow USA considers the Services completed and shipped. This period will not be extended in case of re-performance or corrective work.

Exclusions: Dragflow USA is not responsible for damages, costs, or expenses caused, in whole or in part, by:

• Work not performed by Dragflow USA or resulting defects.
• Events beyond Dragflow USA's control, including disasters, accidents, abuse, negligence, chemical, electrochemical, or electrical influences, overloading of the Equipment, abnormal physical or environmental conditions.
• Inappropriate installation, use, inspection, handling, assembly, storage, maintenance, removal, or transport of the Equipment, not in accordance with Dragflow USA's, the manufacturer's, or industry practices.
• Customer's failure to comply with Dragflow USA's or the manufacturer's recommendations regarding the Equipment.
• Specifications, directives, or designs provided by the Customer.
• Normal wear and tear or parts subject to premature wear due to their materials or use.
• Materials or substances processed by the Equipment, including debris, moisture, dust, grease, or other contamination.

Apart from the obligation to re-perform or refund, Dragflow USA will not be responsible for damages or losses suffered by the Customer or a third party, including direct, indirect, consequential, or incidental damages, loss of revenue, production, value, use, economic opportunities, injury, or loss of life.

Reasons for warranty cancellation: The Warranty is canceled if the Customer:

• Does not comply with the requirements of this Warranty or the contract related to the Services.
• Does not treat the Equipment in accordance with Dragflow USA's, the manufacturer's, or industry practices.
• Does not take precautions to prevent further damage to the Equipment in case of an incident.
• Conceals or misrepresents a material fact or circumstance.
• Transfers the Equipment to a third party without authorization or becomes insolvent.
• Modifies or repairs the Equipment without Dragflow USA's authorization, or uses parts not supplied by Dragflow USA.

Warranty Claim Notice: Claims under this Warranty must be made in writing and received by Dragflow USA within ten (10) days of discovering the defect.

Other Limitations: Dragflow USA's liability is limited to the amount received for the defective Service. This Warranty is exclusive and replaces any other warranty or commitment, express or implied, including those of merchantability or fitness for a particular purpose. The remedies indicated are the only ones available to the Customer.

Applicable Law: This Warranty is governed by the laws of the state of Arizona.