(9-1) 2011 LOADCRAFT LCI-1100 S/D Drilling Rig, LE

BIDDING TERMS & CONDITIONS 1. Bidder Registration: All Bidders must register and receive a bidder number at each Superior Energy Auctioneers' auction. Anyone bidding on behalf of a third party MUST register and will be held personally responsible and liable for all purchases. No agency relationships will be honored. No bids should be placed on any item you own or on behalf of any owner. Only the highest bidder will be able to purchase any item placed for auction by the Auctioneer. Superior Energy Auctioneers has the right to deny anyone a bidder number and may also retract bidding privileges for any reason at any time and for any reason. Any information about a Buyer or a Seller/Consignor is confidential. 2. Payment Terms: All purchases are to be PAID IN FULL in negotiable U.S. Funds upon receipt of invoice, NO FINANCING! Company or Personal Checks, Cashier's Checks or Wire Transfers are the only acceptable forms of payment. Bank wires and company or personal checks will be accompanied by a BANK LETTER OF GUARANTEE guaranteeing payment. Ownership of Lot transfers to Bidder when Auctioneer says SOLD. The Buyer waives the right to stop payment on any check or wire transfer given as payment. No cash, drafts, credit cards or ACH payments will be accepted. The Buyer may receive their equipment purchases upon completion of payment (check-out information can be found on the inside cover of the auction catalog). The Auctioneer reserves the right to hold ALL equipment until ALL funds have cleared the Auctioneer's Bank and to hold ALL equipment on any partial payment. A late fee may be assessed if payment is not received in full within (5) business days of receipt of your invoice. Contact Sue Schmidt at info@SuperiorAuctioneers.com regarding your Bank Letter of Guarantee. 3. Invoice Payment: For Cyber Security Reasons, Buyer is solely responsible for verbally verifying wire transfer instructions. Buyers will receive invoices and wire transfer instructions per secure encrypted email. NO EXCEPTIONS! 4. Sales Tax: Sales Tax will be charged on all purchases, unless the Buyer provides the proper exemption documents required by the local Government Tax Agency where the assets are located. Buyer agrees to pay all applicable sales tax on all purchases, unless they meet the requirements mentioned above. Buyer also agrees to pay any sales tax that may be assessed after initial payment has been received. International Buyers must pay the sales tax as shown on your invoice. Proper documentation must be provided in a timely manner to assist in obtaining any sales tax refund. (See Bill of Lading Requirements on our website) 5. Administrative Fees: A 5% Administrative Fee will be charged on all purchases made at the official on-site sale site location. There will be an additional fee for Internet purchases, phone-in purchases and absentee winning bid purchases. (See Auction Brochure or website for details) 6. Warranties or Guarantees: ALL items are sold AS IS, WHERE IS, WITH ALL FAULTS without a warranty or guarantee of any kind, whether written, expressed or implied as to merchantability or fitness for a particular purpose or intent. Any reference to year, make, model, serial number, condition, mileage, performance, lot numbering, and digital slides are provided as accurately as possible from sources believed to be reliable. The Buyer is wholly responsible to inspect items and accepts upon placement of a bid any item in its current condition with any and all faults or defects known or not known. Neither Superior Energy Auctioneers or the Seller shall be held liable for any defects or inaccuracies. Buyer specifically releases Auctioneers of any liability arising from the lack of merchantability or fitness of use or condition of any item purchased upon bid registration. All announcements on sale day take precedence over all printed material. Neither Superior Energy Auctioneers or the Seller accept any liability for loss or damage howsoever arising from any Lots withdrawn, cancelled or not presented for sale. Bidding on any item confirms that you have inspected the equipment and you know what you are bidding on and have accepted and agreed to these bidding terms and conditions and specifically waives any claims arising there from. Upon acceptance of Buyer's high bid, Buyer is responsible to insure equipment purchased and Auctioneer shall not be responsible for loss or damage. 7. Indemnification & Hold Harmless/Injury & Damages: The auction site shall include any yard or location at which any lot is located as well as the location where the auction bidding is conducted. The Bidder, Agents, Representatives or Employees agree to enter any site at their own risk. Bidders, Bidders party, Agents, employees or representatives agree to Hold Harmless and Indemnify and defend Superior Energy Auctioneers, its employees, its agents, its representatives, its sellers and its site owners for any injury, damages or loss of life which may occur on an auction site or arising from an auction. The Buyer also agrees to the same terms for load-out and check-out on all auction sites, and if requested, buyer will provide applicable Certificate of Insurance prior to load-out. 8. Contested or Tie Bids: The high bidder for each lot shall be the Buyer, and in the event two (2) or more Bidders claim the same lot after the Auctioneer has declared an item sold, the Auctioneer may re-open the sale of said item and allow bidding to continue between those Bidders until a high bidder is determined. The re-opening of any bid will be at the sole discretion of the Auctioneer, who may also decide not to re-open a bid if a bid was considered late and the item was clearly sold. The Auctioneer may also refuse any bid considered a mere fractional advance. The Auctioneer reserves the right to group, batch, withdraw, create or break-apart any lot. 9. Resale of Merchandise/Abandoned Merchandise: The Auctioneer reserves the right to reclaim any or all merchandise for any unpaid purchases in part or in full. In the event a Buyer chooses to resell a lot, they must make up any shortages from the initial sales price as well as pay any expenses, including but not limited to attorney fees, that result from equipment having to be resold. The resale of any merchandise is at the lone discretion of the Auctioneer. Any lots or equipment not picked up by any Buyer or left beyond the stated check-out period will be considered abandoned property and may be resold or otherwise disposed of by Auctioneer. Superior Energy Auctioneers reserves the right to charge or asses any fees incurred which arise from an abandonment of property and Buyer specifically releases Auctioneer of any claim or liability arising from any equipment purchased and abandoned including without limitation, any claim for a refund or return of monies used to purchase abandoned equipment. 10. Titles/Bills of Sale: Following collection of all money owed, Superior Energy Auctioneers will mail by USPS Certified Mail all titles and bills of sale to the Buyer within a reasonable time period following the auction. 11. Charges for Late Pickup of Lots: All purchases MUST BE removed during posted check-out period. Any lots or partial lots that are not claimed by the end of the check-out period will be considered abandoned and may be re-claimed and sold for storage costs at Superior's discretion. The Auction Company, Seller or yard Owner are not at fault for any injury, damage or loss during or after the check-out period. Late pickup may result in a $25.00 or more per lot per day charge. A storage lien will incept on the first day after the expiration of the posted check-out period without notice. 12. Load-Out/Transportation Disclaimer: Neither Superior or the Seller(s) are involved in any part of Load-Out or Transport. The responsibility of any load-out or transport arrangements and charges are the sole responsibility of the Buyer. Neither Superior or the Seller(s) should be considered the Shipper, Consignor or Consignee. Certificate of Insurance may be required prior to load-out. 13. Checkout Procedures: Check-out locations, dates, times, and other important information for each auction yard can be found on the inside of the auction catalog or on our website. Superior will hold equipment until all invoices are paid in full. Any monies paid against a partial invoice not completed will not be returned to Buyer and will belong to Auctioneer. Buyers may be asked to submit a Certificate of Insurance prior to load-out at some yards. Buyer must present Picking Ticket to the on-site check-out Supervisor upon arrival at each yard. Partial removal of any lot must be noted on the Picking Ticket. All counts, including pipe or multi-unit lots, must be confirmed by the on-site check-out Supervisor and the Buyer representative picking up the lots. Any lots or partial lots that are not claimed by the end of the check-out period will be considered abandoned and may be re-claimed and sold for storage costs at Superior's discretion. The Auction Company, Seller or yard Owner, are not at fault for any injury, damage or loss during or after the check-out period. 14. Agreement: This Agreement is between the Bidder and the Auctioneer (Superior Energy Auctioneers) and shall be governed by and interpreted by the laws of the State of Texas. Venue for any dispute arising between Auctioneer and any Buyer, Bidder, Shipper, Consignor or Consignee or agent representing the same will be limited to Comal County, Texas and may be referred to Arbitration by either party prior to the filing of any suit or subsequent thereto. Any fees incurred by Superior Energy Auctioneers in the enforcement of these terms and conditions shall be assessed against Bidder as damages for which Superior will seek recovery. By registering for this auction, the Bidder understands and agrees to abide by all Terms and Conditions as stated herein.