INTERNET TERMS and CONDITIONS OF SALE OVERVIEW / SUMMARY All equipment will be offered for sale on the day of the auction at the auction location. Equipment offered will be located in yards other than the auction location, be sure you know exactly where the equipment is located prior to bidding. Sales taxes will be charged according to location. Kruse Energy & Equipment sells every lot, “as-is, where is, with all faults” and “no guarantee or warranties, expressed or implied”. Kruse reserves the right to refuse any person a bidder number and may revoke bidder privileges at any time. All print or internet descriptions in the brochure, trade advertisements, auction catalog or on the internet are only a guide. INSPECT THE EQUIPMENT BEFORE YOU BID. A 5% Administrative/Internet fee will be charged on all purchases. All Internet purchases and associated fees are final. All sales are subject to local sales taxes unless a VALID exemption certificate is presented at registration for each sale. Deposit is required prior to receiving approval to bid. Payment for purchases is due and payable upon receipt of invoice. All purchases must be removed by end of equipment checkout period NOTE: No purchase may be removed until paid in full. See check-out schedule for each yard/location, listed above. TERMS & CONDITIONS DETAILS REGISTRATION: Internet Bidders must register for each individual auction and you must be registered for approval and your deposit received 48 hours prior to the auction. Anyone bidding on behalf of a third party must also register to bid and will be held responsible and liable for all purchases. No person shall bid on any item they own or on behalf of the owner. No exceptions! Buyer’s names are to remain confidential. REGISTER EARLY: Late registration may prevent you from being approved to bid. DEPOSIT: Unless you make prior arrangements with Kruse, you are required to place a refundable deposit of 25% of the total expected purchases or USD$10,000, whichever is higher. DEPOSIT MUST BE RECEIVED BEFORE YOU CAN BID. DEPOSIT TO BID - WIRE TRANSFER: Please have your banker, on the banks letterhead, fax or e-mail a request for wire transfer instructions from Kruse. Fax this request to Kruse Energy & Equipment LLC, Attention: Amy, 432 563-7929 or e-mail to amy@kruse.com. APPLICATION OF DEPOSIT: Your deposit will be refunded if you do not win any bids. If you are a successful bidder, your deposit will be applied to your invoice. If you owe more than the deposit you will be invoiced for the difference. If your deposit is more than your invoice, you will be refunded the difference. Failure to perform on any invoice will result in loss of your deposit. INVOICE PAYMENT - WIRE TRANSFER: If successful, you will be invoiced for your total purchases plus all applicable fees and taxes less the deposit made. Your invoice for balance owed will be due and payable to Kruse on day of receipt of invoice and will be considered late 3 banking days after the auction termination. Wiring instructions will be included with your invoice. SALES TAX NOTICE: Sales tax will be charged on all purchases and fees. Internet purchasers who are tax exempt in the United States must provide a copy of their VALID sales tax exemption certificate at time of registration for EACH SALE. A company’s Federal Identification Number, or for a proprietorship, the purchaser’s social security number, will also be required at registration. Buyer agrees to pay any sales tax that may be assessed after payment has been received. Sale tax rates charged will be based on the equipment location. ONLINE BIDDING: Online or left bids are provided as a service to the bidder. Bidder acknowledges that the internet service may not function properly during the sale-lost bids may result. Bidders will have no claim over lost or missed bids from any source. Kruse reserves the right to withdraw or re catalog items listed for auction for any reason. NON-PAYING BIDDERS: Non-paying bidders for any reason will be reported to the internet provider and banned from bidding in future Kruse Energy & Equipment Auctioneers, LLC auctions. Kruse may, at their discretion, utilize credit reporting agents, collection agents and/or legal means at our disposal to collect any unpaid amount plus any associated collection costs. Any action taken by the internet provider is between the internet provider and the non-paying bidder. This may include permanent banning of said bidder from all internet provider based auctions. No items may leave auction grounds without full payment being made. EQUIPMENT REMOVAL: No items will be removed until all items are PAID IN FULL, No partial removals, No Exceptions. Read the auction catalog for removal dates, times and checkout personnel contact information listed by individual yards. Storage charges will be charged for items remaining past checkout period. Purchases become the responsibility of and shall be and remain at the risk of the Purchaser when the bid is accepted. It shall be the responsibility of the Purchaser to insure his purchases immediately. Any items left beyond the normal check-out period that have to be moved by the auction company will be moved at the buyer’s expense. After 30 days, unclaimed items will be considered abandoned property. LOADOUT/SHIPPING: All loading/shipping arrangements and costs are the BUYER'S SOLE RESPONSIBILITY. INTERNATIONAL BUYER NOTICE: Contact your customs broker in advance of sale day for information on your import/export obligations. Sales taxes will be collected subject to location of the equipment. Refunds, if any, will depend on your timely provision of all necessary export documents and bills of lading. Equipment dimensions and weights are your responsibility. RESALE OF MERCHANDISE: The Auctioneer reserves the right to reclaim any or all merchandise for any unpaid purchases in part or in full. Buyer agrees to pay any deficiencies from the initial sales price and all expenses incurred including attorney’s fees on merchandise that must be resold. In the event a buyer chooses to resale a lot, they must make up any deficiencies from the initial sales price. The resale of any merchandise is at the sole discretion of the Auctioneer. WARRANTY OR GUARANTEE: Every item is sold “AS IS, WHERE IS, WITH ALL FAULTS” and without warranty or guarantee of any kind, either written, expressed or implied, as to merchantability or fitness for a particular purpose or otherwise. There are no warranties or guarantees as to year, make, model, serial number, condition, performance, and/or dotting & numbering, and/or digital slide production. All items are listed as accurately as possible and information is derived from sources deemed reliable, however, the accuracy thereof cannot be guaranteed or warranted by the Auctioneers. Buyer acknowledges it is his sole responsibility to inspect all items personally, determine condition based on his own expert opinion and accept all items purchased in their ”as is, where-is” condition with any faults or defects. Buyer in no way holds Auctioneer or Seller responsible for any defects, inaccuracies or errors in any way. All announcements sale day supersede any printed material. Your bid indicates you have previously inspected the lot and you know what you are bidding on. CONTESTED OR TIE BID/LOTTING: In the event two (2) or more parties claim the same bid at the fall of the Auctioneer’s gavel (sold), the Auctioneer may re-open the sale and commence the bidding between said parties until a high bidder and new owner is established. This is entirely at the sole discretion of the Auctioneer and he may elect not to re-open the bidding if he deems the bid was late and the item was considered sold. The Auctioneer may also refuse any bid he deems as a mere fractional advance. The Auctioneer reserves the right to group, withdraw or break-apart any lot he determines is necessary. INDEMNIFICATION & HOLD HARMLESS/INJURY & DAMAGES: Bidders and their agents, employees or representatives agree to hold harmless Kruse Energy & Equipment Auctioneers, its agents, employees or representatives along with the same for the Seller for any damages, injury or death occurring on or near the auction site. The auction site shall include any yard or location at which any lot is located as well as the actual location where the bid calling is conducted. The Bidder agrees to enter any site at their own risk. No person shall have any claim against Kruse Energy & Equipment Auctioneers, its agents, employees or representatives along with the same for the Seller or Site Owner for any injury, damages or loss of life which may occur from any cause or nature. The Buyer also agrees to the same terms for load-out and check-out on all auction sites and will provide insurance where applicable, necessary or required. TITLES/BILLS OF SALE: All Titles and Bills of Sale, along with other pertinent documents will be mailed within a reasonable time period following the auction, allowing for satisfactory collection of all negotiable funds. Your registration information provided in your bidder application will be used verbatim in completing your title transfer paperwork, please be accurate in the information you provide at registration. Delivery of such documents is subject to receiving the documents from the Seller. Kruse is acting as an agent only and any loss of title must be reconciled either through the Seller or the appropriate Government Agency. AGREEMENT: This agreement is between the Bidder/Buyer and Kruse Energy & Equipment LLC and shall be governed by and interpreted by the laws of the Great State of Texas. Registering to bid and placing a bid in this internet auction indicates that you have read, comprehend, understand and completely agree to all of the terms and conditions of this auction and that you have inspected or caused to be inspected all items you are bidding on and that you are relying on your own expert opinion in determining what you will bid. NOTE: Sale Tax Percentage Applied By Equipment Location. The yard locations are as follows: Yard #1 – Freer, TX Yard #2 – Alice, TX Yard #3 – Carrizo Springs, TX Yard #4 – Victoria, TX Yard #5 – Victoria, TX