REAL ESTATE AUCTION – RESIDENTIAL & COMMERCIAL REAL ESTATE TERMS AND CONDITIONS OF AUCTION SALE - DRAFT January 28, 2011 Athens, TX 2:00 PM United Country – Jones Swenson Auction Marketing, Inc (“Auctioneer”) has a contract with Jennifer & Keith Anderson to offer for sale at public auction several residential and commercial properties in Athens, TX and other areas. The properties are selling subject to owner’s confirmation. To qualify to bid live online via Proxibid, bidders must wire transfer to the auction company, the appropriate deposit amount (per the terms) for the properties on which they wish to bid. The wire must be received no later than end of business the day prior to the respective auction. Wire transfer information is available from the auction company. No one will be allowed to register online on the day of the auction. Deposits for non-winning bidders will be returned by wire transfer on Monday January 31, 2011. A. Property Inspection 1) It is the Purchaser’s sole responsibility to: a) perform all inspections (legal, environmental, economic or otherwise) of the Property and to be satisfied as to its condition prior to bidding; b) review all property information and due diligence materials; c) independently verify any information they deem important including information available in public records; and d) inquire of public officials as to the applicability of and compliance with land use and environmental laws, zoning, building and health & safety codes and ordinances and any other local, state or federal laws and regulations. 2) All information contained in the auction brochure and all promotional materials, including, but not limited to, photographs, directions, acreage, square footage, dimensions, zoning, maps used for promotion, environmental conditions, taxes, etc., was provided by or on behalf of the Seller and is believed to be correct; however, neither the Seller nor the Auctioneer makes any promise, representation, guarantee, or warranty as to the accuracy or completeness of such information. There is no obligation on the part of Seller or Auctioneer to update any information. Purchaser and Purchaser’s broker shall be responsible for verifying all acreage and square footage amounts through public records. B. Buyer’s Premium There will be a Ten Percent (10%) Buyer’s Premium added to the winning bid price to arrive at the total contract price to be paid by the Purchaser. Online bidders will pay an 11% Buyer’s Premium. C. Bidder Registration 1) Bidders must register and receive a bidder’s number in order to bid on the Property. A cashier’s check made payable to the bidder in the amount of $5,000.00 per property will be required at registration on Auction Day. To qualify to bid live online via Proxibid, bidders must wire transfer to the auction company, the appropriate deposit amount (per the terms) for the properties on which they wish to bid. The wire must be received no later than end of business the day prior to the respective auction. Wire transfer information is available from the auction company. No one will be allowed to register online on the day of the auction. Deposits for non-winning bidders will be returned by wire transfer on Monday January 31, 2011. 2) Upon being declared the final successful confirmed bidder, the Purchaser will be required to pay a Deposit in the amount equal to ten percent of the contract price. The first $5,000.00 per property will be in the form of the cashier’s check and the balance of the ten percent may be paid by a personal or company check. Payment will be made to the closing agent on Auction Day. 3) The Purchaser shall immediately pay the required Deposit to the Closing Agent on Auction Day and shall execute and deliver a completed Auction Sales Contract together will all related Addenda for the Property at the Auction. The fully executed Sales Contract shall control all terms and conditions of the sale and constitute the entire agreement between the Purchaser and the Seller. In the event of any conflict between these Terms and Conditions of Sale and the Terms and Conditions of such Sales Contract; the Terms and Conditions of the Sales Contract shall prevail. NO CHANGES TO THE TERMS AND CONDITIONS OF THE SALES CONTRACT WILL BE PERMITTED. PURCHASER WILL BE REQUIRED TO ENTER INTO THE SALES CONTRACT “AS IS” ON AUCTION DATE. 4) Any person bidding on behalf of another person or entity must have a valid, legally enforceable, unexpired, recordable Power of Attorney approved by Seller prior to the auction. If a Purchaser is bidding on behalf of a corporation, the bidder shall be individually bound until the bidder presents a corporate resolution prior to closing. 5) If for any reason the Purchaser fails or refuses to deposit the required funds or to execute the Sales Contract immediately after being confirmed the winning bidder, the Seller reserves the right to declare the bidder’s rights forfeited and may re-sell the Property. D. Closing Closing will be scheduled on or before March 10, 2011 and the Deposit shall be in U.S. Funds and shall be held in a non-interest bearing account by the Closing Agent pending completion of necessary closing procedures, after which the Purchaser shall be granted possession of the Property subject to any matters contained in the Title Commitment and the Auction Sales Contract. E. Licensed Buyer Broker Guidelines Upon the Closing of the transaction contemplated herein, Auctioneer shall be paid a commission pursuant to a separate written agreement between Auctioneer and Seller. If a Buyer’s Broker is properly registered with the Auctioneer according to the Buyer Broker Guidelines, then at Closing, the Buyer’s Broker shall be paid a commission of two percent (2%) of the high bid amount as shown on the Auction Sales Contract. If for any reason whatsoever (including the default of any party hereto), the Closing hereunder does not occur, then no commission shall be due and payable to Buyer’s Broker. To qualify for a commission, the buyer’s broker must register the prospect, using the Buyer Broker Registration Form provided by the Auctioneer. There will be no exceptions to the guidelines and no oral registrations will be accepted. No broker will be recognized that is participating as a principal, buyer or partner in the purchase. F. Bidding All properties will be offered individually during the auction G. Disclaimer 1) Personal on-site inspection of the property is recommended and bidders are advised to independently verify all information they deem important. This Property is being sold “As-Is, Where-Is” and with “All Faults”. The Seller and Auctioneer have not made, do not make and will not make, and hereby disclaim, any representation or warranty, whether expressed or implied or statutory, whether oral or written, with respect to the Property, including, without limitation, any warranty as to its value, condition, acreage, square footage, suitability, merchantability, marketability, operability, zoning or subdivision regulations, mineral rights, environmental condition or fitness for a particular use or purpose. No Guarantees are given as to the availability of utilities or accesses, or the permitted or allowable uses of the Property. 2) Neither the Seller, its attorneys, any broker, nor the Auctioneer, shall be liable for any relief including damages, rescission, reformation, allowance or adjustments based on the failure of the Property, including, but not limited to, amount of acreage, square footage, zoning, and environmental condition to conform to any specific standard or expectation, or any third party documents or information. H. Auctioneers Agency Disclosure The Auctioneer is acting exclusively as the agent for Seller in this transaction and is to be paid a fee by Seller pursuant to a separate written agreement between Seller and Auctioneer. The Auctioneer is not acting as agent in this transaction for the buyer. Any third party broker is not a subagent of Auctioneer. I. Equal Opportunity Clause All bidding is open to the public. The Property is available to qualified purchasers without regard to a prospective Purchaser’s race, color, national origin, religion, sex, familial status, or physical handicap. J. Miscellaneous 1) All decisions of the Auctioneer are final as to the methods of bidding, disputes among bidders, increments of bidding, and any other matters that may arise before, during, or after the auction. Seller reserves the right to deny any person admittance to the Auction or expel anyone from the Auction who attempts to disrupt the Auction. 2) Property is subject to prior sale. 3) All announcements made Auction Day supersede any prior oral or printed statements. The Seller reserves the right to announce additional Terms and Conditions of the sale prior to or during the course of the Auction. AUCTIONEERS FOR THIS AUCTION ARE SELLING AGENTS ONLY AND MAKE NO REPRESENTATIONS CONCERNING THE PROPERTY WHATSOEVER. W. Scott Swenson, CAI, GPPA, TX 7809 TX Broker #0425652 Dallas Office: (972)387-1110 Austin Office: (512)261-3838 www.jonesswenson.com Proud Members of the Texas & National Auctioneer Associations