TERMS AND CONDITIONS OF THE AUCTION Subject to change. See details and updates at www.whitleyauction.com. All internet bidders must sign paper terms and registration documents prior to September 17, 2009 to be approved to bid as well as complying with the deposit requirements. By registering to bid or placing a bid, you agree to be bound by all of these terms & conditions and any other announced terms and conditions of sale or rules of the site. All internet bidders agree that bids placed on the internet shall have the same legal effect as if they were in attendance at the auction in person. ASK QUESTIONS BEFORE YOU BID. THERE ARE NO REFUNDS AND NO RETURNS!!! 1. All persons attending the exhibition, sale or removal of merchandise assume all risks of damage to person or property and specifically release and indemnify Rocky Mountain Estate Brokers Inc. (RMEB), Rocky Mountain Estate Brokers Realty LLC (RMEB Realty), whitleyauction.com, Robert L. Johnson & David P. Whitley from any liability. 2. All property is sold “AS IS”, and ALL SALES ARE FINAL. Property is open to thorough public inspection. It is the Bidder’s responsibility to determine condition, age, genuineness, value or any other determinative factor. RMEB may attempt to describe the merchandise in advertising, on the internet and at the auction but makes no representations. In no event shall RMEB be held responsible for having made or implied any warranty of merchantability or fitness for a particular purpose. If you have any questions about the merchandise, ASK THEM BEFORE BIDDING. Bidder shall be the sole judge of value. 3. All internet Bidders agree to pay a buyer’s premium equal to Eleven Percent (11%) of the hammer price of the real property they purchase. If the hammer price of an item is $2,000,000.00, the buyer’s premium will be $220,000.00 for a total purchase price of $2,220,000.00. 4. Bidders who bid from off site and are not present at the live auction or preview understand and acknowledge that they may not be able to inspect this property as well as if they examined it in person. It is the Bidder’s responsibility to determine condition, age, genuineness, value or any other determinative factor. RMEB will not be responsible for any errors or omissions in the description of the property. Bidder agrees that the property is sold as is and that they must close according to the terms of the contract or lose their deposit. 5. RMEB is providing internet pre-auction and live bidding as a service to Bidder. Bidder acknowledges and understands that this service may or may not function correctly the day of the auction. Under no circumstances shall Bidder have any kind of claim against RMEB or anyone else if the internet service fails to work correctly before or during the live auction. RMEB will not be responsible for any missed bids from any source. Internet bidders who desire to make certain their bid is acknowledged should use the pre-bidding feature and leave their maximum bid 24 hours before the auction begins. RMEB reserves the right to withdraw or re-catalog items in this auction. 6. The auctioneer shall advance the bidding at his own discretion. RMEB may withdraw any item before or during the auction. Should a tie or a dispute arise between two bidders, the auctioneer may, at his discretion, reopen the bidding until the property is sold. From time to time RMEB may accept items with reserves prices. RMEB reserves the right to bid on behalf of the owner on items on which there may be a reserve. The record of the auction made by RMEB shall be conclusive. 7. RMEB reserves the right to charge the Bidder’s credit card the full amount of any or all of Bidders pre or live bids at any time. Checks of any kind must be accompanied by an irrevocable bank letter of credit guaranteeing payment to RMEB and approved at least 72 hours in advance of the auction. If a check accepted by RMEB is returned for any reason bidder agrees that RMEB may re-present it in person or electronically and collect the amount of the check as well as the highest service charges and fees allowed under Colorado law. Any amount left unpaid shall accrue interest at the highest rate allowed under Colorado state law. Unless exempted by law, the purchaser shall pay all applicable taxes. Bidder agrees to indemnify RMEB against any claim if sales tax is not collected on Bidder’s purchases. Bidder agrees to not stop payment on any check paid to RMEB. Bidder further agrees that under no circumstances will he/she initiate a chargeback on his/her credit card. 8. Buyer acknowledges that he or she has performed all due diligence required to form his or her opinion of value and made all decisions necessary for him or her to make a final decision to purchase this property. This is a non-contingent sale. The only way Buyer will receive a refund of his or her deposit is if Seller fails to provide marketable title at closing as stated in the title insurance commitments. 9. A contract to buy and sell real estate prepared by the Seller’s Attorney will be used. Buyer agrees they have read and understand the pre-printed Contract to Buy and Sell Real Estate. Buyer further agrees to immediately execute the contract after being declared the high bidder. The offer to buy is non-revocable for 4 days. The Seller has 72 hours to accept or reject this offer. 10. A deposit of $15,000 is required to bid. This should be in the form of a cashier’s check payable to you. If bidding via the internet, this should be wire transferred to closing agent. Buyer agrees that immediately after being declared the high bidder he or she will execute the prepared Contract to Buy and Sell Real Estate. If, for any reason Buyer fails to execute the contract, Buyer’s deposit will be immediately forfeited to Seller as liquidated damages and Seller may pursue all additional legal remedies available against Buyer. After executing the contract, Buyer’s deposit will be retained and allocated under the contract as $500.00 as earnest money and the remainder as a non-refundable deposit. The balance must be paid at closing on or before October 19, 2009. If you intend to finance this property, have your financing arranged prior to the auction. The deposits of all unsuccessful Bidders will be returned immediately at the conclusion of the auction. 11. The auction will be conducted using a 10% Buyers Premium. Ten Percent (10%) will be added to the hammer price to form the contract price. A bid price of $2,000,000.00 will equal a contract price of $2,200,000.00. The internet Buyer’s Premium is 11%. 12. Seller will convey the property by General Warranty Deed free from all liens and encumbrances. Seller will pay for a title insurance policy in the amount of the purchase price. The cost of closing services shall be divided equally between Seller and Buyer. Property taxes and all utilities will be prorated to the day of closing. 13. Buyer has inspected the property and agrees to purchase it AS-IS WHERE-IS. There are no contingencies for inspections, financing, appraisals, insurance or anything else. Rocky Mountain Estate Brokers Realty LLC prepared a Bidder Information Packet. All information contained there was derived from reliable sources believed correct, but is not guaranteed. Buyer should verify all descriptions, condition reports, square footage and years of construction. Buyer shall rely entirely on his or her own judgment and inspection. It is the responsibility of the Buyer to have any and all inspections completed prior to the Auction including but not limited to, termite, roof, structure, electrical, mechanical, plumbing, groundwater, flood designation, environmental, presence of lead-based paint and/or lead-based paint hazards, presence of mold or radon gas and any other desired inspection. Buyer and his or her heirs and assigns forever waive any right to initiate legal action, object, seek reimbursement or damages or contest in any manner the condition of the subject property. 14. Buyer and his or her heirs and assigns do hereby release and agree to indemnify against all causes of action associated with this transaction Rocky Mountain Estate Brokers Realty LLC, Robert Lee Johnson Broker and David P. Whitley Auctioneer. This release extends to all physical and environmental conditions of the property. 15. Buyer agrees to forfeit all earnest money and deposits to Seller if Buyer fails to perform under the contract. 16. Buyer & Seller agree that faxed and emailed delivery of documents and signatures are acceptable. 17. Rocky Mountain Estate Brokers Realty LLC, Robert Lee Johnson Broker is acting as a Seller’s Agent. 18. Buyer hereby acknowledges receipt of all required disclosures including property, source of water addendum and lead based paint. Buyer waives his or her right to conduct any lead based paint tests. 19. Announcements on the day of sale supersede all other. Buyer consents to audio, video or photographic recording of the auction by Rocky Mountain Estate Brokers Realty LLC. Any recordings made are the property of Rocky Mountain Estate Brokers Realty LLC. This is a public auction conducted on private property. Anyone considered, in the sole discretion of Rocky Mountain Estate Brokers Realty LLC, to be disruptive or harmful to the auction process will be removed from the premises. 20. Bidder agrees that this agreement shall be governed by the laws of the state of Colorado and hereby grants sole jurisdiction and agrees to submit to the personal jurisdiction and venue of a court of subject matter jurisdiction located in Weld County, Colorado. Bidder agrees and grants that service of process on them may be obtained by mailing a certified letter, containing a summons, postage prepaid, to them at the address they provided to register. Should a dispute arise between RMEB and Bidder, Bidder waives any right to a trial or hearing in a court of law and agrees to settle the dispute through binding arbitration in Weld County, Colorado. 21. RMEB may refuse a buyer’s number to anyone for any reason. Bidder agrees to provide any identification RMEB may request including but not limited to: drivers license, photocopies of credit cards, Social Security card or US Passport. Bidder agrees to comply with any stated additional terms or conditions associated with particular items. 22. In an effort to allow internet bidders the same advantages as onsite bidders, the live auction software automatically accepts internet bids. At times, the auctioneer may have recognized another bidder as the high bidder. The live auction software is simply a communication device used by the auctioneer. It cannot legally recognize a bid. Only those bids recognized by the live auctioneer are legally accepted. At the conclusion of the auction, the internet results will be reconciled with the true auction results. It is always safest to attend the live auction in person and directly represent your bid to the auctioneer. 23. We want you to be happy with your purchases. If you have questions about the merchandise, the time to ask questions is well in advance of the live auction. No returns are allowed. Thank you for your patronage.