TERMS OF SALE – Secured Party Sale by Public Auction – Dragin Geothermal Well Drilling, Inc. and CKN Enterprises, LLC.

Notice: All persons, bidders, interested parties, registered bidders or persons intending to register, view, inspect, bid or purchase any personal property, inventory, equipment, lot or item (collectively the “Equipment”) at this auction sale agree that they have read and have full knowledge and understanding of these terms and agree to be bound by these terms.  The Equipment is being sold free and clear of any security interests, liens, and claims.  All security interests, liens, and claims shall attach to the proceeds of the sale in the same order of priority which existed prior to such sale.  All persons attend this sale at their own risk.  Within these Terms of Sale, “Auctioneer” means “Salvadore Auctions & Appraisals, Inc.” including its officers, directors, employees, agents and assigns”.  “The Seller” means the Secured Party(s), including its officers, directors, attorneys, employees, agents and assigns. Equipment means any item(s) offered for bid or for sale. “Purchaser” means bidder, registered person, company or business.

1) IDENTIFICATION OF BIDDER: All purchasers are required to give full name and address and shall read and sign the terms of sale.

2) DEPOSIT: To qualify to bid, each purchaser or bidder will be required to make a refundable $100 deposit.

3)TIME OF PAYMENT AND SETTLEMENT, BUYERS PREMIUM, TITLES: All bills and/or invoices due must be paid and received in full in US Dollars by Auctioneer by the close of business (5:00 p.m. EDT) on April 22, 2014.  Title shall pass after full payment has been received by the Auctioneer or its agent via the usual and customary form of bill of sale. Possession begins upon the fall of the hammer.  METHOD OF PAYMENT: cash, certified check, bank check, and/or wire transfer, company check with bank letter of guaranty as follows:

To Salvadore Auctions & Appraisals, Inc:

XYZ Company is a customer in good standing of ABC Bank. ABC Bank will guarantee unqualified payment up to $XXX,XXX.XX for a business check presented as payment for purchases made by XYZ Company at auction of Dragin Drilling held on April 22, 2014. ABC Bank guarantees unqualified and unrestricted transfer of funds to Salvadore Auctions & Appraisals, Inc. for 30 days from April 22, 2014. THIS LETTER MUST BE SIGNED BYA BANK OFFICER AND PRESENTED IN ORIGINAL FORM. NO PESONAL CHECKS. NO EXCEPTIONS.

ALL SALES FINAL REGARDLESS OF MANNER OR METHOD OF PAYMENT.  BUYERS PREMIUM: A Ten percent (10%) Buyers Premium will be charged and shall apply to all lots sold. A three percent (3%) fee will be charged to successful internet bidders.

4) CONDITION/REPRESENTATION OF EQUIPMENT SOLD: The Auctioneer and the Secured Party shall not be responsible for the accuracy or correctness of the description of the Equipment.  The Auctioneer and Secured Party shall not be responsible for the authenticity of nor defect in any Equipment and make no warranty or representation of any kind whatsoever either expressed or implied in connection with any Equipment being sold or presented for sale.  No deductions, allowances, returns, credits, or reimbursements will be allowed for any equipment damaged.  All Equipment is sold strictly “AS IS” “WHERE IS”  “WITH ALL FAULTS AND DEFECTS WHETHER KNOWN OR OTHERWISE” and without recourse.  No Equipment sold or presented for sale is warranted as merchantable or fit for any specific or particular purpose or use.  No claims may be made by any purchaser that relate to the fitness, use or condition of any Equipment purchased or for any damages whether consequential or otherwise which arise therefrom.

5) METHOD OF PAYMENT: All checks, deposits, balances due shall be made payable to the order of Salvadore Auctions & Appraisals, Inc.  All bills and invoices must be paid to an authorized representative of the Auctioneer unless other arrangements, terms or procedures are announced.  The full purchase price, including Buyer’s Premium, appropriate Sales and/or Use Taxes on all lots sold must be paid by the close of business (5:00 p.m. EDT) on April 22, 2014. All payments must be made via cash, bank check, certified check and/or wire transfer.

6) REMOVAL: Responsibility for the safety and security of your purchases lies solely with the purchaser and begins at the fall of the hammer. All purchases must be removed by APRIL 25, 2014. All small items of Equipment should be removed immediatelyfollowing the conclusion of the sale.  No Equipment shall be removed during the sale. Removal shall be at the soleexpense, risk, liability and responsibility of the purchaser.  Auctioneer shall not be responsible under any circumstances for any Equipment not removed within the time allowed.  Auctioneer shall not be responsible for loss resulting from storage on or at auction site after conclusion of sale.  Failure to remove any Equipment purchased by APRIL 25, 2014 shall be deemed to be abandonment of such Equipment and the Secured Party or Auctioneer shall be entitled to dispose of such Equipment for its own account and in any manner it chooses.  All Equipment left on the premises after the close of the auction are left at the sole risk of loss by the purchaser.  Any rigger, mover, crane operator, person or entity engaging in the removal, dismantling or transportation of any lot from this site forhire shall present a valid insurance certificate demonstrating coverage of US $2,000,000.00 to the Auctioneer prior to commencement of any work on the premises. Auctioneer will have supervision of the Equipment during normal business hours only and will cease to have supervision of theEquipment after APRIL 25, 2014.

7) INDEMNIFICATION: The undersigned agrees to hold the Auctioneer, Salvadore Auctions & Appraisals, Inc., and the Secured Party(s), along with their respective agents, officers, directors, shareholders, partners, members or affiliates harmless from and against all liabilities, claims, damages, or actions relating to or arising from the condition or use of the Equipment purchased, or from the failure of the purchaser or user to conform to or follow instructions, warnings, operating or other recommendations of the manufacturer, or failure to comply with state, federal or local law(s) applicable to such articles, lots or items, or from any damages whether consequential or otherwise, and any and all costs or legal expenses arising from any liability, claim or action.

8) SALE BY ESTIMATED WEIGHT, COUNT OR MEASURE: Quantities presented in the auction catalog are estimations only and not warranted as fact.  No deductions or allowances will be made by the Auctioneer or the Secured Party(s) in regard to the inventory count of any item. 

9) RESPONSIBILITY OF NON- DELIVERY: Auctioneer and Secured Party shall not be responsible to any party for non-delivery.

10) RISK ASSUMED BY PERSONS, BIDDERS AND PURCHASERS: All persons whether purchasers, attendees, or interested parties attending the sale or the inspection assume all risks of damage or loss to person and property and release the Auctioneer, Salvadore Auctions & Appraisals, Inc., and Secured Party from any and all liability.  The Auctioneer and Secured Party shall not be liable for any defect in or condition of the premises upon which the auction, inspection or move out is held.  All persons attending this sale do so at their own risk and hereby release the Auctioneer and Secured Party from any and all claims arising from attendance at this auction and hereby hold harmless the Auctioneer, Salvadore Auctions & Appraisals, Inc., and Secured Party from all damages, costs, expenses and claims arising from any action or cause of action arising from this sale.

11) ADDITION TO/WITHDRAWAL FROM SALE, METHOD OF SALE: Auctioneer reserves the right to add or withdraw items, articles or lots from the sale whether listed or not, and reserves the right to group, split, combine or divide lots in to larger or smaller lots wherever the best interest of the Seller is served.  The Auctioneer reserves the right to accept or reject, for any reason, any and all bids.

12) DISPUTE BETWEEN BIDDERS: Auctioneer reserves the right to put up for resale or decide winner should a dispute among bidders arise.  The Auctioneer’s decision shall be deemed absolute and final.

13) RECORDS/AGENCY: The record kept by the Auctioneer or clerk shall be final in the event of dispute.

14) DEFAULT OF PAYMENT: Should purchaser default on payment for any reason or fail to pay bills in full by the close of business (5:00 p.m. EDT) on April 22, 2014 and/or by failure to remove the Equipment by April 25, 2014, Auctioneer and the Secured Party(s) shall be entitled to, and in addition to any and all other remedies under applicable law, retain all monies received as deposit, partial payment or otherwise as liquidated damages.  Any Equipment not removed within the fixed time above may be resold at a future sale whether public or private sale without further notice.  All expenses, balances due, charges of resale, including reasonable attorneys’ fees and expenses incurred by the Auctioneer will be charges to and be the responsibility of the undersigned.

15) ADDITIONAL TERMS AND CONDITIONS: Auctioneer may add additional terms and conditions to the sale. Such terms shall take precedence.