KGI Machine Tool, LLC

Auctioneers Terms and Conditions

This is an online catalog only auction being held by KGI Machine Tool, LLC.

A 18% Buyer’s Premium will Apply to All Sales in Addition to Applicable Local and State Sales Tax.

Set forth below are the terms and conditions (the “Terms”) that shall apply to every bid or purchase by any party (“Buyer” or “Bidder”) either directly from KGI Machine Tool, LLC (“KGI”) as an owner of any item, Machinery, Equipment, fixtures or real property, or in a transaction (“Transaction”) in which KGI serves as broker, agent, liquidator or auctioneer for any third party owner. The Terms apply to every transaction, including without limitation, public auctions conducted by KGI and direct purchases by Buyer of any item either before, after or independent of any public auction.

TERMS & CONDITIONS for KGI Surplus Machine Tool Online Auction

1. REGISTRATION: All bidders are required to register and give full identification and establish credit with the Auction Company prior to the beginning of the auction. Internet Bidders register early to assure your approval for bidding at the auction. Internet registration must be made at least 24 hours before the auction starts. Note: You must supply credit card information and a  $200.00 deposit will be captured.

2. TERMS: Online Bidders, credit card deposit is required to register prior to the auction sale. The deposit will be returned in its original form if the Buyer is not a successful bidder at the auction. All purchases must be paid in full on the day of sale by cash, company check, cashier's check or bank wire. Personal & Company checks must be accompanied by a bank letter of guarantee. Checks are to be made payable to: KGI Machine Tool, LLC. Wire transfer instructions are listed on your invoice. All invoices must be checked at the time of sale as no adjustments will be made thereafter. All legal fees and charges due to nonpayment will be the responsibility of and paid by the purchaser. The purchaser shall not be entitled to possession of any part or parts of any of his purchases until the total purchase price of all his purchases has been fully paid. All sales are final. Successful Internet bidders will be notified by E-mail within 24 hours of auction ending. Internet bidder's payment must be received 24 hours after receipt of the e-mail notification to pay for their items.

3. SALES (EXEMPTION CERTIFICATE): All applicable Texas sales tax will be added to the purchase price of all taxable purchases unless purchaser files a written "proof of exemption" satisfactory to the Auctioneer and the governing authority. Sales tax for "out of State buyers" will be the responsibility of the purchaser to report and pay their applicable state sales tax.

4. WARRANTY: All items are sold on "as is - where is", "in place", "with all faults" basis with no conditions or warranties, whether expressed, implied, statutory or otherwise, including without limitation, warranties or conditions as to title, description, fitness for purpose, quantity, quality, merchantability, state, condition, location or otherwise. Any descriptions are meant only as a guide. The Auctioneer does not warrant the accuracy, genuineness, authenticity, description, weight, count or measure of any listing specified herein. The Auctioneer provides no warranty or guarantee either expressed or implied in the description or nomenclature. KGI Machine Tool, LLC assumes no liability for error or omissions associated with the auction sale. The buyer does hereby assume and does agree to indemnify and hold the auctioneer and seller harmless from any future claim which shall pertain to the fitness or use of the asset being purchased. All sales are final.

5. OWNER RESPONSIBILITY AND REMOVAL: Purchases become the responsibility of and shall be and remain at the risk of the Purchaser immediately upon acceptance of his bid. It is the responsibility of the purchaser to insure his purchases immediately. All purchases must be removed from the auction site within the time and according to the procedures announced. All cost, responsibility and risk shall be borne by the purchaser. A purchaser is deemed to have accepted a lot when he makes his bid. No equipment may be removed until complete settlement is made. All loading, rigging, removal and transportation are the responsibility of the purchaser. All heavy rigging requiring the use of forklifts, cranes, etc., whether performed by the buyer or a rigging company, will require the presentation of a certificate of insurance for a minimum of $1,000,000 naming KGI Machine Tool, LLC as the insured. Buyer hereby assumes full responsibility and sole risk for any assets purchased at the auction. Any assets left at the auction site shall be at the sole risk of the buyer. Buyer agrees to take all necessary precautions when removing equipment not to damage or destroy any personal or Real property and is responsible for any and all repairs or cleans up of site as a result of the removal process. No merchandise will be released during the Auction Sale. Buyer's wanting to hire riggers for removal must release their purchases to the riggers.

6. MANNER OF OFFERING: All assets in the auction shall be sold to the highest bidder; provided, however, that some assets may be auctioned with minimum reserve prices, and/or subject to seller's right of confirmation. The Auctioneer reserves the right to group, reduce, add or delete lots as well as accept or reject any or all bids. The Auctioneer reserves the right to sell items as it may deem appropriate. The Auctioneer/Seller reserves the right to bid on any lot at any time. The Auctioneer reserves the right to represent buyers via proxy at this sale. This is not an absolute auction sale.

7. DISPUTES BETWEEN BIDDERS: The Auctioneer may designate the Purchaser after each item of merchandise is auctioned. If a dispute arises between bidders, the Auctioneer may reopen the bidding or designate the purchaser. His designation is final.

8. AUCTIONEER: The Auctioneer shall have the right to resell any property not paid for within 48 hours after the Auction. The defaulting buyer agrees to indemnify and hold the Auctioneer harmless for any expenses of resale and collection and any damages resulting from resale. The Auctioneer can retain any deposits collected from defaulting buyers.

9. ADJUSTMENTS: Errors in estimates of merchandise inventory will be adjusted, but no adjustment will be made after merchandise has been moved from its place of sale, handled by the purchaser or after the removal dates as listed on the Sale invoice and announced by the Auctioneer at the start of the sale whether or not the property has been removed. All adjustments must be authenticated by KGI Machine Tool, LLC authorized personnel. In no cases will any adjustments be made after the property has been removed.

10. RECEIPT: The buyer will be furnished a computer receipt at the time of payment. This receipt must be presented to and authenticated by check-out personnel before Buyer will be permitted to remove purchases from the sale premises. No reproductions of this receipt may be used for check out.

11. BUYER'S PREMIUM: The Buyer's Premium is a commission charge paid by the Buyer. The Buyer's Premium is part of KGI Machine Tool, LLC compensation for auction services. KGI shall charge and collect for its own account a buyer's premium from each successful bidder a buyer's premium for each sale at the auction, in addition to the purchase price as bid.
Buyers Premium: 18%
Payment - Internet bidders are required to pay for their purchases immediately upon receipt of an electronic or paper invoice. Acceptable forms of payment include company or personal check with a bank letter of guarantee, bank check, and bank wire transfer. Credit cards are accepted only for Internet bidding registration, not payment of purchases.

If KGI Machine Tool, LLC has not received payment for winning bids 48 hours after bidders have been notified of their purchases, the bidder authorizes KGI to charge their purchases to the credit card left on file during the registration process.

12. By participating in an auction, each bidder represents, warrants and covenants that (i) it shall not misrepresent its ability to close the transaction pursuant to the terms and conditions of sale, (ii) it has the capacity to close the transaction, (iii) it has actual authority to enter a bid, and to enter into an agreement to purchase the item, and (iv) any bid it makes on an item constitutes an irrevocable offer to buy the item for the full amount of the bid.

13. KGI may, in its discretion, offer the assets for sale by the piece or the lot. In addition, KGI may augment this auction with assets from various sellers. These assets may be interspersed throughout the auction. The seller has the right to remove assets from the auction either before or after bidding has completed. In the event of a removal after bidding has been completed, the purchaser's sole remedy shall be the refund of any purchase price actually paid.

14. Neither KGI nor seller shall be liable for any damages of any type or nature (whether in contract tort or otherwise) sustained or claimed by any bidder or any other person or entity in connection with the auction. Without limiting the foregoing, in no event shall KGI 's liability to any bidder for any act or omission occurring in connection with the auction exceed the amount that such bidder has actually paid to KGI as a deposit or as payment for a purchased item.

15. Bidders acknowledge that an auction site is a potentially dangerous place. Flammable, noxious, corrosive and pressurized substances may be present. Heavy equipment may be operated, and electrical circuits may be live. Every person enters the auction site at his or her own risk with notice of the condition of the premises and the activities that will be or have been conducted on the premises. Bidders shall so advise their agents and employees. No person shall have any claim against KGI, the seller or their respective agents or employees for any injuries sustained or for damages to or loss of property that may occur at the auction site.

16. It is the purchaser's sole responsibility to meet all governmental safety and environmental standards in removing, shipping and using purchased items. Certain of the items for sale may contain "hazardous substances," as that term is defined under federal, state, or local environmental laws and regulations. KGI has no duty to remove any hazardous substances that are contained in or are a part of any item. Purchasers agree to defend (by counsel satisfactory to KGI ) and indemnify KGI and hold KGI harmless from and against any claim, demand, cause of action, liability or expense (including attorneys' fees and costs) asserted against or incurred by KGI in connection with the sale, removal, shipment, or use of any purchased items.

17. If the Auctioneer is unable to deliver an article sold to a purchaser due to fire, theft or any other reason whatsoever, the Auctioneer shall reimburse the purchaser for all monies paid to the Auctioneer in respect of the article and the Auctioneer shall have no further liability to the purchaser arising from or relating to such loss, including without limitation any damages or loss profits.

18. The Auctioneer reserves the right to refuse any applicant the privilege of bidding or attending at the auction and may revoke such privilege at any time.

19. No purchaser may assign, transfer or dispose of his rights in any article repurchased before he has paid the purchase price in full.

20. These terms and conditions, and all questions with respect to the interpretation of these Terms and Conditions, shall be governed by and construed in accordance with the internal laws of the State of Texas, without regard to conflict of law's provisions. All bidders expressly consent to personal and exclusive jurisdiction in the courts of the State of Texas located in Harris County.

FINAL REMOVAL: FRIDAY, August 22, 2014