SECURED CREDITOR AUCTION - FORMER BACKPACK MANUFACTURER - MARCH 27, 2010 - MUENSTER, TX

TERMS AND CONDITIONS

1.   This is a Public Auction. Prospective bidders must agree to these terms and present a valid driver's license or acceptable photo I.D. to obtain a bidder card. There is no charge to register.

2.   Payment accepted by Cash, Cashier's Check, Check with bank letter of guarantee, VISA, MC or Wire Transfer (with 25% immediate deposit). Company or personal checks must be accompanied by a Bank Letter of Guarantee made out to Jones Swenson Auction Marketing only. Here is an example of what your letter should be: Mr./Mrs. "Customer Name" is a customer of this bank. This bank will guarantee unqualified payment to Jones Swenson Auction Marketing on account #______ up to the amount of $_______. This bank will not allow stop payment on this check. This letter is good until April 12, 2010". Wire transfer information is available through the Auctioneer's office. All wire transfers must be received by close of business on the day after the auction. All payment methods must be approved by Auctioneer prior to bidding. No purchases will be moved until paid for in full.

3.   A 10% Buyers' Premium will be added to each item purchased on site and a 13% Buyers' Premium will be added to each item purchased via online bidding through Proxibid.  

4.   Sales tax will be charged unless the buyer has a dealer's resale number that is directly related to the industry that is being sold or if the equipment is being shipped out of state via commercial shipper. Bidders should present their resale information at the time of registration.

5.    All items in the sale are being sold, "as is, where is" without warranties or guarantees of any type and with all faults. AUCTIONEER AND SELLER EXPRESSLY DISCLAIM AND EXCLUDE THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. Bidders should rely solely on their own inspection of all items prior to the sale and should satisfy themselves as to the usefulness and value of each item. Any error in description made by the Auctioneer or Seller does not relieve the buyer or his agent of their responsibilities. Any dispute among bidders will be settled by the Auctioneer at his sole discretion, and his decision and remedy will be deemed final. Any deletions or additions to the sale will be announced by the Auctioneer, either before or during the sale.

6.   Jones Swenson Auction Marketing specifically disclaim all liability for compliance of any property sold at auction with safety standards or regulations issued by the U.S. Department of Labor's Occupational Safety and Health Administration ("OSHA") applicable to the property or machinery of similar type. The buyer assumes all responsibility for any modifications (including but not limited to the addition of guards or other safety devices) which may be required in order to bring the property into compliance with applicable OSHA or other national, state or local safety standards.

7.   Seller, Auctioneer and buyer expressly agree that Buyer is responsible for and agrees to indemnify Seller, Auctioneer and their respective affiliates for any and all damages (whether based on contract, tort, warranty, negligence, strict liability or any other legal theory, and including special, incidental and consequential damages), losses, expenses, attorneys' fees, court costs, etc., that arise out of or result from the removal, possession or use of any  items purchased at auction, or any other claim regarding the use or possession of any asset purchased at auction.

8.   Removal: Equipment may be removed on Auction day and then on Monday March 29 from 9am until 4 pm. Deadline for removal is March 29^th at 4 pm CT. Any concerns regarding removal should be addressed to Auctioneer 72 hours prior to auction. Seller and Auctioneer must approve any exceptions to this deadline in writing. Buyers assume all responsibility for removal, packing, handling & transportation of purchases.

9.   The Auctioneers will not be responsible for property acquired that is not removed within the time period allowed nor will they be responsible for any smalls that are not removed on auction day. Any item not removed on time will be deemed abandoned. Buyer accepts full responsibility for all costs incurred by Auctioneer or seller for removal/storage/disposal of abandoned merchandise.

10. Announcements on sale day supersede any and all previously released information including all oral or printed matter regardless of the medium. Seller and Buyer hereby disclaim the applicability of the United Nations Convention on Contracts for the International Sale of Goods for any item purchased at auction.

12. All buyers must acknowledge and accept by signature the Terms and Conditions provided at the time of registration. Any questions regarding Terms and Conditions should be directed to email: info@jonesswenson.com or call (972)387-1110. Questions regarding specific pieces of equipment should be submitted to Auction Manager: Carl Naylor carl@jonesswenson.com . Please check our website www.jonesswenson.com for up-to-the-minute auction information. All auctioneers are licensed by the Texas Department of Licensing & Regulation.

W. Scott Swenson, CAI, GPPA TX Auctioneer #7809

Dallas Office: (972)387-1110

Austin Office: (512)261-3838

www.jonesswenson.com

Proud Members of the Texas & National Auctioneer Associations