TERMS OF SALE – August 20, Fernwood Bearings, LLC, 167 Elm Street, Old Saybrook CT

NOTICE: By bidding on any lot you are creating a contract to buy. Failure to pay for any lot won will be a breach of your contract. The Auctioneer and Salvadore Auctions & Appraisals, Inc. reserves all rights to remedy any breach of contract by any bidder. 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. 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 Fernwood Bearings LLC, including his 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 present identification upon demand and shall sign the within 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: All bills and/or invoices due must be paid and received in full in US Dollars by Auctioneer at the conclusion of the auction held on August 20, 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. METHOD OF PAYMENT: cash, valid credit card with executed authorization form, known check with proper ID. ALL SALES FINAL REGARDLESS OF MANNER OR METHOD OF PAYMENT. BUYERS PREMIUM: A Eighteen percent (18%) Buyers Premium will be charged and shall apply to all lots sold. A three percent (3%) discount will be allowed for payment in cash or approved check. Successful online bidders will be subject to a additional three percent (3%) buyers premium. SALES TAX: All items are subject to CT Sales Tax unless a copy of your resale certificate or a blanket exemption is received at time of

invoicing. Auctioneer has not taken possession of Equipment being offered at auction and is acting as an agent of the Seller only.

4) CONDITION/REPRESENTATION OF EQUIPMENT SOLD: The Auctioneer and the Seller shall not be responsible for the accuracy or correctness of the description of the Equipment. The Auctioneer and the Seller 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 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 at the conclusion of the auction on August 20, 2014. All payments must be made via cash, bank check, certified check and/or wire transfer or authorized credit card.

8) NOCREATIONOFBAILMENT: The relationship between the Auctioneer, Salvadore

Auctions & Appraisals, Inc and the buyer is not bailment.

7) REMOVAL & SECRUITY OF LOTS PURCHASED: THESECURITYOFANYLOT WONLIESWITHTHEPURCHASERANDBEGINSWITHTHEFALLOFTHE HAMMER.All purchases must be removed by August 25, 2014 unless alternative time frame has been agreed to in writing by the Seller and the bidder. All small items of Equipment should be removed immediately following the conclusion of the sale. No Equipment shall be removed during the sale. Unless agreed to in writing by the Seller and the Purchaser, Seller shall not assist in the movement, loading, removal or relocation of any equipment. Removal shall be at the sole expense, 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 August 25, 2014 shall be deemed to be abandonment of such Equipment and the Seller or Auctioneer shall be entitled to dispose of such Equipment for its own account and in any manner it chooses, unless otherwise agreed to in a writing signed by the Seller and the Purchaser. 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 for hire shall present a valid insurance certificate demonstrating coverage of US $2,000,000.00 to the Seller 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 the Equipment after August

22. 2014.

7) INDEMNIFICATION: The undersigned agrees to hold the Auctioneer, Salvadore Auctions & Appraisals, Inc., and the Seller, along with their respective agents, officers, directors, shareholders, partners, members or affiliates harmless, now and forever, 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 Seller in regard to the inventory count of any item. No metal or lot of metal is being sold, represented or warranted as certified to any specification of alloy of composition whatsoever.

9) RESPONSIBILITY OF NON- DELIVERY: Auctioneer 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,

damage or loss to person and property and release the Auctioneer, Salvadore Auctions & Appraisals,

Inc. from any and all liability. The Auctioneer 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 from any and all claims arising from

attendance at this auction and hereby hold harmless the Auctioneer Salvadore Auctions &

Appraisals, Inc. 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 conclusion of the auction on August 20, 2104 and/or by failure to remove the

Equipment by August 25, 2014, Auctioneer and the Seller 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.