Rules governing the Conduct of the Auction

The following rules apply to the conduct of this sale of real estate by public auction by:

1) All bidders must be registered and display an identifying number when making a bid.

2) The sale is subject to a reserve price which the Seller or the Agent must give in writing to the auctioneer before the auction begins.

3) During the course of the auction, if the reserve price has not yet been achieved, the Auctioneer may introduce a bid on behalf of the seller (Seller Bid). Only one seller bid may be introduced and, if so made, will be announced clearly and precisely by the Auctioneer.

4) The highest bidder is the buyer, subject to any reserve price. The reserve price will not be disclosed to anyone other than the Seller, the Agent, and the auctioneer. The auctioneer may announce when the reserve price has been met or exceeded. In the event the bidding does not meet or exceed the reserve price, the property will be "passed by" (withdrawn from auction) by the Auctioneer.

5) In the event of a disputed bid, the auctioneer may resolve the dispute or restart the auction at the last undisputed bid. The Auctioneer is the sole arbitrator and the Auctioneer's decision is final.

6) The auctioneer may refuse any bid.

7) No person shall bid on behalf of a principal, unless they have delivered a Power of Attorney (or appointment of agent authorization) to the Agent upon registration or to the auctioneer before the auction begins.

8) All sales are final. A final sale will be made when the auctioneer announces a final sale by the fall of the hammer. A bidder may not retract a bid after the hammer has fallen.

9) The auctioneer shall determine the increments of the bidding and may, at his option, refuse bids below these increments.

10 ) Any person bidding should be deemed to have read and accepted these Rules for Conduct of the auction as well as the Conditions of Sale set out below.

11) Any successful bidder who has failed to perform under these rules and regulations will be ineligible to register and bid at any other macauction®.

Conditions of Sale

In addition to the above rules for the conduct of the auction, the following Conditions of Sale apply to the Auction and sale of the Property:

a) The Seller is free to withdraw the Property from the market prior to the Auction. The Seller may also sell the Property prior to the commencement of the Auction. In such event, the Seller and the Agent are under no further obligation to any registered bidder.

b) Where the successful bidder acts for a principal but has not delivered a power of attorney or appointment of agent as required by the above Rules for Conduct of the auction, the seller may treat the bidder as acting personally.

c) A contract of purchase and sale between the seller and the successful bidder will be deemed to come into effect when the auctioneer brings down his hammer and so declares the bid the successful bid. The successful bid as declared by the auctioneer when he brings down his hammer will be the final purchase price (not including any applicable taxes). The successful bidder or his principal as declared by the auctioneer when he brings down his hammer will be the buyer. Otherwise, all other terms of the contract of purchase and sale for the property as between the seller and the successful bidder as buyer will be the terms of the contract of purchase and sale contained in the Bidder Registration package, with any changes to the completion date agreed to by the Seller prior to the commencement of the auction.

d) All bidders will be deemed to have received and to have read and agreed to the terms set out in the Contract of Purchase and Sale, and in this Auction Rules, Conditions of Sale and Disclaimer.

e) Immediately after the Property is knocked down to him by the fall of the hammer, the successful bidder: (i) must sign on his own behalf or on behalf of his principal the form of contract of purchase and sale contained in the Bidder Registration package, completed with buyer's name and the purchase price, and (ii) deliver the deposit provided for under the contract of purchase and sale by way of cheque, bank draft, or money order payable to the Agent in trust;

f) If the successful bidder fails to comply with condition e), the Seller will be entitled to treat the contract as repudiated and to request the auctioneer to immediately put the Property up for sale again or to withdraw it or to take action against that bidder to enforce the contract.

Macdonald Realty Ltd will not knowingly permit any collusion in the bidding process. In particular, Macdonald Realty Ltd will not knowingly allow or condone any collusive practice which results in any person making a sham or "dummy" bid, abstaining from bidding, bidding to a limited extent or doing any other act or thing which prevents free and open competitive bidding.