Michael J.

Fergus, Realtor and Licensed Auctioneer

Direct: (440) 221 7502 Fax: (440) 974 2345 mikefergus1@gmail.com

PROGRESSIVE RESERVE AUCTION: LISTING ADDENDUM

(Auction Contract)
This Addendum modifies the terms and conditions of the Exclusive Right to Sell Listing Contract (Contract) entered into by Seller and PRUDENTIAL, FOX & ROACH (Broker) on ______________. In consideration of the mutual promises contained herein, Seller, Broker and Michael J. Fergus (Auctioneer), agree that the Contract is modified as follows:

AUCTIONEERS RESPONSIBILITIES AND AUTHORITY:

Michael J. Fergus is a licensed auctioneer. From the moment of the signing of this agreement to the sale and transfer of the property or the final date for the submission of bids, Michael J. Fergus shall assume all marketing and seller representation oversight. These include, but are not exclusive to advertising, promotion, buyer and agent communication, negotiation, and contracts. Sellers Broker shall retain certain marketing rights including multiple listing service and all other normal venues, with responsibility for reflecting auction activities. Sellers Broker and Sellers Agent shall perform no real estate services for the Seller during the Auction Period without the approval of the Auctioneer, who will not require that services be withheld unreasonably. Auctioneers activities shall conform to New Jersey law. Auctioneer and Sellers Broker activities shall conform to New Jersey law and rules of the New Jersey Board of Realtors. Auctioneer shall be responsible for the completion of all closing activities. All other rights and responsibilities shall return to the sellers broker upon the sale and transfer of the property or the final date for the submission of bids. Michael J. Fergus, Auctioneer assumes all of the responsibilities and fiduciary duties attendant upon an agent of the seller.

LISTING AND AUCTION:

This Addendum does not constitute a real estate listing by the Auctioneer. The Brokers Exclusive Right to Sell Agreement shall remain unchanged except where specifically modified by this Addendum. This addendum does not constitute an exclusive right to sell. The Progressive Reserve Auction shall commence upon the signing of this document or a predetermined date. Bids may be submitted at any time during the Auction Period. The auction shall end when the seller and a buyer sign a Purchase Agreement or when the Auction Period passes without a bid producing a Purchase Agreement signed by the Seller and a buyer. At this time the listing agent shall immediately have authority to return the listing and marketing to the standard listing format. All potential buyers who view or inquire into purchasing the property during the Auction Period shall be considered a product of the auction process. Should such buyer present an offer within 90 days after the end of the Auction Period, the Seller will be responsible for compensating the auctioneer by paying the Three Percent (3%) Auction Fee should the offer produce a written Purchase Agreement.

PLACE AND DATE OF SALE:

Seller agrees to the sale of Sellers Property_____________________________________, through the process of a Progressive Reserve Auction conducted by Auctioneer as set forth herein (Auction). The Progressive Reserve Auction period shall commence on __________________ and end on ____________ (the Auction period). Seller reserves the right to remove the property from the auction at any time, thus ending the Auction Period. Should this property not sell by the end of the Auction Period, marketing shall revert to normal real estate listing format. This auction will be conducted from the auctioneers offices.

Sellers Initials: _________ / ________

Date: _______

Michael J. Fergus, Realtor and Licensed Auctioneer

Direct: (440) 221 7502 Fax: (440) 974 2345 mikefergus1@gmail.com

The Seller authorizes the auctioneer to establish, maintain, and modify the Auction Date in the real estate Multiple Listing Service. Changes in the Auction Date may occur several times within the Auction Period. Seller understands that the Auction Date is a marketing tool and does not reflect a specific date for submission of bids or end date for the Auction Period. Should the property not sell by the soonest Auction Date which has not expired, the Auction Date will be changed to the soonest unexpired date in the following list: 1._______________________________________ 2._______________________________________ 3._______________________________________ 4._______________________________________ 5._______________________________________ 6._______________________________________

AUCTION DATES:

PrOGreSSiVe reSerVe aUctiON exPLaiNeD:

A Progressive Reserve Auction is a reserve auction in which bids may be submitted until a predetermined end date or until a purchase agreement is entered into by the Seller and Buyer, whichever occurs first. The Auctioneer provides guidelines for prospective buyers including Buyer Instructions, and Terms and Conditions for bid submission. Bids are reviewed and presented to the seller on an on-going basis. The goal of this competition is to produce the highest and best bid. The Seller reserves the right to accept or reject all bids. The Seller reserves the right to negotiate with any and all bidders. The Seller or a person acting on Sellers behalf may bid in the Progressive Reserve Auction providing Auctioneer makes full disclosure of sellers right to bid before the bidding begins. (See Progressive Reserve Auction Terms and Conditions). The seller has the right to withdraw the property prior to the completion of the auction by the auctioneer.

Because this is an Auction, a List Price does not apply. Instead, an advertised price is published which is the Suggested Starting Price for bids. The Seller is not required to accept an offer at this, or any, price. The Advertised Price for this Progressive Reserve Auction is $_____________.

ADVERTISED PRICE:

SELLER ASSIGNMENT OF RESPONSE TO BELOW ADVERTISED PRICE BIDS:

In the event that bids are submitted at a price below the Advertised Price (Suggested Starting Price for Bids), the Seller may assign their Bid Response to the Auctioneer. The Seller ___________________ (Initials) _____ Agrees _____ Disagrees to assign their bid response in this circumstance.

SELLER ASSIGNMENT OF SELLERS BID TO AUCTIONEER:

Auctioneer shall make every effort to consult with Seller prior to entering a Bid on the Sellers behalf. However, immediacy and circumstance may dictate the advantage of an immediate response by the Auctioneer. In such case Seller agrees that the Auctioneer shall use his best discretion to enter a bid on the Sellers behalf, the goal being to increase buyer bid price. The Seller ___________________ (Initials) _____ Agrees _____ Disagrees to permit the Auctioneer to bid on Sellers behalf.

Sellers Initials: _________ / ________

Date: _______

Michael J. Fergus, Realtor and Licensed Auctioneer

Direct: (440) 221 7502 Fax: (440) 974 2345 mikefergus1@gmail.com

Auctioneer agrees to use his best efforts to obtain the highest bid for the Property through the Auction process. Auctioneer does not guarantee performance by the high bidder, and Seller shall hold Auctioneer harmless should the high bidder not perform and/or the sale envisioned herein not close, unless such non-performance or failure results from Auctioneers acts or omissions.

PERFORMANCE:

AUCTIONEERS COMPENSATION:

As full and complete compensation for all services to be rendered in accordance with this Agreement, Auctioneer shall be compensated by the payment of the Auction Fee in the amount of Three Percent (3%) deducted from the Buyers Offer. This fee shall be reflected in the Sellers closing settlement as a fee paid from the Sellers proceeds. Prudential Fox and Roach Realtors and the Jeff Quintin Real Estate Super Team are compensated by the Auctioneer for services provided.

CONDITIONS OF THE AUCTION:

The Auction will be conducted pursuant to the following conditions: (1) the Auctioneers decision is final in the event of a dispute over any Auction matter; the Auctioneer reserves the right to accept bids in any increments he/she feels are in the best interest of his/her clients; (2) the Auctioneer reserves the right to bid on behalf of any buyer (Subject to Sellers consent as set forth herein); (3) all Auction Sales Contracts will be presented to the Seller for approval; (4) the Auctioneer reserves the right to withdraw any property including property to be sold at Absolute Auction from the Auction, without penalty; (5) the Auctioneer may elect to cancel the Auction without penalty if Auctioneer believes that the outcome will not be in the Sellers best interest; (6) it is Buyers responsibility to check with the appropriate authority/authorities regarding the Propertys zoning and current or future intended use, as well as any restrictions or covenants affection the Property; (7) bidder(s) has/ have the right and should examine the applicable county master plan and any municipal land use plans and maps for the area in which the Property is located prior to bidding; (8) the Seller, Auctioneer and agents assume no responsibility for the information contained in said plan(s) and assume no liability for failure by Buyer to review the plans; and (9) the purchase/ sale contract will not be contingent upon bidder(s) review of such plans. Auctioneer complies with all federal, state and local laws regarding the buying and selling of the Property. Auctioneer may amend or supplement the forgoing conditions relative to specific auction rules at any time prior to the start of the auction.

ENTIRE AGREEMENT:

The Exclusive Right to Sell Agreement, together with this Addendum and any Exhibits attached hereto, constitute the entire agreement between the parties. No amendments or changes to the Contract shall be effective unless set forth in writing, dated and signed by all parties.

MISCELLANEOUS:

This addendum to the Exclusive Right to Sell Agreement shall be binding upon and inure to the benefit of the parties hereto, their heirs, executors, administrators, personal representatives, successors, assigns, and trustees. Seller hereby acknowledges receipt of a copy of this Addendum and any exhibits attached. All terms and conditions stated in the Exclusive Right to Sell Agreement not inconsistent with this Addendum shall remain in full force and effect.

Sellers Initials: _________ / ________

Date: _______

Michael J. Fergus, Realtor and Licensed Auctioneer

Direct: (440) 221 7502 Fax: (440) 974 2345 mikefergus1@gmail.com

PROGRESSIVE AUCTION ADDENDUM

For (Address):

Michael J. Fergus, Licensed Auctioneer

Date:

PRUDENTIAL, FOX & ROACH, 5501 WEST AVENUE, OCEAN CITY, NEW JERSEY/MICHAEL ALEGRETTO Cooperating Listing Broker JEFFREY QUINTIN Authorized Representative Printed Name

Signature

Date:

Seller(S): Printed Name Signature Date

Printed Name

Signature

Date

Sellers Initials: _________ / ________

Date: _______