Commissions and Fees

Cash savings to you…. Selling your equipment through Hodgins Online Auctions makes sense, plain and simple.

We showcase your equipment to the world via our website in order to generate great prices. There are no transportation costs or hidden costs along the way. Our overhead is low and can be passed on to you in the form of lower commissions and fees. We offer our “Guaranteed Inspection Reports” which provides confidence and assurance to the buyer which results in great prices for the seller.

Check out the savings in our Online Auction versus a traditional auction. This example is based on a $50,000 piece of equipment.

Commissions

For each sale in a Showcase Auction, Signature Auction or Immediate Purchase Listing, Hodgins Online Auctions shall deduct from the payments made to the seller a commission fee (the "Commission Fee") equal to a percentage of the auction closing price ("Final Selling Price") as set forth in the table below. All commissions will be charged and shall be paid in Canadian dollars. The seller's commission will be deducted from the Final Selling Price upon completion of the sale.

Please Note: Additional Fees may be added for some specialized items or auctions requiring extra marketing expenditures.

Listing Fees

For each piece of Equipment that a seller lists, the seller agrees to pay to Hodgins Online Auctions a listing fee. The Listing Fee covers, among other costs, the cost of the Equipment inspection.

INSPECTED EQUIPMENT

• $500 for the first item, $400/item for additional items at the same location.

• Smaller Pieces - Hodgins Online Auctions may quote listing fees for smaller equipment requested to be inspected on a case-by-case basis. Any special rates must be agreed upon in writing prior to a signed listing contract being submitted, or the regular rates listed above will apply.

UNINSPECTED EQUIPMENT

• $75 per piece of equipment

Showcase Auction Listings - Auctioneers will deduct the Listing Fee from the proceeds arising from the sale of your equipment. If your Equipment does not sell, you will not be assessed a Listing Fee (unless the Equipment is subject to a Removal Penalty, as described below).

Signature Auction Listings - You must pay this non-refundable Listing Fee prior to the first Signature Auction period for the Equipment.

Immediate Purchase Listings - You must pay this non-refundable listing fee prior to the first listing period for the Equipment.

ADDITIONAL FEES

Lien/Encumbrance Search Fee - A Lien or Encumbrance search fee may be imposed on any unit of Equipment in order to verify clear registration and ownership including outstanding lien or other encumbrance balances. The current fee for this search is $25.00.

For Showcase Auction listings, Auctioneers will deduct this lien/encumbrance search fee from the proceeds arising from the sale of your Equipment through Hodgins Online Auctions. For Signature Auction listings or Immediate Purchase Listings, you must pay this non-refundable fee prior to the first Signature Auction period or Immediate Purchase Listing period for the Equipment.

Should the Equipment which has previously been inspected by Auctioneers be altered or modified in any way that might affect the integrity or accuracy of the listing details, a minimum Re-inspection Fee of $350.00 (Canadian) will be paid to Auctioneers. This re-inspection fee will be required in order to proceed with an auction. Auctioneers reserve the right to determine the exact amount of the Re-inspection Fee for any Equipment requiring re-inspection.

Reserve Price Fee - For each Signature Auction or Immediate Purchase Listing with a Reserve Price, the seller agrees to pay to Hodgins Online Auctions a reserve fee ("Reserve Price Fee") of 2% of the reserve price to a maximum of $750.00 per item.

The Reserve Price Fee is non-refundable, is based on the reserve price entered at the time of Equipment Listing, and must be paid prior to each Signature Auction period or Immediate Purchase Listing period.

PENALTIES

Removal Penalty Prior to Signature Auction Close (Reserve not met) - If, for any reason, the seller withdraws a piece of Equipment listed in a Signature Auction from the Hodgins Online Auctions Site after the time of Equipment Listing but before the Reserve Price is met or before the auction closes, the seller agrees to pay Auctioneers a removal fee equivalent to the greater of (i) 2% of the Reserve Price (as set by the seller) or (ii) $50 ("Removal Penalty Prior to Signature Auction Close"). If, for any reason prior to the auction close, Auctioneers removes Equipment from a Signature Auction due to seller's violation of the On-Line Consignment Agreement, the seller agrees to pay Auctioneers the Removal Penalty Prior to Signature Auction Close.

Removal Penalty Prior to Signature Auction Close (Reserve met) - If, for any reason, the seller withdraws a piece of Equipment (or causes Auctioneers to withdraw their Equipment in violation of the seller's Online Consignment Agreement listed in a Signature Auction after the Reserve Price is met, the seller agrees to pay Auctioneers a Default Penalty ("Seller Default Penalty") equivalent to the Commission Fee of the winning auction closing price as if the Equipment were sold, plus the Listing Fee.

Removal Penalty Prior to Showcase Auction Close - If, for any reason, the seller withdraws a piece of Equipment listed in a Showcase Auction from the Hodgins Online Auctions Site after the time of Equipment Listing but before the auction closes, the seller agrees to pay Auctioneers a removal fee equivalent to the Listing Fee plus the greater of (i) the commission fee for the opening bid (as set by Auctioneers) or (ii) the commission fee for the highest bid submitted for the Equipment to the Hodgins On-Line Auctions site ("Removal Penalty Prior to Showcase Auction Close"). If, for any reason prior to the auction close, Auctioneers removes Equipment from a Showcase Auction due to the seller's violation of the Online Consignment Agreement, the seller agrees to pay Auctioneers the Removal Penalty Prior to Showcase Auction Close.

Removal Penalty Prior to Immediate Purchase Listing Close (Reserve Met) - If, for any reason, the seller withdraws a piece of Equipment (or causes Auctioneers to withdraw their Equipment in violation of the seller's Online Consignment Agreement listed in an Immediate Purchase Listing, after the Reserve Price is met, the seller agrees to pay Auctioneers a default penalty ("Seller Default Penalty") equivalent to the Commission Fee of the winning bid closing price as if the Equipment were sold, plus the Listing Fee.

Removal Penalty Prior to Immediate Purchase Listing Close (Reserve Not Met) - If, for any reason, the seller withdraws a piece of Equipment listed in an Immediate Purchase Listing from the Hodgins Online Auction Site after the Equipment Listing but before the Reserve Price is met or the auction closes, the seller agrees to pay Auctioneers a removal fee equivalent to the greater of (i) 2% of the Reserve Price (as set by the seller) or (ii) $50 ("Removal Penalty Prior to the Immediate Purchase Listing Close"). If, for any reason prior to the auction close, Auctioneers removes Equipment from an Immediate Purchase Listing (due to seller's violation of the Online Consignment Agreement), the seller agrees to pay Auctioneers the Removal Penalty Prior to the Immediate Purchase Listing Close.

Unauthorized Equipment Use Penalty - If, for any reason, the seller operates, leases, rents, modifies, uses or allows Equipment sold in a Hodgins Online Auction to be altered in any manner whatsoever between the time of Equipment Listing and buyer removal of the Equipment from the seller's location, the seller agrees to pay Auctioneers an Unauthorized Use Fee equivalent to the Commission Fee of the final sale price as if the Equipment were sold, as well as any unpaid Listing Fee ("Unauthorized Equipment Use Penalty"). In addition, if the Equipment has been delivered to the buyer, the seller will also be responsible for any and all transportation and freight costs associated with the delivery of the equipment to the buyer's location and the removal of the equipment from the buyer's location. In either case, registration and/or ownership and risk of loss will not transfer to the buyer and the seller shall not receive any of the proceeds associated with the sale.

Post-Auction Delay Penalty - If, for any reason, after Auctioneers have notified the buyer and seller of its receipt of full payment from the buyer and at least one (1) business day has passed after the close of an auction and the seller does not have the Equipment in a condition "ready" for transport, or otherwise delays the release of the Equipment, the following shall occur:

• The Seller shall be responsible for full payment of all additional expenses incurred by the Buyer and/or Auctioneers due to the seller's delay ("Post-Auction Delay Penalty"). These expenses may include, but are not limited to, transportation cancellation or re-scheduling fees, transportation delay fees, rental cost of equivalent replacement equipment for the buyer, including loading, unloading and transportation costs.

• Auctioneers may assess the Post-Auction Delay Penalty at its discretion. These additional expenses will be deducted from the proceeds of sale after buyer acceptance (or Deemed Receipt), but prior to transferring payment to the seller.

Seller Default Penalty - If, for any reason, the seller fails to release Equipment sold in a Hodgins Online Auction to the buyer or buyer's authorized transportation carrier, or if the seller is incapable of releasing the Equipment, the seller agrees to pay to Auctioneers a Default Penalty ("Seller Default Penalty") equivalent to the Commission Fee of the winning auction closing price as if the Equipment were sold, plus the Listing Fee.