The following Terms and Conditions, as amended by Alpaca.com Online Auction® by posted notices during the auction, constitute the entire agreement between Alpaca.com®, L.L.C., Alpaca.com Online Auction® and the consignor (Seller), on the one hand, and bidders on the other hand.

AUCTION PROCEDURES:

REGISTRATION: Only registered and approved bidders may participate in the auction.

To register, prospective bidders must complete the registration form on Alpaca.com Online Auction®. The potential bidder will be contacted by a representative of Alpaca.com Online Auction® for an interview to discuss personal and financial references.

References will be used to assess the bidder's suitability for owning alpacas and his/her ability to pay for them. Financial and personal references are required by the Sellers. All financial information will be used by Alpaca.com Online Auction® in a manner designed to protect the privacy of all involved parties. Only those registrants approved by Alpaca.com following the personal interview will be allowed to participate in the actual auction. Approved bidders will be notified by email and provided with instructions needed to bid.

HIGH BIDDER: The highest bidder is to be the Buyer. If any dispute arises concerning this process, sole authority to settle the dispute is reserved by the Auction. Alpaca.com Online Auction® reserves the right to reject any and all bids, unless the lot is sold without reserve.

Bidding can be done in two different ways: Manual or PacaBid®. The bidder must select one of these options on the "Place Your Bid" page on each animal for which the bid is being placed. A full description of PacaBid® can be found on the How to Bid section of the auction.

The Buyer will receive a purchase contract from Alpaca.com Online Auction®. Buyer must return signed contract with appropriate deposit within 3 days of receipt of contract. Bank wire transfers or cashiers checks are acceptable. Facsimile copies of signed contracts are acceptable, legal and binding on all parties until original signed contracts are received by Alpaca.com Online Auction®. Late fee is subject to penalty fee of $150.00.

RESERVE: Auction sales are -unless explicitly stated otherwise- with reserve, that is, there is a reserve price. The reserve price is the lowest price for which a Seller is willing to sell an alpaca. This amount is generally higher than the minimum bid that starts the auction. In order to win the auction, a bidder must meet or exceed the reserve price and have the highest bid. If no bidders meet the reserve price, neither the Seller, high bidder, nor Alpaca.com Online Auction® is under any further obligation to complete the transaction. In no case will the reserve price be listed for viewing by bidders.

If the sale is to be without reserve, this must be listed in Seller's conditions of sale.

UNAUTHORIZED USE OF IDENTIFICATION NUMBERS: Any and all damages or losses resulting from the unauthorized use of the registered bidder's identification name/number will remain the responsibility of the registered bidder. The registered bidder agrees to indemnify Alpaca.com®, L.L.C., Alpaca.com Online Auction® and their agents from any and all damages resulting from such use.

WARRANTIES

Buyer agrees to look solely to Seller for all warranties and representations concerning the alpaca for sale. These are clearly and specifically stated on the Auction conditions of sale listing and constitute the total warranties and representations made by Seller.

Alpaca.com®, L.L.C., Alpaca.com Online Auction® and/or any of their agents assume no responsibility, liability, duty, obligation, either singular or plural and make no warranties as to title or quality including but not limited to health, defects, blemishes, breeding capacity, soundness or any other conditions of the alpaca and make no other kind of stated or implied warranties whatsoever.

Unless clearly stated to the contrary in the Auction listing provided by the Seller, the following conditions and warranties are provided by the Seller:

Bred females have been confirmed pregnant by a licensed veterinarian no more than thirty days prior to listing and are warrantied by the Seller to be pregnant at the time of listing and sale in the auction. All bred female alpacas sell with a live birth guarantee, which means that should the alpaca not have a live birth, the Seller's farm will rebreed the alpaca at no additional charge to the Buyer. In addition, if the alpaca is found to be unable to have a live birth, the Sellers, at their option, will replace the alpaca with another female alpaca of equal value or refund all monies paid by the Buyer for the alpaca. This warranty ends after the first successful live birth. Abuse or neglect of the alpaca on the part of the Buyer resulting in a lost pregnancy will nullify all warranties.

All bred female alpacas sell with a live birth guarantee, which means that should the alpaca not have a live birth, the respective Seller's farm will rebreed for free. Warranty ends after the first birth. Abuse or neglect on the part of the Buyer resulting in a lost pregnancy will nullify all warranties.

Maidens have been checked by a veterinarian and found to have anatomically correct reproductive organs and will be capable of becoming pregnant no later than their second birthday. There are no other expressed or implied warranties. Abuse or neglect on the part of the buyer resulting in the sterility of the male will nullify all warranties.

Proven males have settled a female, or been tested fertile within the last 60 days. There are no other expressed or implied warranties.

Young males have been checked by a veterinarian and found to have anatomically correct reproductive organs and will be capable of settling a female before the age of four. There are no other expressed or implied warranties. Abuse or neglect on the part of the buyer resulting in the sterility of the male will nullify all warranties.

Buyer must give written notice to the Seller of a perceived defect within 24 months of the auction for a female and 36 months of the sale for a male. Written Notice must include statement from veterinarian of any claimed abnormality. Seller has six months to verify problem. After confirmation of problem or abnormality, Seller will, at Seller's option, either: (1) replace the alpaca with an alpaca of equal quality, (2) give the Buyer credit towards the purchase from Seller of another alpaca of the same or different sex in an amount equal to the total amount of the purchase price or (3) give a refund of the purchase price paid at the auction.

TERMS

CASH SALE: Some auction lots are sold with full payment expected at time of purchase. Terms of these sales are cash to be carried out in U.S. currency. Cashier's checks should be made payable to Alpaca.com®, L.L.C. Bank wire information will be supplied to Buyer by Alpaca.com LLC. In no case should any payment be made to anyone other than Alpaca.com®, L.L.C. No alpaca purchased thereunder shall be shipped to Buyer until Buyer's check has been cleared and funds are available to pay Alpaca.com® L.L.C., commission and the balance due Seller.

FINANCED SALE: In some instances, the Seller may offer the Buyer the opportunity to purchase a lot on an installment contract. Terms of purchase are determined by Seller and clearly indicated in each lot listing prior to the beginning of the auction. As in the Cash Sale, cashier's checks or bank wires payable to Alpaca.com®, L.L.C., along with a signed agreement to pay the remainder of purchase price to Seller's farm will constitute the binding agreement for Buyer's purchase of the lot. Buyer, naming the Seller as loss payee, must insure the alpaca. Late payments are subject to a $150.00 late fee. Financed animals may not leave the United States until paid in full. The interest rate on loan balances will be 1% over the prime rate in effect on the first day of the auction and the finance period will be determined by Seller. Registration papers on financed animals will not be transferred to Buyer until they have been paid in full. All crias born to financed females will be registered in Seller's name until dam is paid in full. If Buyer requests permission to sell an offspring of a financed female, Seller will approve and transfer title to the new Buyer on the condition that all proceeds from this sale be applied to the outstanding balance on note or used to purchase a new alpaca from Seller. In like manner, financed herd sires will remain titled to Seller until paid in full. Stud fees derived from financed herd sires will be applied to outstanding balance on note until paid in full.

It is clearly understood and agreed by all parties that Alpaca.com Online Auction®, Alpaca.com®, L.L.C., and/or their agents have no interest in and/or liability for financed agreements between Buyer and Seller. All responsibilities of Alpaca.com Online Auction® and/or their agents end with the collection of the down payment and dispersal of those funds.

DEFAULT OF PURCHASE: If any person shall purchase an alpaca and not pay for it as described above, the Seller shall have the right to resell his alpaca through Alpaca.com Online Auction®. In the event of resale, the defaulting Buyer agrees to pay any deficiency between his original accepted bid price and the final selling price on the alpaca.

Anyone deliberately entering fraudulent bids with the intent of disrupting and/or damaging Alpaca.com L.L.C., the Alpaca.com Online Auction, The Sellers and/or other bidders will be prosecuted to the full extent of the law (see Governing Laws below).

If the Buyer defaults on the winning bid before signing the purchase agreement and tendering the deposit, the Buyer will be subject to a non-refundable transaction fee of 15% of winning bid amount per animal payable to Alpaca.com, L.L.C. The high bidder agrees to this penalty being charged against his/her credit card or any other collection means upon declaration of default being determined by Alpaca.com, L.L.C. (See Governing Laws - page 7).

If the Buyer defaults on the purchase after signing the contract and tendering the appropriate deposit, the Buyer agrees that the total deposit will be used to reimburse Alpaca.com, L.L.C and the Seller for any losses sustained as a result of the default.

The Seller agrees to hold Alpaca.com Online Auction, Alpaca.com, L.L.C and/or their agents harmless for any and all Buyer defaults and resulting losses to the Seller.

In like manner, the Buyer agrees to hold Alpaca.com Online Auction, Alpaca.com, L.L.C. and/or their agents harmless for any and all defaults of the Seller's part. In the event that the Seller defaults and/or refuses to finalize the transaction, Alpaca.com L.L.C will fully refund all of the Buyer's escrowed monies, if any. If the deposit has already been distributed prior to Seller defaulting on the transaction, the Seller must immediately reimburse Alpaca.com, L.L.C. all monies received in the transaction by the Seller.

If Alpaca.com, L.L.C. and the Alpaca.com Online Auction provide a valid Buyer for the alpaca and the Seller refuses to accept the offer for any reason and/or defaults on the transaction, the Seller agrees to pay Alpaca.com, L.L.C. the 15% commission of the purchase price offered by the Buyer and other appropriate fees described in the consignment agreement on the alpaca. A valid buyer in this instance is one whose purchase offer meets or exceeds the Seller's reserve price and whose proposed method of payment satisfies the terms and conditions listed by the Seller in the Alpaca.com Online Auction and the Seller.

TITLE AND REGISTRATION: It is understood that title and registration of the purchased alpaca will be transferred by Seller to Buyer only when 100% of purchase price plus accrued interest on financed alpaca have been paid. Until full payment is made, the alpaca remains the property of the Seller. Transfer cost for registration and title will be paid by Buyer.

Buyer agrees to look solely to Seller for registration materials, medical records, and other documentation pertinent to the alpaca for sale. Information on each alpaca, including pedigree and other important data, has been provided to Alpaca.com Online Auction® by the Seller. The Auction endeavors to have this information correctly stated, but no liability is assumed by Alpaca.com®, L.L.C., The Alpaca.com Online Auction, and/or their agents for its accuracy.

TRANSPORTATION: Seller offers to pay one round-trip coach airfare for the potential Buyer who wishes to visit Seller's farm and personally inspect alpaca to be purchased. If a purchase of at least $20,000 is made, Seller will pay Buyer's travel expenses up to a maximum of $500. This amount will be deducted from the total sale price of the alpaca. No travel allowance will be paid if potential Buyer does not purchase alpaca(s) with a minimum value of $20,000.

On all sales of $10,000 or more, Seller will pay up to $300 for shipment of the alpaca to the Buyer's address anywhere in the continental U.S.A. Any shipping charges in excess of $300 will be paid by the Buyer.

If other conditions permit, the Buyer may receive shipment of the alpaca at the time determined by Seller and described in the Terms of Sale portion of each animal's listing in the auction.

RISK OF LOSS: Risk of loss for the alpaca becomes the Buyer's upon execution of the purchase contract. Buyer agrees to keep the alpaca fully insured while the animal remains with Seller. On financed animals, Seller is to be named as loss payee. Buyer agrees to pay for insurance, exam and related expenses.

BOARDING: Seller offers up to 60 days of free board following completion of sale. If the alpaca remains at the Seller's farm after 60 days, Buyer will pay Seller $3.50 per day payable 30 days in advance.

The Buyer may be asked to sign the Seller's agistment (boarding) agreement to cover the period of time the alpaca remains at the Seller's farm. In no instance shall this agreement have content contrary to the terms and conditions of the Alpaca.com Online Auction and/or the purchase agreement on the alpaca.

INSURANCE: Full mortality insurance must be carried on all purchased alpacas until paid in full. Buyer will pay for this coverage and Seller will be listed as a loss payee.

Risk of loss insurance is also required and will be paid by Buyer with Seller as loss payee.

WITHDRAWAL OF RIGHTS: Alpaca.com Online Auction® reserves the right to withdraw any alpaca from the Auction without liability to anyone.

GOVERNING LAWS:

The sale and all related transactions between Buyer, Seller, and/or Alpaca.com®, L.L.C., Alpaca.com Online Auction®, The Alpaca Gallery® and/or their agents will be governed by the laws of the State of Michigan. No provision of this agreement can be waived except in writing. If any term, covenant, condition or provision of this agreement is held to be invalid, void or unenforceable, the remaining provisions shall remain in full force and effect.

While the standard purchase agreement on the alpaca, which is signed by Buyer and Seller, typically establishes Buyer and Seller legal venue in the state in which the Seller has residence, all parties agree that no suit or action against Alpaca.com, L.L.C., the Alpaca.com Online Auction and/or their agents may be maintained in any court other than the state courts of the County of Washtenaw, Michigan or the federal courts of the Eastern District of Michigan. In this instance, any suit or action brought by Buyer and/or Seller against Alpaca.com, L.L.C., the Alpaca.com Online Auction and /or their agents concerning this transaction will consider the Michigan venue to supercede any other venues stipulated in other documents pertaining to the sale transaction.

In the event of suit or action against Alpaca.com®, L.L.C., Alpaca.com Online Auction® and/or their agents arising directly or indirectly out of this agreement, the losing party shall pay the prevailing party(s)' attorney fees and related expenses in any trial, appellate or arbitration proceedings.

Losing party is defined as the party whose written offer to settle -made within 30 days of the filing of such an action or proceeding- is furthest away from the final award (exclusive of these fees and expenses). This offer to settle may be revised during the proceedings, and each period between such offers shall be subject to these sanctions separately. If no written offer is made, the amount shall be deemed to be zero.

Please Note: Any successful high bidder/winning bidder who does not follow through in a reasonable and timely way to fulfill their contractual obligations at the end of the auction will be assessed a transaction fee of 15% of winning bid amount per animal. This transaction fee is non-refundable. Bidder/Buyer must sign alpaca purchase agreement and send alpaca contract with designated check within 72 hours upon receipt of contract from Alpaca.com. If buyer defaults, Alpaca.com notifies defaulting bidder and places the animals up for sale again. Thus, the defaulting Bidder is liable for the difference between what the alpaca sells for in the next auction and what they purchased it for plus the amount for any legal transaction costs needed regarding the defaulting buyer and the 15% of winning bid amount transaction fee per alpaca. Bidding in the Online Auction is a serious legal transaction and we will prosecute and follow through on any fraudulent use of our auction. All bids are final.

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