Common use of Round 2 Clause in Contracts

Round 2. a. XXXXX will then issue public auction notice in two newspapers and public bids will be invited based on the reserve price so determined. b. All other bidders who wish to participate in the public auction will have to furnish EMD of 10% of the Reserve Price. Accordingly, the original buyer/bidder on the basis of whose offer, the reserve price has been fixed will have to furnish additional EMD of 5% of the reserve price in addition to the 5% (1%+4%) already furnished as a part of the process of fixing the Reserve Price. Thus, the total EMD would be 10% (1%+4%+5%) of the reserve price. c. In case buyer/bidder whose offer is considered for setting the reserve price, does not participate in the subsequent public auction, the EMD of 5% (1%+4%) submitted/furnished by the buyer/bidder/offeror i.e. Original Bidder will be forfeited. i. If in the public auction, there is one or more bidders, other than the original bidder on the basis of whose offer the reserve price has been fixed, then the bidding will be conducted among the bidders including the original bidder in terms of the public auction. The Original bidder would be entitled to match/better the highest bid in the public auction in terms of his right of first refusal. ii. However, if Original bidder does not exercise this option, he may withdraw from the process and his EMD of 10% (1%+4%+5%) will be returned provided he has participated in the public auction.