The term "Seller | Authorized Agent | Prime Contractor" refers to the United States Marshals Service, Apple Towing Co. | Apple Auctioneering Co., and Cazador Investments, LLC. In addition, Apple Towing Co. | Apple Auctioneering Co. is conducting this auction as a sub-contractor on behalf of Prime Contractor, Cazador Investments, LLC. General Information: The placement of a successful bid at a United States Marshals Service auction establishes a legally binding contract between the successful high bidder and the United States Marshals Service. The auctioneer's announcement of the high bid amount and the bidder's number establishes the contract which may be subject to final acceptance by the Government. This contract is bound by these Terms and Conditions as well as special terms and conditions published by the Contractor for the specific auction and other Federal regulations governing contracts for the purchase of government property. The successful bidder is legally bound to pay for property awarded in accordance with his/her bid. The contractor is acting as the agent of the Government with respect to the sale of Government property. Eligibility of Bidder: The Bidder warrants that he/she is not: a) Under 18 years of age; b) An employee of any department or agency of the Federal Government prohibited by the regulations of that agency from purchasing property sold hereunder; c) An agent or immediate member of the household of the employee in b) above; d) The contractor, subcontractor or vendor, their agent or employee who has access to information concerning the property to be sold at United States Marshals Service auctions that is not generally available to the public; e) Presently debarred or declared ineligible for the award of contracts by any Federal agency in accordance with 41 CFR 101-45.6; f) Or the party or representing the party(s) from whom the property was seized and/or forfeited. The Contractor's subcontractor may not act as agent for a third party in purchasing Government property that is or has been in their custody or control. For breach of any of these warranties, the Government shall have the right to cancel the contract without liability. Registration: In the menu bar create an account by clicking "New Bidder". The user name and password that is created will be used for all future online auctions. The information you provide when setting up your online account will be the information assigned on your title work. If you choose to title your purchases in a business name, the business name and address needs to be utilized. At any point should you decide to title your purchases in your person name, your account information will need to be updated to reflect the desired change. This also applies to a change of address or business. This is the responsibility of the bidder. Upon initial registration, you may need to input a credit card number but will only be used to verify your identity. There will be no additional registration fees. Seller | Authorized agent | Prime contractor reserves the right to accept or deny bidders for any reason. Falsifying bidder registration information will result in revocation of bidding privileges. Bid Deposit: There will be a $1,000 pre-bid deposit required to bid. Deposits will be ran as a hold on the funds and will not be applied to purchase price. There will be (one) $1,000 refundable pre-bid deposit required prior to placing a bid on any and all asset(s) in this auction. Pre-bid deposits for all online bidders must be received by Monday, 6/8/2020 at 8AM ET. Pre-bid deposits received after this deadline will not be accepted. If you are the successful high bidder, your $1,000 deposit will not be considered a $1,000 down payment. All pre-bid deposits will be refunded within 7-10 business days after the close of the auction, unless the high bidder defaults payment for a winning bid. If full payment is not received for items successfully won at auction by Wednesday, 6/10/2020 5PM ET, the $1,000 deposit becomes non-refundable at which point the property shall revert back to the government without further notice to the bidder and will result in any monies paid, rights, title and interest the bidder may have acquired being forfeited. The transaction shall be null and void as to the purchaser and the asset(s) will either be processed for resale in a subsequent auction or offered to the second highest bidder at their last bid amount. Deposit instructions: 1) Register: Prior to submitting your pre-bid deposit, you are required to register for the featured auction online. Enter the online auction, then create an account by clicking "Login/ New Bidder" in the top menu bar or the red "Register to Bid" button. Follow the instructions provided. If you have already done so, please proceed to Step 2. 2) Complete the Credit Card Authorization Form at https://appletowing.formstack.com/forms/usms_vessel_6_8_2020 All deposits must be submitted by method of credit card. Bidding in this auction will not be permitted without a credit card validation. Credit card authorizations will place a hold of $1,000.00 with your credit card company. Failure to provide a valid credit card will preclude participation in this auction. 3) Once your deposit has been submitted: Please allow up to 24 hours for the sales team to run your card and approve your account. 4) Once your deposit is received, your bidding privileges will be updated (approved/ denied). You will receive a confirmation email once you have been approved and at that time you may login to begin bidding. Please note: If you do not register for the auction online, we have no way of adjusting your account privileges to (approved/denied). Reserve: This auction is conducted with reserve. The United States Marshals Service reserves the right to approve the final transfer of property the successful bidder, even after the auction lot closes. Seller | Authorized Agent | Prime Contractor does not/ will not disclose the reserve amount. In addition, the Seller | Authorized Agent | Prime Contractor retains the right to reject any bids for any reason or to make counter offers or accept back up offers at their sole discretion. Please note: there will not be a "Reserve Met" or "Reserve Not Met" disclosure during the auction. Preview & Inspection: BY APPOINTMENT ONLY DUE TO CDC GUIDELINES ON COVID-19 VIRUS. ATTENDANTS MUST WEAR MASKS. Anyone without an appointment will not be allowed entrance. Locations, dates, and times of preview noted in each vehicle description (dates and times may vary). Bidders are urged to inspect property/merchandise prior to bidding. Failure to inspect shall not constitute cause for cancellation of sale. Property/merchandise is available for inspection only at places and times specified by the Seller | Authorized Agent | Prime Contractor and notated in each vehicle description. Absolutely no access to property/merchandise is allowed without prior United States Marshals Service authorization. Seller | Authorized Agent | Prime Contractor may, at its discretion, provide photographs of the property/merchandise as a courtesy to bidders. Bidders are warned against bidding on any lot(s) based solely on the sample displayed or on the basis of photographs. Seller | Authorized Agent | Prime Contractor makes no warranty in relation to these samples or photographs. Items added or deleted from the sale: Seller | Authorized Agent | Prime Contractor reserves the right to add/ delete vehicles to/ from the auction at any time. "As-Is, Where-Is": These assets are auctioned off AS-IS, WHERE-IS, WITH ALL FAULTS, WITHOUT WARRANTY OR GUARANTEE EITHER EXPRESSED OR IMPLIED, AS TO AGE, YEAR OF MANUFACTURE, MAKE, MODEL, ODOMETER, CONDITION OR ANY OTHER SPECIFICATION. DESCRIPTIONS OF VEHICLES, WRITTEN, PUBLISHED, OR ORAL ARE FURNISHED AS A GUIDE ONLY. NO GUARANTEE AS TO THE ACCURACY OF THE DESCRIPTION IS MADE. The Auctioneer shall not be responsible for the correct description, authenticity, genuineness, or defect in any lot and makes no warranty in connection therewith. No allowance, refund or set aside will be made on account of any incorrectness, error in cataloging, imperfection, defect or damage. Any descriptions or representations are for identification purposes only and are not to be construed as a warranty of any type. Information on conditions limited and subject to change without notice. Bidders may obtain additional information by attending the live previews and visually inspecting the items. It is the responsibility of the Buyer to have inspected thoroughly the merchandise and to have satisfied him or her as to its condition and value and to bid based upon that judgment solely. Seller | Authorized Agent | Prime Contractor does not certify the accuracy of the information presented by any third party company that assist in the sale, and will not be responsible for any error made on their behalf. Some vehicles may have branded titles and or odometer discrepancies. Branded titles and odometer discrepancies, when known, are announced, included in the description or noted on the vehicle. Absence of mention of branded titles or odometer discrepancies or remarks does not constitute any warranty or guarantee. The vehicles being auctioned may be subject to open vehicle recall notices. It is the buyer's sole responsibility to check for and act upon any applicable recall notices. Recalls and other vehicle safety information is available at the National Highway Traffic Safety Administration website, www.nhtsa.gov/recalls. ALL PURCHASES ARE FINAL. Technical Bidding Details: All lots end with a "Soft Close." A "Soft Close" means if any bid is placed within the last 3 minutes of the close of the auction, the bid will automatically extend the closing time an additional 3 minutes. Example: If a bid is placed at 2 minutes until close, it will extend the closing time to 5 minutes. This feature protects bidders from being outbid without the opportunity to be notified and place another bid before the close of the auction. Placing a "Maximum Bid." Please be aware that when placing your "Maximum Bid", the website will bid on your behalf up to your set maximum bid by the preset bid increment of $25. Example: The current bid is $1000 and the bidder enters a maximum bid of $5000. The system will bid at the preset increment of $25 until the bidders "Maximum bid" is exceeded. At that point the bidder will be notified that he/she has been outbid (if that option is selected when registering). High bidder will only pay $25 more than the competing bidder. Please watch the auction closing time stop clock to determine exactly when the lot will close. Tie Bid Precedence: In the event of a tie bid, precedence is given to the earliest bid. Hypothetical Example: Bidder #1 places a $10,000 max bid on a vehicle that currently has a high bid of $5000. The high bid is now at $5,025. Bidder #2 places a max bid at $7000. Bidder #2 is immediately outbid by the $10,000 max bid and the high bid immediately adjusts to $7,025. Bidder #2 decides to place a $10,000 max bid this time. He does not surpass the initial $10,000 max bid by Bidder #1 therefore he is not the high bidder. In the case of a tie bid, precedence is given to the earliest bid. Auction End & Bid Approvals: At the close of the sale, all bidders will be emailed their bid results and the totals will be forwarded to the United States Marshals Service for final approval. Once we receive approval, you will receive an email notification that your bid has been approved or denied. Payment instructions will be given at that time. Each vehicle is considered a separate purchase. Apple Towing Co. | Apple Auctioneering Co. in its sole discretion reserves the right to declare an item sold, postpone or cancel the auction, extend the bidding time for this auction (which may re-open bidding on closed items, if any) and/or re-list the property for auction at another date and time. The decision of Apple Towing Co. | Apple Auctioneering Co. on this matter shall be final. Bidder acknowledges that, by registering in any auction held by Apple Towing Co. | Apple Auctioneering Co., Bidder accepts the terms and conditions of this disclaimer. Payment: All items must be paid in full within 48 hours (2 business days) from the bid approval email. Acceptable forms of payment are by method of bank wire transfer or cashier's check with overnight delivery made payable to Apple Towing Co. 2525 South Shore Blvd. Suite 202, League City, Texas 77573 ATTN Kristina Cortez. Account information for bank wire transfers will be provided in the approval email. The wire transfer must include the buyer name and reference the lot(s) purchased. Title work will be processed the following business day of bank wire posting to account. NO EXTENSIONS FOR FINAL PAYMENT WILL BE MADE FOR ANY REASON. Unacceptable payment methods: No personal, business, or private issued checks, bank letters, credit/debit cards, money orders, or letters of credit will be accepted. In addition, onsite payment will not be accepted. Bidders should not attempt to finance any purchase through a bank or credit union, nor will the auction company negotiate with any lender. Bidders must have the funds available before placing any and all bids. Payment must be made by the successful registered bidder. Payment received by parties other than the successful registered bidder will be declined. Default/Non-payment: The failure to make required deposit or final payments and/or comply with the timeframes specified in the sales catalog/brochure for removal of property shall be deemed forfeiture of any rights, title, and interest the Purchaser may have acquired. The title of such property shall revert back to the Government without further notice to the Purchaser and will result in any monies paid being forfeited. The transaction shall be null and void as to the Purchaser. The property will be processed for resale at the next available auction. If a buyer does not pay within the specified time frame, backs out, submits a check containing insufficient funds, or issues a "stop payment" that buyer will be banned from all future Apple Towing Co. | Apple Auctioneering Co. auctions. Buyer's Premium: No buyer's premium. Sales Tax: No tax will be collected by the auction company on any lot in this auction. Applicable Taxes & Fees: All purchasers are responsible for the payment of any and all applicable taxes or fees imposed by any state, country, county, or political subdivision. Refunds: Apple Towing Co | Apple Auctioneering Co does not make refunds, adjustments, or accept returns. All purchases are final. Paperwork Processing: Once the funds are received, the title work will be executed utilizing the buyer's registration information and sent via email to have all copies signed. Once fully executed, the property release will be emailed to the buyer, the property manager, and region supervisor. The releasing agent's name and contact information will be presented on the property release document. Originals will be mailed to the buyer. Title Documents: Title will be conveyed via the below documents and will be mailed to the buyer following business day after copies of signatures are obtained. Vessel Bill of Sale: Purchasers will receive a Coast Guard Bill of Sale for vessels and a government Standard Form 97 (Certificate to Obtain Title) for trailers. Release & Removal: Due to the vessel being stored on stands (not included), there will be a mandatory post-sale release loading rate of $650.00 applied to the final invoice of the 2006 Midnight Express Open, 37' Vessel. Removal must be completed on or before the 14th calendar day after the sale date or the buyer will default the terms of sale and property/merchandise will be resold by the United States Marshals Service. Said property/merchandise shall revert and repossess to the United States Government without further notice to the buyer and will result in any monies paid being forfeited and the transaction shall be null and void as to buyer. Storage arrangements after removal dates are solely between the buyer and storage vendor and must be agreed upon prior to the removal deadline. Property/merchandise must be paid in full before removal. No partial release of any lots. Removal is by appointment only and should be made by the buyer with the storage vendor only after buyer has received the necessary Property Release document. A physical hard copy of your property release is required in order to pick up your property. It is the sole responsibility of the buyer to remove the property purchased by the removal date. All property/merchandise in a lot must be released to original buyer at one time. Removal is at the expense, liability, and risk of the buyer. Please do not make flight arrangements or schedule pickups in advance, until you receive authorization via email to do so. Buyer must present a photo I.D. at the time of property release. If the registered buyer chooses to send an agent to pick up property on their behalf, the buyer must prepare and sign an authorization letter identifying the agent to act on his/her behalf, as well as provide agent with a copy of Buyer's photo I.D. Shipping: It is the buyer's responsibility to arrange the shipping. Apple Towing Co | Apple Auctioneering Co will not ship any items. It is the responsibility of the buyer to remove the property/merchandise purchased by the removal date and to arrange for shipping. Removal is at the expense, liability, and risk of the buyer. Collusion: Practices that eliminate competition, such as collusive bidding may warrant criminal, civil, or administrative action against the participant and may be referred to the U.S. Department of Justice. Technical Assistance: To serve you best, please direct all questions via email to sales@appletowing.com or call 713-600-7778. Apple Towing Co | Apple Auctioneering Co accepts no responsibility for loss of connectivity, technical difficulties, or any other circumstances beyond our control. Technical Difficulties and Internet Issues: Apple Towing Co. | Apple Auctioneering Co. has made every reasonable effort to facilitate online bidding. However, it is possible that technical difficulties and internet issues may arise that affect Apple Towing Co. | Apple Auctioneering Co.'s website, bidding platform, computer, server or the bidder's computer, personal device or software which is beyond the control of Apple Towing Co. | Apple Auctioneering Co. By registering Bidder acknowledges that Apple Towing Co. | Apple Auctioneering Co. is not responsible for technical difficulties or internet issues associated with a bid and that, in the event technical difficulties interfere with or prevent a bid, it may be necessary to withdraw items from bidding due to technical errors or uncontrollable circumstances. Further, in the event of the occurrence of a technical difficulty during an auction, Apple Towing Co. | Apple Auctioneering Co. in its sole discretion reserves the right to declare an item sold, postpone or cancel the auction, extend the bidding time for this auction (which may re-open bidding on closed items, if any) and/or re-list the property for auction at another date and time. The decision of Apple Towing Co. | Apple Auctioneering Co. on this matter shall be final. Bidder acknowledges that, by registering in any auction held by Apple Towing Co. | Apple Auctioneering Co., Bidder accepts the terms and conditions of this disclaimer. Limitation of Government Liability: Except for reasonable packing, loading, and transportation costs (such packing, loading, and transportation costs being recoverable only when a return of property at the Government's cost is specifically authorized in writing by the Contracting Officer or other costs authorized in writing by the Contracting Officer), the measure of the liability of the Government under any provisions of the terms and conditions in any case where liability of the Government to the Purchaser has been established shall not exceed the refund of such portion of the purchase price as the Government may have received. Requirements to Comply with Applicable Laws and Regulations: It is the Purchaser's responsibility to ascertain and comply with all applicable Federal, State, local, and multi-jurisdictional laws, ordinances and regulations pertaining to the registration, licensing, handling, possession, transportation, transfer, export, processing, manufacture, sale, use, or disposal of the property listed in the sales catalog. The Purchaser or user of this property is not excused from any violation of such laws or regulations either because the United States is a party to this sale or has had any interest in the property at any time. False Advertising and Unfair or Deceptive Actions: The use of false or misleading advertisements in commerce or other unfair or deceptive practices are unlawful (15 U.S.C. 45, et. seq.). In disposing of any property purchased from the Government, purchasers should exercise extreme caution in preparing advertisements to ensure that they do not violate applicable Federal, state or foreign government laws. Right to Refuse: Seller | Authorized Agent | Prime Contractor prides its self and its employees as part of a highly professional organization and conducts business at all its facilities not just based on the above terms and conditions but as a professional entity. During the course of the auction which includes but are not limited to preview day, exchange of information on an asset, release and pick up of the assets sold to a buyer, the buyer or its representative may not engage in any non-business like and unprofessional conduct which may be inconsistent with the Seller | Authorized Agent | Prime Contractor business practices. These acts could include but are not limited to disrespect of an employee, use of unprofessional and abusive language verbal or otherwise. If such performance is reported to management of the Seller | Authorized Agent | Prime Contractor, it has the right to ban that individual from future auctions from any of its facilities. Disputes: The Buyer agrees that in any dispute between the Seller and the Buyer or between competing bidders arising in connection with any sale at the auction, the Auctioneer shall have the right but not the obligation to settle such dispute, and the Buyer shall abide by the decision of the Auctioneer, whose decision shall be final with respect to such matter. All questions or disputes regarding Buyer, lot identity, price or quantity must be resolved immediately upon the sale of said lot. No changes or adjustments will be made at any later time. The Buyer further agrees to indemnify the Auctioneer for all liabilities, damages, costs, and expenses including attorney's fees incurred in connection with any such dispute or in connection with any claim, litigation, controversy, dispute or proceeding arising from any purchase of an article by the Buyer or from any subsequent sale of such article to any third party. Any contract resulting from this offering is subject to the Contract Disputes Act of 1978, Public Law 95-563. The current "Dispute" clause found in 48 U.S.C. 52.233-1 is hereby incorporated for reference. All requests for refunds or adjustments should be submitted to the Contractor. The record of the sale kept by the Auctioneer and sale clerk will be taken as final in the event of any dispute. We reserve the right to video tape all live auctions. Any dispute which cannot be resolved by the Contractor may be directed to the local district office in which the asset was purchased. Directory may be found on the United States Marshals Service website: https://www.usmarshals.gov Apple Auctioneering Co. is regulated by the Texas Department of Licensing and Regulation. Auctioneer Kevin C. Scully #TX16772 Direct any and all complaints to: Texas Department of Licensing & Regulation P.O. BOX 12157 Austin, TX 78711 800-803-9202 www.tdlr.texas.gov. Additional License Information: GA#AU003885, FL#AU4328, IL#441.002154, KY#RP3804, MA#3332, MN#2716029, WI#2714-52 In California: Complying with the State of California Civil Code Section 1812.600 the following Bond is filed with the California Secretary of State: Auctioneer Kevin C. Scully, Apple Auctioneering Co. Bond #71125500 Disclaimer: The auction is being conducted in compliance with Sec. 2328 of Commercial Code, Sec. 535 of The Penal Code, and the provisions of the California Civil Code.

Apple Towing Co | Apple Auctioneering Co is conducting an online auction with reserve on behalf of the United States Marshals Service. All participants in this sale are responsible to read, understand, and comply with the terms of sale as specified herein and agree to be bound thereby. ***DEPOSIT REQUIRED TO BID*** There will be (one) $1,000 refundable pre-bid deposit required prior to placing a bid on any and all asset(s) in this auction (See Terms & Conditions for instructions).