General Information: The placement of a successful bid at a U.S. Department of Homeland Security (DHS) auction establishes a legally binding contract between the successful high bidder and the U.S. Customs and Border Protection (CBP). The auctioneer's announcement of the high bid amount along with the bidder's number establishes the contract which may be subject to final acceptance by the Government. This contract is binding by the 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 U.S. Customs and Border Protection (CBP) 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 representing the party(s) from whom the property was seized and/or forfeited. The contractor, RBEX Inc dba Apple Towing Co | Apple Auctioneering Co is acting as the agent of the Government with respect to the sale of Government property. The contractor's subcontractor may not act as an 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. Additional Bidding Qualifications: Only licensed scrap or salvage dealers may participate in this auction. When notated on the catalog description, only licensed scrap or salvage dealers whose facilities are located within the continental United States may purchase certain lots. Vehicles cannot be re-registered. To qualify to bid, you must send a copy of your license to salvage@appletowing.com. Additional bidding instructions will be provided at that time. License must be approved prior to the sale closing. Registration: Under "Login/New Bidder" create an account by clicking "New Bidder? Click Here." 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 used for 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 personal name, your account information will need to be updated to reflect the desired change prior to the auction closing. This also applies to a change of address or business. This is the responsibility of the bidder. Upon initial registration, you will need to input a credit card number (not retained) but will only be used to verify your identity. There will be no additional registration fees. Bid Deposit: No pre-bid deposit required. Reserve: These auctions are conducted with reserve. The U.S. Customs and Border Protection reserves the right to approve the final transfer of property to the successful bidder, even after the auctioneer states "sold" or auction lot has closed. Apple Towing Co | Apple Auctioneering Co does not/ will not disclose the reserve amount. In addition, the U.S. Customs and Border Protection and Apple Towing Co | Apple Auctioneering Co 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: Bidders are urged to inspect property/merchandise prior to bidding. Failure to inspect shall not constitute the cause for cancellation of sale. Property/merchandise is available for inspection only at place and time specified Apple Towing Co | Apple Auctioneering Co and notated in each vehicle description. Absolutely no access to property/merchandise is allowed without prior Apple Towing Co | Apple Auctioneering Co authorization. Apple Towing Co | Apple Auctioneering Co 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. Apple Towing Co | Apple Auctioneering Co makes no warranty in relation to these samples or photographs. All persons attending preparation, preview inspection, sale or removal of merchandise assume all risks whatsoever of any damage or loss to person and or property and specifically release the Apple Towing Co | Apple Auctioneering Co and the U.S. Customs and Border Protection of any and all liability. No one under the age of 18 will be allowed to enter the auction area. Each registered bidder may have two companions in the auction area. No oversized bags or electronics are allowed in the auction area. Apple Towing Co | Apple Auctioneering Co and the U.S. Customs and Border Protection reserves the right to add or delete vehicles to and from the auction at any time. "As-Is, Where-Is": These assets will be auctioned 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. It is the responsibility of the buyer to have inspected the merchandise and to have satisfied him or her as to its condition and value and to bid based upon that judgment solely. Apple Towing Co | Apple Auctioneering Co 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. Branded titles or odometer discrepancies, when known, are announced and included in the description or noted on the vehicle. Absence of mention of branded titles 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. Technical Bidding Details: All lots end with a "Soft Close." A "Soft Close" means if any bid is placed within the last three minutes of the close of the auction, the bid will automatically extend the closing time an additional three minutes. Example: If a bid is placed at two minutes until close, it will extend the closing time to five 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 Auto 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 $100. Example: The current bid is $1000 and the bidder enters a maximum bid of $5000. The system will bid at the preset increment of ($100 for regular sales, $25 for Salvage/Scrap sales) 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 ($100 for regular sales, $25 for Salvage/Scrap sales) more than the competing bidder. Please watch the auction closing time stop clock to determine exactly when the lot will close. Auction End & Bid Approval: At the close of the sale, all bidders will be emailed their bid results (online auctions only) and the totals will be forwarded to the USDHS 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. Buyers of IRS-CI property need to be aware that IRS has up to three business days to approve purchases. IRS-CI vehicles are notated in the vehicle description. If a buyer purchases multiple vehicles that include IRS-CI assets, the payment deadline for non-IRS-CI assets do not extend due to delayed approvals. Each vehicle is considered a separate purchase. Special Requirements for IRS-CI Properties: Buyers of IRS-CI property need to be aware that IRS has up to three business days to approve purchases. IRS-CI vehicles notated in the vehicle description by a series of letters and numbers, for example, "Case #: 2013430591234567-001-0000-IRS". If a buyer purchases multiple vehicles that include IRS-CI assets the payment deadline for non-IRS-CI assets does not extend due to delayed approvals. Each vehicle is considered a separate purchase. Once the approval email is sent, the buyer will have 48 hours (two business days) from the time notification is sent to make final payment. Payment for Online Auctions: All items must be paid in full within 48 hours (two business days) from the bid approval email. NO EXTENSIONS FOR FINAL PAYMENT WILL BE MADE FOR ANY REASON. Acceptable forms of payment (U.S. Funds only) are by method of: -Electronic Bank Transfer: Bank wire instructions will be included in the approval email. Bank wire transfers must originate from an account of the registered buyer or the business the buyer represents. The transfer must include the buyer name and reference the lot(s) purchased. Any electronic bank transfers received from an account other than that of the registered bidder, will not be accepted and will be returned to the originating bank. Bank wires must be received within the time frame specified for final payment and may take up to 24 hours to process. Title work will be processed the following business day of bank wire posting to account. Buyer is responsible for all wire transfer fees charged by the financial institution. If fees are deducted from the total amount, buyer is responsible for balance due within the payment deadline. If balance is not paid in full by the deadline, buyer is in default. -Cashier's Check: With overnight delivery made payable to Apple Towing Co. 2525 South Shore Blvd, Suite 202, League City, TX 77573 and originate from an account of the registered buyer or the business the buyer represents. Please include the buyer's name and reference the lot number(s) purchased. Unacceptable Payment Methods: No personal, business, or private issued checks, credit/debit cards, 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: 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 buyer may have acquired. The title of such property shall revert back to the Government without further notice to the buyer and will result in any funds paid being forfeited. The transaction shall be nulled and voided as to the buyer. The property will be processed for resale at the next available auction. Refunds: Apple Towing Co | Apple Auctioneering Co do not make refunds, adjustments, or returns. All purchases are final. Sales Tax: No tax will be collected by the auction company on any lot located outside of Arizona. Notice on Arizona lots only: Auction company must collect (Nogales 8.6%; Tucson 8.1%; Yuma 8.4%) sales tax from Arizona residents depending on asset location unless a Arizona Resale Certificate (Arizona Form 5000A) is provided during checkout. Out of state buyers must provide a copy of their ID and complete an ADOR Form 5011 (which will be provided) in lieu of tax. Applicable Tax: All purchasers are responsible for the payment of any and all applicable taxes imposed by any state, country, county, or political subdivision. 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. All title documents and forms requiring the buyer's signature must be signed immediately following payment of a live auction by the successful high bidder. For online auctions, all title documents and forms requiring the buyer's signature must be signed by the successful high bidder under the registered name & submitted to the auction company within 24 hours from the time they are emailed. Vehicle Title: Buyers will receive a title via a government Form SF-97 (Certificate to Obtain Title) which they will take to their local Dept. of Motor Vehicles to obtain the title to the vehicle. Release & Removal: Removal must be completed on or before the 7th business day (for domestic property/merchandise) and the 60th calendar day (for export only property/merchandise) after the sale date or the buyer will default the terms of sale and property and/or merchandise will be resold by the U.S. Customs and Border Protection. Therefore, property and/or merchandise shall revert and repossess to the Government without further notice to the buyer and will result in any funds paid being forfeited and the transaction shall be nulled and voided as to buyer. Storage arrangements after removal dates are solely between the buyer and storage vendor. Please note: delay of approval, payment, and/or the signing of title documents does not extend the removal deadline. Purchases 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 and/or 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. If original buyer intends on picking up the vehicle/vessel: Buyer (named on Bill of Sale) must show copies of the Bill of Sale, Property Release Form and valid ID. If buyer intends on sending an agent or transport service to pick up the vehicle/vessel: The buyer must complete the Release Authorization section of the Property Release stating that the named person picking up your conveyance is permitted to do so on your behalf. That person must show physical copies of that signed Property Release with Release Authorization section completed, the buyer’s ID, the agents ID, and Bill of Sale. 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 Homeland Security. Information Disclosure: The buyer agrees to the publication of his or her company/registered name, lot number, lot description and purchase price on the U.S. Department of the Treasury auction website. Electronic Freedom of Information Act Amendments of 1996 (5 U.S.C. 552 (2000)). Technical Assistance: To serve you best, please direct all questions via email to auctions@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. 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. 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: Contracting Officer U.S. Customs and Border Protection Office of Procurement, Suite 1310 1300 Pennsylvania Avenue, NW Washington, D.C. 20229 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

Only licensed scrap or salvage dealers may participate in this auction. To qualify to bid, you must send a copy of your dismantler license to salvage@appletowing.com. Additional bidding instructions will be provided at that time. Apple Towing Co | Apple Auctioneering Co is conducting an online auction with reserve on behalf of the United States Customs & Border Protection. 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.