1. DEFINITIONS: The term "Seller" and "Receiver" refers to the Federal Deposit Insurance Corporation as Receiver for Ericson State Bank. The term "Authorized Agent" and "Auction Company" refers to Apple Towing Co./Apple Auctioneering Co. The term "High Bidder" and "Buyer" refers to the successful high bidder at the Auction. The term "Bidder" refers to any bidder at the Auction. The term "Auction" refers to the Seller's auction event presented by the Auction Company. The term "Property" refers to the property (vehicles) to be bid at the Auction, and sold to the High Bidder. The term "Contract" refers to the agreement between Buyer and Seller concerning the purchase of the Property.

2. GENERAL INFORMATON: The placement of a successful bid at Seller's Auction establishes a legally binding contract between the successful High Bidder (Buyer) and the Seller. The Auction Company's 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 Seller. This Contract is bound by these Terms and Conditions as well as special terms and conditions published by the Auction Company for the specific Auction and other Federal regulations governing contracts for the purchase of the Seller's Property. The successful Bidder is legally bound to pay for the Property awarded in accordance with its/his/her bid. The Auction Company is acting as the agent of the Seller with respect to the sale of the Seller's Property.

3. ELIGIBILITY OF BIDDER: The Bidder warrants that he/she is not (i) under the age of eighteen years of age, and (ii) opposed to completing and signing all sale documents immediately following payment. In addition to the title, the High Bidder will be required to execute a Purchaser Eligibility Certification ("PEC"), Buyer's Guide ("As-Is, Where-Is"), and the copy of the Terms and Conditions. The Auction Company's subcontractor may not act as agent for a third-party in purchasing the Seller's Property that is or has been in their custody or control. For breach of any of these warranties, the Seller shall have the right to cancel the Contract without liability.

4. PROHIBITED BIDDER: Bidder acknowledges that certain persons are prohibited from purchasing Property from Seller and that under certain circumstances Seller will not sell Property to certain persons. Accordingly, prior to or contemporaneously with the execution of this Terms and Conditions, Bidder has completed, executed, and delivered to Seller a Purchaser Eligibility Certification (the "PEC") in the form attached as Exhibit "A." Bidder represents and warrants to Seller that the PEC is true and correct, and Bidder further acknowledges that Seller is relying on the truth and accuracy of the PEC. Any incorrect information on the PEC shall be a default by Bidder under this Terms and Conditions. Accordingly, if Seller determines prior to Closing of the Auction event that any portion of the PEC is incorrect, Seller may terminate this Terms and Conditions and the Contract without liability, and may pursue any other sanctions provided by law.

5. REGISTRATION: In the menu bar, create an account by clicking "New Bidder". The username and password that is created will be used for all future online auctions. The information provided when setting up the 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. Should you decide to title your purchases in your person's 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 will need to input a credit card number but it will only be used to verify your identity. There will be no additional registration fees. Seller and/or Auction Company reserves the right to accept or deny Bidders for any reason. Falsifying bidder registration information will result in revocation of bidding privileges.

6. BID DEPOSIT: There will be a One-thousand Dollar ($1,000.00) pre-bid deposit required to bid at the Auction. Deposits will be run as a hold on the funds and will not be applied to the purchase price. There will be only one (1) One-thousand Dollar ($1,000.00) refundable pre-bid deposit required prior to placing a bid on all Property in this Auction. Pre-bid deposits for all online bidders must be received by Monday, 7/13/2020 at 8AM ET. Pre-bid deposits received after this deadline will not be accepted. If you are the successful High Bidder, your One- thousand Dollar ($1,000.00) deposit will not be considered a One-thousand Dollar ($1,000.00) 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 the Auction by Wednesday, 7/15/2020 5PM ET, the One- thousand Dollar ($1,000.00) deposit becomes non-refundable at which point the Property shall revert back to the Seller without further notice to the High Bidder, and will result in the forfeiture of any monies paid, rights, title and interest the High Bidder may have acquired. The transaction shall be null and void as to the High Bidder and the Property will either be processed for resale in a subsequent Auction or offered to the second highest Bidder at its/his/her last bid amount.

7. DEPOSIT INSTRUCTIONS:

a. REQUIRED REGISTRATION: 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 b.

b. AUTHORIZATION: Complete the Credit Card Authorization Form at https://appletowing.formstack.com/forms/fdic_7_13_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 One-thousand Dollars ($1,000.00) with your credit card company. Failure to provide a valid credit card will preclude participation in this Auction.

c. APPROVAL PROCESS: Once your deposit has been submitted: Please allow up to twenty-four (24) hours for the sales team to run your card and approve your account.

d. CONFIRMATION EMAIL: 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).

8. RESERVE: This Auction is conducted with Reserve. The Seller reserves the right to approve the final transfer of Property to the successful High Bidder, even after the Auction lot closes. Neither the Seller nor the Auction Company will disclose the reserve amount. In addition, the Seller and/or the Auction Company 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.

9. PREVIEW AND INSPECTION: NOTE, BY APPOINTMENT ONLY DUE TO CDC GUIDELINES ON COVID-19 VIRUS. ATTENDANTS MUST WEAR MASKS. Bidders are urged to inspect the Property prior to bidding. Failure to inspect shall not constitute cause for cancellation of the sale. Property is available for inspection only at places and times specified by the Seller and/or Auction Company and notated in each vehicle's description. Absolutely no access to the Property is allowed without prior Seller authorization. Seller and/or Auction Company may, at its discretion, provide photographs of the Property as a courtesy to Bidders. Bidders are warned against bidding on any lot(s) based solely on the sample displayed or based on photographs. Seller and Auction Company makes no warranty in relation to these samples or photographs.

10. ITEMS ADDED OR DELETED FROM THE SALE: Seller and Auction Company reserve the right to add or delete vehicles to or from the Auction at any time.

11. "AS-IS, WHERE-IS ": The Properties are 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 Auction Company's 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 are limited and subject to change without notice. Bidders may obtain additional information by attending the live previews and visually inspecting the Property. It is the responsibility of the Buyer to have inspected thoroughly the Property and to have satisfied himself or herself as to its condition and value and to bid based upon that judgment solely. Seller and Auction Company do 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 any 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 Bidder'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.

12. TECHNICAL BIDDING DETAILS: All lots end with a "Soft Close." A "Soft Close" means that if any bid is placed within the last three (3) minutes of the close of the Auction, the bid will automatically extend the closing time an additional three (3) minutes. Example: If a bid is placed at two (2) minutes before close, it will extend the closing time to five (5) minutes. This feature protects Bidders from being outbid without the opportunity to be notified, and therefore allows a Bidder to place another bid before the close of the Auction.

13. 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 Twenty-five Dollars ($25.00). Example: The current bid is One-thousand Dollars ($1,000.00) and the Bidder enters a maximum bid of Five-thousand Dollars ($5,000.00). The system will bid at the preset increment of Twenty-five Dollars ($25.00) until the Bidder's "Maximum bid" is exceeded. At that point, the Bidder will be notified that it/he/she has been outbid (if that option is selected when registering). High Bidder will only pay Twenty-five Dollars ($25.00) more than the competing Bidder. Please watch the Auction's closing time stop-clock to determine exactly when the lot will close.

14. TIE BID PRECEDENCE: In the event of a tie bid, precedence is given to the earliest bid. Hypothetical Example: Bidder #1 places a Ten-thousand Dollar ($10,000.00) max bid on a vehicle that currently has a high bid of Five-thousand Dollars ($5,000.00). The high bid is now at Five-thousand and twenty-five Dollars ($5,025.00). Bidder #2 places a max bid at Seven- thousand Dollars ($7,000.00). Bidder #2 is immediately outbid by the Ten-thousand Dollar ($10,000.00) max bid and the high bid immediately adjusts to Seven-thousand and twenty-five Dollars ($7,025.00). Bidder #2 decides to place a Ten-thousand Dollar ($10,000.00) max bid this time. He does not surpass the initial Ten-thousand Dollar ($10,000.00) max bid by Bidder #1, therefore Bider#2 is not the High Bidder. In the case of a tie bid, precedence is given to the earliest bid.

15. AUCTION END AND BID APPROVALS: At the close of the sale, all Bidders will be emailed their bid results and the totals will be forwarded to the Seller 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. Auction Company, in its sole discretion, reserves the right to: (i) declare an item sold, (ii) postpone or cancel the Auction, (iii) extend the bidding time for this Auction (which may re-open bidding on closed items, if any) and/or (iv) re-list the Property for auction at another date and time. The decision of Auction Company on this matter shall be final. Bidder acknowledges that by registering in any auction held by Auction company, Bidder accepts the Terms and Conditions of this disclaimer.

16. PAYMENT: All items must be paid in full within forty-eight (48) hours (i.e., 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's name and reference the lots purchased. Title work will be processed the following business day of the bank wire posting to the account. NO EXTENSIONS FOR FINAL PAYMENT WILL BE MADE FOR ANY REASON.

17. 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. A High Bidder should not attempt to finance any purchase through a bank or credit union, nor will the Auction Company negotiate with any lender. A Bidder must have the funds available before placing all bids. Payment must be made by the successful registered Bidder. Payment received by parties other than the successful registered Bidder will not be accepted.

18. 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 the Property shall be deemed forfeiture of any rights, title, and interest the High Bidder may have acquired. The title of such Property shall revert to the Seller without further notice to the High Bidder and will result in the forfeiture of any monies paid. The transaction shall be null and void as to the High Bidder. The Property will be processed for resale at the next available Auction. If a High Bidder does not pay within the specified time frame, backs out, submits a check containing insufficient funds, or issues a "stop payment" that High Bidder will be banned from all future Auction Company's auctions.

19. BUYER'S PREMIUM: There is no Buyer's Premium.

20. 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 (Guadalupe 10.3%) sales tax from Arizona residents depending on Property 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.

21. APPLICABLE TAXES AND FEES: All Buyers are responsible for the payment of all applicable taxes or fees imposed by any city, county, tribe, state, country, or political subdivision.

22. REFUNDS: Auction Company does not make refunds, adjustments, or returns. All purchases are final.

23. PAPERWORK PROCESSING: Once the funds are received, the title work will be executed utilizing the High Bidder's registration information and sent via email to have all copies signed by High Bidder. Once fully executed, the Property Release document will be emailed to the High Bidder. The releasing agent's name and contact information will be presented on the Property Release document. Originals will be mailed to the High Bidder.

24. TITLE DOCUMENTS: High Bidder will receive a title. Title will be mailed to the High Bidder following the business day after copies of signatures are obtained.

25. ADDITIONAL DOCUMENTS: In addition to the title, the High Bidder will be required to execute the Seller's Purchaser Eligibility Certification ("PEC"), Buyer's Guide ("As-Is, Where-Is"), and the copy of the Terms and Conditions.

26. RELEASE AND REMOVAL: Removal of the Product must be completed on or before the 14th calendar day (for domestic Property) and the 60th calendar day (for export only Property) after the sale date ("Removal Date"), or the High Bidder will be in default of the terms of sale and the Property will be resold by the Seller. Said Property shall revert and repossess to the Seller, without further notice to the High Bidder, and will result in any monies paid by High Bidder to be forfeited, and the transaction shall be null and void as to the High Bidder. Storage arrangement for the Property after Removal Date is solely between the High Bidder and the storage vendor and must be agreed upon prior to the Removal Date deadline.

27. PROPERTY MUST BE PAID IN FULL BEFORE REMOVAL: No partial release of any lots. Removal of the Product is by appointment only and should be made by the High Bidder with the Auction Company only after High Bidder has received the necessary Property Release document. A physical hard copy of the Property Release document is required in order to pick up the High Bidder's Property. It is the sole responsibility of the High Bidder to remove the purchased Property by the Removal Date. All Property in a lot must be released to original High Bidder at one time. Removal is at the expense, liability, and risk of the High Bidder. Please do not make flight arrangements or schedule pickups in advance, until your authorization via email to do so has been received. High Bidder must present a photo I.D. at the time of the Property's release. If the registered High Bidder chooses to send an agent to pick up the Property on its/his/her behalf, the High Bidder must prepare and sign an authorization letter identifying the agent to act on its/his/her behalf, as well as provide the agent with a copy of High Bidder's photo I.D.

28. SHIPPING: It is the High Bidder's responsibility to arrange the shipping of the Property. Auction Company will not ship any Property. It is the responsibility of the High Bidder to remove the Property purchased by the Removal Date and to arrange for its shipping. Removal of the Property is at the expense, liability and risk of the High Bidder.

29. 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 Seller.

30. TECHNICAL ASSISTANCE: To serve you best, please direct all questions via email to sales@appletowing.com or call 713-600- 7778. Auction Company accepts no responsibility for loss of connectivity, technical difficulties, or any other circumstances beyond our control.

31. DISCLAIMER DUE TO TECHNICAL DIFFICULTIES AND INTERNET ISSSUES: Auction Company has made every reasonable effort to facilitate online bidding. However, it is possible that technical difficulties and internet issues may arise that affect Auction Company's website, bidding platform, computer, server or the Bidder's computer, personal device or software which is beyond the control of Auction Company. By registering, Bidder acknowledges that Auction Company 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, Auction Company, in its sole discretion, reserves the right to: (i) declare a Property sold, (ii) postpone or cancel the Auction, (iii) extend the bidding time for the Auction (which may re-open bidding on closed items, if any) and/or (iv) re-list the Property for auction at another date and time. The decision of Auction Company on this matter shall be final. Bidder acknowledges that, by registering in any auction held by Auction Company, Bidder accepts the terms and conditions of this disclaimer.

32. LIMITATION OF SELLER'S LIABILITY: Under any provisions of the Terms and Conditions and the Contract, Seller's liability to Bidder, if established and proven, shall not exceed Bidder's (whole or partial) payment made to Seller for the Property's purchase price set at the Auction. The liquidated damages specified herein are not penalties, but a reasonable estimate of the cost: (i) to Seller due to pulling the Property from the Auction, if required, and (ii) to Bidder concerning the lost transaction. In no event shall Seller be liable to Bidder for any other actual, punitive, speculative, or consequential damages, nor shall Bidder be entitled to bring a claim to enforce specific performance of the Terms and Conditions and the Contract.

33. REQUIREMENTS TO COMPLY WITH APPLICABLE LAWS: It is the High Bidder'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 High Bidder or user of this Property is not excused from any violation of such laws or regulations either because the Seller is a party to this sale or has had any interest in the Property at any time.

34. RECALLS: The vehicles being auctioned may be subject to open recall notices. It is the Bidder's sole responsibility to check for and act upon any applicable recall notices. Failure to mention or absence of notice does not imply that a vehicle does not have an open safety recall and does not constitute any warranty, guarantee, or refund. Recalls and other vehicle safety information is available at the National Highway Traffic Safety Administration website, www.nhtsa.gov/recalls.

35. CALIFORNIA SMOG EMISSIONS DISCLAIMER: All smog-related repairs are the sole responsibility of the High Bidder. Seller does not accept responsibility for the failure of any vehicle sold, or the failure of a vehicle to meet safety standards or emissions control equipment regulations as set by any Federal, State, or local agency. It is the express responsibility of the High Bidder to comply with any safety or emission control equipment requirements prior to using any vehicle purchased. Seller may provide a passing smog certification as a courtesy to the High Bidder. Please note the expiration on the smog certificate. If High Bidder is provided a passing smog certification, it does not imply or guarantee that the vehicle will pass a future emissions test. Purchases are "As-Is."

36. FALSE ADVERTISING AND UNFAIR OR DECEPTIVE ACTIONS: The use of false or misleading advertisements or other unfair or deceptive practices in commerce is unlawful. In conveying or disposing of any Property purchased from the Seller, the High Bidder should exercise caution in preparing advertisements to ensure that it/he/she does not violate applicable state, Federal or foreign government laws.

37. RIGHT TO REFUSE: The Auction Company prides itself and its employees on being part of a highly professional organization, and it conducts business at all of 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 is not limited to preview day, exchange of information on a Property and release/pick up of the Product(s) sold to the High Bidder, the High Bidder or its representative(s) may not engage in any non-business or unprofessional conduct that may be inconsistent with the Seller or Auction Company's business practices. This conduct could include, but is not limited to, disrespect of an employee or use of unprofessional and abusive language, verbal or otherwise. If such conduct is reported to the Auction Company's management, Auction Company has the right to ban that individual from future auctions at any of the Auction Company's facilities.

38. DISPUTES: The High Bidder agrees that in any dispute between the Seller and the High Bidder, or between competing Bidders, arising in connection with any sale of a Property at the Auction, the Auction Company's Auctioneer shall have the right, but not the obligation, to settle such dispute, and the High Bidder shall abide by the decision of the Auctioneer. The Auctioneer's decision shall be final with respect to such matter. All questions or disputes regarding High Bidder, 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 High Bidder further agrees to indemnify the Auction Company and Seller 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 a Property by the High Bidder or from any subsequent sale of such Property to any third party. All requests for refunds or adjustments by High Bidder should be submitted to the Auction Company. The record of the sale of a Property, kept by the Auction Company's Auctioneer and Sale Clerk, will be taken as final in the event of any dispute. Auction Company reserves the right to video-tape all live auctions. Any dispute which cannot be resolved by the Auction Company may be directed to the Seller.

39. GOVERNING LAW: The validity, construction, enforcement, interpretation, and performance of these Terms and Conditions and Contract shall be governed by the laws of the United States of America, and to the extent that state law would apply under applicable federal law, the state in which the Property is located.

40. LICENSING AND REGULATION: 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 and 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, WA#3132, 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 Federal Deposit Insurance Corporation as Receiver for Ericson State Bank. 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.