TRI-STATE AUTO AUCTION The Friendliest Place in Town AUCTION RULES AND POLICIES

OFFICE HOURS MONDAY-FRIDAY 9:00 A.M. - 5:00 P.M. SALE EVERY THURSDAY 12:30 P.M.

55 EAST BUFFALO CHURCH ROAD WASHINGTON, PA 15301 EXIT 11, I-70

PHONE 724-225-1777 FAX 724-225-7223

EFFECTIVE SEPTEMBER 1, 2002 GENERAL POLICIES

1. This sale is for licensed dealers only. You must be registered to buy or sell and use your ID card to sign for purchases. 2. All titles and ownership papers on sold vehicles must be processed through office. 3. All vehicles purchased and or sold on premises must be paid for through office. Anyone found dealing outside of the sale in order to avoid sale fees will be subject to suspension or being permanently barred. 4. THIS AUCTION IS NOT PARTY TO THE CONTRACT OF THE SALE WHICH IS BETWEEN THE SELLER AND BUYER ONLY. THIS AUCTION IS NOT THE TRANSFERRER REQUIRED TO GIVE THE FEDERAL ODOMETER MILEAGE STATEMENT IN CONNECTION WITH ANY SALE/AUCTION WITHIN THE CONTEMPLATION OF THE MOTOR VEHICLE INFORMATION COST SAVINGS ACT OF 1972. AS AMENDED OR SIMILAR LAWS. THE SELLER IS THE TRANSFERRER WITHIN THE CONTEMPLATION OF SUCH LAWS. 5. All titles submitted by seller must be in seller's name. Any third party reporting agency (Carfax, Autocheck, etc.) items are subject to verification and inspection by the auction. The auction reserves the right to make the final decision. 6. Buyer is responsible for verifying serial number on all purchases. No vehicle will be offered for sale without serial number, plate, or proper identification. 7. Seller guarantees (unless declared) all noted items which are subject to arbitration on cars sold for $605.00 or more. 8. Seller will not offer for sale any vehicle which does not comply with current Federal and State regulations. 9. It is THE BUYERS OBLIGATION to watch lights, listen to announced "conditions" and verify paper work is correct prior to signing. 10 The auction is not responsible for warranty books or plates regardless of year, make, or model. Nor is warranty expressed or implied as to the accuracy of the odometer reading. 11. All vehicles sold with a drive must be settled within 2 hours. 12. "Outside or Off the Block Sales" are strictly between buyer and seller and are NOT BINDING ON EITHER until sale is consummated. The auction will not become involved in any arbitration procedures or be responsible for ANY DEFECTS on units sold outside the sale. (Exception: Frame) 13. "If" or "Try" sales strictly between the buyer and seller and not binding on either until sale is consummated. The auction should not be involved with defects. 14. Due to safety considerations, revving engines is strictly prohibited. Repeat offenders will have their trading privileges suspended. 15. BUYERS must pay for all purchases on the DAY OF THE SALE. Buyer's method of payment is subject to auction approval. 16. UNLESS A BUYER HAS OBTAINED PRIOR WRITTEN APPROVAL FROM THE AUCTION'S GENERAL MANAGER OR BUSINESS MANAGER, BUYERS FAILING TO PAY FOR UNIT ON SALE DAY WILL BE SUBJECT TO A MINIMUM LATE PAYMENT FEE OF $50.00 PER WEEK, PER VEHICLE. 17. Any stipulation promises or guarantees made between buyer and seller must appear in writing on the "Bill of Sale" before it may become a part of the transaction. The auction assumes no responsibility for any verbal commitments. 18. All vehicles are consigned at the owner's risk. The auction is NOT liable for theft or damage to any vehicle left at the auction. Sellers are advised to remove personal property, cellular phones, radio faceplates, etc. from their vehicles prior to checking in the vehicle. 19. Canadian vehicles are considered unacceptable for sale unless the vehicle is titled in the U.S. and has a clear title. Also, the vehicle must be announced Canadian with converted U.S. miles. 20. Purchased vehicles left on the lot after 5 days are subject to charges of $10.00 per vehicle, per day. 21. Any vehicle left on the lot for 14 days will be considered abandoned and sold for storage. 22. Dealers must have their vehicles at the auction before the start of the sale or the reserved auction numbers will be cancelled and sold to dealers with vehicles already present.

SUBJECT TO ARBITRATION (UNLESS DECLARED)

A. On units 10,000: Visible Defects, Defective Windshields, Body Work, Paint Work, must be announced (except minor brush touchup.) B. Transmission, clutch, Rear End. C. Air conditioning unit except vehicles over 5 years old. D. Frame damage is arbitrated under the National Auto Auction Association's (NAAA) "Structural Damage Policy". All green light units are subject to this policy unless announced. All red light vehicles sold for over $2000.00 are also subject to this policy. The NAAA policy is available at the auction office and is posted throughout the lanes. Frame damage from normal use (scratches, scrapes, jack or lift marks, minor corner tie down marks, not resulting from accidents) is not grounds for rejection. E. Flood vehicles must be reported within one week and returned within one week from purchase date. The determination of flood vehicles will be made by the auction and the decision of the auction is final in these matters. F. Cracked or wielded cylinder blocks must be reported within 7 calendar days of the sale day. G. Motor defects which cannot be fixed at $300.00 (Excludes: top engine noise and/or camshaft over 50,000 miles). H. Any accepted adjustment is automatically an "AS-IS" I. The first $300.00 belongs to the buyer. If it can be fixed for $300.00 or less the item is not subject to arbitration. J. Unitized body undercarriage, damaged or rotted out, must be announced on vehicles sold over $600.00. K. Altered or removed emission equipment. Exception: Vehicles purchased for less than $605.00 L. ABS Brake Light on or any problems with ABS Brakes. M. Air bag problems or light on. N. Air ride suspensions. O. Unit unsafe to operate on highways will be rejected. P. Inoperable odometers must be arbitrated by 5:00 p.m. sale day and prior to settlement.

"ALL ARBITRATION MUST BE SUBMITTED TO THE ARBITRATOR WITHIN 2 HOURS OF PURCHASE TIME"

NOT SUBJECT TO ARBITRATION

A. One (1) year old or older: windshields, windows, upholstery, rust underneath (except unibody) and any other obvious defects. B. Exhaust system and exhaust smoke (unless excessive). Missing catalytic converter on 5 year old vehicle and newer must be announced by seller and must be reported by end of sale day. C. Leaking and wet transmission. EXCEPTION: excessive leaking of front seal. D. All "ALL-IS" vehicles under any condition are subject to any and all defects, including frame problems and cracked block. The buyer must pay for "AS-IS" vehicles immediately. E. Cruise control, power antenna, electric windows, electric seats, and radio. F. Missing or inoperable high security or valet keys. G. Oil leaks, EXCEPTION: Excessive rear main engine seal leaking only. H. Normal slop in driveline of 4x4. I. 5 years old and older or 50,000 miles and up. Backlash play in driveline and lifter noise (except bearings), however they should be announced as such. J. Vehicles with altered suspension being sold with a green light has 2 hours to arbitrate any problems found. K. Core support damage. L. Frame damage is not arbitrated on units purchased under the red light for less than $2000.00. M. Check engine light.

GREEN LIGHT "SOUND" Selling dealer declares vehicle is subject to all arbitration policies.

YELLOW LIGHT "ANNOUNCED CONDITIONS" Sold with a drive subject to the following conditions vehicles which must be announced. Defects in the engine, transmission, rear end, other mechanical defects of over $300.00, non-standard motor and transmission, major exceptions to the original or advertised production specifications for items deleted or added. 1. Any vehicle manufactured with the option of 4 wheel drive-the 2-wheel drive must be announced. 2. All diesel, diesel conversion and alternative fuel vehicles must be announced. 3. Any unit over 100,000, 200,000, 300,000, etc. must be announced.

BLUE LIGHT "TITLE DELAYED" When "TITLE DELAYED" is not announced at the block the buyer has the right to reject the vehicle. Assignable title does not accompany vehicle. May require up to 14 days for the title be presented to the auction for re-assignment. Buyer is cautioned not to spend any money on unit and not to sell unit until the title is received. Buyer's who in the opinion of Auction Management puts excessive miles on title delayed vehicles MAY FORFEIT THEIR RIGHT TO RETURN SUCH VEHICLES, regardless of the status or time of the present title presentation. Buyer checks are deposited immediately by the auction. After the 14 day period, it is the buyers' option to return the car or wait a reasonable additional period of time for the title. In the event that the title is not received by the auction within the 14-day period, special arrangements must be made with the auction before the unit is returned. The auction must be notified 24 hours prior to the return of the unit for failure to receive title. If auction has mailed title and it is in route, buyer cannot return unit. Seller will be responsible for the sale fee of any returned vehicle due to an unannounced condition or Title Delayed return.

RED LIGHT "AS-IS" This light is used to sell all "AS-IS" units which means these units cannot be rejected for any reason. All vehicles sold for $600.00 or less are AS-IS. This is true regardless of the color of the light on at the time the vehicle is auctioned. AS-IS vehicles must be paid for immediately. RED LIGHT "AS-IS" CONT. EXCEPTION: If not announced, R-title, previous salvage history, nonfunctional ODOMETER (not SPEEDOMETER), or over 100,000 miles. Odometer problems must be reported the day of the sale. Vehicles sold "AS-IS" are subject to any and all defects including frame, cracked block, etc.

Red Light, also, will be used to sell and these must be announced: " All units over 100,000 miles " Reconstructed " Salvage or previous salvage " Flood vehicle " Boats " Municipal Car " Police Car " Dune Buggy " Motor Home " Antiques " Reconstructed " Taxi " Fire Car " ATV vehicles " Motorcycles " Trailers

The auction house does not guarantee the year of any foreign vehicle, house trailer, boat, boat motor, antique vehicle, dune buggy, motorcycle, or motor home. Satisfy yourself before settlement, as the auction will not become involved in any subsequent dispute.

RECONSTRUCTED VEHICLES\ Selling dealer is responsible for announcing if the title is or ever has been a Reconstructed or Salvage title, regardless of the color of the light which the vehicle was run under. Any problems arising from these conditions must be reported to the auction within 30 days. NO EXCEPTIONS. Any vehicle sold for $600.00 or less and "AS-IS" vehicle regardless of what light it was run under.

OUTSIDE SALES Any sale other than "under the hammer" will be considered an outside sale. Outside sales are strictly between the buyer and seller and are not binding on either party until the sale in consummated. The auction will not become involved in any arbitration procedures or be responsible for any defects on units sold outside the sale. EXCEPTION: Frame

ODOMETERS Seller must announce if odometer is not working properly, if he has any knowledge that the mileage on the vehicle is different than the mileage shown on the odometer, and if in excess of 100,000 miles. 1. Tri-State Auto Auction has the right of suspend any dealer that it believes is guilty of selling vehicles with tampered odometers. 2. Any dealer either guilty or innocent, who sells a vehicle where the odometer tampering can be confirmed, will be required to purchase the vehicle and reimburse the buyer for reasonable handling expenses. 3. We check the title closely for alterations or erasures. If we feel an altered title was knowingly presented to us for processing, we will suspend the dealers' trading privileges.

BUYERS Please examine vehicles before bidding and be familiar with all announced conditions of the unit. Vehicles should not be road tested until the buyer has the proper sales receipt for release from the lot. Please examine the serial number, plate, and the mileage reading before leaving the sale. Pay for each vehicle with a separate check. BUYER ASSUMES REPSONSIBLITY FOR MECHANICAL FAILURE AFTER LEAVING THE SALE. Bringing retail customers is strictly prohibited and will result in revoked buying privileges.

SELLERS Please have your units on the premises as early as possible on Thursday, avoiding the last minute rush. Please represent your vehicle accurately and fairly. It is the seller's obligation to watch lights and listen to "announced conditions". Buyers and sellers should always use their ID card to enter their vehicles for sale and sign for all purchases. Please help us to serve you better by always using your ID card. The decision of the arbitrator and/or management shall be FINAL in all disputes. Dealers reserving numbers and not using them will be billed a $25.00 no-show fee.

CERTIFICATES OF ORIGIN Vehicles sold with Certificates of Origin must be announced. Only franchised dealers may sell with Certificates of Origin and a special release form must be signed by buyer and seller. The auction will not be responsible to buyer if sales tax is applicable in their state. Seller must announce Certificate of Origin.

TITLE MUST BE TURNED IN BY 5:00PM SALE DAY OR UNIT WILL BE SOLD "TITLE ATTACHED"

RETURNED CHECKS - $50.00

UNACCEPTABLE TITLES TITLES WITH THE FOLLOWING DEFECTS ARE NOT ACCEPTABLE: Alterations, Erasures, Wrong digits or description, Improper Reassignments, Missing Forms, Salvage Titles (unless announced), Foreign Country Titles.

CHILDREN We love children and would not want any of them to be hurt. For safety reasons, children without a valid drivers license are not permitted at out sale. Your cooperation will be appreciated.

Member: NIADA National Auto Auction Association Eastern Auto Auction Association Pennsylvania Independent Automobile Dealers Association Pittsburgh Automobile Trade Association Auction Insurance Association Auto Check

Thank you for attending and abiding by these rules. We believe they are fair and just. They enable us to operate a proper and honest auction for all. If you ever have any questions or comments concerning the operation of our sale, we are always willing to listen.

The Owner and Management