Announcement/Light Legend

Announcement Light Usage Recommendation

Green Yellow Red

Ride & Drive Only ! N/A N/A

Ride & Drive with Caution Announcement ! ! N/A

Limited Guarantee Only N/A ! N/A

As-is Only N/A N/A !As-is, No Arbitration N/A ! !

Arbitration Policy

Effective Date: February 1, 2016

Standards Page 9 of 16

Arbitration Policy

Effective Date: February 1, 2016

Standards Page 10 of 16

VI I I . St r u ct u r a l Dam ag e, A l t er a t ion o r Cer t i f i ed St r u ct u r a l Rep ai r o r Rep lacem en t Po l i cy

The purpose of the NAAA St ructural Dam age Policy is to define and clar ify term inology associated with st ructural dam age and to specify the disclosure requirem ents of the seller for vehicles offered at NAAA affiliated auct ions. The policy is intended to provide adequate disclosure to the buyer for inform ed purchase decisions and to lim it arbit rat ions for the seller. This policy, along with the m ain Arbit rat ion Policy will serve as the pr im ary cr iter ia for all arbit rat ion proceedings. 1 . Def in i t io n s

a . Veh icle St r u ct u r e-The m ain load-bear ing plat form of a vehicle that gives st rength, stabilit y and design exclusivit y and to which all other com ponents of the vehicle are fastened. For purposes of this policy, there are three m acro types:

i . Un ib o d y -A type of st ructure

whereby the floor, roof, panels, etc. are bonded together into one unit , thereby elim inat ing the need for a separate convent ional fram e. Unibody st ructures are t ypically shorter, sturdy and have thinner wall thickness.

i i . Un ib o d y o n Fr am e-A type of st ructure whereby a unit ized st ructure is bolted to a convent ional fram e.

i i i . Con v en t ion a l Fr am e-A type of st ructure consist ing of two sym m etr ical rails (beam s) connected by cross-m em bers.

b . UVMS- Used Vehicle Measurem ent Standard. The com m ercially acceptable m easurem ent deviat ion from the vehicle’s or iginal st ructural specif icat ion in order for any deviat ion not to be considered st ructural dam age.

2 . Reco m m en d ed D isclo su r es a . St r u ct u r a l Dam ag e- Dam age to the

st ructure or a specific st ructural com ponent of the vehicle. Often referred to as fram e dam age, although it also applies to Unibody and Unibody on Fram e st ructures in addit ion to Convent ional Fram e.

b . Cer t i f ied St r u ct u r a l Rep a i r s/ Rep lacem en t - Repairs to a specif ically ident if ied st ructural com ponent of a vehicle that has been cert ified to be within the Used Vehicle Measurem ent Standard (UVMS) .

c. St r u ct u r a l A l t e r a t i on - An alterat ion to the vehicle’s st ructure including a lengthened or shortened fram e, a m odified suspension, or the installat ion or rem oval of after-m arket accessor ies.

Arbitration Policy

Effective Date: February 1, 2016

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3 . Se l le r D isclo su r e Req u i r em en t s Sellers m ust disclose st ructural dam age, alterat ions, repairs or replacem ents (cert if ied or non-cert if ied) as out lined in this policy pr ior to selling a vehicle at auct ion regardless of sales channel or light condit ion (except RED-Yellow light , see m ain Arbit rat ion policy for light definit ions) . Disclosures are required for the following:

a. Any/ all exist ing perm anent (non-repairable aka kinked or broken) st ructural dam age as defined in this policy

b. I m proper and/ or substandard pr ior

repairs (not m eet ing OEM repair guidelines)

c. Repairs not cert if ied to be within the

UVMS I m proper alterat ions to the st ructure Lengthened or Shortened st ructure

d. Altered suspension that requires the

st ructure to be m odified from its OEM form .

e. After-m arket accessories installed or

rem oved to the st ructure.

f. Towing packages installed (or rem oved) where new holes are dr illed, OEM holes are enlarged, or if the towing package is welded or brazed to the st ructure.

g. Mult iple access holes ( regardless of

size) or singular access holes greater than 5/ 8" . Access holes between 1/ 4" and 5/ 8" are subject to disclosure based upon locat ion and condit ion of st ructural com ponent .

h. Corrosion of st ructural com ponents determ ined by one or m ore of the following; when the subst rate loses its shape, the or iginal bonds near the affected area are loose or no longer in existence, the or iginal thickness of the subst rate has been reduced by m ore than 25% , the affected area can longer possess its absorpt ion or deflect ion propert ies.

i. St ructural tear dam age ( i.e. t ransport t ie down) if m ore than 1" in length (m easured from tear start / stop points)

j . Dam age due to im proper j acking or lift ing that perm anent ly deform s st ructural com ponents out lined in this policy.

k. Dam age due to contact with parking abutm ents and/ or road debris that perm anent ly deform s st ructural com ponents out lined in this policy.

l. Roof bows/ braces that have been m odified, have exist ing dam age or rem oved. A replaced roof skin is not a required disclosure in term s of the St ructural Dam age Policy.

m . The C pillar/ quarter or Cab panel m ay or m ay not be a st ructural com ponent (s) as per the vehicle m anufacturer.

Arbitration Policy

Effective Date: February 1, 2016

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4 . Ar b i t r a t i o n Ru les f o r St r u ct u r a l Dam ag e

a. A vehicle m ay be arbit rated if it has undisclosed exist ing dam age or repairs, which should have been disclosed under this policy, even though the vehicle is within the UVMS. I f st ructural dam age is properly disclosed, the vehicle m ay only be arbit rated for im proper repair of the designated area, exist ing dam age or repairs to other areas of the vehicle not disclosed, or for failure to be within the UVMS.

b. I n the event that st ructural alterat ion

is disclosed on a vehicle, the vehicle m ay only be arbit rated for dam age or repairs to st ructural com ponents other than those disclosed or in the event of im proper alterat ion.

c. Dam aged or replaced core supports or

rear body panels do not require a st ructural disclosure under this policy.

d. Dam age to the aprons, rail f loor pan

assem bly, inner wheelhouse (upper or lower) , D pillar ( if equipped) or other ancillary st ructural com ponents on a unit ized st ructure in the area where the radiator core support or rear body panel at taches will require a disclosure if perm anent dam age exists.

e. Brazed exhaust hangers are not a

required disclosure under this policy.

f. Facilitat ing auct ion will, at it s discret ion, have a vehicle m easured according to the UVMS at a facilit y of it s choice. Pr ior to sending the vehicle for m easurem ent , the auct ion reserves the r ight to com plete a visual ver if icat ion of the physical condit ion of the vehicle to determ ine that it should be m easured. I f the m easur ing facilit y determ ines that the vehicle is within the UVMS, the buyer of the vehicle will be responsible for the charges paid to the facilit y. Likewise, if the m easur ing facilit y determ ines that the vehicle is not within the UVMS, the seller will be

responsible for the charges paid to the facilit y.

g. Visual evidence supersedes any/ all

m echanical or elect ronic m easurem ents.

h. For m easurem ents according to the

UVMS, the following guidelines will apply:

i. The vehicle st ructure m ust m easure to a total tolerance of no m ore than + / - 8 m illim eters (m m ) of published specificat ion of length, width and height at cont rol points that capture the front (2) , center (4) and rear (2) sect ions of the vehicle.

ii. Sym m et r ically ( com parat ive m easure from side to side and point to point based on point m easurem ent ) , the length, width and height m ust m easure to a difference of no m ore than 6 m m . Upper body m easurem ents ( t ram gauge) by them selves will not be adequate.

i. Buyer m ust arbit rate any/ all st ructural m isrepresentat ions as out lined in this policy within published t im elines (out lined in the m ain Arbit rat ion Policy Guidelines) from date of purchase (purchase day counts as Day One) .

j . The buyer m ust contact and follow the

arbit rat ion process of the auct ion where the vehicle was purchased including the auct ion’s direct ion for return of the vehicle and the t im efram e allowed for the vehicle to be returned.

k. I n the event of im properly disclosed

st ructural dam age by the seller, the buyer will be ent it led to reim bursem ent in accordance with the m ain Arbit rat ion Policy.

Arbitration Policy

Effective Date: February 1, 2016

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Arbitration Policy

Effective Date: February 1, 2016

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Arbitration Policy

Effective Date: February 1, 2016

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Arbitration Policy

Effective Date: February 1, 2016

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I X. Flood , Pu d d le o r St r eam Po l icy

Vehicles are frequent ly exposed to m oisture dur ing their ordinary operat ion, m aintenance, and recondit ioning. Occasionally, such exposure m ay leave residual m arks or indicators sim ilar to those left by exposure or im m ersion of the vehicle in f loodwater . I n determ ining what condit ions require disclosure or in arbit rat ing vehicles for flood exposure/ dam age it is cr it ical that the total condit ion of the vehicle be considered including VI N data history.

1 . Disclosu r e No t Req u i r ed No disclosure is required nor is arbit rat ion allowed for the following types of water exposure, provided that none of the com ponents out lined below are dam aged:

a. Rain, snow or sleet due to open

windows, doors or tops or leaking seals.

b. Car wash or r inse water.

c. Carpet or upholstery sham pooing or

cleaning.

d. St ream , pond, puddle or f loodwater that does not r ise above the rocker panel or otherwise enter the passenger com partm ent .

e. St ream , pond, puddle or f loodwater

that enters the luggage com partm ent , but does not dam age any elect r ical com ponents (such as light ing or wir ing harness) or does not enter the passenger com partm ent .

2 . D isclosu r e Req u i r ed Disclosure is required and arbit rat ion shall be allowed under the following condit ions: a. The t it le has been correct ly branded

indicat ing flood history of the vehicle.

b. Any of the following com ponents have been dam aged due to st ream , pond, puddle or floodwater im m ersion/ ingress:

i. Front or rear internal light ing or wir ing harnesses

ii. Engine and it s m ajor com ponents iii. Transm ission and different ial iv . Dash inst rum ent panel and wir ing v. Passenger seat cushions v i. Power seat funct ions or window

m otor v ii. Major sound system com ponents

3 . Recom m en d ed Disclosu r e

The recom m ended disclosure is “Flood Dam ag e.” This declarat ion should be m ade whenever ex ist ing or pr ior f lood dam age is found and therefore requires disclosure. While the vehicle is recom m ended to be sold under the red light , the disclosure “Flood Dam age” is required for all sale lights except the “ red/ yellow As- I s, No Arbit rat ion” light com binat ion.