Shawn Terrel CAI, AARE Vice President United Country Auction Services

United Country Auction Services Executive Team Mike Jones, President of United Country Auction Services Chairman ( ) and president ( ) of National Auctioneers Association, Past president of Texas Auctioneers Association and Hall of Fame member, International Auctioneer Champion (1998), Texas Champion Auctioneer (1995) More than 30 years experience as owner and president of an auction company and national auctioneer training school, conducting auctions across the U.S. Shawn Terrel, Vice President of United Country Auction Services Chairman ( ) and Past President ( ) of Oklahoma State Auctioneers Association, 2007 Oklahoma State Champion Auctioneer Director, National Auctioneers Association ( ) More than 18 years of professional auction experience, key auction facilitator with leading auction firm in south central U.S., conducting over 2,000 auction events incorporating live internet auction simulcasts in a large percentage of them Facilitated auctions in excess of $50 Million dollars in one day

United Country Auction Services Executive Team Dan Duffy, Chief Executive Officer CEO 2005 Microsoft Global Partner of the Year Leadership in IPO process for UBid and private placement for online industrial asset marketing company. Executed over 200 strategic mergers and acquisitions Senior executive and founding member of the Chicago office’s Ernst and Young Center for Strategic Transactions Dave Dickey, Chief Operating Office EVP Global Delivery, ePartners Incorporated Responsible for software development and client delivery to over 12,000 clients globally, Lead developer for thriving database software organization Kevin Oldham, Vice President, UC Marketing Services 13 years marketing and real estate experience Founding member and Vice President, Marketing & Sales of marketing and design firm catering to the real estate industry

The Nations Largest Real Estate and Auction Company 500+ offices in 46 U.S. states, Costa Rica, Panama and Mexico Over 4,000 brokers, agents and auctioneers in our system

Auction Industry Overview It is estimated that there are between 40,000 to 50,000 auctioneers (licensed and unlicensed) in the United States today Less than 4,000 are recognized by the National Auctioneers Association Real Estate Auction industry growth grew by 5.3% (13.5 Billion in 2007) $258 billion sold in 2008 at auction Percent of total sales growth ( ) – 47.7% Residential real estate – 36.8% Land and AG real estate – 31.3% Commercial & industrial real estate – 21.8% Charity – 19.7% Commercial equipment & machinery – 10.8% Art, antiques, collectables – 7.9% Intellectual property – 5.8% Automobiles

History of Auctions 500 B. C. in Ancient Greece 193 A.D. in Imperial Rome 1620 – Pilgrims brought the auction method to America 1674 – The “Stockholm Auction House” was Established in Stockholm Sweden (oldest auction house in the world) 1861 – Civil War’s effect on auctions 1929 – The Great Depression 1989 – The formation of the Resolution Trust Corporation 2008 – Financial collapse compared to the worst in U.S. history

History of Auctions 500 B. C. in Ancient Greece: Greek historian Herodotus first documented annual wedding auctions in Babylon. 193 A.D. in Imperial Rome: Auctions were held in the “Atrium Auctionarium” and the auctioneer was titled the “Magister Auctionarium” (which required a license). A spear was driven in the ground to signify the beginning of the auction and removed at the end. One of the most astonishing auctions in history occurred when the entire Roman Empire was placed on the auction block by the Praetorian Guard. Didius Julianus was the high bidder and became the Emperor of the Roman Empire. Unfortunately, he was beheaded two months later when Septimus Severus conquered Rome. It is said that Julianus may have been the first victim of “buyers remorse”.

History of Auctions Auctions Come to America: when the Pilgrims brought OLD WORLD sales methods with them. Because of the lack of marketable items, it is probable that auctioneering was considered a part-time job. After colonization of America, there was strong movement westward. Settlers began selling personal property that they could not move with them at public auction. The new immigrants coming to America by ships would purchased these items at auction. Stockholm Auction House: Today referred to as Stockholms Auktionsverk “Stockholm’s Auction House”, was established in 1674 in Sweden. It is the oldest auction house on record in the world Civil War: By 1861 the Civil War had it’s own effect on the auction business. Spoils of War (items taken during battle) would be sold at auction by Officers (generally holding the rank of Colonel) giving the auctioneer an honorary title of “Colonel”.

History of Auctions The Great Depression Era: Leading into “The Great Depression” Era of 1929, auctions gained in popularity but immediately became stigmatized due to the trauma that families experienced from having their homes, businesses and farms foreclosed on and sold at public auction. Even though the auctioneers did not Foreclose on the properties, they received criticism thru the process. This impact affects even today. Resolution Trust Corporation (RTC): In 1989 Congress formed the RTC to respond to insolvencies of over 747 Federal Savings and Loan Associations. The RTC liquidated assets across the nation in an attempt to re-pay insured depositors along with funds dedicated from Congress. While the RTC represented a failure of one financial system, it put the spotlight on the effectiveness and expediency of the auction method of marketing. Real Estate auctions were taking place all across the nation and gaining in strength, popularity, and recognition as being a viable marketing tool for RE and personal assets. Since then the auction method of marketing has continued to grow into a widely respected and exciting method for marketing property.

Why Do People Use Auctions? One of the oldest forms of offering property (real or personal) to the public Creates competition and a sense of urgency that can not be duplicated in any other form of marketing Expedites the marketing process and drives the market to the property Eliminates a ceiling on the price Seller remains in full control throughout the process by setting all the terms of sale (date, time, deposits, conditions, etc) The process is fully transparent and recognized as being fair to all parties and it reveals the true Fair Market Value (FMV) of an asset Satisfies Governmental and Judicial requirements Provides an unlimited amount of flexibility with any type of real or personal asset, when combined with multi-parcel bidding, multi-property events, live internet bidding, blended approach, and static (timed) online platforms

UCAS Value & Service Offerings United Country Auction Services Competitive Differentiation Live Auctions Internet Auctions Auction Marketing Auction Consulting Business Development

Live Auctions Live auction training and education Professional services – Auctioneer (bid calling) – Bid Spotter (ring person) – Registration, Clerking & Cashiering – Site set-up & Project Managers – Closing & Mortgage Solutions Auction formats supported – Onsite auctions – Offsite auctions – Online auctions – Real Time internet bidding (audio & video streaming) – Multi-property auctions – Multi-parcel auctions Audio visual presentations Event management assistance

Internet Auctions Internet auction training and education Online real estate and personal property platform – – Static (timed )auction format – Personal property & real estate solutions – Global “real time” bidding application – Live A/V simulcast (broadcasting) of auction Full integration with live auction event Post auction reporting and reconciliation functionality Prospecting tool AuctionGuard – online buyer pre-qualification Auction Payment Network – quickly and securely invoice and reconcile your auctions Discounted rates to UCAS auctioneers

Internet Auctions Industry leading site Timed auction format RE & PP platform Live bidding program Real time audio/video broadcast Global solutions

Internet Auctions UC/Proxibid Discount Real Estate – Hosting Fees: $100 for first lot, $50 for each additional lot ($500 cap per auction event) – (IBP) Internet Buyers Premium: the greater of $200 or 1% per lot Personal Property – Hosting Fees: $50 per auction event – (IBP) Internet Buyers Premium: see Proxibid’s rate card ** IBP only applies if Proxibid delivers the winning bidder/buyer

Internet Auctions UC/Proxibid Discount

Auction Marketing Auction marketing oversight and direction United Marketing Services (UMS) – Professional auction marketing solutions – Brochures & post cards – Print media – Press releases – Internet & digital marketing campaigns – Project management UC Confidential database Telephone campaigns Customized auction websites Customized auction signage Corporate identity marketing

Auction Consulting Access and consult with leading industry experts – Mike Jones CAI, GPPA 30+ years in auction business Real estate (residential, business, plant equipment) Benefit auction specialist Past president of NAA and IAC Champion – Shawn Terrel CAI, AARE 18 years in auction business Real estate (land, residential, oil & gas, heavy equip, livestock) Over 2,000 auctions and conducted events over $52 million Past president of OSAA and State Champion Director of the National Auctioneers Association Executive calls with high end prospects and clients Corporate focus and oversight on large projects Specialty practice groups in a variety of market segments

Business & Professional Development Strategic planning workshops Associate auctioneer and agent recruiting tools Associate auctioneer and agent retention tools Texas Auction Academy in Dallas, TX Auction training events (regional, divisional, national) National Auctioneers Association State Auctioneers Associations Exclusive webinars on a variety of topics Executive team business building events

Competitive Differentiation The ability to separate yourself from your competitors Expanded marketplace (brokers and auctioneers) Representing a multi-billion dollar real estate company Company viewed by over 94 million consumers “weekly” Specialization in strategic markets National network of brokers, agents and auctioneers Technology – National auction websites – Searchable office websites – Search engine optimization – Custom auction event websites – Online auction technology – Live internet simulcasts – Automated CRM tools

Competitive Differentiation Marketing – EMS – Fully staffed marketing dept – Marketing management services – Professional material development – Research and development on complicated projects – Property information packets Ancillary Services – 1031 exchange services – Home protections plans – Home & land finance services – UC / Info USA purchased names database – UC office solutions – UC health plans – Equipment finance solutions

Competitive Differentiation Strategic Partners – Ducks Unlimited – John Deere – National FFA Organization – Rocky Mountain Elk Foundation – The American Outdoorsman – Land Unlimited – Rocky Mountain Log Homes

Colliers International – Second largest commercial marketing company in the world – 12,509 employees globally and 4,387 commercial brokers – 512 offices worldwide in 61 countries – Revenue exceeding $1.5 Billion – Over 979 million sq/ft under management – 73,972 Lease/sales transactions – Total transaction value $59.6 Billion Instant creditability in the commercial and industrial real estate marketplace Professional strategic relationship to provide auction services within the Colliers International system

UC/Colliers International Commercial Auctions

Colliers International Relationship Over $1 billion dollars in potential auction opportunities in the first 6 months of the relationship Engagement access points: – Mike Jones or Shawn Terrel in the home office of United Country is the point of contact for UC – Patrick Duffy in the Houston Colliers International office is the point of contact for Colliers Leverages a commercial knowledge base to capture expanded market opportunities Colliers listings converted into auction opportunities Cooperative efforts on large commercial projects Case study’s: – TRG Call Centers – Houston MP Event – Jacksonville MP Event

The Auction Process Initial Consultation & Qualification Proposal Development & Listing Auction Marketing Auction Day (conduction) Closing

The Auction Process Initial consultation Qualification process – Sellers motivation – Sellers expectations Proposal development Marketing discussion – Upfront marketing costs and expenses Listing the auction – Contract signing, disclosures, collect information, define responsibilities of each party, setting expectations Marketing campaign – Critical part of the process

The Auction Process Property information packets (PIP) – All pertinent information and full disclosure – Proof of bidders receipt Inspection periods Auction location Day of event details – Professionalism, appearance, site setup, onsite versus ballroom – Multi-media presentation – Online broadcasting Post auction duties Closing

Auction Listing Considerations Seller’s Motivation (why are they selling) Seller’s Expectations (what do they expect to receive) Mortgages/Debt Load Sellers Ability to Pay Marketing Costs Property Desirability Properties marketing History Property Current Condition Local Acceptance of Auctions

Disqualifying Factors Sellers Price too high and not willing to waiver Seller is upside down financially on the property Property is in poor condition for the expected price Seller is not forthcoming and giving evasive answers or not fully disclosing all information Seller is unwilling to invest in a healthy marketing budget Seller refuses to give full control to the auctioneer

Blended Marketing Model AC

Leveraging Auctions as Networking Opportunities Personal meetings between UC brokers & UC auctioneers Regional meetings Personal contact with outside brokers Local business organizations Lunch meetings with area professionals – Bankers, attorneys, CPA’s, trust officers, etc Attending benefits and community functions Leveraging strategic relationships (JD, DU, RMEF, FFA, etc)

Auction Formats Reserve Auctions  The seller is allowed to set a minimum bid or “reserve” price on the property being offered at auction. Absolute Auctions  The property is advertised “absolute” and offered at public auction without a reserve or minimum bid price that has to be reached to sale the property.  Absolute Auctions can generate larger amounts of interest as the property shall be sold regardless of price. Absolute with Minimum Opening Bid Auctions  The property is advertised to be sold “absolute” with an advertised minimum opening bid. In this format, the property will be sold to the final bid if it is at or above the advertised minimum bid.

Auction Formats Recommended Starting Bid Auctions  The property is advertised with a minimum starting bid. In this format, the property does not say it is being sold “absolute” so it may have an undisclosed reserve price that it will need to meet before it is able to be sold. Sealed Bid Auctions  Generally advertised for bidders to submit their bids to a location on a given (time, date, etc) and instructions with where, when, and how the bids will be opened and handled  Commonly utilized by Attorneys, CPA’s, Banks, Trust Companies, and is gaining acceptance by auction companies across the country Timed (Static) Online Auctions  Recognized by many as an “eBay” style auction  Online auction platform allows successive bidding in a “timed” auction format  Can incorporate a dynamic ending to extend the final minutes of bidding

Multi-Parcel Auctions Concept The multi-parcel concept is simple. The system involves dividing large tracts of land into smaller tracts, then allowing bidder’s to bid on individual tracts, combinations of tracts, and the entire property. This method allows the maximum amount of buyers to participate in the event. Allowing the maximum amount of bidders to participate will increase the overall price per tract and maximize the gross sales volume at the end of the day. Multi-Parcel Bidding Software Multi-Parcel Bidding Software makes the process more effective. MP software keeps track of all bids placed and computes the amount the next bidder will have to bid on a tract or combination of tracts. During the auction event the multi-parcel bidding software can be projected on an overhead screen allowing the bidders to have full understanding and knowledge of what the bid is and who holds the bid. In some cases a “mock” auction can be conducted in advance of the live auction, to educated bidders and make them more comfortable with the process.

Multi-Parcel Bidding Software

United Country Intranet Resource Site

Testimonial from Ducks Unlimited “After months of working to sell a 1,100 acre tract of land on our own, we engaged with United Country Auction Services to auction the property. We selected United Country due to our confidence in their ability to deliver timely results. We were extremely impressed with their marketing process and the professional experience of the team.” Phillip Milburn, Ducks Unlimited

Testimonial from Progressive Farmer “Progressive Farmer enjoys the single – largest circulation of any magazine in our space, with a monthly audience of over 600,000 subscribers. When we sought a partner in Real Estate that was truly connected to America at the local level, United Country stood out as the preferred partner. Their ability to deliver technology and marketing solutions is exceptional.” Bruce Thomas Editor – Progressive Farmer

Full Auction Service Company Conventional Sales Methods Auction Services National and Global Marketing Campaigns Website Development and Implementation Internet Marketing and Live Auction Simulcast Search Engine Optimization (SEO) Lead Generation and Management Proprietary Buyer Database Programs Valuation Services United Country Home Protection Plans United Country Home Mortgage United Country Land Finance Business Management Services National 1031 Exchange Services

Value to Buyers and Sellers UnitedCountry.com, web programs Prospect data base, direct mail National marketing program Exclusive catalogs and affinity programs Property Marketing Technology #1 Country Real Estate Website Continual SEO Optimization Listing feeds to 3 rd party sites Exclusive website partnerships Fully automated marketing tools Auction services, 1031 exchanges, home warranty 44 state footprint, over 650 offices $2.6 Billion sales Ancillary Services Geographic Reach Differentiated Client Experience Differentiated Client Experience

Our Unwavering Vision to be The Partner of Choice United Country Real Estate and Auction Services is renowned as the most trusted and valued strategic real estate and asset marketing organization serving the U.S. market. Dan Duffy, CEO United Country

Thank you.