UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF NEW YORK ---------------------------------------------------------X In re: Chapter 7 QLS LINEN SERVICE INC. Case No. 17-44523 (ESS) Debtor. --------------------------------------------------------X TERMS AND CONDITIONS OF SALE These terms and conditions of sale (the “Terms and Conditions of Sale”) are being promulgated in connection with the auction sale (the “Sale”) of the Debtor’s assets (the “Assets”) pursuant to the United States Bankruptcy Code, Federal Rules of Bankruptcy Procedure, and the Local Rules of the United States Bankruptcy Court for the Eastern District of New York. The Sale of the Assets is to take place on Thursday, April 26, 2018 @ 11:00 a.m. at 131-07 14th Avenue, College Point, NY 11356 (the “Premises”). The seller of the Assets is Paul I. Krohn (the “Trustee”) as the Chapter 7 Trustee of QLS Linen Service Inc. (the “Debtor”), a chapter 7 bankruptcy matter currently pending in the United States Bankruptcy Court for the Eastern District of New York as Case No. 17-44523 (ESS). The auctioneer (the “Auctioneer”) is: Victor M. Moneypenny, MYC & Associates, Inc. (“MYC”), 1110 South Avenue, Suite 22, Staten Island, NY 10314, tel. (347) 273-1258, www.myccorp.com. The Assets will be sold free and clear of any and all liens, security interests, claims and encumbrances, with said liens, security interests, claims and encumbrances, if any, to attach to the net proceeds realized from the sale, in their order of priority, and to the extent valid and after the payment of 11 U.S.C. Section 506(c) expenses, including the Auctioneer’s commissions, and attorney’s fees and expenses. In order to be eligible to bid on the Assets at the Sale, each bidder must first register with the Auctioneer and present a valid photo identification to the Auctioneer. The Trustee has directed that the Assets be offered for sale first in bulk and then in lots, or in any other manner in its or the Auctioneer’s discretion, with the highest aggregate bid to be accepted. The Assets may be sold or withdrawn from sale without prior notice. The Auctioneer will set the opening bid and bidding increments for each lot. These amounts will vary depending on the lot being sold. In case of dispute on the knockdown of a lot, the Auctioneer reserves the right to put up the lot and resell immediately to the highest bidder. In the event of any passed lots, the Auctioneer reserves the right to sell the passed lot to the highest bidder. At any time during the Sale, the Auctioneer reserves the right, in his sole discretion, to require a deposit in cash or certified check of up to 25% of the amount of any bid, and to increase the amount of required deposit if the Auctioneer deems it necessary. In case any such required deposit shall not be made, the Auctioneer reserves the right to put up the lot and resell immediately to the highest bidder. All deposits are non-refundable. The Auctioneer reserves the right to require all final settlements to be in cash or certified check only before the Assets purchased are removed from the Premises by a bidder. If any of the Assets are not paid for by 5:00 p.m. on Monday, April 30, 2018, the Auctioneer reserves the right to put up the lot and resell it immediately to the highest bidder The catalog description of the Assets is not guaranteed to be correct and should be independently verified. The description of the Assets is subject to errors and omissions. Therefore, any bidder should examine the Assets prior to any bidding as no allowance will be made and no refund will be given for any error or inconsistencies in the description. Every lot is sold in an “as is, where is” condition regardless of what the description in the catalog may be. No guarantees are made, either expressed or implied. The Assets will be made available for examination before purchasing. No claim of any kind whatever, except shortage in count, will be allowed, and all such claims must be made before goods leave the premises as no claims will be allowed afterward. Any purchaser is to remove the Assets at his or her own risk and cost. If the Auctioneer, in his sole discretion, cannot consummate the sale of a lot for whatever reason, his/her/its only obligation is to refund the deposit to such bidder. Absolutely no goods will be delivered during the Sale. Each bidder must file with the Auctioneer a certificate of registration with authorized identification number from any state where payment of sales tax is required and produce such sales tax number at each and every sale or pay the respective sales tax. The Assets sold at the Sale must be removed from the Premises by 5:00 p.m. on Friday, May 4, 2018. Any Assets purchased but not removed by the aforementioned date and time may be resold at any time thereafter without further notice at the loss, risk and expense for the account of the purchaser. The Trustee and the Auctioneer will not be responsible for any goods left on the premises after May 4, 2018. The record of sale kept by the Auctioneer must be accepted by the buyer as absolute and final. Books, papers and accounts are the property of the Debtor and/or Auctioneer and will not be sold. The Debtor and the Auctioneer reserve the right to reject any bids for any lots made for the Assets at the Sale. Nothing contained in these Terms and Conditions of Sale shall supersede or alter any provisions of title 11 of the United States Code (the “Bankruptcy Code”) or of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) or otherwise interfere with the jurisdiction of the Bankruptcy Court. To the extent of any conflict between the Bankruptcy Code and/or the Bankruptcy Rules and these Terms and Conditions of Sale, the Bankruptcy Code and/or the Bankruptcy Rules shall govern. All terms and conditions set forth in these Terms and Conditions of Sale are subject to modification as may be directed by the Court. The Auctioneer reserves the right to modify these Terms and Conditions of Sale at the Sale or thereafter, as they deem necessary, so long as the consistency with the provisions of the Bankruptcy Code and/or prior orders of the Court is maintained. I have read these Terms and Conditions of Sale and agree to be bound by them.