Procedure for Bidding

NORI Enterprise Co., Ltd. Auctioneer of each auction (*) bidding Agreement
(excluding GUIA & NORI Parade Auction)

These Terms and Conditions prescribe regulations of participation in each auction (hereinafter referred to as the “Auction”) that hosted by NORI Enterprise Co., Ltd (hereinafter referred to as the “Auctioneer”).

1. Eligibility to participate in the Auction

(1)Auction is for members only.
(2)Auction operates sellers of used equipment. Eligibility to participate in Auction may be given to companies that passed eligibility examination conducted by the Auctioneer or JEN Corp. (hereinafter referred to as the “JEN”) affiliated company of Auctioneer.
   *The bidding eligibility examination shall be conducted under the Auctioneer’s own criteria.
   *If you register as member at the Auction, you shall be registered automatically at JEN auction. You may bid at JEN Auction, but this case is considered that you agreed to membership’s regulations of bidding at JEN Auction.
(3)For bidding registration, the payment of the security deposit shall be requested.
   a)The amount of the security deposit shall be no less than 500,000 yen, and the exact amount shall be determined through an examination of the Auctioneer (according to the standard of no less than 10% of an estimated auction price).
   b)No interest shall accrue on the security deposit.
   c)The security deposit protects the Auctioneer and JEN against the risks of unpaid debts.
   d)The security deposit shall refund the difference after clearance of assumed debt to the Auctioneer and JEN, when the Auctioneer decides on the withdrawal. If the amount of deposit is not enough, the member shall pay demanded amount from the Auctioneer or JEN immediately.
   e)If a member does not claim the refund of the security deposit after the expiry of a full three years from the date of cancellation of the member, the Auctioneer shall be exempted from any obligation to refund.
(4)The applicant company registered in Japan must have a resale license. A member from whom a resale license is required must provide the Auctioneer with the information about such license (i.e. license number, place of acquisition and name of acquirer).

2. Elimination of anti-social forces

(1)No person or entity classified in any of the following can participate in the Auction.
   a)Organized crime group, member of an organized crime group, quasi-member of an organized crime group, company affiliated with an organized crime group.
   b)Corporate extortionist, groups engaged in criminal activities under the pretext of political campaigns or social campaigns, or crime groups specialized in intellectual crimes (e.g. group engaged in bank transfer fraud) and so on.
   c)Member who commits any of the following acts by himself/herself or by use of a third party
    -Act to demand something in a violent manner
    -Act to demand something unreasonably
    -Act to use threatening words or behaviors or violence in relation to transactions
    -Act to damage our reliability or prevent our business by use of fraudulent means or force
   d)Any other person or entity similar to any of the above.

3. Obligations of members

(1)Bidding and buying under the name of others are prohibited in the Auction. If bidding and buying under the name of others is found, depend on conditions this act may be subjected to liabilities for damage. In this case, member must follow to demands of Auctioneer.
(2)If the Auctioneer judges the act as prevention of auction operations, for each auction this act may be subjected to liabilities for damage. In this case, member must follow to demands of the Auctioneer.
(3)Each member shall be fully responsible for keeping ID and password for internet auction participation and Bidder No received at Parade Auction. Each member shall be liable for any divulgence of ID, password or damage from loss.

4. Cancellation of membership contract

(1)The Auctioneer may cancel member registration and withdraw membership without prior notice if any of the following conditions applies to a member.
   a)The member fails to fulfill the obligation to pay dues (including payment overdue) from the Auction transactions.
   b)A petition is filed by or against the member for attachment, provisional attachment, or provisional disposition; or for commencement of the bankruptcy proceedings, commencement of civil rehabilitation proceedings, commencement of corporate reorganization proceedings, and other reasons.
   c)A note or check issued by the member is dishonored, or the member is suspended from current account transactions with the bank.
   d)The member commits an act to damage the social reputation of the Auction.
   e)The member violates the regulations or the terms and conditions prescribed by the Auction.
   f)Otherwise, if the Auctioneer considers the act as disturbing of auction operation or risk that it could be the act of disturbing.
(2)If any of the above (1) situations applies to you, your member registration information and the reason of deregistration may be publicly announced in accordance with the judgment of the Auctioneer. In this case, you shall not lodge any objection about this.

5. Product’s compensation for visitors

(1)Items presented for the Auction shall be delivered at the place of storage on an as-is basis.
(2)Photos and item’s detail information presented on auction web-site or list of auction items and information from Condition Report describes item’s condition just for reference. The Auctioneer does not warrant the contents of specifications of equipment, condition, model year, operating time and does not assume any liability for any conflict between the description and delivered item.
(3)The Auctioneer measured the amount of radiation in advance with a commercially available Geiger counter and marked the items that contain no less than 0.3μSv of radiation to that effect, but this is a reference value only and the Auctioneer does not warrant the contents, including the value.
(4)Matters associated with the domestic and international trade regulations (e.g. emission control, PL Act, regulations by business association, environmental regulations, import control, car type registration, and so on) shall be dealt with by the winning bidder, which kindly be advised.
(5)The Auctioneer is exerting as much effort as possible in storing of the items bought in the Auction, but does not assume any liability for theft, fire, natural disasters or other material damage, or material damage occurred in result of accidents at the yard or the Auction venue (whether in operation or stillness), including those caused by negligence.
(6)The Auctioneer does not assume any liability for human damage occurred during a visit in result of natural disasters or accidents at the Auction venue.

6. Bidding cancellation

Once bidden, the item shall not be cancelled for any reason. If the price of winning bid, winning bid shall be canceled (refer 10-(2) on cancellation policy).

7. Account deactivation, contract cancellation, complaint

(1)The Auctioneer has right to cancel the contract and authority to cancel a bid anytime, having justifiable grounds.
    For example,
    -troubles appeared of bidding delay or non-delivery due the communication between the Auctioneer and member.
    -troubles appeared due the mistake of entry information of exhibited item.
    -after winning bid item was not transported to ownership for some reason and delivery of item became difficult.
(2)The complaint related to damage detected after winning bid or not prepared condition report will be discussed with consignee, but final decision will be determined by policy of the Auctioneer.

8. Sales contract

(1)Considering Parade Auction the written confirmation shall be signed and the sales contract shall be concluded.
(2)Regarding conclusion of sales contract of auction hosted by the Auctioneer besides Parade Auction. After closing of each auction, notice of the winning bid shall be sent to the Winning Bidder by e-mail to registered e-mail address and Invoice for payment shall be sent by FAX to registered number. At this point, the sales contract shall be concluded.

9. Payment for items

(1)Payment shall be made within 10 business days from the winning bid day.
(2)Before pickup of the item, payment must be completed for all expenses specified in the invoice (i.e. the auction charge and the expenses for demolition and pickup for the certain item that require such works), in addition to the price of the item bought in the Auction.
(3)The payment shall be made only by T/T of cash in Japanese yen. No settlement in currency other than Japanese yen nor non-cash payment, such as by L/C is acceptable. Bank transfer charges and other expenses incurred for the transfer shall be borne by the winning bidder.
(4)Within Japan the consumption tax shall be separately imposed on the winning bidder.

10. Payment delay and cancellation

(1)If the Auctioneer cannot confirm the payment of the auction price after the conclusion of the sales contract and by the due date, the Auctioneer shall have the right to claim against the winning bidder for the late payment charge at 7.3% per annum for the number of delayed days. If, upon expiry of the due date for payment, the Auctioneer determines that the winning bidder has no intention to pay, the Auctioneer may at its discretion treat the contract as cancelled (refer (2) on cancellation policy below).
(2)If, upon expiry of the due date for payment, payment for product is not completed, regardless of reason the Auctioneer has a right to cancel the deal as he sees fit. The Auctioneer shall have the right to claim against the Bidder for all expenses incurred for payment delay, storage fee and resale expenses regarding this deal.
(3)If the item is cancelled due Winning Bidder’s convenience, regardless of reason additionally to (1) delaying payment charge, security deposit 500,000 yen or the amount equal to 20% of auction price, whichever is the higher, shall be paid to the Auctioneer as the penalty.

11. Additional charge

(1)In addition to bid price, the Contract Fee 10,000 yen will be required.
(2)All work charges which may be incurred for the dispatch shall be borne by the winning bidder.
Work charges is recorded in column “Extra Fee” in Condition Report or “Feature” or “SPEC” in Auction list.
(3)Other charge:
Repair cost: one man-day 6,000 yen/hour +materials cost, actual equipment price.

12. Pickup

(1)No pickup shall be done without prior notification or permission. Please notify the Auctioneer of a scheduled pickup during its business hours of the preceding business day.
   *The pickup outside of business hours is impossible principally, but in stalemate situation we can extend the time with requiring of expenses as 3,000 yen/30 minutes.
(2)No vehicle in violation of the laws shall be used for pickup. If the Auctioneer determines that there is a safety problem for loading works, the Auctioneer may reject the pickup.
(3)As a general rule, the item bought in the Auction shall be picked up within 10 business days from the day of concluding sales contract. If the pickup is late, the storage fee shall be requested. The following storage fee shall be paid before the pickup:
For equipment 500 yen/day
For parts 300 yen/day
In case of large-size equipment, large quantity of equipment or parts, additional storage fee shall be requested.
(4)If the pickup is late, the item may be relocated to a place designated by the Auctioneer. Expenses that may be incurred for the relocation (actual cost) shall be borne by the Winning Bidder. This amount shall be paid before the pickup.

13. Governing law and change of authority

(1)The Auctioneer may change these Auction Terms and Conditions without prior notice.
(2)In the event of any doubt in the interpretation hereof or any problem in any matter not prescribed herein, the Auctioneer shall deal with the same in accordance with trade practices in the industry and good faith and shall exert efforts to amicably settle the same by consultation with the relevant member.
(3)These Terms and Conditions is regulated in accordance with the laws of Japan. Tokyo District Court shall have exclusive jurisdiction in the first instance to adjudicate any dispute.

Date created: September 3, 2019