HCT BID Membership Rules | Inventory Site

Auction Membership Rules

HCT BID Membership Rules: The following rules (hereinafter called "Rules") stipulate the terms and conditions regarding the membership of parade-type auctions, tender-type auctions, and auctions and tender auctions conducted through the Internet (hereinafter collectively called "HCT BID"), carried out or operated by Hitachi Construction Machinery Japan Co., Ltd. (hereinafter called "HCMJ").

1. Application of Rules

(1)These Rules are applicable to both HCMJ and all registered members of HCT BID (hereinafter called "Members").
(2)Other terms and conditions provided by HCT such as Rules of Participation for HCT BID (hereinafter called the “BID Rules”) shall be considered as an addendum to these Rules and shall hold the same distinction and validity as those included herein.
(3)In instances whereby additional terms and conditions stipulated by HCT are in conflict with Rules included herein, such additional terms and conditions shall be applicable and supersede the latter.
(4)HCMJ’s notice under the Article 3 shall be deemed as a part of this Rule.

2.Amendment of Rule

(1) HCMJ may amend and make changes to the Rules and the BID Rules without obtaining the consent of Members. Members shall be notified of any amendments via any means considered appropriate by HCMJ. HCMJ shall not have any obligations or be held liable for damages or losses incurred thereby to Members.
(2) By participating in HCT BID after the amendment of the Rules and the BID Rules, Members shall be deemed to have agreed such amendment, provided, however, that HCMJ shall ask the Members to agree to the amended terms and conditions in the Rules and the BID Rules which HCMJ determined those amendment includes significant effect to the Members from time to time. If a Member does not agree to the amended terms and conditions in the Rules and the BID Rules, the Member agrees to lose the membership qualification of HCT BID.

3. Notice by HCMJ

(1)HCMJ may notify Members of any matter, by posting on HCMJ’s WEB site, sending e-mail or by any other means considered appropriate by HCMJ.
(2)HCMJ’s notice based on this Article 3 (1) shall become effective on posted on HCMJ’s WEB site or on sent out by e-mail to the e-mail address registered by Members, unless otherwise stipulated by HCMJ.

4. Arrangement of Facility: Members shall bear all costs and be responsible for any and all products and services associated to their capacity to access, partake and utilize HCT BID, including but not limited to hardware, software, communication facilities and lines, internet access services, etc.. HCMJ shall not bear any responsibility for such non-usability or non-accessibility and/or any damages or losses incurred due to a Members inability to use or access HCT BID as a result of the aforementioned.

5. Membership Qualifications

HCT BID is available only to individual persons who are registered as a Member and are conducting business in connection with sales of used construction machineries, maintenance or trading, satisfying with the following all qualities: .

(1) having sufficient experience in handling used construction machineries
(2) having general knowledge of trading used construction machineries
(3) conducting export business of used construction machineries

6. Registration

Prospective Members applying as a new registrant shall adhere to the following procedures:

(1)Submit a membership application form, which is designated by HCMJ, by completing the required information.
(2)HCMJ will inform applicants regarding the result of their membership status via e-mail. A registered Member will be provided with a unique registered number and a member’s card allowing them to participate in HCT BID. A User ID and Password will also be provided to access HCMJ’s internet auctions (a unique registered number, a member’s card, a User ID and Password are hereinafter collectively called the “Registered Numbers”).
(3)Applicants, whom are approved to be Members, shall provide an advance deposit of five hundred thousand Japanese Yen (JPY 500,000) to HCMJ. No interest shall accrue with respect to such deposit.

7. Membership

(1) Individuals in accordance with the conditions stipulated in the Article 5, may be registered as a Member, with the provision that consent to the provisions of the Rules contained herein and the BID Rules. Additionally, prospective members must have fulfilled the procedures for application stipulated in Article 6.
(2)Membership remains conditional based on the judgment and approval of HCMJ. HCMJ is not obliged to approve applications mentioned in Article 6 and this Article 7 (1). HCMJ may refuse the application or may cancel its approval after an application has been accepted in the event that:
(a)HCMJ considers the applicant has not properly provided information requested by HCMJ
(b)HCMJ believes that false or misleading contents exist, or may exist in the information submitted by the applicant
(c)The applicant does not consent to unequivocally abide by the Rules or the BID Rules without any conditions
(d)HCMJ suspects that the applicant may directly or indirectly, illegally export a Successfully Bid Exhibit
(e)HCMJ suspects that the applicant is, or may become consistent with Article 13
(f)HCMJ believes that the applicant may breach the Rules or the BID Rules
(g)Registration has been cancelled by the Member or by HCMJ
(h)The applicant has previously been convicted of, or has demonstrated behavior with the likelihood of committing a criminal act, bankruptcy, liquidation, suspension, dishonor of a draft, attachment or auxiliary attachment or other such conduct
(i)HCMJ deems that the application for registration is ineligible for any reason

8. renewal of membership

(1)Membership will expire every year on the 31st of March, regardless of the date the membership was registered
(2)Memberships subject to expire will be examined by HCMJ in relation to HCT BID Membership qualifications
(3)Memberships successful in the appraisal process of this Article 8 (2) will be renewed for one (1) year

9.Notification of Registration Change: Members shall, without delay, inform HCMJ of any change to their address, telephone number or other information registered to HCMJ.

10.Cancellation of Membership

(1)HCMJ may cancel the membership of a Member who has not had business with HCT BID for one year or more without providing any notice
(2)Should any of the following be applicable to a Member, HCMJ retains the right to immediately cancel their membership without any prior notice
(a)If the Member has become consistent with the respective items stipulated in the second sentence of Article7(2)
(b)If the Member has committed any of the acts under Article 15
(c)If the Member has made a false declaration or registration to HCMJ
(d)If the Member has failed to pay fees, etc., or has failed to make such payments on time
(e)If the Member has directly or indirectly illegally exported a Successfully Bid Exhibit
(f)If the Member has or may become consistent with Article 13
(g)If the Member has or is in violation of the Rules
(h)If HCMJ judges the Member to be ineligible for membership for any reason
(3)If membership has been canceled in accordance to this Article 10 (2), such Members concerned shall pay the entire amount of its fees and other payment obligations to HCMJ in relation to HCT BID, incurred up to the date of cancellation, in a lump sum according to the method indicated by HCMJ. HCMJ shall not refund the deposit under the Article 6 (3) and any other fees or monies, which have been already received.

11.Membership Withdrawal

(1)Members are able to withdraw from membership anytime by following prescribed procedures
(2)Any remaining sum of deposit, under the Article 6 (3), and in case of this Article 11 (1) or under the Article 10 of the HCT BID Membership Rules, will be returned.

12.Participation to HCT BID: Should a Member cause damages to another Member or a third party in relation to its participation to HCT BID, or should a dispute arise between the Member and another Member or a third party, these matters shall be resolved by such Members concerned at its own expense and responsibility. HCMJ shall be held harmless and free from any inconvenience, damages, and all liabilities.

13.Elimination of Antisocial groups

(1) HCMJ may refuse an application, may cancel a membership, may refuse a party’s participation to HCT BID, or may cancel a successful bid in the event that:
(a)The applying person or entity is, or was an antisocial group itself or a member of such a group
(b)The legal or actual leader or representative of an entity is, or was an antisocial group itself or a member of such group
(c)The legal or actual leader or representative of the applying entity funds, or has close relationships with antisocial groups
(d)The legal or actual leader or representative of the applying entity is publicly recognized to have committed a violent or threatening crime, or has any relationship with a person or an entity being publicly recognized as having committed a violent or threatening crime
(e)The applying person or entity, by itself or through a third party, declares to HCMJ that it is, or belongs to an antisocial group
(f)The applying person or entity, by itself or through a third party, approaches HCMJ with defrauding, violent, or threatening words
(g)The applying person or entity, by itself or through a third party, harms or may harm HCMJ’s reputation or credit
(h)The applying person or entity, by itself or through a third party, interferes or may interfere with HCMJ’s operations
(2)Should the refusal or cancellation of Membership be based on this Article 13 (1), HCMJ shall not be liable for any damages of such applying person or entity incurred thereby. Conversely, such applying persons or entities shall be liable for HCMJ’s damages arising out of the acts itself

14.Intellectual Property Rights: Members acknowledge and agree that any information provided through HCT BID shall be protected by copyrights, trademark rights, patent rights and other intellectual property rights and laws. Members shall not, without the prior consent of HCMJ, use or make available to any third party such information for any reasons or means.

15.Prohibitions

Members are prohibited from committing the following acts with regards to their participation to HCT BID:

(a)Acts that violates or may violate the intellectual property rights of HCMJ or any third party
(b)Acts that violates or may violate the property or the privacy of HCMJ or any third party
(c)Acts that imposes or may impose damage or a disadvantage to HCMJ or any third party
(d)Acts that uses or makes available HCT BID for any commercial activities without the consent of HCMJ
(e)Acts that interferes with the operation of HCT BID
(f)Acts that harm the reputation of HCT BID
(g)Acts that use the Registered Numbers improperly
(h)Acts that use or provides detrimental programs, such as computer virus’ on or through HCT’s internet auction, internet tender auction or its auction site
(i)Any other acts that violates or may violate the Rules or the Other Rule, applicable laws and regulations
(j)Any other acts that HCMJ considers inappropriate

16.Registered number and Member’s card Management

(1)Members shall be responsible to manage the Registered Numbers after being provided by HCMJ.
(2)Members shall not lease, give, transfer, sell or pledge its ID and Password, registered number and/or Member’s card to a third party, or otherwise allow the use thereof by a third party.
(3)Members shall be responsible for any damages due to improper management of their ID and Password, registered number and/or Member’s card, including but not limited to the improper usage thereof or by a third party. HCMJ shall not be liable for any such damages.
(4)In the event that a Member discovers that its ID and Password, registered number and/or Member’s card have been stolen or used by a third party, such Members shall immediately notify HCMJ and follow any directions provided by HCMJ.
(5)Members are responsible for changing their Passwords periodically. HCMJ shall not be liable for any damages incurred by the failure to fulfill such obligation.

17.Suspension of Service

HCMJ may, without prior notice to Members, suspend HCT BID in the event that:

(a)Natural calamity, riot or other cause of a similar nature occurs or HCMJ believes that it may occur.
(b)HCT BID may not operate due to a “system-down” or malfunction of facilities thereof.
(c)HCMJ considers that a suspension is needed from an operational or technical perspective. In situations as such, HCMJ shall not be liable for any damages incurred by Members.

18.Deletion of Information

(1)HCMJ may, without prior notice, delete any information provided, obtained or used through the HCT BID in the event that:
(a)A Member that provided, obtained or used such information has committed any of the acts under Article 15
(b)HCMJ considers its deletion necessary for the operation or maintenance of HCT BID or for any other reason
(c)HCMJ believes its deletion is necessary
(2)HCMJ shall not be liable for any damages incurred by Members or other third parties, due to the deletion or the non-deletion, of information according to this Article 18 (1).

19.Liability: In the event that a Member is in violation the Rules or the BID Rules, or uses HCT BID improperly, the Member shall be held liable and be obligated to compensate HCMJ for all damages (including attorney fees) incurred.

20.Indemnity: HCMJ shall not be liable for any damages incurred by Members due to delays, changes, suspensions, or the termination of HCT BID.

21.Governing Law: This Agreement shall be governed by and construed in accordance with the laws of Japan.

22.Jurisdiction: Each party irrevocably agrees that the Tokyo district court in Japan shall have exclusive jurisdiction to settle any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with the Contract, these Rules or its subject matter or formation.

23. Personal Information: HCMJ shall handle personal information of Members in accordance with HCMJ’s “Personal Information Protection Policy of HITACHI”.
https://japan.hitachi-kenki.co.jp/privacy/

24.Effective Date: The Rules contained herein shall become effective on April 1st, 2016.

25. Changes to the terms and conditions of the Rules: Certain part of the Rules was changed on June 30, 2020 and shall become effective on July 1, 2020.

Rules of HCT BID is a set of rules that specifies our auction.
Starting from 2021 Spring, we will be adding some rules about the Transaction Fee.
Please read carefully before participating in our auctions.

Rules of Participation for HCT BID: These Rules of Participation for HCT BID (hereinafter referred to as these “Rules”) stipulate the rules with respect to parade, tender, internet and internet tender auctions held by Hitachi Construction Machinery Japan Co., Ltd., (hereinafter referred to as “HCMJ”). The parade, tender and internet auctions held by HCMJ are hereinafter referred to as “HCT BID.”

By registering with HCT BID, the participants agree to comply with the following rules.

1. Qualification: Each participant of HCT BID is required to register for membership with HCMJ and have a registration number assigned in advance.

2. Bidding Schedule: Bidding schedules will be announced to the members of HCT BID by e-mail, fax, postings on HCMJ’s website or other means considered appropriate by HCMJ.

3. General Bidding Procedures of HCT BID

(1) A submission of a bid shall be deemed an offer to HCM for the purchase of auctioned equipment (hereinafter referred to as the “Equipment”).
(2) Under no circumstances may the bidding price be changed after the submission thereof.
(3) The highest bidder (hereinafter referred to as the “Successful Bidder”) is entitled to purchase the Equipment. Upon the Successful Bidder’s winning the auction, the contract for purchase and sale of the awarded Equipment (hereinafter referred to as the “Subject Equipment”) shall be formed between the Successful Bidder and HCMJ (hereinafter referred to as the “Contract”) and the risks associated with the Subject Equipment, including the risk of loss, damage or wear and tear to the Subject Equipment, shall transfer to the Successful Bidder immediately.
(4) In the event the Contract is terminated pursuant to Article 7(4) or Article 10, HCMJ shall not be obligated to award the second highest bidder with a contract to purchase the Subject Equipment, and may dispose of the Subject Equipment to any person or entity at its sole discretion.

4. Bidding Procedures of Tender Auction

(1) The bids for tender auction must be submitted in the amount greater than the reserve price, which HCMJ designates for each unit of the Equipment.
(2) Each participant may submit multiple bids for any Equipment during the tender period designated by HCMJ. In the event a participant submits multiple bids for the same unit, the bid with the highest price shall be considered as such participant’s bid for such unit.
(3) HCMJ shall open the bids after the closing of the tender period and determine the bidder who has submitted the highest bid amongst all valid bids as the successful bidder who is awarded with the Contract (hereinafter referred to as the “Successful Bidder”). Should there be more than one bidder who has submitted the highest bid for the same unit, the Successful Bidder shall be determined by a lottery held by HCMJ.

5. Bidding Procedures of Parade Auction

(1) For parade auctions, the bidders shall bid by raising their auction paddles, which shall be provided at the onsite reception, at the price announced by HCMJ.
(2) HCMJ shall determine the bidder who has raised the auction paddle at the highest price during each auction as the Successful Bidder. Should there be no bidder raising the auction paddle at or above the reserve price assigned to the Equipment, the auction for such Equipment shall be deemed closed and no sale shall take place.

6. Bidding Procedures of Internet and Internet Tender Auctions

(1) For internet and internet tender auctions, the participants shall bid through the internet for the Equipment posted on HCMJ’s auction website.
(2) HCMJ shall determine the participant who has submitted the highest bidding price during the bidding period as the Successful Bidder. Should there be no bidder submitting a price at or exceeding the reserve price assigned to the Equipment, the auction for such Equipment shall be deemed closed and no sale shall take place.
(3) The bidders will receive a list of bidding results by e-mail, which shall serve and be recognized as the notice of award to the Successful Bidders.

7. Sale Price and Payment

(1) For HCT BID, the Equipment auctioned from Japan shall be priced in Japanese yen, excluding both consumption tax and local consumption tax, and the Equipment auctioned from outside Japan shall be priced in a currency designated by HCMJ. Subject to 8(1), the delivery of Subject Equipment shall be as below:
(i) for tender and parade auctions - EXW Exhibition Site (as defined in INCOTERMS 2010, as the same may be amended from time to time (hereinafter referred to as “INCOTERMS”)).
(ii) for internet auctions and internet tender auctions - EXW Place Designated by HCMJ.
(2) HCMJ shall invoice the Successful Bidder for the aggregate amount of the sale price and the associated charges including consumption tax. The Successful Bidder shall pay HCMJ the invoiced amount in full by wire transfer of immediately available funds to a bank account designated by HCMJ within ten (10) business days of HCMJ’s acceptance of bid.
(3) In the event the Successful Bidder fails to make payment within the period stated in Article 7(2), the Successful Bidder shall pay to HCMJ six percent (6%) annum of the unpaid amount as the late payment charge from the eleventh (11th) business days after the date payment becomes due until the date payment is made.
(4) In the event the Successful Bidder fails to make payment pursuant to Article 7(2) within ten (10) business days of HCMJ’s acceptance of the bid, HCMJ may terminate the Contract and dispose of the Subject Equipment to any person or entity at its sole discretion.
(5) The Successful Bidder shall bear all of the costs required for the removal from auction site, transportation and storage of the Subject Equipment. HCMJ shall not be held responsible for any of such costs.
(6) HCMJ shall invoice the Successful Bidder for ten thousand (10,000) Japanese yen as a Transaction fee per LOT, provided that if the Bidder win the units more than twenty (20) LOT, HCMJ shall not invoice the Transaction fee. In addition, the Successful Bidder shall pay the Transaction fee in accordance with Article 7(2).

8. Restriction and modification for the Subject Equipment

(1) To prevent to sell the Subject Equipment in HCT BID which does not comply with the laws and regulations in any country or region other than Japan, in the event that it is obvious for HCMJ that the Subject Equipment does not comply with the laws and regulations in the country or region where will be imported, HCMJ may cancel its acceptance of the bid and terminate the Contract at its sole discretion without any prior notice.
(2) The Successful Bidders acknowledge and agree that HCMJ implements the following measurement in the event that the Subject Equipment is a model which is equipped with satellite communication terminals, mobile communication terminal, general purpose terminal or other communication terminal (hereinafter referred to as “Communication Terminal”) to qualify for Global e-Service provided by Hitachi Construction Machinery Co., Ltd. (hereinafter referred to as “HCM”). HCMJ may dispose the Communication Terminal removed in accordance with this Article.
(i) After removing the Communication Terminal except for mobile communication terminal, HCMJ delivers the Subject Equipment to the Successful Bidder; or
(ii) For the case that the mobile communication terminal installed in the Subject Equipment which does not comply with the laws and regulations in the country or region where the Subject Equipment will be imported, HCMJ removes mobile communication terminal and delivers the Subject Equipment to the Successful Bidder.
(3) The exportation of which from the country where the Subject Equipment remaining mobile communication terminal is located may be (i) subject to special procedures in accordance with applicable laws, including, without limitation, laws of Japan, United States or country of destination, or (ii) prohibited by such applicable law. The Successful Bidders further acknowledge and agree that the Successful Bidders shall bear all of the responsibilities and costs with respect to undertaking of any such procedures, implementation or cancellation of the attempted importation and exportation, and neither HCMJ nor HCM shall be responsible or liable for any such matters. The Successful Bidders shall indemnify and hold HCMJ and HCM harmless from any and all expenses, liabilities, damages and administrative and/or criminal sanctions which HCMJ and/or HCM may incur as a result of the Successful Bidders’ failure to abide by any legal requirements in a timely manner, or their failure to prevent exportation or importation of the Subject Equipment.

9. Delivery of Subject Equipment

(1) Notwithstanding anything to the contrary contained in these Rules, the title to the Subject Equipment shall not pass to the Successful Bidder until and unless the Successful Bidder completes its payment pursuant to Articles 7(2) and (3). Upon such payment, the Successful Bidder may receive delivery of the Subject Equipment.
(2) The Successful Bidder must arrange for and take delivery of the Subject Equipment within one (1) month of the date of HCMJ’s acceptance of the bid.
(3) The Successful Bidder who does not take delivery of the Subject Equipment within the period stipulated in Article 9(2) shall pay HCMJ one thousand Japanese yen (JPY 1,000) per day for the storage of Subject Equipment, which shall become due after three (3) business days from the issue date of HCMJ’s invoice, until the date the Subject Equipment is removed. The late payment charge stipulated in Article 7(3) shall also apply to delays in the payment pursuant to this Article 9(3).
(4) HCMJ shall not be held responsible for any deterioration of the Subject Equipment or any damage or loss to the Subject Equipment incurred due to the cause which is not attribute to HCMJ including, but not limited to the passage of time, weather conditions, acts of God, acts or omissions by any third party.
(5) The Successful Bidder shall provide a prior notice at least three (3) business days to HCMJ in order to receive delivery of the Subject Equipment by submitting a form designated by HCMJ. HCMJ reserves the right to refuse delivery of the Subject Equipment in the event the Successful Bidders fails to submit such prior notice.
(6) HCMJ may charge the Success Bidder for a reasonable delivery handling fee, in addition to the sale price, at its sole and absolute discretion with respect to the Equipment auctioned from outside Japan.

10. Cancellation of Acceptance of Bids

In addition to the remedy provided under Article 7(4) in case of a failure to make timely payment, HCMJ may cancel its acceptance of the bid and terminate the Contract without any prior notice, and charge twenty-five percent (25%) of the sale price as the cancellation fee in the event the Successful Bidder engages in any of the following activities:

(1) Delay of payment;
(2) Any act which violates or may violate the intellectual property right or any other right of HCMJ, other members or third party(s);
(3) Any act which damages or may damage the property or privacy of HCMJ, other bidders or third party(s);
(4) Any act which imposes or may impose damage or disadvantage to HCMJ, other bidders or third party(s);
(5) Any act which fails to comply with or may fail to comply with any of the terms and conditions of these Rules;
(6) Any commercial or for-profit activity or preparation thereof conducted through HCT BID without the prior consent of HCMJ;
(7) Any act which interferes with the operations of HCT BID;
(8) Any act which harms the reputation of HCT BID;
(9) Any act which uses registration numbers or HCT BID Members card in an improper manner;
(10) Any act which uses or provides detrimental programs such as a computer virus through HCT BID;
(11) Cancellation or withdrawal of the membership;
(12) Any other act which violates or may violate applicable laws and regulations; and
(13) Any other act which HCMJ considers inappropriate.

11. Deposits

(1) The deposits which HCMJ receives pursuant to Article 6(3) of HCT BID Membership Rules (hereinafter referred to as the “Membership Rules”) shall be held by HCMJ until the participant who has placed the deposit resigns from or lose his membership qualifications of HCT BID. No interest shall accrue with respect to such deposit.
(2) The Depositors who is responsible to pay compensation to HCMJ pursuant to these Rules and/or the Membership Rules shall have the sum of their deposits applied in whole or in part toward such compensation. The balance of such deposits, if any, shall be returned to the Depositors subject to deduction of applicable charges including bank handling fees.

12. Guarantees and Indemnity

(1) THE SUCCESSFUL BIDDERS ACKNOWLEDGE AND AGREE THAT THEY SHALL PURCHASE EQUIPMENT FROM HCMJ ON AN AS IS BASIS. HCMJ EXPRESSLY DISCLAIMS ANY REPRESENTATIONS AND WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. HCMJ SHALL NOT BE LIABLE TO SUCCESSFUL BIDDERS OR ANY OTHER PARTY FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THE SUBJECT EQUIPMENT. EACH HCT BID PARTICIPANT ACKNOWLEDGES AND AGREES THAT ANY INFORMATION WITH RESPECT TO THE SUBJECT EQUIPMENT, INCLUDING, WITHOUT LIMITATION, HOURS OF USE AND PERFORMANCE CAPABILITIES, MADE AVAILABLE TO SUCH PARTICIPANT SHALL NOT BE DEEMED A REPRESENTATION OR WARRANTY OF HCMJ AS TO THE ACCURACY AND RELIABILITY THEREOF. EACH HCT BID PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT, IF SUCCESSFUL AT HCT BID, IT SHALL PURCHASE THE SUBJECT EQUIPMENT SOLELY ON THE BASIS OF ITS OWN INDEPENDENT VALUATION AND JUDGMENT.
(2) In the event the Subject Equipment has any latent defect, HCMJ shall not be held responsible for such defect and the Successful Bidder may not cancel its purchase based upon any failure or underperformance of the Subject Equipment arising therefrom.
(3) HCMJ shall not be held responsible for any loss or damages incurred by the Successful Bidder arising from or in connection with the Subject Equipment.
(4) HCMJ shall not be responsible for any personal injury, death or property loss which the participants may incur at the auction site.
(5) HCMJ shall in no event be responsible for suspension of service, delayed delivery of information or any other interference to the operations of HCT BID which may arise from an act of God or a man-made disaster.
(6) Without limiting the generality of Articles 11(1) through 11(5), HCMJ shall not be held liable for any loss or damage exceeding 500,000 Japanese Yen in aggregate incurred by each member arising from or in connection with HCT BID.
(7) The member who fails to comply with any of these Rules or participates in HCT BID in an undue or unlawful manner shall indemnify HCMJ for any damages incurred therefrom, including attorneys’ fees.

13. Shipment and Costs

The bidders acknowledge and agree that the costs associated with the transportation from the port specified in Article 7(1), loading, equipment washing and other related activities required for the delivery of Subject Equipment shall not be included in the bidding price. The Successful Bidder shall bear all such costs apart from the purchase price with respect to the Equipment auctioned from Japan. HCMJ shall not be responsible for any arrangement for or adjustment to transportation, loading, washing or other related activities with respect to the Equipment auctioned from outside Japan unless HCMJ advises the Successful Bidder otherwise.

14. Maintenance of Order

(1) HCT BID participants shall observe the instructions of HCMJ with respect to maintenance of order of HCT BID. Any bid rigging, business negotiations or sales and purchases among the participants and intimidation or sabotage against the bidders are strictly prohibited.
(2) In the event HCMJ determines that a participant has failed to comply with Article 14(1), HCMJ may cancel the registrations of such participant and eject such participant from HCT BID at its sole discretion.
(3) The participants who have engaged in any of the activities stipulated in the second sentence of Article 14(1) are excluded from any and all of the bids and auctions and shall promptly leave HCT BID. Any submission of a bid or display of auction paddle by such participants shall be void and invalid.
(4) The bidders who fail to comply with this Article 14 shall indemnify HCMJ for any damages incurred by such breach.

15. Cancellation of HCT BID: HCMJ retains the right to cancel or suspend HCT BID at any time upon the occurrence of natural disaster, incident, telecommunication failure or any other exigent event, or a reasonable possibility of any such event, or upon its discretionary judgment that the circumstances, including, without limitation, weather, noise and other environmental factors and conditions, at the auction site or the surrounding areas are inappropriate for HCT BID. All bids shall be rendered invalid in the event of such cancellation or suspension except with respect to the Equipment which has been awarded to a bidder at the time of the cancellation or suspension. HCMJ shall not be responsible for any loss or damage caused by such cancellation or suspension.

16. Prohibition of Unlawful Resale and Diversion

(1) The Successful Bidders shall not, nor shall they permit any third party to, use the Subject Equipment, including, without limitation, any software and/or software related technology, for purposes which disturb the international peace and security, including, without limitation, (i) the design, development, production, storage or any use of nuclear, chemical or biological weapons or missiles or any other weapons of mass destruction and (ii) other military activities.
(2) The Successful Bidders shall not, nor shall they permit any third party to, sell, assign, export, lease, transfer, license or otherwise make available the Subject Equipment to any third party who has any of the purposes set forth in Article 15(1).
(3) The Successful Bidders shall export, sell, transfer or otherwise dispose of the Subject Equipment in compliance with the applicable laws and regulations, including, without limitation, the Foreign Exchange and Foreign Trade laws of Japan or any other applicable export control laws and regulations promulgated and administered by the governments of the countries asserting jurisdiction over the parties or transactions.
(4) The Successful Bidders agree to indemnify and hold harmless HCMJ against any and all damages, losses, costs or expenses (including attorneys’ fees) which may arise from the Successful Bidders’ failure to comply with this Article 16.

17. Data transmission from the Subject Equipment

(1) With respect to the Subject Equipment with mobile communication terminal, the successful Bidder acknowledges and agrees that operating data, location data of the Subject Equipment, alert information and other information regarding the Subject Equipment (hereinafter referred to as “Equipment Data”) are collected, saved, stored and utilized for the following purposes by HCMJ, HCM, subsidiaries of HCM, and Hitachi, Ltd. (hereinafter referred to as “Hitachi”) and by business partners for sales and after-sales services of Hitachi construction machineries and products (hereinafter referred to as “Business Partners”):
(i) Providing after-sales services for the Subject Equipment by Hitachi or the Business Partners;
(ii) Improving the after-sales services, solution services and other support system for the Successful Bidder and all customers of Hitachi; or
(iii) Implementing the business (research, development, design, engineering, production, sales and/or services, including, without limitation, improvement of the services).
(2) The Successful Bidder agrees that Hitachi utilize and provide the following data for the purpose other than specified in the Article 17(1):
(i) Processed data excludes the Subject Equipment, the Successful Bidder, and/or subsequent purchaser of the Subject Equipment, or
(ii) Processed data not to be identified the Subject Equipment, the Successful Bidder, and/or subsequent purchaser of the Subject Equipment through statistical processing.
(3) The Successful Bidder acknowledge and agrees that Hitachi may disclose the Equipment Data to lawyers, certified public accountants and/or tax accountants who are subject to professional confidentiality obligations, if necessary, or to the extent required by and by an order of any court of competent jurisdiction or any regulatory, judicial, governmental or similar body or any taxation authority of competent jurisdiction without any prior notice to the Successful Bidder.
(4) The Successful Bidder shall properly inform the subsequent purchaser of the terms and conditions in this Article. If the consent of the subsequent purchaser regarding such terms therein is not obtained, the Successful Bidder shall turn off or remove the mobile communication terminal in the Subject Equipment before sales and delivery.

18. Governing Law: These Rules shall be governed and construed in accordance with the laws of Japan. The participants and HCMJ expressly agree that the application for the United Nations Convention on Contract for the International sale of Goods specifically excluded and shall not apply to the Contract and these Rules.

19. Jurisdiction: Each party irrevocably agrees that the Tokyo district court in Japan shall have exclusive jurisdiction to settle any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with the Contract, these Rules or its subject matter or formation.

20. Effective Date: These Rules shall become effective on April 1, 2016.

21. Changes to the terms and conditions of the Rules: Certain part of these Rules was changed on January 15, 2021 and shall become effective on February 1, 2021.