USED EQUIPMENT BIDDING PROCEDURE

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1 PLEASE READ VERY CAREFULLY THESE TERMS AND CONDITIONS BEFORE YOUR BID. YOUR BID PLACED IN KOBELCO TENDER THAT YOU ACCEPT THESE TERMS AND CONDITIONS. ENTRY QUALIFICATOINS The Bidder of KOBELCO Tender is required to register for membership with Kobelco Construction Machinery International Trading Co., Ltd. (Hereinafter referred to as KIT ) on website and accepted Notice of Export Control and this Bidding Procedure. BID RECEPTION Kobelco Construction Machinery International Trading Co., Ltd. Kobe Used Machinery Center 7-15, Minato-Jima, Chuo-Ku Kobe, Hyogo, Japan. TEL : FAX : Dates: 10th (Mon) DEC 11th (Tue) DEC 2018 Time: 9:00h 16:00h BID ON KOBELCO TENDER 1 The bids for KOBELCO Tender must be submitted by Bidding Form with your sign on. 2 The bids for KOBELCO Tender must be submitted in the amount greater than the minimum bidding price, which KIT designates for each unit of the Equipment. 3 In the event the bidder submits multiple bids for the same unit, the bid with the highest price shall be considered to your bid. BID PRICE & PAYMENT 1 The currency used in KOBELCO Tender shall be Japanese Yen ( JPY ) only. JPY 1,000.- (One Thousand Japanese Yen) shall be the minimum bid increment amount. 2 The Bid Price is strictly for 'AS-IS & WHERE-IS' condition. It does not include any Consumption Tax (if applicable) or Freight charges. 3 The successful bidder shall pay KIT the invoiced amount in full by wire transfer of immediately available funds to a bank account within fourteen (14) calendar days. AWARD OF BID KIT shall open the bids after closing of the tender and determine who has submitted highest bid amongst all of valid bids who is awarded. If there is more than one of the highest bid price, then selected by means of a Lucky Draw, conducted at our discretion. Results of the Tender will be sent to all Bidders by or FAX. The schedule as follows: Results of Tender: 12th (Wed) DEC 2018 Page 1 of 5

2 If you do not receive Tender Results by or FAX from KIT, please ask KIT staff who in charge of you. DELIVERY Deliveries will be made upon receipt of the full payment by TTR or L/C at sight. The terms of Delivery shall be as follows: 1 Ex Yard 8% Consumption Tax will be levied The successful bidder shall arrange your own transportation and inform KiT of the collection schedule within fourteen (14) calendar days after the receipt of your payment. 2 FOB Japanese Ocean Port The successful bidder shall be responsible to arrange a suitable vessel from the agreed ocean port at the agreed date and time. Please inform KIT of the shipment schedules fourteen (14) calendar days after the receipt of your payment. 3 CIF Destination Port KIT shall advise sailing schedules to the agreed port of your choice within fourteen (14) calendar days after receipt of the successful bidder payment. In the cases where transportation is required, please confirm with us the transport costs prior to making any payment. Please refer to the attached Transportation cost for FOB charges and Ocean Freight. INCOTERMS 2010 shall be referred and applied for this bidding procedure. SPECIAL WASHING This washing involves extra costs and shall be levied for machines whose destinations call for such treatments as entry criteria. Do confirm with the staff of KIT regarding the additional charges incurred for such services. CANCELLATION In case of cancellation of a winning bid, the successful bidder shall pay: 1 20% of the winning price to KIT as cancellation charges. 2 If fails to pay or to open L/C within fourteen (14) calendar days after winning the Bid, KIT reserves the right to cancel the Award. WARRANTY 1 You acknowledge and agree that you shall purchase equipment from KIT on an as is basis only. And you have to make sure with machine condition and quality by yourself. 2 KIT Expressly disclaims any representations and warranties, expressed or implied. Page 2 of 5

3 3 KIT shall not be responsible for any personal injury, death or property loss which the participants may incur at the auction site. LIST INSTRUCTIONS 1 Priced on the list shall be valid only for this Tender. 2 Please understand that the contents of the list, is subject to change without any notice. COMPLIANCE 1 You shall comply with the laws and regulations of destination countries. 2 It is your responsibility to obtain approvals and/or documentation and/or make modifications as demanded by the destination countries. KIT reserves the right to screen the bidder, and/or any deemed related parties for the intended use of the products against Export Control Laws and Regulations. The outcome of the screening could result in one or more of the following: KIT may extend the delivery date of the awarded machine(s) to the bidder. KIT may limit resale of the awarded machine(s) to the bidder. KIT may cancel the bid either partially or entirely. Prior consent from KIT is required when the bidder resell to countries and/or area designated by Japanese authorities under Export Control of Japan. The online references are appended below. HIGH REACH CRANE This machine, High Reach Crane (Crane specification of the excavator) is designed and manufactured according to the Japanese standards and requirements for use in Japan. When using this machine outside of Japan it is required to confirm that the specification of this machine should comply or be adapted to comply with standards and requirements in a country where this machine is used. Therefore, this machine, High Reach Crane is shipped overseas from Japan after its hook being removed. Please be reminded that the Japanese Industrial Safety and Health Act prohibits from reinstalling the removed hook to the machine. POLICY OF EXPORT TO USA & EU 1 EU : Please be advised that KIT refrain to export used machineries to EU countries which require CE mark due to unable to obtain CE mark, therefore we highly appreciate your comprehension KIT are not able to accept a bid from EU countries. 2 USA : Due to the emission regulation, EPA mark for all of construction machineries is Page 3 of 5

4 essential on import construction "machinery to USA, Furthermore a safety regulation applicable to the excavator is not same as it of Japan." As a policy adopted by the Kobelco Construction Machinery Group, we will not sell used excavators (including mini excavator of less than 6 tons) and Cranes, as it is condition to any part of USA. We highly appreciate your comprehension and cooperation. RADIATION TEST Radiation test for the machines has been made under KIT arrangement and its result are mentioned in case that 0.2 μsv/hr and over. However the result is not guarantee basis. If you require the official report shall be issued by the authorized inspection organization. The expense is to be incurred by your account. Please ask our staff in charge if you need furthermore details. NOTICE of EXPORT CONTROL 1 Objective Upon the Resolution over Decision on Nonproliferation of Weapons of Mass Destruction at the United Nations, the Ministry of Economy, Trade and Industry ("METI") of Japan established national Security Trade Control Programs to prevent proliferation of weapons of mass destruction and excessive stockpiling of conventional weapons. Japan's Security Trade Control Programs also abide by the government's strict principles controlling arms export. Based upon the national programs, Kobelco Construction Machinery Co., Ltd. ( KCM ) established in-house export control rules and the export activities of KIT as a subsidiary of KCM, are regulated according to the rules. 2 Compliance with Export Control Laws and Regulations The person and/or company who purchases and exports KIT &commodities or merchandise is obligated to comply with the Japanese Foreign Exchange and Foreign Trade Law, Export Trade Control Order and all other related laws, regulations or ordinances as well as the U.S. Re-export Regulations and the similar laws and regulations of other countries (if applicable) (hereinafter collectively referred to Export Control Laws and Regulations ). 3 Destination countries and/or areas METI publishes lists showing concerned countries and/or areas under the Security Trade Control Programs. The person and/or company who exports KIT commodities or merchandise to such countries and/or areas may be subject to examination by METI and may be obligated to obtain export license from METI as a condition to entering into export contracts. Page 4 of 5

5 4 End-users and/or buyers The person and/or company purchases KIT commodities or merchandise is obligated to pledge to KIT that the end-users and/or buyers will abide by Export Control Laws and Regulations and will not use them for any activities related to proliferation of mass destruction weapons or any other military purpose. METI and the U.S. Department of State/Department of Commerce issue lists showing persons and/or companies who actually committed activities related to proliferation of mass destruction weapons or whose activities imposed a risk of diverting exported and re-exported items into programs related to weapons of mass destruction. It is our policy to prevent any export of KIT commodity or merchandise destined to such concerned end-users. 5 Use KIT commodities or merchandize shall be used for civil use only. The person and/or company who purchases KIT commodities or merchandize is obligated to pledge to KIT that he or it shall not use them for any of the following purposes: Sale, development, manufacture, use, transport or storage of conventional weapons, weapons of mass destruction including nuclear weapons, chemical weapons, biological weapons, spraying system of these weapons, missiles and unmanned aircrafts for delivery of these weapons, and the related items such as manufacturing facilities; and Other use for which licenses of METI or other foreign authorities are required to export under Export Control Laws and Regulations and out of such use licenses are not issued. I have read and understood the statement of Notice of Export Control above, and comply with the regulations of Japanese government and policy of Kobelco Construction machinery Co., Ltd. Page 5 of 5