TERMS OF BIDDING

AUCTION BIDDING PLAN

BIDDING PLAN	CALCULATION	CURRENCY	SHOW RESULT	BIDDING COLOUR
FOB BIDDING PLAN	Successful Bid Price　 +　Our Commission (1-5%)　+ FOB Expenses	JPY	Yes	Yellow
C&F BIDDING PLAN	Successful Bid Price + Our Commission (1-5%) + C&F Expenses	JPY	Yes	Blue
FIXED BIDDING PLAN	No concern about successful bid price. Price will be fixed as per FOB or C&F Bid.	USD	No	Green

l  FOB Bidding Plan is recommended to those who have sufficient knowledge and experience of Japan and Japanese auto auction system. `Sales Representative` or `Overseas Buyers` who visit in Japan and bid in auction by themselves can choose this plan.

l  C&F Bidding Plan is recommended to those who have no sufficient knowledge and experience of Japan and Japanese auto auction system. `Overseas Buyers` who could not visit in Japan and cannot bid in auction by themselves can choose this plan.

l  Fixed Bidding Plan is recommended to those who have no knowledge and experience of Japan and Japanese auto auction system at all. `Overseas Users` who is going to buy cars from auction at first time and bid their price in total FOB or C&F.

l  C&F Expenses = FOB Expense + Freight. Actual C&F Expense as per destination port will be provided upon request. C&F Expenses will be differed as per vehicle size, destination port and seasons. For example, current C&F Expenses for small size vehicles up to Vladivostok = 100,000 yen.

MEMBERSHIP AND COMMISSION RATE:

MEMBERSHIP TYPE	COMMISSON　CHARGE	MINIMUM DEPOSIT	MINIMUM PURCHASE	CONTRACT PERIOD
PLATINUM	1 %	1,000,000yen	40 Units	5 Months
GOLD	2 %	750,000 yen	30 Units	4 Months
SILVER	3 %	500,000 yen	20 Units	3 Months
BRONZE	4 %	250,000 yen	10 Units	2 Months
STANDARD	5 %	100,000 yen	N/A	1 Months

l  Security deposit will be refunded only after period of contract and fulfill of requirement of purchased units. If anybody wants refund of security deposit before this, we may recalculate our commission as per fulfilled requirement of purchased units and completed contract period.

l  There may require additional security deposit if the security deposit may not cover at least 10% of their total bidding price. If they failed to send additional security deposit before auction, we may cancel further bidding after covered at least 10% of total successful bid price.

l  Membership type cannot be upgraded until or unless complete of contract period and minimum requirement of present membership types. However there will be no restriction of degraded of lower membership types with prior approval.

FOB EXPENSES

EXPENSE	DECREPTION
Auction Commission	10,000 yen to 50,000 yen depending on auction, and type and size of vehicle.
Inland Transportation	Depend on type and size of vehicle. Transportation chart can be provided upon request.
Custom Clearance Fee	5,000 yen to 50,000 yen depending on port of loading, type and size of vehicle.
Radiation Check	1,500 yen per unit
Documentation	5,000 yen per unit
Currier Charge	5,000 yen per unit
Handling Fee	10,000 yen per unit

ADDITIONAL CHARGES AND FEES:

TITLE	DESCRIPTION
Insurance	1% of Total C&F Price
Inspection Prior to bid	2,000 yen per unit
Translation of Auction Sheet	1,000 yen per unit
Translation of Export Certificate	1,000 yen per unit
Certificate of Origin	10,000 yen per unit
Successful Bidding Charge on expected price	5,000 yen per unit
Pre-shipment Inspection	EAA        20,000 yen per unit JEVIC     25,000 yen per unit JAAI        30,000 yen per unit INTERTEK  35,000 yen / unit

DOMESTIC BIDDING CHARGE AND COMMISSION:

SUCCESSFUL  BIDS  PER DAY	OUR COMMISSION	BIDDING CHARGE
1 Unit	5,000 yen per unit	5,000 yen per unit
2 Units	5,000 yen per unit	4,000 yen per unit
3 Units	5,000 yen per unit	3,000 yen per unit
4 Units	5,000 yen per unit	2,000 yen per unit
5 Units or more…	5,000 yen per unit	1,000 yen per unit

BIDDING FORM

Date:

Name of Bidder:                                                                                 Country:                 

Membership Type:                                                                             Bidding Plan:

AUCTION NAME	LOT NUMBER	VEHICLE	YEAR	TIME	EXPECTED PRICE	FINAL PRICE	RESULT

PAYMENT:

l  Payment should be done within 3 working days from the date of purchase and proof of payment should be provided through fax or email within this period.

l  Payment should be confirmed within 6 working days from the date of purchase. We will notify you through any media as soon as we confirmed payment.

l  If the payment could not be confirmed within 6 working days from the date of purchase, we may count penalty from the 7^th day of purchase.

l  We may charge penalty of late payment as follows;

From 7 to 14 days = 1% of total due amount

From 15 to 21 days = 2.5 % of total due amount

From 22 to 30 days = 5% of total due amount

l  If the payment delayed more than 30 days, we will cancel vehicle and send to resale in auction. In this situation we will charge penalty as follows.

Total Penalty: 5% of total due amount + loss of vehicle after resale + all expenses during purchase and resale in auction

l  This penalty will be deducted from security deposit. If penalty does not cover from the security deposit, we may request to clear penalty within 7 working days. If penalty is not cleared within this period, we may declare as black listed.

l  All payment should be done through T/T. We do not accept any cheque or credit cards. We may accept payment through L/C however there will be additional charges as follows:

Bank Charge during L/C clearance:  50,000 yen

Documentation during L/C clearance: 50,000 yen

CANCELLATION OF BIDDING:

l  Bid can be cancelled one hour before the auction start. Cancellation notice should be sent through any communication media like telephone, fax or email. However this cancellation will be effective only after our reply of confirmation.

l  Bid cannot be cancelled after successful bid in auction however we can cancel the vehicle after payment of penalty charges 100,000 yen (or more depending on auction and situation) per vehicle if cancellation done same day before close the auction.

l  No cancellation after close auction.

LIABILITY:

l  We shall not be liable for any consequential loss including without limitation any loss caused by interruption of your business and physical damage to your vehicle through shipping and whether directly or indirectly caused by any breach of contract or by negligence by us or by any servant or agent of ours.

l  All disputes arising out of this agreement shall be subject to the exclusive jurisdiction of the court of Niigata, Japan. This contract is subject to the laws of Japan.

l  If you wish to enter into contracts with third parties such as shipping agents, TQM INTERNATIONAL CO. LTD accepts no liability for any loss, damage or costs as a result of your contract. We are not responsible for late deliveries or any other resulting costs incurred.

For more information and clarification, please contact:

TQM INTERNATIONAL CO. LTD

2344-1, Simami-Cho, Kita-Ku, Niigata 950-3102 Japan

Tel: +81-(0)25-255-2812,  Fax: +81-(0)25-255-2813, Mobile: +81-(0)90-2608-5260

URL #1: www.tqmjapan.com

URL #2: www.tqminternational.net

TITLE	CONTACT PERSON	EMAIL	SKYPE
CEO In Japan	Udaya R. Kandel	tqmjapan_ceo@alto.ocn.ne.jp	udaya1970
Sales Manager	Ganesh Suyal	tqmjapan_sales@plum.ocn.ne.jp	tqmjapan01
Stock Manager	Umesh Sibakot	tqmjapan_stock@theia.ocn.ne.jp	tqmjapan02

These terms of bidding will be effective from 1^st March 2012.

  THANK YOU !