Auction Rules

Effective Date: November 1, 2023**

Auction Rules

‍Definitions

  • ‍ Absentee Bid - an offer, placed by a Full Bidder during the Pre-Bidding Period, to buy the entire asset up to and including the participant’s maximum Asking Price.  The Auctioneer will bid on the participant’s behalf, starting with the lowest possible price up to and including the participant’s maximum Asking Price, until the participant has either won the Auction or their maximum Asking Price has been exceeded.
  •  Asking Price – a specific dollar amount that the Auctioneer is seeking for the asset being auctioned. The Asking Price will be in standardized increments published on the lot detail page.
  •  Auto Bid – a continuous offer, from a Fractional Bidder, to buy at the Bid Amount(restricted to 70% of the Asking Price at which it was submitted) up to and including the maximum Asking Price for the entire asset. The system bids on the participant’s behalf, starting with the lowest possible Asking Price up to and including the participant’s maximum Asking Price, until the participant has either won the Auction or their maximum Asking Price has been exceeded.
  •  Bid Amount –the dollar value of a bid offered by a participant
  •  Current Bid –the most recently filled Asking Price that will win the Auction if the Now Asking price does not fill and the Reserve Price has been met
  • Fractional Bidder – a participant bidding for less than full(100%) ownership of the asset
  • Full Bidder – a participant bidding for full (100%) ownership of the asset
  •  Jump Bid – a bid placed by a Full Bidder that is higher than the Now Asking price. Jump Bids can only be submitted by telephone or in person by Full Bidders and must be accepted by the Auctioneer. The Jump Bid, if accepted, becomes the new Current Bid and the new Asking Price increases one increment higher than the Jump Bid.
  •  Maximum Bid Amount– the maximum amount a participant can bid
  •  Now Asking –the Asking Price the Auctioneer is trying to fill
  •  One Time Bid -a one-time offer to buy placed at the Now Asking price for the participant’s Bid Amount
  •  Pre-Bid – an Auto Bid placed by a Fractional Bidder or an Absentee Bid placed by a Full Bidder during the Pre-Bidding Period. During the Pre-Bidding Period, Auto Bids are capped at 49% of the low end of the estimated price range set by the Auction House.
  •  Pre-Bidding Period– a designated period (typically 2 days) prior to the beginning of an Auction when participants can place Auto Bids or Absentee Bids
  •  Reserve Price –the minimum acceptable winning bid set by the consigner or seller of the asset prior to the beginning of the Auction. This amount will not be disclosed publicly.
  •  Spending Limit –the maximum a participant can spend which equals the Maximum Bid Amount plus fees
  •  Time Priority –bids are accepted in the order received

General Auction Rules

  • EACH BID YOU PLACE ENTERS YOU INTO A LEGALLY BINDING CONTRACT TOPURCHASE THE ASSET (OR FRACTIONAL INTEREST THEREIN IF APPLICABLE) IF YOUR BID IS ACCEPTED
  • Bid timestamps will be logged when the bid submission is received by the aShareX Auction server
  • The Pre-Bidding Period starts at 11:00 a.m. ET / 8:00 a.m. PT two days prior to the start of the Auction and ends at 12:00 a.m. PT the day of the Auction (unless otherwise specified)
    - Pre-Bidding will not start until the SEC has qualified the Offering Circular
    - If the Offering Circular is not qualified by 8:00a.m. PT the day prior to the Auction, aShareX reserves the right to cancel Pre-Bidding
  • Allocation of the Asking Price is based on Time Priority
  • The Minimum Bid Amount (Fractional Bidders only) will be disclosed on the lot detail page prior to the Auction
  • The Maximum Bid Amount is set for each Asking Price to not allow the participant to exceed their Spending Limit
  • Bidding increments are published on the lot detail page but can be modified during the Auction at the Auctioneer’s discretion
  • A Fair Warning or Last Call message may be displayed at the Auctioneer’s discretion after a period of limited or no bidding activity, signaling the Auction may end soon if no further bids are received
  • The Auction ends when the Now Asking price cannot be filled
  • When the Auction ends, the Current Bid becomes the winning bid unless the Reserve Price has not been met or the asset has been withdrawn from the Auction

Fractional Bidders

Pre-Bidding

• Only Auto Bids are accepted during the Pre-Bidding Period

     - The Bid Amount for Auto Bids during the Pre-Bidding Period will be restricted to 49% of the lower end of the estimate price range

• Pre-Bids may be modified or cancelled via the lot detail page during the Pre-Bidding Period

•  Participants will not see information about other participants’ bids

•  Fractional Pre-Bids are allocated at each Asking Price via Time Priority

Auction

• Fractional Bidders may only bid online

• Fractional Bidders can submit either on a One Time Bid or Auto Bid

     - The Bid Amount is restricted to 70% of the Now Asking price for both One Time Bids and Auto Bids

• Once the Now Asking price fills (either by Fractional Bidders or a Full Bidder) no additional bids are accepted at that Asking Price

• The final Fractional Bid placed at an Asking Price may be prorated to the remaining unfilled dollar amount.  Auction fees will be calculated on the prorated Bid Amount.

     - If an Auto Bid is prorated, the full Bid Amount will be placed in subsequent Asking Prices if there is available capacity

Ex. The current Now Asking Price is $1 million. A Fractional Bidder wants to place an Auto Bid for $10,000 up to an Asking Price of $1.4 million. There is currently $6,000 available in the Now Asking price ($994,000 has already been bid for by Fractional Bidders). The Fractional Bidder’s Bid Amount will be logged for $6,000 at the $1 million Now Asking price and the fees will be calculated based on the accepted $6,000 Bid Amount.  At the next increment of $1.1million, the Fractional Bidder’s Bid Amount will be the requested $10,000assuming there is at least $10,000 available. If there is less than $10,0000 available at the $1.1 million Now Asking price, the Fractional Bidder’s Bid Amount will be prorated to the available amount remaining.  

Modifying a Bid

  • Any bid that is part of the Current Bid may not be modified or cancelled
  • Any bid that is part of the Now Asking price may be increased but not decreased or cancelled
  • The Bid Amount in a One Time Bid in the Now Asking price may only be increased
  • Auto Bids
    • An Auto Bid may be cancelled for Asking Prices greater than the Now Asking price
      • Cancelling an Auto Bid does not cancel any bid sin the Current Bid or the Now Asking price
    • The Bid Amount may only be increased
    • The maximum Asking Price may be increased or decreased (to one increment above the Now Asking price)

100% Bidders

Pre-Auction

  • Only Absentee Bids are accepted during the Pre-Bidding Period
  • Absentee Bids may be modified or cancelled via the lot detail page until the Pre-Bidding Period ends
  • Participants will not see information about other participants’ bids
  • Once the Auction begins, the Auctioneer will submit Absentee Bids on the participant’s behalf with the goal of obtaining the asset at thelowest possible price

Auction

  • Full Bids may be placed online, via telephone or in person
  • Only Full Bidders participating via telephone or in person may place Jump Bids at the Auctioneer’s discretion

Modifying a Bid

  • ‍Full Bids placed during the Auction may not be modified
  • Full Bids placed online may not be cancelled‍
  • In person and telephone bids entered erroneously by the Auctioneer may be cancelled by the Auctioneer
  • Absentee Bids, during the live Auction, may only be modified or cancelled via direct communication with aShareX or the Auction House and at their respective discretions