| This Attachment describes the SquareAuction Rules and Regulations. |
| This Attachment is in conjunction with ARTICLE 2 of SquareAuction Terms and Conditions and is an inseparable part of this agreement. |
|
| The SquareAuction auctions are divided into four categories: Bronze, Silver, Gold and Premium. |
|
| Bronze, Silver and Gold Auctions |
| In return for participation in these auctions, the Company charges an Administration Fee per bid placement, table sorting or Autopilot activation (see "Auction rules" and "Auction features" section for further details). |
| Bronze, Silver and Gold auctions differ from one another by Administration Fee and/or product value. |
| Only registered users or paid members of SquareAuction can participate in these auctions. |
| The currency used in all Bronze, Silver and Gold auctions of SquareAuction is called "Squares". All fees on this site will be stated in this currency. |
| See "Auction rules" section for all rules of SquareAuction auctions. |
|
| Premium Auction |
| In return for participation in these auctions, the Company will not charge an Administration Fee per bid placement, table sorting or autopilot activation (see "Auction rules" and "Auction features" section for further details). |
| Premium auctions are open for participation only for paid members of SquareAuction (according to SquareAuction Membership Program). |
| Members are participating in Premium auction by using free Premium Bids they have received according to their Membership program (see SquareAuction Terms and Conditions, Membership section). |
| See "Auction rules" section for all rules of SquareAuction auctions. |
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| Auction Rules |
| All auctions, Bronze, Silver, Gold and Premium, have the same set of rules. |
| SquareAuction auctions are conducted as "blind auctions", which means bids placed by members are not revealed to other members through the Service, until the close of each auction. |
| All prices are in US dollars and cents. |
| At the start of each auction, the maximum bid price and the maximum number of bids to be accepted will be determined. The maximum bid value will be referred to as the "Maximum Price" and will be prominently displayed at the top of each auction's web page. The Maximum Price will be limited to any percent of the average street/retail price of that item stated in the auction but will not exceed it. |
| The number of bids remaining for the auction will be continuously displayed along with the maximum bid price. |
| The winner of the auction is the bidder that was the last to give the most repeated bid. (Not necessarily the last bidder of the auction and not necessarily the highest or the lowest bid amount in the auction). |
| Each auction will be limited by a nominal number of bids to be placed by participants in order to close this auction and define a winner. |
| If at the moment when the nominal number of bids is reached there is more than one leading bid, meaning that more than one bid values repeated exact amount of times, the "Golden Bid" rule is executed. |
| "Golden Bid" rule as follows: The first bid that will create the "most repeated bid value" (one and only) will close the auction and define a winner. |
| YOU cannot place a bid in an auction any higher than the "Maximum Price" for that auction. |
| Each auction is independent of all other auctions and is designated for only one product and will be identified with a unique number referred to as the "Auction ID". |
| If an auction fails to close, SquareAuction reserves the right to cancel the auction (see Article CANCELLATION OF AUCTIONS of SquareAuction Terms and Conditions). |
| Bidding continues on an auction until it either closes or is canceled (see Article CANCELLATION OF AUCTIONS of SquareAuction Terms and Conditions). In order for an auction to close, the maximum number of bids must have been reached AND a winning bid must have been identified. |
| Assuming an auction closes, the winner will be able to purchase the product for the bid amount submitted. |
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| Auction Features |
| All auctions, Bronze, Silver, Gold and Premium, provide user with same set of following features. |
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| Special Sort |
| By default the auction bids status is sorted by "Bid Popularity" column. The "Special Sort" feature gives an opportunity to sort this table by actual bids value, populated in "Bid Amount" column, for an additional fee. |
| This sort won't reveal the bids values that were not revealed to the user before applying it. Each new bid that was added to this auction after initiating the "Special Sort" will not be shown at that table. The fee for this feature will be administered each time YOU use it. |
| Every sort ever performed by user at any time and at any auction will be accessible to user through auction view or through "My account" category. |
| Administration fee will be administered for using "Special Sort" from all users except those users who got a promotion code entered when initiating the feature or membership that fits the auction color (see SquareAuction Membership Program for details). |
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| Autopilot |
| Autopilot is an automatic auction bidding system that can place bids at auction on behalf of the user who initiated it. |
| In order to turn on the autopilot: |
- Go to the "Autopilot Control" panel
- Fill the maximum number of bids it is allowed to place
- Click "Activate"
|
| If the "Available Squares Balance" has insufficient funds to cover the maximum number of bids YOU've specified, the Autopilot will not turn on. In this case YOU will be suggested to deposit more funds into YOUR account or reduce the maximum number of bids. |
| When the Autopilot is turned on, the amount of Squares that can cover the maximum number of bids that YOU've specified is moved from YOUR "Available Squares Balance" into YOUR "Reserved Squares Balance". When autopilot places a bit, the administration fee will be taken by the Company from this balance. If at any time the Autopilot is turned off, than all Squares reserved by this Autopilot will be moved back to YOUR "Available to Squares Balance". |
| The Autopilot can be automatically/manually turned off for the following reasons: |
- Click on "Cancel" button on the "Autopilot Control" panel. (User action)
- Auction is closed.
- Maximum number of bids that autopilot was allowed to place is reached.
- Insufficient funds.
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| Autopilot constrains: |
- Autopilot monitors only the bids that were placed by the user prior to its activation. That means that it can and will place a bid on user's behalf only on those values.
- Autopilot will never place two consecutive bids per user; it means that autopilot will not bid a specific bid value in order to bring the user to the "safer" position. It will only try to place user in the leading/winning position or maintain one.
- Auction has an active status, if auction has closed and autopilot has some bids left all funds reserved for them will automatically be moved to the Available balance upon auction closing.
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| Autopilot rules: |
| Autopilot will place a bid only if a user becomes a leader/winner of the auction after the bid is placed. In all other cases Autopilot will stay inactive. |
| If there is a one leading bid and the user is not an owner of it, Autopilot will place a bid on this value on user's behalf. |
| If at any point Autopilot has to decide between two different leading bids (case where two different bids were repeated exactly the same maximum number of times) where user is the owner of the one of them, autopilot will place a bid on another one. (Expansion style) |
| If at any point Autopilot has to decide between three different leading bids (case where three different bids were repeated exactly the same maximum number of times) where User is the owner of the one of them, Autopilot will chose to bid on the bid with minimal value between the other two. |
| Activation of an autopilot will be charged with administration fee defined for this auction. This charge will be administered from all users except those users who supplied a promotion code at activation or membership that fits the auction color (see "membership" category). |
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| Auction Status Table |
| The auction status table consists of four columns: |
- Bid Amount - shows an actual offered bid value
- Bid Owner - shows the user name of bidder which was last to place the specific Bid Amount
- Bid Time – shows the last time when this Bid Amount was placed
- Bid Popularity - shows the Popularity of specific Bid Amount. The leading (most repeated) bid value will always have a highest "1" Bid Popularity.
|
| In its default state the auction status table is sorted by the Bid Popularity column: |
|
| Bid Amount |
Last Bid (For This Amount) |
Bid
Popularity |
| Bid Owner |
Bid Time |
| $xx.xx |
User2 |
08/11/2006 16:20:48 |
1 |
| $1.11 |
YOU |
07/10/2006 11:25:21 |
2 |
| $xx.xx |
User3 |
08/11/2006 09:19:15 |
3 |
| $3.33 |
User4 |
08/11/2006 15:12:32 |
4 |
| ... |
... |
... |
... |
|
|
| Only the bid value(s) given by YOU will be visible to YOU. |
| The nickname of the bidder that was last to place the specific Bid Value will appear next to it and will be visible to all bidders, but the Bid Value itself will be visible only to those bidders who placed (or will place) a bid on this exact value(s). |
| According to the auction status table YOU are not the leader of this auction, the User2 is the leader. At this point he is the last to place the most repeated bid $x.xx. This bid have the highest Bid Count Popularity (e.g. was repeated the highest number of times) and it's not visible for YOU, because YOU have not offered this Bid Amount before. |
| The $1.11 and $3.33 are visible to YOU because YOU have placed bids on these amounts. |
| YOU were the last to place the $1.11 (YOUR nick next to it) but User3 and User4 were last to bid on $x.xx and $3.33 accordingly. |
| By applying the sort feature, the auction status table will be sorted by Bid Amount column: |
|
| Bid Amount |
Last Bid (For This Amount) |
Bid
Popularity |
| Bid Owner |
Bid Time |
| $1.11 |
YOU |
07/10/2006 11:25:21 |
2 |
| $xx.xx |
User2 |
08/11/2006 16:20:48 |
1 |
| $3.33 |
User4 |
08/11/2006 15:12:32 |
4 |
| $xx.xx |
User3 |
08/11/2006 09:19:15 |
3 |
| ... |
... |
... |
... |
|
|
| Assumed that the value of bid amount leading by User2 is $2.22 and the value of bid amount leading by User3 (default state) is $4.44) |
|
| For paid members the "Bid Popularity" column will be replaced by "Bid Count" column, which indicates the exact number of times the specific bid was submitted. |
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| Promo-codes |
| From time to time, we will award our permanently active registered users and paid members with additional free bids, sorts and autopilot activations. Those users will receive an email which will include a "promo-code". Also this email will state for which auctions and what type of action this promo-code is valid for. Note that promo-code is valid for a specific time period which also will be stated. |
