Common use of Proxy Bidding Clause in Contracts

Proxy Bidding. The proxy bidding process allows a Customer (i.e. the proxy bidder) to enter a maximum price that it is willing to pay for a Vehicle (the “Maximum Bid Amount”). If a Customer’s Maximum Bid Amount is greater than the current bid, the Maximum Bid Amount will not be visible to the Seller or other bidders. DealerBlock® will automatically increase the Customer’s proxy bid up to its Maximum Bid Amount by the dollar increment that applies to the particular Vehicle or group of Vehicles. DealerBlock® will never increase the Customer’s bid above the Maximum Bid Amount. If at the end of the auction sale the Maximum Bid Amount meets or exceeds the Reserve Price: i. If there are no other competitive bids above the Reserve Price, the Vehicle will be sold at the Reserve Price to the Customer that placed the Maximum Bid Amount; ii. If more than one bidder submitted the same Maximum Bid Amount for the Vehicle, the Vehicle will be sold to the Customer that entered the Maximum Bid Amount first. A Seller may pre‐configure the auction cycle of a Vehicle prior to release of the Vehicle to have the auction cycle automatically extend beyond the original close time in order to prevent bidding Dealers from “sniping” (i.e., placing a bid immediately before the auction close in order to prevent a competing bid from being placed). In the event of a clerical error in the Reserve Price, Seller may withdraw the Vehicle from the sale and relist it in a new sale.