Asian Arts Gallery

Chapter I General Provisions Article 1 Governing Law This terms and conditions re made in accordance with the Auction Law of the United Stated of America, other relevant laws and the Articles of Association of the Company with reference to international general practices. Article 2 Definitions and Interpretation The terms used in the Conditions shall have the following meanings: (1) 'We/Us/Our/Company'means America National Artwork Auction,INC. (2) 'the Company's address' means 135-14 Northern Blvd, Flushing, NY 11354 and any other registered address which may be changed subsequently. (3) 'the Seller' means a natural person, legal person or any other organization who consigns the Lot to the Company for auction in accordance with the Conditions. Under the Conditions, the Seller shall include any of its agents unless otherwise provided hereunder or in a particular context. (4) 'the Bidder' means a natural person, legal person or any other organization that has full capacity of civil rights to bid at auction according to provisions of the laws of the United Stated of America and who has gone through the necessary registration and procedural formalities of the Company. The Bidder shall satisfy all provisions with respect to conditions of sale or qualification of the Bidder. Under the Conditions, the Bidder shall include any of its agents unless otherwise provided hereunder or in a particular context. (5) 'the Buyer' means the person with the highest bid accepted by the auctioneer. (6) 'Lot' means any item(s) owned by the Seller or disposable according to the laws, and consigned to the Company for auction. (7) 'Auction Date' means the published date on which the auction will formally begin. (8) 'Sale Date' means the date on which the auctioneer confirms the sale of any Lot in the auction by dropping his hammer or in any other public manner. (9) 'Hammer Price' means the amount of the highest bid which shall indicate the conclusion of the auction after being confirmed by the auctioneer dropping the hammer or in any other public manner indicating the completion of a deal. (10) 'Proceeds of Sale' means the net amount owed to the Seller from the Hammer Prices after deducting commission pro rata, taxes and all expenses and other amounts owed to the Company by the Seller. (11) 'Purchase Price' means the total amount payable by Buyer for his/her/its bid, including Hammer Price, commission and other expenses payable by the Buyer. (12) 'Expenses' means charges and expenses including but not limited to expenses with respect to insurance, making catalogue and other public materials, packaging, transportation and storage, and any other expenses pursuant to relevant laws, regulations and provisions hereof. (13) 'Reserve' means the lowest selling price of Lot raised by the Seller and confirmed with the Company in the consignment auction contract. (14)'Reference Price' means the price of the Lot provided in the catalogue or other descriptive materials and estimated prior to the auction. The Reference Price is subject to possible changes and cannot be deemed as the fixed sale price, and no legal binding force. (15)'Storage Fee' means the fee payable by the Buyer or the Seller under the Conditions relating to storage of the Lot, and the current standard of Storage Fee is equal to 0.3' of Reserve (if no Reserve, the agreed insurance amount shall be applied) per day. Article 3 Application Scope The Company organizes auctions pursuant to laws, regulations and policies. The Conditions shall ensure to be binding upon the Seller, the Bidder, the Buyer and any other concerned parties participating in the Company's auction in relation to the artworks, crafts and other cultural relics presented by the auction activities of the Company. Article 4 Special Notice When the auctioneer confirms the highest bid by dropping his hammer or in any other public manner, the Bidder with the highest bid shall be the Buyer of the Lot. The Seller, the Bidder, the Buyer and other concerned parties participating in the auction should read the Conditions carefully and conform to the provisions hereof. All parties shall be liable for their own actions at auction and any loss caused by failure to read the Conditions carefully. Article 5 Exclusion of Liability The Company especially declares that the Company cannot guarantee the genuineness or fakery or the quality of the Lot, and the Company shall not bear the liability for guaranteeing the drawbacks.. The Bidder and/or his/her/its agent shall bear the responsibility of carrying out his/her/its own inspection and investigations as to the nature of the Lot and shall be liable for his/her/its bid. Chapter II Conditions Concerning the Seller Article 6 Consignment Procedures When arranging for consignment, the Seller shall hold a valid identity card or passport or other certificates approved by the competent government of the United States of America in the case of the Seller being a natural person, who must also sign a contract with the Company. A valid certificate of registration, ID of legal representative or other legal authorization document is required in the case of the Seller being a legal entity or other organization, which must also sign a consignment auction contract with the Company. When the Seller consigns the Company for auction, the Company shall be automatically authorized to exhibit, display, make pictures, illustrations, catalogue, or other video images or publicity materials of the Lot. Article 7 The Seller's Agent When arranging for consignment, the Seller's agent shall submit to the Company a relevant authorization letter and the Seller and his/her/its agent's legal identity certificate, and enter into a consignment auction contract with the Company. The Seller and his/her/its agent shall hold a valid identity card or passport or other certificates approved by the competent government of the United States of America in the case of a natural person. A valid certificate of registration, ID of legal representative or other legal authorization documents is required in the case of a legal person or other organization. The Company reserves the right to examine and amend the above arrangement in any manner the Company considers reasonable. Article 8 The Seller's Warranties The Seller hereby makes irrevocable warranties to the Company and the Buyer with respect to the consigned Lot as follows: (1) the Seller has complete ownership and legal right to dispose of the Lot. Without prejudice to any legal interest of any third party, the auction of the Lot shall not violate any relevant laws and regulations; (2) the Seller has, to the best of its knowledge, made full and complete disclosure and description to the Company with respect to the origin and any flaw or defect of the Lot without any concealment and fabrication; and (3) the Seller shall indemnify and hold the Company and/or the Buyer from and against any claims, losses and damages or actions incurred or brought by the actual owner or any third party who claims to be the actual owner of the Lot as well as all expenses and costs incurred in connection therewith, arising out of, or in any way attributable to any breach of the above warranties. Article 9 Reserve All Lots are offered subject to a Reserve, unless otherwise marked or explained by the Company. The Reserve shall be determined by the Seller and the Company in writing and no modification or amendment of the Reserve shall be binding upon the parties unless subject to prior written consent of the other party. In no circumstances, shall the Company accept any liability for failure in sale due to bidding lower than the Reserve at the auction. Article 10 The Company's Discretion before Auction The Company may decide the followings at the Company's absolute discretion: (1) explanation and appraisal of any Lot as produced in the catalogue and/or news media and/or in other ways; (2) adoption of expert's opinion or not; (3) the arrangement of the order, location, and page size of illustration of the Lot in the Catalogue and relevant expenses incurred therefore; specific means of exhibition/display of the Lot and all relevant arrangement and expenses incurred therefore. (4) unless otherwise agreed by the Seller and the Company, the Company shall at its own discretion decide on whether the Lot is appropriate to be auctioned by the Company (i.e. whether to be auctioned finally) , as well as the place of auction, the scene of auction, the date of auction, the conditions of auction and the manner of auction. (5) the Company will announce the condition and procedure to deal with the paddle affixed with number by the Bidder before the Auction Date, including but not limited to require qualifications of the Bidder for the paddle affixed with number, in accordance with different conditions and manners of auction. Article 11 Unauctionable Lot After the Seller has signed the consignment auction contract with and delivered the Lot to the Company, if for any reason the Company believes that the Lot is not suitable for auction, the Seller must collect the Lot within thirty days from the date of the Company's notice being dispatched (fees for the packaging charge and cartage shall be paid by the Seller) , the consignment auction contract between the Seller and the Company will cease on the date the Seller collects the Lot. If during the abovementioned period the Seller fails to collect the Lot, the consignment auction contract will automatically cease. If within seven days after the ceasing of the consignment auction contract, the Seller does not collect the Lot, the Seller shall pay the Company Storage Fee according to the standard set forth in Article 2 (15) of the Conditions from eighth day after the ceasing of the consignment auction contract. If the Seller does not collect the Lot within ninety days after the ceasing of the consignment auction contract, the Company has right to deal with according to Article 30 of the Conditions. Article 12 Suspension of Auction The Company may suspend any auction at any time under any one of the following situations: (1) the Company has the objection to the ownership and authenticity of the Lot; (2) any third party has the objection to the ownership and authenticity of the Lot with undertakings to provide relevant evidence accepted by the Company, make security in writing pursuant to the Company's provisions and take all legal responsibilities for all legal repercussions and losses due to suspension of auction; (3) the Company has the objection to the explanation of the Seller or the accuracy regarding the Seller's warranty provided in Article 8; (4) the Company has any evidence to prove the Seller has already violated or is to violate any term of the Conditions; and any other reasonable causes. Article 13 Withdrawal of Lots by the Seller The Seller may withdraw the Lot at any time prior to the Auction Date subject to a written notice stating the reasons. In the case that the catalogue or any other public materials of the Lot have begun printing upon the Seller's withdrawal, the Seller shall pay an amount equal to 20% of the insurance amount of the Lot and other Expenses in connection therewith. In the case that the catalogue or other public materials has not been printed, the Seller shall pay an amount equal to 10% of the insurance amount and other related Expenses. In case of withdrawal of the Lot, the Seller shall take the Lot back within thirty days after receiving the notice sent by the Company. If the Seller does not collect the Lot within the foregoing time limit, the Seller shall pay the Company Storage Fee according to the standard set forth in Article 2 (15) of the Conditions from eighth day after the ceasing of the contract. If the Seller does not collect the Lot within ninety days after the foregoing time limit, the Company has right to deal with according to Article 30 of the Conditions. No dispute or claim arising out of the Seller's withdrawal of the Lot shall be born by the Company. Article 14 Automatic Insurance Unless otherwise instructed by the Seller in writing, all Lots will be automatically covered under the insurance applied by the Company as soon as the Seller signs the consignment auction contract with the Company and delivers the Lot to the Company. The insurance amount shall be based on the Reserve agreed by the Seller and the Company in the consignment auction contract (if no Reserve, the insurance amount shall be the one agreed by both parties; if the Reserve is adjusted, the insurance amount shall be adjusted Reserve) . The insurance amount is only subject to apply for insurance and claim for compensation after the insurance accident occurrence other than the Company's warranty or security for the value of the Lot, and does not mean that the Seller can be paid such amount equal to the insurance amount by auction held by the Company. Article 15 Insurance Premium Unless otherwise agreed by the Seller and the Company, the Seller shall pay an insurance premium according to the following: (1) In case of unsold of the Lot, the insurance premium payable by the Seller shall be 1% of the Reserve (if no Reserve, the agreed insurance amount shall be applied). (2) In case of sold of the Lot, the insurance premium payable by the Seller shall be 1% of the Hammer Price. Article 16 Insurance Period In case of sold of the Lot, the insurance period shall terminate on the earlier expiry of either thirty days after Sale Date or the date when the Buyer collects the Lot. In case of unsold of the Lot, the insurance period shall terminate upon the expiry of thirty days after the Seller has received the Company's notice to take back the Lot. Article 17 Insurance by the Seller In the event that the Seller notifies the Company not to apply insurance for the Lot in writing, it shall undertake all the risks and the following liabilities (unless otherwise judged by court or arbitration commission) : (1) to indemnify the Company from and against any claims or actions incurred or brought by any third party with respect to the losses or damages of the Lot; (2) to hold the Company and/or any other parties from and against any losses and expenses in relation to the damages and/or losses of the Lot caused by any reason; and (3) to notify the terms of indemnity hereunder to any insurer of the Lot. Article 18 Uninsured The Company will not be liable for the damages or losses of the Lot caused by natural wear, inherent flaws, inherent or potential defects, inherent material changes, self-combustion, self-warming, oxidation, rust, leakage, rat-bite, woodworm, changes in atmospheric (climate, temperature or humidity) conditions, changes in normal water level, or other reasons of natural changes or caused by earthquake, tsunami, war, actions similar to war, hostile actions, armed conflicts, terrorism, rebellion, coup, strike, riots, or nuclear fission, nuclear fusion, nuclear weapon, nuclear material, nuclear radiation, or radioactive pollution. The Company will also not take responsibility for any damages to or any losses of frames, glass, drawer, bottom mat, trestle, mounting, insert pages, roller or other similar accessories caused by any reason. Article 19 Insurance Indemnity Any damages or losses of the Lot caused by incidents or disasters covered by insurance the Company purchased for the Lot shall be handled in accordance with Chinese laws and regulations regarding insurance. The Company shall pay insurance indemnities after deducting all expenses incurred by the Company (except for commissions) to the Seller after the Company obtains such indemnities from the insurance company. Article 20 Non-Bidding The Seller shall not bid for the Lot consigned to the Company by himself/herself/ itself, nor authorize any other person to bid on his/her/its behalf. The Seller shall be liable for and indemnify the Company for any losses and damages caused by violation of this provision. Article 21 Commission and Expenses Unless otherwise agreed upon by the Seller and the Company, the Seller shall authorize the Company to deduct 15% of the Hammer Price as commission and any other Expenses. The Seller agrees that the Company is entitled to the Buyer's commission equal to 15% of the Hammer Price and other Expenses payable by the Buyer in accordance with provisions in Article 46 of the Conditions. Article 22 Service Fee for Unsold Lot In case of unsold of the Lot due to bidding lower than the Reserve, the Seller shall authorize the Company to charge the Seller a service fee for unsuccessful auctioning equal to 3% of the Reserve and other expenses payable by the Seller. Article 23 Payment Proceeds of Sale In the case that the Buyer makes full payment to the Company in accordance with provisions in Article 47 herein, the Company shall pay the Proceeds of Sale to the Seller in RMB currency after thirty-five days from the Sale Date. Article 24 Deferred Payment In the case that the Company do not receive the full payment from the Buyer upon the expiry of the payment period under Article 47 herein, the Company will pay the Sale Proceeds to the Seller within seven working days (meanwhile such payment should be made after thirty-five days of Sale Date as well) after receipt of full payment from the Buyer. Article 25 Cancellation In the event that the Buyer does not make full payment to the Company within ninety days of the Sale Date, the Seller has right to cancel the transaction after giving the Company a notice in writing and receiving prior approval from the Company. A cancellation notice is to be dispatched to the Buyer within seven working days after such decision approving the cancellation as made by the Company. In the event that the Buyer makes full payment and/or finishes collection procedure before the service of the cancellation notice of the Seller to the Company, such notice should be deemed to be terminated automatically, and the transaction is to be carried out in accordance with regulations stipulated in Article 24, under which the Seller should cooperate with the Company and under no circumstance raise objection. In the event that the Seller cancels the transaction, the Seller must collect the Lot within thirty days from the date of the Company's notice being dispatched (fees for the packaging charge and cartage shall be paid by the Seller) . In the event the Lot has not been collected within the above period, the Seller shall pay the Company Storage Fee according to the standard set forth in Article 2 (15) of the Conditions from eighth day after the ceasing of the contract. If the Seller does not collect the Lot within ninety days after the foregoing time limit, the Company has right to deal with according to Article 30 of the Conditions. Article 26 Claim on Behalf of the Seller If the Buyer does not fully pay the Purchase Price, and the Seller requires the Company to claim for the outstanding payment on behalf of the Seller to the Buyer, the Seller shall undertake reasonable expense arising from it (including but not limited to litigation costs and attorney fee) . Article 27 Taxes In the case that the Seller has a duty to pay a tax to the government of the United States of America the auctioneer should withhold and pay the tax to the competent authority in accordance with the relevant laws or administrative regulations of the United States of America and the auctioneer should deliver receipt of tax payment to the Seller after payment of the tax. Article 28 The Company's Discretion The Company may determine the following matters: (1) to agree to special conditions of the payment of the Purchase Price; (2) to remove, store and apply for insurance for sold Lot; (3) to settle claims brought by the Buyer or the Seller in accordance with relevant terms and conditions herein; (4) to take other necessary measures to collect the outstanding payment by the Buyer to the Seller. Article 29 Unsold Lot In the event that the Lot is not sold, the Seller shall take back the Lot within thirty days after receipt of the Company's notice (packing charges and cartage at the Seller's own expense) and pay the Company fees for failed auction and all other expenses. The consignment auction contract between the Seller and the Company will cease on the date of collection of the Lot by the Seller. If during the abovementioned period the Seller fails to collect the Lot, the consignment auction contract will automatically cease. If within seven days after the ceasing of the consignment auction contract, the Seller does not collect the Lot, the Seller shall pay the Company Storage Fee according to the standard set forth in Article 2 (15) of the Conditions from eighth day after the ceasing of the contract. If the Seller does not collect the Lot within ninety days after the ceasing of the consignment auction contract, the Company has right to deal with according to Article 30 of the Conditions. Article 30 Risks and Losses The Seller shall take liability for any risk and/or loss that occurs after the period mentioned above in the case of failed retrieval of the Lot within the designated period. In the event that the Seller shall take back the Lot in accordance with the Conditions as a result of unauctionable Lot, withdrawal by the Seller, unsold Lot, cancellation of transaction by the Seller and other circumstances, and the Seller fails to do so, the Company has right to public auction or sell the Lot by a proper way and conditions. The amount, which is arising from forgoing disposal by the Company after deducting all loss, expense (Storage Fee, insurance premium, cartage and notarization fee) incurred, shall be collected by the Seller with no interests. If the Seller requires the Company to assist in returning the Lot, whatever deferred collection of the Lot or not, the Seller shall be liable for all risks and/or all losses and bear all expenses. Generally, the Company are not responsible for arrangement of transportation insurance unless the Seller specifically instructs the Company to do so and bears the insurance premium. Chapter III Conditions Concerning the Bidder and the Buyer Article 31 Catalogue of Lot At the auction, the Company will prepare a catalogue to introduce the status of the Lot with words and/or pictures for the convenience of Bidders and Sellers. The words, Reference Price, pictures in the catalogue and other images and public materials are only references for Bidders and are subject to revision before auction. The Company provides no guarantee for the authenticity, value, tone, quality or for any flaw or defect of any Lot. Article 32 Uncertainty of Catalogue In case that the tone, color, graduation and shape shown in catalogue and/or any other illustrations, images and public materials differs from those of the original Lot due to print, photograph and other technical reasons, the original shall take precedence. Any statement and appraisal in any way (including but not limited to the certificate, catalogue, status explanation, slide show and news media) of any Lot made by the Company and its employees or its agents are only for reference and should not relied on as any guarantee for the Lot. The Company and its employees or agents shall undertake no liability for any inaccuracy or omission in the statements and appraisals mentioned above. The publications quoted in any explanation of the Lot by the Company and its staff or its agent are only reference for the Buyer. The Company shall not provide the original or copy of such publications and other materials, and reserve the right to modify such quotation in explanation. Article 33 Inspection by Bidders The Company especially declares that the Company cannot guarantee the genuineness or fakery or the quality of the Lot, and the Company shall not bear the liability for guaranteeing the drawbacks. The Bidder and/or his/her/its agents shall inspect and investigate the actual status of the Lot and take liability for his/her/its bidding. The Company strongly advises the Bidders to personally inspect the original Lot on which they intend to bid before the Auction Date by identification or other methods. Bidders shall judge the genuineness or fakery or the quality of the Lot by themselves rather than relying on the Company's catalogue, status explanation and other images and public materials of the Lot. Article 34 Registration of Bidders The Bidder shall register, check-in and receive a paddle affixed with number before the Auction Date, in accordance with the condition and procedure for the paddle affixed with number as announced by the Company, with a valid identity card, or passport or other certificates approved by the United States of America and other materials required by the Company in the case of a natural person, or with a valid certificate of registration, ID of legal representative or other legal authorization certificates and other materials required by the Company in the case of a legal entity or other organization. Article 35 Paddle Affixed With Number The Company will announce the condition and procedure to deal with the paddle affixed with number by the Bidder before the Auction Date, including but not limited to require qualifications of the Bidder for the paddle affixed with number, in accordance with different conditions and manners of auction. The Company seriously notices that the paddle affixed with number is the only evidence of the Bidder's participation in bid. Each Bidder shall take good care of his or her paddle affixed with number and may not lend it to any third person. In case of losing such paddle, the Bidder shall go through the procedure for report of losing in the form of writing agreed by the Company. The person holding the paddle is deemed to be the registered owner of the paddle, whatever he/or she is entrusted by the Bidder or not. The Bidder shall be liable for using his or her paddle bid in the auction process, unless the Bidder goes through the procedure for report of losing in the form of writing agreed by the Company and such paddle affixed number has been cancelled by the auctioneer's announcement in the auction process. Article 36 Guarantee Money The Company will charge a guarantee money before the Bidder receives paddle affixed with number. The amount of guarantee money will be announced before Auction Date. The Company will refund all the guarantee money mentioned above with no interest to the Bidder within five working days after auction in case that the Bidder fails in auction. In the event that the Bidder becomes to be the Buyer, the guarantee money will automatically turn to be deposit as part of the Purchase Price payable by the Buyer. Article 37 The Company's Option The Company may forbid anyone from participating in auction, admission to the premises, taking a picture, making a sound recording or making a video recording during auction, as the case maybe. Article 38 Abnormal Events In case of any abnormal events affecting the success of the auction process, the Company has the right to take necessary actions as the case may be, even terminate the auction process. In the case that any dispute arises at auction, the Company has right to mediate and settle. Article 39 Bidding as Principal Any person who bids shall be deemed as principal, unless the Bidder represents to the Company a written certificate showing that it is the agent of a principal and is also subject to the Company's approval in written form before Auction Date. Article 40 Authorized Bids The Bidder shall attend the auction personally; otherwise it may give the Company an authorization in writing to bid on his/her/its behalf. The Company shall have the right to but no obligation to accept such authorization. The Bidder who intends to give the Company an authorization to bid on his/her/its behalf shall present the Company with a written authorization letter and hand in guarantee money in accordance with the provisions in Article 36 herein within certain period (not later than twenty-four hours before Auction Date). The Bidder who entrusts the Company to bid on his/her/its behalf shall inform the Company of bid cancellation in writing not later than twenty-four hours before Auction Date. In the event that the Bidder entrusts the Company to bid on his/her/its behalf, such biding outcome and relevant liabilities shall be borne on the Bidder. Article 41 Non-liability of Authorized Bids Since authorized bid shall be the free service on transferring the bid message on behalf of the Bidder provided by the Company to the Bidder, the Company and its employees shall not be liable for any failure in bidding or any negligence or fault in the authorized bids. Bidders shall attend the auction in person to assure the success of bidding. Article 42 Principle of Priority In the event that two or more Bidders entrust the Company to bid on their behalf for the same Lot with the same authorized price, and finally succeed by dropping the hammer at such price, the Bidder whose authorization certificate was first delivered to the Company shall be the Buyer of the Lot. Article 43 Auctioneer's Discretion The auctioneer is entitled to represent the Company and to increase or decrease the bidding ladder, refuse any bidding, or restart auction in case of any dispute arising. Article 44 Screen of Video Images At some auctions, there will be a video screen or other screens in operation for the convenience of Bidders, which is only for reference. However, there may be errors in amounts, numbers or pictures of the Lot, or in foreign exchange rate on the screen. The Company shall not be liable for any losses and damages caused by such errors. Article 45 Successful Bid When the highest bidding is confirmed by dropping the auctioneer's hammer or in other public manners, the Bidder with the highest bidding succeeds in the bid which means that the Bidder becomes to be the Buyer and the Buyer shall sign the writing confirmation/auction minutes. Article 46 Remuneration and Expenses The Bidder will be deemed as the Buyer of the Lot after succeeding in bidding and shall pay the Company a remuneration equal to 15% of Hammer Price and other Expenses and acknowledge that the Company is entitled to charge commission and other costs payable by the Seller in accordance with Article 21 hereof. Article 47 Payment The Buyer shall make full payments in a lump sum to the Company within thirty days after the Sale Date and take the Lot back. The Buyer shall also undertake packaging charges, cartage, transportation insurance premium and export appraisal fee (if any). Article 48 Currency All payments shall be made in the currency designated by the Company. Article 49 Passing of Title The Buyer will acquire ownership of the Lot after having paid the full Purchase Price. Article 50 Transfer of Risks After a successful bid, any Lot purchased shall be entirely at the Buyer's risk as early as one of the following conditions is met: (1) the Buyer collects the Lot purchased; or (2) the Buyer pays to the Company full Purchase Price for the Lot; or (3) expiry of thirty days after Sale Date. Article 51 Collection The Buyer shall collect the purchased Lot at the Company's domicile or other place appointed by the Company no later than thirty days after Sale Date. In case of failure to do so, the Buyer shall be solely responsible for all risks and losses of the Lot and bear all expenses for storage, cart and insurance in connection therewith due to delay. Nevertheless the Lot is still preserved by the Company or any other agents, the Company and its employees or its agents shall not be liable for any losses and damages of the Lot caused by any reason. Article 52 Package and Transportation The Company may arrange packing and handling of the purchased Lot on behalf of the Buyer as the case may be on its request and the Buyer shall be liable for any loss arising from such arrangements. In no circumstances shall the Company take any liability for any damages or losses of glass, frames, drawer, bottom mat, trestle, mounting, insert pages, roller or other similar accessories arising out of any reason. In addition, the Company shall undertake no liability for any fault, omissions, damages or losses caused by the packers or carriers recommended by the Company. Article 53 Remedies for Non-payment In the case that the Buyer fails to make full payment within the period provided in Article 47 herein, the Company shall be entitled to exercise one or more of the following remedies: (1) If following a successful bid the Buyer fails to make payment within the stipulated period under the Conditions, the Buyer will lose the right to request the Company to refund the guarantee money (the deposit) and the Company shall keep the guarantee money (the deposit) . Besides which, the Buyer shall also undertake any liability may occur in accordance with the Conditions; In the event that the Buyer fails to pay any one Purchase Price of the Lot on time according to the Conditions after successful bidding on several Lots with the same one paddle affixed with number, all of guarantee money (the deposit) shall not be refunded and the Buyer shall undertaker relevant responsibilities in accordance with the Conditions. (2) If within thirty days after a successful bid the Buyer fails to pay the Company the Purchase Price, the Company shall have the right to entrusting third party to collect all or part of the default payment from the Buyer; (3) charge the Buyer an interest at a rate of 0.3' per day on the due and unpaid amount from thirty-first day after Sale Date until such payment is made fully, to the extent it remains fully unpaid within thirty days after Sale Date, unless otherwise agreed by the Buyer and the Company; (4) commence lawsuit proceedings against the Buyer for any damages caused by the Buyer's breach of contract, including but not limited to the losses of interest on deferred or unpaid payment by the Buyer. (5) exercise a lien on the purchased Lot or other properties of the Buyer which may be in the Company's possession for any reason. The Buyer is responsible for all expenses or risks that occur during the period of lien. In case the Buyer fails to perform all relevant obligations herein within the period the Company designates, the Company shall have the right to dispose of such property in accordance with relevant laws and regulations. In the case the proceeds cannot cover the amount outstanding, the Company is entitled to claim the balance; (6) in the event that the Buyer does not make full payment to the Company within ninety days from the Sale Date, the Company is authorized to cancel or approve the Seller to cancel the sale of the Lot and/or other Lots sold to the same Buyer at this auction or any other auctions as applicable, and reserve the right to claim any losses caused by such cancellation. (7) carry out a re-sale of the Lot by public auction or other ways according to the Conditions subject to the consent of the Seller. The original Buyer shall be liable to the Seller for the remuneration/commission and other Expenses occurred at such auction as well as all Expenses for re-sale by public auctions or other ways. In addition, the original Buyer shall also be liable for the difference, if the Purchase Price actually received by the Seller for re-sale by public auctions or other ways of such Lot is lower than the original Purchase Price that would have been receivable therein had the Buyer made the full payments. Article 54 Remedies for Deferred Collection In case the Buyer fails to collect the purchased Lot within the period provided in Article 47 herein, the Company shall be entitled to exercise one or more of the following remedies: (1) arrange storage of the Lot at the Company or any other places at Buyer's risk and expense(including but not limited to the Storage Fee according to the standard set forth in Article 2 (15) of the Conditions from thirty-first day after the Sale Date) . The Buyer shall not collect the Lot unless the full Purchase Price is paid (packaging charges, cartage, transportation insurance premium and export appraisal fee for which the Buyer is responsible) ; (2) The Seller shall take liability for any risk and/or loss that occurs after the period mentioned above in the case of failed retrieval of the Lot within the designated period. In the event that the Seller shall take back the Lot within ninety days after Sale Date in accordance with the Conditions, the Company has right to public auction or sell the Lot by a proper way and conditions. The amount, which is arising from forgoing disposal by the Company after deducting all loss, expense (packaging charges, cartage, transportation insurance premium and export appraisal fee, Storage Fee, notarization fee) incurred, shall be collected by the Seller with no interests. Chapter IV Miscellaneous Article 55 Copyright The Seller authorizes the Company that the Company shall take photographs, make illustrations, catalogues or other images and public materials relating to the Lot consigned to the Company for auction and shall have the copyright for such photographs, illustrations, catalogue or other images and public materials mentioned above. Article 56 Compensation for Invalidation of Auction In the event that the auction is invalid as the result of related person's reason, such related person shall undertake responsible for compensation to cover all loss of the Company. The standard of compensation shall be the Company's acquirable interest in case of valid auction. Article 57 Notice in Written Both the Bidder and Seller shall notify the Company of their valid and regular means of communication and address in the bid registration documents, consignment auction contract and other form agreed by the Company. No change in any of theparticulars will be effective until it has been notified in writing as soon as possible. All notices referred in this agreement shall be in writing and shall be delivered by post or transmitted by fax. A notice sent by post shall be deemed to have been sent on the date the Company gives it to the post office and received by the addressee via normal mail service. A notice sent by fax, shall be deemed to be received on the date when it is faxed. Article 58 Severability If any provision or part of the Conditions is deemed to be invalid, unlawful or unenforceable by a competent agency, the Conditions shall be ineffective to the extent of such unlawfulness or unenforceability without invalidating or affecting the validity or enforceability of the remaining provisions of the Conditions. Article 59 Settlement of Disputes If any dispute arises from or is related to participation in the auction pursuant to the Conditions, all concerned parties shall submit such dispute to a competent Chinese court of the place where the Company has its domicile. Such dispute shall be governed by America laws. Article 60 Language The Chinese and English version of the Conditions shall be the standard version. Article 61 Copyright of the Conditions The Conditions are made and amended in accordance with America laws and the Company shall have its copyright accordingly. Without the Company's prior written consent, no party shall use the Conditions for commercial purpose in any way or manner and shall not copy, transmit, or store any part herein into a searchable system. Article 62 Singular and Plural In the provisions of the Conditions, the singular includes the plural and vice versa where the context requires. Article 63 Right to alternation The Company reserves the right to make any alternation to the Conditions at its sole discretion at any time the Company considers proper. The altered version is valid and becomes automatically effective on the date it is altered and is to be published in the way the Company considers proper. Any party involved must pay attention to any such alternations of the Conditions and the Company shall under no conditions be liable to any separate notice. Article 64 Formatted Text Unless otherwise agreed by the Company, the consignment auction contract mentioned in Article 6 of the Conditions and the cancellation notice mentioned in Article 25 should be in the forms provided by the Company. Such forms provided by the Company consist of the whole part together with the Conditions. Article 65 Date of Effectiveness The Conditions of Business take effect on January.1st, 2013. Article 67 Right to Interpret America National Artwork Auction, INC. is responsible for interpreting the Conditions.

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