Marchance Autumn Auctions 2016 Day 1

Conditions of Business Part 1 General Section 1 Jurisdiction These Conditions of Business (hereinafter referred to as the "Conditions") are formulated in accordance with the relevant laws, decrees, rules and regulations of the Hong Kong Special Administrative Region of the People’s Republic of China and the provisions of the Auction Articles of Marchance Auctioneers Limited (hereinafter referred to as "Marchance") and in light of international practice. All parties participating in any auctions organized by the Company, including the Seller, the Bidder, the Buyer and all other related parties (including but not limited to the agents of the Seller, the Bidder and the Buyer) shall be deemed to accept in full and be bound by these Conditions of Business, and shall comply with them in such auctions, enjoy the rights and perform the obligations provided herein. Any Bidder who bids in an auction organized by the Company, whether in person or by authorizing an agent to bid on his/her/its behalf, whether by raising the paddle, by absentee bids, by phone or by any other means, shall be deemed to have accepted these Conditions of Business in full. Any dispute among the parties to auctions organized by the Company shall be settled in accordance with these Conditions of Business. Section 2 Declaration 2.1 Unless as otherwise stated, we act as the Seller’s agent. The closing agreement for sale of a Lot shall be a contract between the Seller and the Buyer. These Conditions of Business and all other terms, conditions and notices contained in the catalogue, announced by the Auctioneer from time to time or provided at the saleroom shall constitute the provisions agreed among the Seller, the Buyer and/or the Company as auction agent. 2.2 The Company may amend these Conditions of Business for a particular auction by posting announcements at the auction site or making an announcement at such auction through an Auctioneer. 2.3 Bidders and Buyers participating in any auctions organized by the Company shall carefully read and be abided by these Conditions of Business; Bidders and Buyers shall read the provisions limiting the Company’s liabilities and disclaimers contained in these Conditions of Business carefully. Bidders and/or their agents have the responsibilities to review the original Lot in person, and bear legal liabilities for their acts of bidding the Lot. 2.4 Upon the Auctioneer confirms the Bidder’s bid by striking his/her hammer or in any other manner publicly indicating confirmation of the purchase in any auctions organized by the Company, the contract for sale regarding the Lot shall immediately enter into force and the Bidder shall become the Buyer of the Lot. The Company, the Seller and the Buyer shall acknowledge the sale of the Lot and its closing, enjoy the rights and assume the obligations provided by applicable laws and/or these Conditions of Business. Any party that fails to perform obligations shall bear his/her/its corresponding legal liabilities. 2.5 We, acting as agent of the Seller, shall assume no liability for any breach of contract or violation of these Conditions of Business by the Buyer or the Seller. In case of the breach of contract by the Seller or the Buyer, the Company shall have the right to decide to disclose the other party’s name and address to the Seller or the Buyer at its own discretion so that the aggrieved party may claim for compensation for loss and damages arising from the breach of the other party through legal proceedings or otherwise. However, prior to the Company’s disclosure of such materials to the Seller or the Buyer, the Company shall take the reasonable steps to notify the party whose materials are to be disclosed. 2.6 If any abnormal or unforeseen event occurs at the auction site, the Company has the right to take emergency actions. If any dispute arises at the auction site, the Company has right to mediate and settle it. Section 3 Definitions and Interpretation The terms used in these conditions shall have following meanings: 3.1 "We/Us/Company" means Marchance Auctioneers Limited; 3.2 "Auction Date" means, in an auction held by the Company, the date on which the auctioneer concludes a contract for sale between a Seller and a Buyer by way of hammer striking or any other customary manner publicly confirming the sale; 3.3 “Auctioneer” means any person designated by the Company to moderate a particular auction; 3.4 “Bidder” means any person, company, body corporate or other organization who or which has duly completed the necessary registration formalities with our Company and acquired the right to bid; In these Conditions of Business, a Bidder shall include any of its agents unless as otherwise specified herein or required in a particular context; 3.5 “Buyer” means the Bidder whose bid or offer for a Lot is recognized by an Auctioneer as the highest bid for that Lot in an auction held by the Company, including the principal on behalf of which such Bidder acts; 3.6 “Seller” means any person, company, body corporate or other or organization that consigns (a) Lot(s) within the scope of these Conditions of Business to the Company for auction. In these Conditions of Business, a Seller shall include any of its agents unless as otherwise specified herein or required in a particular context; 3.7 “Lot” means any item consigned by a Seller to the Company for auction and so auctioned in any auction, in particular, any item numbered in any catalogue with certain description; 3.8 “Estimate” means the estimated selling price of a Lot written in the catalogue or other descriptive materials, excluding the Buyer’s Commission; 3.9 “Reserve” means the confidential minimum selling price for the Lot that the Seller has confirmed with the Company; 3.10 “Hammer Price” means the price for a Lot at which the Auctioneer decides to sell the Lot by striking the hammer or the agreed sale price in the post-auction sale; 3.11 “Proceeds of Sale” means the net amount due to the Seller, being the Hammer Price less the Buyer’s Commission, all expenses and other amounts payable to the Company by the Seller; 3.12 “Buyer’s Commission” means any commission that a Buyer shall pay to the Company calculated at the rate specified herein of the Hammer Price for the Lot that such Buyer purchases; 3.13 “Purchase Price” means the total amount payable by the Buyer for his/her/its purchase for each Lot, including the Hammer Price, the Buyer’s Commission, other Buyer’s Expenses and all Buyer’s Expenses arising from his/her/its failure to perform his/her/its obligations; 3.14 “Buyer’s Expenses” means costs and expenses in relation to sale of Lot paid by the Company, including but not limited to insurance policies, packaging, moving, storage, custody for the Lot, any expenses of testing, investigation, queries or authentication related to the Lot at the request of the Buyer or any additional costs and legal expenses to bring claims against a defaulting Buyer; 3.15 “Storage Fee” means the storage fee payable by the Buyer to the Company according to these Conditions of Business. 3.16 In these Conditions of Business, where the context requires, words denoting the singular shall include the plural and vice versa. Part 2 Conditions Applicable to Buyer Section 4 Bidder and Buyer 4.1 Every Bidder shall be deemed to act as principal unless Marchance has, before the date of the auction, acknowledged in writing that the Bidder is acting as agent on behalf of a disclosed principal. 4.2 If the Bidder is a natural person, before making any bid at the auction, he/she shall fill in and sign the registration documents with an identity document with photo issued by the government (such as resident identity card or passport), and provide proof of the current address (e.g. utility bill or bank statement). 4.3 If the Bidder is a company or other organization, before making any bid at the auction, it shall fill in and sign the registration documents and collect a paddle with its valid certificate of incorporation and proof of shareholding and legitimate authorization document. 4.4 The Company may request the Bidder to present the proof of bank details or other proof of financial conditions for payment purposes. 4.5 The Company can announce before the Auction Date the conditions and procedures of arranging paddle for the Bidder according to different auction conditions and auction methods etc., including but not limited to the qualification and conditions for the Bidder to arrange a paddle. 4.6 The Company solemnly reminds that a paddle is the only proof for the Bidder to participate in auction at the venue. The Bidder shall keep it properly. If it is lost, he/she/it shall immediately comply with the loss report formalities in a written form recognized by the Company. All Bidders shall not lend or transfer his/her paddle to any other person(s). Otherwise, he/she shall be liable for the consequences associated with the use of his/her paddle for bidding or any other use. No matter if the person holding a paddle has been appointed by the Bidder or not, his or her bidding acts at auction are considered as having been made by the registered person himself/herself, and the Bidder shall bear the legal liabilities for the acts of the former, unless the Bidder himself/herself has already submitted a written report to the Company regarding the loss paddle. 4.7 Marchance has the right, at our complete and sole discretion, to refuse admission to the premises or participation in any auction by any Bidder and to reject any bid. Section 5 Deposit All Bidders will be required to place an auction deposit before a numbered paddle can be issued. The amount of deposit to be charged will be announced before the date of auction, and the Company has the right to waive the auction deposit. If the Bidder fails to buy the Lot and he/she does not owe the Company any sum, then that auction deposit shall be returned to the Bidder in full without interest within 10 working days after the end of the auction. If the Bidder succeeds in buying (a) Lot(s) at auction, the deposit will be used to offset the invoice value payable by that Bidder (as buyer) and the balance (if any) will be refunded at collection. The deposit will be forfeited if the buyer refuses to pay for the lot(s) purchased within payment period. Section 6 Responsibilities of the Bidder and the Company in respect of the Lot 6.1 In accordance to the matters contained in Section 6.2 to 6.6 of the Conditions of Business and the special exemption contained in Section 7 of the Conditions of Business, the descriptions in the catalogue and in the condition reports are written in a reasonably prudent manner (and such should be in line with those terms of the Conditions of Business regarding the Company serving as Auction Agent) based on (i) the information provided by the Seller to the Company; (ii) academic and technical knowledge (if any); and (iii) generally accepted opinions of the relevant experts. 6.2 The Company’s perception of all Lots partly relies on the information provided by the Seller, the Company is unable and will not carry out comprehensive inspection of all Lots. Bidders are aware of this and bear the responsibilities of inspecting and testing the original Lots so that Bidders will be satisfied with those Lots in which they may be interested. 6.3 All Lots for sale by the Company are available for viewing by Bidders. By bidding, Bidders and/or their agents are deemed to have carried out thorough examination of the Lots, and are deemed to be satisfied with the conditions of the Lots and the accuracy of their description. 6.4 If any part of Lot is damaged due to the viewing/examining process, Marchance has the right to demand for compensation from viewer/examiner equals to 50% of the sum of Lot’s low estimate and high estimate. 6.5 Bidders acknowledge that many lots are of an age and type which means that they are not in perfect condition. All Lots offered for sale in the condition they are in (“as is” condition) and without recourse at the time of the auction (whether or not Bidders attend the auction). Condition reports may be available to assist when lot(s) is/are being inspected before auction. Under certain circumstances, catalogue descriptions and condition reports may on occasions make reference to particular imperfections of a lot, but Bidders should note that lots may have other defects not expressly referred to in the catalogue or condition report. The absence of any reference to the condition of a lot does not imply that the lot is in perfect condition or completely free from wear and tear, imperfections or the effects of aging; nor does a reference to particular defects imply the absence of others. References in the catalogue entry or the condition report to damage or restoration are for guidance only and should be evaluated by personal inspection by the bidder or a knowledgeable representative. 6.6 Regarding the information about the Lot provided to Bidders, including any forecast information (written or verbal), catalogues and other reports, commentaries or estimated values, such information are not statement of facts, but rather are statements of the opinion that the Company holds. Such information can be altered at the sole discretion of the Company from time to time. 6.7 If any purchased lot be stolen, mis-delivered or lost prior to delivery, Marchance shall not be liable for any amount in excess of that paid by the buyer. If the Lot is damaged during the storage period at the Company and such damage is certified causing significant depreciation of the Lot according to generally accepted opinions of relevant experts appointed by Marchance, Marchance shall not be liable for any amount in excess of the lot’s buyer’s premium, and Buyer shall not request for exemption from the legal liabilities of his/her bidding acts. 6.8 The Company or the Seller has not made any declaration or warranty as to whether any Lot is subject to any third party claim for copyright ownership or whether the Buyer has bought the copyright subsisted in any Lot. Section 7 The Company’s Exemption and Restriction of Responsibilities to the Buyer 7.1 We will not provide any warranty as to the authenticity, value, tone, quality and flaw or defect of any of the Lots. The Bidders or their agents shall verify the authenticity and conditions of the Lots, and be responsible for all his/her bids associated with the auction. 7.2 Subject to the matters contained in Section 6 of the Conditions of Business and the rules in Section 7.5 of the Conditions of Business, the Company shall not: (i) be responsible for any errors or omissions in the information provided by the Company to the Bidder verbally or in writing, no matter whether this is caused by negligence or other reasons, with the exception of provision contained in Section 6.1 of the Conditions of Business; (ii) make any guarantee or warranty to the Bidder, excluding any implied warranty and rules other than the expressed warranty that the Seller has entrusted the Company to make to the Buyer (with the exception of those responsibilities that cannot be discharged according to the stipulations of laws); (iii) be accountable to any Bidder for any actions or omissions of the Company regarding the auction or the sale of any Lot (no matter whether this is caused by negligence or other reasons). 7.3 Unless the Company owns the Lot to be sold, it shall not be responsible for any breach of the Conditions of Business by the Seller. 7.4 Without affecting Section 7.1 and 7.2 of these rules, any claim for compensation that the Bidder makes to the Company or the Seller shall be limited to the Hammer Price and the Buyer’s Commission of the Lot. Under no circumstances shall the Company and the Seller bear any consequential or indirect losses incurred by the Buyer. 7.5 Section 7 of the Conditions of Business does not exempt or restrict the liabilities of the Company regarding any misrepresentation with fraudulent element made by the Company or the Seller, nor the responsibilities of casualty or death caused by negligent acts or omissions of the Company or the Seller. Section 8 Catalogue and Lot Descriptions 8.1 The Company shall prepare a catalogue of the Lot to briefly introduce the conditions of the Lot with words and/or pictures to facilitate the Bidder and Seller to participate in the auction held by the Company. The words and Estimate in the catalogue of the Lot, pictures, other images as well as public materials are only references for the Bidder and may be revised before auction. The Company provides no warranty or representation of any kind or nature in respect to merchantability, fitness for purpose, correctness of the catalogue or other description of the physical condition, size, quality, rarity, importance, medium, material, attribution, provenance, period, culture, source, origin, exhibitions, literature, historical significance, authenticity, value, tone or flawlessness of the Lot. 8.2 In case that the tone, color, graduation and shape of the Lot shown in the catalogue and/or any other illustrations, images and public materials differ from those of the original Lot due to printing, photography or other technical reasons, the original Lot shall take precedence. Any introduction and appraisal of any Lot made by the Company and its employees or its agents in any way (including the certificate, catalogue, slide show and news media) are only opinions for reference and do not constitute any guarantee for the Lot. The Company and its employees or its agents shall undertake no liability for any inaccuracy or omission in the aforesaid introduction or appraisal. 8.3 The Bidder and/or his/her/its agents shall have the responsibility to learn about the actual conditions of the Lot and shall be legally liable for his/her/its bid for a certain Lot. We strongly advise the Bidders to personally inspect the original Lot that they intend to bid by identification or other methods before Auction Date. Bidders shall judge whether the descriptions in the catalogue are accurate instead of placing reliance on the accuracy of our catalogue and other images and advertisements of the Lot. Section 9 Absentee Bid, Telephone Bid and Online Bidding 9.1 Prospective Bidders are advised to attend the auction in person. If the Bidder is unable to do so, Marchance may accept the Bidder's written instruction of Absentee Bid or Telephone Bid to bid on their behalf. 9.2 Bidders shall acknowledge and understand that both Absentee Bid and Telephone Bid are free services provided by Marchance, neither Marchance nor its employees shall be liable to the Bidder for any negligence or default or breach of contract in doing so or for failure to do so. 9.3 If a Bidder who has appointed the Company to bid, the auction results and the related legal responsibilities shall be borne by the Bidder. The Bidder shall indemnify the Company from any claims or liabilities as a result of the act of the Company. If the Bidder indicates in the Absentee Bid Order that he/she/it bids by instant communication methods such as telephone, it shall fill in the instant communication method accurately and keep the instant communication instrument properly, during the period in which the Company is appointed to bid, the Bidder shall use that instant communication instrument himself/herself/itself. In the case when the instant communication instrument is lost or it cannot function properly or cannot function at all, the Bidder shall immediately use a written form recognized by the Company to change the instant communication method filled in the Absentee Bid Order. During the period the Company is appointed to bid, it shall make appropriate efforts to contact the Bidder, the bidding information transmitted by that instant communication instrument (whether or not it is transmitted by the Bidder personally or the Bidder’s agent) shall be considered as transmitted by the Bidder himself/herself/itself, and the Bidder shall be liable for the actions taken by he/she/it, unless the Bidder himself/herself/itself has changed the instant communication method filled in the Absentee Bid Order by a written method recognized by the Company. Nevertheless, under no circumstances shall the Company be responsible for any unsuccessful contact or errors or omissions in the bidding process using that instant communication instrument. 9.4 Prospective Bidder shall authorize Marchance to act as his/her agent by submitting the Commission Bid Agreement, duly completed, at least 24 hours before the auction day, and shall pay Marchance a deposit in accordance with the following schedule: - Total bid at HK$50,000.00 or below deposit at 100% - Total bid at HK$50,001.00 - 200,000.00 deposit at HK$50,000.00 - Total bid at HK$200,001.00 or above deposit at 30% The balance shall be paid within 14 days after auction ended. 9.5 If we receive more than one absentee bid with same bid price for a particular lot, and at auction these bids are the highest bids for the lot, it will be sold to the person whose absentee bid we received first. 9.6 Marchance has no obligation to accept the Absentee Bid or Telephone Bid application and Marchance’s decision in this regard shall be final. Prospective bidders shall not assume Marchance’s acceptance of his/her pre-registration application unless he/she has received a written confirmation from Marchance to that effect. 9.7 If prospective bidder would like to cancel the commission, he/she shall notify Marchance in written form no less than 24 hours before the auction day. 9.8 In the case of successful bid, the result of the bid will be sent by SMS or other electronic means or post after the auction. 9.9 Online bidding: Marchance offers online bidding service for bidders who cannot attend the sale. In completing the bidder registration online, it is considered that the bidder understands and agrees that any lots purchased via online live auction service will be subject to an additional 3% commission charge at the rate imposed on the hammer price. Section 10 Images and Screens At some auctions, there will be a video or other screens in operation for the convenience of Bidders, which is intended for reference only. However, there may be errors or omissions in the figures, numbers, images projected, or foreign exchange rates on the screen. We shall not be liable for any losses and damages caused by such errors or omissions. Section 11 Reserves and Estimate 11.1 Unless otherwise indicated, all lots are offered subject to a Reserve, which is the confidential minimum price below which the lot will not be sold. 11.2 Normally, the Reserve is not higher than the lowest Estimate announced before the auction or published before the auction by the Company. 11.3 With respect to lots that are offered without reserve, unless there are already competing bids, the auctioneer, in his/her discretion, will generally open the bidding at 50% of the low pre-sale estimate for the lot. In the absence of a bid at that level, the auctioneer will proceed backwards in his/her discretion until a bid is recognised, and then continue up from that amount. 11.4 Under no circumstances shall the Company bear any liability when the bids for a Lot do not reach the Reserve. If the bids are lower than the Reserve, the Auctioneer, in his or her discretion, may sell the Lot at a price lower than the Reserve. However under such circumstances, the amount that the Company shall pay the Seller shall be the amount that the Seller would receive as if the Lot was sold at the Reserve. 11.5 The Estimate is estimated at an earlier time before the Auction Date, it is not a confirmed selling price, and is not legally binding. Estimates cannot be used as a forecast of the Hammer Price of the Lot, and the Company has the right to revise the already made Estimate from time to time. Section 12 Bid Increments Value Increment Below HK$1,999 HK$100 HK$2,000 - HK$4,999 HK$200, HK$500, HK$800 (i.e. HK$2,200, HK$2,500, HK$2,800, HK$3,000) HK$5,000 - HK$9,999 HK$500 HK$10,000 - HK$19,999 HK$1,000 HK$20,000 - HK$49,999 HK$2,000, HK$5,000, HK$8,000 (i.e. HK$22,000, HK$25,000, HK$28,000, HK$30,000) HK$50,000 - HK$99,999 HK$5,000 HK$100,000 - HK$199,999 HK$10,000 HK$200,000 - HK$499,999 HK$20,000, HK$50,000, HK$80,000 (i.e. HK$220,000, HK$250,000, HK$280,000, HK$300,000) HK$500,000 - HK$999,999 HK$50,000 HK$1,000,000 or above To repeat in the same manner as set forth above Section 13 Auctioneer's Discretion The Auctioneer has the right at his/her absolute and sole discretion in the following matters: 13.1 Refusal or acceptance of any bid; 13.2 Carrying out the auction in such a manner as he/she may decide; 13.3 Withdrawal of any Lot, dividing it for auction separately, combining any two or more Lots for auction; 13.4 If there are errors or disputes, no matter if they occur during or after the auction, he/she shall have the right to decide the successful Bidder, whether or not to continue the auction, to cancel the auction or place the Lot under dispute for auction again; 13.5 The Auctioneer may open and carry out the bidding at a level with bidding increments that he/she considers suitable, and has the right to bid on behalf of the Seller up to the amount of the Reserve, either by placing consecutive bids or by placing bids in response to other Bidders; 13.6 Adoption of other actions that he/she considers as appropriate; 13.7 The striking of hammer represents the acceptance of the highest bid, at which moment the Buyer shall be imposed with all the obligations associated with the successful bid. Section 14 Successful Bid The fact that the Auctioneer confirms the highest bid of a Bidder by striking his/her hammer or in any other manner of publicly confirming the sale shall indicate the conclusion of a sales contract for the Lot between the Bidder and the Seller. Buyer shall bear all the obligations associated with the successful bid, and fully pay and collect lot(s) according to Section 16 and Section 17. Buyer shall not refuse or delay payment, or he/she shall be liable for breach of contract. All payments are non-refundable, any forms of cancellation of the deal shall be treated as breach of contract Section 15 Buyer’s Premium and Expenses The Bidder will be deemed as the Buyer of the Lot after succeeding in bidding and shall pay us the Buyer’s Premium together with any applicable expenses and charges unless with specification. The Buyer’s Premium is equal to 23% of the Hammer Price of each lot up to and including HK$8,000,000; and 15% of the excess of the hammer price above HK$8,000,000. Buyer who fully pays within 14 days after the Sale Date (including the Sale Date) can enjoy Early Payment Discount Buyer’s Premium, which is equal to 20% of the Hammer Price of each lot up to and including HK$8,000,000; and 12% of the excess of the hammer price above HK$8,000,000. For other special collection, the buyer's premium will be announced respectively Section 16 Payments 16.1 After the Lot is successfully sold in an auction, the Buyer shall fully pay the Purchase Price within 14 days after the Sale Date (including the Sale Date), and collect the Lot. Otherwise, the Buyer shall be liable for breach of contract, the Company has the right to adopt measures according to Section 18 without further notice. 16.2 If there is any tax liability imposed on the Buyer arising from the Purchase, the Buyer shall bear it himself/herself/itself according to the provisions of the relevant laws currently in force. 16.3 If packing, moving costs, and insurance expenses, expenses related to export is/are involved, the Buyer shall pay them altogether. 16.4 All payments shall be made in Hong Kong Dollars. If the Buyer make payments in currency other than the designated one, the currency shall be converted at the rate agreed upon by the Buyer and us or at the rate announced by Bank of China (Hong Kong) Limited one business day prior to the payment. We shall charge the Buyer for any conversion costs or bank charges incurred. 16.5 Our company will issue an invoice of property sold under the name and address on the Bidding Paddle Registration Form and the registered name and address should not be changed. 16.6 Our company does not accept payment from a third party other than the Buyer. This applies to the agent as well. If the agent participates in the auction on behalf of others, we only accept payment from the Principal. Other than accepting payment from the Buyer, our company reserves the right to reject payments from other sources. 16.7 Payment Methods (i) By Cash or Cashier Order If payment is made by cash or cashier order, the purchases will be released immediately. However, our company does not accept sums exceeding HK$80,000 (or its equivalent in other currencies) in cash in a single or multiple payments. (ii) By Cheque Payable to "Marchance Auctioneers Limited" Please be reminded that the purchases will not be released until such cheques have been cleared. Traveler’s cheques are not accepted. (iii) By Bank Transfer Please include your name and paddle number or invoice number with your instructions to the bank. Account Name: Marchance Auctioneers Limited Bank: The Hong Kong and Shanghai Banking Corporation SWIFT: HSBCHKHHHKH Account No.: 004-652-209198-001 (iv) By UnionPay or EPS Our company accepts payment by UnionPay. Buyer is required to present UnionPay card in-person to complete transaction. For total transaction value equal or below HK$1,000,000, Marchance bears the additional 2% bank charged administrative fee, the administrative fee of the transaction value exceeding HK$1,000,000 shall be borne by buyer. If refund is necessary, all bank charged administrative fee(s) incurred shall be borne by buyer. Section 17 Collecting, Packing, Shipping and Exporting of Lots 17.1 The Buyer shall collect the purchased lot no later than 14 days after the Sale Date (including the Sale Date). Otherwise, whether or not payments have been made, the Company has the right to adopt one or more measures below: (i) We shall be permitted to remove the property to a third party warehouse. All costs (including but not limited to the storage fee calculated and charged according to the provisions of the Bidder Registration Order starting from the 31st day from the Sale Date (including the Sale Date) and/or risks for the taking out of an insurance policy and/or storing the Lot in the Company or other places shall be borne by the Buyer. Only after the Buyer has paid the full amount of the Purchase Price, he/she/it can collect the Lot (packing and moving costs, insurance expenses, expenses related to export shall be at the Buyer’s expense); (ii) If the Buyer has not yet collected the Lot within 30 days from the Sale Date (including the Sale Date), after notifying the Buyer, the Company has the right to sell that Lot in a public auction or by a method and with methods and conditions that it considers suitable. Any proceeds after the deduction of all the losses, expenses (packing & moving costs, insurance costs, expenses related to export, Storage Fee, and notarial expenses etc.) incurred by the Company from the disposal shall be collected by the Buyer; such balance is non-interest-bearing. If the Buyer fails to collect the proceeds back two years after the Sale Date, the balance shall be deposited to a Hong Kong court by the Company after deducting the relevant expenses (including legal fees). 17.2 Where Properties are not collected within 30 calendar days (including the day of sale) from the day of sale, the Buyer must pay the monthly storage fee of HK$800 per lot starting from the 31st day. For storage of less than one month, one whole month's storage fee will be charged. All other additional expenses such as insurance, packing & transport costs will be charged separately. 17.3 The Buyer shall bear all the risks and expenses incurred after the deadline as stated in the Conditions of Business if he/she/it cannot collect the Lot concerned within that deadline. Even though the lot is still under our or any of our agent's custody, neither we nor our agents shall be liable for any losses or damages incurred regardless of the reasons. 17.4 We may arrange packing and handling of the purchased Lot on behalf of the Buyer upon his/her/its request. This is considered as a service provided by the Company to the Buyer and the Company has the sole and absolute discretion to decide whether to provide this service, if any losses arise there from, the Buyer shall be personally liable for such losses. Packing and handling fee is charged as follow: Purchase value Packing and handling fee Up to and including HK$1,000 HK$100 Between HK$1,001 and HK$1,000,000 HK$300 Above HK$1,000,000 HK$500 17.5 Where the Buyer requests the Company to assist in collecting the purchased Lot (the packaging, mailing and transportation expenses shall be paid by the Buyer) by means of post, express delivery or transportation, the Company shall be deemed to have delivered the Lot and the Buyer shall be deemed to have collected such Lot according to the normal procedure upon the Company’s delivery of the Lot to the post, express delivery and transportation entities, companies or their employees/branch offices. The risks arising from this process shall be borne by the Buyer. Unless as Buyer gives a clear indication and pays insurance premium, no insurance is provided in the process of mailing, express delivery or transportation generally. The Company shall assume no liability for any error, omission, damage or destruction caused by the packaging company and post, express delivery and transportation entities or companies designated by the Buyer or recommended by the Company to the Buyer. 17.6 Under no circumstances shall the Company be responsible for any damage of the glass or picture frame, box, backing sheet, frame case, mounting, inserts, rolling rod or similar auxiliary objects caused by any reasons. 17.7 For items made of botanic or animal materials (coral, crocodile, ivory, whale bone, tortoise, rhinoceros horn and Brazilian Rosewood, etc.) or containing botanic or animal materials, regardless of their year or value, may require application for permits or certificates before exporting outside Hong Kong, and other application for permits or certificates may be required when importing into countries outside Hong Kong. Bidders shall pay attention that the ability to obtain export permits or certificates does not ensure that import permits or certificates can be obtained in another country, and vice versa. For example, importing ivory of less than 100 years is illegal in the USA. Bidders should enquire about the import regulations on products made of or containing botanic or animal materials of the governments concerned before participating in an auction. The Buyer shall be responsible for obtaining any import and export licenses, permit for endangered animals or other aspects related to the Lot. Failure or delay in obtaining any permits required shall not be deemed as a reason for cancelling the purchase or delaying in paying the Purchase Price. The Company shall not bear any responsibilities for the failure to properly fill in or submit the required import or export documents. If the Buyer requests the Company to apply for the import and export licenses on his/her/its behalf, the Company has the right to charge service fees for this service. However, the Company does not warrant that the import or export license will be issued. The Company and the Seller has not made any declaration or warranty in respect of whether or not any Lot is subject to import and export restrictions or any embargo. Section 18 Remedies for non-payment If the Buyer fails to make full payment according to the provisions of the Conditions of Business or any payment arrangements agreed with the Company, the Company has the right to adopt one or more of the following remedies: 18.1 After the Lot is sold, if the Buyer fails to pay the Purchase Price within 14 days from the Sale Date (including the Sale Date), the auction deposit paid at the time of bidding registration shall be forfeited, and it shall at the same time assume the liabilities according to the provisions of the Conditions of Business; if the Buyer has bought a few Lots with the same paddle, after the Lots are sold, if the Buyer has not paid the Purchase Price of any of the Lots within the time stipulated, then the entire auction deposit shall not be refunded, and it shall at the same time assume the relevant liabilities according to the provisions of the Conditions of Business; 18.2 If the Buyer fails to pay the Purchase Prices in full to the Company within 14 days from the Sale Date (including the Sale Date), the Company has the right to appoint a third party organization to collect the entire or part of the Purchase Prices that the Buyer owes and the Buyer shall also pay the Company all the costs of such collection; 18.3 If the Buyer fails to pay the Purchase Price in full within 14 days from the Sale Date (including the Sale Date), the Company has the right to charge interest at 0.03% per day on the unpaid portion starting from the 15th day after the Sale Date until the day on which the Buyer has fully paid the monies, with the exception that the Buyer has otherwise agreed with the Company; 18.4 The Buyer shall bear the risks and expenses of taking out an insurance policy, moving and storing the Lot in the Company or other places; 18.5 To commence legal proceedings against the Buyer and demand for compensation for all the losses due to the breach of contract by the Buyer including the interest loss caused by the delay in payment or refusal to make payments by the Buyer; 18.6 To retain that or any other Lot that the same Buyer has bought via the Company, and any other properties or rights to property of the Buyer that the Company holds for any reasons, all the expenses and/or risks incurred during the retention period shall be borne by the Buyer. If the Buyer fails to perform all his/her/its duties concerned within the period specified by the Company, the Company has the right to issue a lien notice to the Buyer and dispose of the items under lien if the Buyer has not yet fully paid all outstanding amounts within 30 days after the issue of that notice. If the items under lien are insufficient to offset all the monies payable by the Buyer to the Company, the Company has the right to claim them; 18.7 The Company has the sole discretion to cancel the sale or agree that the Consignor can cancel the deal, and reserve the right to claim all the losses suffered by the Company due to the cancellation of that deal; 18.8 The Company can place the Lot for auction again or sell it by other means according to the provisions of the Conditions of Business with the consent of the Seller, and the Company reserves the right to decide the Estimate and Reserve. The original Buyer shall pay the commission and other Buyer’s Expenses and the Seller in the first auction, and he/she/it shall bear all the costs of the second auction or the sale of the Lot by other means. If the price obtained from the second auction or the sale of the Lot by other means is lower than the original auction sum, the original Buyer shall pay the shortfall; 18.9 To offset any monies related to the Lot that the Buyer owes the Company by any sums that the Company owes the Buyer in any other transactions; 18.10 The Company can decide to use any monies paid by the Buyer to repay any sums that the Buyer owes the Company in any other transactions; 18.11 To reject any bids made by the Buyer or his/her/its agent in future auctions, or to obtain auction deposit before accepting any bids; 18.12 To disclose the information of the Buyer to the Seller, so that the Seller can commence legal proceedings to recover the outstanding amount, or claim damages and claim legal fees for the breach of contract by the Buyer. Section 19 Transfer of Ownership The Buyer shall only acquire ownership of the Lot after the payment of the Purchase Price in full. Even if the Company has delivered the Lot to the Buyer, the Buyer has not yet obtained the ownership of the Lot. This shall pass onto the Buyer only when the Buyer has fully paid the Purchase Price and all monies that the Buyer owes the Company. Section 20 Transfer of Risks After a successful bid, any Lot purchased shall be entirely at Buyer's risk as soon as one of the following occurs: (i) The Buyer collects the Lot purchased; (ii) The Buyer pays us full Purchase Price for the Lot; (iii) The expiry of 14 days after the Sale Date (including the Sale Date). Part 3 Conditions Applicable to Seller Section 21 Consignment Procedures 21.1 When arranging the consignment of the Seller’s Lot to the Company for auction: (i) The Seller must present a valid identity document with photo issued by the government (e.g. resident identity card or passport) if the Seller is a natural person, and sign a consignment auction contract with the Company; (ii) A valid certificate of incorporation, proof of shareholding, or a legal authorization document shall be required if the Seller is a legal entity or any other organization, which shall sign a consignment auction contract with the Company; 21.2 When arranging the consignment of the Lot to the Company for auction, the Seller’s agent shall submit to the Company the relevant authorization certificates including: (i) A valid identity document if such agent is a natural person; (ii) A valid certificate of incorporation and proof of shareholding if such agent is a legal person or any other organization; and (iii) A valid power of attorney duly executed. The Company has the right to examine the aforesaid documents in a lawful manner. 21.3 When the Seller or Seller’s agent signs a consignment auction contract with the Company, the Company shall be automatically authorized to make pictures, illustrations, catalogues, or other video images of the Lot without the necessity to pay any charges. Section 22 The Seller’s Warranties The Seller hereby makes irrevocable warranties to the Company and the Buyer with respect to the Lot he/she/it consigns to the Company for auction as follows: (i) The Seller has absolute ownership or legal right to dispose or sell the Lot. The auction of the Lot will not infringe any legal interest or right (including copyright interest) of any third party, and will not violate the provisions of relevant laws and regulations; (ii) The Seller has, to the best of his/her/its knowledge, made full and complete disclosure and description to the Company with respect to the origin and any flaw of the Lot and notified the Company in writing, without any concealment or fabrication; (iii) If the Lot being consigned shall be imported into Hong Kong, the Seller shall guarantee the compliance with the laws of its origin, and ensure the completion of the export and import procedures and notify the Company in writing; and (iv) If the violation of the above warranties causes the actual owner of the Lot or any third party who claims to have right to bring any claim or action and causes the Company and/or the Buyer to suffer losses and damages, the Seller shall compensate for all losses and damages suffered by the Company and/or the Buyer as well as all expenses and costs incurred as a result. Section 23 Insurance 23.1 Unless as otherwise instructed by the Seller in writing, all Lots will be automatically covered under the insurance policies purchased by the Company after the Seller enters into the consignment auction contract with the Company and delivers the Lots to the Company. The insured amount shall be based on the Reserve agreed by the Seller and the Company in the consignment auction contract (if there is no Reserve, it shall be the agreed insured amount of the Lot; if the Reserve is adjusted, it shall be the original Reserve of the Lot). The insured amount is only applicable to insurance and claim for compensation, it is not the Company’s warranty or guarantee for the value of the Lot, and does not mean that the Lot can be sold for an amount equal to the insured amount through any auction by the Company. 23.2 If the Lot is sold in the auction, the insurance period shall terminate at the earlier of the expiry of the 7th day after the Sale Date (including the Sale Date) and the date when the Buyer collects the Lot. If the Lot is not sold in the auction, the insurance period shall terminate upon the expiry of thirty days after the Company issues the notice on the collection of the Lot. 23.3 If the Lot is sold, the insurance premium payable by the Seller shall be 1% of the Hammer Price unless as otherwise agreed by the Seller and the Company. If the Lot is not sold, the Seller shall as well pay the insurance premium at 1% of the Reserve. 23.4 In the event that the Seller notifies the Company in writing not to insure the Lot, he/she/it shall undertake all the risks and the following liabilities at any time (unless as otherwise ruled by an arbitration institution): (i) To compensate for any claim or action brought by any other parties against the Company with respect to the damage or destruction of the Lot; (ii) To compensate the Company and/or any other parties for all losses suffered and all expenses incurred because of the damage or destruction of the Lot caused by any reason; and (iii) To notify the compensation related provisions herein to any insurer of the Lot. 23.5 Any damage or destruction of the Lot caused by incidents or disasters covered by the insurance purchased by the Company for the Lot shall be handled in accordance with the policies and regulations of the insurance company concerned. The Company shall pay insurance indemnities after deducting the Company’s expenses (other than the Commission) to the Seller after the Company obtains such indemnities from the insurance company. 23.6 During the period in which we assume the risks of the Lot, we shall be liable for any loss thereupon for up to 100% of the Reserve only. 23.7 The damage or destruction of the Lot caused by natural wear, inherent flaws, internal or potential defects, change of substance itself, self-combustion, self-heating, oxidation, corrosion, leakage, rat-bite, worm-bite, change in the atmosphere (climate or air temperature), change in humidity or temperature, or other gradual changes or caused by force majeure such as earthquake, tsunami, war, hostile action, armed conflict, terrorism, coup, strike and social riot, or nuclear radiation or radioactive pollution as well as the damage or destruction of book frames, glass, drawers, bottom pads, trestles, mountings, insert pages, scroll heads or other similar accessories caused by any reason are not within the scope of insurance indemnity. Section 24 Commission and Expenses 24.1 Unless as otherwise agreed upon by the Seller and the Company, the Seller shall authorize the Company to deduct 10% of the Hammer Price as Commission, 1% of the Hammer Price as Insurance Fee, HK$1,200 per page as Catalogue Fee and at the same time deduct other expenses. 24.2 Despite the fact that the Company is the Seller’s agent, the Seller agrees that the Company may collect the Commission and other expenses from the Buyer in accordance with provisions in Section 15 hereof. 24.3 If the Lot fails to sell, the insurance premium payable by the Seller shall be equivalent to 1% of the Reserve. Section 25 Sale Arrangements 25.1 Unless as otherwise agreed upon by the Company and the Seller, all Lots are offered subject to a Reserve. The Reserve shall be determined by the Seller and the Company in writing through consultation, and no modification of the Reserve shall be made without the prior consent of the other party after it is determined by both parties. 25.2 The Company shall be entitled to sell the Lot below the Reserve. If we do so, we shall pay the Seller the difference between the Hammer Price and the Reserve. In such cases, the Seller's obligations to us with respect to such a Lot are the same as if it had been sold at auction. 25.3 If any Lot is bought in or otherwise unsold by auction, we are authorized as the exclusive agent for the Seller for a period of up to 30 days following the Auction Date to sell such Lot privately at a price which will give the Seller a net proceed (i.e. after deduction of all charges due from the Seller) at least equivalent to what the Seller would have been entitled had the Lot been sold at the Reserve. Or, subject to Seller's consent, we can sell the Lot at a lesser amount. In such cases, the Seller's obligations to us with respect to such a Lot are the same as if it had been sold at auction. 25.4 The Seller shall not bid for the Lot consigned to the Company by himself/herself/itself for auction, or authorize any other person to bid on his/her/its behalf. Only the Company has the right to bid on behalf of the Seller at a price not more than the Reserve. The Seller shall bear all legal liabilities and compensate for all losses caused to the Company if the Seller violates this Article. 25.5 Any estimate given, orally or in writing, is a matter of opinion only and is not an assurance of the price the Lot will eventually be sold. 25.6 In no circumstance shall the Company bear any liability for failure to sell the Lot at the Reserve at the auction held by the Company. 25.7 The Company may decide the following matters at its absolute and sole discretion: (i) Explanation and/or appraisal of any aspect of any Lot through the catalogue of the Lot and/or news media and/or other carriers; (ii) The illustration of the Lot in the catalogue, the exhibition of the Lot and other forms of publicizing the Lot, the arrangement in the promotional activities as well as the standards of payable expenses; (iii) Whether to consult any expert or not; (iv) Suitability of a Lot for auction by the Company; (v) The combination or division of Lots for sale; (vi) Whom should or should not be admitted to the auction, which bids should be accepted; (vii) The date of auction, the place of auction, the conditions of auction and the manner of auction; (viii) To agree on special conditions of the payment of the Purchase Price; (ix) To remove, store and insure the sold Lot; (x) To settle claims brought by the Buyer or the Seller in accordance with the relevant articles hereof; (xi) To take other necessary measures to collect the outstanding payment owed by the Buyer to the Seller. Section 26 Withdrawal and Suspension 26.1 The Seller may withdraw the Lot at any time prior to the Auction Date by issuing a written notice to the Company. In the case that the Lot has been listed in the catalogue or other public materials and they have begun to be printed at the time of the withdrawal of the Lot, the Seller shall pay an amount equal to 20% of the Reserve of the Lot and all other expenses. In the case that the catalogue or other public materials have not been printed, the Seller shall pay an amount equal to 10% of the Reserve of the Lot and all other expenses. Any dispute or claim arising out of the Seller’s withdrawal of the Lot shall be borne by the Seller and the Company shall have no liability for resolving such dispute or claim. 26.2 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 by the Company, the Seller shall collect the Lot within thirty days from the issuance date of the Company’s notice (fees for packaging and transportation shall be at the Seller’s own expense). The consignment auction contract between the Seller and the Company will terminate on the date when the Seller collects the Lot. If during the above-mentioned period the Seller fails to collect the Lot, the consignment auction contract will automatically terminate upon the expiration of such period. If within seven days after the termination of the consignment auction contract the Seller does not collect the Lot, the Company shall have the right to charge the Storage Fee, insurance fees and other reasonable expenses, and to dispose of the Lot in a way the Company deems appropriate. The Seller is responsible for the collection of, if any, the amount obtained from the disposal after deducting all the fees and expenses incurred by the Company. 26.3 The Company has the right to suspend the auction of any Lot at any time before the actual auction under the occurrence of any one of the following situations: (i) The Company raise an objection to the ownership or authenticity of the Lot; (ii) Any third party has an objection to the ownership or authenticity of the Lot and can provide relevant evidence materials as to the basis of such objection, pays a security pursuant to the Company’s requirements and is willing to take the corresponding liabilities for the legal consequences and all losses caused by the suspension of auction; (iii) The Company raise an objection to the explanation of the Seller or the accuracy of the Seller’s warranty mentioned in Article 7 hereof; (iv) Any evidence proves the Seller has breached or when a breach of any provisions of these Conditions of Business is alleged; (v) For any other reason, the Company believes that the auction of such Lot shall be suspended. Whichever situation causes such suspension, if the Company is aware of any ownership or other dispute in relation to the Lot being consigned for auction, the Company shall have the right to refuse to return such Lot until the dispute is settled. Section 27 Successful Bids 27.1 After the sale, we shall demand the Buyer for full payment. Should there be no disputes between the Buyer and us, we shall pay the Seller within 35 days after Auction Date the Hammer Price less applicable deductions. 27.2 If there is a delay in payment by the Buyer, we shall only make payment to the Seller within 7 days after receipt of payment from Buyer. 27.3 The Seller shall be responsible for payment of all taxes arising from the receipt of the Proceeds of Sale obtained. If the Company has the obligation to withhold and pay taxes according to the provisions of the relevant laws, the Company will comply with the provisions of the applicable laws. The Seller shall assist in handling all the formalities and pay the corresponding taxes and expenses. 27.4 The Seller shall, at the time of its consignment of the Lot to the Company for auction, be deemed to have authorized the Company to demand the corresponding outstanding payment from the Buyer on behalf of the Seller. Where the Buyer fails to fully pay the Purchase Price within 14 days after the Sale Date (including the Sale Date), the Company shall have the right to demand the Commission and other Buyer’s Expenses according to the provisions of Article 18 hereof. In addition, the Company shall as well have the right to take appropriate measures (including but not limited to resorting to legal proceedings) to assist the Seller in collecting such outstanding payment from the Buyer where it is deemed by the Company to be practicable. The above provision does not exclude the Seller’s right to demand in person or authorize any third party to demand the outstanding payment from the Buyer and does not obligate the Company to demand the corresponding outstanding payment from the Buyer on behalf of the Seller under any circumstance. This Company shall not bear the corresponding liability for the Seller because of the Buyer’s failure to pay the Purchase Price under any circumstance. 27.5 The sale shall be deemed as cancelled should the Buyer fail to make full payment within 60 days after Auction Date. We shall therefore return the Lot to the Seller without any liabilities and obligations. 27.6 Should we be obliged to take the Lot back from the Buyer on the basis that it is a fake or forgery, the Seller shall refund to us in full the proceeds of sale he/she so received. 27.7 Unless otherwise instructed by the Seller, we shall pay the Seller in Hong Kong currency. Section 28 Unsold Lots 28.1 Private sale after the auction The Company may re-negotiate with the Seller on the revised Reserve and sell the Lot in private sale, and pay the Seller the Proceeds of Sales adjusted based on the revised Reserve. 28.2 Re-auction The Company may re-auction the Lot. The Commission and expenses scale set out in the previous consignment auction contract remains applicable. 28.3 Collection of the Lot The Seller shall collect the Lot within 7 days upon the issuance of our notice on collection or within 30 days after Auction Date (whichever date is earlier) and pay the Company the service fee for unsuccessful auction and other expenses. Fees for packaging and transportation shall be paid by the Seller. The Company shall, upon expiration of such time limit, be entitled to charge the Storage Fee, insurance fees and other reasonable expenses. If any such Lot is not collected within 60 days after the date of sale, the Company shall have the right to sell the Lot through public auction or other means of sale according to the conditions the Company deems appropriate. The Company shall also be entitled to deduct the service fee for unsuccessful auction and other expenses payable by the Seller in the first auction as well as all expenses for re-sale of the Lot by auction from the Proceeds of Sale before paying the remaining amount to the Seller. 28.4 Risk Assumption The Seller shall assume liability for all risks and expenses that occur after the time limit prescribed herein if the Seller fails to recover the possession of the Lot not auctioned or the unsold Lot within such the time limit. The Seller shall assume liability for all risks and expenses of the Lot not auctioned or the unsold Lot at the earlier of the thirtieth day after the Company issues a notice on collection of the Lot to the Seller (including the notice date) and the time when the Seller collects the Lot in accordance with these Conditions of Business. Where the Seller requests Company to assist it in the return of the Lot within the time limit provided herein and the Company so agrees, the Seller shall assume liability for all risks and expenses that occur after the Lot leaves the place designated by the Company. Unless the Seller specifically gives an indication and pays insurance premium in advance, the Company has no obligation to insure the Lot for any period after its departure from the place designated by the Company. Where the Seller requests the Company to assist it in returning the Lot by means of post, express delivery or other third-party transportation, the Company shall be deemed to have returned the Lot and the Seller shall be deemed to have collected the Lot upon the Company’s delivery of the Lot to the post, express delivery and transportation entities, companies or their employees/branch offices. (i) If any Lot is unsold, or is excluded or withdrawn from the sale for any reasons, the Seller must collect the Lot from us within 7 days upon the issuance of our notice or within 30 days after Auction Date (whichever date is earlier). Any costs incidental to the collection of the Lot shall be borne by the Seller. The Seller shall pay all the expenses in full before the Lot is released. (ii) If any such Lot is not collected within 60 days after the date of sale or the abovementioned date of notice (whichever date is earlier), we shall have the right to dispose it by auction or any other means as we deem appropriate. The proceeds we so received, after deducting all expenses incurred, shall be for Seller's account and he/she shall collect same from us. (iii) The Seller shall assume all the risks should he/she fail to collect any unsold Lots. If the Seller requires our assistance in arranging the return of the Lots, he/she shall bear all the risks and expenses so incurred. Unless the Seller requests, normally return Lots will not be covered by insurance. Part 4 Miscellaneous Section 29 Copyright The Seller authorizes the Company to produce photos, illustrations, catalogue, video products and advertising materials in any other forms of the Lot that it has appointed the Company to place for auction, the Company is entitled to the above photos, illustrations, catalogue, video products and advertising materials in any other forms of the Lot, and has the right to use them without the necessity to pay any charges. Without prior written consent of the Company, the Buyer and any other third party shall not use them. The Company and the Seller have not made any statement and warranty as to whether the Lot is restricted by copyright or if the Buyer has obtained any copyright of the Lot. Section 30 Obtaining Information, Video Taking In connection with the operation of the auction business of the Company, the Company may make audio recording, video recording of any auction process, and need to collect personal information from the Bidder or ask for the information of the Bidder from third parties (such as asking for credit review from banks). Such information will be handled and kept in confidential by the Company. However the information concerned may be provided to the Company, its divisions, affiliates and subsidiaries in order to assist the Company to provide comprehensive services to Bidders, carry out client analysis, or in order to provide services that meet the requirements of the Bidder. For the sake of the interest of the Bidder, the Company may also provide some personal information of the Bidder to third party service providers (such as cargo liners or storage houses). By participating in the auction of the Company, the Bidder agrees to all previously stated disclosure. If the Bidder would like to obtain or amend his/her/its personal information, please contact the customer service department. Section 31 Authentication Right The Company may authenticate the Lot if necessary. In case of any discrepancy between the authentication conclusion and the conditions of the Lot in the consignment auction contract, the Company shall have the right to request modification or rescission of the consignment auction contract. Section 32 Notice The Bidder and the Buyer shall inform the Company their permanent and effective correspondent address and contact methods in the bidding registration documents or by other methods recognized by the Company. If there are changes, they shall inform the Company in writing immediately. The notices mentioned in the Conditions of Business only refer to written notices sent by letter or fax formats. A notice shall be deemed as served at the following moment: (i) If it is served by hand, when it reaches the address of the party concerned; (ii) If it is sent by post, then it is the seventh day after it is posted; (iii) If it is sent by fax, then it is the moment the outgoing fax transmission is confirmed by the fax machine. Section 33 Severability If any part of these Conditions of Business is found by any court to be invalid, illegal or unenforceable, that part shall be discounted and the rest of the conditions shall continue to be valid to the fullest extent permitted by law. Section 34 Law and Jurisdiction 34.1 The Conditions of Business and the related matters, transactions, any disputes caused by or in connection with the participation in the auction activities of the Company pursuant to the Conditions of Business shall be subject to Hong Kong laws and shall be interpreted by Hong Kong laws. The Company and the Buyer and the Bidder shall submit to the non-exclusive jurisdiction of Hong Kong courts. 34.2 By bidding at auction, whether in person or by agent, by absentee bid, telephone or other means, the Buyer shall be deemed to have accepted these Conditions and submitted, for the benefit of Marchance to the non-exclusive jurisdiction of the courts of Hong Kong. Section 35 Right of Interpretation The right of interpretation of these Rules shall belong to the Company. Section 36 Language The Chinese version of the Conditions of Business shall be the standard texts; the English version is for reference only. Should there be any discrepancy between the English version and Chinese version, the Chinese version shall prevail.

Buyer who fully pays within 14 days after the Sale Date (including the Sale Date) can enjoy Early Payment Discount on Buyer's Premium, which is equal to 25% of the Hammer Price of each lot up to and including HK$8,000,000; and 17% of the excess of the hammer price above HK$8,000,000.