ANTIQUE ORIENTAL RUGS THE MUNKACSI COLLECTION

AUSTRIA AUCTION COMPANY Langauer GmbH (AAC) accepts objects on behalf of sellers as a commission sale in or outside its business premises, the Internet or by using other, appropriate technical or actual equipment, to auction such goods subject to the following conditions. The consignor warrants he is the sole owner of the items to be auctioned, or is duly authorized to act on behalf of such owner. The contract will be in accordance with the provisions of the Austrian Commercial Code of 1994 as currently amended. 1. The auction item will be stored in the storerooms of AAC for free until the completion of the auction for which the objects have been accepted. 2. The storage is at the risk of the consignor. AAC is only liable in case of willful or grossly negligent breach of contract. Any proof for intent and gross negligence must be made by written claim immediately by the consignor. However, for the following -- fire, burglary and theft -- AAC offers insurance at the consignor?s expense. The premium for this insurance will be shown separately on the invoice. At the completion of the auction this insurance expires. The consignor accepts these conditions in writing at the time of consignment. 3. The consignor agrees the sale of consigned objects will be governed in accordance with the attached General Terms and Condition of Auction, which are an integral part of this auction contract. AAC can in certain circumstances bid on behalf of the consignor up to the reserve price. Where the consignor has not set a minimum price (the reserve), the auctioneer shall sell the object at a price at its sole discretion. If the object is unsold during the auction, the highest bidder will be tied to his bid for a period of three weeks. The consignor has to agree to such a sale, to the highest bidder, in sufficient time so that bidder can be notified within the three week period. If the consignor gives a group of objects for sale the auctioneer has the right to sell them at his sole discretion as long as the consignor?s limit for the group is met. 4. If three days from the date of accepting the consignment agreement the consignor has not contacted AAC, the consignor then agrees to the estimate in the AAC consignment agreement. These estimates done by AAC using due care are not any guarantee of selling price. AAC does not assume any responsibility to be held liable by the standards of Civil Code § § 1299f. The consignor expressly agrees to waive any estimates or assessments made by outside publicly appointed and sworn experts. 5. After the close of the auction, the consignor agrees to leave any unsold objects with ACC for a period of three weeks to allow AAC to arrange possible private sales. Selling price in this case will be a minimum determined by the consignor?s reserve. If there is no reserve consignor agrees to allow AAC to sell the object at a price determined by AAC?s sole discretion. 6. The consignor agrees to be paid according to the terms of this contract. Should the consignor be a corporation the consignor agrees to pay on its behalf the VAT it will receive from AAC as part of its settlement for the object?s sale. 7. Consignor agrees if the object is not sold or picked up within five weeks from the date of sale AAC is entitled to either return the object at consignor?s cost and risk, or to charge storage fees at industry standard. 8. Consignor agrees to pay AAC a commission based on the consignment agreement. Consignor agrees to pay for any images in the catalog according to the consignment agreement. Consignor agrees to pay any expenses related to the sale of his objects, like packing, postage, transportation and the cost of repairs, etc., listed in the consignment agreement. Should the consignor, or his agent, bid for and buy any object listed on the consignment agreement with AAC consignor agrees to pay all normal charges, as if the object was sold to any other bidder. 9. AAC reserves the right to charge a 3% commission, plus any costs listed in paragraph 8 of this agreement, for any object which has remained unsold in the auction or in the three week period following the auction. 10. The consignor takes full responsibility for the information he has provided AAC about the object and guarantees to protect AAC from any and all claims by any third party. In particular, the consignor shall be liable for all defects and deficiencies of the objects. Should AAC discover any additional significant defects after delivery AAC is entitled to cancel the contract. Also in principle AAC is entitled to reject accepting the object without giving any reason. In the event of any contest of ownership or anything else the consignor agrees to pay all expenses in advance. AAC is liable to the consignor only in case of willful or grossly negligent breach of duty. 11. Forty-five days after the auction, providing the buyer has paid in full, the consignor will be paid the balance due by AAC. If the buyer does not pay in full, at the consignor?s discretion, AAC will endeavor to collect payment. However, the consignor agrees to pay in advance for any fees or charges associated with this effort. AAC is liable to the consignor for the amount of the auction proceeds due to him when the buyer has paid in full. 12. Should an object stay unsold in the auction and the consignor demands it returned before the end of the three week period, AAC is entitled to receive full commission and any other relevant charges before returning the object. If the contract is canceled by mutual agreement between the consignor and AAC, the consignor agrees to pay AAC all commission and costs. The calculation for this will be from the minimum price specified in the consignment agreement, or as alternatively set by AAC in the catalog. 13. The consignor agrees to the listed date and time of the auction shown in the consignment agreement. All changes and any amendments to these conditions of sale must be registered in writing. Statements by AAC are only binding if they are confirmed in writing. Consignor and buyer agree the jurisdiction of the local court in Vienna will apply. In any event only Austrian law applies. Consignor and buyer agree the UN Convention on Contracts for the International Sale of Goods of 11.04.1980 (CISG 89 BGBl II) shall not apply. 14. Consignor agrees if there is any copyright question the consignor will be liable for all charges and payments. 15. Should any part of this agreement be found invalid it does not change any of the other parts. Consignor agrees if any invalid part of this agreement is replaced AAC has the sole right for its agreement. GENERAL TERMS AND CONDITIONS OF AUCTION for Austria Auction Company Langauer GmbH 1. Austria Auction Company Langauer GmbH (Auctioneer) conducts public auctions as a commission agent in its own name and on behalf of the consignor, who will remain anonymous in public, under the terms and conditions listed in the Terms and Conditions and below. 2. The prices listed in the catalog are only estimates. 3. Each bidder buys in his own name and for his own account, unless prior to the auction other arrangements have been made in writing, or by a written power of attorney. Written or telephone bids must be arranged in advance, but not less than 24 hours before the date and time of auction. This must be done in the name of the bidder, citing the catalog number and maximum bid (hammer price), which is understood to be an aggregate amount without charges and sales tax (hammer price). All errors, mistakes and inaccuracies will be borne by the bidder, in case of doubt the catalog number is the determinant. AAC shall not be held liable for any problems with any telephone bid or email bid. By placing a bid, the bidder confirms agreement with all Terms and Condition listed here and in the Terms and Condition in the catalog. AAC expressly reserves the right to reject any bid without reason. 4. The auctioneer reserves the right to combine catalog numbers, to sell out of sequence, to withdraw any lot, or to cancel the sale without reason. The bidding can begin at any amount at AAC?s discretion. Bidding will be increased by approximately 10%, or at any amount at the discretion of AAC. 5. AAC can refuse any bid at its discretion. If several bidder make the same bid simultaneously, and after three unsuccessful attempts to raise the bid, AAC at its discretion will decide who will win the lot. Should a bidder immediately complain about a missed bid, or raise immediate questions about the selling of a lot, AAC has the right to reoffer the lot. In any case AAC shall only be liable for gross negligence. 6. The buyer will win a lot only after three unsuccessful calls for a higher bid have been made. AAC can close the bidding at any time and announce a lot is unsold. In such a case the highest bidder of record will be bound for a period of three weeks to honor his bid. If that bidder does not receive, within that period, the unconditional acceptance of that bid, this contract expires. If during that period there is a higher bid AAC can accept it. At AAC?s discretion it will notify the bidder of the receipt of a higher bid to allow the bidder to raise his bid accordingly. AAC will use the bidder?s registered address for notification but in no event will AAC be bound to make any such notification. 7. Consignor and buyer agree any sale completed on any associated Internet platform will be governed by the terms and conditions of the operator of that platform. If there are no terms and conditions on that platform then those of AAC will apply. Consignor and buyer agree if there are conflicting terms and conditions between AAC and the operator of an internet platform then those of AAC will apply. Consignor and buyer agree AAC assumes no liability for damages of any kind arising when bidders or third parties use the services of AAC. In particular, AAC is not liable for any damages due to any technical or other defects (e.g. power failure, system failure, etc.). 8. The consignor and buyer agree the winning bid is a contract and the buyer is committed to purchase and pay promptly. The consignor and buyer agree AAC assumes no responsibility for any damage, loss, confusion, etc. in delivering the successfully sold object to the buyer. 9. Consignor and buyer agree objects will be sold by AAC under the differential tax rules. AAC?s 22% premium only includes the VAT of the differential tax. For corporations who have a pre-tax allowance the 22% remains, and in addition a 20% VAT charge of the total amount will be added. If an EEC company operating outside of Austria is the buyer then the sale is subject to the transfer tax of that country. In this case where no Austrian VAT is to be paid the buyer must notify AAC prior to the sale in writing and include its VAT identification number (UID). If the buyer is located outside of the EEC then the VAT will be refunded only if the buyer provides AAC with proof of proper export. The buyer agrees to pay for any and all objects successfully purchased at the auction immediately after the last lot is sold unless prior payment arrangements have been approved in writing by AAC. For buyer wishing to settle their bill immediately after the auction AAC will generate an invoice and the buyer must check this for any errors and immediately bring those errors to AAC?s attention. 10. Buyer agrees to pay in Euro(?) by cash. All other forms of payment must be agreed to by AAC prior to the beginning of the auction. Buyer agrees any expenses related to payments will be paid by the buyer and not by AAC. Buyer agrees AAC will not surrender the object until full payment and any other related charges have been collected in full by AAC. 11. Buyer agrees any payment not made immediately after the auction ends will accrue interest at the rate of 1% per month or part thereof. The auctioneer may claim damages from the buyer for non-performance in case of default by either breach of contract or after expiry of a reasonable grace period. Should the buyer be deemed in default AAC at its sole discretion may re-offer the object for sale either in private sale or by auction. The buyer agrees to pay in addition to the original invoice any charges AAC should have to bear in reselling the object. Should AAC sell the object for more the buyer is not entitled to receive any excess proceeds and agrees to be considered as the consignor for such a sale. 12. Buyer agrees to take possession of his purchase immediately after the auction. Should the buyer fail to take possession then, or after further attempts by AAC to notify the buyer to take possession, AAC is entitled to damage delay compensation as in the same manner as if the buyer did not pay. Immediately after the object is purchased under the hammer the auctioned object is stored at the expense and risk of the buyer. The buyer agrees any undelivered object may be store by AAC at its sole discretion and any reasonable charges for that storage will be the responsibility of the buyer. The buyer agrees shipping and packaging of any purchased object is on request only and at its own cost and risk. Such arrangement must be agreed to by AAC in writing but under no circumstances will AAC be liable for any claims of loss, damage, etc. 13. All objects offered by AAC for auction may be inspected and examined prior to the auction at the stated time and place listed in the catalog. The object are offered without any expressed liability or warranty by AAC. It is the buyers sole responsibility to make an inspection and while AAC will help to do this buyer agrees not to hold AAC responsible for any and all claims related to this help. The catalog details have been created to the best of AAC?s knowledge and belief, but there are no guarantees in the legal sense (§ § 922 ff Civil Code) for this information. They are not part of any contract between AAC and the buyer or consignor. Buyer and consignor agree all objects are sold where is and as is. 14. The auctioneer agrees if there are any gross errors in the catalog description proven beyond reasonable doubt, which grossly devalue the purchase, the buyer has the right within a reasonable time period and by written notification to AAC to a refund of the purchase price(hammer) exclusive of the refund of any other payments. 15. The consignor may withdraw any object from the auction but this must be done by written notice to AAC prior to one month before the date of the auction. If the consignor does this a fee equal to 22% of the high estimate must be paid to AAC. In no event will AAC withdraw any lot until this fee is paid in full prior to one month before the auction date. 16. Consignor and buyer agree not to hold AAC responsible for any claims other than those judged to be grossly negligent. 17. Consignor grants AAC the right to place a lien on any objects should there be any unpaid payments due AAC. Consignor agrees to be responsible for any incidental charges related to AAC?s collecting any unpaid bill. Consignor agrees AAC may sell any object to collect any unpaid bills according to the relevant statutory provisions. The same, without restriction, applies to all circumstance between AAC and a buyer. 18. Consignor and buyer agree the jurisdiction of the local court in Vienna will apply. In any event only Austrian law applies. Consignor and buyer agree the UN Convention on Contracts for the International Sale of Goods of 11.04.1980 (CISG 89 BGBl II) shall not apply. Should any part of this agreement be found invalid it does not change any of the other parts. Consignor agrees if any invalid part of this agreement is replaced AAC has the sole right for its agreement. 19. Consignor and buyer agree these terms and conditions also apply for any subsequent private sale of objects by AAC to any purchaser. 20. AAC will not release any consignor or buyer private information unless there is a legal obligation or substantiated claims by third parties. In the case of a valid claim by a third party AAC has the right to release the personal data of the consignor or buyer. At AAC?s sole discretion any private information may be used in its marketing and any other commercial activities. However, AAC will not give this information to any other third parties for their use.