General Provisions of PIAC International Condition Co.,Ltd.

Chapter 1.general provisions

  Article 1:

  These Conditions are formulated in accordance with The Auction Law of the People’s Republic of China ,the relevant decrees , rules and constitutions of the PIAC. And also are in light of international auction practice.

  Article 2:

  The auction activities of the PIAC will be organized according to the law , decrees , rules and constitution mentioned above . They will follow the principle of openness , fairness and justice . These activities will protect the legitimate rights and interests of the state and the persons concerned , lest any infringement.

  Article 3:

  The person who joins these auction activities is requested to read carefully and to abide by the following regulations . He will be responsible for his behavior in auction.

  Article 4:

  The PIAC shall have the right to interpret and handle any other matter that is not mentioned in these regulations . Any problem that laws will be governed by the laws of the People’s Republic of China.

  Article 5:

  All disputes arising from or in connection with performance of these conditions shall be submitted to the court or arbitration organizations in PRC for final settlement.

  Chapter 2.Stipulations for the PIAC

  Article 6:

  PIAC shall ask the Seller to explain the origin and flows of the Lot.

  Article 7:

  PIAC shall have absolute on whether a Lot is suitable for auction by PIAC , the date and place of sale, the manner in which such sale is conducted and the comment or description of any Lot.

  Article 8:

  Any representations or statements given by PIAC in the exhibition , publication, catalogue or in other forms as to the authorship, age, size, medium, mount, origin, authenticity, condition and estimated price are for reference of the prospective buyers only. PIAC shall not bear responsibility for flow if PIAC has claimed that the authenticity or the quality of certain Lots can not be guaranteed.

  Article 9:

  According the Low on preservation of Cultural Relics of People’s Republic of China and other government regulations , the Lot which is not permitted to be exported ,PIAC shall give a clear indication with the mark "*" in the catalogue.

  Article 10:

  If any loss or damage should occur to the property whilst the risk in it is borne by PIAC, PIAC shall not be liable to pay the Seller or the Buyer any more than the amount of the following :

1.100% of the reserve , if the Lot is unsold; or

2.100% of the hammer price , if the Lot is sold ;or

3.the amount agreed upon by bipartite agreement if the reserve is not available .

and less the Seller’s (or the Buyers) commission plus expense .

PIAC shall not be responsible for the damages or loss caused by forces beyond control or other condition (as woodworm etc.).

  Article 11:

  PIAC has the right to authenticate any Lot it necessary . PIAC shall have the right to ask for the change or and the auction agreement with the sellers if the conclusion of the authenticate does not comply with what is stated in the auction agreement.

  Article 12:

  PIAC has the right to decide the starting price and reference price of the Lot printed in the catalogue .

  Article 13:

  PIAC has the right to decide whither the views on the Lot of any expert shall be obtained .

  Article 14:

  PIAC has the right to decide the expense charged to sellers for the illustration of any lot in the catalogue.

  Article 15:

  PIAC shall provide services for both seller and buyer .As the agent of seller it shall not be responsible for any sellers and buyers breach of contract of the lot.

  Article 16:

  PIAC shall have the right at its absolute discretion to refuse admission to is premises or attendance at its auctions by any person that may be unfitted for the auction activities .

  Article 17:

  PIAC shall have the right at its absolute discretion to advance the bidding as it may decide or refuse any bid ,to withdraw or divide any Lot ,to combine any two or more Lots in the case of dispute or put up any Lot for auction again .

  Article 18:

  PIAC shall have the right to determine the currency that used in auction .

  Chapter 3. Stipulations for Seller

Warranty and compensation

  Article 19:

  The Seller must show his valid identification card when he come to entrust the PIAC to sell his goods by auction and the seller must enter into a Proxy for Auction with PIAC.

  Article 20:

  The seller shall warrant to the PIAC that he has the ownership of the goods for auction and that is free from all liens and encumbrances .The seller must provide the relevant identification documents if necessary.

  Article 21;

  The seller should provide the PIAC with all kinds of information he knows or he ought to know ,regarding the background and defects of the goods for auction.

  Article 22:

  The seller shall be legally responsible for all disputes arising , and shall compensate the PIAC for its economic losses and the damage of its reputation if he infringes the article 19 ,20 and 21 mentioned above.

  Article23:

  The seller should neither bid in the auction nor should he consign an agent to bid on behalf of himself .           

  Article 24:

  The seller should not bid for the lot that entrusted nor employ any person to bid for him . If the seller does, he has to pay 20% of the hammer price and also other relevant charges , according to the regulations.

  Article 25:

  The seller should help the purchaser deal with the matter of the ownership transfer of the auctioned goods and other formalities.

  Reserve

  Article 26:

  All lots shall be offered with a reserve that agrees in writing between the PIAC and the seller . Once a reserve has been agreed , it may be changed with the consent of the both parties fifteen days before the date of the auction. The two parties shall be obliged to keep confidential for the reserve they decided .The PIAC has right to sell the lot below the reserve but the seller shall be entitled to the same proceeds of sale as the lot were sold at the reserve.

  Commission and expenses

  Article 27:

  Unless otherwise an agreement has been reached between the seller and the PIAC ,the seller shall pay the PIAC 10% of amount the of hammer price as commission and pay other service fees as well when the lot he entrusted has been sold out .For unsold lot the seller should pay 3% of the reserve to the PIAC as service charge and also other service fees as well.

  Insurance

  Article 28:

  Unless otherwise instructed by the Seller , all lots shall be automatically covered by insurance under the PIAC own insurance policy for such sum as shall from time to time in its absolute discretion estimate . This sum shall not be relied upon by the Seller as a warranty or guarantee as to the value of the lot or that it shall, if and when sold by the PIAC be sold for such amount.

  Article 29:

  The Seller shall pay one percent of the highest bidding price of insurance premium for lots sold.

  Article 30:

  Such insurance shall subsist until payment is due from the Buyer , or in the case of lot unsold ,until the expiry of the agreement signed by the Seller and PIAC.

  Article 31:

  In case the Seller instructs the PIAC not to insure a lot by words , it shall at all times remain at the risk of the Seller who hereby undertakes:

a.to indemnify the PIAC against all claims made or proceedings brought against in respect of loss or damage to the lot of whatever nature however and wherever occurring and in any circumstances even where negligence is alleged or prove;

b.to reimburse the PIAC on demand for all payments, costs or expenses made, incurred or suffered by the PIAC in consequence there of or arising there form;

c.to notify any insurer of the existence of the indemnity contained in these Condition.

  Article 32:

  The PIAC shall not be responsible for the damages caused by borer or changes of weather on the lot ,and neither shall it be responsible for any damage to Picture frames or glass .The claim of damages to an insured lot shall by the insurance company and the PIAC. In case of a successful claim ,the PIAC shall refund the balance to the seller after deducing its expenses.

  Article 33:

  The PIAC shall not be responsible for the damages and losses caused by accidents beyond control.

Payment of Proceeds of Sale

  Article 34:

  When purchaser has paid the purchase price in full to the PIAC , the PIAC shall pay the proceeds of the sale in RMB to the seller within 35 days after the date of auction.

  Article 35:

  If before the purchase price is paid in full by the purchaser the PIAC has paid the seller the amount that equals to the proceeds of sale ,ownership of the lot shall belong to the PIAC.

  Article 36:

  In case the purchaser fails to pay to the PIAC the purchase price within one month after the date of auction, the PIAC shall endeavor to take the seller’s instructions as to the appropriate course of action to be taken. The PIAC shall assist the seller to recover the purchase price from the purchaser if practicable, including that the PIAC shall issue proceedings against the purchaser in its own name, but the expenses of proceedings shall be afforded by the seller.

Charges for withdrawn lot

  Article 37:

  The seller may withdraw a lot at any time prior to the date of auction exhibition but, once the catalogue or any other publication including the lot has been printed, a charge of 20% of the reserve of the lot and other expenses shall become payable. In case the catalogue or any other publications has not been printed, the seller has to pay 10% of the reserve and other expenses.

Unsold Lot

  Article 38:

  If the lot that is entrusted to the PIAC for auction has not been sold, the seller shall take it back at his own expense within two months after receipt of the PIAC’s notice. He also has to pay 3% of the reserve of this lot to the PIAC as service charge. After the expiry of such a period the PIAC shall have the right to sell the lot by public auction or some other way on such terms as it thinks fit. The PIAC shall also be entitled to deduct commission and all the other fees from the proceeds of sale before giving the balance to the seller.

  Article 39:

  The seller may ask the PIAC to auction the lot again if that was unsold. The reserve can be decided again by the seller and the PIAC, and the Proxy for Auction shall be signed as well.

  Article 40:

  In case the seller fails to take his lot back within two months , he shall be liable to all the accidents happening thereafter. In case the PIAC is requested to return the lot by the seller , the lot shall be returned at the latter’s own risk and expenses . The lot shall not be insured in transit unless the PIAC is otherwise instructed by the seller who shall pay premium for insurance.

  Chapter 4 stipulations for Bidder and Purchaser Buyer

Regulations for the bidder

  Article 41:

  Each bidder , shall , before auction , complete and sign a Registration Form with his official identification card or passport ,and receive the Bidder Card in order that he has the right to bid.

  Article 42:

  Each bidder shall be deemed to act as principle unless the PIAC has acknowledged in writing that the bidder is acting as agent on behalf of disclosed principle.

  Article 43:

  That the bidder’s entry into the auction hall implies that he shall acknowledge and abide by all the regulations of this document.

  Article 44:

  The bidder’s lift of his Bidder Card implies that he shall agree to the price on the spot.

  Article 45:

  The bidder shall be responsible for his bid at any price . Once the bidder with the highest price is acknowledged by the PIAC , he shall sign a document of the Acknowledgment of Transaction on the spot , and he shall never go back on his promise , otherwise he shall be legally responsible for it.

  Article 46:

  The bidder has right to know the defects of the lot . He has right to obtain the picture catalogue if paid for it , and also has right to examine the lot he intends to bid.

Picture Catalogue

  Article 47:

  The picture catalogues provided by the PIAC are not official publication and they are only as advance and introduction for an auction.

  Article 48:

  Any illustration or statement made by the PIAC in the Picture Catalogue or other publication regarding the authorship , origin , age , size ,material , attitude , provenance , condition and estimated selling price of any Lot is for the bidder’s reference only, and is not the guarantee of the authenticity , condition and selling price.

  Article 49:

  If there is any difference in color , light and grade between a picture and the original piece caused by photography or printing , the original piece shall prevail .

  Article 50:

  It is the bidder’s right to examine the original piece . He has better exercise the right before the auction day so as to authenticate and realize everything about the Lot that he wants to bid . He should not reject the goods or cancel the deal in excuse of knowing the goods incompletely .

Bidding on Commission

  Article 51:

  The bidder or his agent is advised to attend at the auction . In case he is unable to do so , The PIAC may accept his written proxy to bid on his behalf . Neither the PIAC nor its employees shall be responsible for any neglect or default in the course of a bidding.

  Article 52:

  The bidder shall be requested to sign the Agreement of Bidding on Commission with the PIAC three days before the date of the auction , and shall remit 30% of the amount of the highest price that he would like to spend as earnest money to the PIAC . The balance shall be paid to the PIAC within seven days after the successful bid . The Agreement of Bidding on Commission shall be void if the PIAC has not received the earnest money before the date of the auction .

  Article 53:

  The bidder can bid by telephone in the course of bidding if he has signed the Agreement of Bidding on Commission and paid the earnest money .

  Article 54:

  If there are two or more bidders offering the same entrusted bidding price , the Agreement of Bidding on Commission that signed first by bidder and the PIAC shall prevail .

  Article 55:

  If the PIAC fails in the bidding with the bidder’s entrusted bidding price , the entire earnest money shall be refunded to the bidder within ten days after the date of the auction . The PIAC shall not receive charge for bidding on commission .

About Cancellation of Transaction

  Article 56:

  If , within thirty (30) days of the date of the auction ( and in the case of jewelry , twenty-one days) we will set aside the sale and refund to the Buyer , provided that the Buyer satisfies the PIAC with all of the following conditions:

a.The PIAC has received Notice in writing from the buyer of any the Lot that in his view Lot is a forgery ;

b.Same time of such Notice , we have the Lot in its possession in the same condition as at the date of auction ;

c.The Buyer supplies to the PIAC with written statement from two or more than two national-level experts in the respective field stating that the Lot is a forgery ;

d.The Buyer has since the sale retained uninterrupted ownership and the Lot is free from any liens or encumbrances ;

e.The respective Lot was sold at the auction by the PIAC.

  Article 57:

  Under any one of the following circumstances that Buyer shall have no right to request the PIAC to set aside a sale ;

a.The catalogue description at the date of the auction was in accordance with the generally accepted opinion;

b.It can be established that the Lot is a forgery only by means of a scientific process not generally accepted for use until after publication of the Catalogue or by means of a process which at the auction was unreasonably expensive of impractical or likely to have caused damage to the Lot ;

c.The Buyer has transferred his ownership of the Lot of the original invoice is not available.

Commission

  Article 58:

  The bidder who gets the auction goods is requested to pay 10% of the hammer Price as commission , and pay other necessary expenses as well to the PIAC.

  Article 59:

  Once succeeded in Bidding, the purchaser shall be required to sign the Acknowledgment of Transaction ,and pay the full amount of the price of transaction on the spot before collecting the goods. If the price of transaction is over 300,000 Yuan RMB he should pay 30% of the totally required payment as a deposit . The purchaser shall complete the balance in one lump sum and take away the auctioned goods within seven days from the auction day . The goods shall not be considered sold out and the deposit shall not be refunded to the purchaser if he can not pay the balance within seven days .

  Article 60:

  Payments shall be made in cash , by credit card or by bank cheque according to the currency type specified on the catalogue . Other currencies shall be converted at the exchange rate promulgated by the Bank of China on the day before the date of auction .

  Article 61:

  The purchaser shall get the ownership of the auctioned goods when he has paid the price of transaction in full , and he has to take away the auctioned goods within seven days from the date of auction . The purchaser shall be responsible for the charges on any removal , storage and insurance , which are caused by having not taken away the auctioned goods within seven days from the date of auction . The purchaser shall also be liable for any loss or damage in storage .

  Article 62:

  The buyer must take away the Lot he bought within severn days after paying the price of the Lot, the commission and other related expenses. Otherwise the buyer is liable to pay removal fees, storage and all other charges. He is liable for damage or caused by dely.

  Article 63:

  The PIAC shall only provide simple packing for auctioned goods if necessary , and shall not be responsible for any delivery of the Lot .The purchaser should re-pack the goods in the way he desires.

  Article 64:

  In case the purchaser fails to pay for the goods he bought , the PIAC shall have the right to adopt the following measures:

1.To claim compensation for all losses if it suffers due to the breach of contract . (They also include interest loss due to purchaser’s delay or refusal to making payment . The interest shall be based on the set for the same period by the People’s Bank of China .)

2.To rescind the transaction of that or any other deal with the purchaser . and to retain the auctioned goods accordingly , until purchaser fulfills his obligations stipulated by this document . All the costs relevant and expenses that incurred shall be born by purchaser himself .

3.To sell the lot again by auction or other way .Any deficiency in the purchase price resulting from such resale together with full costs incurred in connection with the Lot shall be paid to the PIAC by the purchaser .

` Chapter 5. Definitions

  "Expenses " shall mean the costs for insurance , illustrations, packing , freight and etc ,that charged by the PIAC.

  "Hammer price" shall mean the price at which the Lot is knocked down by the auctioneer to the bidder .

  "Estimated price " shall mean the estimated selling price of each on the catalogue.

  "Reserve" shall mean the lowest selling price of the Lot that confirmed by the seller in writing after seller with the PIAC.

  "Purchase price" shall mean the Hammer price plus any premiun , and additional charges and expenses due from a defaulting purchaser.

  "Auctioned goods "id referred to the lot that has been sold out the day of auction.

  "Commission" is referred to the service charges that collected on a certain percentage by the PIAC from both seller and purchaser.

  "Proceeds of sale "shall mean the net amount that the Hammer price removing the commission and expenses and any other amounts due the PIAC.

  "+Article

  Any introduction or comments (including photos,picture ,slides and news reports) made by China Guardian and its employees or its agents regarding any Lots shall be for reference only ,and shall not be interpreted as guarantees of any kind. The Buyer shall examine the original Lot and bid at his own risk.