CONDITIONS OF BUSINESS Power of attorney issued by the Seller to the Seller's made between the Seller and the Company shall cease the insurance premium payable by the Seller to the agent through lawful procedures. on the date the Seller collects the Lot. If the Seller Company shall be 1% of the Reserve. fails to collect the Lot during the above-mentioned The Seller has rights to check all the documents Period, the consignment contract will be automatically Article 17 Insurance Period mentioned above within the legal permission. terminated upon expiration of the term thereof. The Company reserves the right to dispose of the Lot in In the case that the auction of the Lot succeeds, the Article 9 The Seller's Warranties any way it deems reasonable if the Seller still fails to insurance Period shall terminate on the earlier of 4 p.m. collect the Lot within 7 days following the ceasing of of the 30th day of the Sale Date, counting from that The Seller hereby makes irrevocable warranties as the consignment contract, in which case the proceeds Date, and the date when the Buyer collects the Lot. follows to the Company and the Buyer with respect to from such disposal shall be collected by the Seller In the case that the auction fails, the insurance Period the consigned Lot: after deduction of all costs and Expenses incurred, if shall terminate at 4 p.m. of the 14th day counting from any remaining amount exists after such deductions. the day when the Seller has received the Company's The Seller has exclusive and absolute ownership and notice to take back the Lot. legal right to dispose of the Lot. Without prejudice to Article 13 Suspension of Auction any legal interest (including copyright) of any third Article 18 Insurance by Seller party, the auction of the Lot will not violate any relevant The Company may suspend any auction at any time law or regulation; under any one of the following circumstances: In the event that the Seller notifies the Company not to arrange insurance for the Lot in writing, he shall The Seller has, to the best of its knowledge, made The Company has objection to the ownership or undertake to bear all the risks of losses and damages full and complete disclosure and description to the authenticity of the Lot; of the Lot and the following liabilities: Company with respect to the origin and any flaw or defect of the Lot without any concealment and Any third party has objection to the ownership or To indemnify and hold the Company harmless from and fabrication; and authenticity of the Lot with undertakings to provide against any claims or actions incurred or brought by relevant evidence, make security as required by the any third party with respect to the losses or damages The Seller shall indemnify and hold the Company and/ Company and take liability for all legal repercussions of the Lot; or the Buyer harmless from and against any claims, and losses due to suspension of auction; losses and damages or actions incurred or brought by To indemnify and hold the Company and/or any other the actual owner or any third party who claims to be The Company and/or any third party has objection to parties harmless from and against any losses and the actual owner of the Lot and all Expenses and costs representations made by the Seller or the accuracy Expenses in relation to the losses or damages of the (including but not limited to attorney's fees, survey regarding the Seller's warranty provided in Article 9 Lot caused for any reason; and fees and court costs) incurred in connection therewith hereof; or The Company and/or any third party has any arising out of or in any way attributable to any breach evidence to prove the Seller has already violated or is To notify the terms of indemnity hereunder to any of above warranties. to violate any term of these Conditions. insurer of the Lot. Article 10 Reserve Article 14 Withdrawal of Lots by Seller Article 19 Uninsured All Lots are offered subject to a Reserve, unless The Seller may withdraw the Lot at any time prior to The Company will not be liable for any the damages otherwise agreed by the Seller and the Company. The the Auction Date subject to the Company's consent or losses of the Lot caused by natural wear, inherent Reserve shall be determined by the Seller and the and a written notice stating the reasons. In the case flaws, inherent or potential defects, inherent material Company in writing and no modification or amendment that the catalogue or any other advertisements of changes, self-combustion, self-warming, oxidation, rust, of the Reserve shall be binding upon the parties unless the Lot have begun to be printed upon the Seller's leakage, rat-bite, woodworm, changes in atmospheric prior consent of the other party is obtained. In the event withdrawal, the Seller shall pay an amount equal to (climate, temperature or humidity) conditions or other that the Lot is not sold in the auction, the Company 20% of the insured value of the Lot and other Expenses reasons of natural changes, or caused by earthquake, shall have right to sell such Lot at the Reserve after the in connection therewith. In the case that the catalogue tsunami, war, actions similar to war, hostile actions, auction and be entitled to commission therefor from or other advertisements have not been printed, the armed conflicts, terrorism, rebellion, coup, strike, riots, the Seller. Under no circumstances shall the Company Seller shall pay an amount equal to 10% of the insured traffic accident, aviation accident, or nuclear fission, accept any liability for failure in sale due to bidding value of the Lot and other related Expenses. The Seller nuclear fusion, nuclear weapon, nuclear radiation, or lower than the Reserve at the auction. shall be liable for any disputes and claims caused radioactive pollution. The Company will not take liability by withdrawal of a Lot. The Seller shall indemnify, for any damages to or any losses of frames, glass, Article 11 The Company's Discretion defend and hold the Company harmless from any drawer, bottom mat, trestle, mounting, insert pages, and all claims, liabilities and Expenses, including roller or other similar accessories caused by any The Company may decide on the followings at its without limitation attorney's fees and court costs, which reason. absolute discretion: may be imposed on the Company as a result of the aforementioned withdrawal. Article 20 Insurance Indemnity Explanation and/or appraisal of any Lot made by the catalogue of Lot and/or news media and/or in other Article 15 Insured Automatically Any damages or losses of the Lot caused by incidents ways; or disasters covered by insurance the Company Unless otherwise agreed by the Seller and the purchased for the Lot shall be handled in accordance Adoption of expert's opinion; Company, all the Lots will be automatically covered with applicable laws and regulations of the People's under the insurance of the Company as soon as the Republic of China regarding insurance. The Company The arrangement for illustrations in catalogue, Seller enters into the consignment contract with and shall pay insurance indemnities less all Expenses EXHIBITIONs and other advertising activities in delivers the Lot to the Company. The insured value incurred by the Company to the Seller after the connection with Seller's Lot and charge rates accrued shall be based on the Reserve agreed by the Seller Company obtains such indemnities from the insurance thereupon; and the Company in the consignment contract (if company. no Reserve is provided, the insured value is the one Whether the Lot is suitable for the Company to auction; agreed by both parties; if the Reserve is adjusted, Article 21 Non-Bidding and the insured value shall be the original Reserve). The insured value is only subject to insurance and claims The Seller shall not bid for any Lot consigned to the The place, date, conditions and way of auction. other than the Company's warranty or guarantee for the Company thereby, nor authorize any other person value of the Lot and the Hammer Price of the Lot. to bid on behalf thereof. The Seller shall be liable for Article 12 Unauctionable Lot and indemnify the Company against any losses and Article 16 Insurance Premium damages caused by violation of this provision. After the Seller has entered into the consignment contract with and delivered the Lot to the Company, Unless otherwise agreed by the Seller and the Article 22 Commission and Expenses if for any reason the Company believes that the Lot Company, the Seller shall pay the Company an is not suitable for auction, the Seller shall, at the site insurance premium equal to 1% of the Hammer Price Unless otherwise agreed by the Seller and the which the Company at its sole discretion considers of the Lot after sale. In the case that the Lot fails to sell, Company, the Seller shall authorize the Company to appropriate, collect the Lot within 14 days from the deduct 10% of the Hammer Price as commission and date of the Company's notice dispatched (the date other Expenses from the Hammer Price. Nevertheless when the notice is dispatched shall be counted and the fees for the packaging and handling shall be paid by the Seller), in which case the consignment contract