General Auction Rules

Auction Rules of Guangdong Chongzheng Auction Co., Ltd.

Chapter I General Provisions

Article 1: Formulation of the Rules
These Rules are formulated in accordance with the Auction Law of the People's Republic of China, other relevant laws and regulations of the People's Republic of China, and the articles of association of the Company, with reference to international common practices.
Article 2: Definition of Terms
In each clause of these Rules, the following terms shall have the respective definitions as set forth below:
(1) 'The Company' refers to Guangdong Chongzheng Auction Co., Ltd.;

(2) 'Consignor' refers to a natural person, legal person, or other organization that entrusts the Company to auction items within the scope specified in these Rules. Unless otherwise stated or required by the context, 'Consignor' includes the agent of the Consignor;

(3) 'Bidder' refers to a natural person, legal person, or other organization that participates in the auction activities organized by the Company, registers with the Company and completes the necessary procedures, and has full capacity for civil conduct in accordance with the laws of the People's Republic of China. Where laws and regulations stipulate the conditions for the purchase and sale of auction items or the qualifications of Bidders, Bidders shall meet such prescribed conditions or qualifications. Unless otherwise stated or required by the context, 'Bidder' includes the agent of the Bidder;
(4) 'Purchaser' refers to the Bidder who purchases an auction item with the highest bid at the auction activities organized by the Company;
(5) 'Auction Item' refers to the item delivered by the Consignor to the Company for auction at auction activities;
(6) 'Auction Date' refers to the date officially announced by the Company for the start of auction transactions in a specific auction activity. If the announced start date is inconsistent with the actual start date of the auction activity, the actual start date of the auction activity shall prevail;
(7) 'Auction Transaction Date' refers to the date on which the auctioneer confirms the conclusion of a transaction for any auction item by dropping the gavel or any other public indication of acceptance at the auction activities organized by the Company;
(8) 'Hammer Price' refers to the price at which the auctioneer confirms the sale of the auction item to the Purchaser by dropping the gavel or any other public indication of acceptance;
(9) 'Net Proceeds' refers to the net amount paid to the Consignor, which is the balance of the Hammer Price after deducting the commission calculated at a certain rate, taxes and fees, and other expenses payable by the Consignor to the Company;
(10) 'Purchase Price' refers to the total amount that the Purchaser shall pay for the purchase of the auction item, including the Hammer Price, full commission, other expenses payable by the Purchaser, and all expenses payable due to the Purchaser's breach of contract;
(11) 'Various Expenses' refers to the fees charged by the Company for insuring the auction item, producing auction catalogs and other forms of promotional materials, packaging, transportation, storage, etc., as well as other fees charged in accordance with relevant laws, regulations, or the provisions of these Rules;
(12) 'Reserve Price' refers to the minimum selling price of the auction item proposed by the Consignor and determined in writing through negotiation with the Company;
(13) 'Estimated Price' refers to the estimated selling price of the auction item indicated after the descriptive text in the auction catalog or other promotional materials. The Estimated Price is assessed a considerable time before the Auction Date, is not a fixed selling price, and has no legal binding force.
Article 3: Scope of Application
The Company organizes and conducts auction activities within the scope permitted by the laws and policies of the People's Republic of China. All parties involved in the auction activities organized by the Company, including Consignors, Bidders, Purchasers, and other relevant parties (including but not limited to agents of Consignors, Bidders, and Purchasers), shall be deemed to have fully accepted the provisions of these Rules, be bound by these Rules, comply with the provisions of these Rules, and enjoy the rights and assume the obligations stipulated herein when participating in the auction activities organized by the Company.
Any Bidder participating in the bidding at the auction activities organized by the Company, whether attending in person or through an agent, whether bidding by raising a paddle at the auction activity or by written, telephone, or any other means, shall be deemed to have fully accepted these Rules.
All disputes arising between the parties involved in the auction activities organized by the Company shall be resolved in accordance with the provisions of these Rules.

Article 4: Special Reminder
In the auction activities organized by the Company, the Company generally acts as the agent of the Consignor. When the highest bid of the Bidder is confirmed by the auctioneer by dropping the gavel or any other public indication of acceptance, it indicates that the sales contract relationship between the Consignor and the Bidder regarding the auction item has legally taken effect, and the Bidder becomes the Purchaser of the auction item. The legal consequences arising therefrom shall be borne by the Consignor and the Purchaser respectively. All Consignors, Bidders, Purchasers, and other relevant parties participating in the auction activities of the Company must carefully read and comply with these Rules, and be responsible for their own actions in participating in the auction activities of the Company. Any loss or liability arising from failure to carefully read these Rules shall be borne by the actor himself/herself.
Article 5: Warranty Against Defects
The Company hereby specifically declares that it cannot guarantee the authenticity and/or quality of the auction items and shall not be liable for any warranty against defects of the auction items.
The Bidder and/or its agent shall personally inspect the original auction item and be legally responsible for their own bidding behavior for the auction item.

Chapter II Regarding Consignors

Article 6: Consignment Procedures
When a Consignor entrusts the Company to auction its items:
(1) If the Consignor is a natural person, he/she must hold a valid ID card or passport and sign a consignment auction contract with the Company;
(2) If the Consignor is a legal person or other organization, it shall hold valid registration documents, legal representative's identification certificate, or legitimate power of attorney, and sign a consignment auction contract with the Company.
(3) When the Consignor signs the consignment auction contract with the Company, he/she shall automatically authorize the Company to independently exhibit, display, produce photos, illustrations, catalogs, or other forms of audio-visual products and promotional materials for the item.
Article 7: Agent of the Consignor
Any person acting as an agent for the Consignor to entrust the Company to auction items shall provide the Company with relevant entrustment documents, including:
(1) If the agent is a natural person, he/she must hold valid identification documents;
(2) If the agent of the Consignor is a legal person or other organization, it must hold valid registration documents and legal representative's identification certificate;
(3) A power of attorney issued through legal procedures.
The Company has the right to verify the above documents in a legal manner.

Article 8: Warranties by the Consignor
The Consignor irrevocably warrants to the Company and the Purchaser with respect to the auction item entrusted to the Company for auction as follows:
(1) It has absolute ownership or legal right of disposal over the auction item, and the auction of the auction item will not infringe upon the legitimate rights and interests of any third party (including copyright interests) nor violate the provisions of relevant laws and regulations;
(2) To the best of its knowledge, it has fully and truthfully disclosed and explained the source and defects of the auction item to the Company, without any concealment or fabrication;
(3) If it breaches the above warranties, resulting in claims or lawsuits by the actual owner of the auction item or any third party claiming rights, causing losses to the Company and/or the Purchaser, the Consignor shall be liable for compensating the Company and/or the Purchaser for all such losses and bearing all expenses and expenditures incurred thereby.

Article 9: Reserve Price

(1) Except for auction items for which the Company and the Consignor have agreed on no Reserve Price, all auction items shall have a Reserve Price. The Reserve Price shall be determined in writing through negotiation between the Company and the Consignor. Once the Reserve Price is determined by both parties, any modification thereof shall require the prior consent of the other party. Under no circumstances shall the Company be liable for the failure of any auction item to be sold due to failure to reach the Reserve Price at the auction organized by the Company;

(2) The Auctioneer shall not auction the auction item entrusted by the Consignor below the Reserve Price. However, the Auctioneer may auction the auction item below the Reserve Price on the condition that the actual income obtained by the Consignor is not less than the proceeds that would have been obtained if the auction item had been sold at the Reserve Price.

Article 10: Decision-Making Power of the Company

The Company has full decision-making power over the following matters:
(1) Making any descriptions and/or evaluations of any auction item through auction catalogs and/or news media and/or other carriers;
(2) Whether to consult any expert opinions;
(3) The arrangement of auction items in the illustrations of catalogs, auction item exhibitions, and other forms of auction item promotion activities, and the standards of fees to be paid;
(4) Whether an auction item is suitable for auction by the Company;
(5) Matters such as the Auction Date, auction venue, auction conditions, and auction methods.

Article 11: Auction Items Not Put Up for Auction

After the Consignor signs the consignment auction contract with the Company and delivers the auction item to the Company, if the Company deems that the auction item is not suitable for auction by the Company for any reason, the Consignor shall retrieve the auction item within thirty days from the date of receiving the notice from the Company (at its own expense for packaging and transportation). The consignment auction contract between the Company and the Consignor shall be terminated on the date the Consignor collects the auction item. If the Consignor fails to take away the auction item within the above period, the consignment auction contract between the Company and the Consignor shall be terminated on the expiration date of the above period. If the Consignor still fails to take away the auction item within seven days after the termination of the consignment auction contract, the Company has the right to dispose of the auction item in a manner deemed reasonable by the Company. After deducting all expenses incurred by the Company thereby from the proceeds of disposal, any remaining balance shall be retrieved by the Consignor on its own.

Article 12: Suspension of Auction
The Company has the right to suspend the auction of any auction item at any time before the actual auction if one of the following circumstances occurs:
(1) The Company has objections to the ownership or authenticity of the auction item;
(2) A third party has objections to the ownership or authenticity of the auction item and can provide objection basis materials recognized by the Company, pays the security deposit in accordance with the Company's regulations, and is willing to bear all legal liabilities for the legal consequences and all losses caused by the suspension of the auction activity;
(3) There are objections to the accuracy of the explanations made by the Consignor or the warranties made by the Consignor as described in Article 8 of these Rules;
(4) There is evidence that the Consignor has breached or will breach any provision of these Rules;
(5) There is any other reasonable reason.

Article 13: Withdrawal of Auction Item by Consignor
The Consignor may withdraw its auction item at any time before the Auction Date by sending a written notice to the Company stating the reasons and obtaining the Company's consent. However, if the catalog or other promotional materials including the auction item have already started printing when the auction item is withdrawn, the Consignor shall pay an amount equivalent to twenty percent of the insured amount of the auction item and other various expenses. If the catalog or any other promotional materials have not yet been printed, the Consignor shall still pay an amount equivalent to ten percent of the insured amount of the auction item and other various expenses.
Any disputes or claims arising from the Consignor's withdrawal of the auction item shall be borne by the Consignor itself and have no connection with the Company.

Article 14: Automatic Insurance Coverage
Unless otherwise instructed in writing by the Consignor, after the Consignor signs the consignment auction contract with the Company and delivers the auction item to the Company, all auction items shall be automatically insured by the Company's insurance. The insured amount shall be based on the Reserve Price determined by the Company and the Consignor in the consignment auction contract (for items without a Reserve Price, based on the agreed insured amount of the auction item; if the Reserve Price of the auction item is adjusted, based on the adjusted Reserve Price of the auction item). This insured amount shall only apply to insurance and claims, and shall not constitute a guarantee or warranty by the Company for the value of the auction item, nor shall it mean that the auction item can be sold for an amount equal to the insured amount when auctioned by the Company.

Article 15: Insurance Premium
Unless otherwise agreed between the Consignor and the Company, after the auction is completed, the Consignor shall pay an insurance premium equivalent to one percent of the Hammer Price. If the auction item is not sold, the Consignor shall pay an insurance premium equivalent to one percent of the Reserve Price.

Article 16: Insurance Period
If the auction item is sold, the insurance period shall expire on the seventh day after the Auction Transaction Date or on the date the Purchaser collects the auction item, whichever comes first; if the auction item is not sold, the insurance period shall expire on the seventh day after the date the Consignor receives the notice from the Company informing it to retrieve the auction item.

Article 17: Consignor-Arranged Insurance
If the Consignor informs the Company in writing that the auction item does not need to be insured, the risk shall be borne by the Consignor itself, and the Consignor shall at all times assume the following liabilities (unless otherwise ruled by a court or arbitration institution):
(1) Compensate for any claims or lawsuits filed against the Company by any other right holder for the damage or loss of the auction item;
(2) Bear liability for compensating all losses and expenses incurred by the Company or any right holder due to the damage or loss of the auction item caused by any reason.
(3) Notify any insurer of the auction item of the compensation provisions stated in this Article.

Article 18: Insurance Exclusions
The Company shall not be liable for any damage or loss of the auction item caused by natural wear and tear, inherent defects, internal or potential flaws, changes in the substance itself, spontaneous combustion, self-heating, oxidation, rust, leakage, rodent infestation, insect damage, changes in the atmosphere (climate or temperature), changes in humidity or temperature, changes in normal water levels, or other gradual changes, as well as earthquakes, tsunamis, wars, war-like acts, hostile acts, armed conflicts, terrorist activities, rebellion, coups, strikes, riots, civil commotions, nuclear fission, nuclear fusion, nuclear weapons, nuclear materials, nuclear radiation, and radioactive contamination. The Company shall also not be liable for any damage or loss of book frames or glass, cases, cushions, brackets, mountings, albums, shaft heads, or similar accessories caused by any reason.

Article 19: Insurance Compensation
Any damage or loss of the auction item caused by events or disasters within the scope of the insurance purchased by the Company for the auction item shall be handled in accordance with the relevant insurance laws and regulations of the People's Republic of China. After the Company settles the claim with the insurance company and obtains the insurance compensation, it shall pay the balance of the insurance compensation to the Consignor after deducting the Company's expenses (excluding commissions).

Article 20: Prohibition of Bidding by Consignor
The Consignor shall not bid for the items entrusted by itself to the Company for auction, nor entrust others to bid on its behalf. If this Article is violated, the Consignor shall bear the corresponding legal liabilities and compensate the Company for all losses caused thereby.

Article 21: Commissions and Expenses
Unless otherwise agreed between the Consignor and the Company, the Consignor authorizes the Company to deduct a commission of ten percent of the Hammer Price and other various expenses at the same time. Although the Company is the agent of the Consignor, the Consignor agrees that the Company may collect remuneration and other various expenses from the Purchaser in accordance with the provisions of Article 45 of these Rules.

Article 22: Unsold Handling Fee
If the bid price of an auction item is lower than the Reserve Price and thus not sold, the Consignor authorizes the Company to collect an unsold handling fee calculated at three percent of the Reserve Price from it, and collect other various expenses at the same time.

Article 23: Payment of Net Proceeds
If the Purchaser has paid the full Purchase Price to the Company in accordance with the provisions of Article 46 of these Rules, the Company shall pay the Net Proceeds to the Consignor in Renminbi within thirty-five days after the Auction Transaction Date.

Article 24: Delayed Payment
If the Company still has not received the full Purchase Price from the Purchaser upon the expiration of the payment period specified in Article 46 of these Rules, the Company shall pay the Net Proceeds to the Consignor within seven working days from the date of actually receiving the full Purchase Price paid by the Purchaser (provided that this time limit shall also be after thirty-five days from the Auction Transaction Date).

Article 25: Taxes
If the Net Proceeds obtained by the Consignor are subject to taxation by the government of the People's Republic of China, the Auctioneer shall withhold the taxes payable by the Consignor on the Net Proceeds in accordance with the relevant laws and regulations of the government of the People's Republic of China, and deliver the tax payment certificate to the Consignor after the payment is completed.

Article 26: Assistance in Collecting Overdue Payments

When the Consignor entrusts the Company to auction its items, it shall be deemed to have authorized the Company to recover the corresponding overdue payments from the Purchaser on behalf of the Consignor. If the Purchaser fails to pay the full Purchase Price to the Company within seven days from the Auction Transaction Date (including the transaction date), the Company has the right to recover the remuneration and other various expenses payable by the Purchaser in accordance with the provisions of Article 53 of these Rules, and also has the right to take appropriate measures (including but not limited to resolving through legal channels) to assist the Consignor in collecting the overdue payments from the Purchaser if the Company deems it practically feasible.
The above agreement does not exclude the right of the Consignor to recover the corresponding overdue payments from the Purchaser in person or through any third party, nor does it impose an obligation on the Company to recover the corresponding overdue payments from the Purchaser on behalf of the Consignor under any circumstances. Under no circumstances shall the Company be liable to the Consignor for the Purchaser's failure to pay the Purchase Price.

Article 27: Unsold Auction Items
If the auction item is not sold, the Consignor shall retrieve the auction item within thirty days from the date of receiving the collection notice from the Company (at its own expense for packaging and transportation) and pay the unsold handling fee and other various expenses to the Company. If the Consignor fails to take away the auction item within the above period, the consignment auction contract between the Company and the Consignor shall be terminated on the expiration date of the above period. If the Consignor still fails to take away the auction item within seven days after the termination of the consignment auction contract, the Company has the right to sell the auction item through public auction or other appropriate methods and conditions deemed by the Company. After deducting the unsold handling fee and other various expenses that the Consignor should pay in the first auction and all expenses for reselling the auction item from the proceeds of disposal, any remaining balance shall be retrieved by the Consignor on its own.

Article 28: Decision-Making Power of the Company
The Company has the right to accept the authorization of the Consignor (with fees paid by the Consignor) and decide the following matters according to specific circumstances:
(1) Agree to the payment of the Purchase Price under special payment terms;
(2) Transport, store, and insure the sold auction items;
(3) Resolve claims raised by the Purchaser or the Consignor in accordance with the relevant provisions of these Rules;
(4) Take other necessary measures to collect the overdue payments owed by the Purchaser to the Consignor.

Article 29: Risk Bearing

For auction items that are not put up for auction or not sold, the Consignor shall bear all risks and expenses incurred after the expiration of the time limit specified in these Rules for failing to retrieve the auction item. From the thirtieth day after the date on which the Company sends the notice to the Consignor to retrieve the auction item (including the notice date), or from the time the Consignor collects the auction item in accordance with the provisions of these Rules (whichever comes first), all risks and expenses of the auction items not put up for auction or not sold shall be borne by the Consignor. If the Consignor requests the Company to assist in returning the auction item within the time limit specified in these Rules and the Company agrees, all risks and expenses of the auction item after leaving the designated place of the Company shall be borne by the Consignor. Unless the Consignor specifically indicates and pays the insurance premium in advance, the Company has no obligation to insure the auction item after it leaves the designated place of the Company.
If the Consignor requests the Company to assist in returning its auction item by mail, courier, or other transportation methods through a third party, once the Company delivers the auction item to the postal, courier, transportation department, company, or its employees/branches, it shall be deemed that the Company has returned the auction item and that the Consignor has collected the auction item.

Chapter III Regarding Bidders and Purchasers

Article 30: Auction Catalogs
In the auction activities organized by the Company, to facilitate the participation of Bidders and Consignors in the auction activities, the Company will produce auction catalogs to briefly state the status of the auction items in words and/or pictures. The text, Estimated Prices, pictures in the auction catalogs, and other forms of audio-visual products and promotional materials are for the reference of Bidders only, and may be revised before the auction. They do not constitute a guarantee by the Company for the authenticity, value, color tone, texture, absence of defects, etc., of the auction items.

Article 31: Uncertainty of Catalogs
Due to technical reasons such as printing or photography, if there are discrepancies in the color tone, color, layer, shape, etc., of the auction item in the catalogs and/or any other forms of illustrations, audio-visual products, and promotional materials compared with the original item, the original item shall prevail.
Any descriptions and evaluations made by the Company, its staff, or agents of any auction item in any way (including certificates, catalogs, slide projections, news carriers, online media, etc.) are for reference only and do not constitute any guarantee for the auction item. The Company, its staff, or agents shall not be liable for any inaccuracies or omissions in the above descriptions and evaluations.

Any published catalog references cited in the descriptions of auction items by the Company, its staff, or agents are for the reference of Bidders only. The Company does not provide original or photocopies of catalog reference books and other materials, and reserves the right to revise the cited descriptions.

Article 32: Bidder's Inspection Responsibility
The Company hereby specifically declares that it cannot guarantee the authenticity and/or quality of the auction items and shall not be liable for any warranty against defects of the auction items. The Bidder and/or its agent is responsible for independently understanding the actual status of the relevant auction items and bearing legal responsibility for their own bidding behavior for a certain auction item.
The Company solemnly recommends that Bidders personally inspect the original of the intended auction item by means of appraisal or other methods before the Auction Date to independently judge the authenticity and/or quality of the auction item, and shall not rely on the descriptions in the Company's auction catalogs and other forms of audio-visual products and promotional materials to make decisions.

Article 33: Bidder Registration
If the Bidder is a natural person, he/she shall fill in and sign the registration documents with a valid ID card, passport, or other valid identification documents recognized by the People's Republic of China before the Auction Date; if the Bidder is a legal person or other organization, it shall fill in and sign the registration documents with valid registration documents, legal representative's identification certificate, or legitimate power of attorney before the Auction Date and obtain a bidding paddle.

Article 34: Bidding Paddles

The Company solemnly reminds that the bidding paddle is the only certificate for Bidders to participate in on-site bidding. Bidders shall keep it properly and shall not lend the bidding paddle to others for use. In case of loss, the Bidder shall go through the loss reporting procedures in a written manner recognized by the Company immediately.

Regardless of whether the Bidder's entrustment is accepted, any bidding behavior carried out by the holder of the bidding paddle during the auction activity shall be deemed to be performed by the registered owner of the bidding paddle himself/herself. The Bidder shall be liable for his/her actions unless the registered owner of the bidding paddle has gone through the loss reporting procedures for the bidding paddle in a written manner recognized by the Company and the auctioneer announces the invalidation of the bidding paddle on site.

Article 35: Bidding Security Deposit
To participate in the auction activities of the Company, Bidders shall pay a bidding security deposit before obtaining the bidding paddle. The amount of the bidding security deposit shall be announced by the Company before the Auction Date. If the Bidder fails to purchase the auction item, the security deposit shall be fully refunded to the Bidder without interest within five working days after the end of the auction; if the Bidder purchases the auction item, the security deposit shall be automatically converted into a deposit for the payment of the Purchase Price of the auction item.

Article 36: Right of Selection of the Company
The Company has the right to refuse any person to participate in the auction activities organized by the Company, enter the auction venue, or take photos, record audio, or video at the auction venue at its discretion.

Article 37: Handling of Abnormal Situations
When abnormal situations occur at the auction venue that affect the normal conduct of the auction activity, the Company has the right to take corresponding measures according to the actual situation. If any dispute arises at the auction venue, the Company has the right to coordinate and resolve it.

Article 38: Confirmation of Purchaser's Identity

Bidders must keep their own bidding paddles properly to prevent loss. Bidders shall not lend their own bidding paddles to others for use. Otherwise, the Bidder shall bear full legal responsibility for the bidding behavior of others using their bidding paddles to bid for corresponding auction items.

Article 39: Commissioned Bidding
Bidders shall attend the auction in person. If they are unable to attend, they may entrust the Company to bid on their behalf in writing. The Company has the right to decide whether to accept the above entrustment.

Bidders entrusting the Company to bid shall complete the entrustment procedures within the specified time (no later than twenty-four hours before the Auction Date), submit a written power of attorney for commissioned bidding to the Company, and pay the bidding security deposit at the same time. If a Bidder entrusting the Company to bid needs to revoke the entrustment, he/she shall notify the Company in writing no later than twenty-four hours before the Auction Date.

Article 40: Exemption from Liability for Commissioned Bidding

Since commissioned bidding is a free service provided by the Company to Bidders for transmitting bidding information, the Company and its staff shall not be liable for failed bidding, negligence, fault, or inability to conduct commissioned bidding during the commissioned bidding process.

Article 41: Principle of Priority of Earlier Entrustment
If two or more Bidders entrusting the Company to bid offer the same entrusted price for the same auction item and the auction item is finally sold at that price by the fall of the hammer, the Company shall take the Bidder who first submitted the power of attorney for commissioned bidding as the Purchaser of the auction item.

Article 42: Decision-Making Power of the Auctioneer
The auctioneer has the right to represent the Company to increase or decrease the bidding increments, refuse any bid, and re-auction the auction item in case of disputes.

Article 43: Image Displays and Currency Exchange Displays
To facilitate Bidders, the Company may use image projection or other forms of displays during the auction, and the content displayed is for reference only. The amount, auction item number, auction item picture, or reference foreign exchange amount displayed on the image projection or other forms of displays may contain errors, and the Company shall not be liable for any losses caused by such errors.

Article 44: Auction Transaction
When the highest bid is confirmed by the auctioneer by dropping the gavel or any other public indication of acceptance, the Bidder succeeds in bidding, which indicates that the Bidder becomes the Purchaser of the auction item. The Purchaser shall sign the transaction confirmation/auction record.

Article 45: Commissions and Expenses
After the Bidder succeeds in bidding, he/she becomes the Purchaser of the auction item. The Purchaser shall pay the Company a remuneration equivalent to fifteen percent of the Hammer Price, and also pay other various expenses. The Purchaser acknowledges that the Company may collect commissions and other various expenses from the Consignor in accordance with the provisions of Article 21 of these Rules.

Article 46: Payment Time
After the auction transaction, the Purchaser shall pay the full Purchase Price to the Company and collect the auction item within thirty days from the Auction Transaction Date. If packaging and transportation fees, transportation insurance fees, exit inspection fees, etc., are involved, the Purchaser shall pay them together.

Article 47: Currency of Payment
All payments shall be made in the currency designated by the Company. If the Purchaser makes payment in a currency other than the one designated by the Company, the payment shall be converted at the exchange rate agreed between the Purchaser and the Company or the exchange rate between Renminbi and that currency announced by the People's Bank of China on the working day prior to the Purchaser's payment date. All bank handling fees, commissions, or other expenses incurred by the Company in converting the foreign currency paid by the Purchaser into Renminbi shall be borne by the Purchaser.

Article 48: Transfer of Ownership
After the Purchaser pays the full Purchase Price, he/she shall obtain the ownership of the auction item.

Article 49: Transfer of Risk
After the successful bid, the risk of the auction item shall be borne by the Purchaser himself/herself from the occurrence of any of the following circumstances (whichever occurs first):
(1) The Purchaser collects the purchased auction item; or
(2) The Purchaser pays the full Purchase Price for the auction item to the Company; or
(3) Seven days have elapsed since the Auction Transaction Date.

Article 50: Collection of Auction Items
The Purchaser must collect the purchased auction item from the Company's registered address or other places designated by the Company within thirty days from the Auction Transaction Date. If the Purchaser fails to collect the auction item within thirty days from the Auction Transaction Date, all transportation, storage, and insurance fees for the auction item after the overdue period shall be borne by the Purchaser, and the Purchaser shall be fully responsible for the purchased auction item. Even if the auction item is still kept by the Company or other agents on behalf of the Purchaser, the Company, its staff, or agents shall not be liable for any damage or loss of the auction item caused by any reason.

Article 51: Packaging and Transportation
If the staff of the Company provides packaging and handling services for the purchased auction item at the request of the Purchaser, such services shall only be deemed as a service provided by the Company to the Purchaser. The Company may decide whether to provide such services at its discretion, and any loss arising therefrom shall be borne by the Purchaser himself/herself. Under no circumstances shall the Company be liable for any damage to glass or frames, cases, cushions, brackets, mountings, albums, shaft heads, or similar accessories caused by any reason. In addition, the Company shall not be liable for any errors, omissions, damage, or loss caused by the packaging companies and shipping companies recommended by the Company to the Purchaser.

Article 52: Export of Auction Items
For auction items that are restricted from being taken out of the territory of the People's Republic of China in accordance with the provisions of the Cultural Relic Protection Law of the People's Republic of China and other laws and regulations, the Company will indicate such restriction in the auction catalog or at the auction venue.
For auction items that are permitted to be taken out of the territory of the People's Republic of China in accordance with the provisions of the Cultural Relic Protection Law of the People's Republic of China and other laws and regulations, the Purchaser shall go through the exit formalities in accordance with the relevant provisions of the People's Republic of China on his/her own.

Article 53: Remedies for Non-Payment
If the Purchaser fails to pay the full amount in accordance with the provisions of Article 46 of these Rules, the Company has the right to take one or more of the following measures:
(1) After the auction transaction, if the Purchaser fails to pay the Purchase Price within the specified time, the bidding security deposit shall not be refunded, and the Purchaser shall also bear the corresponding liabilities in accordance with the provisions of these Rules; if the Purchaser purchases multiple auction items with the same bidding paddle and fails to pay the Purchase Price for any of the auction items within the specified time after the auction transaction, all bidding security deposits shall not be refunded, and the Purchaser shall also bear the corresponding liabilities in accordance with the provisions of these Rules;
(2) Within thirty days from the Auction Transaction Date, if the Purchaser fails to pay the full Purchase Price to the Company, the Company has the right to entrust a third-party institution to demand the full or partial overdue Purchase Price from the Purchaser on its behalf;
(3) Within thirty days from the Auction Transaction Date, if the Purchaser still fails to pay the full Purchase Price, the Company shall charge interest on the unpaid portion of the Purchaser at a daily rate of 0.03% starting from the thirty-first day after the Auction Transaction Date until the Purchaser pays the full amount, unless otherwise agreed between the Purchaser and the Company;
(4) File a lawsuit against the Purchaser to claim compensation for all losses caused by the Purchaser's breach of contract, including interest losses caused by the Purchaser's delayed payment or refusal to pay;
(5) Retain the auction item or any other auction items sold by the Company to the same Purchaser, as well as any other property or property rights of the Purchaser in the possession of the Company for any reason. All expenses and/or risks arising during the retention period shall be borne by the Purchaser. If the Purchaser fails to perform all its relevant obligations within the time limit specified by the Company, the Company has the right to dispose of the retained property in accordance with the relevant laws and regulations of the People's Republic of China. If the proceeds from the disposal of the retained property are insufficient to cover all the amounts payable by the Purchaser to the Company, the Company has the right to pursue further recovery;(6) Within ninety days from the Auction Transaction Date, if the Purchaser still fails to pay the full Purchase Price to the Company, the Company has the right to decide whether to rescind or agree to the Consignor's rescission of the transaction of the auction item or any other auction items sold to the same Purchaser in the same or any other auction, and reserve the right to claim compensation for all losses suffered by the Company due to the rescission of such transaction or any other transaction;(7) With the consent of the Consignor, the Company may re-auction or sell the auction item in other ways in accordance with the provisions of these Rules. In addition to paying the remuneration/commission and other various expenses that the Purchaser and the Consignor should pay in the first auction and bearing all expenses for re-auctioning or selling the auction item in other ways, the original Purchaser shall make up the difference if the proceeds from the re-auction or other sale of the auction item are lower than the original auction price.

Article 54: Remedies for Delayed Collection of Auction Items
If the Purchaser fails to collect the purchased auction item within the time limit specified in Article 50 of these Rules, the Company has the right to take one or more of the following measures:
(1) Store the auction item in the Company or other places, and all expenses and/or risks arising therefrom shall be borne by the Purchaser. The Purchaser may collect the auction item only after paying the full Purchase Price (at its own expense for packaging and transportation);
(2) The Purchaser shall bear all risks and expenses incurred after the expiration of the time limit specified in these Rules for failing to collect the relevant auction item. If the Purchaser still fails to collect the auction item within ninety days from the transaction date, the Company has the right to sell the auction item through public auction or other appropriate methods and conditions deemed by the Company. After deducting the storage fees, insurance fees, transportation fees, notarization fees advanced by the Company and all expenses incurred by the Company for disposing of the auction item from the proceeds of disposal, any remaining balance shall be retrieved by the Consignor on its own without interest.

Chapter IV Others

Article 55: Confidentiality Obligation
The Company is obligated to keep confidential the information of Consignors, Bidders, and Purchasers (unless otherwise stipulated by the laws of the People's Republic of China) and protect the legitimate rights and interests of Consignors, Bidders, Purchasers, and the Company from infringement in accordance with the laws of the People's Republic of China and these Rules.

Article 56: Right of Appraisal
When the Company deems it necessary, it may appraise the auction item. If the appraisal result is inconsistent with the status of the auction item stated in the consignment auction contract, the Company has the right to modify or terminate the consignment auction contract.

Article 57: Copyright
The Company has the right to independently produce photos, illustrations, catalogs, or other forms of audio-visual products and promotional materials for any items entrusted by the Consignor to the Company for auction, and shall legally enjoy the copyright of the above-mentioned photos, illustrations, catalogs, or other forms of audio-visual products and promotional materials, and have the right to use them in accordance with the law.

Article 58: Exemption from Liability
As the agent of the Consignor, the Company shall not be liable for any breach of contract by the Consignor or the Purchaser. In the event of a breach of contract by the Consignor or the Purchaser, the Company has the right to decide to disclose the name and address of the other party to the Consignor or the Purchaser at its own discretion, so that the injured party can obtain compensation through legal proceedings. However, before disclosing such information to the Consignor or the Purchaser, the Company shall take reasonable steps to notify the party whose information is to be disclosed.

Article 59: Liability for Compensation for Invalid Auction
If the auction transaction is invalid due to the fault of the relevant party, the relevant party shall bear the liability for compensation to make up for all losses of the Company. The compensation standard shall be based on the expected benefits that the Company would have obtained if the auction transaction had been valid.

Article 60: Notices
Both Bidders and Consignors shall inform the Company of their fixed and valid contact addresses and methods, and shall immediately notify the Company in writing of any changes. The notices mentioned in these Rules refer only to written notices sent by mail or fax. If sent by mail, once the Company delivers the notice to the postal department, it shall be deemed that the Company has sent the notice, and the addressee shall be deemed to have received the notice in accordance with normal postal procedures. If sent by fax, the date of fax transmission shall be the date on which the addressee receives the notice.

Article 61: Severability
If any clause or part of these Rules is deemed invalid, illegal, or unenforceable by a competent authority for any reason, the other clauses or parts of these Rules shall remain valid and must be observed and implemented by the relevant parties.

Article 62: Dispute Resolution
All disputes arising from or in connection with participating in the auction activities of the Company in accordance with these Rules shall be submitted to the people's court where the Company is registered for litigation. The governing law for resolving such disputes shall be the laws of the People's Republic of China.

Article 63: Language Versions
These Rules are formulated in Chinese, and the English version is for reference only. In case of any inconsistency between the Chinese version and the English version, the Chinese version shall prevail.

Article 64: Effective Date
These Rules shall come into force on January 4, 2013.

Article 65: Right of Interpretation
The right of interpretation of these Rules shall belong to Guangdong Chongzheng Auction Co., Ltd.