AUCTION RULES OF BEIJING YONGLE INTERNATIONAL AUCTION CO., LTD.

Chapter I General Provisions

Article I Basis for Formulation

The Rules is formulated on the basis of the Auction Law of the People's Republic of China and other relevant laws and regulations and with reference to the standard international practice.

Article II Interpretation

In interpretation of each clause of the Rules, the following words are defined as:

(I) "The Company" refers to Beijing Yongle International Auction Co., Ltd.;

(II) "Bidder" refers to a natural person, legal person or other organization that has full capacity for civil conduct according to Chinese laws, who has registered in the auction activities held by the Company and gone through necessary formalities to participate in bidding for auction items. A bidder shall have the qualifications to buy and sell the auction items prescribed by laws and regulations or meet the conditions or qualifications of being a bidder. In the Rules, unless otherwise stated or as the context requires, the Bidder shall include the bidder' agent;

(III) "Buyer" refers to a bidder who purchases an auction item at the highest price in the auction activities held by the Company;

(IV) "Client" refers to a natural person, legal person or other organization that authorizes the Company to auction the items within the scope stipulated in the Rules.For the purpose of the Rules, unless otherwise stated or as the context requires, the Client shall include the client's agent;

(V) "Auction items" means specific items or property rights authorized by the Client to the Company for auction, especially items numbered and indicated in any catalogue.

Note: Auction items are also called objects of auction or lots;

(VI) "Auction activity" means the trading activity of transferring the specific articles or property rights through public bidding to the bidder that offers the highest price.

(VII) "Auction date" means the date on which the auction is officially conducted as announced by the Company in a certain auction activity. If the released opening date is inconsistent with the actual opening date of the auction, the actual opening date of the auction shall prevail;

(VIII) "Auction transaction date" refers to the date when the auctioneer confirms that any auction transaction is concluded by knocking the gavel or any other way of public confirmation;

(IX) "Hammer price" refers to the price at which the auction item is sold to the buyer by the auctioneer's knocking the gavel or any other way of public confirmation;

(X) "Sale proceeds" refers to the net amount paid to the client, which is the balance of the hammer price minus the commission calculated at the rate, auction charges and other amounts payable to the Company by the client;

(XI) "Purchase price" refers to the total price that the buyer shall pay to purchase the auction item, including the hammer price, all the compensation, auction charge that the buyer shall pay as well as all the costs arising from the buyer's nonperforming obligations;

(XII) "Auction charge" refers to the fees charged by the Company for the insurance, packaging, handling, storage, mounting, framing, special installation, identification and publicity of the auction items, as well as the production of auction catalogues and various forms of publicity materials, and other fees charged in accordance with relevant laws, regulations or the Rules;

(XIII) "Reserve price" refers to the lowest selling price of the auction item proposed and determined in writing by the client after consultation with the Company;

(XIV) "Reference price" refers to the estimated selling price of the auction item in the catalogue or marked with other introductory words, which is not the actual selling price.

Article III Scope of application

The Company shall organize and conduct auction activities within the scope permitted by the laws and policies of the People's Republic of China. All parties 

participating in the auction activities organized by the Company, including Beijing Yongle, client, bidder, buyer and other relevant parties (including but not limited to the agent of the client, bidder and buyer), shall be deemed to have fully accepted the provisions of the Rules, and been bound by the Rules. Moreover, they shall be deemed to have abode by the provisions of the Rules in the auction activities organized by the Company, enjoyed the rights and assumed the obligations stipulated in the Rules. Bidders participating in the auction organized by the Company shall be deemed to have fully accepted the Rules, whether they are present in person or by their agents, whether they participate in bidding by putting up the bidding paddle in the auction, or in writing, by telephone or by any other means.

All disputes arising between the parties involved in the auction organized by the Company shall be settled in accordance with the provisions of the Rules.

Article IV Warranty of Defects 

The Company shall not be liable for the warranty of the authenticity and quality of the auction items. Any description, explanation and opinions on the auction items are for the reference of bidders or their agents only, and do not constitute a guarantee or warranty for the authenticity and quality of the auction items under any circumstances.

All auction items are sold in the state at the time of auction. Therefore, bidders or their agents shall personally or authorize experts to examine the original auction items.

Any bidder's participation in the auction activities organized by the Company

shall be deemed that the bidder has taken comprehensive inspection and evaluation to the authenticity, quality and preservation status of the auction items to be auctioned, and fully recognized the current situation and value of the auction items without objection. The bidder's participation in bidding shows that the bidder is willing to bear all kinds of risks that may be encountered, and has given up the right to object to the authenticity, quality and preservation of the auction items. When 

receiving or taking the auction item, the buyer shall take careful verification and inspection. After receiving or taking the auction item, the buyer shall be deemed to have inspected the auction item, and the buyer shall confirm and agree that the auction item will not be returned.

Article V Special tips

It is specially suggested that in the auction activity held by the Company, when the bidder's bid price is confirmed by the auctioneer's knocking the gavel or any other way of public confirmation, it means that the sales contract relationship on the auction item has been legally effective, and the bidder will become the buyer of the auction item. Beijing Yongle, the client and the buyer shall admit the fact that the auction item has been sold and the transaction is concluded, and shall enjoy the rights and assume the obligations stipulated by law and the Rules. If either party fails to perform its obligations, it shall bear corresponding legal responsibilities. All the clients, bidders, buyers and other relevant parties participating in the auction activities of the Company should carefully read and abide by the Rules, and be responsible for their participation in the auction activities of the Company. Any loss or liability arising from the failure to read the Rules carefully shall be borne by the actor himself. The Company may amend the Rules by posting a notice at the auction venue or by making an announcement by the auctioneer at the auction.

Chapter II About the Client

Article VI Authorization procedure

When the client authorizes the Company to auction his articles:

(I) If the client is a natural person, he must hold a valid ID card and sign an auction authorization contract with the Company;

(II) If the client is a legal person or other organization, it shall hold a valid registration certificate, legal representative's identity certificate or legal authorization certificate, and sign an auction authorization contract with the Company.

(III) When the client signs the auction authorization contract with the Company, it means, the Company is automatically authorized to auction the objects of auction on the spot or through the network platform designated by the Company, and the Company is authorized to display the objects of auction in various ways related to the auction, including but not limited to printing, making auction catalogues and various publicity materials, touring exhibitions and other forms of publicity.

Article VII Agent of the client

If the agent of the client authorizes the Company to auction articles, he shall issue relevant authorization certificates to the Company. Including:

(I) If the agent of the client is a natural person, he must hold a valid identity certificate;

(ii) If the agent of the client is a legal person or other organization, he must hold a valid registration certificate and the identity certificate of the legal representative;

(iii) A letter of authorization made through legal procedures. The Company shall have the right to check the above documents in a legal way.

Article VIII Guarantee of the client

For the auction items the client authorizes the Company to auction, the client irrevocably guarantees to the Company and the buyer the following:

(I) It has absolute ownership or legal right to dispose of the auction items, and the auction of the auction items will not infringe on the legitimate rights and interests of any third party (including copyright rights and interests), nor will it violate the provisions of relevant laws and regulations;

(II) It has made comprehensive and detailed disclosure and explanation to the Company on the source and defects of the auction item to the best of its knowledge, without any concealment or fiction;

(III) If it violates the above guarantee, and the actual owner of the auction item or any third party claiming rights lodges a claim or lawsuit, resulting in losses to the Company and/or the buyer, the client shall be responsible for compensating the Company and/or the buyer for all losses thus suffered, and shall bear all expenses and costs incurred therefrom.

Article IX Reserve price

Except for the auction items with no reserve price agreed between the Company and the client, all auction items shall have reserve price. The reserve price shall be determined in writing through negotiation between the Company and the client. Once the reserve price is determined by both parties, its change must be approved by the other party in advance. After the abortive auction of the object of auction authorized by the client, the auctioneer shall have the right to sell the auction item at its reserve price after the auction. The client shall pay commissions and auction charges to the auctioneer. In no case shall the Company be liable for the failure of an auction item to reach the reserve price at an auction held by the Company.

Article X The decision-making power of the Company

The Company shall have full decision-making power over the following matters:

(I) Make any content description and/or evaluation of any auction item through the auction catalogue and/or news media and/or other carriers;

(II) Whether any expert opinions should be consulted;

(III) Arrangements for illustrations of auction items in catalogues, exhibitions of auction items and other forms of publicity and promotion activities of auction items, and standards for fees payable;

(IV) Whether an auction item is suitable for auction by the Company;

(V) Auction date, auction place, auction conditions and auction methods, etc.

Article XI Auction items are not auctioned

After the client signed the auction authorization contract with the Company and delivered the auction items to the Company, if the Company believes that an auction item is not suitable for auction by the Company on reasonable grounds, the client shall retrieve the auction item within 30 days from the date of notification issued by the 

Company (at his own expense for packaging and handling), and the auction authorization contract between the Company and the client shall be terminated from the date when the client receives the auction items. If the client fails to take away the auction items within the above time limit, the auction authorization contract between the Company and the client will be terminated on the expiration date of the above time limit. 

Article XII Suspension of Auction

In case of any of the following circumstances, the Company shall have the right to suspend the auction of any auction item at any time before the actual auction:

(I) The Company has objections to the ownership or authenticity of the auction items;

(II) The third party has objections to the ownership or authenticity of the auction items and can provide relevant evidential materials on which the objection is based and pay the guarantee money in accordance with the regulations of the Company. In addition, it is willing to bear corresponding responsibilities for the legal consequences and all losses caused by the suspension of auction activities;

(III) The Company has objections to the explanations made by the client or the accuracy of the client's guarantee stated in Article VIII of the Rules;

(IV) There is evidence showing that the client has violated or will violate any provision of the Rules;

Article XIII The client's withdrawing the auction items

At any time before the auction date, the client may withdraw its auction items after giving written notice to the Company and explaining the reasons. However, when the auction item is withdrawn, if the auction item has been listed in the auction catalogue and printed, or the relevant publicity materials have been produced, or any other form of publicity (including tour exhibition) has been carried out, the client shall pay 20% of the reserve price of the auction item as well as the auction charge to the Company; If the catalogue of related auction items has not been printed, or the related publicity materials have not been produced, or any other publicity has not been carried out, the client shall also 

pay 10% of the reserve price of the auction item as well as the auction charge. If the client fails to pay the above money and auction charges within the time limit, the Company shall have a lien on the auction item. Any dispute or claim arising from the withdrawal of the auction items by the client shall be borne by the client himself and has nothing to do with the Company.

Article XIV The auction items fail to be sold

The auction item's failure to be sold includes but not limited to the situation that the auction item has not been auctioned, the auction has been suspended, the auction has not been sold (meaning that the auction price of the auction item is lower than the reserve price and the transaction has not been concluded), and the transaction is cancelled due to the buyer's default on payment, etc.

If the auction item fails to be sold, the client hereby authorizes the Company to invite investment for the auction item within 35 days from the end of the auction and sell it at a price not lower than the reserve price or negotiated price (the sale method includes the online platform auction designated by the Company). If it is finally sold, the client agrees to pay commissions and auction charges to the Company according to the transaction cost of the auction item. If the auction item is not sold or the transaction is not concluded in the end, the client shall retrieve the auction item within 30 days from the date of receiving the notice from the Company (the packaging and handling expenses shall be at his own expense) and pay the unsold handling fee and auction charge to the Company. For each overdue day, the auctioneer shall have the right to charge an additional site occupation fee of 3/10000 of the reserve price. Moreover, the Company shall have the right to sell the auction item by public auction or other means of sale on such terms as the Company thinks fit, and have the right to pay the balance to the client after deducting from the sale proceeds the unsold handling fees and auction charges payable by the client in the first auction and all fees for the re-auction of the auction item. 

Article XV Automatically insured

Unless otherwise specified by the client in writing, all the auction items will be automatically insured under the insurance designated by the Company after the client enters into an auction authorization contract with the Company and delivers the auction items to the Company, and the insured amount shall be subject to the reserve price determined in the auction authorization contract signed by the Company and the client (if there is no reserve price, the agreed insurance amount of the auction item shall prevail; If the auction reserve price is adjusted, the original reserve price of the auction item shall prevail). This insured amount is only applicable to insurance and claims, and is not the guarantee or warranty of the value of the auction item by the Company, nor does it mean that the auction item can be sold for the same amount as the insured amount.

Article XVI Insurance premium

After the auction transaction is concluded, the client shall pay an insurance premium equivalent to 1% of the hammer price unless otherwise agreed between the client and the Company.

If the auction item is not sold, the client shall also pay an insurance premium equivalent to 1% of the reserve price.

Article XVII During the insurance period

If the auction item is sold, the insurance period shall end on the seventh day (including the transaction date) from the auction transaction date or the date when the buyer receives the auction item (whichever is earlier).

If the auction item is not auctioned, the insurance period shall expire on the 30th day (including the notice date) from the date when the Company issues the notice to take back the auction item or the date when the client takes back the auction item (whichever is earlier).

If the auction item is not sold, the insurance period shall expire on the 30th day (including the notice date) from the date when the Company issues the notice to take back the auction item or the date when the client takes back the auction item (whichever is earlier). Article XVIII The client's arranging insurance. 

If the client informs the Company in writing that the Company does not need to insure the auction items, the risk shall be borne by the client himself. At the same time, the client shall bear the following responsibilities at any time (unless otherwise ruled by the arbitration institution):

(I) Compensate for any claim or lawsuit filed by any other obligee against the Company for the damage or loss of the auction items;

(II) Compensate the Company and/or any other party for all losses suffered and all expenses incurred due to damage or loss of auction items for any reason.

(III) Notify any insurer of the auction item of the compensation provisions mentioned in this article.

Article XIX Exemption of insurance liability.

The losses or expenses caused by natural wear, inherent defects, inherent or potential defects, changes in substances themselves, spontaneous combustion, self-heating, oxidation, rust, erosion, leakage, rat bites, moth bites, insect bites, insect pests, sweat stains, water stains, changes in atmosphere (climate or temperature), changes in humidity or temperature, changes in normal water level or other gradual changes; Fire or robbery and theft caused by typhoons, hurricanes, tornadoes, volcanic eruptions, earthquakes, tsunamis, and simultaneously by the aforementioned dangerous accidents; Any damage or loss of auction items caused by force majeure such as war, hostile acts, military acts, armed conflicts, terrorist activities, coups, strikes, social unrest and riots, and nuclear radiation, nuclear explosion, nuclear pollution and other radioactive pollution, as well as the damage or loss of book frame or glass, pocket box, bottom pad, bracket, mounting, insertion book, spindle nose or similar appendages caused by any reason, are not covered by insurance claims.

If the scope of liability exemption agreed in the policy of the insurance company designated by the Company is inconsistent with the above-mentioned scope of insurance exemption in the Rules, the policy of the insurance company designated by the Company shall prevail.

Article XX Insurance compensation

Any damage or loss of auction items caused by events or disasters covered by the insurance purchased by the Company for auction items shall be handled in accordance with the relevant insurance laws and regulations of the People's Republic of China. The insurance company shall make claims settlement to the Company, and the Company will pay the balance to the client after deducting the auction charges and the money payable by the client to the Company from the insurance indemnities.

In any case, the Company shall not be liable to the client and or any third party due to the insurance company's refusal to settle the claim.

Article XXI Bidding prohibition

The client shall not bid for the items that he authorizes the Company to auction, nor shall he authorize others to bid on his behalf. In case of violation of this Article, the client shall bear the corresponding legal liability and compensate the Company for all losses caused thereto.

Article XXII Commission and fees

Unless otherwise agreed between the client and the Company, the client shall authorize the Company to deduct the commission of 10% of the hammer price and the auction charge at the same time. Notwithstanding that the Company is the agent of the client, the client agrees that the Company may charge remuneration and auction fees from the buyer in accordance with Article XLVII of the Rules.

Article XXIII Unsold service fee

If the auction item is not sold, the client authorizes the Company to charge the unsold service fee and auction charge from it.

The standard of unsold service fee shall be 3% of the reserve price of the auction item.

Article XXIV Payment of sale proceeds

If the buyer has paid the full purchase price to the Company in accordance with Article XLVIII of the Rules, the Company shall pay the sale proceeds to the client in RMB yuan 35 days after the transaction date of the auction.

Article XXV Delayed payment

If the payment period stipulated in Article XLVIII of the Rules expires and the Company has not received all the purchase price from the buyer, the Company will pay the sale proceeds to the client within seven working days from the date of receiving all the purchase price paid by the buyer.

Article XXVI Taxes

The client shall pay taxes to the government for the sale proceeds. If the relevant laws stipulate that the Company has the obligation to withhold and remit tax, the Company shall implement in accordance with the laws and regulations, and the client shall assist in handling all formalities and bear the corresponding taxes and fees.

Article XXVII Assistance in charging arrears

When the client authorizes the Company to auction its articles, it is deemed to have authorized the Company to recover the corresponding arrears from the buyer on behalf of the client. If the buyer fails to pay all the purchase price to the Company within seven days from the auction transaction date (including the transaction date), in addition to the right to recover the remuneration and auction charges payable from the buyer in accordance with Article LV of the Rules, the Company shall also have the right to take appropriate measures (including but not limited to legal settlement) to assist the client in collecting the arrears from the buyer. The above agreement does not exclude the right of the client to recover the corresponding arrears from the buyer in person or by entrusting any third party, nor does it give the Company the obligation to recover the corresponding arrears from the buyer on behalf of the client under any circumstances. Under no circumstances shall the Company be liable to the client for the buyer's failure to pay the purchase price.

Article XXVIII The Company's right to decide

The Company shall have the right to accept the authorization of the client (the client shall pay the fees) and decide the following matters according to the specific circumstances:

(I) Agree to pay the purchase price on special payment terms;

(II) Move, store and insure the sold auction items;

(III) Settle the claim made by the buyer or the client in accordance with the relevant provisions of the Rules;

(IV) Take other necessary measures to collect the money owed by the buyer to the client.

Article XXIX Risk bearing

Whether the client withdraws the auction item or the auction item is not sold, the client shall be responsible for all risks and expenses incurred after the time limit stipulated in the Rules.

After 30 days from the date when the Company issues the notice to the client to take back the auction item (including the notice date), or from the time when the client takes back the auction item as agreed in the Rules (whichever comes first), all risks and expenses of the auction item shall be borne by the client.

If the client requests the Company to assist him in returning the auction items within the time limit stipulated in the 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 client. Unless it is specially indicated by the client and the insurance premium is paid in advance, the Company shall have no obligation to insure the auction items after leaving the place designated by the Company.

If the client requests the assistance of the Company to return its auction items by mail, express delivery or other means of transportation through a third party, once the auction items are delivered by the Company to the mail, express, transportation department, the client or its employees or its branches, it shall be deemed that the auction items have been returned by the Company and the client shall be deemed to have received the auction items, and the risk of damage or loss of the auction items shall be borne by the client.

Chapter III About Bidders and Buyers

Article XXX Catalogue of auction items

In order to facilitate bidders and clients to participate in the auction activities organized by the Company, the Company has made a catalogue of auction items, to briefly introduce the status of auction items in the form of words and/or pictures. The text, reference price, pictures or other forms of video products and publicity materials in the catalogue of auction items shall be only for the reference of bidders and can be revised before auction, and do not indicate the guarantee made by the Company for the authenticity, value, color tone, texture and defects of the auction items.

Article XXXI Uncertainty of catalogue

If there is any error in the color tone, color, layer and shape between the auction item in the catalogue and/or any other form of icons, video products and publicity materials and the original item due to technical reasons such as printing or photography, the original item shall prevail. The introduction and evaluation of any auction item by the Company, its staff or its agents in any way (including certificates, catalogues, slide projection, news clips, etc.) are reference opinions and do not constitute any

guarantee for the auction items. The Company, its staff or its agents shall not be liable for any inaccuracies or omissions in the above introductions and evaluations.

Article XXXII Bidders' responsibility for examination

The Company shall not be responsible for warranting the authenticity and/or quality of the auction items. The bidder and/or its agents shall have the responsibility to know the actual situation of the auction items by itself and bear legal responsibilities for the bidding for a certain auction item. The Company solemnly suggests that the bidder should personally examine the original items to be auctioned by appraisal or other means before the auction date, and judge by himself whether the items are consistent with the descriptions of the auction catalogue and other forms of video products and publicity materials by the Company, instead of making decisions based on the descriptions of the catalogue, video products and publicity materials.

Article XXXIII Registration of bidders

If the bidder is a natural person, he shall fill in and sign the registration document with valid identity certificate before the auction day; If the bidder is a legal person or other organization, it shall fill in and sign the registration document and receive the bidding paddle with the valid registration certificate, legal representative identity certificate or legal authorization procedures before the auction date, otherwise it shall not be regarded as a formal bidder.

Article XXXIV Deposit

The bidder who participates in the auction activity of the Company shall pay the deposit before receiving the bidding paddle. The specific amount of the deposit shall be announced by the Company before the auction date. Within five working days after the end of the auction, if the bidder fails to purchase the auction item, the above deposit will be returned to the bidder in full without interest; If the bidder buys the auction item, it will be offset as part of the purchase price. If there is any balance, it will be returned together when the bidder receives the auction item.

The deposit is the guarantee money paid by the bidder to the Company before the auction. The Company shall have the right to decide on the collection of deposits, collection standard, disposal after default and other related matters.

Article XXXV Option of the Company

The Company may forbid anyone from participating in auction, admission to the premises, taking a picture, making a sound recording or making a video recording during auction, as the case maybe.

Article XXXVI Handling of abnormal situations

In case of abnormality at the auction site, the Company shall have the right to make an emergency response. In case of any dispute at the auction site, the Company shall have the right to coordinate and solve it.

Article XXXVII Identification of the buyer

The bidder must keep the bidding paddle well and not to lose it. The bidder shall not lend the bidding paddle to others for use. Otherwise, the bidder shall bear all legal responsibilities for others' using its bidding paddle to bid for the corresponding lots.

The behaviors of the bidder who hold the bidding 

paddle to participate in bidding, sign the transaction confirmation, sign the auction record and other documents in the auction activity shall be regarded as the acts of the bidder with bidding paddle, and the bidder shall bear all legal responsibilities.

Article XXXVIII Authorization of bidding

Usually, the bidder should attend the auction in person. If the bidder cannot attend, he can authorize the Company in writing to bid on his behalf. The Company shall have the right to decide whether to accept the above authorization or not.

Article XXXIX Formalities of authorization

The bidder who authorizes the Company to bid shall go through the formalities of authorization within the specified time (no later than 24 hours before the auction date), issue a written authorization letter to the Company, and pay the deposit at the same time according to Article XXXIV of the Rules.

Article XL Cancellation of authorization

The bidder who authorizes the Company to bid shall notify the Company in writing no later than 24 hours before the auction date if he needs to cancel the authorization.

Article XLI Exemption from liability for authorization of bidding

Since the authorization of bidding is a free service provided by the Company for bidders who cannot attend the bidding in person under special circumstances, the Company and its staff will not bear any responsibility for unsuccessful bidding or negligence, fault or inability to bid on their behalf during the bidding process.

Article XLII Principle of prior authorization

If two or more bidders authorize the Company to bid for the same auction item at the same entrusted price and the bidding is successful, then the bidder who first sends the letter of authorization to the Company shall be the buyer of the auction item.

Article XLIII The decision-making power of auctioneer

The auctioneer shall have the right to raise or lower the bidding steps or reject any bidding on behalf of the Company. When there is a dispute, the auctioneer shall  have the right to re-auction the auction items.

Article XLIV Video display panel and currency exchange display panel

For the convenience of bidders, the Company may use image projection or other forms of display panel during the auction, and the contents shown are for reference only.

The Company shall not be liable for any errors that may occur in the amount, the number of the auction item, the picture of the auction item or the reference foreign exchange amount shown on the display panel, and any losses arising therefrom.

Article XLV The auction transaction is concluded

When the highest bid price of a bidder is confirmed by the auctioneer by knocking the gavel or any other way of public confirmation, it indicates that transaction contract for the auction item has been reached between the bidder and the client.

Article XLVI Auction record

The Company shall make the auction record when conducting an auction, which shall be signed by the auctioneer and the recorder. In the auction held by the Company, the buyer shall sign the transaction confirmation after the highest bid price has been confirmed by the auctioneer by knocking the gavel or any other way of public confirmation.

Article XLVII Remuneration and fees

After successful bidding, the bidder shall become the buyer of the auction item. The buyer shall pay the Company the remuneration equivalent to 15% of the hammer price, and shall also pay the auction charge after the auction transaction is concluded.

The buyer acknowledges that the Company may charge commissions and auction fees from the client in accordance with Article XXII of the Rules.

Article XLVIII Time of payment

After the auction transaction is concluded, the buyer shall pay off the purchase price and receive the auction item in one lump sum within seven days from the auction transaction date (including the transaction date), otherwise he shall bear the liability for breach of contract.

Article XLIX Payment currency

All the money shall be paid in the currency designated by the Company. If the buyer pays in a currency other than the one designated by the Company, it shall be converted at the exchange rate agreed between the buyer and the Company or at the exchange rate between RMB and that currency announced by the People's Bank of China one working day before the buyer's payment date. All bank charges, commissions or other fees incurred by the Company in converting the foreign currency in that currency paid by the buyer into RMB shall be borne by the buyer.

Article L Transfer of ownership

After the buyer pays the purchase price in full, he can obtain the ownership of the auction item.

Article LI Risk transfer

After successful bidding, the risk of the auction item shall be borne by the buyer after any of the following circumstances (whichever occurs earlier):

(I) The buyer receives the purchased auction item;

(II) The buyer pays the Company all the purchase price of the auction item;

(III) It expires seven days after the auction transaction date (including the transaction date).

Article LII Receipt of the auction item

The buyer shall receive the purchased auction item at the place designated by the Company within seven days from the auction transaction date (including the transaction date). If the buyer fails to receive the auction item within the time limit, the buyer shall bear the handling, storage and other auction expenses of the auction item due to overdue. Also, the buyer shall bear the risk of damage or loss of the purchased auction item. Even if the auction item is still kept by the Company or other agents, the Company and its staff or agents shall not be responsible for the damage or loss of the auction item caused by any reason.

Article LIII Packaging and handling

The Company shall have the right to decide whether to accept the buyer's request and provide packaging and handling services on its behalf. If the staff of the Company pack and handle the purchased auction items on behalf of the buyer at the request of the buyer, the above packing and handling shall only be regarded as the services provided by the Company to the buyer, and any risks and losses arising therefrom shall be borne by the buyer.

In any event, the Company shall not be responsible for any damage or loss of frames or glass, pocket box, bottom pad, brackets, mounting, insertion book, spindle nose or similar appendages caused by any reason.

If the buyer requests the assistance of the Company to receive the purchased auction item by mail, express delivery or transportation (the packing, postal and handling expenses shall be borne by the buyer), once the company delivers the auction item to the mail, express delivery, transportation department, the buyer or its employees or its branches, It shall be deemed that the Company has delivered the auction item, and at the same time, it shall be deemed that the buyer has received the auction item according to normal procedures. The risks during this process shall be borne by the buyer and the insurance shall not be insured in the process of mail, express delivery and transportation unless the buyer specifically indicates and bears the insurance premium.

The Company shall not be liable for any error, omission, damage or loss caused by the packing company appointed by the buyer or recommended by the Company to the buyer, the mailing, express delivery, transportation department or company.

Article LIV Auction item's leaving the country

According to the Law of the People's Republic of China on the Protection of Cultural Relics and other laws and regulations, the auction items that are restricted from being taken out of the territory of the People's Republic of China will be explained in the auction catalogue or at the auction site; For auction items allowed to be taken out of the territory of the People's Republic of China, the buyer shall go through the exit formalities by himself according to the relevant provisions of the country.

Article LV Remedies for unpaid payments

If the buyer fails to pay in full within the time (within seven days) stipulated in Article XLVIII of the Rules, the Company shall have the right to take one or more of the following measures:

(I) The deposit will not be refunded. At the same time, it shall also bear corresponding responsibilities;

(II) From the eighth day after the auction transaction date, interest shall be charged at 3/10000 of the daily interest rate on the unpaid part of the buyer until the date when the buyer fulfills the payment, unless otherwise agreed between the buyer and the Company;

(III) Request claim compensation for all losses caused by the buyer's breach of contract, including interest losses caused by the buyer's late payment or refusal to make payment;

(IV) Execute lien to the auction item or any other auction item auctioned by the Company to the same buyer, and any other property or property rights of the buyer occupied by the Company for any reason, and all expenses and risks incurred during the lien period shall be borne by the buyer. If the buyer fails to fulfill all its relevant obligations within the time specified by the Company, the Company shall have the right to dispose of the lien in accordance with the relevant laws and regulations of the People's Republic of China. If the proceeds from the disposal of the lien are insufficient to offset all the money payable to the Company by the buyer, the Company shall have the right for further recourse;

(V) Cancel the transaction of this or any other auction item sold to the same buyer in the same or any other auction, and reserve the right to recover the losses suffered due to the cancellation of the transaction;

(VI) With the consent of the client, the Company may auction again or sell the auction item by other means in accordance with the provisions of the Rules. The original buyer shall pay the remuneration, commission and auction charge that the buyer and the client shall pay in the first auction, and bear all the expenses for re-auction or selling the auction item by other means, If the proceeds from another auction or other sale of the auction item are lower than the original auction price, the original buyer shall make up the difference. The losses involved in the Rules include but not limited to direct losses, indirect losses, arbitration fees, legal fees, attorney fees, appraisal fees, notarial fees, evaluation fees, preservation fees, auction fees and other necessary expenses for handling the dispute.

Article LVI Remedies for delayed receipt of auction items

If the buyer fails to receive the auction item within the time specified in Article XLVIII of the Rules, the Company shall have the right to take one or more of the following measures:

(I) Store the auction item in the Company or other place and all expenses and/or risks incurred shall be borne by the buyer. The buyer can only receive the auction item after making full payment (packaging and handling expenses shall be at his own);

(II) Execute the lien to the auction item. If the buyer delays receiving the auction item for more than 30 days, the Company shall have the right to dispose of the auction item according to the specific circumstances and the provisions of Chinese laws and regulations, and use the proceeds of disposition to offset the storage fee, insurance premium and handling fee paid by the Company.

Chapter IV Others

Article LVII Duty of confidentiality

The Company shall have the obligation to keep secrets for the client, bidder and buyer, and to protect the legitimate rights and interests of the client, bidder, buyer and the Company from infringement in accordance with the laws of the People's Republic of China and the Rules.

Article LVIII Right of appraisal

The company may appraise the auction item when it considers necessary. If the appraisal conclusion is inconsistent with the status of the auction items stated in the auction contract, the Company shall have the right to request to modify or terminate the auction contract.

Article LIX Copyright

The Company shall have the right to produce photographs, diagrams, catalogues, videos, texts and other forms of video products for any auction items entrusted by the client, and its ownership and intellectual property rights (including copyright) will belong to the Company. The client shall guarantee that the Company does not have to pay any fees to anyone including the client himself.

Article LX Exemption from liability

As the client's agent, the Company shall not be liable for the client or buyer's any breach of contract.

In case of breach of contract by the client or the buyer, the Company shall have the right to disclose the name and address of the other party to the client or the buyer according to its own judgment, so that the injured party can obtain damages through legal proceedings. However, the Company will take reasonable steps to notify the party to which the information is to be disclosed before disclosing such information to the client or the buyer.

Article LXI Notices

Both the bidder and the client shall inform the Company of their fixed and effective contact information, and shall inform the Company immediately in writing if there is any change. The notices mentioned in the Rules only refer to the written notices sent by letter or fax. If the notice is sent by post, it shall be deemed that the notice has been sent by the Company once it has been delivered to the postal department, and the addressee shall be deemed to have received the notice according to the normal postal procedure. If the notice is sent by fax, the date on which the fax is sent shall be the date on which the addressee receives the notice.

Article LXII Separability

The rights and obligations of the parties participating in the auction activity organized by the Company shall be determined in accordance with the provisions of the Rules. If any provision or part of the Rules is deemed invalid, illegal or unenforceable for any reason, the other provisions or parts of the Rules shall remain valid and must be observed and implemented by all parties concerned. If the Rules are inconsistent with the current auction law and relevant laws, if the provisions of the Rules do not violate the prohibitive provisions of relevant laws, the provisions of the Rules shall prevail. If it is not stipulated in the Rules, but stipulated in the current laws, then the provisions of relevant laws shall apply; If it is not stipulated in the Rules and relevant laws, then international practices or domestic industry practices shall apply.

Article LXIII Dispute settlement

Any dispute arising from participating in the auction activity of the Company in accordance with the Rules may be submitted to Beijing Arbitration Commission for arbitration in accordance with its arbitration rules.

The governing law for resolving such disputes shall be the laws of the People's Republic of China.

The arbitration award shall be final and binding on all parties.

Article LXIV Use of words

The Rules shall be written in Chinese, and the English version (if any) shall be for reference only. In case of any inconsistency between the Chinese version and the English version, the Chinese version shall prevail.

Article LX Implementation time

The Rules shall be put into force on February 15, 2022.

Article LXVI Power of interpretation

The power of interpretation of the Rules shall belong to Beijing Yongle International Auction Co., Ltd.