AUCTION SALE RULES

I General Conditions

1. The auctioneer, for the purposes of these Auction Rules, means the Auction House MEISSNER-NEUMANN Ltd. (hereinafter the "Auction House"), which organizes the auction in accordance with the Law of the Czech Republic.

2. The Auction House conducts an auction of movable property which does not originate from criminal activity and to which state cultural institutions (the National Gallery, the National Museum, the National Technical Museum, the Museum of Decorative Arts, the Military Historical Museum and so on) have no right of assumption under a contract on performing an auction which the petitioner will conclude with the Auction House. The objects designated, or proposed as cultural heritage, are marked by the letter "P" in the catalogue and are subject to special regulations under the CNC (the Czech National Council) Act No. 20/1987 Coll. on Care and Conservation of State Cultural Heritage as amended.

3. The export of all objects of cultural value is subject to special regulations under Act No. 71/1994 Coll. on the Sale and Export of Objects of Cultural Value. Objects of cultural value under this Act are products of nature or human works or their collections, which are important for history, literature, art or science and meet the criteria contained in Annex No. 1 of the Act. The export of these objects from the territory of the Czech Republic may only take place if an export licence is produced stating that the objects are not declared as part of the cultural heritage nor objects which form a part of a collection declared to belong to the cultural heritage in compliance with Act No. 20/1987 Coll. on Care and Conservation of State Cultural Heritage as amended.

Bidders' Club

4. The Auction House conducts private auctions for members of the Bidders'Club (hereinafter "members of the BC").

5. The member of the Bidders'Club must be a physical person of more than 18 years of age, who has not been limited or relieved by an authorised court decision of undertaking legal acts, or a legal entity residing in the Czech Republic, who applies for membership. Persons applying for membership in the Bidders'Club are obliged to present a valid ID card or passport, legal entities an up-to-date extract from the commercial register.

6. The Auction House shall have the right to grant or refuse membership in the Bidders'Club. The membership in the BC is claimless.

7. The Auction House shall have the right to grant members of the BC (e.g. persons who have been members of the BC for a long time) the so-called VIP membership entitling them to various benefits (see further on in the Auction Rules).

8. If any member of the BC breaks the rules stated in the Auction Rules, the Auction House shall have the right to terminate his/her membership in the Bidders' Club and shall inform him/her in writing.

Participant of the Auction

9. Only members of the Bidders'Club may take part in the auction. The participant of the auction may not be the owner of the items on sale nor a person who has auctioned on his behalf, nor an intoxicated person or a person grossly violating the rule of decent conduct at the auction, nor any person who has been limited or relieved by an authorised court decision of undertaking any legal acts, likewise members of the BC who have not deposited security at the auction, if so required, nor a bidder in a repeated auction who has marred the previous sale of that lot at this Auction House. Nobody may bid on behalf of the above mentioned persons.

10. Prospective bidders are obliged, when required by the Auction House or their representative, to provide proof of identification by presenting their ID card or valid passport, or if bidding on behalf of someone else a document authorizing them to bid on their behalf. Prospective bidders are obliged to be entered in the list of bidders and should auction numbers and bid paddles be issued, to accept them; should they be requested to deposit auction security, the participants are also obliged to deposit auction security in a manner as laid down in the conditions of sale.

11. Absentee bidding - a member of the Bidders' Club may be represented in the auction by another member of the Bidders' Club on the basis of a written power of attorney containing an officially certified signature; a proxy may also be authorized to act on behalf of the bidder. The bidder also grants power of attorney for being represented at a repeated auction provided that the terms and conditions of the auction are fulfilled.

The Petitioner

12. The petitioner is a person who submits a petition for an auction to take place. The petitioner must conclude a written Contract on Performing an Auction otherwise the auction cannot take place. This does not apply if the Auction House is the petitioner.

The Auctioneer

13. The auctioneer is a person authorised to act at the auction on behalf of and to the benefit of the Auction House. The auctioneer opens the auction, calls on the bidders to place their bids and announces the successful bid price or hammer price.

II The Auction

1. The auction is not open to the public. Only members of the Bidders' Club may take part in the auction following the payment of an entry fee. However the fulfilment of these terms and conditions does not include allowing entry to intoxicated persons or those violating the rules of decent conduct (in soiled or otherwise undignified apparel or conduct, which would evidently cause problems for the auctioneers and so on.).

2. At least one day prior to the auction, the Auction House will enable the bidders to view the lots offered at auction. The place of the preview exhibition will be stated in the auction catalogue. This condition may not apply to items heavier than 15 kg (in such an event, a displayed photograph of the heavy item will suffice).

3. During the preview exhibition it is prohibited under Article II. 2 to privately sell, display or exchange any items among members of the Bidders' Club and in any way visually capture (e.g. to film or take photographs) the lots displayed or auctioned. All members of the BC are obliged to respect all measures taken to protect the exhibited items or items placed on auction for this period of time.

The Auction Procedure

4. Whoever is registered as a member of the Bidders'Club and produces a ticket in the form of the catalogue, is entitled to be issued an auction number, a bid paddle - for which the Auction House may request a deposit. The deposit will be returned once the bid paddle is returned which may be done no later than one hour after an auctioned lot or after the last lot has been sold to the successful bidder. The deposit may not be returned if the bid paddle is returned later. A person who has not been issued a bid paddle may not take part in the auction - this does not apply if the Auction House is authorized to bid on someone's behalf.

5. The auction is conducted by the employees of the Auction House who are obliged to announce the lowest bidding price for each lot (or a collection of lots) in accordance with the lot numbers listed in the catalogue. Should the lot be classified as part of to the Cultural Heritage, the auctioneer will state this fact.

Lowest Bid

6. The so-called lowest bid, which is a maximum of 2/3 of the estimated or ascertained price, is rounded up:

1. to 50 CZK, if less than 1 000 CZK
2. to 100 CZK, if more than 1 000 CZK, but less than 10 000 CZK
3. to 500 CZK, if more than 10 000 CZK, but less than 30 000 CZK
4. to 1 000 CZK, if more than 30 000 CZK, but less than 100 000 CZK
5. to 5 000 CZK, if more than 100 000 CZK.

The lowest bid is the sum of the opening bid for a lot at the auction.

Bids by the Hammer (Knock-down Bids)

7. An auction takes place if the participants of the auction place higher bids (knock-down bids); a knockdown bid is considered to be made, if the participant of the auction visibly raises his/her auction number, bid paddle. If more such bids are made, the auctioneer counts the knockdown bids in ascending order. A knockdown bid is considered to be:

1. 50 CZK, should the immediate auction price be less than 1 000 CZK
2. 100 CZK, should the immediate auction price be at least 1 000 CZK, but less than 5 000 CZK
3. 500 CZK, should the immediate auction price be at least 5 000 CZK, but less than 20 000 CZK
4. 1 000 CZK, should the immediate auction price be at least 20 000 CZK, but less than 50 000 CZK
5. 5 000 CZK, should the immediate auction price be at least 50 000 CZK, but less than 100 000 CZK
6. 10 000 CZK, should the immediate auction price be at least 100 000 CZK but less than 500 000 CZK
7. 50 000 CZK, should the immediate auction price be 500 000 CZK and more
8. any higher sum offered by any one of the bidders

The immediate auction price is the sum for which an item is bid during the increasing number of knockdown bids.

8. Should no lowest bid be made, the auctioneer will end the auction. The knockdown of the hammer ends the auction.

9. Should not even an auction result in the lowest bid or even the lowest bid of a lot which is the last in order, the auctioneer ends the auction, otherwise the auctioneer ends the auction by the knock-down of the hammer for a lot which is the final in the order of lots being auctioned.

III The Bidder

1. Should there be no knock-down even after two calls, the auctioneer will announce one more last bid (the price reached at the final knock-down - the hammer price) and after the third call he/she will grant the knock-down to the bidder who made the highest bid. The bidder is then bound by this final, successful bid price.

2. The highest bidder acknowledged by the auctioneer will be the purchaser. In the event of any dispute between bidders, the Auction House will have the final discretion to determine the successful bidder. Should a participant of the auction act on behalf of another person, both parties are responsible for the fulfilment of all obligations and commitments arising from the auction.

3. The property in a lot shall not pass to the successful bidder until he/she has paid the full purchase price within the deadline set by the Auction Rules.

4. The right to deliver the auctioned items arises for the successful bidder once he/she pays the Auction House the full purchase price in compliance with these Auction Rules. The full purchase price, for the purpose of these Auction Rules, is the hammer price of the lot increased by the auction commission together with VAT at the standard rate, storage fees and further fees, charges and expenses more fully set forth herein.

Payment

5. The auction takes place in sessions followed by breaks. At the end of each session the bidder if taking part in the auction in person, must pay the purchase price during the nearest break in cash, by credit card or by another payment instrument upon agreement with the Auction House, or immediately after the fall of the hammer for the final lot, unless the bidder and Auction House agree on terms for credit or on a different payment deadline. Lots which have not been paid for may be put on sale again at auction (the rights of owners will not be affected by this). The price reached at the auction may not be additionally reduced.

6. Auction security, if so requested, and its accessories are included in the price of the successful bidder as reached at the auction. The bidder must pay the Auction House the remaining part of the hammer price reached at the auction within the deadlines set under these Auction Rules. Should the bidder have deposited auction security in the form of a bank guarantee, the bidder is obliged to pay the full purchase price and also within the deadline set under these Rules.

7. The buyer shall pay the Auction House the full purchase price within five working days after the date of the auction provided that the Auction House and buyer agree on the payment of a deposit. VIP members of the Bidders'Club are entitled to pay for their purchased lots within five working days after the date of the auction.

8. If any member of the BC fails to pay the purchase price in accordance with Article III, Para 5 and 7, the property of the lot shall not pass to the bidder. The Auction House has the legal right to claim the payment of the purchase price together with other charges and fees with respect to the unpaid lot or lots.

Auction Price

9. The highest reached auction price (the hammer price) is the purchase price for which the Auction House will issue the bidder a written confirmation of payment (cash receipt). The Auction House will also charge with the payment of the purchase price an extra 15 % to this price debited to the bidder as a special auction commission. This surcharge is final. The auction commission is rounded up to 50 CZK. The receipt of payment of this commission is part of the cash receipt for payment of the purchase price. The purchased lot will be passed to the bidder against payment of the purchase price and auction commission in compliance with the auction notice and these Rules. If the day when the purchased lot is to be picked up by the bidder at the Auction House falls on a holiday, the lot will be available on the nearest subsequent working day in the places stipulated by the auction notice against submission of the receipt of payment. At the wishes of the bidder, the purchased lot may be stored for a period of 15 days from the day of payment of the purchase price free of charge in the places stipulated by the auction notice.

9. The highest reached auction price (the hammer price) is the purchase price for which the Auction House will issue the bidder a written confirmation of payment (cash receipt). The Auction House will also charge with the payment of the purchase price an extra 15 % to this price debited to the bidder as a special auction commission. This surcharge is final. The auction commission is rounded up to 50 CZK. The receipt of payment of this commission is part of the cash receipt for payment of the purchase price. The purchased lot will be passed to the bidder against payment of the purchase price and auction commission in compliance with the auction notice and these Rules. If the day when the purchased lot is to be picked up by the bidder at the Auction House falls on a holiday, the lot will be available on the nearest subsequent working day in the places stipulated by the auction notice against submission of the receipt of payment. At the wishes of the bidder, the purchased lot may be stored for a period of 15 days from the day of payment of the purchase price free of charge in the places stipulated by the auction notice.

10. The Auction House will issue the bidder, without undue delay, a written confirmation on the acquisition of ownership of the auctioned lot. This written confirmation containing the following information: the number of the lot under which it was auctioned, the bidder and his/her auction number, the Auction House, a brief description of the lot including any defects, number of pieces (in case of a collection), if the items are made of precious metals, the purity of the metal and its weight in grams (in carats in case of diamonds), the purchase price, the date of the auction, a stamp and signature of the authorized employee of the Auction House. An attachment to the confirmation on the acquisition of ownership must be a document (receipt) from which the date and method of payment of the purchase price is evident. In the case of objects of cultural value, the Auction House will also issue a certificate in compliance with Act No. 71/1994 Coll.

11. Any objections to the knockdown bid must be raised immediately in the auction room by the bidder in a visible and audible manner. No consideration is possible of objections raised upon payment itself. Complaints about goods auctioned in the auction room are not accepted; the description of the lots only declares their outer (physically noticeable) qualities and not their provenance. Lots auctioned on the basis of a power of attorney granted to the Auction House may be reclaimed no later than with their assumption.

12. The Auction House is obliged, under the terms and conditions stated in the Auction Rules, to deliver to the successful bidder without undue delay, the purchased object and the papers which certify ownership and which are essential for further handling of the purchased property. The successful bidder will confirm assumption of the purchased lot in writing by a protocol on delivery of the lot which, apart from the bidder, will also be signed by the Auction House.

13. All costs associated with delivery and assumption of the purchased lot will be borne by the buyer. This obligation does not apply to costs, which would otherwise have not been incurred, if caused through the fault of the former owner or the Auction House or if these costs are incurred by an accident to the object in question.

14. The danger of damage to the lot passes from the petitioner to the bidder on the day of delivery of the lot; on this day the liability also passes to the bidder for damage caused in connection with the purchased lot. Should the bidder delay assumption of the purchased lot, he/she will bear the danger of damage and liability for damage to the lot.

15. The earnings of the auction will be delivered to the former owner by the Auction House after the settlement of the costs of the auction immediately after payment of the full purchase price by the buyer.

Absentee bidding

16. A bidder may bid for any lot on sale even without being personally present at the auction provided he/she fulfils the following terms and conditions:

1. provided he issues a written power of attorney, fills in an absentee bid form containing his/her signature, date and address
2. indicates the lots which the Auction House is to bid for on his/her behalf
3. sets the top limit of bid for each lot separately

A bidder may also place bids for any lot on sale by telephone, provided he/she fulfils the following terms and conditions:

1. issues a written power of attorney for the Auction House containing the date, address and signature
2. indicates the lots he/she intends to bid for by telephone

In the event of identical bids placed by the bidder attending the auction in person and the absentee bidder, the bidder present in the auction room will take precedence.
A power of attorney, an absentee bid form is inserted in each auction catalogue. However it is not possible to qualify representation in an auction of one lot by the success or failure to bid for a different lot, nor execute bids for alternative lots. The Auction House will bid on your behalf and the service is confidential. The Auction House may subject the acceptance of the absentee bid by the deposit of an advance payment.

The representatives of the Auction House shall proceed in compliance with Article III (16) and try to purchase the lot of your choice for the lowest price possible.

IV. Optional Services

1. The Auction House does not provide transportation of purchased lots. If the purchased property is not collected within the deadline stated in Article III (9), the Auction House has the right to charge the sum of 100 CZK for each calendar day of storage. Should the right to charge for storage last six months, the Auction House is entitled to sell the item.

2. As a courtesy to members of the Bidders' Club who come to pick up their purchased property, the employees of the Auction House will assist in the packing of lots, although they may, in the case of fragile articles, choose not to pack or otherwise handle a purchase. The Auction house will not be responsible or liable for damage to glass and frames, regardless of the cause.

3. The successful bidder is responsible for loss or damage to purchased lots the moment he/she picks them up or from the expiry of 15 working days as of the auction depending on which deadline expires first, inasmuch as from this moment the Auction House and its employees are relieved of the responsibility for any loss of or damage to the sold items, be it due to negligence or any other cause, for a period during which they will be kept or stored by the Auction House.

V. Closing Provisions

1. Goods auctioned are usually of some age. All lots are put to auction regardless of their defects and wear-and-tear or correctness of the catalogue description. The photographs of lots in the catalogue serve only to identify a lot. Prospective bidders should inspect each lot before bidding to determine its condition and it will be exclusively up to his/her judgment, whether the item corresponds to the description, with the exception of the obligations which he/she takes upon him/herself under these Auction Rules, neither any petitioner nor the Auction House and its employees will be liable for an incorrect description or the genuineness or authenticity of any auctioned lot and will not provide any of the bidders any guarantee for any auctioned item, and all explicit or silently assumed guarantees are thereby excluded. However the petitioner is liable for defects to a lot, which were known or should have been known to him/her at the petition for an auction and did not draw the Auction House's attention to this in time in the contract on performing an auction. The rights of authorized persons stemming from easements associated with an object of the auction will remain unaffected with the transfer of ownership.

2. Should the bidder, within 30 days as of the auction, submit to the Auction House a written declaration, together with the auction number of a lot and the date of auction, stating that the purchased lot is a fake or shows defects in the text or illustration and simultaneously returns the lot in the condition in which it was found at the time of the auction, and confirms that this lot is really defective or a fake, the Auction House will cancel the sale of this lot and return all the money paid for this lot, provided that the lot is not an item whose sale may not be cancelled and cannot be returned or refunded, i.e. in the following cases:

1. the lot has been indicated in the catalogue as a lot, which cannot be returned
2. the lot is a part of a set or collection
3. a manuscript indicated in the catalogue as incomplete
4. the defect in question has been mentioned in the catalogue
5. the reclaimed defect does not apply to the text or illustration
6. this applies to an atlas, a book with illustrations taken from other publications, a periodical, a print, a drawing or book with illustrations in the margins.

It may be stated e.g. that a purchased lot may not be returned due to damaged binding, stains, mould, marginal wormholes, lacking blank pages or due to other reasons which do not affect the completeness of the text or illustration, missing list of picture supplements, inserted advertisements, deletions, corrections, index or picture supplements or their incorrect numbering.

The bidder is only and exclusively authorized to lodge a complaint about a lot and demand maximum reimbursement up to the sum paid for such a lot.

3. All information in the auction catalogue regarding the authorship, quality, authenticity, origin, date, age, provenance, condition, opening bids or estimate stated in the catalogue only express the opinion of the Auction House. The Auction House reserves itself the right for creating this opinion by consulting experts or specialists in relevant institutions and is guided by their opinions. Every prospective bidder should however be guided by his/her own opinion and neither the Auction House nor its employees can bear responsibility for the correctness of such an opinion.

4. All notifications made by the Auction House to the member of the Bidders' Club or petitioner are delivered by post in the form of letters submitted to the recipient's own hands together with an advice of delivery; these may also be delivered in another documented manner to the hands of a person appointed to receive such deliveries. Pecuniary sums are deposited in cash or delivered by post in the form of pecuniary letters to own hands, by transfer from a bank account or other credit form; these may also be delivered in another documented manner to the hands of a person appointed to receive such deliveries. If this concerns a credit transfer, the sum is sent by debiting the account of the sender provided that it is credited to the account of the recipient. The Auction House may also allow payment by cheque or credit card under the terms and conditions of these Auction Rules.

5. These Auction Rules have been drawn up in compliance with Czech law and are also governed by the relevant legislative regulations of the Czech legal procedure. Czech law governs all transactions regulated or arising from these Auction Rules, as well as all further associated facts.

Prague, August 11, 2005 Ing. Jan Neumann

NEWS

3. 9. 2010

New auction catalogue 3/2010 - 26. 9. 2010 We would like to inform you about new printed auction catalogue.

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