Chapter I General Provisions

Chapter II Conditions Mainly Concerning the Bidder and the Buyer

Chapter III Conditions Mainly Concerning the Seller

Chapter IV Miscellaneous

Article 1 This Conditions of Business (hereinafter referred to as the "Conditions") are made in accordance with the Auction Law of People's Republic of China, other relevant laws, regulations and the Articles of Association of the Company with reference to international general practices.

Article 2 Under the permission scope of the People's Republic of China law and policies, the company organises auctions through the platform: www.yfgp.com. Each participator in this auction website whether the consigners, the bidders, the buyers or other related person or organisation should implement the auction rules.

Article 3. Each participator in this auction website whether the consigners, the bidders, the buyers or other related person and organisation must carefully read the auction rules and observe the rules, also the participators should responsible for their auction behaviour in this website. In the case of any loss caused by reading the auction rules non-carefully, the participators should undertake.

Article 4 The lot information provided on the company website such as the author, the age, the size, the material quality, the authenticity, the preserved condition and so on are only used as references. This company shall undertake no guarantee for the authenticity and/or quality of the Lot. Bidder and/or its agents shall inspect and investigate the actual status regarding the Lot and take liability for its bidding.

Article 5 This company implements the registration member system on the on-line auction.

Article 6 “ the Bidder " means a natural person, legal person or any other organization that has full capacity of civil rights to bid at auction on our website according to provisions of Chinese laws and has gone through necessary formalities. In case there is any provision with respect to conditions of sale or qualification of Bidder, the Bidder shall satisfy these requirements. In this Condition, the Bidder shall include any of its agents unless otherwise provided thereunder or in a particular context.

Article 7 “the Buyer" means the person with the highest bid accepted by the auctioneer

Article 8 The bidder should pay the corresponding earnest money for participating on-line auction.

1. The people without paying deposit could apply for general members, he/she may participate to bid in 1,000 Yuan or under this value of goods, also only allowed to bid one goods.
2.Level I members should pay 300 Yuan as a deposit and can participate to bid 3,000 Yuan or under this value of goods.
3. Level II members should pay 500 Yuan as a deposit and can participate to bid 5000 Yuan or under this value of goods.
4. Level III members should pay 1,000 Yuan as a deposit and can participate to bid 10.000 Yuan or under this value of goods.
5. Level IV members should pay 3,000Yuan as a deposit and can participate to bid 30,000 Yuan or under this value of goods.
6. Level V members need to pay 5.000 Yuan as a deposit and can participate to bid all of goods without any special limits.
7. For special bidding goods, it must be registered in professional department to gain bidding rights.
8. The above deposit can be returned to the member without charging any interests, at the same time, the level of members will restore to the general member.

Article 9 Any bidders should take care of their own member identity properly, only if some bidders in participation provide the written proof to our company, which indicates that their identity is as the agent, otherwise each bidder is regarded as the bidder own self

Article 10 At the auction, we will prepare a catalogue to introduce the status of the Lot with words and/or pictures for the convenience of Bidders and Sellers. The words, Reference Price, pictures of the catalogue and other images and advertisements are only reference for Bidders and are subject to revision before auction. We provide no guarantee for the authenticity, value, tone, quality and flaw or defect of any Lot.

Article 11 In case that the tone, colour, graduation and shape shown in catalogue and/or any other illustrations, images and advertisements differ from those of the original of the Lot due to print, photograph and other technical reasons, the original shall apply.

Any statement and appraisal in any ways (including but not limited to the certificate, catalogue, slide show, news media) of any Lot made by us and our employees or their agents are only for reference and should not relied on as any guarantee for the Lot. We and our employees or its agents shall undertake no liability for any inaccuracy and omission in the statements and appraisal mentioned above

Article 12 The Bidder who intends to give us a commission to bid on its behalf shall present us with a written authorization certificate and hand in a deposit in accordance with the provisions in Article 8 hereof within certain period.

Article 13 The Bidder who entrusted us to bid on its behalf shall inform us the cancellation in writing before the Auction Date. If any Lot had already being entrusted to bid, the company will cancel the bidder’s entrusting right after the auction (One Lot or a few Lot) finished.

Article 14 For the convenience of the bidders, this company provides the automatic system to act as an agent to bid., The Bidder who intends to give us a commission to use this automatic proxy bidding system on its behalf shall present us with a written authorization certificate and hand in a deposit in accordance with the provisions in Article 8 hereof within certain period

Article 15 The automatic system proxy can not be cancelled.

Article 16 Since we charge no fee for bidding on behalf of the Bidder or using automatic proxy bidding system in the case that the Bidder can not attend the on-line auction on time, we and our employees shall not be liable for any failure in bidding or any negligence or fault in the commission bids. Bidders shall attend the auction in person to assure the success of bidding

Article 17 In the event that two or more Bidders entrust us to bid on their behalf for the same Lot and succeed in the same commission price, the Bidder whose authorization certificate was first received by us shall be the Buyer of the Lot.

Article 18 In the event that two or more Bidders entrust us to use the automatic proxy bidding system on their behalf for the same Lot and succeed in the same commission price, the Bidder whose authorization certificate was first received by us shall be the Buyer of the Lot.

Article 19 When the on-line bidding time ended, the highest bidding will be confirmed at that time, the Bidder with the highest bidding succeeds in the bid and the sale contract of the Lot between the Buyer and the Seller is concluded.

Article 20 The Bidder will be deemed as the Buyer of the Lot after succeeding in bidding and shall pay us a remuneration equal to 10% of Hammer Price and other Expenses and acknowledge that we are entitled to charge commission and other costs payable by the Seller in accordance with Article 21 hereof.

Article 21 The Buyer shall make full payments in a lump sum and collect the Lot (package and transportation at the Buyer's expense) within fifteen days after the Sale Date; otherwise, the Buyer shall be liable for breach of contract.

Article 22 All payments shall be made in the currency designated by us. In the event that the Buyer make payments in currency other than the designated one, the currency shall be converted at the rate agreed upon by the Buyer and us or at the rate announced by People's Bank of China one (1) business day prior to the payment. The Buyer shall reimburse us for any bank charges, commission and other expenses for converting the currency into RMB.

Article 23 The Buyer shall collect the purchased Lot no later than seven days after Sale Date. In case of failure to do so, the Buyer shall be solely responsible for all risks and losses of the Lot and bear all expenses for transportation, storage and insurance in connection therewith due to delay. Nevertheless the Lot is still preserved by us or any other agents, we and our employees or its agents shall not be liable for any losses and damages of the Lot caused by any reason.

Article 24 We may arrange packing and handling of the purchased Lot on behalf of the Buyer as the case maybe on its request and the Buyer shall be liable for any loss arising thereupon. In no circumstances shall we take any liability for any damages or losses of glass, frames, drawer, bottom mat, trestle, mounting, insert pages, roller or other similar accessories arising out of any reason. In addition, we shall undertake no liability for any fault, omissions, damages and losses caused by the packers or carriers we recommended.

Article 25 We will make explanation in the catalogue or at the auction to the Lot prohibited to be exported pursuant to the Protection Law of Cultural Relic of the People's Republic of China and other relevant laws and regulations.

The Buyer shall be responsible for applying for export license in accordance with Chinese laws for the Lot permitted to be exported pursuant to the Protection Law of Cultural Relic of the People's Republic of China and other relevant laws and regulations.

Article 26 The deposit will not be refunded if the Buyer fails to make full payment within the stipulated period and the Buyer shall undertake any liability may occur in accordance with this Conditions.

Article 27 If following a successful bid the Buyer fails to pay us the purchase price in full according to Article 21 of these Conditions of Business, we shall have the right to provide all or part of the data or information about the Buyer to any third party in cooperation with us for purposes of entrusting such third party to collect all or part of the default payment from the Buyer. Commence lawsuit proceedings against the Buyer for any damages caused by the Buyer's breach of contract, including but not limited to the losses of interest on deferred or unpaid payment by the Buyer.

Article 28 Charge the Buyer an interest at a rate of three ten-thousandth per day on the due and unpaid amount until such payment is made fully, to the extent it remains unpaid fully for more than fifteen days after Sale Date, unless otherwise agreed by the Buyer and us

Article 29 Exercise a lien on the purchased Lot or other properties of the Buyer which may be in our possession for any reason. The Buyer is responsible for all expenses or risks occurred during the period of lien. In case the Buyer fails to perform all relevant obligations hereunder within the period we designated, we shall have the right to dispose of such property in accordance with relevant laws and regulations. In case the proceeds cannot cover the amount outstanding, we are entitled to claim for the balance.

Article 30 In the event that the Buyer not making full payment to us within 30 days from Sale Date, to cancel or approve the Seller to cancel the sale of the Lot and/or other Lots sold to the same Buyer at this auction or any other auctions and reserve the right to claim for any losses caused by such cancellation.

Article 31 Carry out a re-sale of the Lot by public auction or other ways according to this Conditions subject to the consent of the Seller. The original Buyer shall be liable to the Seller for the remuneration
/commission and other Expenses occurred at such auction as well as all Expenses for re-sale by public auctions or other ways. In addition, the original Buyer shall also be liable for the difference, if the Purchase Price actually received by the Seller for re-sale by public auctions or other ways of such Lot is lower than the original Purchase Price that would have been receivable hereunder had the Buyer made the full payments.

Article 32 In case the Buyer fails to collect the purchased Lot within the period provided in Article 21 hereof, the company will arrange storage of the Lot at our company or any other places at Buyer's risk and expense. The Buyer shall not collect the Lot unless the full Purchase Price is paid (package and transportation at the Buyer's expense). And Exercise a lien on the purchased Lot. After 30 days from the delayed collection by the Buyer, we may, as the case maybe, dispose of such Lot in accordance with relevant laws and regulations and apply the proceeds to compensate for the amount outstanding owed to us including but not limited to fees of storage, insurance transportation, notarization and all expenses occurred in connection to disposal of the Lot. The Seller should collect the balance (if any) at its own expenses.

Article 33 This company is authorized to explain any disputes caused in the auction process according to this auction rules. When auctions have the unusual situation, this company is authorized to correspond and solve it.

Article 34 This company is authorized to voluntarily decide to cancel any members’ right if they break the laws or the auction rules at any time, certainly does not have to undertake with it correlation economical responsibility and the legal liability.

Chapter III Conditions Mainly Concerning the Seller

Article 35 “ the Seller " means a natural person, legal person or any other organization who consigns Lot to us for auction in accordance with this Conditions. In this Condition, the Seller shall include any of its agents unless otherwise provided hereunder or in a particular context.

Article 36 When arranging for consignment, the Seller shall hold a valid identity card or passport or other certificates approved by the Chinese government in the case of the seller being a natural person. A valid certificate of registration, ID of legal representative or other legal authorization documents is required in the case of the seller being a legal entity or other organization, and sign a consignment contract with us. When the Seller arranges for consignment, we shall be automatically authorized to make pictures, illustrations, catalogue, or other video images of the Lot.

Article 37 When arranging for consignment, the Seller's Agent shall submit to us a relevant authorization letter and hold a valid identity card or passport or other certificates approved by the Chinese government in the case of a natural person. A valid certificate of registration, ID of legal representative or other legal authorization documents is required in the case of a legal person or other organization. We are reserve the right to examine and amend the above arrangement in any manner we consider reasonable.

Article 38 The Seller hereby makes irrevocable warranties as follows to us and the Buyer with respect to the consigned Lot: the Seller has exclusive and absolute ownership and legal right to dispose of the Lot. Without prejudice to any legal interest (including copyright) of any third party, the auction of the Lot shall not violate any relevant law and regulation; the Seller has, to the best of its knowledge, made full and complete disclosure and described to us with respect to the origin and any flaw or defect of the Lot without any concealment and fabrication; and the Seller shall indemnify and hold us and/or the Buyer from and against any claims, losses and damages or actions incurred or brought by the actual owner or any third party who claims to be the actual owner of the Lot and all expenses and costs incurred in connection therewith arising out of or in any way attributable to any breach of the above warranties.

Article 39 All Lots are offered subject to a Reserve, unless otherwise agreed by the Seller and us. The Reserve shall be determined by the Seller and our company in writing and no modification or amendment of the Reserve shall be binding upon the parties unless subject to prior written consent of the other party. In no circumstances, shall we accept any liability for failure in sale due to bidding lower than the Reserve at the auction.

Article 40 After the Seller has signed the sales contract with and delivered the Lot to us, if for any reason we believe that the Lot is not suitable for auction, the seller must collect the Lot within 30 days from the date of our notice being dispatched (fees for the packaging and handling shall be paid by the seller), the contract between the seller and us will cease on the date the seller collects the Lot. If during the abovementioned period the seller fails to collect the Lot, the contract will be automatically ended. If within seven days after the ceasing of the contract, the seller does not collect the Lot, the Company reserves the right to sale the Lot by means of public auction or in other ways and conditions we consider proper. If we succeed in selling the Lot, the sales proceeds will be paid to the seller, less reasonable handling expenses.

Article 41 We may suspend any auction at any time under any one of the following situations: we have objection to the ownership and authenticity of the Lot; any third party has objection to the ownership and authenticity of the Lot with undertakings to provide relevant evidence, make security pursuant to our provisions and take all legal responsibilities for all legal repercussions and losses due to suspension of auction; we have objection to the explanation of the Seller or the accuracy regarding the Seller's warranty provided in Article 8; we have any evidence to prove the Seller has already violated or is to violate any term of this Conditions; and any other reasonable causes.

Article 42 The Seller may withdraw the Lot at any time prior to the Auction Date subject to our consent and a written notice stating the reasons. In the case that the catalogue or any other advertisements of the Lot have begun to print upon the Seller's withdrawal, the Seller shall pay an amount equal to 20% of the insured value of the Lot and other Expenses in connection therewith. In the case that the catalogue or other advertisement has not been printed, the Seller shall pay an amount equal to 10% of the insured value and other related expenses. No dispute or claim arising out of the Seller's withdrawal shall be born by auctioneer.

Article 43 Unless otherwise instructed by the Seller in writing, all the Lots will be automatically covered under the insurance of our company as soon as the Seller signs the consignment contract with us and delivers the Lot to us. The insured value shall be based on the Reserve agreed by the Seller and us in the consignment contract (if no Reserve, the insured value is the one agreed by both parties; if the Reserve is adjusted, the insured value shall be the original Reserve). The insured value is only subject to insurance and claim other than our warranty or security for the value of the Lot and the Hammer Price of the Lot.

Article 44 Unless otherwise agreed by the Seller and us, the Seller shall pay the insurance premium equal to 1% of the Hammer Price of the Lot after sale. In the case that the Lot fails to sell, the insurance fee payable by the Seller shall be 1% of the Reserve.

Article 45 We will not be liable for the damages or losses of the Lot caused by natural wear, inherent flaws, inherent or potential defects, inherent material changes, self-combustion, self-warming, oxidation, rust, leakage, rat-bite, woodworm, changes in atmospheric (climate, temperature or humidity) conditions, changes in normal water level, or other reasons of natural changes and caused by earthquake, tsunami, war, actions similar to war, hostile actions, armed conflicts, terrorism, rebellion, coup, strike, riots, or nuclear fission, nuclear fusion, nuclear weapon, nuclear radiation, or radioactive pollution. We will also not take responsibility for any damages to or any losses of frames, glass, drawer, bottom mat, trestle, mounting, insert pages, roller or other similar accessories caused by any reason.

Article 46 Any damages or losses of the Lot caused by incidents or disasters covered by insurance we purchased for the Lot shall be handled in accordance with Chinese laws and regulations regarding insurance. We shall pay insurance indemnities less all expenses incurred by us (except commissions) to the Seller after we obtain such indemnities from insurance company.

Article 47 The Seller shall not bid for the Lot consigned to us by him/she, nor authorize any other person to bid on its behalf. The Seller shall be liable for and indemnify us for any losses and damages caused by violation of this provision.

Article 48 Unless otherwise agreed upon by the Seller and us, the Seller shall authorize us to deduct 10% of the Hammer Price as commission and any other Expenses from the Hammer Price. Nevertheless we act as the agent of the Seller, the Seller agree that we may be entitled to the Buyer's remuneration and other Expenses payable by the Buyer in accordance with provisions in Article 48 hereof.

Article 49 In the case that the Buyer makes full payment to us in accordance with provisions in Article 21 hereof, we shall pay the Proceeds of Sale to the Seller in RMB after 35 days since the Sale Date.

Article 50 In case we do not receive the full payment from the Buyer upon the expiry of payment period under Article 49 hereof, we will pay the Sale Proceeds to the Seller within seven business days (meanwhile such payment should be made after 35 days of Sale Date as well) after receipt of such full payment from the Buyer.

Article 51 In the event that the Buyer not making full payment to us within 60 days from Sale Date, the Seller is authorized to cancel the transaction after giving us a notice in writing and receiving prior approval from us. A cancellation notice is to be dispatched to the Buyer within 7 working days after such decision approving the cancellation is made by the Company. In the event that the Buyer make full payment and/or finish collect procedure before the service of the cancellation notice of the Seller to the Company, such notice should be deemed to be terminated automatically, and the transaction is to be carried out in accordance with regulations stipulated in Article 24, on which the Seller should cooperate with the Company and under no circumstance to raise any objection. In the event that the Seller cancel the transaction, the Seller must collect the Lot within 30 days from the date of our notice being dispatched (fees for the packaging and handling shall be paid by the seller). In the event the Lot is not been collected within the above period, the Company is authorized to sell the Lot by means of auction or in other ways under the conditions the Company consider appropriate. The Seller holds responsibility to collect the amount net of expenses incurred by the Company.

Article 52 The Seller shall be solely responsible for paying any tax imposed on its Sale Proceeds in accordance with the relevant law.

Article 53 In the event the Buyer fails to make full payment to us within fifteen days of the Sale Date, we are entitled to recover the remuneration and other Expenses payable by the Buyer in accordance with provisions in Article 56 hereof and to take necessary measures to assist the Seller in collecting deferred payments upon the Seller's request as soon as practicable. However, we shall have no obligation to sue the Buyer on behalf of the Seller in any circumstances.

Article 54 In the event that the Lot is not sold in its first offering, the Seller shall take back the Lot within 30 days after receipt of our notice (packing and shipping at the Seller's own expense) and pay us fees for failed auction and all other expenses. If the Seller fails to do so, we reserve the right to resell the Lot by public auction or in other ways under the conditions we consider appropriate and pay to the Seller the Sale Proceeds, after having deducted the all agreed upon fees and other expenses accrued in the first auction and all costs incur in the resale of the Lot.

Article 55 The Seller shall take liability for any risk and /or loss occurred after the period mentioned above in case of failure in taking back the Lot in such period. In the case that the Seller requires us to assist in returning the Lot, the Seller shall be liable for all risks and/or all losses bear all the expenses. Generally, we are not responsible for arrangement of transportation insurance unless the Seller specifically instructs us to do so and bears the insurance premium.

Article 55 We may determine the following matters, as the case maybe, upon authorization of the Seller (at the Seller's expense):
(1) to agree special terms on how to make the payment of Purchase Price;
(2) to remove, store and arrange insurance for sold Lot;
(3) to settle claims brought by the Buyer or the Seller in accordance with relevant terms and conditions hereof;
(4) take other necessary steps to collect the deferred payment by the Buyer to the Seller.

Chapter IV Miscellaneous

Article 56 We shall be obligated to maintain the confidentiality of any information provided to us, and indemnify all legal rights of Seller, Bidder, Buyer and our company against any damages according to the relevant laws and regulations of the People's Republic of China.

Article 57 We may identify the Lot if necessary, as the case maybe, at our own discretion. In case of any discrepancy with respect to the status of such Lot between the identification and the consignment contract, we shall be entitled to modify or rescind the consignment contract.

Article 58 We shall be entitled to take photographs, make illustrations, catalogue or other images relating to the Lot consigned to us for auction and shall have the copyright for such photographs, illustrations, catalogue or other images mentioned above.

Article 59 We, acting as agent of the Seller, shall undertake no liability for any breach of contract by the Buyer or the Seller.

Article 60 Both the Bidder and Seller shall notify us their valid and regular communications and address. No change in any of the particulars will be effective until it has been notified in writing as soon as possible. All notices referred in this agreement shall be in writing and shall be delivered by post or transmitted by fax. A notice sent by post shall be deemed to have been sent on the date we give it to post office and received by the addressee via normal mail service. A notice sent by fax, shall be deemed to be received on the date when it is faxed.

Article 61 If any dispute arises from participation in the auction pursuant to this Condition, all concerned parties shall submit such dispute to a Chinese court or a Chinese arbitration commission for arbitration unless the Parties have agreed otherwise. Such dispute shall be governed by Chinese laws.

Article 62 If any provision or part of this Condition is deemed invalid, unlawful or unenforceable by a competent agency, this Conditions shall be ineffective to the extent of such unlawfulness or unenforceability without invalidating or affecting the validity or enforceability of the remaining provisions of this Conditions.

Article 63 The terms used in these conditions shall have the following meanings:
(1 )" We/Us/Our/Company ” means Beijing YuanFang International auction Co., Ltd.
(2) “ The Auction Platform ” means that www.yfgp.com
(3) " Expenses" means charges and expenses including but not limited to expenses with respect to Lot insurance, catalogue and other advertisement, package, transportation and storage and any other expenses pursuant to relevant laws, regulations and provisions hereof.
(4) "Reserve " means the price below, which we agree with the Seller in writing that the Lot cannot be sold.

Article 64 This Conditions is written in Chinese and English. The English version is only for reference. In case of any discrepancy between the Chinese version and English version, the Chinese, as the official version, shall prevail.

Article 65 We have the right to interpret this Conditions at our own discretion.