TERMS AND CONDITIONS OF AUCTION(Date Revised: August 1, 2022)
Any auction of art carried out by SHINWA AUCTION CO., LTD. (hereinafter referred toas “the Company”) shall be conducted in accordance with Terms

and Conditions of

Auction (hereinafter referred to as “The Terms and Conditions”). All concerned partiesincluding any person who consigns objects of art for sale to the Company, places a bid, or
concludes a contract of sale with the Company shall agree to and comply with The Terms
and Conditions, except where a separate agreement with the Company has beenconcluded in which case that agreement shall govern.
Section I LOTS (Objects of Art Subject to Auction)(Objects of Art Subject to Auction)
Article 1. The Company shall auction an object of art consigned to it for sale by auction(such object of art shall hereinafter be referred to as “the Lot”) in the
Company’s own name.
(Condition of Lot)
Article 2. On the grounds that the Lot will usually be by its very nature old and is to be
sold on an “as is” basis, the Company shall in no way be responsible for stains,scratches, or any other defects of the Lot, or for any latent defect of the Lot.
(Preview)
Article 3. The Company shall arrange a preview of the Lot for prospective bidders before
the auction.
② Prospective bidders may inspect and examine the Lot at the preview (but shallnot be permitted to touch the Lot except when necessary and with theCompany’s consent. The same shall apply hereinafter). Any person who places
a bid does so at his own judgment and responsibility, having due consideration
for the condition of the Lot (including any defects).
③ The Company may ask any person desiring admittance to the preview topresent proof of identity, and may, at its discretion and without explanation,refuse admittance thereto.
(Catalogues)1Article 4. The Company shall prepare catalogues providing information on Lots anddistribute the same to prospective buyers at a price.
② Illustrations contained in the catalogues are intended solely for the purposeof identification and reference, and may not be taken to accurately represent
the color or shape of the Lot nor to indicate the conditions or qualities thereof.
The Company shall in no way be responsible for any discrepancy between theillustrations contained in the catalogues and the actual objects.
③ The descriptions and comments that appear in the catalogues (such as artist,
title, material, restorations, signature, size, time and place of production,
expert opinion, provenance, bibliography) are compiled by the Company withdue care and attention. Nevertheless, these descriptions and comments
appear solely for the reference of prospective bidders, and with the exceptionof the case prescribed in the Article 19, the Company shall in no way be
responsible for any errors in the statements made or any discrepancies
between the catalogue descriptions and the actual object. Prospective bidders
shall inspect and examine the actual objects at the above-mentioned preview
and shall place a bid at their own examination and on their own responsibility,
having formed their own judgment with respect to the matters contained in
the descriptions and comments.
④ The Company may publish the appraised value of the Lot in its catalogues.
The appraised value is given as the range between a high and low figure
designated in yen (and does not include the buyer’s premium andconsumption tax thereon.) The appraised value shall appear solely for thereference of prospective bidders based on what the Company considers
appropriate, taking factors such as present market conditions into account.
In view of the very nature of an auction, the actual sales price shall in no way
be determined by the appraised value. Therefore, the actual price may beeither more or less than the appraised value. However, no sale shall be madeat a price below the reserve price (which shall be confidential and which neednot be less than the appraised value) provided for in Article 21.
(Changes to Catalogue Entries)
Article 5. Descriptions and comments in the catalogues are subject to change without
notice. Any change shall be posted in writing at the auction site or announced
orally by the auctioneer immediately before the auction of the Lot in question.
In the case of any changes, the auction shall be regarded as having been2

conducted according to the terms as changed.
Section II AUCTION PROCEDURES(Bidder Registration)
Article 6. Any person who wishes to be admitted to the auction site and to place a bid
must register his name (in the case of a corporation, the names of thecorporation and its representative) and address. If he acts as an agent or
messenger for a principal (including a person who places a bid for a corporation,
the same shall apply hereafter), he must register the name and address of his
principal and his own name and address. Any agent or messenger shall submit
a proxy from the principal (Paragraph 5 of Article 8 below shall be applied foran agent or a messenger). Registration shall be conducted prior to the date ofauction.
② The Company may from time to time request appropriate identification frompersons who wish to register.
③ The Company may, at its discretion and without explanation, refuse to allow
any person to register or refuse to admit any person to the auction site,
including persons who have completed registration.
④ Persons who have registered in advance shall obtain confirmation of theirregistration at the reception desk on the day of the auction.
(Bidding Paddles)
Article 7. The Company shall distribute numbered paddles to registered persons at thereception desk on the day of the auction.
② The numbers on the paddles allow the auctioneer to identify individual bidders.
If the auctioneer asks a bidder to make his paddle easily visible, the bidder
shall comply with the auctioneer’s instruction.
③ A bidder shall at all times remember his paddle number and pay attention to
the numbers which the auctioneer calls from time to time.
④ Any person who has received, but subsequently misplaced his paddle shallimmediately inform the clerk in charge of the particular auction site.
Furthermore, any person who has received a paddle shall return it when theauction is closed or anytime he leaves the auction site.
(Method of Auction)
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Article 8. The auction shall be presided over by an auctioneer appointed by the Company
and conducted as a series of progressively higher bids in the manner described
below. The bid price shall not include the buyer’s premium and theconsumption tax thereon. A bidder agrees to pay to the Company upon the
conclusion of any sale the premium and consumption tax thereon, as prescribedin Article 12.
② The Company shall not announce the name of a consignor or the reserve priceif the reserve price has been placed according to Article 21, except where theconsignor’s consent has been obtained.
③ The auction shall progress in sequence following the numbers of the Lot (“LotNumber”) in the catalogue. However, the Company may withdraw a scheduled
Lot from the auction without prior notice, or auction separately a number ofLots originally listed under the same Lot Number, or auction altogether Lots
originally listed under several Lot Numbers.
④ The auctioneer shall have discretion in the conduct of the auction and shall becompletely free to set the opening bid and the increment of each successive bid.
(Where the reserve price has been placed according to Article 21, the opening
bid shall be set regardless of the reserve price and may fall below or exceed it.)
⑤ Every bidder shall be deemed to act as principal unless he has notified theCompany that he acts as an agent or messenger for another party for which
the Company has given approval. Furthermore, two or more persons shall not
be permitted to bid under a joint name.
⑥ Bids can be made by raising a paddle or by gesture (such as signs, gestures,
nodding of the head). If the auctioneer appears to have overlooked a bid, thebidder shall immediately attempt to get his attention.
⑦ Bids may be placed in writing or by telephone as well as by personal attendanceat the auction. Bids in writing shall be subject to Article 10 and those by
telephone subject to Article 11.
⑧ The Company shall, in order to attain the reserve price defined in Article 21,
bid on behalf of the consignor until a bid from another bidder reaches orexceeds the reserve price. It may do so either through the auctioneer or in any
other manner the Company may deem appropriate at its discretion.
⑨ The auctioneer may, at his discretion, refuse any bid without explanation.
⑩ Any person who has placed a bid shall be bound by that bid until a higher one
is placed (including a bid by the Company as referred to in Paragraph 8). If ahigher bid is placed, the previous bid shall become null and void, except if the4higher bid shall be invalidated due to a refusal by the auctioneer or othercircumstances in which case the previous bid shall remain binding.
⑪ A bid shall also become null and void if it is refused by the auctioneer, or if theauction closes without reaching the reserve price, or if the relevant Lot is put
up for re-auction by the auctioneer.
⑫ When the auctioneer calls the highest bid price, which he has recognized fromamong the bid prices, three times and lets the hammer fall, a contract of salefor the highest bid price shall take effect between the Company and the highest
bidder, who shall then become the purchaser. A bidder who has become apurchaser as above shall be hereinafter referred to as “the successful bidder”
and the price shall be hereinafter referred to as “hammer price”.
⑬ If the highest bidder wishes to withdraw his bid before the hammer falls, thedecision whether the highest bidder or the next highest bidder shall become
the purchaser is at the discretion of the auctioneer.
⑭ Any question or dispute concerning the auction shall be settled by theauctioneer at his discretion, and all parties involved shall abide by his decision.
Where a question or dispute arises, the auctioneer at his discretion, may:refuse a bid, decide the highest bidder, continue the auction and accept further
bids, or declare all previous bids on the Lot in question null and void and put
the Lot up for re-auction.
⑮ No one shall be permitted to make any protest once the successful bidder has
been decided and the auctioneer has begun the auction of the next Lot.
(Written Confirmation of Bid)
Article 9. At the auction site immediately after the conclusion of the sale, the successful
bidder shall, after confirming the Lot Number and the hammer price describedin the confirmation of bid, affix his signature or seal to the confirmation of bid
upon the demand of the Company. If the bidder is a corporation, the person
acting as the agent or messenger of the corporation shall state the name of thecorporation and affix his signature or seal. Provided, however, that any saleshall be concluded at the time of the fall of the auctioneer’s hammer and thatthe confirmation of bid shall be made solely for record purposes.
② If the successful bidder fails to affix his signature or seal to the confirmation ofbid immediately in accordance with the preceding Paragraph, the auctioneer
may, at his discretion, rescind the sale forthwith and place the Lot in question
up for re-auction. In such case Paragraph 1 (4) of Article 18, shall apply mutatis
5mutandis.
③ The Company shall deliver to the successful bidder a Lot exchange slip after
he has affixed his signature or seal to the confirmation of bid. The successful
bidder shall, upon receipt of the Lot, deliver to the Company the lot exchange
slip. The Lot exchange slip shall operate solely as a certificate of discharge andshall serve no other purpose. The same shall apply for the Lot exchange slip as
referred to in Articles 10 and 11.
(Bids in Writing – Order bids)
Article 10. A bid may be placed in writing by facsimile or by the internet systemdesignated by the Company in advance. A bid placed in writing, by facsimile
or by the internet system designated by the Company shall be hereinafterreferred to as a “written bid.”② A written bid shall be submitted to the Company at least two working days
before the auction by describing therein accurately the name (in the case of acorporation, the names of the corporation and its representative) and addressof bidder, the Lot Number, and the maximum bid price the bidder is willingto place (excluding the buyer’s premium and the consumption tax thereon),and by affixing the signature or seal of the bidder to the same. A written bidthat does not include a maximum bid price shall be deemed invalid.
③ The Company shall bid on behalf of any person who has placed a written bid,and may do so either through the auctioneer or in any other manner theCompany may deem appropriate at its discretion.
④ A person who has placed a written bid may become the successful bidder if his
maximum bid price exceeds both the highest bid price of other bidders andthe reserve price, in which case the hammer price shall be equal to the second
highest bid price or the reserve price, whichever is higher, plus an appropriate
increment decided by the auctioneer. In such a case, as is the case with a bid
in person at the auction site, the sale contract shall be concluded at the time
when the auctioneer decides the purchaser by hammering the Lot down to thehighest bidder.
⑤ If two or more written bids for the same Lot offer the same price, precedence
shall be given to whichever was received first by the Company. If two or moresuch bids are received at the same time and the Lot in question is knocked
down at the bid price described under the preceding Paragraph, the successful
bidder shall be decided by lottery later.
6⑥ The Company reserves the right to refuse, at its discretion and without
explanation, any written bid, and the Company shall in no way be liable forany failure of the notification of its intention to refuse the bid to reach thebidder except in the case of intentional misconduct or gross negligence by theCompany.
⑦ The Company shall in no way be liable for failure to execute a written bid at
the auction, whether through error or any other cause (including a case inwhich the Company fails to execute a written bid under the events outlined
in Paragraph 3 of Article 8) except in the case of gross negligence by theCompany.
⑧ In the case of changes in catalogue descriptions or comments in catalogues as
outlined in Article 5, any written bid shall be deemed as having been placed
according to the terms of the changed description and comments. The
Company shall do its best to notify written bidders of any relevant changes,
but it shall in no way be liable if such notification fails to reach the written
bidders in advance except in the case of intentional misconduct or grossnegligence by the Company.
⑨ The Company shall promptly notify any written bidder of his having becomea successful bidder. Immediately upon receipt of such notice, the successful
bidder shall deliver to the Company a confirmation of bid to which he has
affixed his signature or seal (in the case of a corporation, the names of thecorporation and its representative) after confirming the Lot Number and thehammer price set forth in the confirmation of bid. Provided, however that any
sale shall be concluded at the time of the fall of the auctioneer’s hammer andthat the confirmation of bid shall be made solely for record purposes.
Thereafter, the Company shall deliver a Lot exchange slip. The successful
bidder shall, upon the receipt of the Lot, deliver to the Company the Lot
exchange slip.
⑩ When Article 8 or 10 of the Consumer Contract Law takes precedence overthis Article of The Terms and Conditions, the Company shall apply theappropriate provisions of the Consumer Contract Law in accordance with
Article 28 of The Terms and Conditions.
(Telephone Bids and Live Bidding System)
Article 11. Bids may be placed through telephones and internets installed at the auctionsite.
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② Any person who intends to place bids by telephone shall apply to theCompany in advance and shall be subject to the Company's instructions. In
such case, Paragraph 6 of Article 10 shall apply mutatis mutandis.
③ The Company shall in no way be liable for failure to execute a telephone bid
at the auction, whether through error or any other cause (including a case inwhich the Company fails to execute a telephone bid under the events
outlined in Paragraph 3 of Article 8), even if the bidder has already applied
to bid by telephone and his application has been approved by the Company
except in the case of intentional misconduct or gross negligence by theCompany.
④ When a person who has placed a bid by telephone has become a successful
bidder, the successful bidder shall immediately deliver to the Company aconfirmation of bid to which he has affixed his signature or seal (in the caseof a corporation, the names of the corporation and its representative) after
confirming the Lot Number and the hammer price set forth in theconfirmation of bid. Provided, however, that any sale shall be concluded at
the time of the fall of the auctioneer's hammer and that the confirmation ofbid shall be made solely for record purposes. Thereafter, the Company shalldeliver a Lot exchange slip. The successful bidder shall, upon the receipt of
the Lot, deliver to the Company the Lot exchange slip.
⑤ Any person who intends to place bids by live bidding system shall comply
with Terms and Conditions of Live Bidding System posted on our website, in
addition to The Terms and Conditions.
⑥ When Article 8 or 10 of the Consumer Contract Law takes precedence overthis Article of The Terms and Conditions, the Company shall apply theappropriate provisions of the Consumer Contract Law in accordance with
Article 28 of The Terms and Conditions.

Section III SUCCESSFUL BIDDER(Purchase Price)
Article 12. The successful bidder shall pay, in addition to the hammer price, an amountcalculated according to the following Subparagraph as the buyer’s premiumand the consumption tax thereon. (The combined sums of the hammer price,
the premium, and the consumption tax thereon shall hereinafter be referred8to as “the purchase price.”)(1) 16.5% of the hammer price(Payment Period of Purchase Price)
Article 13. The successful bidder shall pay the purchase price within ten days (except for
Saturdays, Sundays, and holidays as defined in the National Holidays Act)after the day of the auction. Such period shall be hereinafter referred to as“the payment period”. Payment will only be accepted during the Company’s
hours of business. Payments shall be made in Japanese yen by check drawn
on a bank as defined in the Banking Act or by remittance transferred to oneof the following accounts (in which case the remittance must reach thedesignated account within the payment period):

Bank Name: Ginzadori Branch of Mizuho Bank
Account Name: SHINWA AUCTION CO., LTD.
Account Number: Ordinary deposit No. 2483416
Bank Name: Kyobashi Branch of Bank of MUFG Bank
Account Name: SHINWA AUCTION CO., LTD.
Account Number: Ordinary deposit No.0658207(Delivery)
Article 14. The Company shall deliver the Lot to the successful bidder after the purchaseprice has been paid in full. Provided, however, that if the successful bidder
owes any debts to the Company that have fallen due (including miscellaneous
expenses defined in Paragraph 3 of Article 16), the Company shall not deliver
the Lot until the purchase price and all such debts have been fulfilled. The
purchase price and all other debts owing to the Company that have fallen due
shall be hereinafter called as “the total amount due.”② The successful bidder shall receive the Lot within the payment period after
having paid in full the total amount due.
③ The place of the delivery of the Lot shall be at the premises of the Company,
and any expenses for receipt of the Lot shall be borne by the successful bidder.
The Company shall in no way be liable for any accidents to the Lot (including
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destruction, loss, theft, damage, or soiling) after the time of delivery (whichshall mean the time at which the Company delivers the Lot to the successful
bidder, to his agent or messenger, or to a carrier at the Company) except in
the case of intentional misconduct or gross negligence by the Company. If theCompany arranges a carrier upon request of the successful bidder, sucharrangement is made solely as a courtesy, and the successful bidder shall takeout appropriate insurance. The Company shall in no way be liable for any
accidents (including destruction, loss, theft, damage, or soiling) after the timeof delivery or for its selection of carrier except in the case of intentional
misconduct or gross negligence by the Company. The successful bidder shallat his own judgment, responsibility, and expense-make such packaging as heshall deem proper. The Company may, before delivering the Lot, pack the Lot
in a manner it deems appropriate, but this is intended solely as a courtesy,
and the Company shall in no way be liable for such packaging except in thecase of intentional misconduct or gross negligence by the Company.
④ The successful bidder may inspect the Lot at the time he receives the Lot.
Regardless of whether the successful bidder actually inspects the Lot, when
the Company delivers the Lot to the successful bidder (or to his agent or
messenger, or to a carrier), the successful bidder shall neither make any claim
against the Company nor terminate the sales contract for any mistake in the
Lot he has received, or for any damage or soiling thereof after the time ofdelivery except in the case of intentional misconduct or gross negligence by
the Company. This provision shall not prevent the Company from requiring
the return of any object that the Company has mistakenly delivered.
⑤ The successful bidder shall, upon receipt of the Lot, deliver to the Company
the Lot exchange slip. When the Company receives the Lot exchange slip, theCompany shall be relieved of any liability even if a party other than the
successful bidder receives the Lot (except in the case of intentional
misconduct or gross negligence by the Company).
⑥ When Article 8 or 10 of the Consumer Contract Law takes precedence overthis Article of The Terms and Conditions, the Company shall apply theappropriate provisions of the Consumer Contract Law in accordance with
Article 28 of these Terms and Conditions.
(Risk of Loss and Transfer of Ownership)
Article 15. The successful bidder shall bear any risk of loss of the Lot after the conclusion10

of sales (when the auctioneer hammers the Lot down to the highest bidder),which means that the successful bidder shall bear any loss, destruction, theft,damage, or soiling of the Lot not attributable to impropriety by the Company.
② Ownership of the Lot shall not be transferred to the successful bidder until
he pays the total amount due in full and the Company delivers the Lot to him.
Ownership shall be transferred to the successful bidder at the time of thedelivery of the Lot after the total amount due has been paid in full.
(Miscellaneous Expenses)
Article 16. The successful bidder shall not be required to pay any storage or insurance
charges for the duration of the payment period (or if the Company delivers
the Lot before the expiration of the payment period, until the time of thedelivery).
② If the successful bidder is unable to receive the Lot within the payment period,
he shall pay all storage and insurance charges from the expiration of thepayment period until the time the bidder receives the Lot. In any such case,
the Company shall not be required to take out insurance.
③ The storage and insurance charges to be borne by the successful bidder shallbe referred to as “miscellaneous expenses.”(Stolen and Lost Property)
Article 17. If, before the delivery of the Lot, a third-party claim that the Lot is lost or
stolen property of which he is the rightful owner and demands its restoration,or if it is discovered that the Lot is of a type whose sale or possession isprohibited by law, the Company may rescind the sale without notice. In any
such case, if the Company has received payment of the purchase price, it shallrefund the purchase price without interest, and the successful bidder shallnot make any further claims against the Company, including any claim fordamages.
② If the Superintendent General of the Metropolitan Police Department, theChief of Prefectural Police Headquarters or the Chief of Police Station directs
the Company to keep the Lot in its custody for a set period in accordance with
Article 21 of the Secondhand Articles Business Act, the Company shall notdeliver the Lot until the expiration of that period. In any such case, the phrase“within ten days after the day of the auction” in Article 13 shall be replaced
11

by the phrase “within three days after the expiration of the period of custody
set by the Superintendent General of the Metropolitan Police Department,
the Chief of Prefectural Police Headquarters or the Chief of Police Station.”
The replacement phrase shall apply in defining “the payment period” as it
appears in Article 14, 16 and 18. Furthermore, the Company shall in no way
be held responsible for the consequences which may result from any delay inthe release of the Lot.
(Default of successful bidder)
Article 18. If the successful bidder fails to pay the total amount due within the payment
period, the following Subparagraphs shall apply:(1) The successful bidder shall pay damages for delay at an annual rate of
18%, (in cases in which the Consumer Contract Law is applicable, at anannual rate of 14.6%) on the unpaid amount of the purchase price(excluding the consumption tax thereon) from the day following the
expiration of the payment period until the total amount due (including all
miscellaneous expenses) is paid in full (or, if the contract is terminated inaccordance with Subparagraph (3) hereof, until the day of termination).
(2) The Company shall at its discretion take custody of the Lot in whatevermanner it deems appropriate after the expiration of the payment period.
The Company shall in no way be liable for destruction, loss, theft, damage
or soiling of the Lot for any reason whatsoever prior to the receipt by thebidder of the Lot, nor shall the bidder be relieved of any obligation to pay
the total amount due except in the case of intentional misconduct or grossnegligence by the Company. The Company shall not be required to insure
the Lot for such period.
(3) The Company may terminate the sales contract if the successful bidder
fails to pay the total amount due upon receipt of a demand notice from theCompany. Notwithstanding the above, provided the Company has sent a
demand notice to the address of the successful bidder registered with theCompany or of which the Company has been notified by the bidder, in thecase where the demand notice remains undelivered because the addressee
is absent or unknown or where the successful bidder refuses receipt
thereof, the Company may still terminate the sales contract. In such a case,the sales contract shall be deemed terminated as of the time the Company
sends a notice of termination to the address of the successful bidder agreed
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to in advance.
(4) If the sales contract is terminated in accordance with the preceding
Subparagraph (3), the Company may sell the Lot to a third-party either byauction or a privately negotiated contract, in which case no reserve priceshall be placed. In such a case, should the aggregate sum of the sales priceby auction or sale contract, the buyer’s premium defined in Article 12
herein, and the consumption tax thereon be less than the original purchaseprice, the defaulting bidder shall pay the Company the difference, and thedamages for delay, at an annual rate of 18% (in cases in which theConsumer Contract Law is applicable, at an annual rate of 14.6%) fromthe day of that auction or conclusion of the sales contract until the amountis paid in full. On the other hand, if the price is higher than the original
purchase price, the defaulting bidder shall not make any claim whatsoeveron the difference.
(5) If the sales contract is terminated in accordance with the preceding
Subparagraph (3), the Company may return the Lot to the consignor at
the request of the consignor. In such a case, the defaulting bidder shall pay
the Company the buyer’s premium which the defaulting bidder had to pay
for the Lot defined in Article 12 herein, and the consumption tax thereon,
and the damages for delay, at an annual rate of 18% (in cases in which theConsumer Contract Law is applicable, at an annual rate of 14.6%) fromthe day of the auction until the amount is paid in full.
② When Article 8 or 10 of the Consumer Contract Law takes precedence overthis Article of The Terms and Conditions, the Company shall apply theappropriate provisions of the Consumer Contract Law in accordance with
Article 28 of The Terms and Conditions.
(Guarantee of Authenticity)
Article 19. If the Company's catalogues identify the artist of the Lot conclusively andwithout qualification (this excludes any catalogue entry that states that there
is disagreement as to the artist or indicates that attribution is speculative or
implies that the artist cannot be identified), and it is later established to thesatisfaction of the Company that the Lot is not the work of the artist, theCompany shall at the request of the successful bidder terminate the sales
contract andrefund the purchase price subject to the

Subparagraphs:
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following(1) The successful bidder may claim a refund only if, within (and only within)
one year of the day of the auction, he submits to the Company a documentthat satisfies the Company as to the day of the auction, the Lot Number,the hammer price, and proof that the Lot is not the work of the artist towhom it is attributed in the catalogue. Only the successful bidder (not a
general or limited successor) may make such a claim, and the right may
not be transferred to a third-party.
(2) No termination and refund shall be made if the catalogue attribution was
one generally accepted in scholarly or specialist circles at the time of theauction, or if the mistake in attribution was established by a method ofscientific analysis that was uncommon or unknown at the time of theauction, or if the analysis can only be performed at great expense, or if
the analysis involves damage to the object and is therefore rarely used.
(3) The successful bidder shall make any claim within three months (in cases
in which the Consumer Contract Law is applicable, within one year) of
the date that he learned that the Lot was not the work of the artist towhom it was attributed in the catalogue (and must also submit proof ofthat date), but－in any case－within the one-year period specified in
Subparagraphs (1) of this Article.
(4) A termination and refund shall be made only if the successful bidder isin complete ownership of the Lot and transfers the ownership in its
entirely to the Company, and only if the Lot is returned to the Company
in the same condition as it was at the time of the auction. Provided,
however, that the Company shall be under no further obligation to pay
interest, damage, or compensation of any kind of beyond the refund.
Section IV CONSIGNMENT(Consignment)
Article 20. Any person who intends to consign a Lot to the Company for sale by auctionin the Company’s name shall apply for sale by consignment subject to The
Terms and Conditions as well as to the Agreement on Sale by Consignment
as separately specified by the Company.
② The consignor shall guarantee to the Company that he has either complete
ownership of the Lot to be consigned or the legal right to consign the Lot forsale based on complete ownership.
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(Reserve Price)
Article 21. The consignor may place a reserve price (minimum selling price). The reserve
price shall be designated in Japanese yen.
② If a reserve price is placed, the Company shall not sell the Lot at a priceless than the reserve price, except as specified in Paragraph 1 (4) of Article
18 .
③ The reserve price may not exceed the ceiling price of the appraised value④ The reserve price, if placed, may not be changed without the consent of theCompany.
(Withholding of Name)
Article 22. The Company shall not divulge the name of the consignor either at the auction
or in the catalogue without the consent of the consignor.
Section V MISCELLANEOUS(Changes to Terms and Conditions)
Article 23. The Company may change any of The Terms and Conditions. Any suchchanges shall be announced orally by the auctioneer on the day of the auction
immediately before bidding begins for the first Lot and shall take effectforthwith.
(Prohibition of Transfer of Rights)
Article 24. No right or position in regards to the Company under The Terms andConditions shall be transferred or be provided as security.
(Limitation of Liability)
Article 25. The Company shall not be liable for any damages for any reason in the casethat The Terms and Conditions provide for non-liability of the Company.
② The Company shall in no way be liable for any damage in the case that suchdamages are caused by fire, natural disaster, war, disturbance, nuclear fuels,or labor disputes.
③ If the Company is obliged to take custody of the Lot for the successful bidder
and if the Lot is destroyed, lost, stolen, damaged, or soiled by negligence by
the Company that does not fall under any of the previous Paragraphs, the15Company shall, in relation to the successful bidder, be subject to thefollowing:(1) If the Lot is destroyed, lost, stolen, or seriously damaged or soiled, thesales contract between the Company and the successful bidder shall
automatically be terminated, and the successful bidder shall be relievedof any obligation to pay the purchase price. If the Company has alreadyreceived the purchase price, the Company shall return the purchase pricewithout interest. The successful bidder may not claim any damages
whatsoever.
(2) If the damage to or soiling of the Lot is not serious, the Company shall
reduce the purchase price in proportion to the degree of such damage orsoil. The successful bidder may not claim any damages whatsoever
beyond the reduction.
(3) The burden of proof of damage or soiling shall be on the successful bidder.
(4) The Company shall in no way be liable for its custody of frames and glass,and shall not be liable for any destruction, loss, theft, damage, or soilingthereto except in the case of intentional misconduct or gross negligenceby the Company.
(5) The amount of damages to be paid by the Company under this Paragraphshall be appropriated by insurance money to be received by the Company
based on the damage insurance contract concluded between the Company
and the insurance company.
④ Except as otherwise provided in the preceding Paragraphs, the Company
shall in no way be liable for any damages except in the case of intentional
misconduct or gross negligence on the part of the Company. If the Company
is to be liable for its intentional misconduct or gross negligence, the range ofcompensation for the loss shall be limited to the extent of the damages
reasonably foreseeable to the Company at the point in time when theintentional misconduct or gross negligence occurred.
(Qualification restriction)
Article 26. The Company will not cooperate or do business with any person or entity ofthe type described in any of the following Subparagraphs.
(1) A person or entity that engages in or has the intent of engaging in any
activity such as money laundering; or that engages in or has the intent ofengaging in raising funds making use of illegal or improper methods,
16inappropriate pressure, or violence; or within the past five years has
engaged in or has the intent of engaging in any conduct of an anti-socialgroup or member (hereinafter referred to as an anti-social group or
member). Such groups or members include, but are not limited to: anorganized crime group, a member or associate member of an organizedcrime group, a corporation related to an organized crime group, a groupthat engages in criminal activities under the pretext of conducting social
campaigns or political activities, and a special intelligence organizedcrime group.
(2) A person or entity that participates in an auction accompanied by an antisocial group or member, or that intends to let an anti-social group or
member participate in an auction by introduction.
(3) A corporation in which a director or auditor belongs to an anti-socialgroup.
(4) A person or entity that uses threatening behavior or violence with regard
to business with the Company.
(5) A person or entity that damages the Company’s trust by spreading a false
rumor; or uses trickery, deception, or inappropriate pressure; orinterferes with the Company’s activities in any way.
(6) A person or entity that does not adhere to the Company's Terms andConditions or its rules.
② The Company shall cancel business with any person or entity that, in the
Company’s sole judgment, meets any of the descriptions in the
Subparagraphs above and shall refuse to do business with any such personor entity now and in the future.
(Applicable Law)
Article 27. The Terms and Conditions shall be governed by and interpreted under thelaws of Japan, and any matters not provided for herein shall be subject tothe laws of Japan.
(The Consumer Contract Law)
Article 28. Where applicable, the Consumer Contract Law takes precedence over The
Terms and Conditions. In addition, The Terms and Conditions shall be readand applied in accordance with other civil laws of Japan.

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(Jurisdiction)
Article 29. Any lawsuit arising under this agreement shall be brought exclusively in theTokyo District Court of Japan.
Article 30. This English translation of the original document in Japanese is provided forthe convenience of customers; however, in the case of any discrepancy
between the English and Japanese versions or any question of interpretation,
the Japanese document shall control.

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