Online Bidding Rules

L&H Auction Company Limited (hereinafter referred to as "L&H Auction") offers "L&H online Auction" platform to facilitate our bidders, who must make real-name registration. A user of our online auction platform should manage his account properly, his conduct shall be deemed as his personal conduct. The account user shall be liable for consequences of participation in bidding by the user's account logged in by the others. The following terms and rules are applicable to L&H Auction, consignors of lot and buyers.

1.         Registration

A prospective buyer who intends to participate in online bidding activities of L&H Auction must complete the online account registration three working days prior to the start of the auction, and to pay the security deposit to the account designated by L&H Auction two working days prior to the start of the auction, and then upload the payment receipt to the online auction platform of L&H Auction to complete the registration procedures. Also, after completion of the deposit payment procedures on the online auction platform of L&H Auction, and after having obtained the confirmation by L&H Auction, then the user shall be allowed to participate in bidding. Should L&H Auction fails to confirm receipt of the applicant bidder's payment of security deposit two working days prior to the start of auction, L&H Auction has the right to refuse the application to participate in the online bidding by such user. If the bidder already has an online account, he should log in with his existing user name and password. Re-registration is not allowed.

2.         Registration Documents Requirement

Prospective buyer should, during the registration process, provide personal data and necessary documentary proofs as required by our company. Should the prospective buyer fail to complete the registration within the required time period, failure to participate in budding and consequences as such shall be borne by the prospective buyer. The prospective buyer should truthfully complete the required information. If the prospective buyer is bidding in his own name, he must upload his valid identity card /passport or the relevant valid identification document recognized by the government, and also provide proof of current address such as utilities or telecommunication bills, or correspondence issued by the bank, insurance company or government departments (the date of issuance must be within the recent three months), as well as other information as required by our company during the registration process. Should the prospective buyer is bidding in the name of a company or some other organization, he must provide the valid company registration document, the authorization letter signed by the shareholders or directors of the company or organization, the identification documents of the company's agent or principal, as well as other information as required by our company. Should the bidder needs to appoint an agent to operate his online account; the bidder should submit an authorization document to authorize the agent of the bidder as well as the identification document of the agent. If L&H Auction is in doubt about the identity or financial status of the applicant for online bidding, or that the applicant fails to submit the required information and document, our company has the right to refuse the application of such user to participate in the bidding.

3.         Security Deposit

An online bidder should pay L&H Auction a Security deposit of minimum HK$30,000 in order to participate in the session of online bidding. The deposit must be paid by cheque, bank transfer, telegraphic transfer of cash to the designated account of our company, and then upload the payment receipt to the online bidding platform of L&H Auction to complete the registration procedure. L&H Auction does not accept payment effected by any third party, including the payment effected by an agent. Should our company fail to receive the security deposit and payment receipt from the bidder within the designated time period, the bidder's application to bid online shall be deemed void. Our company has the right to require the bidder to provide the bank information used for payment.

After the closure of Auction, should the bidder be unsuccessful in the bidding, and there is no payment to L&H Auction in arrears our company shall process the refund procedure for the security deposit within 10 working days from the end of the auction. The security deposit shall be returned in full without interest to the bidder's account through the original payment channel. This time limit shall not be applicable in case of technical adjustment of network operation or network failure. The successful bidder should settle the auction payment (that is, the hammer price, the buyer's premium and any applicable tax item and amounts) within 15 days after the auction. Failure to pay up the auction payment within the set time period shall be deemed as violation of contract. L&H Auction has the right to confiscate the deposit, and hold the violator fully accountable. For details of our company's designated account, please peruse paragraph 17 of these rules.

4.         Notice Given Before an Auction

The auctioneer would give Saleroom notice announcement before the start of auction or before the start of the bidding session of the relevant lot. It is the bidder's own responsibility to give attention to all the notices given at the auction venue. It is recommended that the bidder should log onto the online bidding platform of L&H Auction before the start of auction, to ensure that the bidder can receive the notices given before the start of auction.

5.         Pre-set Bidding Price

After the bidder's application is confirmed by L&H Auction, the bidder can log onto the online bidding platform in person, and pre-set a maximum bidding price in the auction. When the bidders place a maximum bidding price in the "Place an advance bid" slot on the L&H online bid platform, this indicates that the bidder agrees that the price is the maximum bid which the bidder offers. When the auction starts, the system will start bidding on behalf of the bidder from the initial price. Once his bid is exceeded by other bidders, the system would base on the current bidding price, automatically offer a bid with a fixed increment pre-set by the system, until the bids by other prospective buyers exceed the bidder's pre-set maximum bidding price. The bid offered by the bidder in the online bidding indicates his acceptance of the rate of increment, while the final bidding result shall be the price confirmed by L&H Auction. L&H Auction assumes no responsibility for unsuccessful purchase in the auction or any occurrence of mistake, negligence, error, network failure etc. during the bidding process. Should two or more clients offer the same "maximum bidding price", priority shall go to the first bidder who successfully inputted the bidding price.

6.         Placing instant online bid during Live Auction

During the auction process, after the bidder set a price in the "Bid" slot, his agreement to participate in the bidding with such price shall be deemed. Successful transmission of such from the bidder's computer to our company constitutes the bidder's acceptance of and agreement to our company's business rules and regulations, as well as confirmation that the bidding price submitted in this format would not be changed, the bidding would not be withdrawn, and agree to buy by paying the full price, including the hammer price due for the buyer, the buyer's premium, any applicable tax items and other fees. Should there be abnormal bidding caused by such reasons as blockage of network traffic, network techniques etc., L&H Auction has the right to cancel the transaction outcome without assuming any responsibility for any party.

7.         Schedule of Incremental Bidding Prices

The "Online Bidding" platform of L&H Auction pre-sets a schedule of incremental bidding prices for each lot. The auctioneer has the right to change the schedule of bidding price increments in the auction venue and on telephone bidding. However, bidding by online bidders must be in full bid incremental amounts.

8.         Other Relevant Responsibilities of the Online Bidder

The bidder should be responsible for his own action of bidding at any price level. After receipt of such notice as system information, short messages etc. or confirmation by other format of open expression of settlement of purchase sent out by L&H, the deal by auction is closed. The bid at the highest price is irrevocable. The buyer should pay the price (that is the hammer price, the buyer's premium and other applicable tax items and fees) as stated on the invoice (in such format including but not limited to such effective notification methods as system information, short message, fax, telephone, correspondence, email, instant e-messaging etc. generated by the online auction house) to purchase the lot accordingly.

ii)         The bidding prices submitted online by the bidder shall be recorded. In case of dispute, or discrepancy in the bidder's online record against the auction record, the final decision shall be made according to the auction record retained by the auction house.

9.         Power of decision of the auctioneer

The auctioneer has the absolute right to decision to accept any bid including bids from online, by written bids, telephone bids and bidding on-site. The bidding chances are equal for the various bidding formats. The auctioneer retains and owns the right of final decision.

10.      Successful Bid

The bidder is clearly successful at the knocked-down by the auctioneer on the highest bid, or by other format of open expression of settlement of purchase, and the bidder becomes the buyer of the lot. It is also clear that buyer and seller have established an auction agreement. The buyer with the successful bid shall receive a notice and an invoice after the auction. Should there be discrepancy in the information of the lot purchased online and the content of the invoice, the invoice shall prevail. In case the buyer fails to pay according to paragraph 11(iii), the seller can handle the lot and recover the payment due in accordance with paragraph 11(iii).

11.       Buyer's Premium and Payment

In addition to the hammer price, the buyer also agrees to pay L&H Auction a buyer's premium as well as other applicable tax items and funds.

i)          Buyer's Premium

The bidder who has made a successful bid shall become the buyer of the lot. The buyer shall pay a premium to our company, calculated as follows:

In the hammer price of each lot, for the portion at HK$1,000,000 or below, the premium for such a portion is calculated at 19% of such portion; for the portion above HK$1,000,000 to HK$3,000,000, the premium for such a portion is calculated at 17% of such portion; for the portion in excess of HK$3,000,000, the premium for such a portion is calculated at 15% of such portion. The buyer shall at the same times pay our company the various fees due for the buyers. The buyers shall also accept that our company can, in accordance with the terms of the consignment auction agreement, collect commission from the consignor & the various due for the consignor.

ii)         Discount for premium

Buyers who pay up in full all amounts due for the auction by cash, cheque, bank transfer or bank telegraphic transfer within 7 days from the day of auction shall enjoy 2% discount of buyer’s premium.

iii)        Payment Method

The buyer has to pay in full all amounts due for the auction within 15 days from the day of auction, otherwise, the security deposit shall be confiscated. L&H Auction and the seller have the right to withdraw the lot, and to sell such lot in any other way or to recover the funds from the buyer. L&H Auction accepts payment by cash, cheque, credit card (Visa, Master, Union Pay), bank transfer and bank telegraphic transfer. In case the buyer settles the payment after 7 days from the day of auction, an additional interest equivalent to 2% of the total amount of the invoice has to be paid.

12.       Quality and Catelogue of the lot

All lots are sold in their current conditions. Items sold are not returnable or exchangeable. Items are sold at the knock-down of the auctioneer's hammer.

The text descriptions, valuations and pictures in the catalogue of the lots, as well as video products and publicity materials in other formats are for reference only, and do not represent guarantee by L&H Auction on the authenticity, value, colour, quality and flaw(if any) etc. of the lots. L&H Auction assumes no responsibility toward any inaccuracies or omissions in the above descriptions and reviews L&H Auction can revise before the auction. L&H Auction recommends that potential buyers should come forward to appraise the lots in person to make one's own judgment and to understand the conditions of the lots.

Should errors in tone, colour, fineness, shape etc. exist between the actual lot and its images and other formats of illustration, video products and publicity materials due to such cases as printing or photographic technics etc., the actual item shall prevail. L&H Auction assumes no responsibility for the bidder's decision to bid basing on the above colour grading description.

13 .      Estimated

In this catalogue, all price shown in Hong Kong dollars (“$”). The estimated price does not refer to the market value or final price of the lot. Auction valuation is for reference only. Before the start of the auction, L&H auction can adjust the estimated price.

14.       Preview Exhibition

L&H Auction shall hold a public exhibition of all lots before the auction and recommends the buyers to appraise the lots to understand their conditions by visiting the presale exhibition in person. The buyer has to assume responsible for the act of bidding for the lot(s), and should not rely on the description in the catalogue and the illustration in such other formats as video products and publicity materials in decision-making. The buyer expressly accepts in full the current conditions of the lot once a decision to bid is made, and cancellation of contract is not allowed after a successful bid, and complaints relevant to the transacted item are not accepted.

15.       Withdrawal of an Auction Lot

L&H Auction has the right to withdraw any lot before the auction.

16.       Bidding, Refusal and Reserve Price

The successful bidder shall become the buyer of the lot. L&H Auction and the auctioneer have the right to refuse any open bid which is deemed to be too low and withdraw the lot. The hammer price does not include the buyer's premium and other surcharges.

17.       Ownership Right and Risk

The buyer must pay in full the hammer price and the buyer’s premium . After confirmation of acceptance of the funds by L&H Auction, the buyer shall have the ownership right of the auction lot(s). At the same time, the risk of the subject lot(s) will also be transferred to the buyer.

18.       Payment and Terms of Compensation

All payments shall be settled in full within 15 days from the auction. Payment of the hammer price, buyer's premium and any appropriate tax items and funds for the lot shall be made in Hong Kong Dollars by any of the following payment methods:

i)          Bank transfer

ii)         Bank remittance

Name of Bank: HongKong and Shanghai Banking Corporation Limited

Address:1 Queen's Road Central, Hong Kong

SWIFT Code: HSBCHKHHHKH

Payee: L&H Auction Company Limited

Bank Code: 004

Account No.: 053-422283-838

iii)        Cheque

iv)        Credit card

L&H Auction accepts credit card payment by VISA, MASTERCARD or UnionPay. Buyer who effects payment after 7 days from the auction date shall have to pay an additional interest equivalent to 2% of the total amount of the invoice. The buyer should notify the relevant credit card company prior to the auction to minimize any delay arising from authorization issues at the time of payment.

v)         Cash

L&H Auction does not accept cash payments exceeding HK$100,000 (or in equivalent currency).

For payment settled by cheque, bank transfer or bank remittance, confirmation of receipt of funds has to be given by L&H Auction before collection of the item(s).

In case the buyer fails to settle payment of the relevant funds within 30 days, L&H Auction has the right to collect from the buyer an annual interest at 18% of the relevant funds due, and to take one or more of the following remedial measures with no violation of the law:

A)         To bring legal action against the buyer, claim compensation for breach of contract including litigation fees and legal expenses, as well as loss of interest arising from the buyer's delay or refusal to effect payment.

B)         To withdraw the right to sell of the lot, or to resell it to other buyers, however, the buyer would still need to pay the auction premium.

C)         To put the item up for re-auction or private sale, and to bring legal action to claim compensation for the various payment balance as follows:

-           The full payment, litigation fees and legal expenses owed by the buyer.

-           Settlement of all costs and fees with the net income from re-selling the item, the surplus (if any) shall be paid to the owner of the item.

D)        To take custody of the lot, which would be delivered to the buyer only after the buyer has settled payment in full (including buyer’s premium, all direct and indirect storage fees, and interests).

E)         To retain all lots of the buyer.

19.       Transportation and Collection

The buyer can collect the lot(s) at the address designated by L&H Auction after settlement of all payments. L&H Auction can also arrange delivery service for the buyer for address in Hong Kong. L&H Auction assumes no responsibility for such issues and risks arising from customs clearance, damage and/or loss during the transportation process. If buyers request L&H Auction to arrange delivery services for address(es) outside of Hong Kong, L&H Auction would take out full insurance in the name of the buyer for the lot put to delivery, while the insurance premium, transportation fees & packaging fees during the transportation process and export & import taxes etc. shall be paid by the buyer. The buyer should obtain for himself any relevant permit for the import/export of the relevant lot, endangered species or other aspects. Failure or delay in obtaining such permit would not be accepted reasons for the buyer's cancellation of purchase or delay in payment. L&H Auction assumes no responsibility arising from failure to complete or submit the required import/export manifests, lists or other documents. The buyer may request L&H Auction to apply for export license on his behalf; L&H Auction has to right to levy charges for this service. L&H Auction does not guarantee the issuance of export license. L&H Auction and the seller have not made any declaration or guarantee whatsoever on whether the lot is subject to import/export restriction and/or embargo.

Collection address: Rooms 1508-10, 15th Floor, Windsor House, 311 Gloucester Road, Causeway Bay, Hong Kong. (Causeway Bay MTR Station Exit E)

Office hours: Monday to Friday (10:00 a.m. to 6:00 p.m.); Saturday, Sunday and Public Holidays (by appointment only)

Telephone: 852 3168-2192

20.       Limited Liability

i)          Under any circumstances, the liability of our company and/or the consignor shall not exceed the actual purchase price of the lot.

ii)         L&H Auction acts purely on behalf of the interest of the consignor. L&H sells the lot to the buyer offering the highest bid in an auction, while L&H does not offer any bidding advice to the buyer. L&H Auction assumes no responsibility for breach of contract by the consignor and/or the buyer.

iii)        L&H Auction assumes no responsibility for omissions and/or error in this catalogue. L&H Auction assumes no responsibility whatsoever for subsequent use of the information in this catalogue for other purposes by other people. In addition, the copyright of this catalogue belongs to L&H Auction, in case of need to use or change the contents of this catalogue, permission must be obtained from L&H Auction by written request.

iv)        The online bidding service is offered by our company to facilitate our bidders. Our company reserves the right to refuse or withdraw online bidding, and the write to suspend online bidding during the auction period. Our company assumes no responsibility for any errors or failure to bid online during the auction period, including loss of internet connection by any party, or mistake or omission caused by breakdown of the online auction system software.

v)         The bidder should, at the time of registration for online account, fill in his factual, regular and effective correspondence address and contact details. In case of any change, the bidder should notify our company immediately, including but not limited to written notice sent out in the format of correspondence, fax, email, instant messaging, online platform etc. Our company assumes no responsibility for failure of the bidder or buyer to receive our company's notice due to reasons caused not by our company.

21.       Supplementary Terms

Bidders in this auction are aware of and agree to the following terms:

i)          L&H Auction has the right to, before the start of the auction or while the auction is in progress, change the "Online Bidding Rules" either verbally or in writing.

ii)         The relevant contents of the "Online Bidding Rules" of L&H Auction are governed and interpreted according to the laws of the Hong Kong Special Administrative Region.

iii)        The standard version of these rules is in Chinese language, while the English version is for reference only.

iv)        These rules are set and revised by your company, and the corresponding copyright belongs to our company. Unless otherwise permitted by our company, these rules should not be copied, transmitted or saved in any way by any person.

v)         Our company has the absolute right to interpret these rules.

vi)        Should the lots of L&H Auction involve "prescribed article" restricted by the "Mock Auctions Ordinance", bidders shall be notified separately.

22.       Interpretation

Auction:

The auction conducted at 1508-10, 15/F, Windsor House, 311 Gloucester Road, Causeway Bay, Hong Kong

Lot:

All items consigned to L&H Auction and auctioned at the auction. Each lot can be a stand-alone item or a combination of two or more items.

Reserve Price:

An undisclosed minimum price set by L&H Auction and the consignor for each lot.

Hammer Price:

The winning price of a lot in an auction is the highest bid accepted by the auctioneer by knocking of the hammer, which is also the final selling price, buy which does not include the buyer’s premium.

Buyer’s Premium:

Refer to the schedule of fees in the “Online Bidding Rules” of L&H auction, which is the premium payable by the buyer based on the hammer price.

Bidder:

Any party considering, acts, or attempting to bid in any way, the buyer is also included.

Consignor:

The owner or the representative of the owner of a lot offered at the auction, or the company or the authorized person who retains the lot(s) put to this auction.

Buyer:

Any unit, individual person or company who purchased the lot(s) by paying the auctioneer’s hammer price plus the due buyer’s premium.

Auctioneer:

The personnel who auctions the lots on behalf of L&H Auction in this auction.