Scherbakov Boris Valentinovich (Russian, 1916-1995) Pskov. The tower Gremyachaya. 1934 Canvas on

RULES OF HOLDING AUCTIONS

LLC Antiquarian Galleries "KABINET"

The present rules of holding auctions contain all conditions, on which Antiquarian galleries "Kabinet" and their buyers make transactions. In the rules changes can be made in relation to scope of auction, these changes are published in the catalogue, or orally appear before the beginning of the auction.

1. General provisions.

Organizer and participants of the auction.

Forms of participation in the auction

1.1. Purpose of carrying out biddings is realization by the organizer of the auction to any interested persons (participants of the auction) of objects of art and culture.

1.2. The organizer of the auction is  a Society with limited liability Antiquarian galleries "KABINET" (further Antiquarian galleries or Antiquarian galleries "KABINET").

1.2.1. The organizer is guided in his activity by the current legislation of the Russian Federation.

1.2.2. During the auction the organizer acts through the auctioneer, the rest of the time – through the employees (representatives).

1.2.3. Antiquarian galleries "Kabinet" act as the agent of the Seller.

1.3. The participants of auction can be:

1.3.1.

- full age and completely capable natural persons - residents and nonresidents of the Russian Federation;

- legal entities (including nonresidents of Russian Federation).

1.3.2. Before registration of the demand for internal participation in auction, and also demands for the correspondence participation in auction and participation by phone, the staff of Antiquarian galleries has the right at its discretion to request from the potential participant the following documents:

from natural persons:

- the original of the passport for making its photocopy;

- the letter of guarantee of the bank confirming existence of means on the account of the potential participant;

- the monetary deposit at a rate of estimates of the lots announced or minimum fixed payment of 25000 rubles;

- written guarantee from a person, already being a conscientious client  of Antiquarian galleries;

from legal entities:

- the letter of guarantee of bank confirming existence of means on the account of the potential participant;

- the written guarantee from the person, already being the conscientious client of Antiquarian galleries;

- the notarized power of attorney from the legal entity;

- the guarantee letter demand with the indication of requisites of the legal entity;

- the document confirming powers of the head of the legal entity.

1.4. Internal participation in auction.

1.4.1. For internal participation in auction the participant is obliged to be registered (to issue the request for participation) before the auction and to receive a bid card.

1.4.2. The bid card is the only certificate confirming the right for internal participation in the auction.

1.4.3. If the participant allows the use of the bid card by the third party, he/she bears responsibility for actions of the participant, as for his/her own.

1.4.4. Filling in the registration questionnaire with receiving a bid card, the participant confirms the consent with the rules of holding the auction and the irrevocable obligation to pay the objects acquired by him/her.

1.5. Correspondence participation in auction.

1.5.1. In case of impossibility of personal presence of the participant at the auction, he/she has the right to leave (or to send by fax)  to the organizer of the auction a completed order form on the correspondence participation (assignment), having specified number of the interesting lot, its name and ceiling price for it no later than 24 hours prior to the auction.

1.5.2. The organizer of the auction is obliged to accept the assignment and to give it the mark about the date and time of its receiving.

1.5.3. In case two assignments with the identical maximum sums are received for the same lot, is considered winning that participant, whose assignment was received first.

1.5.4. The organizer of auction who received the application for the correspondence participation in auction undertakes to get for the buyer lots at minimum possible price within the price declared in the assignment.

1.5.5. Having directed the application for participation in the correspondence auction with the indication of the maximum sum, which the buyer is ready to pay for the object interesting for him, he confirms irrevocable responsibility to pay the object in due time in case if the sum declared is the highest among offered.

1.5.6. Implementation of written demands is free service which is rendered taking into account other obligations at the time of preparation and tenderings. Antiquarian galleries don't bear responsibility for non-performance of the written offer and mistakes or omissions in connection with it.

1.6. Participation in the auction by phone.

1.6.1. In case of impossibility of personal presence on the auction is acceptable participation of the participant in auction by phone. For this purpose it is necessary to leave the corresponding application for participation in the auction on the form of the correspondence bid, having specified numbers and names of the lots chosen by him/her no later than 24 hours prior to the auction.

1.6.2. Prior to the auction to this participant is given a number which is an equivalent of a bid card.

1.6.3 The employee of Antiquarian galleries who will represent his/her interests in the course of auction сontacts him/her on the chosen lots by the specified telephone number prior to the auction.

1.6.4. All rights and obligations for the bargain concluded during biddings by the employee of Antiquarian galleries in interests of the participant by phone, are applied directly to the participant. Having directed the application for participation in the telephone auction, he confirms the irrevocable obligation to pay the object in due time.

1.6.5. Antiquarian galleries "Kabinet" offer for convenience of the clients all the services on the telephone auction at own expense, but do not bear responsibility for mistakes or not implementation of offers by phone, and also do not bear responsibility for  communication quality.

1.7. Representation at the auction.

1.7.1. During the auction participants can represent the interests personally, and through their representatives.

1.7.2. Representatives of the participants have to provide a notarized power of attorney for the right of participation in the auction, and representatives of legal entities, besides, – the letter of guarantee of the organization addressed to the organizer of the auction with the obligation to pay the lot (lots) bought.

1.7.3. In case the purchase is not made, on request of representatives of participants, the specified documents can be returned.

1.7.4. In case of purchase of objects at auction by the representative of the third party in person, the relation to payment is shown to the principal.

2. Procedure of the auction

2.1. Information on auction objects, acquaintance with it.

2.1.1. The source of official information about the objects offered for the sale at the auction is the auction catalogue.

2.1.2. All objects put up for sale are presented at a preview exhibition, terms and location of which are specified at the beginning of the catalogue.

2.1.3. Objects are represented on the auction in that state in which they arrived to the auction, that is "as is"

2.1.4. Prior to the auction participants of the auction have to examine attentively the lots interesting for them and in case of need get advice about the condition of a lot and ask questions to the staff of Antiquarian galleries. The staff of Antiquarian galleries do not draw expert opinions.

2.1.5. Antiquarian galleries publish the detailed catalogue with the description of objects. The description made in the form of accompanying articles of the catalogue has informational character. The description of the condition of an object – damages, losses or restoration - is provided in articles of the catalogue only for the general data. The assessment of the condition of  an object can be made by the buyer or his representative competent in the field, or the expert only during personal survey on pre-auction display. Antiquarian galleries don't bear responsibility for any mistakes and absence of any historical, accompanying or other information in articles with the description of objects.

2.1.6. The participant makes the decision on purchase independently, on the basis of personal survey of the object.

2.1.7. After holding the auction claims on quality and condition of lots aren't accepted and aren't considered as the basis for refusal of payment of the bought lots. The buyer is obliged to pay the purchase made by him according to the rules established by Antiquarian galleries.

2.1.8. The order of the catalog is carried out:

- by phone: + 7 (499) 238 07 84;

- by fax: + 7 (499) 238 29 30;

- by e-mail: auktion@kabinet.com.ru.

2.2. Tendering order

2.2.1. Lots are put up for sale in that order in which they are presented and numbered in the catalogue.

2.2.2. The organizer of auction reserves the right to withdraw from the auction any lot without explanation.

2.2.3. Putting a lot up for sale, the auctioneer declares his number, the name and the starting price.

2.2.4. In case there is a  correspondence bid for the lot, the auctioneer reports about this fact.

2.2.5. After the announcement by the auctioneer of the price of a lot, the raising by the participant of the auction of  his/her number card means his/her unconditional and irrevocable consent to buy this lot at the price declared by the auctioneer.

2.2.6. Each subsequent raising of the card means a consent of the participant to get the lot at the price exceeding the final called price for one step.

2.2.7. If the auctioneer doesn't declare other, a step by which the lot price in the course increases

the auction, makes 10%. The auctioneer reserves the right to establish other step during the auction, having in due time declared it to participants of auction.

2.2.8. Raising of the number card by the person acting by proxy, and also by the employee of Antiquarian galleries, participating in the auction in interests of the other person by phone, generates the rights and duties directly at the person in which interests the representative or the employee of Antiquarian galleries acts.

2.2.9. The refusal of execution of the obligation for payment of goods and objection based on excess by the representative of his powers or incorrect interpretation of will of the principal is inadmissible.

2.3. Definition of results of the auction and their registration

2.3.1. On the last blow of the hammer of the auctioneer the buyer and the final price of the sold lot are defined. The participant, who is the last  raising the number card, or offering a ceiling price in the correspondence bid is considered winning.

2.3.2. If the highest offer of the price, recieved from the participant who is present in the hall, is equal to the offer of the price of the correspondence bid, the participant who left the correspondence bid is considered winning.

2.3.3. From the moment of the last blow of the hammer the transaction on purchase and sale is considered closed, refusal from it or promotion of any additional conditions and objections from the participant or the person in which interests he acts, are not possible.

2.3.4. After the end of auction the participant who won the auction signs at the secretary of the auction the account and receives on hands its copy comprising the characteristics of acquired at the auction subject, purchased cost and information on the order and conditions of payment.

2.3.5. If on the traded lot there are no offers (no number card was lifted) and there are no correspondence instructions, it is withdrawn from the auction.

2.4. Other conditions

2.4.1. During tendering  it is forbidden to of auction carry out any sort of advertizing campaigns, photo, video both filming and audio recording without  the consent of the organizer. Violators of this requirements are removed from the hall and lose the right of further visit of auctions of Antiquarian galleries "Kabinet".

2.4.2. The organizer of the auction reserves the right to refuse to any person participation in the auction without explanation.

2.4.3. All disputes on payment and other questions between participants and Antiquarian galleries are solved by negotiations, or in a judicial proceeding in the location of Antiquarian galleries.

3. The procedure of payments and export of the acquired goods.

3.1. Procedure of payments.

3.1.1. The prices of lots are specified in rubles of the Russian Federation. Payment of the acquired lots is made in rubles.

3.1.2. Payment of cost of the acquired lot can be made during the auction, right after them, or during the next 7 calendar days.

In this case, to the price of the object reached during biddings the commission to the organizer of the auction of 10% of the sale sum is added.

If the buyer makes payment from 8 to 14 day after holding the auction, the commission makes 12%, and at payment from 15 to 21 day - the commission makes 15%.

3.1.3. The commission is paid by the buyer along with payment of cost of the acquired lot. The price of acquisition includes all taxes and fees, except for the collecting connected to movement of the bought lots out of borders of the Russian Federation.

3.1.4. Payment of cost of the acquired lot can be made during the auction, right after it, or during the next 7 calendar days.

3.1.5 The property right to the object (objects) acquired during the auction, passes to the buyer at the time of final payment of its (their) cost and payment of the commission. Until the final payment of the object(s), it (they) remain at the disposal of organizers of auction.

3.1.6. The acquired objects are given to the participant only after the full payment of the invoice.

Antiquarian galleries have the right to hold the paid objects till obtaining the whole sum which is due to Antiquarian galleries for all the lots acquired by the buyer at this auction.

3.1.7. Sale of objects is signed over by the organizer of auction according to the rules of trade established by the current legislation.

3.1.8. For convenience of buyers the following forms of payment are possible: in cash, non-cash transfer, credit cards (VISA, MasterCard).The payment by credit card can be made only in the presence of the buyer.

If you pay with credit card the organizer raises from the participant of auction in addition 2,57% of the reached subject price at auction taking into account the commission.

3.2. The procedure of Antiquarian galleries in case of non receipt or  delay of payment for the acquired objects.

3.2.1. In case after 21 calendar days from the date of the auction the bought lots aren't paid by the participant in whole or in part, the organizer of the  auction has the right to add for the unpaid sum a penalty fee of 0,7% for each day of payment delay.

In case the buyer of a lot makes an advance payment for the lot and doesn't make final payment for it within 21 days, the buyer's advance payment remains at the Organizer. Thus the Object of art is considered not sold and comes back to the Seller or is transferred to post-auction sale.

3.2.2. In case of a payment delay for the term of more than 60 days Antiquarian galleries have the right to cancel the transaction and to demand from the buyer the compensation of the sum of the commissions which are due as from the buyer, and from the seller according to Regulations of Admission of goods to biddings of Antiquarian galleries "Kabinet".

3.2.3. Antiquarian galleries have the right, without resorting to cancellation of the transaction, to bring the buyer who didn't make payment to responsibility at a rate of all sum which is due from him/her and to begin a trial on collecting it together with the percent, legal cost and expenses, according to the current legislation.

3.2.4. Antiquarian galleries have the right to make offset of any sums which can be due to the buyer from Antiquarian galleries on account of the rest or repayments of the unpaid sum.

3.2.5. Antiquarian galleries have the right not to allow the buyer who didn't pay purchase on the subsequent auctions of Antiquarian galleries "Kabinet", and also not to accept the demand from his name on the correspondence participation in the auction or on participation in the telephone auction.

3.2.6. All disputes on payment between the buyer and Antiquarian galleries are solved by the way of negotiations, or in a judicial proceeding in the location of Antiquarian galleries.

3.3. The procedure and terms of export of the acquired subjects.

3.3.1.The buyer is obliged to take bought and completely paid objects within 7 calendar days after the final payment.

3.3.2. For each next day of storage the buyer is obliged to make additional payment to the organizer of the auction of 0,3% from purchase costs for every day of storage.

3.3.3. Export of the subjects acquired at auction is made by means of the buyer.

The Antiquarian galleries do not deliver and do not prepare the necessary documents for export.

According to the legislation of the Russian Federation, to export the objects of art made more than 50 years ago, it is necessary to obtain the permission from the Ministry of Culture of Russian Federation.

To obtain this permission, an individual who exports the object of art should personally apply to the Ministry of Culture. The auction house does not provide such documents. If you purchase a lot, you (or your representative who will export the item) have to obtain the permission from the Ministry of Culture or from agent. You can not obtain these documents by means of the power of attorney. You can contact the company "Aurora" to clarify the details and ask for delivery. Their contacts: www.auroraltd.ru; e-mail:auroraltd@mail.ru  

3.3.4. In case purchases aren't taken away within 7 calendar days from the moment of the auction, irrespective of payment implementation, Antiquarian galleries have the right to take out property on storage and to give out to the third parties at the expense of the buyer objects only after full payment of expenses of export and storage of objects.

4. Guarantees and obligations of Antiquarian galleries "KABINET"

4.1. Antiquarian galleries "Kabinet" grants to everyone the right of the preliminary survey of all lots presented on the auction

4.2. The organizer of auction undertakes to take all necessary measures to provide to participants of auction reliable information about objects (lots) offered for sale. (See point 2.1.3., 2.1.4.)

4.3. The statement of the participant that the acquired object can be a fake can be shown to the organizer in writing during one year from the date of holding the auction. The participant who made a complaint in relation to the sale of this object, has to provide not less than two separate independent expert opinions issued by state museums or research establishments of the Russian Federation, corresponding to the scope of the auction.

4.4. If it is convincingly proved that the subject bought at auction of Antiquarian galleries "Kabinet" is a modern fake, the subject has to be delivered to organizers in the same state in what it was sold in day of the auction, without any changes and interventions. Antiquarian galleries "Kabinet" stores photos of the sold objects and their characteristic elements. Organizers of auction consider opportunity to compensate the means spent by the buyer, except for cases when:

- the description in the catalogue corresponds to the conclusion of recognized experts, acting at the time of the auction;

- the fake was revealed by scientific examination, technically impossible on the date of sale, or which could lead to damage of the object.

Means can be paid for such subject by Antiquarian galleries to the buyer after receiving funds of Antiquarian galleries from the initial owner of a subject (commitent) who handed over the object on Auction.

4.5. The participant has no right to demand compensation in a size exceeding the price paid by the buyer and to apply for compensation of additional losses and moral damage.

4.6. Guarantees extend only to the direct participants of the auction who received the relevant documents from organizers about acquisition of the object at the auction.

The returned subject has to be exempted from property claims that is confirmed by his owner.

4.7. Antiquarian galleries "Kabinet" guarantee the confidentiality of the data on names and location of clients, and also about the lots acquired by them and their cost.