September 20, 2016
Approved
Director-General of AC “RUSSIAN SABLE” Ltd

CONDITIONS OF SALE
BAIKAL INTERNATIONAL FUR AUCTION

    1. “Auction company “Russian Sable” Limited (hereinafter the “Company”) conducts, as auctioneer, sales of raw wild skins originating from various individuals and legal at Baikal International Fur Auction in Irkutsk ((hereinafter “Auction”). Payments shall be made in US Dollars.
    2. Any individual bidding at the Auction thereby in every respect acknowledges the acceptance of the present conditions of sale. In the event that the individual bids on behalf of another individual or legal corporate entity, he/she confirms that the individual/legal corporate entity on behalf of whom the bid has been made (identified by buyer’s number) accepts these conditions of sale in every respect. For the purposes of these conditions, a Purchaser is the entity who has made or on whose behalf of the bid has been made.
    3. The skins and lots, respectively, are sold as in their actual condition at the fall of the hammer. All information in the issued catalogue and all lots supplied as show bundles are provided without liability and intended to serve only as a guide in connection with the inspection of the skins, which the Purchaser is advised to undertake prior to the Auction. No warranties whatsoever express or implied, are made concerning the composition of the lots, or the quality, condition or suitability of the skins or otherwise. Purchased lots must be accepted by the Purchaser as is at the fall of the hammer, regardless of any faults or defects, which entails that the Purchaser renounces his right to claim for any kind of defects.
    4. Person intending to purchase skins at the Auction, at least 24 hours prior to the commencement of the Auction shall register (fill in and sign a registration form) as a buyer at the Auction , thereby to notify the Auction of his/her intention to comply with the Auction.
    5. The Purchaser shall, upon request, prior to the Auction or thereafter, in a manner specified by the Company pay such deposits or increases of deposits as security for the purchases, as shall be required by the Company. Deposit is paid by a non-cash expense on the account of the Company according to the details specified in paragraph 31 of these terms and conditions or (in the case of payment of the goods in Russian rubles) in cash in the bank’s cash office. The skins are sold ex the Company’s warehouse in Irkutsk, Russia.
    6. The skins are sold ex The Company’s warehouse in Irkutsk, Russia.
    7. The skins are offered and sold in lots. Bids apply to the single skin, the purchase price for the lot being the bid multiplied by the number of skins in the lot. The Company may determine the minimum amount by which bids must be raised. The lot falls to the highest bidder.
    8. Should two or more persons make the highest bid or should a dispute arise concerning the bid, the auctioneer will invite further bids. If this does not lead to a definite solution, the auctioneer is authorized to decide conclusively who is to be deemed the highest bidder.
    9. The Company reserves the right to alter the order of lots to be bid on and to withdraw lots before or during the auction. The Company may refuse to accept a bid from any Purchaser and shall be under no obligation to indicate the reason for its refusal.
    10. Any individual whose bid is accepted by the fall of the hammer is personally liable for payment of the skins purchased and has personal and joint liability for payment of the payment of skins with the individual or legal corporate entity (identified by buyer’s number) – the Purchaser – on behalf of whom the bid has been made.
    11. Notification to the Company by or on behalf of a Purchaser that an error has been made in bidding shall be made on the spot and at the latest before the 20 following catalogue numbers have been offered for sale. Claims made thereafter shall have no legal effect.
    12. On the fall of the hammer the skins are to be considering as bought by the Buyer, but will not be released to the Buyer until the Buyer has fulfilled all his payment obligations set out in the Protocol of trading results, having the force of a treaty.
    13. The skins purchased may neither during the sales or later be transferred from one Buyer’s number to another’s. If the Buyer wishes to transfer the skins to a third party, the Buyer shall notify the Company accordingly and the Company shall determine whether to consent to the transfer. In the case of a positive decision, the Transferee thereby assumes all rights and liabilities of the Purchaser in accordance with the purchase, all in conformity with these sales conditions and other conditions agreed upon between the Company and the Purchaser. The Purchaser shall remain liable for all these obligations until the skins in question have been paid in full and shall be obliged, at the Company’s request, to fulfil such liabilities without prior notification as to any failure of performance on the part of the Transferee or other factors relevant to the purchase of the skins in question.
    14. The buyer pays the cost of goods purchased plus Auction fee – 6% of the cost of purchased goods. Buyer shall provide written terms of the invoice and shipment of goods immediately after the sale, what is set out in the Protocol of trading results. The Buyer must give the Company invoicing and shipping instructions in writing immediately following the sale. The Company undertakes on the Buyer’s instructions to render necessary services for the delivery of the goods to the place of destination, noted by the Buyer in its instructions, including packing, marking, preparing goods for delivery, delivery and insurance of the goods against transport and theft risks during the transportation from the Company’s warehouse to the place of destination and payments of custom’s and other charges inside the Russian Federation. The cost of the above stated expenses as well as the cost of any other expenses in connection with the delivery are included in the Auction fee and make up to 1.5% of the value of the delivered consignment and are to be paid by the Buyer.
    15. The Company does not charge any penalty for the postponement of payment if payment made during 21 days from the last day of auction’s sale. In case the payment is made after 21 days from the last day of auction’s sale, the Company has the right to charge a penalty for the delay in payment at the rate published in the Auction catalog prior to the start of trading. If the payment is not made within 60 days from the last day of auction’s sale The Company has the right to consider the Protocol of trading results null and void and to submit a claim for any losses accrued in connection with it to the Buyer. In this case, a deposit, paid by the Buyer will not be refunded.
    16. If the purchased goods are not exported by the Buyer, the buyer is obliged to indicate this fact in the Protocol of trading results. In this case, the value of the purchased goods will be increased by the amount of value added tax.
    17. Payment for the goods bought for export at the Auction is to be effected in US Dollars, for the goods sold for the internal market are to be paid in Russian rubles under conditions specified in the Auction sale details.
    18. In the event of the Buyer’s special conditions of delivery or payment of goods, they must be agreed by the Company and the Buyer and specified in the Protocol of trading results. In case the Company and the Buyer agree to dispatched skins purchased but not fully paid to the warehouse of forwarding agent of the Buyer on “locked” conditions the above skins shall be held at Company’s disposal until the Buyer fulfill all his payment’s obligation.
    19. The ownership of skins sold shall pass to the Purchaser only after all liabilities towards the Company based upon the purchase have been fulfilled.
    20. In case the Buyer’s liabilities are not fulfilled in time the Company shall be entitled to retain of all the Buyer’s skins until these liabilities are fulfilled. Should the Buyer have any outstanding debt towards the Company for previous sales and in case if The Buyer has a number of similar obligations toward the Company, the Company reserves the right to withhold any lot purchased and paid for by The Buyer according to any other of similar obligations in order to ensure that the Buyer clears all outstanding debts to the Company.
    21. Shipping of sold skins from Company’s warehouse to the place of Buyer’s destination is made after the Auction. The goods shall be distributed in accordance with The Buyer’s instruction in proper rotation and upon fulfillment of the Buyer’s obligations.
    22. The Buyer is entitled to make a claim on the Company for the goods received in intact packing:
      • for quantity – within 15 days from the date of receipt of the goods;
      • for quality – within 30 days from the date of receipt of the goods.
    23. If the Company is prevented from carrying out such delivery by reason of strike, disturbances, intervention by a public authority or other beyond the reasonable control of the Company, the Buyer shall not be entitled to rescind the purchase nor to claim compensation and the Buyer shall fulfill his obligations as soon as the hindrance to delivery has ceased.
    24. Skins still in the Company’s warehouse shall be covered by insurance against fire and burglary at the Company’s expense, but the Company assumes no other responsibility than to compensate the Purchaser – contingent upon the Purchaser’s fulfilment of his liabilities – with the amount of money that is paid by the insurance company.
    25. These conditions of sale are binding. The conditions can only be deviated from if the Company – in each particular case – accepts such deviation in writing.
    26. In case of any dispute between the Company and the Buyer or the third party to which the Buyer might had delegated his rights and liabilities, as well as any other party, which is liable for the goods payment, the substantive law of the Russian Federation shall apply. Any dispute, controversy or claim which may arise out of or in connection with the present contract (agreement, or the execution, breach, termination or invalidity thereof, shall be settled by the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation in accordance with its Rules. Should a dispute connected with the contract performance arise, if the parties to the dispute belong to the member countries of 1980 Vienna Convention, then provisions of the Convention shall be applied to the parties’ relationships, and in the part, which is not covered by this Convention, the rules of substantive law of the Russian Federation shall be applied.
    27. All the provisions established in these conditions of sale shall remain fully valid and applicable regardless of the Company’s failure to exercise one or several of them.
    28. These Conditions have been written in the Russian language and translated into the English language. In any dispute as to the understanding of the interpretation thereof, the Russian text shall prevail.
    29. Parties shall recognize that documents sent or received by fax and electronic communications have legally binding originals.
    30. These conditions of sale are valid as of October 1st 2016, until further notice.
    31. Payment for purchased goods for export and making foreign currency deposits should be effected in US Dollars at the following details:
      AС Russian sable LTD
      a/n 40702840304001001340
      With PJSC “Promsvyazbank”, Siberian Branch, Russia,
      SWIFT: PRMSRUMMNSB
      correspondent account with
      1. JP Morgan Chase Bank, New York
      New York, NY, USA
      SWIFT: CHASUS33
      Account No.400942143
      2. Deutsche Bank Trust Company Americas
      New York, NY, USA
      SWIFT: BKTR US 33
      Account No. 04410090
    32. Payments in Russian rubles should be effected at the following details:

ООО АК «РУССКИЙ СОБОЛЬ»
ИНН 3812119654
КПП 381201001
Р/с 40702810304000017873
В СИБИРСКИЙ Ф-Л ПАО “ПРОМСВЯЗЬБАНК” Г. НОВОСИБИРСК
БИК 045004816
Корр/с 30101810500000000816