Auction Rules

Definitions*

100% Bidder – a participant bidding for 100% ownership of the artwork

Absentee Bid - an offer to buy the entire artwork up to and including the participant’s maximum Asking Price for the entire artwork that was placed during the Pre-auction bidding period.  The system will bid on the participant’s behalf, starting with the lowest possible price up to and including the participant’s maximum Asking Price until the participant has either won the Auction or his maximum Asking Price has been exceeded. 

Asking Price – a representation of a price for the artwork

Auto Bid – a continuous offer to buy at the participant’s Bid Amount (capped at 70% of each Asking Price) up to and including the participant’s maximum Asking Price for the entire artwork. The system bids on the participant’s behalf, starting with the lowest possible Asking Price up to and including the participant’s maximum Asking Price until the participant has either won the Auction or his maximum Asking Price has been exceeded.

Bid Amount – the dollar value offered by a participant in the auction

Bidding Limit – the maximum amount a participant can spend in an auction excluding fees

Current Bid – the most recently filled Asking Price that will win the Auction if the Now Asking price does not fill

Fractional Bidder – a participant bidding for less than 100% ownership of the artwork

Jump Bid – a bid placed by a 100% Bidder that is higher than the Now Asking price. A Jump Bid becomes the new Current Bid and the new Asking Price moves up one increment from the Jump Bid. Jump Bids can only be submitted by telephone or in person and must be accepted by the Auctioneer.

Now Asking – the current Asking Price the Auctioneer is trying to fill

One Time Bid - a one-time offer to buy placed at the Now Asking price for the participant’s Bid Amount

Pre-auction – The [two weeks] prior to the start of an auction when participants can place Auto Bids or Absentee Bids

Reserve Price – the minimum acceptable winning bid set by the seller prior to the beginning of the Auction

Time Priority – Bids are accepted in the order received

General Auction Rules

• EACH BID YOU PLACE ENTERS YOU INTO A BINDING CONTRACT 
• The Pre-auction bidding period starts at [11am ET] [two weeks] prior to the start of the Auction and ends [10 minutes] before the scheduled start time of the Auction
• The Minimum Bid Amount is $5,000 
• The Maximum Bid Amount is calculated based upon the participant’s Spending Limit as determined during the registration process less Auction Fees
• Bidding increments are published on the lot detail page
• Pre-auction bids are automatically submitted by the Auction system
• 100% Bids that are placed via telephone or in-person may be deleted by the Auctioneer if they were mistakenly recorded.  Bids placed online may not be deleted.  
• Fractional Bids are added together until they total the Asking Price and are then submitted into the Auction 
• A Fair Warning or Last Call message will be displayed at the discretion of the Auctioneer after a period of no bidding activity signaling the auction may close soon if no further bids are received
• The Auction ends when the Now Asking price cannot be filled
• When the Auction ends the Current Bid becomes the winning bid unless the Reserve Price has not been met or the artwork has been withdrawn from the Auction

Fractional Bidders

Pre-Auction

• Only Auto Bids are accepted during the Pre-auction bidding period

The Bid Amount for Auto Bids can be set at any amount but will be capped at 70% of each Asking Price (See Auction section below for more details)

• The system acknowledges receipt of Pre-auction bids and their time of receipt 
• Bids may be modified or canceled during the Pre-auction bidding period
• Participants only see information about their own Pre-auction bids
• Pre-auction bid submissions

Bids at each Asking Price are accepted via Time Priority until the Asking Price is filled

Participants are notified at the end of the Pre-auction bidding period as to whether their Pre-auction bids are accepted

Each Asking Price filled by Fractional Bidders will be displayed to all Bidders

Auction

• Fractional Bidders may only bid online
• Fractional Bidders can bid on a One Time or Auto Bid basis
• ~One Time Bids are submitted at the Now Asking Price when the “Confirm Bid” button is clicked
• ~The Bid Amount for Auto Bids can be set at any amount but will be capped at 70% of each Asking Price.  For example, if the Now Asking price is $900,000 and the participant sets a Bid Amount of $1,000,000 until the Asking Price exceeds $1,100,000, the Fractional Bid submitted will be $450,000 at the $900,000 Asking Price, $500,000 at $1,000,000 Asking Price and $550,000 at $1,100,000 Asking Price, respectively.  
• Once the Now Asking price is filled (either by Fractional Bidders or a 100% Bidder) no additional bids are accepted at that Asking Price
• ~The last Fractional Bid placed at an Asking Price may be prorated to the remaining unfilled dollar amount 

Modifying a Bid

• Any bid that is part of the Current Bid may not be modified or canceled
• Any bid that is part of the Now Asking price may not be decreased or canceled
• A One Time Bid in the Now Asking price may be increased
• Auto Bids
• ~An Auto Bid may be canceled for future Asking Prices above the Now Asking price 
• ~Canceling an Auto Bid does not cancel the bid in the Current Bid or the Now Asking price
• ~Modifications to the Bid Amount and/or the maximum Asking Price
• ~The Bid Amount may only be increased
• ~The maximum Asking Price may be increased or decreased

100% Bidders

Pre-Auction

• Only Absentee Bids are accepted during the Pre-auction bidding period
• The system acknowledges receipt of Pre-auction bids and their time of receipt
• Bids may be modified or canceled during the Pre-auction bidding period

• Participants only see information about their own bids

• Application of Absentee Bids in the Auction
• ~At the close of the Pre-auction bidding period, only the first bid at each Asking Price will be accepted
• ~Participants will be notified at the end of the Pre-auction bidding period as to whether their Pre-auction bids are accepted
• ~The Auctioneer and system will submit Absentee Bids with the goals of obtaining the artwork at the lowest possible price AND maximizing the Absentee Bidder’s probability of winning by
• ~~Submitting the Absentee Bid at consecutive Asking Prices and/or
• ~~Splitting any bid increment to allow the Absentee Bid to be submitted at the highest possible Asking Price 

Auction

• 100% Bids may be placed online, via telephone or in-person
• 100% Bids placed during the Auction may not be modified or canceled
• Only telephone and in-person participants placing 100% Bids may place Jump Bids at the Auctioneer’s discretion

Modifying a Bid

• 100% One Time Bids may not be modified or canceled once entered or accepted by the Auctioneer
• 100% Jump Bids may not be modified or canceled once accepted by the Auctioneer
• Absentee Bids
• ~Absentee Bids that are the Current Bid may not be canceled
• ~Absentee Bids for Asking Prices above the Now Asking price may be canceled
• ~The maximum Asking Price may be increased or decreased

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