This Rapaport Supplier Agreement (the “Agreement“) is entered into by RAPAPORT DIAMOND CORPORATION , 1212 Avenue of the Americas, Suite 801, New York 10036 (together with its successors and assigns hereinafter “Rapaport“), and the undersigned Supplier. This Agreement and all terms and conditions herein shall govern and control all contractual relationships between the parties under and in terms of which diamonds and/or jewelry (“Merchandise“) is supplied by the Supplier to Rapaport for the sale of such Merchandise by way of auction, tender or immediate sale (“Buy-Now“) (hereinafter referred to collectively or individually as “Sale“). For the purposes of this Agreement, “Supplier shall include Supplier and also any undisclosed principal for whom or on whose behalf Supplier may be acting as an authorized agent.

IT IS AGREED AS FOLLOWS:

  1. Terms and Conditions

    • Receipt of Goods; Estimated Value of Merchandise.
      • Upon the Supplier's delivery of the Merchandise to Rapaport, the Supplier shall inform Rapaport in writing of the estimated value of the Merchandise (the “Estimated Value“):
      • Upon receipt of the notice of Estimated Value, Rapaport shall notify the Supplier of any disagreement regarding the Estimated Value within three (3) Business Days; and
      • If such disagreement cannot be resolved within three (3) Business Days, Rapaport shall immediately return the Merchandise to the Supplier, and such Merchandise shall be deemed rejected by Rapaport, unless otherwise agreed upon in writing with the Supplier.
    • Sale Process. Rapaport and the Supplier agree as follows:
      • The date, place and time of the Sale shall be agreed by both parties.
      • The names of all bidders/buyers shall remain confidential to Rapaport.
      • In the case of Sale by auction or tender:
        1. The amount of bids shall remain confidential to Rapaport, except that highest bids will be disclosed to Supplier after the close of the auction.
        2. Unless otherwise mutually agreed, Rapaport will not disclose the winning bid amounts to the bidders.
      • In all events, unless Supplier has elected the option described in Section 4(d) below, in which case, subject to the terms of that section, Rapaport guarantees return of the Merchandise or payment to Supplier of the high bid/buy-now price minus commission due under this Agreement (“Sale Fee“) and agreed expenses and Rapaport shall have no right to levy any claim, lien or charge over the Merchandise.
      • The Merchandise shall continue to be the property of the Supplier, until payment in full has been received in respect of the Merchandise, subject however, to any liens imposed to secure any such Supplier Advance in the event Supplier elects to enter into a Supplier Advance, as described in Section 4(d) below.
      • Acceptance of bidders/buyers and permission to bid/buy is granted at the sole discretion of Rapaport and subject to approval by Rapaport. Rapaport, in its sole discretion and acting reasonably, reserves the right to limit viewing of the Merchandise and refuses to accept bids/offers from any party for any reason. In addition, Rapaport reserves the right to refuse to sell any particular lot if the highest bid received is deemed by Rapaport and/or Supplier, in their sole discretion, to be insufficient.
      • If payment is not made by a successful bidder/buyer (“Buyer“), Rapaport reserves the right to cancel the bid and/or Sale. All Sales are final and no returns are accepted after delivery under any circumstances. In the event of defaultby the Buyer, Rapaport at its sole discretion reserves the right to cancel the sale, and/or take legal action against Buyer and/or offer the goods to the second highest bidder/alternate buyer who is under no obligation to accept the Merchandise provided however that the Merchandise cannot be sold by Rapaport at a price that is not agreed by the Supplier or authorized by paragraph 3(l) (ii), subject, however, to the terms of any Supplier Advance.
      • In the event of any dispute, error or for any other reason deemed necessary by Rapaport, Rapaport in its sole discretion reserves the right to withdraw any lot from the Sale and/or refuse any bid/offer or cancel any sale. If Rapaport withdraws any lot or cancels any Sale, the withdrawn lot or Merchandise subject to such Sale shall be promptly returned to Supplier, subject however to the prior payment in full of any Supplier Advance.
      • The Supplier shall pay the user fee tax for the importation of the Merchandise calculated at 0.3464% of the estimated value of the Merchandise. Rapaport shall have the right to deduct the user fee tax and any other taxes due from the sale of the Merchandise from the proceeds of the sale. The Merchandise shall be at the Supplier's risk until collected by Rapaport's courier and thereafter at the risk of Rapaport.
      • In New York, auctions and tenders will be conducted by auctioneer Penina Rapaport (New York City Department of Consumer Affairs (DCA) license number 1439768).
  2. Rights and Obligations of Rapaport

    • Rapaport undertakes to manage completely the Sale of the Merchandise on behalf of the Supplier, which includes:
      • Marketing of the Sale to relevant buyers;
      • Qualifying of bidder/buyers;
      • Accepting bids from present and absentee bidders/buyers, including internet/emailed bids/offers;
      • Creating catalog of lots and the bidding/sale forms;
      • Providing a location for viewing;
      • Attending to management and supervision of viewing;
      • Making due disclosure to all bidders that treated, synthetic, laser drilled, or simulated items may be in the lots and that they must carefully check the Merchandise. Conditions of sale will be AS-IS
      • Returning to Supplier any undisclosed treated, synthetic or simulated items, at Supplier's cost;
      • Drafting, enforcing and interpreting Sale terms and conditions (to which Supplier agrees to be bound by execution of this Agreement) for participants;
      • Taking complete management and control over the bidding/sale procedures, bid forms and bid opening procedure in accordance with the Supplier's instructions;
      • Sending notifications to bidders and buyers;
      • Collecting of all funds, and management of delivery of diamonds and /or jewelry to buyers after money received. Terms of sale will require that funds be remitted to Rapaport by Buyer no later than seven business days from end of the Sale;
      • Making payment of funds to Supplier and providing a full statement of purchase for each Sale and copies of documentation of all Merchandise sold including the actual purchase price in the form and at the time mutually agreed between the parties; and
      • Providing comprehensive and adequate insurance (against risks including the loss or damage of the Merchandise) for all Supplier's Merchandise that is covered at a minimum to the stated insurance value of the Merchandise. Such insurance shall cover the Merchandise from the time Rapaport accepts receipt of the Merchandise to the time the Merchandise is shipped to the Buyer or Supplier.
    • Rapaport guarantees that at all times Rapaport will either have Supplier Merchandise on Rapaport premises, or in its possession, with full insurance at the Estimated Value, or have the funds in Rapaport's bank account in anticipation of payment to or for the benefit of Supplier for the Merchandise. Rapaport shall also ensure that reasonably adequate security measures and controls are in place to protect the Merchandise whilst the Merchandise is held at Rapaport risk.
    • Rapaport shall indemnify and hold the Supplier harmless against any all loss, liability, costs, expenses, damages, losses or penalty suffered or incurred by the Supplier in connection with any material breach or non-compliance by Rapaport of its representations, warranties or obligations under this Agreement.
    • Rapaport warrants and represents that any Sale of the Merchandise will be conducted in compliance with all applicable laws and with all required licenses.
    • The proceeds of any Sale shall be held in trust by Rapaport for payment to or for the benefit of Supplier in accordance with this Agreement, including in the event Supplier elects a Supplier Advance, in accordance with the terms of Section 4(d) below.
    • Supplier shall be notified at the address for Supplier provided herein within 72 hours of any Sale and shall be paid by Rapaport strictly in accordance with the terms of this Agreement.
    • Notwithstanding delivery to Rapaport, title to the Merchandise shall remain in Supplier until passing directly from Supplier to the Buyer receiving any Merchandise from Rapaport as part of a completed Sale.
    • Rapaport represents and warrants to Supplier that, subject to any liens arising from a Supplier Advance pursuant to Section 4(d) below, the Merchandise, until sold, will be kept, free of all liens, claims and encumbrances including, but not limited to, claims of governments or governmental agencies;
    • Unless otherwise mutually agreed, Rapaport will pay or cause the payment of all shipping charges and import and export taxes related to international shipping f the Merchandise from one auction location to another for the purpose of such Merchandise participating in a Sale. Without limiting the foregoing, Supplier shall be responsible for payment of all shipping charges and import and export taxes related to international shipping of Merchandise to and/or from Supplier.
    • Rapaport agrees to notify Supplier promptly in writing within 24 hours of any events or circumstances that may cause any of Rapaport's representations, obligations or warranties under this Agreement to be inaccurate or breached in any way.
  3. Rights and Obligations of Supplier

    • Supplier warrants that as of the date of the Sale:
      • It has complete and lawful right, title and interest in the Merchandise and has full rights to sell the Merchandise. To the extent that any Merchandise offered for Sale are not owned by Supplier, Supplier warrants that it is duly authorized to sell such Merchandise on behalf of its rightful owner.
      • The products are being fairly and honestly offered for sale.
      • There will not be any willful misrepresentation of Merchandise for sale.
      • No treated, synthetic, laser drilled, or simulated diamonds and/or jewelry will be knowingly included in any Supplier Merchandise.
      • No glass, cubic zirconium (“CZ“) or other non-diamond products shall be knowingly offered as diamonds.
    • Full disclosure shall be made by Supplier if the Supplier knows that the Merchandise contains any treated, synthetic, laser drilled, or simulated diamonds and, if this be the case, Supplier must indicate at the time of submission of the goods whether it is uncertain if any Merchandise contains any glass, CZ or other non-diamond products.
    • Supplier acknowledges that in the event that Supplier's Merchandise is found to contain undisclosed treated, synthetic, laser drilled or simulated diamonds in breach or violation of the Supplier warranty given above in Section 3(a) then Rapaport will be obligated to report any such fraudulent activity to the relevant authorities.
    • Supplier shall notify the auctioneer, his or her agents, principals, employees, employers or assignees in the event of any defect in title.
    • Supplier will not sell or offer for sale any of the Merchandise submitted to Rapaport from the date of submission until the Sale is closed.
    • Supplier may remove Merchandise from a Sale once submitted provided (a) that the Supplier reimburses Rapaport of any costs that arise from such withdrawal, and (b) if Supplier has elected to receive a Supplier Advance, as described in Section 4(d) below, any such Supplier Advance shall have been paid in full.
    • Legal and Ethical Compliance:

      Supplier declares that to the best of the Supplier's knowledge:

      • All diamonds and metals submitted for Sale have been purchased from legitimate sources not involved in funding conflict and in compliance with United Nations resolutions and the Kimberley Process and have been sourced in compliance with all local laws to which Supplier is subject.
      • Based on personal knowledge and/or written guarantees from its suppliers, to the best of the Supplier's knowledge, no diamonds or metals offered for Sale are connected in any way with any human rights violations (i.e. the mining or other means of production and refinement of the diamonds or metals did not involve murder, rape, physical violence or forced servitude).
      • No diamonds or metals offered for Sale are traded in violation of U.S sanctions or sourced from Marange, Zimbabwe or from other sources or locations banned or prohibited by Rapaport as informed to Supplier from time to time.

        PROVIDED HOWEVER, that Rapaport acknowledges that it is aware that the Supplier may obtain Merchandise offered for Sale from time to time through a retail pawnbroking and jewelry buying business. As such Supplier may not be able to ascertain whether any of the Merchandise which Supplier obtained from such sources contains diamonds or metals derived from the sources mentioned in this section.

    • The warranties, representations and declarations of Supplier herein shall constitute a continuing binding obligation of Supplier to Rapaport and its affiliates in respect of all Merchandise supplied and offered either for Sale in terms of this Agreement, or through any other sales channel provided by Rapaport or any of its affiliates, now or at any time in the future. In the event of any breach or violation of these Supplier warranties, representations and declarations, Rapaport shall be entitled to a full cash refund against return of any Merchandise found to be in violation thereof.
    • Without limiting the generality of the foregoing, it is specifically agreed that in the event after the Sale, any Merchandise is found to be treated, synthetic, laser drilled or to contain simulated diamonds in breach or violation of the Supplier warranty given above, then Rapaport and/or the Buyer of the Merchandise shall be entitled to cancel the Sale immediately, return the affected Merchandise to the Supplier at the Supplier`s cost and receive a full cash refund of the part of any or all amounts relating to the returned Merchandise which may have been paid to or on behalf of Supplier in respect of the Sale of said Merchandise.
    • Supplier will pay all reasonable shipping and insurance expenses necessary to deliver the Merchandise to Rapaport or return Merchandise to Supplier in the event it is not sold.
    • Supplier will prepare parcels with proper weights, descriptions and insured value in a timely manner and deliver them to Rapaport's office in accordance with mutually agreed time frames.
    • Supplier will supply Rapaport with a sales tax resale certificate, and/or assist Rapaport in obtaining any other government issued licenses/registration as required by Rapaport for purposes of Patriot Act Anti-Money Laundering compliance purposes.
    • In the case of sale by auction or tender:
      • Supplier and Rapaport may agree on reserve prices on a lot by lot basis. For goods offered without reserve, after the auction closes, Rapaport will notify Supplier of the highest bid on each lot in question and, with respect to each such lot, Supplier shall have the right to either accept the highest bid on the lot or to refuse the highest bid on the lot. If Supplier refuses the highest bid on a lot, Rapaport shall thereafter promptly return the Merchandise in such lot to Supplier, subject to the repayment of any Supplier Advance in the event Supplier has elected the option described in Section 4(d) below.
      • For goods offered with reserve, Supplier hereby agrees that bids in excess or equal to the reserve price may be accepted and Rapaport will sell to the highest respective Rapaport will accept bids of up to 5% below the reserve price and supplier will be notified of any high bids that are within 5% of meeting the reserve price and has the right to either accept or refuse that bid. If Supplier refuses the bid, Rapaport shall thereafter promptly return the Merchandise in such lot to Supplier, subject to the repayment of any Supplier Advance in the event Supplier has elected the option described in Section 4(d) below.
    • In the case of a Buy Now sale:
      • Supplier shall set forth a final immediate sale price (the “Buy Now Price“) for each lot submitted for a Buy Now sale (a “Buy Now Item“). Rapaport reserves the right to examine the Buy Now Items, as well as review the Buy Now Prices, and reject Merchandise from submission to a Buy Now Sale, at its sole discretion.
    • For all Merchandise sold, Rapaport will provide Supplier with a resale certificate, which for sales tax purposes, evidences that the Merchandise was purchased for resale and a full statement of purchase for each Sale in the form and at the time mutually agreed between the parties.
    • Rapaport and Supplier agree that Supplier is not responsible and will not be charged any additional fees, costs, surcharges, tariffs or advertising costs; any actual expenses or costs incurred by Rapaport associated with conducting the Sale other than the Sale Fee provided for herein, and except for agreed expenses in relation to the expense of insured shipping of the Merchandise to Rapaport premises and the insured return of any unsold Merchandise to Supplier from Rapaport premises and agreed boiling, sorting, refining and certification fees.
    • Supplier shall indemnify and hold Rapaport and its affiliates harmless against any all loss, liability, costs, expenses, damages, losses or penalty suffered or incurred by Rapaport or its affiliates in connection with any breach or non-compliance by Supplier of its representations, warranties or obligations
    • Supplier agrees to notify Rapaport promptly in writing within 24 hours of any events or circumstances that may cause any of its representations, obligations or warranties under this Agreement to be inaccurate or breached in any way.
    • Supplier acknowledges and agrees that an interested third party beneficiary of all warranties and representations made by Supplier under this Agreement is the ultimate purchaser of the Merchandise submitted by Supplier to Rapaport for sale.
  4. Payment Structure

    • Rapaport will be paid a Sales Fee as follows:
      • For Jewelry sold by Auction or Tender : A commission equal to 10% of the total sale price (highest bids);
      • For diamonds entered in Melee Auctions : A commission equal to 5% of the total sale price (highest bid) subject to a minimum commission of $25.00 per lot sold at auction;
      • For diamonds entered in Single Stone Auctions and Buy Now Sales : A commission equal to 5% of the total sale price (highest bid) subject to a minimum commission of $25.00 per lot for single stone lots sold at However, in the case of GIA graded round brilliant cut diamonds submitted which meet the following criteria: .50ct or greater, K+ color, SI2+ clarity, VG-EX cut/polish/symmetry, and none-faint fluorescence (“K+SI2+“), the 5% aforementioned commission will be reduced to a 3% commission.
    • Sorting Costs and Other Charges.

      • Rapaport undertakes, at Supplier`s option and expense, to provide a sorting service of Supplier's Merchandise, prior to the sale thereof, based on size, color, and clarity, provided such service is agreed to by Supplier and Rapaport.
      • If such sorting service is elected by Supplier, Supplier shall pay Rapaport a $1.50 per carat fee for the services rendered.

        1. In the event that Supplier opts not to make use of such service in respect of Supplier`s Merchandise offered for sale and they are not to be sorted, then Supplier agrees that the following shall be applicable:

          a) For any parcels that are found to contain at least 2% CZ, moissanite or other non-diamond material, Supplier shall pay Rapaport a $0.50 per carat fee. Supplier shall be liable for said fee regardless if a Sale should eventuate, or if the Merchandise is returned.

      • For all Merchandise sent to boil on behalf of Supplier, Supplier shall pay Rapaport a $0.50 per carat fee based on the total pre-boil weight of said Merchandise. Supplier shall be liable for said fee regardless if a Sale should eventuate, or if the Merchandise is returned. Rapaport agrees not to send any Merchandise to boil without Supplier consent;

    • Rapaport Refining and Stone Removal Services
      • For all merchandise sent for refining on request and behalf of the Supplier the following terms will apply:
        1. Refining charges and metal return rates will be agreed upon and signed on an Addendum to this Agreement.
        2. Should the Supplier request a stone removal service, upon completion of the refining, all diamonds will be available for return to Supplier or submitted to a Sale subject to the diamonds meeting all auction requirements as specified in the Agreement.
        3. Any non-diamond material recovered from the stone removal service will be available for return to Supplier upon request. If the Supplier does not request this non-diamond material from Rapaport within 30 days, then Rapaport has the right to discard the material.
        4. The Supplier agrees not to dispute the results of the melt. Rapaport will not be liable for any disputes, controversies, or alleged discrepancies based on the outcome of the melt.
        5. Unless otherwise requested by the Supplier, the refining settlement rates shall be based upon the “London p.m. fix“ of the date that the gold from the Merchandise is refined.
        6. Payment for all metals refined, minus all charges and any fees, will be made 2 business days after refining is complete.
    • Supplier Advance Option.
      • On or prior to delivery of any Merchandise to Rapaport, and from time to time Supplier shall have the option of asking Rapaport Capital, LLC, an affiliate of Rapaport (“Provider“) to make an advance to Supplier on such terms as shall be provided pursuant to separate documentation between Supplier and Provider (a “Supplier Advance“).
      • Supplier acknowledges that if it elects to take a Supplier Advance, Rapaport may act as agent for the Provider and will be deemed to be holding all Merchandise as collateral for any such Supplier Advance. Notwithstanding anything to the contrary in this Supplier Agreement, Supplier acknowledges and agrees that Rapaport is authorized to and shall have the right to apply any proceeds from the sale or disposition of any Merchandise to the repayment of any such Supplier Advance.
    • Rapaport will pay to Supplier via Fed Fund Bank Wire Transfer all funds that are collected less the Sale Fee and any agreed expenses within 14 (fourteen) days of date of sale, and subject to the repayment of all Obligations under the documents evidencing any Supplier Advance. Any and all fees related to such Bank Wire Transfers shall be the sole responsibility of the Supplier.
    • Rapaport shall be entitled to hold any Merchandise not sold until the Sale Fee, any outstanding Supplier Advance, and any other agreed expenses have been paid in full. If not so paid by the due date, without limiting the rights of Provider under the documents evidencing or relating to any Supplier Advance, Rapaport shall be entitled to sell any Merchandise up to the value of any amount then outstanding and due to it or any of its affiliates by Supplier.
  5. Assignment

    Neither party may assign this Agreement nor any rights or obligations hereunder without the prior consent of the other except that nothing in this Section shall prevent either party from assigning, delegating or transferring, in whole or in part, any of its rights and /or benefits and or obligations hereunder to any subsidiary, affiliate, or filial company/ies or entity/ies within its group of companies without the prior written consent of Supplier.

  6. Termination

    • Each party may terminate this Agreement immediately by giving written notice to the other party, in the event of the following:
      • The other party fails to pay any amount due under this Agreement on the due date for payment and remains in default not less than 14 days after being notified in writing to make such payment;
      • The other party commits a material breach of any term of this Agreement which breach is irremediable or, if such breach is remediable, fails to remedy that breach within a period of 30 days after being notified in writing to do so; or
      • The other party suspends, or threatens to suspend, payment of its debts or is unable to pay its debts as they fall due or admits inability to pay its debts (being a company or limited liability partnership).
    • Upon termination of this Agreement for any reason, Rapaport shall immediately, but in all events subject to the terms of any outstanding Supplier Advance:
      • For unsold Merchandise: Return any unsold Merchandise to the Supplier;
      • For sold Merchandise: Pay the Supplier the high bid/buy-now price less any Sale Fee, any outstanding Supplier Advances and any other agreed expenses and costs.
  7. Confidentiality

    The terms and conditions of this Agreement will not be disclosed to any third parties.

    A party (“Receiving Party“) shall keep in strict confidence all technical or commercial know-how, specifications, inventions, processes or initiatives which are of a confidential nature and have been disclosed to the Receiving Party by the other Party (“Disclosing Party“), its employees, agents or subcontractors, and any other confidential information concerning the Disclosing Party's business or its products or its services which the Receiving Party may obtain. The Receiving Party shall restrict disclosure of such confidential information to such of its employees, agents or subcontractors as need to know it for the purpose of discharging the Receiving Party's obligations under this Agreement, and shall ensure that such employees, agents or subcontractors are subject to obligations of confidentiality corresponding to those which bind the Receiving Party. This Section shall survive termination of this Agreement.

  8. Right of Audit

    • Rapaport shall permit the Supplier and its third party representatives, at any point during the continuance of this Agreement and upon one week prior notice, to access and take copies of only such of Rapaport's records and any other information held at Rapaport's premises, and to meet with such of Rapaport's personnel as may be required to audit Rapaport's compliance with its obligations to Supplier with respect to the Merchandise under this Agreement provided that any such audit shall be conducted during normal business hours, and so as to not interfere with the conduct of Rapaport's business. Such audit rights shall continue for three years after termination of this Agreement. Rapaport shall give all necessary assistance to the conduct of such audits during the continuance of this Agreement and for a period of three years after termination of this Agreement. For the avoidance of doubt, this Section shall not confer on the Supplier the right to access information or records about other customers of or the business of Rapaport.
    • Audit access by any third party representative of the Supplier shall be subject to such representative agreeing to confidentiality obligations equivalent to those in Section 7 above with respect to any information obtained, provided that all information properly obtained may be disclosed by such representative to the Supplier.
  9. Limitation of Liability
    • Notwithstanding anything to the contrary in this Agreement, Rapaport's liability under this Agreement is expressly limited to a sum equal to the Estimated Value of the Merchandise provided to Rapaport less the amount of any payments that Rapaport delivered to or for the benefit of the Supplier with respect to such Merchandise. In addition, each party may be liable for any reasonable attorney's fees incurred by the other in successfully enforcing its rights under this Agreement.
    • In the event of a dispute arising under this Agreement, Rapaport shall have no liability whatsoever to the Supplier if Rapaport elects to and does return the Merchandise to the Supplier within thirty (30) days of demand from the Supplier, subject however to the payment in full of any outstanding Supplier Advance.
  10. General
    • This Agreement sets out the entire agreement between the parties in relation to its subject matter and overrides any prior agreement, correspondence or representations. All warranties and conditions not set out in this Agreement whether implied by statute or otherwise are excluded to the extent permitted by law. Nothing in this Agreement shall create or be deemed to create a partnership or joint venture or relationship of employer or employee between the parties.
    • Unless otherwise agreed between the parties, all notices required to be given under this Agreement shall be given in writing and delivered to the address of that party listed above.
    • For the purposes of this Agreement, the term “Business Day“ shall mean any day other than a Saturday, Sunday, or day when commercial banks are authorized to be closed in New York City, NY.

RAPAPORT BUYER AGREEMENT

This Rapaport Buyer Agreement (the “Agreement”) which includes the Rapaport Buyer Agreement Terms and Conditions (the “Terms and Conditions”) and any applicable country or jurisdictional specific terms referenced below, shall govern and control all contractual relationships between the parties under and in terms of which diamonds and/or jewelry are bought from, or through Rapaport either by way of auction, tender or immediate sale (”Buy-Now”) (hereinafter referred to collectively or individually as ”Sale”).

In the event of a conflict between the Terms and Conditions and any applicable country or jurisdictional specific terms referenced below, the country or jurisdictional specific terms will apply and control.

This Agreement is entered into by the undersigned Buyer, and Rapaport Diamond Corporation (hereinafter ”Rapaport”) of 1212 Avenue of the Americas, Suite 801, New York 10036, USA, except if a Sale takes place outside New York in any of the following countries or jurisdictions hereinafter mentioned below on this Cover Page, in which event the provisions herein below expressly provided shall regulate and control the relationship between the parties together with the Terms and Conditions set forth overleaf, save to the extent such Terms and Conditions may be in conflict therewith.

In the event that the Sale takes place outside New York in any of the following countries or jurisdictions, then the foregoing country or jurisdictional specific terms shall apply, as provided below:

A. INDIA

If the Sale takes place in Mumbai, or any other location in India, the following terms shall apply and form an integral part of the Agreement:

  1. Parties. This Agreement shall be between Buyer and Rapaport India Private Limited of Mumbai Capital, 101 The Capital, Plot No. C-70, Bandra Kurla Complex, Bandra (East) Mumbai 400 051, India for all intents and purposes in respect of the Sale and the provision of goods and services provided in terms hereof, and the term “Rapaport“ shall mean and be limited to Rapaport India Private Limited for purposes of this Agreement with respect to the provision of said goods and services. For the avoidance of doubt, these India country specific terms will only apply to the Sale of diamonds and/or jewelry which takes place in Mumbai, or any other location in India, and if this Agreement is between Buyer and Rapaport India Private Limited.
  2. Governing Law and Jurisdiction. This Agreement shall be construed and governed in accordance with the substantive laws of India, without reference to its conflict of laws principles, and the appropriate courts of law in Mumbai alone shall be the courts of competent jurisdiction.

B. HONG KONG

If the Sale takes place in Hong Kong, the following terms shall apply and form an integral part of the Agreement:

  1. Parties. This Agreement shall be between Buyer and Rapaport Hong Kong Limited of Unit 2206 Kinwick Centre, 32 Hollywood Road, Central, Hong Kong for all intents and purposes in respect of the Sale and the provision of goods and services provided in terms hereof, and the term “Rapaport“ shall mean and be limited to Rapaport Hong Kong Limited for purposes of this Agreement with respect to the provision of said goods and services. For the avoidance of doubt, these Hong Kong country specific terms will only apply to the Sale of diamonds and/or jewelry which takes place in Hong Kong, and if this Agreement is between Buyer and Rapaport Hong Kong Limited.
  2. Governing Law and Jurisdiction. This Agreement shall be construed and governed in accordance with the substantive laws of Hong Kong, without reference to its conflict of laws principles, the appropriate courts of law in Hong Kong alone shall be the courts of competent jurisdiction.

C. ISRAEL

If the Sale takes place in Israel, the following terms shall apply and form an integral part of the Agreement:

  1. Parties. This Agreement shall be between Buyer and Rapaport Diamond Trading Limited of 1362 Diamond Tower, 54 Betzalel Street, Ramat Gan, Israel for all intents and purposes in respect of the Sale and the provision of goods and services provided in terms hereof, and the term “Rapaport“ shall mean and be limited to Rapaport Diamond Trading Limited for purposes of this Agreement with respect to the provision of said goods and services. For the avoidance of doubt, these Israel country specific terms will only apply to the Sale of diamonds and/or jewelry which takes place in Israel, and if this Agreement is between Buyer and Rapaport Diamond Trading Limited.
  2. Governing Law and Jurisdiction. This Agreement shall be construed and governed in accordance with the substantive laws of the State of Israel, without reference to its conflict of laws principles, and the appropriate courts of law in Ramat Gan, Israel alone shall be the courts of competent jurisdiction.

D. BELGIUM

If the Sale takes place in Belgium, the following terms shall apply and form an integral part of the Agreement:

  1. Parties. This Agreement shall be between Buyer and Rapaport Belgium b.v.b.a, of Diamond Exchange Building, Hoveniersstraat 53, B-2018 Antwerp, Belgium for all intents and purposes in respect of the Sale and the provision of goods and services provided in terms hereof, and the term “Rapaport“ shall mean and be limited to Rapaport Belgium b.v.b.a for purposes of this Agreement with respect to the provision of said goods and services. For the avoidance of doubt, these Belgium country specific terms will only apply to the Sale of diamonds and/or jewelry which takes place in Belgium, and if this Agreement is between Buyer and Rapaport Belgium b.v.b.a
  2. Governing Law and Jurisdiction. This Agreement shall be construed and governed in accordance with the substantive laws of Belgium, without reference to its conflict of laws principles, and the appropriate courts of law in Antwerp, Belgium alone shall be the courts of competent jurisdiction.
  3. UBO form. All Buyers agree and undertake to complete a UBO form as required by law.

E. LAS VEGAS

If the Sale takes place in Las Vegas, Nevada, USA the following terms shall apply and form an integral part of the Agreement:

  1. Parties. This Agreement shall be between Buyer and US Diamond LLC of 133 E. Warm Springs Road, Suite 100, Las Vegas, NV 89119, USA for all intents and purposes in respect of the Sale and the provision of goods and services provided in terms hereof, and the term “Rapaport“ shall mean and be limited to US Diamond LLC for purposes of this Agreement with respect to the provision of said goods and services. For the avoidance of doubt, these Nevada jurisdictional specific terms will only apply to the Sale of diamonds and/or jewelry which takes place in Las Vegas, Nevada, and if this Agreement is between Buyer and US Diamond LLC.
  2. Governing Law and Jurisdiction. This Agreement shall be construed and governed in accordance with the substantive laws of the State of Nevada, USA without reference to its conflict of laws principles, and the appropriate courts of law in Las Vegas, Nevada alone shall be the courts of competent jurisdiction .

F. DUBAI (UAE)

If the Sale takes place in Dubai, the following terms shall apply and form an integral part of the Agreement:

  1. Parties. This Agreement shall be between Buyer and IDCO Diamonds DMCC of Dubai Diamond Exchange, Level 2, Office D06 Almas Tower, Jumeirah Lakes Towers, Dubai, UAE for all intents and purposes in respect of the Sale and the provision of goods and services provided in terms hereof, and the term “Rapaport“ shall mean and be limited to IDCO Diamonds DMCC for purposes of this Agreement with respect to the provision of said goods and services. For the avoidance of doubt, these Dubai (UAE) country specific terms will only apply to the Sale of diamonds and/or jewelry which takes place in Dubai (UAE), and if this Agreement is between Buyer and IDCO Diamonds DMCC.
  2. Governing Law and Jurisdiction. This Agreement shall be construed and governed in accordance with the substantive laws of the United Arab Emirates as applicable in the Emirate of Dubai, without reference to its conflict of laws principles, the appropriate courts of law in the Emirate of Dubai alone shall be the courts of competent jurisdiction.

Terms and Conditions

For the purposes of these Terms and Conditions:

“Sale“ shall include the sale of diamonds and /or jewelryeither by way of auction, tender or immediate sale (“Buy-Now“), whether collectively or individually;

Buyer“ shall include a bidder who agrees to participate in a Rapaport Auction or Sale in accordance with these terms and conditions.

  1. Confidentiality. The identity of all Buyers buying merchandise will not be disclosed to any third parties. Buyers who participate in a Rapaport Auction agree not to disclose their bids to third parties or coordinate their bids with any other bidders or third parties.
  2. Warranties. All merchandise is sold AS-IS. No guarantees or warrantees are made as to the quality, origin, physical characteristics or any other aspect of the merchandise. In respect of a Rapaport Auction, while many of the lots have been sieved and sorted and marked as such by the Seller(s), Buyers and bidders are specifically put on notice that the merchandise offered for sale may have been delivered directly to pawnshops by the public and that treated, enhanced, laser drilled or simulant stones might be mixed in with lots. Lots have been sorted and described by numerous suppliers. Although lots may be described similarly, qualities may vary in range based on difference of opinion. Any descriptions of merchandise made by the Seller(s) or Rapaport staff are merely general and not a guarantee of the nature, size or quality of the goods. It is the responsibility of the Buyer to adequately examine all lots before making any bids. Buyers should make a full and detailed inspection of all merchandise before bidding. Buyer agrees not to hold Rapaport or any of its staff liable or responsible for any description or information provided about any merchandise.
  3. Viewing. Viewing is by appointment only. Unless otherwise approved viewing is limited to one (1) visit by two (2) representatives per Buyer. All parties viewing merchandise will be required to register and have valid identification. Rapaport reserves the right to monitor viewing with video surveillance cameras, limit viewing to select pre-qualified parties, and reasonably restrict viewing. No party shall have any merchandise on their person or in their possession when entering, exiting, or in the viewing rooms.
  4. Bidding. Permission to bid is granted at the sole discretion of Rapaport and subject to approval by Rapaport. All bids are in total US dollars per lot. Winning bids are considered a final sale and the Buyer is required to pay according to auction terms without an option to deny purchase. Rapaport at its sole discretion reserves the right to limit viewing of the goods and refuse to accept bids from any party for any reason. In addition, Rapaport reserves the right to refuse to sell any particular lot if the highest bid received is deemed by Rapaport and/or the seller, at their sole discretion, to be insufficient
  5. Bid Deposit. Rapaport reserves the right to require Buyers to pay a deposit equal to 10% of their total bid with a maximum of $25,000 to cover a $1,000,000.00 bid limit. This deposit will be refunded to unsuccessful bidders within three business days after the Auction Close. All bids must be in writing using the official Auction Bid Form, by email or submitted online via the Online Bid Form. If bids are submitted by email they must originate from an authorized email address and be sent to bids@rapaport.com. It is the responsibility of the Buyer to confirm that the email has been received. Rapaport is not responsible for any bids sent by email that have not been confirmed as received by Rapaport.
  6. Identification. All Buyers may be requested to provide identification.
  7. Taxes. For auctions conducted in New York, a copy of Buyer`s Sales Tax Registration and Reseller certificate may be requested.
  8. Successful bids. Rapaport will inform the successful Buyers of their purchase no later than three business days after Auction Close.
  9. Total Bid Limit. Buyers wishing to limit their total purchases may specify a maximum they wish to spend on the auction. Once this maximum has been reached, all additional bids from this Buyer will be voided. Application of funds will be in the order of priority specified by the Buyer.
  10. Notification and Invoicing. Rapaport will notify successful Buyers via fax, telephone or email and issue an invoice no later than three business days after Auction Close. Cash or wired deposits will automatically be allocated to invoices issued to successful Buyers. Buyers must provide names of contact persons and telephone and cell phone numbers where they can be reached on the days following the Auction Close.
  11. Payment. Terms are Certified Bank Check or Bank Wire. The merchandise will be delivered at the specified Rapaport Office. The risk of loss or damage to the merchandise will pass to the Buyer upon delivery. Full payment (including bank charges) must be made within two business days of notification of successful bid, or the date stated on the invoice, whichever is the earlier. Buyers are responsible for paying all wire charges in full. No merchandise will be delivered to Buyers unless Rapaport bank confirms full payment has been received, and all wire charges paid. Buyer shall be invoiced for any shortfall of wire charges once such charge is known, which shall be payable by Buyer immediately upon invoice. If payment is not made, Rapaport reserves the right to cancel the bid and/or sale. All sales are final and no returns are accepted after delivery.
  12. Default. In the event a successful Buyer defaults on purchase by not making payment on or before two business days after notification of successful bids, Buyer will forfeit all rights to any merchandise, lose any bid deposit and be required to pay a 10% Bid Default penalty fee. In the event of default, Rapaport at its sole discretion reserves the right to cancel the sale, and/or take legal action against the default Buyer and/or offer the parcel to the second highest bidder who is under no obligation to accept the merchandise.
  13. Dispute or Error. In the event of any dispute, error or any other reason deemed sufficient by Rapaport, Rapaport at its sole discretion reserves the right to provide a full refund to Buyer, withdraw any lot from auction and/or refuse any bid or cancel any sale. If Rapaport withdraws any lot or cancels any sale, Buyer agrees to waive, and Buyer's signature hereto shall constitute a waiver of, any claims and undertaking not to institute any legal action against Rapaport and/or against each other. All decisions by Rapaport will be final and binding on bidders and Buyer.
  14. Insurance. All merchandise in the possession of Rapaport will be insured at all times up to 7 days after Auction Close. Buyers must take delivery of merchandise purchased within 7 days of Auction Close after which Buyer will be charged reasonable insurance and storage fees. Once the merchandise has been delivered to the Buyer, the goods will cease to be insured by Rapaport and it shall be the responsibility of Buyer to arrange his own insurance in respect thereof.
  15. Shipping Fees. Terms of sale are cash. The merchandise will be delivered to the Buyer at the specified Rapaport office. If Buyer requests shipment of merchandise after auction and Rapaport agrees to make shipment, Buyer shall pay in advance all shipping, insurance and reasonable handling fees for shipment to Buyer's specified delivery location. Rapaport is not liable for goods once they leave Rapaport office and insurance is responsibility of Buyers.
  16. Liability. By participating in the auction, bidders and Buyers hereby agree; a) Any and all claims by bidders or Buyers against Rapaport or each other shall be limited to the return of any money paid by the bidder or Buyer for the lot in question; b) Rapaport and all third parties shall not be liable to any bidder or Buyer for any direct, secondary or incidental damages resulting from the withdrawal of any lot or refusal to accept any bid; and c) Rapaport will have no obligation of any nature whatsoever to Buyers/bidders other than to deliver the merchandise to successful Buyers after all conditions, including full payment, have been met.
  17. Delivery, Title and Ownership. Title and ownership of the merchandise will only pass to Buyer after full unrestricted payment is received and confirmed in Rapaport's bank account. Within one working day after confirmed receipt of funds, Rapaport will deliver merchandise to Buyers at the specified Rapaport office for each auction. Buyers must take delivery of merchandise purchased within 7 days of Auction Close.
  18. Conflict of Interest. Rapaport will not bid on any parcel or lot offered for sale.
  19. Conduct. All parties agree to conduct themselves in a business-like manner; to maintain the privacy and security of other bidder and Buyers; to follow all instructions of Rapaport staff regarding the handling of merchandise and to respect and honor the strong traditions of honesty and integrity in the diamond industry.
  20. Terrorism, Money Laundering and Illegal Activity Disclosure. Bidders and Buyers confirm and agree that their participation in all Rapaport Sales is not connected in any way to terrorism, money laundering or any other illegal act. Bidders and Buyers agree to provide Rapaport with any requests in connection with any country specific anti-terrorism, anti–money laundering and illegal activity compliance disclosure requirements, including but not limited to, the USA Patriot Act. Such disclosure shall include the provision of all required documents and full disclosure of relevant particulars in accordance with the USA Patriot Act, and any country or jurisdictional specific applicable legislation, laws, rules and regulations.
  21. New York Auctions. For auctions conducted in New York, the Auctioneer's Name and New York City Department of Consumer Affairs (DCA) License Number is: Penina Rapaport, License No:1439768
  22. Governing Law and Jurisdiction. Unless otherwise provided on the Cover Page, in which case the governing law of the country or jurisdiction in which the Sale is conducted shall apply, the validity, performance and interpretation of this Agreement shall be construed and governed in all respects in accordance with the substantive laws of the State of New York, USA, without reference to its conflict of laws principles, and the appropriate district, state and federal courts of law in New York City shall be the courts of competent jurisdiction.
  23. English Language. The parties agree that this agreement has been prepared and shall be executed in the English language and the English language shall control over any translation of this Agreement. All proceedings related to this Agreement shall be conducted in the English language.
  24. Entire Agreement. This Agreement constitutes this entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement.
  25. Amendment. This Agreement may be amended or modified only in writing.
  26. Miscellaneous.

    • No delay or omission by Rapaport in exercising any right under this Agreement shall operate as a waiver of that or any other right. A waiver or consent given by Rapaport on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion.
    • The captions of the clauses of this Agreement are for convenience or reference purposes only, and in no way define, limit or affect the scope or substance of any clause in this Agreement.
    • In the event that any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby.
  27. Assignment. Neither party may assign this Agreement nor any rights or obligations hereunder except that nothing in this clause contained shall prevent Rapaport from assigning, delegating or transferring, in whole or in part, any of its rights and /or benefits and or obligations hereunder to any subsidiary, affiliate, or filial company/ies or entity/ies within its group of companies without the prior written consent of Buyer.