ADMINISTRATION, TERMS AND CONDITIONS

The Bonded Warehouse (The Bond) Customers' stock, unless they make other arrangements, is stored by us at Octavian Ltd's Bonded Warehouse near Corsham which offers excellent facilities. They own a subterranean Bond, temperature and humidity controlled and secure; they employ over 120 staff on site and are the largest UK wine warehousing company. Their other trade clients include Pol Roger, Christie's and Sotheby's and over 1200 other accounts, and include Andrew Lloyd-Webber and Michel Roux as private clients. The Bond is rigorously and securely controlled by the Excise. The group holds over 700,000 cases, give or take, and is now officially regarded by Customs and Excise as a 'best practice' operator. It is generally considered in the trade as the outstanding Bond in the UK so you can rest assured that your wine is under the best management and control available to the trade.

The System Once bought, your wine is delivered to Octavian 'In Bond'; depending on the wine, this does not always happen immediately; e.g. 2011 claret bought in 2012 would normally be shipped in the spring of 2014 (it won't be in bottle till mid 2013). If you already use another Bond, we can arrange to deliver it there to your instructions. VAT (calculated on the original purchase cost of the wine) and Duty are not payable until you take final delivery in the UK; (of course, you can sell 'In Bond' or export, without paying any Duty or VAT).

Storage If you do wish us to store your wine at Octavian (as almost everybody does), the wine lies there under the following arrangements. Each client's stock is on a discrete pallet (or pallets) in a general area to Farthinghoe clients. Each case will have the following information on an attached label; it is thus clearly and legally identifiable as the client's wine.

a. FFW Ltd (to refer it to us, the administrative account).

b. The client's account number and name.

c. A description of the wine, including volume of contents.

d. The product code of the wine.

e. The number of cases and bottles and the receipt date.

f. A rotation number, unique to that case, which is shown on your Octavian stock sheet.

N.B. Duty Paid stock is stored separately in the Duty Paid section.

Insurance Historically, on arrival in Bond, the wine has been insured at full replacement value against loss, fire, theft, storm and flood, burst pipes, impact, quake, malicious damage and breakage (if not caused by Octavian's exclusions*), included in the storage charge below; subject to an excess of £20 for claims related to individual or connected incidents. Subject to below, claims under the events detailed above stand unchanged.

The general risk assessment on Octavian, Corsham is "the risk of an insured catastrophic loss has been assessed as remote" (Octavian Risk Manager). In addition, the underground warehouse consists of five working areas, each of which can be sealed off from the others. Octavian's service commitment is to cover all "day to day" losses of stock at the lower of full replacement or market value. Accordingly, Octavian have assessed (a very difficult operation) the "Maximum Probable Loss incurred by complete catastrophe in that one area and have insured accordingly". We have no reason to doubt this, though they have been asked by their insurers not to divulge their cover. In the event of such an insured event, if the insurance did not cover the agreed final claim, settlement would be pro rata. Any additional insurance must be the responsibility of our clients. We do not propose that for our own stock.

After 11 September 2001, with hardening insurance markets, there is understandably more focus on terrorism. Octavian have now spelled this out in detail and, as I understand it from their Risk Assessor, these are their exclusions: *attributable to misconduct of the customer; caused by any inherent vice or nature of the subject matter insured; arising from loss of profit or indirect or consequential loss of any kind; arising from the use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter; war, civil war, revolution, rebellion, insurrection or civil strife arising therefrom, or any hostile act by or against a belligerent power; seizure or forfeiture under legal process; caused by strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotion; resulting strikes, lockouts, labour disturbances, riots or civil commotion; or caused by any terrorist or any person acting from a political motive.

Stock Statements Each client receives a regular Farthinghoe stock statement for all stock purchased and not yet cleared from the warehouse. This is split up into three categories: BONDED STOCK which is stock that has physically arrived in OCTAVIAN BOND ('In Bond'); DUTY PAID STOCK, which is Duty Paid stock in the separate Duty Paid section of Octavian's warehouse; and EX-CELLARS STOCK, either not yet arrived or very recently in but not yet physically added to your pallet. You also get an Octavian statement which will list all your wine now held for you by them, i.e. BONDED STOCK or DUTY PAID STOCK. These Farthinghoe and Octavian stock sheets are sent twice a year, i.e. with every hard copy wine list you receive. Please check them because it is also your responsibility to satisfy yourself on each occasion that the stock is correct. We cannot be held wholly responsible for uncorrected errors after three years from date of invoice.

Charges The charge for Rental and Insurance for the 2013 rental year will be £11.25 plus VAT per case of 12 bottles (9 ltr) or £5.63 plus VAT per case of 6 bottles (4.5 ltr) per annum or part annum, considerably less than Octavian's private client rate of OVER £15 plus VAT. We offer discounts of £0.50 per case for clients with over 450 litres total volume and £0.75 for over 900 litres, already in store. The rental year runs from 1 January, normally charged three months in advance and nine months in arrears, due for immediate payment please.

Incoming Stock If you have stock held elsewhere but would like to consolidate it into your stock reserves with us at Octavian, we will be pleased to assist with that, subject to a £7.50 per case RH&D and administration charge to cover the cost of doing so. It will then appear on your FFW stock sheet and on-line stock report.

Payments All payments are due at 30 days from invoice. Please note that we reserve the right to charge a flat administrative fee of £25.00 per month on the occasional very late payment to cover the time taken in our office to chase them, but hope very much not to have to apply that. Please also note that, in the unlikely event of you becoming out of touch with us, we reserve the right to sell the minimum necessary amount of your stock to cover any outstanding debtor balance; we need hardly say this is a very unlikely eventuality. For those of you paying by Electronic Transfer or Internet banking, our Bank details are as follows:

BARCLAYS, 32 Bridge Street, Banbury, Oxon OX16 5PN.A/C: Farthinghoe Fine Wine Ltd. A/C no: 20360899. Sort Code: 20-03-84.

Internet Swift Code: BARCGB22. IBAN: GB05 BARC 2003 8420 3608 99 Please ensure that any charges are paid at your end!

We can also accept most Credit Cards, subject to a 1% handling fee (3% for AMEX cards), a proportion of the fee levied by the provider of this facility. Debit Card payments can also be accepted for which there is no fee.

Clearance for Your Use in UK This can be arranged on request; it is relatively more expensive to clear and deliver one or two cases (for reasons of minimum delivery and fixed costs) but it can be, and is, done. The arrangements work thus: you instruct us to clear a number of cases to a destination (which can be done through your account on our website); we prepare and send you the invoice for documentation, clearance, delivery, Duty and VAT (both of the latter must be paid to Customs and Excise before clearance); on receipt of your payment and your written authority to clear and deliver your wine, we clear the stock (this normally takes two or three working days) and arrange delivery (normally within the week but quicker, at extra cost, if really needed). Deliveries are available from Monday to Friday, and we can instruct a particular day for delivery, but not a specific time. Clearance (and shipment) can also be arranged for UK resale or overseas delivery.

Quantities Wines are normally listed by the case of a dozen bottles, In Bond Octavian; otherwise magnums, halves, cases of six bottles etc. are noted as appropriate on the list. In this context, a case being sold to you 'In Bond Octavian' does not mean in all cases that the wine has already arrived (it might be 2011 claret still in a cask in Bordeaux) but that you have paid all charges up until the case is put onto your Octavian pallet; in effect, you have paid for the shipping and handling etc. charges.

Visits Any client wishing to visit, or collect from, Octavian is most welcome to do so. Octavian ask you to give a few days' notice, through our office. A number of clients have already done so. It is 15 minutes south of Junction 17 on the M4, south of the hamlet of Gastard and on the right. Not open on Saturday or Sunday.

Due Diligence It is our policy that we aim to visit Octavian approximately every six months. During that visit we

will conduct a spot check on a number of clients' stock.

Legal Ownership All wine remains the property of Farthinghoe Fine Wine Limited until paid for in full. E.&O.E.

TRADING , TERMS AND CONDITIONS

TRADING, TERMS AND CONDITIONS

1. Making an offer to sell wine You acknowledge and agree that each offer you make to sell wine through the wine exchange is a firm and unconditional offer to sell until withdrawn or amended by you. You may amend or withdraw an offer to sell at any time. An amendment you make will be deemed to take effect from the time the wine has been updated on your Trade Summary report. A withdrawal from sale will take effect from the moment you receive email confirmation that the stock has been withdrawn from the Liv-Ex system. Please note your instructions can only be implemented during our usual business hours, being Monday to Friday, 9 am to 5 pm.

In relation to each offer you make to sell wine through the wine exchange you warrant and represent to us that you will not sell the wine offered for sale to anyone other than us until the instruction to withdraw the wine from sale has been acknowledged and confirmed by us.

In the event of you being unable to comply with these conditions for whatever reason, you will still be liable to supply the wine for any unfulfilled sales contract.

2. Transaction cost On completion of a successful trade, we will raise a Purchase Order to you for the wine sold at the traded price and deduct our trading fee. This is shown in the 'My Trading Summary/Outstanding Trades' section of your 'My Wine Trades' page on our website.

The transaction rates are as follows:

Under £1000 per case: 9.95%

£1000 to £2999 per case: 8.95%

£3000+ per case: 7.95%

In addition, rental costs to date will be calculated for the case(s) traded and deducted from sale proceeds. Also, though only if traded through Liv-Ex, each case traded is subject to a flat fee of £9.75 + VAT for picking, shipping and receipt of that case to Liv-Ex Bonded Warehouse in London from our cellars at Octavian in Wiltshire.

3. Title Title to the wine passes to us at the time the contract of sale is made.

4. Settlement We will settle the net balance owed to you at 30 days from the traded date, assuming we have been advised of payment details at least 5 working days prior to the settlement date. Otherwise a credit will be held on your account until payment instruction is received.

Unless by prior agreement and in the event of a debit balance on your account in excess of 30 days from invoice, we shall allocate sale credit funds to your account to offset any balance overdue.

5. Condition of Wine When your wine is offered for sale via Liv-ex it is imperative that it meets their standard trade rules.

The standard trade rules are:

The wine will be delivered under bond from Octavian. We will make these arrangements on your behalf once a sale is successful.

The wine must be in its original packaging, with original labels, corks and capsules.

The wine is in 'good condition', meaning the wine level in each bottle is into neck or better, the wine colour is acceptable, the labels are clean and undamaged and the capsules have not been damaged or tampered with. Due to these specifications, all wines offered that are over 20 years old with a sale value of over £1,000 will not be added to Liv-ex until a condition photo has been received from Octavian at a cost of £9.52 + VAT covered by you, the seller. This will be charged via invoice once received and inspected. If you wish to offer to sell wine through the wine exchange that does not meet the standard trade rules and is not sold en primeur then we will make sure that the wine is offered as a special item.

Start a New Cellar