I.G.I.'s general terms and definitions are explained herein in order to clarify the purpose and intended use of gem and jewelry appraisals issued by I.G.I. By combining many years of experience in the manufacturing, wholesale, and retail markets with sound understanding of gemology, we have arrived at what we consider a viable working formula for valuating gems and jewelry.

Gemologists employed by I.G.I. have completed their diamond grading, colored stones and gem identification courses prescribed by the Gemological Institute of America in preparation of their graduate gemologist test. They have earned their graduate gemologist diplomas.

Our head appraiser, Jerry R. Ehrenwald, has earned senior membership status in the American Society of Appraisers (A.S.A.). The A.S.A. tests their appraisers on an individual basis. Our appraiser is a certified member in good standing with the Appraisers Association of America; designated member of the International Society of Appraisers and has been appointed to the Panel of Arbitrators for the American Arbitration Association.

ESTIMATED RETAIL REPLACEMENT VALUE FRO INSURANCE PURPOSES

The object of an insurance appraisal is to establish an accurate insurance position and to provide sufficient support in the event a proof of loss or damage becomes necessary

The valuation shall give the approximate cost of replacing or recreating the gem or jewelry article as closely as possible. In order to accomplish this the appraisers/gemologist will use due diligence in reflecting the highest and best use in their analysis of today's market prices as well as current costs of labor, materials, creative design, certification, the precious stone and metal markets comparable sales data and offers from reputable firms.

Costs and margins may differ substantially from retailer to retailer based on their locality, various services offered, and marketing methods. This information is accumulated by national survey. Averaging these costs and margins will result in an estimated retail replacement value for insurance purposes. These values are not for investment purposes, nor are they an endorsement of the price you should pay. The article(s) are appraised based upon final consumption by the consumer at the retail level. These values are I.G.I.'s appraiser's best judgment and opinion and are not a representation or warranty that the article(s) will realize that value if offered for sale at auction or otherwise. When a report has been prepared for intended use of future purchaser in obtaining insurance and will be passed on to the future purchaser at the time the item is sold, this report should be accompanied by a copy of the sales receipt documenting the actual sales price of the item.

NOTE: Most insurance policies contain an option which will allow the insurance company to replace your lost or damaged gems or jewelry with "similar" items. Therefore, the more descriptive the appraisal, the more certain you are of receiving proper replacements. For your own protection, the gemological appraisal will virtually fingerprint you gem(s) and jewelry. It will include your stones' cut, color, clarity, weight and position. Precious metals will be identified and weighted. This type of descriptive appraisal will reinforce your protection and will make sure you are covered for truly similar gems and jewelry. An explicit, accurate description is as important for your protection as in the estimated retail replacement value.

GRADING METHODOLOGY

• Diamonds are graded to the internationally accepted system for diamond grading based on color and clarity. Weight and measurements are listed.
• The color grade is established by comparison to a prescribed set of master diamonds, by no less than three graduate gemologists with concurring opinions
• The clarity grade is established by the assessment of no less than three graduate gemologists concurring opinions based prescribed definitions.
• The carat weight reflects the official weight of a diamond taken on a well calibrated electronic balance.
• Where the gemstone is graded as best as possible considering the fact that the gems are mounted, weights are estimated by formula, color and clarity grades will be expressed by a two color and two clarity grade range for diamonds over .29ct.; diamonds weighing .29ct. or below will be graded as per their verbal nomenclature. In the case where diamond melee is set in a mounting, a random testing procedure, regarding the diamonds being natural or laboratory created origin will be performed. Weight tolerances are listed.

THE RECEIPT

Our gemologists will have you fill out a receipt. On the receipt a description of what the item is generically, the purpose of the appraisal, to whom the appraisal

will be addressed, the date work will be completed, I.G.I.’s limitations, and the fee will be recorded. Both the client and the gemologist will sign the receipt. The original receipt is kept by the client and will be returned to I.G.I. upon receipt of the clients gem(s) and/or jewelry.

THE EXAMINATION

The most reliable appraisal is an opinion based on knowledge gained through education and special training backed by technical equipment and reinforced by experience.

To give yourself the benefits of the most accurate appraisal possible, consider the following:

• a) Do not try to save money on an appraisal. For a professional evaluation, expect to pay a fair fee, based upon the length of time necessary for a thorough examination, expressed by a flat fee.
• b) Do not rush the gemologist. Give the gemologist adequate time to carefully examine every facet of your gem or jewelry. Extensive testing is performed by the use of highly sophisticated gemological equipment. Often these tests may be time consuming, yet necessary for accurate results.

THE INTERIM REPORT

All results of the examination of your gem(s) and jewelry will be recorded by the gemologist on an interim report. Your gemologist will be happy to offer an explanation and show you how they reached their evaluation and conclusions. Precious metals are identified by means of stone and acid test. Diamonds are graded according to the universally accepted nomenclature for color and clarity, grading. Colored stones are graded by the International Gemological Institutes’ nomenclature of color, clarity and tone. Easily understood graphs are included with each gemological appraisal. After your gemologist has reached their determination, they will consult with a second and third gemologist confirming their conclusions. Our gemologists are educated and experienced in evaluation precious stones on a daily basis.

The gem and or article of jewelry will be micro-photographed resulting in an enlarged photograph, as to allow detail to be easily observed. This photograph is representative of the jewelry inspected. IT MAY NOT BE YOUR INDIVIDUAL ARTICLE.

To be noted is that natural gemstones are processed from the time they are extracted from the earth by one of more traditionally accepted trade practices. All colored stones have probably been subjected to a stable and possibly undetectable treatment. All relevant information will be readily provided, based on current available gemological knowledge. Prevailing market values are based on these universally practiced and accepted processes by the gem and jewelry trade.

THE VALUATION

The information from the interim report will be keyed into our computer. The computer is constantly updated by the head appraiser with current pricing information based upon retail mark-ups and inter-industry cost prices. Any and all of our pricing information is available for review. I.G.I. and its employees certify that with respect to the appraisal report and or identification report issued we acted in a completely independent manner. We further represent that no principal or employee of I.G.I. has or had any direct financial or material indirect financial interest in the submittee or the gems and or jewelry submitted for valuation and or evaluation, or in any of the submittees affiliates or in any of the affiliates acts. I.G.I.’s fees are not contingent on the values derived. The appraisal report and or identification report is to be used and interpreted in its entirety and may not be reproduced in whole or in part without written permission from IGI.

GEMOLOGICAL APPRAISAL

Your gemological appraisal report may be picked up in our facilty, or will be forwarded via U.S. Postal Service directly to your home or office. The report will contain all identification and grading information, photographs, and diagram of your diamonds clarity, if the diamond is .95ct. or above. Diamonds weighing less than .95ct. may be plotted upon request for an additional fee. The report will be signed, sealed, laminated and dated. The date of the appraisal report was the effective date of the appraisal and is the same date the appraisal report was produced. That is, the effective date of the appraisal represents the value of the article of jewelry and gemstone(s) for that date and does not imply a past or future value. These reports are recognized by major insurance companies throughout the country.

International Gemological Information’s (IGI) general terms an definitions are explained herein in order to clarify the purpose an intended use of gem and jewelry issued by IGI. By combining many years of experience in the manufacturing, wholesale and retail markets with a sound understanding of gemology, we have arrived at what we consider a viable working formula for valuating gems and jewelry.

Gemologists employed by IGI have completed their diamond grading, colored stones and gem identification courses prescribed by the Gemological Institute of America in preparation of their graduate gemologist test. They have earned their graduate gemologist diplomas.

Our head appraiser, Jerry R. Ehrenwald, had earned senior membership satus in the American Society of Appraisers (A.S.A.). The A.S.A. tests their appraisers on an individual basis. Our appraiser is a certified member in good standing with the Appraisers Association of America; a designated member of the International Society of Appraisers and has been appointed to the Panel of Arbitrators for the American Arbitration Association.

This Summation of Appraisal (S.O.A.) is given subject to the terms and conditions hereinafter set forth.

The item(s) described in this document has been examined in the laboratory of International Gemological Information, a division of International Gemological Institute, Inc. (IGI). IGI makes no warranty or representation regarding this document. This document contains a description of the article(s) based upon the application of generally accepted grading techniques used at the time of the examination.

Description(s) provided in this document may vary depending on the method of grading and the qualifications of the employee(s) and/or agent(s) of IGI.

In making this document we do not agree to purchase or replace the article.

The value(s) expressed herein is based on the appraiser’s best judgment and opinion and is not a representation or warranty that the item(s) will realize that value is offered for sale at auction or otherwise. The value(s) expressed is based on current information, excluding federal, state or local taxes, on the date indicated and no opinion is hereby expressed as to any past or future value unless otherwise expressly stated. The date of the S.O.A. represents the effective date of the report and is the same date the S.O.A. was produced. That is, the effective date of the S.O.A. represents the value of the article of jewelry and/or gemstone(s) for that date and does not imply a past or future value. Where an article of jewelry or gemstone has been submitted by a jewelry manufacturer / vendor, retail store, etc., for an independent report, for the intended use by a future purchaser in obtaining insurance, the report should be passed, on to the future purchaser at the time the item is sold, this report should be accompanied with a copy of the sales receipt documenting the actual sale price of the item.

When a S.O.A. is based not only on the item(s) inspected, but also on data or documentation supplied therewith, this document shall so state by making reference thereto and, where appropriate, attaching copies hereto. For a detailed gemological appraisal report with regard to the article of jewelry described, for an additional fee, contact IGI with summation number.

IGI and its employees certify that with respect to the S.O.A. issued we acted in a completely independent manner. We further represent that no principal or employee of IGI has or had any direct financial or material indirect financial interest in the submittee or the gems and or jewelry submitted for valuation and or evaluation, or in any of the submittees affiliates or in any of the affiliates acts. IGI’s fees are not contingent on the values derived. The S.O.A., certificate of authenticity and or

identification report is to be used and interpreted in its entirety. Any and all information with regard to the report issued by IGI and or the submittee is available upon written request. This report cannot be reproduced in any way without written permission from IGI.

The object of an insurance appraisal and /or S.O.A. is to establish an accurate insurance position and to provide sufficient support in the event a proof of loss or damage becomes necessary.

The S.O.A. shall give the approximate cost of replacing or recreating the gem or jewelry article as closely as possible. In order to accomplish this, the appraiser/gemologist will use due diligence in reflecting the highest and best use in their analysis of today’s market price as well as current costs for labor, materials, creative design, certification, the precious stone and metal markets comparable sales data and offers from reputable firms.

Cost and margins may differ substantially from retailer based on their locality, various services offered, and marketing methods. This information is accumulated by national survey. Averaging these costs and margins will result in an estimated retail replacement value for insurance purposes. These values are not for investment purposes, nor are they an endorsement of the price you should pay. The article(s) are valuated based upon final consumption by the consumer at the retail level.

Most insurance policies contain an option which will allow the insurance company to replace your lost or damaged gems or jewelry with “similar” items. Therefore, the more descriptive the appraisal, the more certain you are of receiving proper replacements. For your own protection, the gemological appraisal will virtually fingerprint your gem(s) and jewelry. It will include your stone’s cut, color, clarity, weight. Precious metals will be identified and weighted. This type of descriptive appraisal will reinforce your protection and will make sure you are covered for truly similar gems and jewelry. An explicit, accurate description is as important for your protection as is the estimated retail replacement value.

The gem and/or article of jewelry will be micro-photographed resulting in an enlarged photograph, as to allow detail to be easily observed. This photograph is representative of the jewelry inspected. IT MAY NOT BE YOUR INDIVIDUAL ARTICLE.

NOTICE: APPRAISER’S BONA FIDE OPINIONS AS TO THE VALUE OF JEWELRY ITEMS MAY VARY BY UP TO TWENTY FIVE PERCENT. THIS APPRAISAL REPORT IS TO BE USED SOLELY FOR THE PURPOSE STATED ON FRONT AND MAY NOT BE MADE PUBLIC IN WHOLE OR IN PART WITHOUT EXPRESS WRITTEN APPROVAL FROM IGI.

The I.G.I. Grading Summary (Report) is given subject to the terms and conditions hereinafter set forth. The item(s) described in this document have been examined in the laboratory of International Gemological Information, a division of International Gemological Institute, (I.G.I.) I.G.I. makes no warranty or representation regarding this document. This document contains a description of the article(s) based upon the application of generally accepted grading techniques used at time of the examination.

Description(s) provided in this document may vary depending on the method of grading, equipment used and the qualifications of the employee(s) and/or agent(s) of I.G.I.

In making this document, we do not agree to purchase or replace the article.

When a Report is based not only on the item(s) inspected, but also on data or documentation supplied therewith, this document shall so state by making reference thereto and where appropriate, attaching copies hereto.

Any accompanying reports, certificates or hallmarks are accepted as factual and are treated as such with the understanding that we do not guarantee or warranty their accuracy. Weights and measurements are approximate as grading allows, within accepted trade tolerances.

I.G.I. and its employees represent that with respect to the Report issued we acted in a completely independent manner. We further represent that no principal or employee of I.G.I. has or had any direct financial or material indirect financial interest in the submittee or the gems and/or jewelry submitted for evaluation, or in any of the submittees affiliates or in any of the affiliates acts. I.G.I.’s fees are not contingent on the evaluation derived. This Report is to be used and interpreted in its entirety.

The object of a Report is to provide sufficient support in the event a proof of loss or damage becomes necessary. I.G.I. can provide this document for a relatively small fee compared to the present and potential value of the gem and/or jewelry article described herein only because this Report is subject to the following limitations on the liability of I.G.I. and limitations described in the agreements by which the Report is made, all of which extend to the client for whom this Report was prepared and to every other person to whom this Report is distributed or shown.

The gem and/or article of jewelry will be micro-photographed resulting in an enlarged photograph , as to allow detail to be easily observed. This photograph is representative of the jewelry inspected, IT MAY OR MAY NOT BE YOUR INDIVIDUAL ARTICLE.

I.G.I. and its employees and agents shall not be liable for any loss, damage or expense for any error in or omission from this Report or for its issuance or use. Even if caused by or resulting from the negligence or other fault (except fraud, willful misconduct or gross negligence) of I.G.I. and its employees or agents and shall not be liable for special or consequential damages for any error or omission from this document, for any error or omission caused by the acts of others, or for its issuance or use even if advised of the possibility of such damages.

NOTICE: THIS REPORT IS TO BE USED SOLELY FOR THE PURPOSE STATED ON FRONT AND MAY NOT BE MADE PUBLIC IN WHILE OR IN PART WITHOUT WRITEEN APPROVAL BY I.G.I. IN THE EVENT OF ANY CLAIM BY THE CLIENT OR ANY OTHER PERSON, THE LIABILITY OF I.G.I. SHALL BE LIMITED TO THE AMOUNT IT RECEIVES AS A FEE IN CONNECTION WITH THE REPORT ISSUED.

The gemstone described in this Report has been graded, tested, analyzed, examined, and/or inscribed by International Gemological Institute ("I.G.I.") using the most up to date methods and equipment available to I.G.I. at examination and/or inscription time. However, this Report is not a guarantee, valuation, or appraisal, and I.G.I. makes no representation or warranty regarding the gemstone described in this Report, regarding any inscription described in this Report, nor regarding the Report itself. Grading, testing, examination and/or analysis by others may result in alternative conclusions and may be based upon when, how and by whom the gemstone has been graded, tested, analyzed and/or examined. Additionally, end results may differ in the future due to changes, improvements, modifications or obsolescence of techniques and equipment available and/or in use at the present time.

1. IGI has carried out scientific analysis and grading of the Article(s) referred to in this Report, utilizing advanced and up-to-date gemological instruments and equipment available at the time of examination. Evidence of known treatments, simulants and synthetics are detected and disclosed. However, technologies employed in treatments, processing and synthetics are continuously evolving, hence it might not always be possible to determine the origin of the article using the then-latest available techniques. (only for jewelry reports)

• i. A Jewelry Report is based on the gemological analysis of the Article, but also on data or documentation occasionally supplied therewith. Accompanying reports and hallmarks are accepted as factual, with the implicit understanding that IGI does not guarantee, nor warranty their accuracy. Characteristics, weights and measurements are approximate when analyzed in mounted conditions (see “Comments” section on reverse). (only for jewelry reports & colored stones reports)
• ii. Gemstones are sometimes enhanced or treated in order to improve their appearance. These processes, including synthetics, are not always identifiable in mounted conditions.

2. Opinions may vary as to the characteristics covered in this Report; hence, neither IGI nor any member of its staff shall, at any time, be held responsible for any discrepancy which may result from the application of other grading and/or identification methods.

3. By making this Report IGI does not agree to purchase or replace the article(s). Neither the Client nor any purchaser of the article(s) shall regard this Report as an appraisal or as a guaranty/warranty. IGI operates as an independent laboratory and has no financial interest in the sale/purchase of any gemstone/jewelry.

4. In the event of any claim by the Client or any person for damage to the article(s), or damages resulting, directly or indirectly, from this Report, the liability of IGI shall be limited to the amount it receives as a fee in connection with this Report.

5. Contact IGI for further information: www.igiworldwide.com.