II Terms of the Agreement

The Lessee named above and Milo (Miloslav) Dlouhy, the Artist, agree to the following terms.

1. Leased Artwork

The Lessee leases from the Artist the artwork listed in Schedule A. Schedule A records each work’s catalogue number, title, medium, dimensions, current value, condition at delivery and location. This Agreement covers every artwork the Lessee leases from the Artist. The Artist updates Schedule A when artwork is added, exchanged or returned, and sends each update to the Lessee in writing.

2. Lease Fees

Lease fees are a monthly percentage of each artwork’s current value. The rate depends on the term the Lessee chooses:

Fees are billed in advance on the first day of each billing period, plus GST where it applies. The Lessee pays the first billing period in full before taking possession of the artwork.

3. Security Deposit

Before delivery, the Lessee pays the security deposit stated in Schedule A. The Artist returns the deposit within 14 days after the artwork comes back in its original condition and all amounts owed are paid. Otherwise the deposit is applied to the amounts owed.

4. Payment

Payments are made through the secure payment link the Artist sends. The Lessee keeps a valid payment card on file with the Artist’s payment processor for the length of the lease, and authorizes the Artist to charge it for lease fees, the security deposit and any other amounts due under this Agreement. The Artist never receives or stores card numbers. The Lessee updates the card promptly if it changes.

5. Term and Renewal

The lease begins once the Artist countersigns this Agreement, sends Schedule A, and receives the first payment. The initial term runs from the start date in Schedule A for the period the Lessee chose. At the end of each term, the lease renews for the same period on the same terms, unless either party gives written notice at least 30 days before the term ends. A month-to-month lease renews each month.

6. Ending the Lease

After the initial term, either party may end this Agreement with 30 days’ written notice. Email counts as written notice. The Lessee returns the artwork in its original condition within 14 days of the end date. Lease fees continue until the artwork is back with the Artist. The Artist does not issue prorated refunds or credits for part of a billing period.

7. Purchase

The Lessee may buy any leased artwork at its current value at any time during the lease. 50% of the lease fees paid for that artwork are applied to its purchase price. Ownership passes to the Lessee once the purchase price is paid in full.

8. Exchange

After the initial term, the Lessee may exchange leased artwork for other available artwork. The Artist updates Schedule A, and the new artwork is leased under this Agreement.

9. Recall

From time to time, the Artist may recall leased artwork, for example after a sale or for an exhibition. The Artist collects it at his own expense. He then either replaces it with artwork both parties accept, or gives the Lessee full credit for the lease fees paid on the recalled artwork.

10. Care and Display

The Lessee keeps the artwork indoors, away from direct sunlight, heat sources, damp and high humidity. The Lessee does not clean, alter, reframe or repair it, and tells the Artist before moving it to another location. The Artist may inspect the artwork on reasonable notice.

11. A Living Work

Milo Dlouhy’s artworks are ongoing and never finished. By arrangement with the Lessee, the Artist may visit to continue working on a leased artwork, or offer to exchange it for a later state of the same work. The Lessee may accept or decline each proposal.

12. Loss, Damage and Insurance

From delivery until the artwork is returned to the Artist, the Lessee is responsible for its safekeeping and bears the full risk of loss, theft or damage from any cause, except damage from flaws inherent in the artwork. If leased artwork is lost or damaged beyond repair, the Lessee pays its current value as listed in Schedule A, and the lease of that artwork ends. If the damage can be repaired, the Lessee pays for restoration by a conservator the Artist chooses, up to the artwork’s current value. The Lessee’s insurance covers the artwork at its current value, and the Lessee provides proof of coverage on request.

13. Delivery and Installation

The Artist provides a quote for transport and installation with each lease. The Lessee may choose to install the artwork themselves, and is then responsible for any damage under section 12.

14. Copyright and Images

The Artist keeps all copyright in the artwork. The Lessee may share photographs of the artwork in its setting for personal or non-commercial use, with the credit “Milo Dlouhy”. Any commercial use, such as advertising, products, film or publication, needs the Artist’s written permission.

15. Ownership and Security Interest

Ownership of leased artwork stays with the Artist. The Artist holds a security interest in the artwork under the Personal Property Security Act (Alberta) and may register it. The Lessee signs any documents the Artist reasonably needs to register or protect that interest. Leased artwork is not subject to claims by the Lessee’s creditors.

16. Default

If the Lessee fails to meet any obligation under this Agreement and does not correct it within 30 days of written notice, the Artist may end this Agreement, recover the artwork on reasonable notice, and pursue any other remedy available in law or equity.

17. Collection Costs

If the Artist takes legal action to collect amounts owed or to recover artwork, the Lessee pays the reasonable legal fees, court costs and collection expenses involved.

18. Waiver

A party that waives a breach, or chooses to leave a term unenforced for a time, keeps the right to enforce that term later and to act on any other breach.

19. Changes

Changes to this Agreement must be in writing and accepted by both parties. The Artist makes the updates to Schedule A described in sections 1 and 8, and sends each update to the Lessee.

20. Entire Agreement

This Agreement and Schedule A form the entire agreement between the parties. If any part is found invalid, the rest stays in force. The Lessee may assign this Agreement, or sublease the artwork, only with the Artist’s written consent.

21. Electronic Signatures

The parties agree to sign this Agreement electronically. A typed full name, together with the signature confirmation, has the same effect as a handwritten signature under the Electronic Transactions Act (Alberta).

22. Privacy

The Artist uses the Lessee’s information only to manage this lease, and keeps it private.

23. Governing Law

This Agreement is governed by the laws of the Province of Alberta and the federal laws of Canada that apply there.