Contract Sample

Jean and Graham Devoe Williford Charitable Trust
Fairfield, Texas

Page 3

ART WORKS LOAN AGREEMENT

TERMS AND CONDITIONS

                                                                                                                                                                        

CARE, PRESERVATION AND EXHIBITION:  Borrower will exercise the same care to borrowed objects as it does comparable property of its own.  Precautions will be taken to protect objects from fire, theft, mishandling, dirt and insects and extremes of light, temperature and humidity while in the Borrower’s custody.  Evidence of damage at the time of receipt or while in the Borrower’s custody will be reported immediately to the Lender.  The Lender will be requested to provide written authorization for any alteration, restoration or repair.

Loans shall remain in the possession of the Borrower participating in the exhibit in question for the time specified on the face of this loan agreement but may be withdrawn from exhibit at any time by the director or trustees of any such Borrower.  The Borrower retains the right to cancel the loan request upon reasonable notice to the Lender.

TRANSPORTATION AND PACKING:  The Lender believes that the objects lent are in such condition as to withstand ordinary strains of packing, transportation and handling.  The Borrower will bear the costs of transportation and packing, unless the loan is at the Lender’s request, in which case the Lender will bear such costs.  Both parties must agree on the method of shipment.  United States government regulations will be adhered to in international shipments.  Borrower is responsible for adhering to Borrower’s country’s import/export requirements.  Objects will be returned in the same or similar materials received unless otherwise authorized by Lender.

Unless the Lender is notified in writing to the contrary, loans will be returned only to the Lender/agent at the Point of Return Address stated on the face of this agreement.  If the legal ownership of the work should change during the loan period, whether by reason of death, sale, insolvency, gift or otherwise, the owner will, prior to its return, be required to establish his/her legal right to receive the work by proof satisfactory to the Borrower.  If the address of the new owner should be of much greater distance than the locality from which the loan was borrowed, the new owner will be required to pay any difference in the charges for the delivery of the work.

INSURANCE:  Objects will be insured for the amount specified herein by the Borrower under its all risk, wall-to-wall, fine arts insurance policy.  The insurance referred to may exclude loss or damage caused by war, invasion, hostilities, rebellion and insurrection, confiscation by order of any government or public authority risks of contraband or illegal transportation and/or trade.

Insurance will be placed in the amount specified by the Lender herein, which must reflect fair market value.  If the Lender fails to indicate an amount, the Borrower, with the implied concurrence of the Lender, will limit the amount of insurance to be provided in case of damage or loss to the fair market value of the work of art at the time of the loss or damage.

APPLICABLE LAW:  This Agreement shall be construed in accordance with the laws of the State of Texas.