ARTWORK DIVIDEND AGREEMENT
This agreement is made and entered on Date, Year by Paul S. O’Connor (“Artist”) and ____________ (“Purchaser”).
Initial Purchase and Sale
Subject to the terms and conditions hereinafter set forth, at the closing of the transaction contemplated hereby, the Artist shall sell, convey, transfer, and deliver to the Purchaser an Artwork, which is a certificate of stock in future purchases of said Artwork, and the Purchaser shall purchase from the Artist the Artwork in consideration of the purchase price set forth in this Agreement. Failure of the Purchaser to comply with the considerations set forth in the Agreement shall wholly disqualify them from the receipt of dividends from future purchases of the Artwork.
Purchase Price and Dividends
The purchase price of the artwork is to be calculated using the Artwork Tier Table (Fig. 1). Initial offerings of Artworks begin on Tier 0, moving up one (1) Tier per sale of that Artwork. No Tier shall be duplicated. Final sale and subsequent leveling of tiers are determined by the final and full delivery of funds, unless otherwise specified. Price does not include applicable taxes. Additional fees may be applied through intermediate sellers.
Purchasers of the Artwork are eligible to receive dividends on future purchases of the same Artwork. Dividends will be calculated using the Artwork Dividend Table (Fig. 2); purchaser will only receive dividends on future sales of the Artwork at Tiers higher than their own.
Payment of Dividend will be delivered to the Purchaser within three (3) months of the final sale date of a subsequent Tier. Payment will be made by digital money transfer or, if requested by the Purchaser in writing, by check.
Dividend payments made by check are subject to a $5.00 handling fee, which shall be deducted from the total dividend payment. Lost checks will be subject to a $25.00 cancellation fee. Check handling fee will be assessed for each check sent during a dividend period.
Purchaser will be responsible for any financial fees assessed during or after the transfer of the dividend payment. Dividend payment will not be split into multiple payments unless otherwise agreed or specified.
The Artwork acts as a proof of purchase and stock certificate for dividend payments. Evidence of proof of purchase may be requested by the Artist before releasing dividend payments. Failure to produce the stock certificate can result in the suspension of dividend payments or termination of this agreement.
Transfer of Ownership
Sale or transfer of the Artwork from Purchaser to another party shall also result in the transfer of Dividend Rights. Dividends shall only be issued to the current owner of the artwork. Any funds accepted by the Purchaser for an Artwork no longer in their possession are invalid, and shall be returned to the Artist. Intentional misrepresentation of ownership shall make the Purchaser liable for any damages sought by the Artist.
A copy of the Bill of Sale of the Artwork must be provided by the Purchaser to the Artist upon the final sale of the artwork by the Purchaser. The Purchaser shall notify the recipient of the transfer or sale of the artwork of this Agreement and their ability to receive dividends on future purchases of this Artwork. The recipient of the transfer or sale of the artwork must agree to the terms and conditions of this or a future agreement or else forfeit all future dividends.
In the event of a sale or transfer of ownership, an administration fee shall be assessed by the Artist to the recipient of the transfer or sale, unless otherwise arranged or agreed. The Adminstration fee shall be 5% of the purchase or transfer price or a minimum fee of $25.00 when 5% of the purchase or transfer price does not exceed $25.00. Failure to pay the administration fee in a timely manner will result in the forfeiture of future dividends.
Reproduction
The Artist retains the copyright all reproduction rights associated with the Artwork. Any reproductions, including those for commercial, promotional, institutional non-profit or non-governmental organization purposes, shall be prohibited unless otherwise approved by the Artist. Incidental or personal reproductions deemed to be inappropriate by the Artist are subject to removal from a public forum upon the request of the Artist. Failure to meet the guidelines outlined in this agreement shall result in the forfeiture of future dividends and make the Purchaser liable for any damages sought by the Artist.
Re-fabrication
Re-fabrication of the Artwork shall be allowed should the Artwork be irreparably damaged. The Artist shall be the only party authorized to re-fabricate the artwork. Proof of the destruction shall be provided to the Artist by the Purchaser before re-fabrication takes place. A re-fabrication fee shall be assessed by the artist at the rate of 25% of the original purchase price or a minimum fee of $125.00 where 25% of the original purchase price does not exceed $125.00.
Unauthorized re-fabrication or re-fabrication by a party that is not the Artist shall result in forfeiture of future dividends and make the Purchaser liable for any damages sought by the Artist.
Revisions to this Agreement
This Agreement is subject to future changes which will be provided in writing to the Purchaser. Failure to agree to future versions or amendments to this Agreement will void the existing agreement and result in forfeiture of future dividends associated with this Artwork. Changes to the Tier Table or Dividend Table shall only be proposed by the Artist and shall only take effect with the ratification by sixty percent (60%) or greater majority of current Tier holders. Failure of the Purchaser to participate in Tier or Dividend Table revisions in a period three (3) months from initial contact will nullify the Purchaser’s vote and their Tier will not be counted in the percentile vote, but the Purchaser will be eligible to vote in all future Tier or Dividend Table revisions.