Dear AMICOs,

We've reached agreement within the Executive Committee to a framework within which AMICO could negotiate with artists rights societies. AMICO will approach the artists rights socieities offering the following:

AMICOās Role:

1. AMICO would acknowledge the rights of artists and their representatives in its documentation of each work and provide a link to the rights society for further rights negotiations.

2. AMICO would report, annually, the works in the AMICO Library by artists or estates represented by a society.

3. AMICO would share with the rights society a royalty on income attributable to works represented by their rights holders based on the percentage of works by their rights holders in the total AMICO Library.

4. The royalty rate would be negotiated to reflect the four sources of value in the AMICO Library ö the artistās original work, the photographic and digital image of that work (created by AMICO Members), the documentation of the work (created by AMICO members), and compilation and added value indexing (provided by AMICO).

5. AMICO would pay this royalty in a lump sum at the conclusion of each year of licensing. AMICOās books would be open to inspection to verify these sums.

6. AMICO would provide the rights society with sampled statistical data about relative uses of the works in the library by artists they represent, if this is desired by the Society in order to support the redistribution of the royalty payment. A charge might need to be made to cover initial programming costs to meet complex reporting needs.

Rights Society Role:

1. The rights society would agree to provide, annually, a list of all artists and estates for whom the agreement with AMICO is valid. No other approval will be required to use works by these artists according to the agreed terms.

2. In recongition of their investment in documenting works in their care, the rights society would grant to each AMICO member a limited, non-commercial license to make educational use of a pre-defined size of digital image of works from each memberās permanent collection by artists or estates represented by the society.

3. The rights society would license to AMICO the right to use images of works by artists covered under this agreement in controlled educational distribution as part of the AMICO Library.

In addition, AMICO would consider a statement of cooperation between AMICO and the artists rights organization. A mutual statement about the rights of artists could be drafted.

As we have agreed in our meetings, an AMCIO-wide agreement to use all of the works from artists and estates represented by the societies would make administration of artists rights much easier. It could also keep the costs of royalty payments to an amount that the not-for-profit, cost-rcovery economics of AMICO can bear.

We'd appreciate any background you can provide on your negotiations with the societies, and will keep you posted on the progress of our negotiations.

With luck, we'll have an agreement in place to facilitate this year's contributions to the AMICO Library.

Thanks.

jennifer