EFTA01092647.pdf

MEMORANDUM To: Leon D. Black From: Heather Gray Date: November 13, 2014 Re: Art Collection Management Database It would be beneficial to have a centralized database for your art collection which will contain all relevant information about the objects themselves (image, description, provenance, current location, loan history, appraised value, etc.) and all necessary accounting information (purchase price, sales tax paid, sale price, etc.). I have researched the available databases and I believe that iCollect is best suited to our needs, with Collectify being the next best choice. iCollect Description. iCollect was developed by Collector Systems and is the preeminent collection management system. It is used to manage David Rockefeller's collection as well as the collections of many other collectors and smaller museums, and it is also the collection management system that Sotheby's recommends to clients. iCollect has unlimited storage space, so I can upload to the database multiple, high resolution images of an artwork, as well as copies of the invoice, loan agreements with museums, appraisals — whatever images and documents that we want stored in one centralized location. The database also will allow me to create customized reports with images of the works and as much or as little information as I choose. For example, I could create a monthly report for you that includes all upcoming museum loans with images and descriptions of the works, insurance values, museum and exhibition information and the dates for each loan. iCollect is a cloud based system, so it is accessible from anywhere and does not require large amounts of computer hard drive space. The system is automatically backed up every day and uses 128-bit SSL encryption and bank-level security, and Collector Systems employees do not have access to customer information in the database. I have attached printouts from the Collector Systems website (www.collectorsystems.com), so you can see what the database looks like. Pricing. The standard cost is $45 per user, per month; however, Sotheby's will pay the first two years of fees for two users (me and Rich Joslin, so that he can use it to keep track of accounting information), so our first two years of using the database will be free. Sotheby's will also upload their valuation onto the database. They will not have access to the database after the initial upload. Should we require additional technical assistance from Collector Systems, such as hiring them to create custom reports for us, these additional services would be billed at a preferential rate of $150 per hour. EFTA01092647 Collectify Description. If you are not comfortable with a cloud based system like iCollect, Collectify is our next best option. It is a software based system, so all of the data "lives" in the computers of its users. Collectify also has a cloud based system that they have recently developed, but their representative told me that they are intend to continue to support the software based system "for some period of time." Collectify is less customizable than iCollect, and it also is not set up for two users to be in the system at the same time, so Rich and I could not be entering information or running reports simultaneously. That said, it does allow me to run fairly customizable reports and to upload documents like invoices and loan agreements to the database so that all information about a particular work of art is kept in one centralized location. I have attached printouts from the Collectify website (www.collectify.com) so you can see what the database looks like. Pricing. The cost is a $150 one-time fee for one user, so $300 for Rich Joslin and me. Because this is a software based system as opposed to a cloud based system, our tech support people said that they would need to add capacity to my computer and to Rich's in order to run the software. Recommendation I recommend that we use iCollect for our collection management database. iCollect is the most complete and most customizable of the available databases. It was designed for major collectors, as opposed to some of the other databases, which are really set up more for individuals to keep track of their home furnishings for insurance purposes (like Collectify) or, at the opposite end of the spectrum, for art galleries to manage their extensive inventory across multiple locations around the world. However, if you do not want to use a cloud based system, then Collectify is a workable alternative. EFTA01092648  C- EFTA01092649 EFTA01092650  10 ! 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