1

Allen, Louise

From: Pete DiFolco [petedifolco@gmail.com]Sent: Friday, November 22, 2013 5:11 PMTo: Allen, LouiseCc: Shao, Misara; Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, TerriSubject: Re: The Blacklist - Wits End Agreement - URGENT

It seems their heating units became rented out to other shows and unavailable while waiting for a response, so we were forced to purchase them from another vendor.

On Fri, Nov 22, 2013 at 5:03 PM, Allen, Louise <Louise_Allen@spe.sony.com> wrote:

Checking in on the status of this matter again …

 

Thanks,

Louise Allen

Risk Management

T:  (519) 273‐3678

 

From: Pete DiFolco [mailto:petedifolco@gmail.com] Sent: Thursday, November 21, 2013 3:08 PM To: Allen, Louise Cc: Shao, Misara; Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, Terri Subject: Re: The Blacklist - Wits End Agreement - URGENT

I don't believe so.

On Thu, Nov 21, 2013 at 3:05 PM, Allen, Louise <Louise_Allen@spe.sony.com> wrote:

Did you pick up the equipment yesterday?

 

Thanks,

2

Louise Allen

Risk Management

T:  (519) 273‐3678

 

From: Pete DiFolco [mailto:petedifolco@gmail.com] Sent: Thursday, November 21, 2013 3:01 PM

To: Allen, Louise Cc: Shao, Misara; Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, Terri Subject: Re: The Blacklist - Wits End Agreement - URGENT

I sent your notes to the vendor. They haven't responded yet. I have not sent them an insurance certificate.

On Thu, Nov 21, 2013 at 2:55 PM, Allen, Louise <Louise_Allen@spe.sony.com> wrote:

What happened in this matter?

 

Thanks,

Louise Allen

Risk Management

T:  (519) 273‐3678

 

From: Shao, Misara Sent: Wednesday, November 20, 2013 3:21 PM To: Allen, Louise; Pete DiFolco

Cc: Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, Terri Subject: RE: The Blacklist - Wits End Agreement - URGENT

1

Allen, Louise

From: Shao, MisaraSent: Wednesday, November 20, 2013 3:21 PMTo: Allen, Louise; Pete DiFolcoCc: Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, TerriSubject: RE: The Blacklist - Wits End Agreement - URGENT

This is a lopsided agreement favoring the vendor. There are other changes that SHOULD be made but on this one-time only basis, Pete should try and get all of Louise’s changes implemented, and if that is not possible, then at least the changes that are mandatory according to Louise’s email below. Thanks.

From: Allen, Louise Sent: Wednesday, November 20, 2013 12:15 PM To: Pete DiFolco Cc: Shao, Misara; Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, Terri Subject: RE: The Blacklist - Wits End Agreement - URGENT The two most critical changes are in paragraph 1 and in paragraph 5 (re: deletion of wording about policy and premiums).  These are deal breakers.  If the other changes aren’t made, the effect is that production might have to pay out‐of‐pocket for losses, etc.    Though there are many other problems with the agreement, I didn’t make other revisions in this urgent case.  We would accept this version of the agreement on a non‐precedential basis.  

Thanks,  Louise Allen Risk Management T:  (519) 273‐3678  

From: Pete DiFolco [mailto:petedifolco@gmail.com] Sent: Wednesday, November 20, 2013 2:52 PM To: Allen, Louise Cc: Shao, Misara; Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, Terri Subject: Re: The Blacklist - Wits End Agreement - URGENT Ok. In that case, can you make those changes then, and I will send them to the vendor to look at?

On Wed, Nov 20, 2013 at 2:38 PM, Allen, Louise <Louise_Allen@spe.sony.com> wrote:

I cannot approve this agreement as it contain a deal breaker.  Per paragraph 5, we are required to provide copies of our policies and payment receipts.  Sony will not do this.  If the vendor really will not allow any changes, we will have to get the show exec involved.

 

Other major problems …

AGREEMENT 1. It is agreed that the Llmee (hereinafter "You") will test the production supplies andlor equipment (hereinafter" Equipment") herewith

sold or rented, prior to using the same for any purpose. If not in good working order, You agree to .forthwith return the supplies and/or other equipment for replacement or repair. By failing to return such "Equipment" you agree all defects discovered or resulting during their use are your sole responsibility and You assume sole liability for any consequences as well as liability or the damage to the same "Equipment" under lease. Any defects shall apply whether they are latent or patent. With reference to the "Equipment" purchased. the parties agree that we make no warranties, express or implied. With reference to "Equipment" rented, You assume all responsibility for injury to person or property included but not limited to filmed sequences and all costs incurred in obtaining same, resulting from or attributable to "Equipment," without limitation or restriction and whether resulting from or arising out of negligence or breach of warranty on the part of the owner(s}, drivers, employees, agents or servants. This paragraph shall be applicable to all your future rentals andlor purchases from Wits End Group Inc., d/b/a Wits End Productions whether signed or not, and You agree the terms of this paragraph shall always be in effect in your dealings with us.

2. You understand and agree the "Equipment" remains our sole property, and You shall have no right, title or interest except as expressly set forth in this contract. You indemnify and hold harmless we and our duly authorized agents, drivers, employees and servants from any and all damages and/or liabilities from or arising out of your use of paid "Equipment" including but not limited to any damages and/or liabilities resulting from or arising our of your failure to return said "Equipment" t o us within the time period provided in this contract.

3. You understand and agree any subleasing or reletting of the "Equipment" is prohibited and that any such subleasing or reietting shall immediately cause termination and cancellation of this contract.

4. During the rental term, you will, at your own cost and expense, keep, secure and maintain said "Equipment" in good condition and repair, reasonable wear and tear Excepted, and at termination replace the production supplies and/or pay to the owner to replace other new equipment without deduction for depreciation as may be lost, stolen, missing, broken or damaged due to any cause whatsoever.

5. You agree to insure the " Equipment" against any loss or damages whatsoever for the period that is away from the Wits End premises and t o assume full responsibility for it, and also agree to compensate Wits End for the replacement value (without deduction for depreciation) should said "Equipment" be lost, stolen, missing, broken or damaged by any cause whatsoever, due to yoor fault or not, and to be an insurer for any and all personal liability for any individual or individuals working with or around any Wits End vehicles or equipment. At your own cost and expense, but for the benefit of Wits End, YOLl will immediately insure the said production supplies and/or equipment and personnel for the full replacement value (without deduction for depreciation) against loss or damage by fire, theft, water, an act of God, or injUiy to personnel by any circumstances whatsoever, by a qualified reputable insurance company and shall deliver the policy to us together with receipts for the premiums. You further agree to compensate us for any time lost as a result of having to replace or repair said "Equipment."

6. "Equipment" herein shall be delivered and returned by you and your own risk, cost and expense. Wits End must be n"amed as additional ' insured on the commercial general liability policy and as loss payee on the property policy. Rental of all items taken out must be paid · f or in the period of time until returned to us. No allowance will be made for non-use. Your insurance will be written on a primary and non-contributory basis.

7. If You default on any terms, covenants and conditions herein, or in punctually making any of the payments, or if any execution or other writ or process is issued in any action or proceeding against You, whereby the said "Equipment" may be seized or taken or detained, or if a proceeding in bankruptcy, receivership or insolvency shall be instituted by or against You or your property, or if You shall enter into any arrangement with your creditors, or in the event that any judgment is obtained against You, Wits End shall have the option to retake immediate possession of said "Equipment" and for such purposes, Wits End, our agents or employees may enter upon -any premises where said equipment may be, and may remove it with or without f orce, and with or without notice of intention to retake the same without being liable to any suit or action or proceeding by You.

-8. Upon Wits End retaking possession of the said equipment pursuant to the above provisions, this agreement termina~es, without prejudice to any right or claim of arrears of rent, if any, or on account of any preceding breaches of this agreement, or the loss of rental for the unexpired· term, or for any other claim that Wits End may have against You.

9. You agree to pay all reasonable attorneys' fees and costs incurred by us in protecting our rights or property under this agreement, or insuring You for a breach of this agreement.

10. No terms, r~presentatives or warranties, expressed or implied, not herein set forth in writing shall bind Wits End.

11. This agreement contains the entire' understanding between parties, including representations, and may not be modified, except by another agreement in writing. signed by both" parties to this agreement. The signing of anyone rental contract by the rentee acknowledges an understanding of the terms and conditions of all future contracts, signed or not. This includes circumstances where the equipment is enroute to shooting locations and the contract has not been signed, or where a verbal order is placed for equipment and is being held pending· pick-up.

1

Allen, Louise

From: Pete DiFolco [petedifolco@gmail.com]Sent: Wednesday, November 20, 2013 2:33 PMTo: Allen, LouiseCc: Shao, Misara; Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, TerriSubject: Re: The Blacklist - Wits End Agreement - URGENT

No alternative vendor available at this time unfortunately. This is an emergency rental. 2 x Diesel radiant "VAL-6" heaters @ $3,500.00 each = $7,000.00 2 x Radiant electric "RAYTHERMS" @ $10,000.00 each = $20,000.00

On Wed, Nov 20, 2013 at 2:21 PM, Allen, Louise <Louise_Allen@spe.sony.com> wrote:

What is the total replacement value of all the items you are renting.  I don’t know the quantity of VAL‐6 or Raytherm heaters.

 

Misara … like you, I doubt this agreement was ever approved by legal/risk mgmt in the past.  We have about 2200 vendors listed on our contract log for 2013 and Wits End is not one of them!

 

IS there is any alternate vendor available?  

 

In the meantime, I’ll take a second look to see if there is any deal breaker in the document.

 

Thanks,

Louise Allen

Risk Management

T:  (519) 273‐3678

 

From: Pete DiFolco [mailto:petedifolco@gmail.com] Sent: Wednesday, November 20, 2013 2:01 PM

To: Shao, Misara

1

Allen, Louise

From: Pete DiFolco [petedifolco@gmail.com]Sent: Wednesday, November 20, 2013 1:51 PMTo: Allen, LouiseCc: Shao, Misara; Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, TerriSubject: Re: The Blacklist - Wits End Agreement - URGENT

Diesel radiant "VAL-6" heaters are $3,500.00 each, and the Radiant electric "RAYTHERMS" are $10,000.00 each

On Wed, Nov 20, 2013 at 1:48 PM, Allen, Louise <Louise_Allen@spe.sony.com> wrote:

The replacement value or the purchase value is the figure I need.  Not the rental rate.

 

Thanks,

Louise Allen

Risk Management

T:  (519) 273‐3678

 

From: Pete DiFolco [mailto:petedifolco@gmail.com] Sent: Wednesday, November 20, 2013 1:44 PM To: Allen, Louise Cc: Shao, Misara; Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, Terri

Subject: Re: The Blacklist - Wits End Agreement - URGENT

The purchase or rental value? We're renting them for $1440.00 altogether.

On Wed, Nov 20, 2013 at 1:41 PM, Allen, Louise <Louise_Allen@spe.sony.com> wrote:

What is the approx value of these heaters?

 

Thanks,

1

Allen, Louise

From: Allen, LouiseSent: Wednesday, November 20, 2013 2:38 PMTo: 'Pete DiFolco'; Shao, MisaraCc: Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, TerriSubject: RE: The Blacklist - Wits End Agreement - URGENT

I cannot approve this agreement as it contain a deal breaker.  Per paragraph 5, we are required to provide copies of our policies and payment receipts.  Sony will not do this.  If the vendor really will not allow any changes, we will have to get the show exec involved.  Other major problems …  Paragraph 1 obligates us “to assume all responsibility for injury to person or property … arising out of the negligence or breach of warranty on the part of the owner(s)”.  This is contrary to common law and we will not have insurance coverage for injury, etc caused by Wits End.  Paragraph 5 obligates us “compensate Wits End for the replacement value … should Equipment be … broken”.  Our insurance only covers the lesser or replacement cost or repair cost, so production will potentially have to pay out of pocket in some cases.  

Thanks,  Louise Allen Risk Management T:  (519) 273‐3678  

From: Allen, Louise Sent: Wednesday, November 20, 2013 2:22 PM To: 'Pete DiFolco'; Shao, Misara Cc: Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, Terri Subject: RE: The Blacklist - Wits End Agreement - URGENT What is the total replacement value of all the items you are renting.  I don’t know the quantity of VAL‐6 or Raytherm heaters.  Misara … like you, I doubt this agreement was ever approved by legal/risk mgmt in the past.  We have about 2200 vendors listed on our contract log for 2013 and Wits End is not one of them!  IS there is any alternate vendor available?    In the meantime, I’ll take a second look to see if there is any deal breaker in the document.  

Thanks,  Louise Allen Risk Management T:  (519) 273‐3678  

2

From: Pete DiFolco [mailto:petedifolco@gmail.com] Sent: Wednesday, November 20, 2013 2:01 PM To: Shao, Misara Cc: Allen, Louise; Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, Terri Subject: Re: The Blacklist - Wits End Agreement - URGENT Behind the scenes.

On Wed, Nov 20, 2013 at 2:00 PM, Shao, Misara <Misara_Shao@spe.sony.com> wrote:

Hi Louise,

It seems dubious that all Sony productions would have approved the Wits End standard form, as it omits even the most common comments we make to these vendor forms. However, since Production needs the heaters starting today, and Wits End refuses to make any changes, I’m not sure what alternative we have. I guess the best advice is to rent from someone else next time.

By the way, Pete, are these heaters to be used as props, or used as heaters behind the scenes?

Thanks,

Misara

From: Allen, Louise Sent: Wednesday, November 20, 2013 10:49 AM To: Pete DiFolco

Cc: Shao, Misara; Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, Terri Subject: RE: The Blacklist - Wits End Agreement - URGENT

The replacement value or the purchase value is the figure I need.  Not the rental rate.

 

Thanks,

3

Louise Allen

Risk Management

T:  (519) 273‐3678

 

From: Pete DiFolco [mailto:petedifolco@gmail.com] Sent: Wednesday, November 20, 2013 1:44 PM To: Allen, Louise Cc: Shao, Misara; Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, Terri Subject: Re: The Blacklist - Wits End Agreement - URGENT

The purchase or rental value? We're renting them for $1440.00 altogether.

On Wed, Nov 20, 2013 at 1:41 PM, Allen, Louise <Louise_Allen@spe.sony.com> wrote:

What is the approx value of these heaters?

 

Thanks,

Louise Allen

Risk Management

T:  (519) 273‐3678

 

From: Pete DiFolco [mailto:petedifolco@gmail.com] Sent: Wednesday, November 20, 2013 1:25 PM To: Shao, Misara Cc: Allen, Louise; Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Herrera, Terri

Subject: Re: The Blacklist - Wits End Agreement - URGENT

3 days. Today-Friday.

4

On Wed, Nov 20, 2013 at 1:23 PM, Shao, Misara <Misara_Shao@spe.sony.com> wrote:

Pete, are you renting just for the day?

From: Pete DiFolco [mailto:petedifolco@gmail.com] Sent: Wednesday, November 20, 2013 8:51 AM To: Allen, Louise Cc: Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Shao, Misara; Herrera, Terri Subject: Re: The Blacklist - Wits End Agreement - URGENT

From Wits End:

Pete. We will not sign the agreement you have sent. Once a "lessor" (YOU)...take our equipment, you are solely responsible for everything....we only send our equipment out in perfect working and safe order. What happens to it once it leaves our dock is the renters responsibility.

Thanks.

Keith Guliner

Attached is their agreement again in pdf form.

On Wed, Nov 20, 2013 at 11:22 AM, Allen, Louise <Louise_Allen@spe.sony.com> wrote:

Will they sign our third party equipment rental agreement instead?  See attached.

 

If not, please re‐send the agreement as a pdf.

 

Please remember to cc Terri Herrera in Risk Mgmt on all contracts.

 

Thanks,

Louise Allen

5

Risk Management

T:  (519) 273‐3678

 

From: Pete DiFolco [mailto:petedifolco@gmail.com] Sent: Wednesday, November 20, 2013 10:48 AM To: Barnes, Britianey; Luehrs, Dawn; Zechowy, Linda; Allen, Louise; Shao, Misara Subject: The Blacklist - Wits End Agreement - URGENT

Morning!

Attached please find the Wits End Agreement for review. We are renting emergency heaters from them today. They said they do not make changes to the agreement, but that it is a standard agreement they have used with Sony productions and all other shows in the past. Thanks!

--

Pete DiFolco

APOC

The Blacklist

Woodridge Productions, Inc.

Chelsea Piers

Pier 62, Suite 305

New York, NY 10011

(646) 561-0490 office

(212) 428-2018 fax

--

AGREEMENT 1. It is agreed that the Llmee (hereinafter "You") will test the production supplies andlor equipment (hereinafter" Equipment") herewith

sold or rented, prior to using the same for any purpose. If not in good working order, You agree to .forthwith return the supplies and/or other equipment for replacement or repair. By failing to return such "Equipment" you agree all defects discovered or resulting during their use are your sole responsibility and You assume sole liability for any consequences as well as liability or the damage to the same "Equipment" under lease. Any defects shall apply whether they are latent or patent. With reference to the "Equipment" purchased. the parties agree that we make no warranties, express or implied. With reference to "Equipment" rented, You assume all responsibility for injury to person or property included but not limited to filmed sequences and all costs incurred in obtaining same, resulting from or attributable to "Equipment," without limitation or restriction and whether resulting from or arising out of negligence or breach of warranty on the part of the owner(s}, drivers, employees, agents or servants. This paragraph shall be applicable to all your future rentals andlor purchases from Wits End Group Inc., d/b/a Wits End Productions whether signed or not, and You agree the terms of this paragraph shall always be in effect in your dealings with us.

2. You understand and agree the "Equipment" remains our sole property, and You shall have no right, title or interest except as expressly set forth in this contract. You indemnify and hold harmless we and our duly authorized agents, drivers, employees and servants from any and all damages and/or liabilities from or arising out of your use of paid "Equipment" including but not limited to any damages and/or liabilities resulting from or arising our of your failure to return said "Equipment" t o us within the time period provided in this contract.

3. You understand and agree any subleasing or reletting of the "Equipment" is prohibited and that any such subleasing or reietting shall immediately cause termination and cancellation of this contract.

4. During the rental term, you will, at your own cost and expense, keep, secure and maintain said "Equipment" in good condition and repair, reasonable wear and tear Excepted, and at termination replace the production supplies and/or pay to the owner to replace other new equipment without deduction for depreciation as may be lost, stolen, missing, broken or damaged due to any cause whatsoever.

5. You agree to insure the " Equipment" against any loss or damages whatsoever for the period that is away from the Wits End premises and t o assume full responsibility for it, and also agree to compensate Wits End for the replacement value (without deduction for depreciation) should said "Equipment" be lost, stolen, missing, broken or damaged by any cause whatsoever, due to yoor fault or not, and to be an insurer for any and all personal liability for any individual or individuals working with or around any Wits End vehicles or equipment. At your own cost and expense, but for the benefit of Wits End, YOLl will immediately insure the said production supplies and/or equipment and personnel for the full replacement value (without deduction for depreciation) against loss or damage by fire, theft, water, an act of God, or injUiy to personnel by any circumstances whatsoever, by a qualified reputable insurance company and shall deliver the policy to us together with receipts for the premiums. You further agree to compensate us for any time lost as a result of having to replace or repair said "Equipment."

6. "Equipment" herein shall be delivered and returned by you and your own risk, cost and expense. Wits End must be n"amed as additional ' insured on the commercial general liability policy and as loss payee on the property policy. Rental of all items taken out must be paid · f or in the period of time until returned to us. No allowance will be made for non-use. Your insurance will be written on a primary and non-contributory basis.

7. If You default on any terms, covenants and conditions herein, or in punctually making any of the payments, or if any execution or other writ or process is issued in any action or proceeding against You, whereby the said "Equipment" may be seized or taken or detained, or if a proceeding in bankruptcy, receivership or insolvency shall be instituted by or against You or your property, or if You shall enter into any arrangement with your creditors, or in the event that any judgment is obtained against You, Wits End shall have the option to retake immediate possession of said "Equipment" and for such purposes, Wits End, our agents or employees may enter upon -any premises where said equipment may be, and may remove it with or without f orce, and with or without notice of intention to retake the same without being liable to any suit or action or proceeding by You.

-8. Upon Wits End retaking possession of the said equipment pursuant to the above provisions, this agreement termina~es, without prejudice to any right or claim of arrears of rent, if any, or on account of any preceding breaches of this agreement, or the loss of rental for the unexpired· term, or for any other claim that Wits End may have against You.

9. You agree to pay all reasonable attorneys' fees and costs incurred by us in protecting our rights or property under this agreement, or insuring You for a breach of this agreement.

10. No terms, r~presentatives or warranties, expressed or implied, not herein set forth in writing shall bind Wits End.

11. This agreement contains the entire' understanding between parties, including representations, and may not be modified, except by another agreement in writing. signed by both" parties to this agreement. The signing of anyone rental contract by the rentee acknowledges an understanding of the terms and conditions of all future contracts, signed or not. This includes circumstances where the equipment is enroute to shooting locations and the contract has not been signed, or where a verbal order is placed for equipment and is being held pending· pick-up.