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HomeMy WebLinkAboutPolentz, Christopher; 2021-08-11; PSALCA-22006CACity Attorney Approved Version 6/12/18 1 AGREEMENT FOR CUSTOM ARTWORK SERVICES FOR OVERSIZED BEACH CHAIR CHRISTOPHER POLENTZ THIS AGREEMENT is made and entered into as of the ______________ day of ___________________, 2021, by and between the CITY OF CARLSBAD, a municipal corporation, ("City"), and Christopher Polentz, a Sole Proprietorship, ("Contractor”, “Artist”). RECITALS City requires the professional services of an artist to create a work of art (“Artwork”) on an oversized beach chair. Contractor has the necessary experience in providing these professional services, has submitted a proposal to City and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. SCOPE OF WORK City retains Contractor to perform, and Contractor agrees to render, those services (the “Services”) that are defined in Exhibit “A”, attached and incorporated by this reference in accordance with the terms and conditions set forth in this Agreement. 2. TERM This Agreement will be effective for a period of six (6) months from the date first above written. 3. COMPENSATION The total fee payable for the Services to be performed will be five thousand dollars ($5,000). No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. City reserves the right to withhold a ten percent (10%) retention until City has accepted the work and/or the Services specified in Exhibit “A.” 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. 5. STATUS OF CONTRACTOR Contractor will perform the Services as an independent contractor and in pursuit of Contractor’s independent calling, and not as an employee of City. Contractor will be under the control of City only as to the results to be accomplished. 6. INDEMNIFICATION Contractor agrees to indemnify and hold harmless the City and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described herein caused by any negligence, recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. The parties expressly agree that any payment, attorney’s fee, costs or expense City incurs or makes to or on behalf of an injured employee under the City’s self-administered workers’ compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1Debbie Jo McCool Tonya Rodzach Richard SchultzDebbie Jo McCool Suzanne Smithson Ed Garbo August 11th City Attorney Approved Version 6/12/18 2 7.INSURANCEContractor will obtain and maintain policies of commercial general liability insurance, automobileliability insurance, a combined policy of workers' compensation, employers liability insurance, andprofessional liability insurance from an insurance company authorized to transact the business ofinsurance in the State of California which has a current Best's Key Rating of not less than "A-:VII";OR with a surplus line insurer on the State of California’s List of Approved Surplus Line Insurers(LASLI) with a rating in the latest Best’s Key Rating Guide of at least “A:X”; OR an alien non-admitted insurer listed by the National Association of Insurance Commissioners (NAIC) latestquarterly listings report, in an amount of not less than one million dollars ($1,000,000) each,unless otherwise authorized and approved by the Risk Manager or the City Manager. Contractorwill obtain occurrence coverage, excluding Professional Liability, which will be written as claims- made coverage. The insurance will be in force during the life of this Agreement and will not becanceled without thirty (30) days prior written notice to the City by certified mail. City will be namedas an additional insured on General Liability which shall provide primary coverage to the City. The full limits available to the named insured shall also be available and applicable to the City as anadditional insured. Contractor will furnish certificates of insurance to the Contract Department,with endorsements to City prior to City’s execution of this Agreement. 8.BUSINESS LICENSEContractor will obtain and maintain a City of Carlsbad Business License for the term of theAgreement, as may be amended from time-to-time. 9.ACCOUNTING RECORDSContractor will maintain complete and accurate records with respect to costs incurred under thisAgreement. All records will be clearly identifiable. Contractor will allow a representative of Cityduring normal business hours to examine, audit, and make transcripts or copies of records andany other documents created pursuant to this Agreement. Contractor will allow inspection of allwork, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 10.OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuantto this Agreement is the property of City. In the event this Agreement is terminated, all workproduct produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to City. Contractor will have the right to make one (1) copyof the work product for Contractor’s records. 11.COPYRIGHTSContractor agrees that all copyrights that arise from the services will be vested in City andContractor relinquishes all claims to the copyrights in favor of City. 12.REPRODUCTION RIGHTS, PUBLICITY AND PHOTOGRAPHYExcept as limited by this Agreement, Contractor retains any or all copyright, licensing, and/orownership rights to the Artworks available to him/her under state or federal law. In accordance with Section 3 of the Scope of Work, Contractor grants City the right to photograph, telecast, video production, social media coverage or make similar visual reproductions of the Artworks covered by this Agreement for publicity and advertising purposes and other educational purposes and in catalogues, posters, postcards, guides or other that it distributes. DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1 City Attorney Approved Version 6/12/18 3 City agrees to acknowledge the artist on all related print matter, exhibition announcements, publicity releases, invitations, posters, signs or other promotional or educational materials relating to the Artworks. 13.HEALTH & SAFETYDuring the COVID-19 health-related pandemic, all activities occurring at City facilities and theChair(s) Recipient’s site, all parties must adhere to the guidance from the state, county, andlocal authorities on health and safety protocols. City staff will inform Contractor what the currentguidelines are prior to their arrival and entering any City facility. Safety protocols may include,but are not limited to, hand washing, temperature testing, requiring face covering, maintainingphysical distancing of six (6) feet. The safety protocols may be modified at any time due to changing rules, regulations or circumstances. 14.OWNERSHIP OF THE ARTWORKS Title to the completed Artworks immediately vests in the City upon completion, along with allrights of ownership, possession and control. Prior to completion of the Artworks, City shall havethe right, at its option, to claim ownership, possession and control of the uncompleted portions of the Artworks which are on site. 15.OWNERSHIP OF DOCUMENTS REPRODUCTION RIGHTSAll work product produced by Contractor or its agents, employees, and subcontractors pursuantto this Agreement is the property of City. In the event this Agreement is terminated, all workproduct produced by Contractor or its agents, employees and subcontractors pursuant to thisAgreement will be delivered at once to City. Contractor will have the right to make one (1) copyof the work product for Contractor’s records. Subject to the rights granted herein, Contractorretains all rights under the Copyright Act of 1976 (17 U.S.C. §101 et. seq.), as amended fromtime to time. The Contractor hereby grants the City, royalty free and irrevocable license tomake, or cause to be made, photographs and other two-dimensional reproductions of the Artworks for noncommercial purposes. For the purpose of this Agreement, the following areamong those deemed to be permissible reproductions for the above cited purposes:reproductions used in City business, advertising, souvenirs, brochures and pamphlets pertaining to the City; reproductions in exhibition catalogues, books, slides, photographs, postcards,posters, calendars, art magazines, art books and art and news sections of newspapers; ingeneral books and magazines not primarily devoted to art; slides and film strips; video; computer websites; and television; as well as in media that shall exist in the future. The Citymay not re-license the Artworks nor make a full-scale exact duplicate of the Artworks nor alterArtworks by selecting portions without Contractor’s consent. The City shall include theContractor’s copyright notice on any reproductions and the Contractor shall include the followingwords on any reproduction: "An original work commissioned by the City of Carlsbad, California." 16.WARRANTIES 16.1. Warranty of Title. The Contractor represents and warrants that: (a)The Artworks is solely the result of the artistic effort of the Contractor.(b)The Artworks is unique and original and does not infringe upon any copyright, trademark, service mark or other intellectual property right of any third party.(c)The Artworks or a duplicate of the Artworks has not been sold elsewhere. DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1 City Attorney Approved Version 6/12/18 4 (a) The Contractor represents and warrants that: The execution and fabrication of the Artworks will be performed in a workmanlike manner.(b)The Artworks, as fabricated and installed, will be free of defects in materials and workmanship, including any defects consisting of “inherent vice" or qualities which cause or accelerate deteriorations of the Artworks. 16.3. Reasonable maintenance of the Artworks will not require procedures in excess of those described in the maintenance recommendations to be submitted by the Contractor to the City along with the design. The warranty of quality and condition shall survive for a period of one year after the final acceptance of the Artworks. The City shall give notice to the Contractor of any observed breach with reasonable promptness. The Contractor shall at the request of the City, and at no cost to the City, cure reasonable and promptly the breach of any such warranty which is curable by the Contractor and which cure is consistent with professional conservation standards (including, for example, cure by means of repair or refabrication of the Artworks.) 17.REPAIRSThe City will have the right to determine when and if repairs and restorations to the Artworksshall be made. 18.WAIVER OF RIGHTSThe Contractor and City acknowledge that the Contractor may have certain rights under the Federal Visual Artists Rights Act of 1990 ("VARA" 17 U.S.C. § 106A, et seq.). The Contractoracknowledges and understands that if fabrication is performed, the subsequent installation ofthe Artworks at the site may subject the Artworks to destruction, distortion, mutilation, or othermodification due to its removal by the City or its officials, officers, employees, agents, orrepresentatives. The Contractor and City acknowledge that the Contractor may have certain rights under California Civil Code Section 987 which are not pre-empted by VARA. In consideration of the terms and conditions in this Agreement, the Contractor waives any rights which the Contractor or the Contractor 's heirs, beneficiaries, devisees, or personal representatives may have under California Civil Code Section 987 to prevent the removal, destruction, distortion, mutilation, or other modification of the Artworks. Any contracts or written agreements between the Contractor and his/her subcontractors or other artists contributing to the Artworks shall include a waiver of the Contractor’s rights under this Agreement. The Contractor agrees to waive the rights under VARA to prevent the destruction, distortion, mutilation, or other modification of the Artworks. The Contractor’s rights under this Agreement shall cease with the Contractor’s death and do not extend to the Contractor’s heirs, successors or assigns. In addition, in the event that any element of the Artworks constitutes a public safety hazard, the City has the right to remove the element posing the public safety hazard. The Contractor, his or her agents, heirs, successors and assigns further agree not to attempt to defeat this waiver by cooperating, encouraging or assisting any organization which seeks to bring an action under these Acts. 16.2. Warranty of Quality and Condition. The Contractor represents and warrants that: DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1 City Attorney Approved Version 6/12/18 5 19.NOTICESThe name of the persons who are authorized to give written notice or to receive written notice onbehalf of City and on behalf of Contractor under this Agreement. For City For Contractor Name Richard Schultz Name Christopher Polentz Title Cultural Arts Manager Title Contractor, Artist Department Library & Cultural Arts Address 1681 Archer Road City of Carlsbad San Marcos, CA 92078 Address 1775 Dove Lane Phone No. 442-248-0159 Carlsbad, CA 92011 Email c.polentz@gmail.com Phone No. 760-602-2086 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 20.CONFLICT OF INTERESTContractor shall file a Conflict of Interest Statement with the City Clerk in accordance with therequirements of the City of Carlsbad Conflict of Interest Code. The Contractor shall reportinvestments or interests in all categories. Yes No 21.COMPLIANCE WITH LAWSContractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment and will obtain and maintain a City of Carlsbad Business Licensefor the term of this Agreement. 22.TERMINATIONCity or Contractor may terminate this Agreement at any time after a discussion, and written noticeto the other party. City will pay Contractor's costs for services delivered up to the time oftermination, if the services have been delivered in accordance with the Agreement. 23.CLAIMS AND LAWSUITSBy signing this Agreement, Contractor agrees it may be subject to civil penalties for the filing offalse claims as set forth in the California False Claims Act, Government Code sections 12650, etseq., and Carlsbad Municipal Code Sections 3.32.025, et seq. Contractor further acknowledgesthat debarment by another jurisdiction is grounds for the City of Carlsbad to terminate thisAgreement. 24.JURISDICTIONS AND VENUEContractor agrees and stipulates that the proper venue and jurisdiction for resolution of any disputes between the parties arising out of this Agreement is the State Superior Court, San Diego County,California. DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1 City Attorney Approved Version 6/12/18 6 25.ASSIGNMENTContractor may assign neither this Agreement nor any part of it, nor any monies due or to becomedue under it, without the prior written consent of City. 26.AMENDMENTSThis Agreement may be amended by mutual consent of City and Contractor. Any amendment willbe in writing, signed by both parties, with a statement of estimated changes in charges or timeschedule. \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1 City Attorney Approved Version 6/12/18 7 27.AUTHORITYThe individuals executing this Agreement and the instruments referenced in it on behalf ofContractor each represent and warrant that they have the legal power, right and actual authorityto bind Contractor to the terms and conditions of this Agreement. CONTRACTOR CITY OF CARLSBAD, a municipal corporation of the State of California By: By: (sign here) SUZANNE SMITHSON Library & Cultural Arts Director As Authorized by City Manager Christopher Polentz, Artist/Contractor (print name/title) ATTEST: By: (sign here) For BARBARA ENGLESON City Clerk (print name/title) If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a corporation, Agreement must be signed by one corporate officer from each of the following two groups: Group A. Group B. Chairman, Secretary, President, or Assistant Secretary, Vice-President CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: For CELIA A. BREWER, City Attorney By: Deputy/Assistant City Attorney DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1 City Attorney Approved Version 6/12/18 8 EXHIBIT “A” SCOPE OF SERVICES The City is requesting Contractor to provide custom Artwork on the surface of a 4’d x 4’w x 6ih oversized beach chair. The Contractor shall determine the artistic expression, and design of the Artwork, subject to review and acceptance by the City’s Cultural Arts Manager or his designee. The oversized beach chair’s material consists of water-jet-plywood, which is sanded and primed. Contractor shall perform all services and furnish all supplies necessary for any additional surface preparation for painting and sealing the oversized beach chair. The City will provide the oversized beach chair to the Contractor for preparing, painting and sealing. Pick-up date/time to be determined of the oversized beach chair to be determined and negotiated with the City Cultural Arts Manager or his designee. As part of the City’s ongoing efforts to maintain their public art projects, the Contractor will provide restoration and conservation work annually over the next two years after this Agreement has been executed. The final Artwork will become part of the City’s temporary public art program installed at a specific City site, which focuses on providing a greater awareness of local and regional artists and heightens the visibility of the arts in Carlsbad. This initiative also directly correlates to the City’s Arts & Culture Master Plan. 1.CITY CONTACT INFORMATION •Cultural Arts Manager, Richard Schultz, 760-602-2086, richard.schultz@carlsbadca.gov •Community Arts Coordinator, Tonya Rodzach, 442-245-0502, tonya.rodzach@carlsbadca.gov •Cultural Arts General Phone, 760-602-2090 *Email may be the initial preferred method of reaching staff. 2.ARTWORKS: ONE OVERSIZED BEACH CHAIR TASK, DESIGN •Transportation. Coordinated with Contractor, the City will pick-up/deliver chair to andfrom Contractor’s studio location. The City’s Cultural Arts Manager or his designee willcoordinate with Contractor for the delivery to the final installation location. •Oversized Beach Chair Rendition. For reference only DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1 Audra Mahoney City Attorney Approved Version 6/12/18 9 •Chair Artwork Requirements. Prepare the oversized beach chair surface inanticipation of Artwork. Design and paint the surface of the oversized beach chair in anaccompanying design concept that is to become temporary public art. After the oversized beach chair is painted, the Artwork and the entire surface of the oversizedbeach chair is to be sealed with a clear coat sealant to protect product from outsideconditions. The sealant will be chosen by the Contractor and will be appropriate for the intended use. •Work Site Requirements. One (1) oversized beach chair will be completed at theContractor’s artist studio •Chair Artwork Maintenance Requirements. After the oversized beach chair has beenaccepted by the City, the Contractor will perform two annual visits to verify and repairgeneral condition of the Artwork on the chair. These annual visits should occur over the next two years post acceptance. All findings shall be communicated in writing to theCity’s Cultural Arts Manager or his designee. 3.CONTRACTOR Programming. Contractor will be available to participate in in-person programming such astours and discussion of Artwork, audio, and/or on-camera interviews and any media opportunity. All programming will be coordinated in advance with the City's Cultural ArtsManager or his designee and shall constitute “work made for hire” under the United StatesCopyright Act of 1976 [17 U.S.C. §§ 101, et seq.] and any other applicable law. City reserves the right to audio and/or video record and to reproduce and distribute anylecture, reading or speaking engagement, and musical concert or musical performanceperformed under this Agreement as virtual programming. City may retain the recording in itsfiles, may replay the recordings for its employees and the public, including the right to post,replay, or broadcast the recordings on the City’s YouTube channel, the City’s cable channel,the City’s and City’s Library Facebook Live account, and other similar City internet-basedplatforms, and may make the recording available for non-circulation use at its libraryfacilities. City shall not sell the recording. City shall provide a copy of the recording to theContractor, upon the Contractor’s request. Press Kit. Upon execution of Agreement, the Contractor agrees to provide a high-resolutionimage of self (headshot preferred) and written biography (up to 300 words) as well as four(4)to five (5) high-resolution images of Artwork being shown in the City. Images shall be delivered to the City's Cultural Arts Manager or his designee in electronic form immediatelyupon the Agreement's execution. Warranty of Title. Contractor warrants the authorized agent of the lawful owner or artist of the Artwork and has the authority to enter into this Agreement and to grant the rights to City as set forth in this Agreement. Contractor also warrants that the Artwork is not now or will be subjected to claims of ownership, lien, encumbrance, copyright infringement, or trademark infringement under any state or federal law. Contractor shall indemnify the City, its officers, and employees for all damages related to a claim asserting a violation or claim of violation of this Warranty of Title, including reasonable attorney fees and costs. DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1 City Attorney Approved Version 6/12/18 10 4.CITY Artwork Installation, Relocation and Deinstallation City shall install and exhibit the Artwork. City reserves the right to make the final decision on which items will be included in the placement of the temporary public art Artwork, and the arrangement, relocation and deinstallation of the Artwork. 5.HEALTH & SAFETY During the COVID-19 health-related pandemic, all activities occurring at City facilities and the Chair(s) Recipient’s site, all parties must adhere to the guidance from the state, county and local authorities on health and safety protocols. City staff will inform Contractor what the current guidelines are prior to their arrival and entering any City facility. Safety protocols may include, but are not limited to, hand washing, temperature testing, requiring face covering, maintaining physical distancing of six (6) feet. The safety protocols may be modified at any time due to changing rules, regulations or circumstances. \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ \\\ DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1 City Attorney Approved Version 6/12/18 11 6.ARTIST ARTWORK CONCEPT Rendition – Panel View Rendition – Detailed Panel Views DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1 City Attorney Approved Version 6/12/18 12 7.PAYMENT SCHEDULE Action Fee/ Required Activities Final payment A payment of $5,000 due upon acceptance of oversized beach chair’s Artwork by Cultural Arts Manager or his designee and the chair is positioned at a specific City site by September 16, 2021, or a date that is mutually agreed upon by the City and Contractor. The contractor is responsible for the final sealant placed on the Artwork. The contractor is responsible for restoring and conserving Artwork twice annually for the next two years after the oversized beach chair is installed. Total cost of project is five thousand dollars ($5,000). All fees will be paid as specified above. All invoices shall be submitted to City’s Cultural Arts Manager Richard Schultz or his designee and shall be sufficiently detailed to include related activities and costs. Final invoice approval will be completed by City’s Library & Cultural Arts Director or her designee. If, at the expiration or termination of the Agreement, if Contractor has not completed any portion of the tasks, Contractor shall refund the remaining portion of the deposit. DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1 DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1 2 Spectrum Proposal with Sentinel Insurance Company A member company of The Hartford 7/23/2021 - 7/23/2022 Policy Level Liability Coverage Limits of Insurance Premium Business Liability:Broad Form Named Insured includes subsidiaries in which greater than 50% of voting stock is owned by the Named Insured $ Included $ Included CyberFlex $ Included $ IncludedDefense Costs outside of the Limits of Insurance $ Included $ Included Employees and Volunteers included as Insureds $ Included $ IncludedIncidental Malpractice $ Included $ Included Mental Anguish resulting from bodily injury, sickness or disease $ Included $ IncludedNewly Acquired Organizations $ 180 days $ Included Non-Owned watercraft under 51 feet $ Included $ IncludedPer Location General Aggregate - owned or rented premises $ Included $ Included Personal and Advertising Liability $ Included $ IncludedProperty Damage to borrowed equipment not being used to perform operations at the job site $ Included $ Included Unintentional failure to disclose hazards $ Included $ Included Additional Insured - Coverage is automatically extended to persons or organizations whose written contracts or permits with the insured require insurance to be provided $ Included $ Included Each Occurrence $ 2,000,000General Aggregate $ 4,000,000 $87 Products/Completed Operations Aggregate $ 4,000,000 $ IncludedPersonal and Advertising Injury $ 2,000,000 $ IncludedDamage to Premises Rented to You $ 1,000,000 $ IncludedMedical Expenses $ 10,000 $ IncludedPolicy Base Premium $ 144 Minimum Premium Difference $ 264Terrorism$ Included $5 Location/Building Level Location/Building Information Location No./Building No. : 001/001Street Address : 1681 Archer Rd City, State and Zip Code : San Marcos, CA 92078-1007Protection Class : 0001 Class Code : 44831Description: Art Studio Including Art Lessons Area : 250 DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1 3 Consider these additional coverages that businesseslike you are buying from The Hartford Talk to your agent about adding these valuable coverages to your Hartford policy. 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Any down payment provided will be withdrawn immediately regardless of down payment date shown. DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1 5 DISCLOSURE PURSUANT TO TERRORISM RISK INSURANCE ACT Terrorism Coverage and Premium In accordance with the federal Terrorism Risk Insurance Act (as amended “TRIA”), we are required to make coverage available under your policy for “certified acts of terrorism.” The actual coverage provided by your policy(ies) will be limited by the terms, conditions, exclusions, limits, and other provisions of your policy(ies), as well as any applicable rules of law. The portion of your premium attributable to this terrorism coverage is shown in the premium section(s) of this quote proposal or binder. Definition of Certified Act of Terrorism A “certified act of terrorism” means an act that is certified by the Secretary of the Treasury, in accordance with the provisions of TRIA, to be an act of terrorism under TRIA. The criteria contained in TRIA for a "certified act of terrorism" include the following: 1. The act results in insured losses in excess of $5 million in the aggregate, attributable to all types of insurance subject to TRIA; and 2.The act results in damage within the United States, or outside the United States in the case of certain air carriers or vessels or the premises of an United States mission; and 3. The act is a violent act or an act that is dangerous to human life, property or infrastructure and is committed by an individual or individuals acting as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. Disclosure of Federal Share of Terrorism Losses under TRIA The United States Department of the Treasury will reimburse insurers for 85% of insured losses that exceed the applicable insurer deductible. Effective January 1, 2016, this percentage will be reduced to 84%, effective January 1, 2017 to 83%, effective January 1, 2018 to 82%, effective January 1, 2019 to 81%, and effective January 1, 2020 to 80%. However, if aggregate industry insured losses under TRIA exceed $100 Billion in a calendar year, the Treasury shall not make any payment for any portion of the amount of such losses that exceeds $100 billion. The United States government has not charged any premium for their participation in covering terrorism losses. Cap on Insurer Liability for Terrorism Losses If aggregate industry insured losses attributable to “certified acts of terrorism” under TRIA exceed $100 Billion in a calendar year, and we have met, or will meet, our insurer deductible under TRIA, we shall not be liable for the payment of any portion of the amount of such losses that exceed $100 billion. In such case, your coverage for terrorism losses may be reduced on a pro-rata basis in accordance with procedures established by the Treasury, based on its estimates of aggregate industry losses and our estimate that we will exceed our insurer deductible. In accordance with the Treasury's procedures, amounts paid for losses may be subject to further adjustments based on differences between actual losses and estimates. Note to Producer on TRIA: The premium for terrorism coverage and the TRIA disclosures above must be provided to the insured or prospect at the time of quoting. If you are not using this quote proposal, you can use Hartford's stand-alone TRIA disclosure form for quotes and binders, which is available on the EBC or from the company. DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1 DocuSign Envelope ID: 5CE27B69-D34B-4C44-865F-75299C87ADB1