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5. Assignment and Subcontracting. It is recognized by the parties hereto that a
<br /> substantial inducement to City for entering into this agreement was, and is, the qualifications and
<br /> competence of Contractor. Therefore, Contractor shall not subcontract, assign or transfer any
<br /> portion of the performance contemplated and provided for in this Agreement without the
<br /> approval of the City Manager. Contractor shall not subcontract any portion of the performance
<br /> contemplated and provided for herein without prior written approval of the City.
<br /> 6. Hold Harmless. Contractor shall, to the fullest extent allowed by law, with
<br /> respect to all services performed in connection with this Agreement, defend with counsel
<br /> acceptable to City, indemnify, and hold City, its officers, employees, agents, and volunteers,
<br /> harmless from and against any and all claims that arise out of, pertain to, or relate to the
<br /> negligence, recklessness, or willful misconduct of the Contractor, subcontractor, or anyone
<br /> directly or indirectly employed by any of them or anyone for whose acts any of them may be
<br /> liable ("Claims"). Contractor will bear all losses, costs, damages, expense and liability of every
<br /> kind, nature and description, including attorneys' fees, experts fees, court costs and
<br /> disbursements, that arise out of, pertain to, or relate to such Claims, whether directly or indirectly
<br /> ("Liability"). Such obligations to defend, hold harmless and indemnify the City shall not apply
<br /> to the extent that such Liability is caused by the sole negligence or willful misconduct of the
<br /> City.
<br /> With respect to third party claims against the Contractor, the Contractor waives any and
<br /> all rights of any type of express or implied indemnity against the Indemnitees.
<br /> However, notwithstanding the foregoing, in accordance with California Civil Code
<br /> Section 1668, nothing in this Agreement shall be construed to exempt the City from its own
<br /> fraud, willful injury to the person or property of another, or violation of law.
<br /> Furthermore, notwithstanding the forgoing, to the extent this Agreement is a construction
<br /> contract" as defined by California Civil Code section 2783, as may be amended from time to
<br /> time, such duties of Contractor to indemnify shall not apply when to do so would be prohibited
<br /> by California Civil Code Section 2782.
<br /> Nothing herein contained in this Agreement shall be construed to require Contractor to
<br /> indemnify Indemnitees against any responsibility or liability in contravention of California Civil
<br /> Code Section 2782.8.
<br /> The Parties expressly agree that any reasonable payment, attorney's fee, cost or expense
<br /> City incurs or makes to or on behalf of an injured employee under the City's self-administered
<br /> workers' compensation is included as a loss, expense or cost for the purposes of this section.
<br /> 7. Insurance. Contractor shall obtain and maintain for the duration of the
<br /> Agreement and any and all amendments, insurance against claims for injuries to persons or
<br /> damage to property which may arise out of or in connection with performance of the Services by
<br /> Contractor or Contractor's agents, representatives, employees or subcontractors. The insurance
<br /> carrier is required to maintain an A.M. Best rating of not less than "A-:VII".
<br /> Page 2 of 13
<br /> REV: 10-19-16 RL
<br /> ATTY/AGR.2016.300/Bay Area Paving Co., Inc.
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