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<br />1 <br /> <br />ARTICLE 12 OTHER AGREEMENTS OF THE PARTIES <br /> <br />2 12.01 RELATIONSHIP OF PARTIES <br /> <br />3 The parties intend that Contractor shall perform the services required by this Agreement <br />4 as an independent contractor engaged by Authority and not as an officer or employee of <br />5 the Authority nor as a partner of or joint venturer with the Authority. No employee or <br />6 agent of Contractor shall be deemed to be an employee or agent of Authority. Except as <br />7 expressly provided herein, Contractor shall have the exclusive control over the manner <br />8 and means of conducting the services performed under this Agreement, and over all <br />9 persons performing such services. Contractor shall be solely responsible for the acts <br />10 and omissions of its officers, employees, subcontractors and agents. Neither Contractor <br />11 nor its officers, employees, subcontractors and agents shall obtain any rights to <br />12 retirement benefits, workers' compensation benefits, or any other benefits which accrue <br />13 to Authority employees by virtue of their employment with Authority. <br /> <br />14 12.02 COMPLIANCE WITH LAW <br /> <br />15 In providing the services required under this Agreement, Contractor shall at all times <br />16 comply with all applicable laws of the United States, the State, the City of San Carlos <br />17 and with all applicable regulations promulgated by federal, state, regional or local <br />18 administrative and regulatory agencies now in force and as they may be enacted, issued <br />19 or amended during the Term, and with all permits affecting the services to be provided. <br /> <br />20 12.03 ASSIGNMENT <br /> <br />21 Contractor acknowledges that this Agreement involves rendering a vital service to <br />22 Authority's residents and businesses, and that Authority has selected Contractor to <br />23 perform the services specified herein based on (i) the experience, skill and reputation of <br />24 Contractor's Members for conducting their operations in a safe, effective and responsible <br />25 fashion, and (ii) the financial resources of Contractor's Members to maintain the required <br />26 equipment and to support Contractor's indemnity obligations to Authority under this <br />27 Agreement. Authority has relied on each of these factors, among others, in choosing <br />28 Contractor to perform the services to be provided by Contractor under this Agreement. <br /> <br />29 A. Authority Consent Reauired. Contractor shall not assign its rights or delegate or <br />30 otherwise transfer its obligations under this Agreement to any other Person without <br />31 the prior written consent of Authority. Any such assignment made without the <br />32 consent of Authority shall be void and the attempted assignment shall constitute a <br />33 Contractor Default. <br /> <br />34 B. Assianment Defined. For the purpose of this Section, "assignment" shall include, but <br />35 not be limited to, (i) a sale, exchange or other transfer to a third party of substantially <br />36 all of Contractor's assets dedicated to service under this Agreement; (ii) a sale, <br />37 exchange or other transfer of a membership interest in Contractor to a person who is <br />38 not a Member as of the Effective Date which results in a change in control of <br />39 Contractor; (iii) any dissolution, reorganization, consolidation, merger, re- <br />40 capitalization, stock issuance or reissuance, voting trust, pooling agreement, escrow <br />41 arrangement, liquidation or other transaction which results in a change of ownership <br />42 or control of Contractor; (iv) any assignment by operation of law, including insolvency <br />43 or bankruptcy, an assignment for the benefit of creditors, a writ of attachment for an <br />44 execution being levied against this Agreement, appointment of a receiver taking <br />45 possession of Contractor's property, or transfer occurring in the event of a probate <br />46 proceeding; and (v) any combination of the foregoing (whether or not in related or <br /> <br />Operating Agreement for Shoreway Center <br /> <br />Page - 47 - <br /> <br />7/30/09 <br />