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ARTICLE XIII. SUBCONTRACTING Contractor shall not subcontract services under this Agreement without the City's written consent. The giving of any consent to a particular subcontract shall not dispense with the necessity of obtaining consent to any further or other subcontracts. Subcontracting, if permitted, shall not relieve Contractor of any of its obligations under this Agreement. Contractor shall be and remain solely responsible to the City for the acts or faults of any its subcontractor and of its subcontractor's officers, agents, and employees, each of whom shall be deemed to be the agent or employee of Contractor to the extent of its subcontract. Contractor and any subcontractor shall jointly and severally agree that the City is not obligated to payor to be liable for the payment of any sums due to any subcontractor. Nothing in this. Agreement shall be construed to create any third-party beneficiaries under this Agreement. ARTICLE XIV. DEFAULT OF CONTRACTOR Contractor: 38725·J A. Events of Default Each of the following shall constitute a default by (1) Contractor becomes insolvent, makes a general assignment for the benefit of creditors, or files a voluntary petition in bankruptcy or consents to the appointment of a receiver, trustee, or liquidator of all or substantially all of its property; (2) By order or decree of a court, Contractor is adjudged bankrupt or an order is made approving a petition filed by any creditors or, if Contractor is a corporation, by any of the stockholders of Contractor, seeking its reorganization or the readjustment of its indebtedness under the federal bankruptcy laws or any law or statute of the United States or of any state; (3) A petition under any part of the federal bankruptcy laws or an action under any present or future insolvency law or statute is filed against Contractor and is not dismissed within 30 days after the filing; (4) Contractor voluntarily abandons, deserts, vacates, or discontinues its services required under this Agreement; 6
B. (5) Contractor fails to pay promptly any monies required under this Agreement to the City within 10 days after receipt of written notice given in accordance with Article XV; or (6) Contractor fails to keep, perform, and observe any of the terms of this Agreement and this failure continues for a period of 10 days after receipt of notice from the City, except when . fulfillment of its obligation requires activity over a period of time and Contractor has commenced to perform to the satisfaction of the City whatever may be required for fulfillment within 5 days after receipt of notice given in accordance with Article XV and continues such performance without interruption. City'S Remedies For Default Upon the happening of anyone or more of the events set forth in Paragraph A of this Article or upon any other default or breach of this Agreement, the City may exercise concurrently or successively anyone or more of the following rights and remedies: (1) Upon five days' notice, terminate this Agreement; (2) Without waiving any default, pay any sum required to be paid by Contractor to others than the City and which Contractor has failed to pay and perform any obligation required to be performed by Contractor under this Agreement. Any amounts paid by the City in fulfilling the obligations of Contractor under this Agreement, including all interest, costs, damages, attorneys'· fees, and penalties, shall be repaid by Contractor to the City on demand with interest at the rate of 12% per annum from the date of such payment; (3) Sue for the collection of fees or other amounts for which Contractor may be in default or for the performance of any other promise or agreement devolving upon Contractor for performance or damage therefor, all without terminating this Agreement; and (4) ExerCise any and all additional rights and remedies that the City may have at law or in equity. C. Waiver of Default No waiver by the City of any of the terms or conditions of this Agreement shall be considered as a waiver of the term or condition or any other term or condition in this Agreement. No delay, failure, or omission of the City to exercise any right, power, 38725-1 7
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City of Cleveland Department of Law
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