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any and all premiums in connection therewith, with any reasonable sums so expended to <br />be repaid to the City on demand. <br />Section 9. Other Permits and Approvals. Nothing in this Agreement shall relieve <br />Franchisee from any obligation to obtain approvals or necessary permits from applicable <br />federal, state and City authorities for all activities in the Franchise Area. <br />Section 10. Transfer of Ownership. <br />A. The rights, privileges, benefits, title, or interest provided by this Franchise shall <br />not be sold, transferred, assigned or otherwise encumbered, without the prior written <br />consent of the City, with such consent not being unreasonably withheld or delayed. No <br />such consent shall be required, however, for a transfer in trust, by other hypothecation, <br />or by assignment or any rights, title or interest in Franchisee's telecommunications system <br />in order to secure indebtedness. Approval shall not be required for mortgaging purposes <br />provided that the collateral pledged for any mortgage shall not include the assets of this <br />franchise. Approval shall not be required for any transfer from Franchisee to another <br />person or entity controlling, controlled by, or under common control with Franchisee. <br />Franchisee may license fibers to other users without the consent of the City provided that <br />Franchisee remains solely responsible for the terms and conditions outlined in this <br />Franchise Agreement. <br />B. In any transfer of this Franchise which requires the approval of the City, <br />Franchisee shall show that the recipient of such transfer has the technical ability, financial <br />capability, and any other legal or general qualifications as reasonably determined by the <br />City to be necessary to ensure that the obligations and terms required under this <br />Franchise Agreement can be met to the full satisfaction of the City. This Franchise may <br />not be transferred without filing or establishing with the City the insurance certificates, <br />security fund, and performance bond as required pursuant to this Franchise. The <br />qualifications of any transferee shall be determined by hearing before the City Council <br />and the approval to such transfer shall be granted by resolution of the City Council. Any <br />reasonable administrative costs associated with a transfer of this Franchise that requires <br />the approval of the City shall be reimbursed to the City within 30 days of such transfer. <br />The transferee(s) shall thereafter be responsible for all obligations of Franchisee with <br />respect to the Franchise; provided, that the transfer shall not in any respect relieve the <br />Franchisee, or any of its successors in interest, of responsibility for acts or omissions, <br />known or unknown, or the consequences thereof, if the acts or omissions occur before <br />the time of the transfer. <br />Section 11. Administrative Fees. <br />A. Pursuant to the Revised Code of Washington (RCW), the City is precluded from <br />imposing franchise fees for "telephone businesses" as defined in RCW 82.16.010, or <br />"service provider" as defined in RCW 35.99.010, except that fees may be collected for <br />administrative expenses related to such franchise or site specific charges pursuant to <br />RCW 35.21.860(1)(e). Franchisee does hereby warrant that its operations, as authorized <br />under this Franchise Agreement, are those of a telephone business as defined in RCW <br />82.16.010 or a service provider as defined in 35.99.010. <br />31 <br />