Common use of Term and Option to Extend Clause in Contracts

Term and Option to Extend. 961 The Term of this Agreement shall commence March 1, 2015 (Commencement Date) and continue in full 962 force for a period of ten (10) years, through and including February 28, 2025, unless the Agreement is 963 extended in accordance with this Section or terminated pursuant to Article 14.Between the Effective 964 Date and Commencement Date, Contractor shall perform all activities necessary to prepare itself to start 965 providing services required by this Agreement on the Commencement Date. 966 At the CCCSWA’s sole discretion, the Term of this Agreement may be extended, for up to twenty‐four 967 (24) months after February 28, 2025 (i.e., until February 28, 2027), in one or more periods specified by 968 the CCCSWA. Such extensions shall be conditioned upon the Contractor’s achievement of the two 969 performance standards defined in Section 4.2, each of which may be waived by the CCCSWA, in its sole 970 discretion. If the CCCSWA elects to exercise this option to extend the Term, it shall give written notice 971 of its election to the Contractor, specifying the number of months by which it wishes to extend the 972 Term, one hundred eighty (180) Days prior to the expiration date then existing under this Agreement. 973 Prior to extending the Term, the Parties shall meet and confer to discuss depreciation of Collection 974 vehicle and Containers in service and future acquisition needs and related costs, if any. The Parties shall 975 agree on how depreciation and interest expenses shall be treated during the extension period. Parties 976 shall analyze whether, and if so, how much the depreciation and interest expenses may be reduced for 977 equipment that is fully depreciated and how to address depreciation and interest expense of any 978 equipment that will need to be purchased during the extension period under consideration. The 979 CCCSWA Executive Director shall make the final determination in the event any disputes arise regarding 980 depreciation and interest expenses during the extension period. 981 The CCCSWA has no obligation to renegotiate, renew, or extend the rights granted to Contractor beyond 982 the initial ten‐year (10‐year) Term of the Agreement. 983 4.2 Extension Conditions 984 Any extension to the Term of the Agreement is conditional upon Contractor meeting the following two 985 requirements, each or either of which may be waived by the CCCSWA:

Term and Option to Extend. 961 1023 The Term of this Agreement shall commence March 1, 2015 (Commencement Date) and continue in full 962 1024 force for a period of ten (10) years, through and including February 28, 2025, unless the Agreement is 963 1025 extended in accordance with this Section or terminated pursuant to Article 14. 14.Between the Effective 964 1026 Date and Commencement Date, Contractor shall perform all activities necessary to prepare itself to start 965 1027 providing services required by this Agreement on the Commencement Date. 966 1028 At the CCCSWA’s sole discretion, the Term of this Agreement may be extended, for up to twenty‐four 967 1029 (24) months after February 28, 2025 (i.e., until February 28, 2027), in one or more periods specified by 968 1030 the CCCSWA. Such extensions shall be conditioned upon the Contractor’s achievement of the two 969 1031 performance standards defined in Section 4.2, each of which may be waived by the CCCSWA, in its sole 970 1032 discretion. If the CCCSWA elects to exercise this option to extend the Term, it shall give written notice 971 1033 of its election to the Contractor, specifying the number of months by which it wishes to extend the 972 1034 Term, one hundred eighty (180) calendar days Days prior to the expiration date then existing under this 1035 Agreement. 973 1036 Prior to extending the Term, the Parties shall meet and confer to discuss depreciation of Collection 974 1037 vehicle and Containers in service and future acquisition needs and related costs, if any. The Parties shall 975 1038 agree on how depreciation and interest expenses shall be treated during the extension period. Parties 976 1039 shall analyze whether, and if so, how much the depreciation and interest expenses may be reduced for 977 1040 equipment that is fully depreciated and how to address depreciation and interest expense of any 978 1041 equipment that will need to be purchased during the extension period under consideration. The 979 1042 CCCSWA Executive Director shall make the final determination in the event any disputes arise regarding 980 1043 depreciation and interest expenses during the extension period. 981 1044 The CCCSWA has no obligation to renegotiate, renew, or extend the rights granted to Contractor beyond 982 1045 the initial ten‐year (10‐year) Term of the Agreement. 983 1046 4.2 Extension Conditions 984 1047 Any extension to the Term of the Agreement is conditional upon Contractor meeting the following two 985 1048 requirements, each or either of which may be waived by the CCCSWA: