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2749 At no additional cost, Contractor shall replace Customer Carts that have been 2750 stolen, lost, damaged, or destroyed within five (5) Business Days. Contractor shall 2751 allow Customer to exchange Containers for a Container of a different size at no 2752 additional cost and shall replace Containers within five (5) Business Days of 2753 Customer request. 2754 The Contractor recognizes that the majority of Containers in service on the 2755 Commencement Date have nearly reached the end of their useful life or will reach 2756 the end of the useful life during the Term of the Agreement. Contractor has planned 2757 to replace Containers that have reached the end of their useful life on a rolling basis 2758 over the Term of the Agreement. Contractor's estimated depreciation and interest 2759 expense for Container replacement over the Term and these expenses are included 2760 in Contractor's Compensation in the amount specified in Attachment K. Contractor 2761 shall not be entitled to an adjustment to Contractor's Compensation or Rates for 2762 Container replacements purchased during the Term of the Agreement. 2763 F. Agency's Rights to Containers. All Carts, Bins, and Drop Boxes purchased or 2764 leased by Contractor and put into service at Customers' Premises before the first 2765 anniversary of the Commencement Date shall become property of the Agency upon 2766 expiration or early termination of this Agreement. All Carts, Bins, and Drop Boxes 2767 purchased or leased and put into service at Customers' Premises on or after the 2768 first anniversary of the Commencement Date that have not been fully depreciated 2769 shall be available to the Agency, at the Agency's option, at their net book value, 2770 upon expiration or early termination of this Agreement. 2771 At its sole discretion, the Agency may elect not to exercise its rights under this 2772 subsection. In such case, the Containers shall remain the property of the Contractor 2773 upon the expiration or earlier termination of this Agreement. In such case, 2774 Contractor shall be responsible for removing all Containers in service from 2775 Premises. Contractor shall do so within ten (10) Business Days after such 2776 expiration or earlier termination or in accordance with an alternative Container 2777 removal schedule agreed upon by the Parties, provided that Agency has notified 2778 Contractor at least ninety (90) Days before such expiration or earlier termination 2779 whether or not it intends to acquire the Containers. 2780 G. Lock Service (Key Service). In order to promote security, respond to Customer 2781 needs, and minimize the impact or occurrence of illegal dumping and theft of 2782 Recyclable Materials, Contractor will provide to Customers, at the Agency -approved 2783 Charges specified in Attachment Q, locks for enclosures used to store Containers or 2784 locks for Containers and ensure the enclosures or Containers are locked after 2785 providing Collection Service. 2786 Only Contractor, Agency, and the participating Customers will be provided with a 2787 key to the enclosures and access to the Containers. The Contractor shall 2788 prominently display the service schedule on the enclosure and any changes in 2789 service shall be displayed on the enclosure by Contractor within one (1) Business 2790 Day of making the change. If the Carts or Bins are left "outside" in a designated 2791 area, each Container will be locked (keyed alike), and only Contractor staff, Agency 2792 staff, and the participating Customers will be provided with a key to access the 2793 Containers. At least once each calendar year, Contractor's route supervisor shall 2794 visit each of the participating Customers with shared Containers, respond to any REV: 03-16-18 MI Page 67 of 126 ATTY/AGR.2018.054/Recology of San Mateo