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ARTICLE II. <br /> <br /> GRANT AND ACCEPTANCE OF FRANCHISE <br /> <br /> Section 2.1. Grant and Acceptance of Franchise. Agency <br />hereby grants to Company, and Company hereby accepts and agrees <br />to perform, the exclusive franchise to Collect all Solid Waste <br />generated on any Residential Property and on any Commercial and <br />Industrial Property lccated within the Service Area of Agency, <br />and to dispose thereof at a site or sites designated by Agency, <br />or Authority on behalf of Agency, except as herein otherwise <br />provided, all in accordance with the Solid Waste Management Plan <br />of the County of San Mateo, California, and subject to the terms <br />and conditions hereof. <br /> <br /> Section 2.2. Term. (a) Commencement. The term of this <br />agreement shall be seven years commencing on the first day of the <br />initial Operating Year, to wit: October 1, 1987, at which time <br />the existing agreement between the parties, dated July 30, 1979 <br />(as amended by Amendment to Agreement dated August 28, 1980), <br />shall be superseded, except that all rights, duties and <br />obligations that arose under the existing agreement shall be <br />determined in accordance therewith. <br /> <br /> (b) Expiration. The term of this agreement shall expire on <br />September 30, 1994 except as herein otherwise provided. <br /> <br /> (c) Extensions. The term of this agreement shall be <br />extended automatically for not more than two additional <br />successive Operating Years following the abovementioned <br />expiration date; provided, that each such extension, shall not be <br />effective if, (i) on or before September 30, 1992, Agency gives <br />Company written notice of Agency's determination not to extend <br /> <br /> 6 <br /> <br /> <br />