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ARTICLE III GRANT AND ACCEPTANCE OF AGREEMENT 3 3.1 Grant and Acceptance 4 Subject to Section 3.5, Agency hereby grants to Company the exclusive right and 5 privilege to Collect, Recycle, and process Green Waste generated on Residential 6 - Properties located in the Agency and offered for Collection to Company in 7 accordance with this Agreement. 8 3.2 Effective Date 9 The effective date of this Agreement shall be January 1, 1997 ("effective date"). 10 3.3 Term of Agreement 11 The ter:.t of this Agreement shall commence at 12:01 a.m., January 1, 1997. The 12 termination of this Agreement shall coincide with the tertnination of the Urfifoccct. 13 Franchise Agreement. 14 3.4 Option to Extend Tecta 15 The term of this Agreement shall be subject to extension automatically if the 16 Uniform Franchise Agreement is extended, as provided in the First Amendment 17 to the Uniform Franchise Agreement dated October 1, 1987. 18 3.5 Conditions to Effectiveness of Agreement 19 The obligation of Agency to permit this Agreement to become effective and to 20 perform its undertakings provided for in this Agreement is subject to the 21 satisfaction of each and all of the conditions set out below, each of which may be 22 waived in whole or in part by Agency. 23 A. Accuracy of Representations. Representations and warranties made by 24 Company in its Proposal and throughout this Agreement are accurate, true, 25 and correct on and as of the effective date of this Agreement. 26 B. Absence of Litigation. There is no litigation pending in any court challenging 27 either the award of this Agreement to Company or the execution of this 28 Agreement, or seeking to restrain or enjoin its performance. 29 C. Furnishing of Insurance and Bond~ Company has furnished evidence of the 30 insurance and bonds required by Article VIII. Page l2 8/2/96