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3.9 Agency Fees Agency may assess such fees on Company, including but not limited to franchise fees and AB 939 fees, as Agency may determine are reasonably related to the provision of services, in accordance with this Agreement. Any such fees levied on Company under this provision shall be included in Company's revenue requirement, without profit or mark-up of any kind, for purposes of determining rates, as provided in Article VI of the Unifo~¥L Franchise Agreement. 8 3.10 Ownership of Green Waste 9 Once Green Waste is placed in Containers and properly presented for Collection, 10 ownership and the right to possession shall transfer directly from the Waste 11 Generator to Company by operation of this Agreement, and by the City's 12 MUnicipal Codes, subject to Company's objective to meet the Source Reduction 13 and Recycling goals which apply to Agency. Company is hereby granted the 14 right to retain, Recycle, process, reuse, and otherwise use such Green Waste and 15 Recyclable Materials, or any part thereof, in any lawful fashion or for any lawful 16 purpose consistent with Article IV of this Agreement and the hierarchy and goals 17 of AB 939. Subject to the provisions of this Agreement, Company shall have the 18 right to retain any benefit resulting from its right to retain, Recycle, process, or 19 reuse the Green Waste and Recyclable Materials which it Collects. 20 Green Waste and Recyclable Materials, or any part thereof, which are delivered 21 to a Facility (Processing Facility, transformation facility, or Materials Recovery 22 Facility) shall become the property of the Owner or operator of the Facility(s) 23 once deposited there by Company. The Agency may obtain ownership or 24 possession of Recyclable Materials and Green Waste placed for Collection upon 25 written notice of its intent to do so, however, nothing in this Agreement shall be 26 construed as giving rise to any inference that Agency has such ownership or 27 possession unless such written notice has been given to Company. 28 3.11 Company Status 29 Company is duly organized, validly existing, and in good standing under the 30 laws of the State of California. It is qualified to transact business in the State of 31 California, and has the power to own its properties and to carry on its business 32 as now owned and operated, and as required by this Agreement. Page16 8/2/96