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3.2 EXCEPTIONS TO FRANCHISE <br />The granting of this Franchise shall not preclude the categories of materials described below from being <br />delivered to, collected and/or transported by others, provided that nothing in this Franchise is intended to or <br />shall be construed to excuse any person from any authorization from the City which is otherwise required by <br />law: <br />1. Residential Customers from donating or selling Recyclable Materials from Single-Family or Multi- <br />family Residences, or from Mobile Home Parks to any party of their choice. For purposes of this exclusion, <br />donation means to give without any consideration of any nature monetary or otherwise. <br />2. Recyclable collection services provided to Commercial Customers at no cost of any kind to <br />Commercial Customer and further provided that at least ninety (90) percent of each load of Recyclables is <br />actually Recycled, and not the subject of Disposal. <br />3. Materials which would otherwise constitute Franchise Materials that are removed from a premises <br />by a landscaping or gardening contractor retained by the Owner as an incidental part of a gardening, <br />landscaping, tree trimming, cleaning, maintenance, construction or similar service offered by such landscape <br />or gardening contractor rather than as a hauling service. <br />4. Non-Franchise Materials which the Contractor refuses or is not capable of collecting at any point <br />in time because such service cannot reasonably or economically be provided. This exception shall not be used <br />by the Contractor as an excuse for non performance or default hereunder. <br />5. Construction and Demolition Debris materials removed from a construction site by the general or <br />construction contractor as an incidental part of that construction project rather than as a hauling service.. <br />The provisions of this Franchise shall not preclude or prohibit the City or any officer or employer thereof or any <br />employee of the State of California, or any governmental subdivision thereof, from collecting, removing, and <br />disposing of Solid Waste, Recyclables and Green Waste from the City, state or public facilities. <br />3.3 TERM OF AGREEMENT AND EFFECTIVE DATE <br />A. Term. The Term of this Agreement shall continue in force for a period often (10) years from the Effective <br />Date of February 1, 2000, and shall be renewed for an additional ten (10) year period provided that the <br />Contractor is not in material default and subject to the requirements hereof. <br />B. Additional Term. Contractor shall have the option to extend the Term of this Agreement for a ten (10) year <br />period commencing February 1, 2010 and ending January 31, 2020. Notice of the Contractor's exercise of <br />such right shall be given at least eighteen (18) months prior to the expiration of the original Term hereof: <br />1. Within twelve (12) months prior to the expiration of the original term hereof, an independent audit <br />of all financial records of the Contractor required to be maintained in Article 8 and 9 hereof shall be <br />7:h,Pa~SfafT~ktn~fi'an~-use~,ewz.n+pa ovo~~oo Page 11 of 59 <br />