RESIDENTIAL SOLID WASTE COLLECTION CONTRACT THIS CONTRACT, entered into this 1st DAY OF OCTOBER 2015, by and between Cypress Forest PUD, hereinafter referred to as Customer, and Waste Corporation of Texas, LP., hereinafter referred to as WCA. In consideration of the covenants and agreements set out and the payments provided for, WCA and Customer, agree as follows: 1. CONTRACT AMOUNT WCA will be paid $19.47 per residential connection per month for twice weekly backdoor service of household trash utilizing customer owned container and once a month curbside service of heavy trash. WCA will be paid $3.94 per residential connection per month for once weekly backdoor service of household recycling. Recycling service will be provided on a subscription basis subject to the terms of this agreement. 2. PAYMENT A. For services defined in this Contract, WCA shall invoice Customer on a monthly basis. Customer shall be obligated to make full payment to WCA within thirty (30) days of receipt of WCA's invoice. For all unpaid Customers, WCA will send statements indicating the past due balance and assess a $25.00 late penalty. After forty-five (45) days from original invoice, all unpaid Customers will have their service discontinued. Any unpaid Customer, whose service is discontinued for non-payment, or for any other reason, shall be obligated to pay a $30.00 reconnection fee before service is recommenced. B. Except as otherwise provided by this Contract, the rate of compensation shall remain effective for a period of one (1) year. The rate of compensation shall thereafter be automatically adjusted once each year on the anniversary date of this Contract, and continuing through any and all renewal terms, by 100% of the increase of the most recently published Consumer Price Index-All Urban Consumers, Series UD: CUSR0000SEHG Water and sewer and trash collection services, published by the United States Department of Labor, Bureau of Labor Statistics. In the event the U.S. Department of Labor, Bureau of Labor Statistics ceases to publish the CPI, the Customer and WCA hereto agree to substitute another equally authoritative measure of change in the purchasing power of the U.S. dollar as may then be available so as to carry out the intent of this provision. C. If any Customer requests same day collection by WCA on a day that differs from such Customer’s regularly scheduled trash pick-up day, Customer shall be charged and obligated to pay an additional charge of $25.00, which shall be included in such Customer’s next invoice. Cypress Forest PUD - 2015 1 of 6 3. GRANT OF EXCLUSIVE AUTHORITY Customer will not contract with any other entity for the purpose of collection and disposal of solid waste, garbage, refuse, trash, rubbish and recycling within the boundaries of the Customer or any tracts, territories or areas hereafter annexed to, or acquired by the Customer. 4. TERM A. The initial term of the Contract shall be for a four (4) year period beginning upon the effective date of the Contract. Contract shall automatically renew for one (1) year period unless sixty (60) days advance written notice of cancellation is given prior to the termination of the initial term, or any renewal term. Customer shall have the right to terminate this contract if Customer, in its sole discretion, determines that WCA is not complying with the terms of this Contract. In the event WCA does not perform according to the terms of the Contract, Customer shall have the right to cancel the Contract, provided Customer shall have first given WCA thirty (30) days’ written notice of WCA’s non-performance. Any such written notice shall be served by certified or registered mail, return receipt requested. If, after the expiration of such thirty day cure period, Customer determines that WCA is still not complying with the terms of this Contract, Customer shall have the right in its sole discretion to terminate this Contract, to be effective thirty days after written notice of its intent to terminate. B. In addition to the above, WCA may petition the Customer at any time for additional rate and price adjustments at reasonable times on the basis of unusual changes in its cost of operations, such as revised laws, ordinances or regulations; changes in location of disposal sites or changes in disposal charges; and increase in the number of residential units, such as city growth or annexation. Any such rate adjustment must be pre-approved in writing by Customer, but will not be unreasonably withheld. 5. RIGHT OF ASSIGNMENT This Contract, as well as the rights hereunder, may be assigned by WCA, as well as any and all successors at its option but only with prior written approval of the Customer. 6. WORK SPECIFICATIONS A. On each regularly scheduled collection day, Tuesday and Friday, WCA will collect residential refuse at residents backdoor. Yard waste will be picked up at the curb and must be placed in plastic bags weighing not more than 40 pounds each bag. Tree, shrub and brush trimmings not contained within the cart must be bundled in lengths no greater than 4-feet and weighing less than 40-pounds and branches with a maximum diameter of 3-inches, and placed at the curb. As part of normal collection WCA does not pick up dirt, rocks, bricks, concrete or any materials or items deemed hazardous materials or waste generated by a private contractor. Bulky waste (refrigerators and freezers must be drained of Freon and have a bill to validate such service was performed) will be picked up either scheduled day and must also be located at the curb. For special collection other than normal amounts of residential refuse, yard trimmings or bulk items, if notified in advance WCA will Cypress Forest PUD - 2015 2 of 6 meet with the resident prior to collection day to negotiate a price, which will be paid by the resident directly. If a resident does not notify WCA of such a special pick up before their scheduled day, then WCA will leave a notice for the resident to contact WCA during normal office hours before their next scheduled pick up day. B. Please place trash at the backdoor by 7:00am on each Tuesday and Friday. C. All permanent trash containers, after being emptied by WCA, will be returned to their point of origin in the same condition in which they were taken, normal wear and tear expected. D. WCA shall clean up any spillage that occurs during the collection process; provided, however, that if gasoline, motor oil, cooking oil, paint, or any other liquid items in a garbage container are not seen by WCA personnel resulting in spillage that causes a stain, WCA shall not be responsible. 7. OPERATION A. Hours of Operation: Collection of refuse will not start before 7:00 a.m. or continue after 3:00 p.m. on the same day. Exceptions would be due to unusual circumstances. B. Holidays: If the scheduled collection day falls on any of the following holidays the normal service will be resumed the following scheduled pick up day. Holidays are: New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. C. Complaints: All complaints will be made to WCA. If a resident is missed due to WCA's negligence, WCA will pick up said resident within twenty-four (24) of such notice. D. Office: WCA can be reached at 281-789-1981 any time during normal office hours from 8:00 a.m. to 5:00 p.m. Monday thru Friday. The office is located at 24030 Tomball Parkway, Tomball, Texas 77375. 8. FORCE MAJEURE The performance of this Agreement may be suspended and the obligations hereunder excused in the event and during the period that such performance is prevented by a cause or causes beyond reasonable control of Customer or WCA. Such causes shall include, but not be limited to, acts of God, acts of war, riot, fire, explosion, accident, flood or sabotage; fuel shortages, lack of power or raw materials; judicial or governmental laws, regulations (provided that neither Customer or WCA shall be required to settle a labor dispute against its own best judgment). Collection of debris and waste generated by a force majeure are not included under the terms and conditions of this Agreement. In the event of such circumstance, WCA and the Customer may negotiate collection and rates for such debris and waste. Cypress Forest PUD - 2015 3 of 6 9. INDEMNIFICATION TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, WCA AGREES TO PROTECT, DEFEND, INDEMNIFY AND HOLD CUSTOMER, ITS OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS HARMLESS FROM AND AGAINST ALL CLAIMS, DEMANDS, CAUSES OF ACTION, SUITS, JUDGMENTS, PENALTIES, LIABILITIES, DEBTS, OR DAMAGES, INCLUDING ALL COSTS, EXPENSES AND ATTORNEYS' FEES THEREOF, OF ANY NATURE, KIND OR DESCRIPTION, RESULTING FROM THE PERFORMANCE OF ITS DUTIES UNDER THE TERMS OF THIS CONTRACT, INCLUDING BUT NOT LIMITED TO, PERSONNEL FURNISHED BY WCA OR ITS SUPPLIERS AND SUBCONTRACTORS OF ANY TIER ON ACCOUNT OF BODILY INJURY, DEATH OR DAMAGE TO OR LOSS OF PROPERTY IN ANY WAY OCCURRING, INCIDENT TO, ARISING OUT OF, OR IN CONNECTION WITH THE WORK PERFORMED OR TO BE PERFORMED BY WCA HEREUNDER OR OCCURRING, INCIDENT TO, ARISING OUT OF, OR IN CONNECTION WITH THE PRESENCE OF WCA, ITS PERSONNEL, AGENTS, SUPPLIERS AND SUBCONTRACTORS (AND THEIR RESPECTIVE PERSONNEL) IN THE ASSOCIATION, ALL (1) REGARDLESS OF WHETHER OR NOT CUSTOMER, ITS DIRECTORS OR AGENTS ARE NEGLIGENT IN WHOLE OR IN PART, AND EVEN WHEN CAUSED BY THE JOINT, CONCURRENT OR SOLE FAULT OR NEGLECT OF CUSTOMER, ITS OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS, AND (2) REGARDLESS OF WHETHER OR NOT WCA, ITS OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS ARE NEGLIGENT IN WHOLE OR IN PART AND WHEN CAUSED BY THE JOINT, CONCURRENT OR SOLE FAULT OR NEGLECT OF WCA, ITS OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS. 10. LICENSES WCA will, at its expense, obtain all licenses and permits necessary for the performance of WCA's services as set forth by the contract. 11. INSURANCE WCA shall maintain at its sole cost and expense not less than the insurance coverage set forth: A. Workers Compensation: $1,000,000 Bodily Injury (Each Accident) $1,000,000 Bodily Injury By Disease (Policy Limit) $1,000,000 Bodily Injury By Disease (Each Employee) B. General Liability: $2,000,000 General Aggregate $2,000,000 Products/Completed Operations Aggregate $1,000,000 Personal & Advertising Injury $1,000,000 Each Occurrence Cypress Forest PUD - 2015 4 of 6 C. Automobile Liability: $1,000,000 Bodily Injury and Property Damage $100,000 Personal Injury Protection - Each Person D. Commercial Umbrella Coverage $1,000,000 Each Occurrence $1,000,000 Aggregate 12. NOTICE All notices given or required under this Contract shall be given in writing and shall be given either by hand delivery or by depositing such notice in the United States first-class mail, postage prepaid, by certified or registered mail, return receipt requested, enclosed in an envelope addressed to the WCA or Customer to be notified at the following address, or at such other address WCA or Customer shall from time to time designate in writing: Notice delivered in accordance with this paragraph shall be deemed delivered upon delivery, if delivered by hand, and three business days after deposit in a domestic United States depository box, if delivered by mail. If notice to WCA is necessary: If notice to Customer is necessary: Waste Corporation of Texas, L.P. 24030 Tomball Parkway Tomball Texas 281-789-1981 Cypress Forest Public Utility District C/O Allen Boone Humphries Robinson LLP 3200 Southwest Freeway #2600 Houston, Texas 77027 13. INDEPENDENT CONTRACTOR WCA and Customer agree that WCA is an independent contractor and has sole responsibility for the method, manner and supervision of the services that WCA is obligated to render under the terms of this Contract. Cypress Forest PUD - 2015 5 of 6 14. SEVERABILITY If any provision of this Contract shall, for any reason, be held in violation of any applicable law and/or unenforceable, then the invalidity of such specified provision herein shall not be held to invalidate any other provision herein, all of which such other provisions shall remain in full force and effect. 15. APPLICABLE LAW This Contract is being executed and delivered and is intended to be performed in the State of Texas, and the laws of such State shall govern the validity, construction, enforcement and interpretation of this Contract, unless otherwise specified herein. 16. MODIFICATION This Contract embodies the entire agreement between the Customer and WCA and supersedes all prior agreements and understandings and may be amended or supplemented only by an instrument in writing executed by the Customer or WCA against whom enforcement is sought. Waste Corporation of Texas, L.P. Cypress Forest Public Utility District By: By: Title: Title: Printed Name: Printed Name: Date: Date: Cypress Forest PUD - 2015 6 of 6