CONFIDENTIAL DRAFT 10/3/08

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4.3 Presegregation and Recvcling. The Parties agree that (i) no provision of this Agreement is intended to discourage or prohibit either voluntary or mandatory waste segregation programs or the sale of such segregated materials to private persons and (ii) acknowledge that the Municipality may be subject to one or more Recycling Acts from time to time. The obligation of the Municipality to deliver or cause to be delivered Acceptable Solid Waste to the Delivery Point does not include any Recyclable Materials; provided, however, that neither this Section 4.3 nor any Recycling Act, now or hereafter in effect, shall relieve the Municipality from its obligations to pay the Disposal Fees, nor relieve the Municipality from its obligation to meet its Annual Minimum Commitment and its payment obligations in connection therewith. Notwithstanding the foregoing, Covanta shall: (i) review any request by the Municipality to reduce its Annual Minimum Commitment for a Contract Year if Covanta receives from the Municipality a notice, at least ninety (90) days prior to the commencement of such Contract Year, setting forth the amount of the proposed reduction and reasonably detailed evidence of the impact of Recycling Acts and/or waste segregation programs on the amount of Acceptable Solid Waste generated within the boundaries of the Municipality; and (ii) review with the Municipality the potential development and operation on the Site of a collection center for residential Recyclable Materials and/or the participation of Covanta in waste segregation programs.

ARTICLE 5. Billing and Payments. 5.1 Monthlv Payments. After the end of each calendar month, Covanta will render a bill to the Municipality for the total Disposal Fees due for such period, including Tip and the costs for the disposal ofNon-Processible Solid Waste. The amount billed with respect to any calendar month for the disposal of Acceptable Solid Waste shall be equal to the Tip multiplied by the number of Tons of Acceptable Solid Waste delivered by the Municipality and its Authorized Haulers to the Delivery Point and accepted by Covanta during such month, provided that the Tip Fees for Acceptable Solid Waste for the last month of any Contract Year together with the aggregate Tip Fees for Acceptable Solid Waste for the previous eleven (11) months of any Contract Year shall not be less than the Tip Fee multiplied by the Annual Minimum Commitment, even if fewer Tons of Acceptable Solid Waste than the Annual Minimum Commitment were delivered to the Delivery Point and accepted by Covanta during such Contract Year. To the extent that Covanta does not accept the Municipality's Acceptable Solid Waste because of Covanta's rights to reject such waste hereunder, the Disposal Fees shall be due in accordance with this Agreement. To the extent that Covanta does not accept the Municipality's Acceptable Solid Waste in default of Covanta's obligations hereunder, then Section 8.1 shall apply. To the extent that Covanta is not accepting the Municipality's Acceptable Solid Waste by reason of the occurrence of an Event of Force Majeure, Section 7.3 shall apply. 5.2 Overdue Charges. If payment in full is not made by the Municipality on or before the close of the thirtieth (30th) day following the rendering of the bill to the Municipality, any amount remaining unpaid shall bear interest at the rate of one and one half percent (1-112%) per month or the highest rate that may then be lawfully charged and paid, whichever is less, from such thirtieth (30th) day to the actual date of payment. The Municipality agrees to pay on


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