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FRANCHISE HAULER ACKNOWLEDGMENT <br />THIS FRANCHISE HAULER ACKNOWLEDGMENT, dated as of May 4, 2009 (the <br />"Acknowledgment"), by and between the City of Santa Ana (the "City") and USA Waste of California Inc. (the <br />"Franchise Hauler"). <br />WTTNESSETH <br />[WHEREAS, the City and the Franchise Hauler have heretofore entered into an agreement entitled Third <br />Amended and Restated Agreement for Collection and Handling of Solid Wastes Generated, Produced and/or <br />Accumulated in the City of Santa Ana, dated as of Apri13, 2005 (the "Franchise"); and <br />[WHEREAS, the City has issued to the Franchise Hauler a permit, license, approval or other authorization <br />the "Authorization") which allows the Franchise Hauler to provide solid waste collection services within the City; <br />and] <br />[WHEREAS, the Franchise authorizes the collection and disposal of certain municipal solid waste as <br />described therein ("Franchise Waste") generated within the City; and] <br />WHEREAS, Orange County (the "County") owns, manages and operates a sanitary landfill disposal system <br />for municipal solid waste generated within the County; and <br />WHEREAS, the City and the County have heretofore entered into a Waste Disposal Agreement, dated as of <br />May 4, 2009 (the "Disposal Agreement") determining that the execution of such Disposal Agreement will serve the <br />public health, safety and welfare of the residents of the City and County, by maintaining public ownership and <br />stewardship over the Orange County Landfill Disposal System (the "Disposal System"); and <br />WHEREAS, under the Disposal Agreement, the County has agreed to provide long-term disposal of all <br />municipal solid waste generated within the City and the City has agreed to exercise all legal, and contractual power <br />which it possesses from time to time to deliver or cause the delivery of such waste to the Disposal System; and <br />WHEREAS, the provisions of the Waste Disposal Agreement which guarantee capacity for the long term <br />disposal of waste at specified rates generated in the City provide significant benefits to the Franchise Hauler; <br />WHEREAS, notwithstanding any Franchise provisions to the contrary, the Franchise Hauler explicitly <br />acknowledges the aforementioned benefits to the City, the County and the Franchise Hauler in providing for the <br />disposal of all Franchise Waste to the Disposal System; and <br />WHEREAS, the City and the Franchise Hauler desire to enter into this Acknowledgment to assure that the <br />City and the Franchise Hauler will be entitled to the benefits of the Waste Disposal Agreement and to assure <br />conformity with the waste delivery obligations which have been agreed to by the City under the Disposal Agreement <br />through the delivery of waste by the Franchise Hauler to the Disposal System; and <br />WHEREAS, the Franchise Hauler's agreement to deliver Franchise Waste to the Disposal System under <br />this Acknowledgment is given in consideration of the Franchise Hauler's right to receive the Contract Rate for such <br />disposal as provided in the Disposal Agreement. <br />NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the <br />receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, <br />agree as follows: <br />1. Capitalized terms used and not otherwise defined herein are used as defined in the Disposal <br />Agreement. <br />Execution Copy <br />