Execution Version WASTE DISPOSAL AND SERVICE AGREEMENT AMONG CITY OF ALEXANDRIA, VIRGINIA, COUNTY OF ARLINGTON, VIRGINIA AND COVANTA ALEXANDRIA/ARLINGTON, INC. DATED January 24, 2012 TABLE OF CONTENTS ARTICLE 1. Definitions............................................................................................................. 1 Section 1.1 Definitions .....................................................................................................................1 Section 1.2 Interpretation..............................................................................................................11 ARTICLE 2. General Provisions............................................................................................. 12 Section 2.1 Delivery of Acceptable Waste to the Facility. ..........................................................12 Section 2.2 Minimum Monthly and Annual Tonnage Amounts; Adjustments........................12 Section 2.3 Term. ...........................................................................................................................13 Section 2.4 Residue Disposal; Lorton Landfill. ...........................................................................14 ARTICLE 3 Delivery and Processing of Acceptable Waste; Rejection Rights; Residue Disposal; Weighing and Related Matters; Emergency and Other Deliveries. .. 15 Section 3.1 Acceptance of Solid Waste by the Company at the Facility; Receiving Time.......15 Section 3.2 Rejection of Deliveries; Diverted Waste...................................................................15 Section 3.3 Delivery Procedures. ..................................................................................................16 Section 3.4 Vehicle Identification. ................................................................................................16 Section 3.5 Weighing; Company Delivery of Data and Information.........................................17 Section 3.6 Resident Receiving Area. ...........................................................................................17 ARTICLE 4 Acceptance Fee and Other Fees and Rebates.................................................... 18 Section 4.1 General. .......................................................................................................................18 Section 4.2 Acceptance Fee Formula............................................................................................18 Section 4.3 Monthly Disposal Fee.................................................................................................18 Section 4.4 Lorton Landfill Residue Disposal Credit/Rebate. ...................................................19 Section 4.5 Change in Law Charge/Credit. .................................................................................19 Section 4.6 Shortfall Fee; Rebate..................................................................................................22 Section 4.7 Excess Tonnage Fee....................................................................................................24 Section 4.8 Discriminatory Tax. ...................................................................................................24 Section 4.9 Most Favored Nation..................................................................................................24 Section 4.10 Unamortized Capital Cost resulting from Change(s) in Law During the Term...25 Section 4.11 Jurisdiction Obligations.............................................................................................26 ARTICLE 5 Unacceptable Waste; Hazardous Waste.............................................................. 26 Section 5.1 Unacceptable Waste. ..................................................................................................26 ARTICLE 6 Billing and Payments........................................................................................... 28 i Section 6.1 Monthly Invoice..........................................................................................................28 Section 6.2 Payment to the Company...........................................................................................28 Section 6.3 Overdue Charges........................................................................................................28 Section 6.4 Disputes. ......................................................................................................................28 ARTICLE 7 Insurance and Indemnification........................................................................... 29 Section 7.1 Jurisdictions Insurance. .............................................................................................29 Section 7.2 Jurisdiction Indemnification. ....................................................................................29 Section 7.3 Company Insurance. ..................................................................................................30 Section 7.4 Company Indemnification .........................................................................................31 ARTICLE 8 Governmental Regulation.................................................................................... 31 Section 8.1 Compliance with Applicable Law. ............................................................................31 Section 8.2 Permits.........................................................................................................................31 ARTICLE 9 Suspension Due To Force Majeure; Jurisdiction Fault; Termination Due To Force Majeure...................................................................................................... 31 Section 9.1 Suspension of Obligations; Notice of an Event of Force Majeure..........................31 Section 9.2 Efforts to Remove Condition.....................................................................................32 Section 9.3 Jurisdiction Fault........................................................................................................33 ARTICLE 10 Alternate Facility; Events of Default; Termination. ........................................ 33 Section 10.1 Alternate Facility........................................................................................................33 Section 10.2 Partial Reductions Due to a Forced Outage or Event of Force Majeure. .............34 Section 10.3 Events of Default of the Company. ...........................................................................35 Section 10.4 Events of Default of Jurisdictions. ............................................................................36 Section 10.5 Remedies on Default...................................................................................................36 Section 10.6 Change in Law. ...........................................................................................................37 ARTICLE 11 Representation and Warranties......................................................................... 38 Section 11.1 Representations and Warranties of the Jurisdictions. ............................................38 Section 11.2 Representations and Warranties of the Company. .................................................38 Section 11.3 Liability for Breach. ...................................................................................................39 ARTICLE 12 Conditions Precedent to Execution Date and Effective Date........................... 39 Section 12.1 Execution Date; Effective Date..................................................................................39 ARTICLE 13 Company Covenants. ......................................................................................... 39 Section 13.1 Permit Modifications..................................................................................................39 Section 13.2 Supplemental Waste...................................................................................................39 Section 13.3 Facility Operations. ....................................................................................................39 ii Section 13.4. Community Outreach. ...............................................................................................40 Section 13.5 Meetings with the Jurisdictions; Access to the Facility; Inspection and Reporting. ......................................................................................................................................40 Section 13.6 Jurisdiction-Requested Improvements.....................................................................41 Section 13.7 Transfer of Facility Documentation Upon Termination or Expiration of the Site Lease. ...........................................................................................................................41 Section 13.8 Tours and Operations Transfer. ...............................................................................41 ARTICLE 14 Miscellaneous..................................................................................................... 42 Section 14.1 Governing Law. ..........................................................................................................42 Section 14.2 Consent of Jurisdiction. .............................................................................................42 Section 14.3 Entire Agreement. ......................................................................................................42 Section