Common use of First Extension Clause in Contracts

First Extension. On or about July 1, 2019, provided the CITY determines 41 that the CONTRACTOR has not failed to meet and maintain the minimum diversion 42 requirements set forth in Article 5 for two (2) consecutive years and has met the service 1 requirements in this Agreement, the CITY shall be obligated to offer the CONTRACTOR in 2 writing a three (3) year extension of this Agreement. CONTRACTOR shall provide written notice 3 to the CITY as to whether CONTRACTOR accepts or rejects the CITY’s offer within twenty (20) 4 Work Days of the date of the offer. If CONTRACTOR fails to provide such notice to the CITY 5 within twenty (20) Work Days, the CITY’s offer shall be deemed withdrawn and the CITY shall 6 have no obligation to extend the term of this Agreement beyond June 30, 2021. If the term of 7 this Agreement is extended, the compensation provisions of Article 4 shall not be subject to 8 negotiation. However, the compensation payable to CONTRACTOR shall be adjusted annually 9 throughout the extended term as provided in Article 4.