ADDENDUM

This Addendum is made and entered into this _____ day of ____________, 2010 by and between N.R. Hamm Quarry, Inc. of Perry, Kansas, a Kansas Corporation (Contractor or Hamm); the Board of County Commissioners of the County of Douglas, State of Kansas (County); and the City of Lawrence, Kansas (City) to amend the Agreement entered into by the above parties December 16, 1992, a copy of which is attached hereto (Agreement).

WHEREAS, the Agreement provides that the tipping fee specified in the Agreement may be adjusted periodically for changes in the cost of operation of Hamm’s sanitary landfill in an amount agreed upon by the parties; and

WHEREAS the Agreement provides that such rate adjustments will consider tonnage increases or decreases, changes in operating costs, fuel costs, site improvement costs and other factors agreed upon by the parties; and

WHEREAS, the tipping fee specified in Paragraph 12 of the Agreement has not been adjusted since the Agreement was entered December 16, 1992; and

WHEREAS, Hamm has provided the County and City with information regarding the changes in cost of operation of the sanitary landfill over the past eighteen years; and

WHEREAS, Hamm has provided the City and County notice of a requested rate increase in June, 2010 and commenced negotiations with the City and County regarding a rate adjustment pursuant to Paragraph 11 of the Agreement; and

WHEREAS, the base tipping fee rate from December 12, 1992 until the present has been $18.00 per ton of waste;

NOW THEREFORE, as provided in the Agreement, the parties have negotiated and agree to adjust the base tipping fee rate in Paragraph 12 of the Agreement based on changes in the cost of operation.

The Parties hereby amend Paragraph 12 of the Agreement to provide a base tipping fee of $23.35 per ton exclusive of federal, state and local taxes and fees, commencing January 1, 2011. 

The Parties further agree to apply a 3.5% increase to the base tipping fee each year.  This increase will be effective January 1 of each year, with the first 3.5% increment applied and effective January 1, 2012.  The new base tipping fee each year will have the 3.5% increment applied to establish the base tipping fee rate for the next year.  After 2015 the parties may review the 3.5% annual adjustment to determine whether adjustment should be made to increase or decrease the 3.5% annual adjustment.

The Parties further agree that they intend to continue discussions regarding operation of recycling/resource recovery programs and facilities as set out in Paragraph 6C of the Agreement and that rates or charges for such programs and services may be set and adjusted according to the procedures set out in Paragraph 11.

The remaining terms of the Agreement shall remain in full force and effect.

THE BOARD OF COUNTY COMMISSIONERS

                                                            OF THE COUNTY OF DOUGLAS, STATE OF

                                                            KANSAS

Attest:

__________________________        __________________________________________

County Clerk                                      Chairman

Approved as to form and

legality:

__________________________

County Counselor

THE CITY OF LAWRENCE

Attest:

__________________________        __________________________________________

City Clerk                                           Mayor

Approved as to form and

legality:

__________________________

Director of Legal Department

City of Lawrence, KS

N.R. HAMM QUARRY, INC.

                                                            ___________________________________________

                                                            President