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FEB 8 1994 8�t7K 56 PACE 3. The Utility shall supply the County with copies of its Department of Environmental Regulation monthly operating reports and trouble reports, if any. 4. The right is hereby reserved to the County to adopt, in addition to the provisions herein contained and existing applicable resolutions or laws, such additional regulations and increase fees and charges as it shall find necessary in the exercise of the police power and lawful authority vested in said County, provided that such regulations shall be reasonable and not conflict with the rights herein granted and not in conflict with the laws of the State of Florida. The County shall have the right, but not the duty, to inspect all construction or installation work performed. 5. Franchisee understands that the County is now considering the extension of the County water system to this franchise area. Should the County extend the county system, this shall be considered a temporary water franchise and upon the demand of the County, franchisee shall discontinue its water operation and immediately connect to the County system and shall pay to the County all the sums due under the County's standard schedule of rates and fees. TERRITORY/FRANCHISE AREA The territory in which this franchise shall be applicable is all that part of -Indian River County, Florida, located within the following described boundary lines, to wit: See Exhibit "A" attached hereto and incorporated herein. SECTION V HOLD HARMLESS CLAUSE It is expressly understood and agreed by and between the Utility and the County that the Utility shall save the County and members of the Board harmless from any loss sustained by the County on account of any suit, judgment, execution, claim or demand whatsoever resulting from negligence, or intentional wanton, willful and reckless acts on the part of the Utility in the construction, operation or maintenance of the water and/or wastewater system under the terms of this franchise. The parties agree that in the construction of this section, the claim of any person resulting from negligence on the part of the Utility may be prosecuted directly by such person against the Utility. The County shall notify the Utility promptly after presentation of any claim or demand. SECTION VI CERTIFICATION OF COMPLIANCE 1. The Utility shall maintain and operate its water/wastewater plant and system, and, render efficient service in accordance with the rules 3