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• •® 0 and.expense, agrees to provide necessary assistance to Service Company in obtaining the approvals provided for herein. Upon execution of this Agreement, Service Company may require the payment of a reasonable fee to defray Service Company's legal, engineering, accounting and administrative and contingent expense. 37. Time is of the essence with regard to this agreement. Failure to Insist on strict performance in one instance shall not be deemed a waiver of the right to so insist in other instances. t: 38. There shall be no liability whatsoever on Service Company for failure to deliver service to Developer according to Developer's needs or schedules. This Agreement constitutes a promise of good faith and not a timetable for delivery of utility services. 39. In the event that Developer requires sewer service prior to the time that Service Company may be in a position to deliver same, Developer may be authorized, if in writing and at the sole election of Service Company, to provide service to his own property, through the auspices of Service Company, using a plant, which Developer will remove from service when instructed to do so by Service Company. 40. This Agreement is binding on the successors and assigns of the parties hereto, including any municipal or governmental purchaser of Service Company. This Agreement shall survive the sale of Service Company to any party. 41. The parties hereto acknowledge that legislation was enacted by the United States Congress which could result in all contributions made to the Service Company after January 1, 1987, being fully taxable as ordinary income. The parties also recognize that both cash and property contributions to Service Company are taxable under this new law. Such a change in existing law severely restricts the Service Company's available funds for water utility improvements. Developer there- fore agrees that under this new legislation, the contributions made by the Developer become taxable income to Service Company, and Developer will pay such additional charges as are necessary to reimburse the Service Company for the income tax effect of contributions. Such additional charges will be calculated so as to place the utility in the same net after-tax position as a result of receiving contributions, as it would be under existing tax.law. The parties hereto further acknowledge that in the event contributions do not become taxable income, Service Company will refund to Developer all monies paid for the income tax on CIAC. WITNESSES: SE RVI . OMPA SEA AK IT S, INC. Preston I. Perrone, as its President DEVELOPER SEA OAKS DEVELOPMENT CO. By: �GI�CC� 7G(�'o' R.'Stephen Pate, Managing Director