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then fair market value of the real estate. Upon acquisition of the water and/or wastewater plant and appurtenant real estate, the County would then own the entire water and/or wastewater system and would terminate this franchise and provide water and/or wastewater utility ® service to the franchise territory. All accumulated escrow fees would vest in the County. (3) In the event that the above condition (2) is not exercised by the County within seven (7) years from the date of this franchise agreement, any sums of money remaining in the escrow account shall becare the absolute property of the Utility and the County shall allow 0 the Utility to continue operations in accordance with this franchise agreement. (4) The County shall have the following option to purchase the utility system after the end of the said seven (7) year period, the County shall purchase according to the same formula in this sub -paragraph (2) above except that the County shall be entitled to a credit against the net purchase price payable by the County to the Utility for the Utility in the amount of the total escrow charges that would have been available to the Count_-, pursuant to the provisions of sub -paragraph (2) stated directly above, together with a credit for any fees which would have accrued pursuant to said section after the seventh year, should the seven (7) year period referenced therein not have lapsed. (5) In the event of an acquisition by the County, or the utilization of the County's own plants, the County shall receive the water distribution and/or wastewater collection system free of cost and in good repair, wear and tear excepted. The Utility agrees to grant to the County any easements necessary to connect the water and/or wastewater system to the County's water/wastewater systems without charge. The Utility shall pay all required fees upon acquisition or upon connection to County's own plants. Upon connection to County's system, Utility may utilize any escrowed monies for the purpose of payment to the County for impact or connection fees. SECTION XVII IMMAL & PEPIACEMERr ACCOUNT Two and one half percent (2h$) of the operating cost of the Utility shall be placed in an interest bearing renewal and replacement account for purposes of renewal and/or replacement of the capital assets of the water and/or wastewater system of the Utility. Additionally, the Utility shall initially fund said account with two thousand dollars ($2,000) which will also be reserved for capital maintenance items. Interest shall accumulate in said account until the account reaches ten thousand dollars ($10,000); thereafter interest shall be paid to the Utility annually. Said funds shall be used as a sinking fund and applied only for renewal and/or replacement of the water and/or 11